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tv   Squawk on the Street  CNBC  June 12, 2018 9:00am-10:59am EDT

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apparently consultation with the allies would we not do that? i think he has to keep the allies close through this process, that's what i'm going to watch for is south korea close. apan close do we move forward through a process of economic incentives and denuclearzation. >> thank you so much for your time we appreciate it thank you for joining us please meet us back here tomorrow morning right now it's time for "squawk on the street. >> good tuesday morning. welcome to squawk on the street. carl quintanilla with jim cramer david faber is off futures positive now as we turn to cpi in line a two-day fed meeting and at&t ruling europe is slightly red ten year 2.97 as cp circumstance a fresh six-year high. trump and kim jong-un shake
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hands in singapore futures fly amid a lack of detail and at&t and time warner what it means for media and m & a. the historic meeting between president trump and kim jong-un is in the books. agreeing to pursue denuclearzation. the president confirming that military exercises put on hold for now. the president expressed some optimism about leader kim. >> he wants to do things you'd be surprised very smart very good negotiator wants to dot right thing he brought up the fact that in the past thelogue -- they were never like we were there's anything lwhat has taken place now. they went down the line. the following day the nuclear program continued. but this is a much different
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time this is a much different president, in all fairness it's very important to me. >> great show on squawk this morning. walking us throughhis. jim, m el-erian said it's a good thing. >> to do it to say it's constructive is to ignore the nuclr shadow the whole world. you know, we care so much about iran and we're correct to care about iran iran has threatened countries in the middle east. this is a man that is trying to build an icbm that would hit los angeles. this is the nobel prize material that i suggested back in march i mean, this is a tremendous change and, i mean, this is also so
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different from what is previously happened. as the president said, you pay money and then he goes away. i've been saying because november of 1950 when china sent 300,000 soldiers over, we've been at war. and to have this not be -- it sure looked like, to me, something was different from check point charlie. this would be something. i mean, now talking about condos t's not like the four seasons is going to suddenly appear at the capital there. there is a moment where you have to say this is different it's different. >> it is dnt. >> but it's not going to impact, you know, it's not as important as larry being sick. >> our thoughts are with larry kudlow he had a mild heart attack he's at walter reid but in condition. >> you know larry is a great guy.
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>> i'm not trying to min nice wn korea. i feel like -- and i'm -- larry is the chief economic advisor. we have a lot of special relations. but i think to put this in perspective of the stock market, cause what we've been a great friend of south korea for a long time we've let south korea take advantage of us for a long time in order to be the bull work of democracy on the peninsula and maybe that changes that certainly is not why president trump did this i think president trump did this because he wanted to prove to people that heould make a substantiative difference in the way we negotiate he made a substantiative difference in the way we negotiate in canada. >> yeah. >> he's substantiatively different. but, yeah. began data didn't end up mattering that much in the stock market it mattered to the wood market and this may not matter that much, but it's certainly -i mean, it's almost pro rated to the stock market
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but it is shocking >> it's different. >> shocking rocket i mean, rocket man now putting that bac rocket man and, you know, back to the pop song. >> yeah. elton john's song, once again. a t to process here not the least of which is the relationship with south korea. >> they've been throwing cars at us in order to make it to the bullwork they're able to do it i want to know what is -he did negotiate a bilateral south korea but i think there's a lot of pressure on south korea to start doing things a little bit more on the road. >> and now they're, i guess they're learning more about the war ga at least for now. these >> that was interesting. >> yeah. our chief international correspondent has been working e and can tell us what happens next, including pompeo moving to seoul. hi, michelle >> reporter: yeah. that's the next stage of diplomacy begins here, carl.
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thank you so much. you hit a lot of highlights. but mike pompeo goeso off to met with allies. his next task is begin the negotiations furtherions with t koreans to come up with the verification process of the denuclearzation process for north korea, which is historically been the hardest. will they give us a complete list of their capabilities and will they allow inspectors in order to verify the dismantling. some of the other key headlines that came out as a result of the president's wide ranging news conference, he also said he thought human rights would improve in north korea as a result of the meeting. he was asked specifically about the people of more than 100,000 people believed toe in labor camps or beau lags, according to the u.n. he said he thinks those people's lives will get better. he was open to visiting the capital of north korea, ongyang kim jong-un to the white house
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at the appropriate time. he was asked repeatedly about you played onend byte already. hallie jackson at nbc news asked a provocative question reminded the president that kim jong-un resides over the most oppressive regime in the entire world he had his brothsassinated people have starved under him and his grandfather. the president called kim jong-un talented she asked why. >> anybody that takes over a situation like he did at 26 years of age and is able to run it and run it tough. i don't say he was nice. i don't say anything about it. very few people at that age, you can one out of 10,000 do it. >> will the north koreans
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comply they've agreed to things in the padefaulted on their promises so we'll have to see what the next steps bring back to you. >> quickly, michelle, those who are sort of going over the letter today saying no timeline, scope, or definition of denuclearzation. some say there's a bid from the heritage foundation that even the language there is not as strong as prior commitments. is that fair >> yeah, i think so. i mean, you're going to hear a lot of those commitments there's a lot of skepticism about the north koreans period because of the historically when they sat down with jimmy carter they went back on the deal there's a lot of criticism giving up the annual war games with south korea, which is seen as coercive deterrence, which is the phrase they use in the diplomacy world. a t of people think it's a big giveaway, considering what was agreed to in that piece of paper
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today. >> michelle cabrera, we'll come back to you later on this morning. assuming you can stay awake. thank you very much. >> i think china is tired of north korea and that's why this is happening it's different it's not because of trump. it's because of china. i don't think china wanted japan to wake up and start doing something offensively. i don't think china wants, obviously, china doesn't want a war. but i think china is tired of the man. and that's why these things are happening. because, you know, this is a puppet country it's not a real country. but it does have real nukes. and the chinese they exist at the best of the chinese. i wish people would recognize that in the same that october of 1950, the country almost ended but in november of 1950, china elected to save the country and china kept the country alive for a long time. if you don't go back to what
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macarthur did and recognize trumann't want him to go and the chinese sent over 300,000 soldiers to keep north korea i think korea overstepped the bounds and china decided to pull the plug. >> huh china has been asking the u.s., look, stop your exercises in exchange for north korea stopping their testing we've said no until now. >> right because we dealt with the north koreans. north koreans you can't deal with any sort of certainty but china, look we're trying to do a lot with china. not since nixon went to china. ina in order to say, listen, by we don't want this anymore now i think by the end of the month we'll make it so the chinese can no longer buy an american company i understand that's to be the plan i think there's more rancor coming i think the idea that the chinese are business as usual with president trump is not happening. and they cut think guy out
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the chinese control this man this man is a puppet the chooeninese, i think, have n tired of him. >> huh then is it a win for china or can you say yet? >> i don't know. i think china doesn't want this to be germany. i don't think china wants it to fall the way russia didn't fall. if you inject enough actual capital and just like if you go back over to the downfall of east germany, it was the west germany got involved in a level of capital i think south korea wants north korea to be east germany i think that russia was much less powerful than china china needs a puppet state they want some sort of buffer. they don't want the cost. >> yeah. >> they live with that they live with it because it happened and i think we all forget what happened in those crucial days when they went to war with the united states. they don't want another war with the united states. but they don't want this man to
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impose a war with the united states. >> an important wrinkle to think about this time. >> got to be november 27th, 1950, if you were there. >> very rough. we'll keep an eye on the markets, of course, in the wake of the historic summit and get reaction from nicholas burns in the meantime, take a look at the futures as we'll turn to central banks and anti-trust wh "sqwkn e re" cos backstet well, it's earnings season once again. >>yeah. lot of tech companie are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool
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president trump concluding the talks with kim jong-un by signing a document that calls for the complete denuclearzation of the korean peninsula in a rare and exclusive interview paul tudor jones gave us the perspective in the last hour. >> we've been trading at the past 12 months leading up to this point so this is semianti-climatic in the sense we went through the period a year ago, remember a year ago we were very close to military con frofrontation i don't think people realize how close we were to some type of
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armed conflict here we are a year later and so much is alreadbeen played out. and i think this is anti-climatic. >> all right joining us is ambassador kni nicholas burns thank you for your time today. going into the meeting last night, you said the president is right to meet him. how do you feel now? >> i think it was a powerful symbiotic moment, carl, in singapore. as paul tudor jones was saying far preferable to have this than planning for the war in 2017 there was a high probability fo conflict then. it's a paper thin agreement. it's general it doesn't commit kim to much. it does now get us the next stage. mike pompeo needs to build a big delegation tough talks ahead. you have to bring the south
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koreans and japanese in. you have to keep the chinese on our side, if that's possible leverage against the no one ever north koreans through economic sanctions. the sanctions will not be lifte any time soon. you have to measure it in years not days >> the south koreans would like to have been there, i think, and their rhetoric seems to suggest that the war exercise element was a bit of a surprise to them. they're looking for more clarity. but you think they'll be enthusiastic as we now embark on the road toward detail >> president moon jay inof south korea is enthusiastic about a diplomatic process it's worrisome that the south koreans were surprised that the united states agreed to end, for the time being, our military exercises with the south it was a comprise given to kim jong-un. we need our allies by our side we'll stronger if south korea, if shinzo abe are inside the room with us and pushing against the north koreans with
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us you think about a big accomplishments of the past several decades, german unification, ending the balkan wars we had allies on our side. and president p over the lastour orive days, you , very dismissive of the allies in europe and quebec and not so inclusive of the south koreans here that's a problem that mike pompeo will have to correct. >> mr. ambassador, jim cramer. thank you so much for being on the show this morning. sir, is it possible if you are kim, are you concerned that this is a possibility of south korea basically economically taking over north korea in the form you're absolutely right, as you said at the beginning, we feared nuclear confrontation. isn't it mordangerous for north korea they have to fear samsung, which is ready. lg which is ready. those are the real 0 poenopponef north korea. >> i think you're right, jim, the north reans very much fear
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the fact they don't have capital investment they don't have normal trade they are, you know, they don't have an economy compared to south korea. and in a strange sort of way, they don't want to be dominated by the chinese either. so north korea is trying to break out of its political isolation. i think it's more important they and trade.e capital investment they're not going toethat from the united states, south korea, japan, unless they now agree to some major comprises and reductions in dismantlement of their nuclear facilities. i don't think they want to do that either. i can't see kim jong-un agreeing to dismantle the nuclear program. this will be tough to achieve. this agreement. >> meanwhile the president's interviews following the summit are the point of some discussion today. saying he loves his country. his country loves him. his people, you can see the fervor we know he's a brutal dictator is that kind of language just the currency cost of having a
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summit like this >> it doesn't need to be i think president trump would do better with the american people and internationally if he didn't try to overselthis when the president spoke this morning in the press conference, he was talking about peace peace is imminent. it's not imminent. and, you know, we got to be careful with north korea of course you have to show respect when you're meeting with a leader that's a difficult thing to do but you have to do it. but this guy is a murder and he runs a brutal regime. we don't need to be too nice to him. and we don't need to misuood what is happening inside his country those people aren't supportive they're living in a prison state. so i think the president needs to step back a little bit and be the stronger leader and not get down on the same level with kim jong-un and praise him too much. >> mr. ambassador, appreciate your insight, as always. hope to see you agaion ambassador nicholas burns. >> crystal clear. >> yep. >> i like him. no waffling.
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when we come back, cramer's mad dash and count down to the opening bell busy tuesday morning taking shape. we'll talk some rates and anti-trust, as well. there's more news headed our way. "squawk on the street" is right back
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♪ opening bell in a few minutes. cramer's "mad dash." watching rh. >> first tiffany and ralph return a lauren. they blew the numbers away and never came back away there's a convertible bond
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we're looking at a considerable short position 35% of the flow and remember about 35% is owned by gary freedman, the ceo himself. a remarkable conference call saying it came together. dramatic numbers you look for dollar, too, they came in above 33 he's taken the year 634. you can argue he's going to do seven. what i think happens is this, i don't think it comes in. if ralph lauren and tiffany are all the rule, you'll get this and then this and this so you have to be -- if you're short. if you want to be long, i get it it came together for gary. don't forget, he bought -- they bought the actual numbers of shares down from 40 million to 25 million taking the millions he raised in the convertible fund and bought the stock back he told you to get long.
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he came on mad money and said i'm buying you buy. other than steve winn, i've never anyone say this is the level. it was the level. >> yeah. if the share count is such a big story, what do we know what do we think about the furniture market >> it is broad based it's expensive remember he has a membership or members the membership does make it so kind of a cool thing he has big new york presence major presence in texas. floods cleaned up. oil comes back boom big presence in florida. hurt by the hurricanes boom it all came together the numbers, i think, are understated. restoration hardware is so back. wow. >> fascinating. >> isn't it. >> the opening bell in a few minutes. don't gonyer awhe.
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held the summit and sign the letter in singapore. the president is on the way home we turn to a ruling expected this evening from judge leon you've been stubborn in your prediction. >> i was with mr. delrahim last week he's the assistant attorney general for anti-trust, and i continue to believe that enforcement is his style whatever you think may be over will not be over this evening. i felt he made, i mean, it's interesting how dismissive of the case the case is saying your prices will go up we're done with that now at&t's defense they said there was no sign it's going to go up more than pennies. if a government, if a judge wants to draw a line in the sand and say we're done with mergers that raise your bills, then he's going to win. tomorrow faber, i think, might be joining us.
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>> oh, my gosh. >> on the implications let's get to the opening bell here the s&p at the bottom of your [ opening bell ] >> it's interesting this retail market because it's not just restoration. dave and busters which missed for several quarters, congratulations steve king moving on to chairman. but it is just incredible. there was a really good quarter when you read through it they've got some virtual reality games that are coming in that's going to be exciting for people so it was not just restoration hardware last night. and dave and busters, that kind of move is really incredible. >> that's on a negative call. >> it is thank you for mentioning that. what it says is we'll grasp at
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straws if it's retail. casey's general admittedly at certain point we have to draw the line it's amazing how forgiving, how exciting this market is for retail and then let's see the market got excited on the consumer stocks that have not been looked -- they've been given up for dead that's part of the rotation that is extraordinary. >> yeah. i'm guessing you think anything like that or reliance on faang is dispersed you think is a market positive. >> yes, i love it. norfolk southern was a big gainer yesterday it was a good article in the paper today about how we're switching pretty radically to renewables norfolk has some good numbers and that's associated with coal. maybe it will be associated with intermodal which is a lot of business being done. natural gas prices going too. you have to watch that those are about to break out it's actually bottle necks in the process.
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natural gas takes out three, you'll see another leg up of natural gas stocks which cut back the oil stocks. a lot of things working. of course, tesla is working. >> yes tesla is there is no headline that can keep that stock below 300. >> model three deliveries, according to keyback tracking 50% ahead. tesla just went up 50 points $50! >> yep and the 290 s not long ago it was jhonas who said they don't see a 5,000-car-a week until the first half of '19. >> that's the opposite of what we're getting now. and the shorts have been very quiet. they've been qui. >> speaking of shorts getting quiet, andrew sorkin brought us the interview. it might be getting in a summer lull, the back half might be interesting. take a listen. >> if you look at what is shot
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off the stock market historically, it's been real rates on the front end of something of the neighborhood of 250 basis points we're negative now so when you've got a lot of tech companies growing at 20% per year, who cares about a hundred basis points who cares. right. so i think you'll see rates go up and stocks go up at the end of the year. i can see things getting crazy, particularly at year end after the midterm elections. i can see them getting crazy on the upside. yeah. sa q 3 and q 4 could be phenomenal, his words, trading market and the market has the ability to go higher. >> typically when you hear these big managers come on say the end is short but paul -- i know paul tudor jones forever. he calls it straight
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that was just cover your shorts. that was amazing and interview. >> he did say he thought rates because we're running negative real rates buybacks were like the termator you can't kill them. and you got to make it more difficult for companies to issue debt to buy back stock. >> look at restoration hardware. the issue of convertible bond. it is nothing. and they buy back the stock and look what happens. it's financial engineering if the business weren't strong n't have worked. business is very strong. let's not forget that. that's still the driver. this is a strong across the board. i don't find many firms where they say business isn't good interesting what david says. he can be a little skeptical he's coming up. >> sure. >> but business is -- and people are looking for reasons. i got a piece last night on "mad money" saying everything is blowing through price targets.
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so we continue to see the analysts way behind the market when it comes to how stocks are doing. that's important. >> we did have nb today for may. highest once again since 1983. this is small business sentiment. >> these are extraordinary numbers. sometimes i wonder whether people are in -- to how fabulous the numbers are. having been through hard times, we should be grateful. these are good times. >> twitter is in focus again near 43,, as it's headed for a three-year high. >> yeah. this morning jpmorgan has a good piece out. advertising value increasing they're talking about a 20% growth in ads for a long time. they're saying that could be small. twitter has become a very acceptable place to advertise. as they added more and more video. congratulations to jack dorsey
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terrific cfo a lot of good happening there. and i think that a lot of people are saying we have someone else to advertise with. other than facebook or instagram. that does matter you know, it's really alphabet, twitter, facebook, now i have to say facebook/instay zbram. because instagram he grower. i made a joke this weekend on twitter saying that's it i'm closing my facebook account and moving to instagram. it was a complete joke everyone was like cramer don't you know the whole point is that those who do some sort of stand against facebook kind of back door creep in instagram. i'm out of facebook. >> it's absolutely tru >> instagram. >> seeing good action out of banks today. jpm, caterpillar. >> up a little caterpillar that's been china. i think it should be infrastructure i feel like there is you've got to watch adobe it should be faang
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adobe has been amazing. >> it's funny to think it's not. given the run. >> it's up there in terms of people who have reinvented a company and done it in a way that is just no one's talking about. it has become the commerce cloud. and when you look at the stuff they do, they've got a lot of artificial intelligence built in it's an exciting company i mean, you can, like, show, i mean, i was once in a room with adobe where on a wall. i was like this. and on a wall they put my face it just read my face read my face >> if you can only own one adobe, nvidia, or sales force. >> oh, my god! buying sales force it was so good there was somebody last week who criticized jenson wang, the ceo of nvidia by saying he's not bringing out a new chip.
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he just brought out a new chip what world do you have to obsolete your own ch the next day if you ship it fabulous, and amazing cfo would say give me a break. we didn't make enough of this overage project with ibm and jenson jenson is incredible i have to be his pr man. it's fantastic fantastic. >> we didn't get to yesterday sort of missed our time was this bsx striker. >> oh, my! how could we do that how people are saying, look, j.j. might want it i think they want something more high-tech. striker people say he's got to pay 38.42. i mean, this area is so ripe with take over talk and this is a huge deal. and we should not overlook it. the whole heart place is up for grabs. the diabetes space is up for grabs. and a lot of these companies
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don't have enough growth they have to buy. >> they need to do something strategic. >> exactly everyone gets a fever. it's feverish. >> abili little bit. inflation -- >> hot. >> a six-year high but almost exactly in line. >> right yesterday you talked about it kne these numbers come out in line if you're j-pal yohave to worry about we've never had this kind of employment growth. he has to look at the slack and see where it is. i also hope he's looking at, i mean, let's say you're short drivers. short drivers for trucks like, do you add the drivers knowing that maybe two years from now we'll be using antonymous driving trucks? >> it's a rock and a hard place. i'm struck by the ft interview
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with the citi executive that could replace as many as 10,000 jobs using machining in processing and automation. >> you know it's happening it's happening so much faster than we realize. we really don't know how to handle it. i know we got some incredible, you know, look, i look at the bank of america, they have a million people in the voice recognition system. >> yeah. >> just started. and, you know, millennial's love it it's like get me, you know, all the times i paid to have a cheese burger at wendy's millennial's don't do that you know, can i just -- we didn't talk about anthony bourdain for a second he said vegetarians are the bann of his existence and vegans are a offshoot i loved him. i loved his writing. another guy. tragedy and just tragedy. >> i know.
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i think the best thing that people say they can do is try to replicate what he did, which is learn about others don't be afraid of others. travel the world get to know humans everywhe. >> one of the great ambassadors. >> yeah. >> and i don't know obviously troubled figure, but a great man. >> yeah. >> that stuff is worth watching. >> absolutely. >> i loved him. >> we've lost a little early steam. dow is roughly flat here but with caterpillar in the lead, we'll get to bob. >> happy tuesday, everybody. and paul tudor jones gave the market very bullish. but nice open. carl mentioned we're off the highs here retail started strong. went negative. that's been amonster for the past three weeks since the earnings came out. banks have been another market leader that come to the floor. consumer discretionary historic high yesterday teches modest gains so far today. what is moving markets
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well, you know, overnight all the discussions look at the g7 meetings and what has been going on no market reaction to the g7 or the north korea summit a lot of people talking about markets getting desensitized it's the at&t time warner merger and the fed going on you can see in the market reaction look at the media stoc going into the time warner decision today. we'll be talking about it at 4:00 p.m. eastern. nice move in the last two or three weeks. you're getting some hope that sentiment might prove from the judge rules in favor for the at&t you can see it in the reaction as for the fed, you heard it from the guys. job performance has been outstanding. wage inflation 2.7%. that's not overheating global growth all right it's no longer sink nice we have ability will of weakn--a
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little bit of weakness in the emerging market. a lot of people are hopeful they won't sound too aggressive that will be another market catalyst overall as for the internals it doesn't get better than the way the market looks now the selling pressure is in a down trinend. the vix is moving to the volume of stocks on the upside is expanding. in other words more volume stocks up every day than are going to these are tremendously positive market eternals. it's hard for the market to go down long periods in a row for days with these kds of market internals overall. finally a old friend of ours back here today, tom farley is here for a special acquisition 's a special acquisition trying to buy companies in the
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financial technology area. they open at $10 there's 16 spacs so far this year companies formed for acquiring a private-sectorny you ge and don't know what you're buying. it's put into a trust for two to one years. they try to find a financial technology company they'll identify it. they'll announce they're buying it this is the best thing about the whole thing. investors can look and say i want in on this. they can stay in or get out. and get your money back. what you get is a chance to park your money, if you're a hedge fund for one year or two years you get a little interest. you get a warrant along with it. and it's not quite risk free but you're not going to lose any money if you say i don't like what they've got to offer. right now we moved into negative territory, carl. dow down five points back to you. >> thank you rick santelli in chicago good morning, rick >> reporter: good morning. up a couple of basis points but
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everybody has been talking about the year over year inflation number 2.8. that is the highest level since february of 2012 and we'll pay close attention to that the market did when that number was released pop a little bit. but hasn't moved all that much all though as you look at the two-day chart it's firm. it's trading both yesterday's yields if you open the chart up to the beginning of may, we're darn close to a three week high you know, a half a basis point this 297 area is an area to pay attention to maybe the most interesting thing is you look at that chart. the high for the year on a closing basis is 311 we're currently at 297 we're basically 14 basis points away from our high and we've talked about how the bunds many of the rates in europe underperformed but it's apples to oranges. not necessarily in this case look at the may first of bunds around 50 basis points
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high close for the year is 64. it's also 14 basis points away from the high. pay attention there. we're linked but obviously we've relinked and grab on at different levels as we recalibrate. we certainly aren't following each other just the variation and the total amount of basis points itself. the dollar versus canada year to date chart 131 or just a couple of whiskers shy of that was our high in march. we're not far away at 130 and this relationship is really tight. not a lot of volatility. dollar sticking at solid levels. if you look at what is going o with regard to the peso. a similar story but we're comping pretty strong. we're now at 1 versus mexican peso a little over 20. best levels since february of 2017 finally the euro versus the dollar this will be a big area to pay attention to as our first day of the central bank a rate increase tomorrow and then mario an drojy's turn
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you talk about bedrock supporting this zone its hovering at. key level. traders are optimistic we may see 120. there's not a lot of action now on the fx markets. at least between the euro and the dollar carl and jim, back to you. >> thank you very much, rick santelli back to the historic meeting of the president and kim jong-un. air force on the way back to the u.s. our reporter is in singapore as the story continues to develop >> reporter: good morning, carl. so just because it was such a high profile summit between the leaders of the united states and north korea, that happened this morning in singapore you can see behind me. perhaps a result we've got was a littleimatic especially for a lot of nuclear experts. we've got the big gist of that agreement that was signed between the two leaders of the two countries.
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the united states is promising security guarantees for north korea and kim jong-un is committing the regime to this idea to commitment to complete deation of the korean peninsula. we did not get that famous m when it comes to denuclearizing north korea which is cbid. we got complete but didn't get verifiable and irreversible. why is that important? because we need to be able to verify where the nukes are in order to make sure there is progress when it comes to denuclearzation. and irreversible, just to make sure that north koreans cannot go back to enriching plutonium or uranium in case of some kind of hiccups down the road in negotiations we didn't get that however, president trump, in the meantime, is framing this agreement as a very, very comprehensive document take a listen to what he had to say. >> we signed a very, very
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comprehensive document and i believe he's going to live up to that in fact, when he lands, which is going to be shortly, i think that he'll start that process right away i think he wants to get it done. i really feel that very strongly >> reporter: and in the meantime, president trump says that mike pompeo, u.s. sec statn with north korean officials next week to make more progress on this agreement that was signed today. so we'll see we'll do more analysis but at this point, it doesn't necessarily seem like a better or stronger deal with the north koreans. carl, back to you. >> early days, cheri, thank you very much. still to come this morning goldman's chief equity strategies david kostin will join us. dow has gone slightly red. the s&p hanging on to a slight gain
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watching the dow this morning pretty evenly split. xon n the lead followed by ibm, exand caterpillar. we will get trading with jim in just a moment. experience the 2018 lexus nx and the nx hybrid with a class-leading 31 mpg combined estimate. lease the 2018 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer.
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time for cramer. >> i know it seems like it is done going up. last night urban outfitters put out this note talking about gross margins going up. anthropology people are being less promotional. anybody who has been to urban knows they are riding a tail wind of fashion that will send the stock still higher. it is going higher. afteg stuck at this range for multiple years they have it going. >> remember when they could not fight their way out of a paper bag. it was tough. >> i have to tell you, go to free people it is loved again by millennials. go to anthropology they have great stuff even for weddings. the flag ship is still hard for me. people still spend money there. i like five below. five below is fun. we have chuck robins from cisco. and then jason gorevic.
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you basically say you talk into your -- that is a way to save a lot of money going international. very exciting story. very exciting time. >> once again want to wish larry the best of luck. >> sounds like we will get him. >> thanks. see you tonight. mad money 6 p.m. more reaction to the north korea/u.s. summit plus david ktiin menosn aomt. is getting help from some unexpected friends. these zebra and antelope. they're wearing iot sensors, connected to the ibm cloud. when poachers enter the area, the animals run for it. which alerts rangers, who can track their motions and help stop them before any harm is done. it's a smart way to help increase the rhino population. and turn the poachers into the endangered species. ♪ ♪
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good tuesday morning. street."back to "squawk on the michael santoli at post nine at the new york stock exchange. historic summit is in the books but the market will quickly shift its attention to a fed meeting and at&t decision and a lot more. our road map begins with complete de-nuclearization. we will break downhe potential risks and benefits of the president's historic meeting
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with north korea's leader kim jong-un. >> goldman's chief equity strategist is with us on set next. an ipo and a familiar face. tom farley is with us on set as his new venture goes public this morning. we start in singapore. we have the latest on the president's meeting with the north korean leader kim jong-un. >> that meeting lasted roughly five hours and at thei end of it the two sat down to sign an agreement. we still don't have clarity as to whether the two sides have come to an agreement about the definition of de-nuclearization. we know they see it differently. there was a signing ceremony today that was mh he by the president. afterwards he held a long ranging news conference to say that the u.s. will not lift sanctions on north korea until the president is convinced that the nukes are no longer
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effective. other significant announcements, the president also told the press that the south korean war games that are conducted annually by the u.s. military will come to an end. also, there will be the return of the remains of the soldiers from the korean war who were either missing in action or prisoners of the president talking about all the children or grandchildren that wanted to get the remains of their family members back. he said there are 6,000 of them. the president also made clear that he had talked to kim jong-un about doing this in exchange for stronger economy. >> there is no limit to what north korea can achieve when it gives up its nuclear weapons and embraces commerce and engagement with the rest of the world that really wants to engage. he has before him an opportunity
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like no other to be remembered as the leader who ushered in a glorious new era of security and prosperity for his people. >> as a reminder, there are numerous sanctions imposed on north korea for its nuclear program. there are seven outstanding e a ten u.n resolutions which have been crippling. it's those sanctions which many believe help bring northorea tohe table in the first place to have the meeting with president trump. >> just one question oe reaction. do w official word or is your sense of the reaction from our closest allies to all of these events? >> reporter: outwardly thehave been very positive. the statement from kim jong-un extremely posi. however, we are hearing that south korean military was taken by surprise about the ending of the military drills. there will be a lot of critics
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whink this is a bad idea that the drills are there to be prevocative to sena signal to the north koreans that the united states has the back of south korea as deterants but the president made it very clear almost like he hated spending the murn on toney on the annualr games. he said we have to fly bombers from guam. i know a lot about planes and that is really expensivexpensiv. i think that will be one of the al decisions that he made and there are also a lot of questions about whether or not he got enough in exchange for that decision. >> a lot of questions. thank you very much live in singapore. a comment getting a lot of attention, president trump's characterization of kim's tionship with his people. >> he is going to be happy. his country does love him.
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his people you see they have a great fervor. they have to put it together and i think they will end up with a very strong country and a country which has people that are so hard working and so indoi ri industry s. >> joining us now lincoln bloomfield and former special envoy to north korea. thanks for being here. how do you feel this morning are you optimistic or skeptical? >> i think this is a historic moment. i don't think that kim jung-ilwould have done this. the grand son is different. his country is more open to the world than north korea used to be. it is clear that kim jong-un is making moves and has been making
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moves for a year or two that signal an intent to move in a different direction. he went to the olympics and had historic meetings and has come to spore. he has accomplished a lot. he brought the u.s. president half way around the world. that's a big win for him. he seems to have a long range vision. the question is, is that consistent with american interests? we need to find out. it's a b day but the question is how do you unsnap the rubiks cube of security in northeast asia that's complicated. >> no question about it. i will ask the same question of you. given your history as the special envoy of six party talks is this time different >> i think it is very different. i think kim jong-un has made that strategic decision to fus on the economy and to realize that the part of achieving that goal is to normalize relations
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with the united states, bring the korean war to an end, peace on the korean peninsula and mov. i think the summit is moving exactly in that direction. i'm very positive on the results of the summit. a lot of details on complete de-nuclearization but i think north korea certainly from the years i have been working it with the joint statement of 2005 even then they understood it was complete irreversible dismantlement. we will have to put a great regime in place. secretary of state mike pompeo will be taking the lead on the relationship and how it goes. i think we are in a good spot right now, certainly much better than eight months ago when we were looking into the ity of st conflict on the korean peninsula. >> is there actually a framework, though, from this point on in terms of setting that process in place? what needs to happen right now
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perhaps in terms of dealing with a broader set of u.s. allies to try and actually move this ahead? that's a great question. there have been a lot of discussions among sort of korea watchers in washington. i have attended the meetings. the u.s. state department embassy have been there. they know the different contours of the problem. let me give you an idea. they will start next week under secretary pompeo's leadership. there is a very large effort within the u.s. government to organize. before the nuclear problem arose in the '90s there was a million man army poised to invade north korea. there are 18,000 artillery firing units and secret submarines that keep turning up in the oceans on both sides of south korea. there are a lot of issues, tus that can allow small
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tanks with tens of thousands of troops flowing into korea. so the war in korea really needs to be carefully pulled back from the brineven additiona nuclear. and on ballistic missiles even if they remove the long range missiles and the medium range if they can still hit japan then the japanese will feel very exposed and will turn to america. will we still defend them and build up missile defenses? what will china do if we do that there are a number of dimensions. if we get 6,000 sets of remains back from the korean war but japan doesn't get back all the information on thebducted japanese missing which is a huge domestic issue in japan all of these things have to be dealt with not to mention the economic reunifaction. germany unification is a ratio. this is 20 to 50 to one. there is a lot of planning that
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needs to happen. the two have to oversee this and keep it on track. it will not be easy. >> thank you both for joining us on thistoric day. well we have a cnbc exclusive on squawk box. andrew joins us now with more. >> it's rare to have an opportunity to talk to paul jones, does very few intervi but did speak out this morning on the historic day on so many issues around the news event of the moment as well as the markets. want to take you through a couple things he said. the first was we asked him specifically about how he thinks the market should react to what is taking place in singapore this morning. >> we have been trading it the past 12 months leading up to
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this point. this is semi anticlimatic in the sense that we went through the period a year ago. we were very close to military confrontation. i don't think people realize how close we were to some type of armed conflict. here we are a year later and so much of this is already played out. i think this is anticlimatic. >> as for the broader markets he has a pretty provocative view of where he thinks interest rates are about to go. >> i think we will see rates move higher beginning sometime late third quarter and think it will be interesting becaus think the stock market also has the ability to go a lot higher at the end of the year. >> while he is expecting the stock market to go higher he is also relatively anxious longer term about where the stock market will end. >> the last time that we had
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unemployment rate where it is now was 2000 and we were runnin a budget surplus at that time. we were talking about bond scarcity. now we have the exact opposite. so we have fiscal policy that lilly came from another galaxy. and we have monetary laxity. and that brew is what has gotten the stock market so jacked up. >> and that jacking up he says he expects we could see a bubble burst at some point. i should tell you tomorrow just capital which is a foundation that paul tudor jones founded has an etf that will begin trading under ticker symbol. it ranks companies based on their perforthese are not typic but metrics based on howcompani
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tudor jones suggests they will outperform markets. that starts tomorrow. >> definitely market moving today. thank you for that. great to hear from him. other news from the white house national economic council director larry kudlow suffering what the white house described as a very mild heart attack. president tweets last night before his meeting with north korea's kim jong-un we send our best wishes. he is expected to make a full recovery which is excellent news. one news outlet said possibly going back to the white house soon having spoken to larry himself. our best wishes are with him. >> we know him well. we know him as a fighter and optimist. hopefully those attributes will help him. sounds like it will be good news. as we go to break take a check on where the markets are on this tuesday reacting to an awful lot and a lot more still
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on the way. of course, the fed decision tomorrow at&t ruling later on today. plenty to watch. we will talk to chief u.s. equities strategy david kostin in a moment. stay with us. ing referral serv. i've spoken with hundreds of families and visited senior-care communities around the country. and i've got to tell you, today's senior-living communities are better than ever. these days, there are amazing amenities, like movie theaters, exercise rooms and swimming pools, public cafes, bars, and bistros, even pet-care services. and nobody understands your options like the advisers at a place for mom. these are local, expert advisers that will partner with you to find the perfect place and determine the right level of care, whether that's just a helping hand or full-time memory care. best of all, it's a free service. there is never any cost to you. senior living has never been better,
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dow holding above 25 k. markets with forward momentum continuing even as trade tensions dominate the headlines. central banks about to make key
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monetary policy decisions. to break all this down in a exclusive. good to see you again.ruck by w today and that is q 3 and 4 could be a phenomenal time to trade. it hasn't been your thesis for the year. >> thesis has been markets up around 4% so far year to date. expectation is 3% or so from now until the end of the year. 2850 for the s&p 500. the observations that paul made as you can have an environment of rising rates and rising stock prices. i agree with that as a general construct provided that rates don't go higher too swiftly and the level is not too much higher. the equity market is indicating you have economy growing and earnings are growing. you have basically a trajectory of things getting a little bit better. >> i guess you have to have the
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definition of what going too swiftly higher for interest rates might be because golden sacks thinks they will go higher faster. >> i wl define what too swift would be. in my terms 30 basis points in a month. think about that as a tipping point. if you had bond yields move higher more quickly than that the market doesn't absorb that. you saw that in january bond yields went up and stock market fell by ten percent. that is the pace and the tipping point level as i think about it would be about 3.75 to 4% in terms of ten year u.s. treasury yields representing a risk to the equity market. otherwise the equity market at 17 times earnings is basically going to follow a trajectory in line with gs. >> what does that mean in terms of fed policy? do you think the fed will calm down on its aggressive rate hike talk because of what is going on with emerging markets?
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>> the economic forecast is a hike tomorrow and two more hikes and four hikes in 2019. that is a more hawkish view than is built into the forward market and as most people with regards. it is consistent with an economy that is running at unemployment rate well below a long term sustainable average. that would be the view to follow. that is consistent with the view from economics point of view consistent with strategy which is to own companies with stronger balance sheets and financial sector as the component of the market which would do better. >> i want to quickly ask you about laundrymanman rary machin. we got the cpi in terms of price of washing machines. clearly tariffs are having an impact on u.s. consumers. >> 25% of measured inflation is
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goods. 75% of measured inflation is services. what you are referring to is a small component of measured inflation running towards the twoish percent level. >> you are not worried about it. everything. ried about that is not viewed as the biggest risk. >> whenever you are asked about worrst say i'm worried about everything. >> i'm always worried abou everything. do you expect buybacks to slow down can we keep up the pace that we saw in q 1 >> expectation is this year will be a big year for buybacks probably 25% increase in the dollar spent on repurchasing shares. for s&p 500 companies that equates to around $650 billion of repurchases which is meaningful. still the largest share of cash is directed towards capital spending. that still remains the principle source of spending which is a
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thing from economic growth paint of view. interesting is what is leaning fund managers leading us to encourage companies with strong balance sheets. in an environment where rising rates are sue then strongerance sheets after many years of weak stocks doing better this year you are seeing a big recovery in companies with stronger balance sheets. that is likely to continue. >> in practice that will take you to a lot of the big growth stocks, medical tech stocks that seems like people already left. >> sector neutral. there are companies in every sector with stronger balance sheets. when the fed rates were pinned close to 0 and rates were much lower bond yields were up 60 basis points already this year. close to 3%. that is an environment for stronger balance sheets to do well and have outperformed by
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almost eight percentage points. that is an environment likely to contin as we go through the balance of 2018. >> we did get the fund manager survey today. they said a record 42% think companies are overleveraged also for the first time they are overweight u.s. for the first time in 15 months. >> i was in europe last week. i was surprised with the degree of concern about the end of the economic cycle. some of the economic data in europe has certainly been rolling over a bit. the u.s. remains very strong. the concern about the higher rate environment and how it would impact valuation of stocks. as long as rates don't go high too swiftly every price will still go higher. >> good seeing you. >> when we return the world will see a major change.
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those were north korea's kim jong-un words. much more from singapore after the break. >> now we can have hope that it will soon end. it will soon e the past does not have to define the future. yesterday's conflict does not have to be tomorrow's war. and as history has proven over d er again adversaries can indeed become friends. ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade e platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online. there's nothing more important than your health. so if you're on medicare or will be soon,
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time for etf spot light where mike is taking a look at defense spots with de-nuclearization in focus on pace for the worse day since the end of may. this is one of the few spots in the market where you are seeing big eactions. >> down almost one percent if you look at main etfs in the group. the xar and ppa are basically three different cuts at this sector. they are within the industrials group. most of these stocks. they all pretty much track one another up very strongly between 25% and 30%.
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so you could say this is just an opportunity to have some very strong stocks pull back on profit taking when youe one global hot spot in north korea which might be cooling at the margins. nobody thinks it changes the longer term story in terms of aero space cycle or defense spending plans. those budgets are pr well in place. of does it create an opportunion to rotatout of some of these mes that have been so strong and trade related. just within them ita is the biggest of the funds. it is more than one third the five biggest names. so you are really seeing a concentrated look at the largest aero space companies. xar is equal weighted so has broader weight. we'll see if it is just a one day excuse to take some profits. >> obviously makes sense given the news of the day.
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rick santelli for the santelli exchange. >> when it comes to big moves michael santoli drew the lucky card. you can point to something and say maybe what is going on with the korean st had an effect whether building or in split moments or hours over the last 36. if you look at a two day chart of the dollar index there are some volatile points and you can kind of match them up with the end of the summit but not much. if you look at the two day and then year to date yes it drifted higher. it had some movement but all in all it is pretty much side ways. the same could be said for the south korean stock market. if you look at a two day or year to date maybe it had a move over the last couple of days but it doesn't really take you out of the longer term macro pattern. the point here is it is nothing to be depressed about. there was no pop but also no
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drop. being a market person, this is a key aspect. they have the status quo of the markets trying to sift through and hasn't been a big driver during this administration where this president's foreign policy has been met with some trepidation to some extent by many on both sides of the aisle. from the market perspective the notion that there wasn't a drop is actually a good thing. over time whether we look at reagan or other big peace dividend type situations they take a long time to unravel. as for some of the critics and i don't know how this will turn out but the one thing you hear over and over again been there done that. the north koreans never seem to keep their word and it is hard to keep track of what they have agreed to. any single person that is ever asked another person out on a date and was turned down hopefully they didn't stop there. they kept asking and kept
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trying. no situation is exactly the same especially in the globalized world we live in. the outcome could have been much worse and with respect to the market maybe no move isn't such a bad thing. mike, back to you. >> i'm right with you. the markets have a very much cut to the chase attitude trying to figure out what really matters here. appreciate that, rick santelli. let's get to sue herera. >> good morning everyone. here is what is happening at this hour. president trump departing singapore following his histor summit with kim jong-un saying he was leaving early because there was nothing more than could be done. while details are vague about the de-nuclearization on the peninsula the president did say he intended to end joint military exercises with south korea. here at home a nearly 24-hour hostage standoff with police in florida coming to a tragic end. orlando police say all four children being held and the suspect are all dead.
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35-year-old gary lindsay jr. shot an orlando officer sunday night before barricading himself and the children in his apartment. those kids ranged in age from 1 to 11. > a prescribed brush fire in utah that got out of control over the weekend and destroyed two buildings continues to spread. the trail mountain fire has burned more than 2,600 acres. it's only ten percent contained. and it is former president george h.w. bush's 94th birthday eight days after he was released from the hospital for low blood pressure. he is celebrating at his home in maine. we wish him a very happy birthday and all the best. that is the news ue this hour. >> sue herera, thank you. when we come back the former president of the new york stock exchange tom farley is back. his company going back to the big board today.
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first, reaction from south korea following president trump's summit with north korean leader kim jong-un. the halting of military exercises seeming to te the south koreans by surprise. we will elaborate further after the break. when he lands i think wheill start the process right away. i really feel that very strongly.
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welcome back to "squawk on the street." one hour into trading dow is negative but s&p and nasdaq are both positive. obviously, tech is a leader. no surprises as paul tudor jones
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reacting to how the markets are reacting reacting exon and ge leading the dow. we are joined this morning from seoul with south korea's reaction. >> good morning to you. let's start with the public reaction that we have gotten from the south korean government. he put out a tweet shortly after the summit essentially saying we will never go back to the past again and never give up on the bold journey saying two koreas and the u.s. will write a new history of peace and cooperation. that is a public statement here. privately a lot of questions after e comment coming from president trump after what he said would be an end to war games. >> i want to get our soldiers out. i want to bring our soldiers back home. we have 32,000 soldiers in south
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korea. and i would like to be able to bring them back home. that is not part of the equation right now. at some point i hope it will be. we will be stopping the war games which will save us a tremendous amount of money. >> reporter: those war games the president is referring to the u.s. south korea joint military exercises that happen annually. these are something the u.s. has called defensive in nature to prepare for the readiness of roughly 30,000 troops that are here on the ground. north korea has often called them provocations the president using north korea's words which kind of caught the south korean government by surprise saying they need to figure out what president trump's intentions are in response to the remarks and will get a debrief from secretary of state mike pompeo who lands here tomorrow to meet with south korea as well as japanese officials. tomorrow there are local elections that are happening here, the election not expected
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to hinge on north korea. he comes in here with a lot of approval here, 70% approval rating for his north korea policy. we will be watching to see if the surprise we got out of singapore could move the needle on that front for president moon as well. >> joining us for a closer look is atlantic council ceo with us here at post 9. long day for you already. thanks for being with us. sounds like we are looking over your thoughts. you think maybe kim has had a shift between thinking his nuclear arsenal was an asset to maybe now a liability. >> more important than think that that is what the south korean leaders think who have met with him. he thought his nuclear weapons were going to get him regime survival and thought they were going to get him economic health and growth. he shifted his thinking and i
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think partly because of the maximum pressure of donald trump and the military threat which he had taken so seriously that people say intelligence people say he was moving around pyongyang more frequently than he did before he was getting a little bit worried. we hope he has decided that they are now more of a liability than an opportunity for him. that's what we will see as the negotiations pan out. >> can we even begin to contemplate the opening up of north korea's economy? the idea that it could be open for business or is that way too premature? >> this is a historic step. there is no doubt today was an historic step but to where. only the negotiations will show that. the danger is the sanctions could be eased particularly u.n. sanctions and the pressure could be taken off of kim before he goes as far as he needs to go
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because de-nuclearization is not a fast path. first you have to freeze and then dismantle. this could be a decade in the making. how do you keep enough economic pressure. i was in south korea recently. if there is an economic bet to be made i would look at companies and look what happened with some of the west german companies. it was tough on west german economy because there was so much support that had to go in. for individual companies it was a shot in the arm. >> are you suggesting that u.n. sanctions could be eased before the de-nuclearization program reaches that threshold where secretary pompeo said we don't ease up at all until we are convinced of total commitment. >> the chinese foreign minister this morning made the statement that this could be the beginning of taking a look at those sanctions and they would be the
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first sanctions to be eased. you can have humanitarian relief being freed up in a more meaningful way. and you would just have the u.s. not blocking things like that where others want them to go forward. and the chinese would like to move on those u.n. sanctions. chinese also of course everyone start jockeying to see what they can get out of it. the chinese only like the deal if in the end it means u.s. troops leave. people are a little worried about the president's unilateral statement today about ending the south korean/u.s. military exercises. that struck not only south korean leaders as a bit of a surprise and also no message to military in south korea that prepared them for this. >> general mattis throwing cold water on the notion for now that troops would exit which is not the plan. how much do you think the biggest obstacle will be not from kim but from hawks back home
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you have lindsey graham saying congress deserves a vote on this. >> verification is tough. where it stands right now is de-nuclearization has not been defined. and kim didn't go any further than he did in april, very vague notion of de-nuclearization. the feeling is he is holding out. he is holding out until he gets more in response for what he has done so far and so i actually think that you are going to see the hill being helpful in allomp to continue to hold kim's feet to the fire. so i think there won't be an impediment. in some cases i think it could be a help. >> what do you think this means for u.s. china relations specifically trade negotiations which have gone nowhere until this point >> my own view and i must say i
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have no hard evidence for this is that the zte decision last week is related to this summit, that trump did not want to go into the summit with the chinese wanting to pull the rug out from under him. now we see the senate acting on zte particularly perhaps pulling that back. this decision and this summit could either bring the u.s. a lot closer together because both sides have an interest in a denuclearized korean peninsula and both an interest in north korea coming into the modern world upping its economy. china has no interest in a unified korea that is close to the united states or even two koreas and a peace deal that leaves american troops all in place which is what would be in south korea's interest because those troops could be a guarantee of whatever agreement is reached. >> one of the adams cambassadord
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it a rubiks cube. >> if you thinking of the rubiks cube where does the first step get you? >> thanks so much for the insight. when we return an ipo and some familiar faces. far point acquisition group going public and headed up by esento new york stock exchange pridt m farley. he is back and joining us at post nine. whoooo. when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly...
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after a volatile start to the year credit suisse says a wave of calm is about to hit the markets. more "squawk on the street" coming right up.
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far point acquisition announcing its ipo today. the newly organized so-called blank check company will be targeting an acquisition of a
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business in financial and technology. we are joined by the company's ceo anrmernt of the new york stockxchange. tom farley couldn't stay away. >> feels a little weird being here in a different capacity but it is great to be back with all of you. >> so people understand investing, you raised a bunch of money and now you have to put it to work and buy a company. is this for the average investor >> it's exactly as you described. we raised $550 million. the investor base has a lot of built in protections. it's for investors who clearly understand how it works and they understand how they are protected. an investor when we bring back a financial technology deal for them to consider can vote yes or no and further can choose to redeem the cash if they don't like the deal. >> when is that going to happen? what sort of qualifications are you looking for when you determine your investment? >> we are looking for great financial technology companies that are ready to be public.
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they are public company ready. they will benefit from being public. and we are looking in spaces that are benefittingge trends that will serve ail winds for the next decade, increasing value of data. companies that are producing data or distributing data, analyzing data and also companies that are providing efficiency solutions that are helping companies move from a high cost to low cost cus. we are seeing whether regulation crowding out costs or move from active to passive, companies that can provide the efficiency solutions that help companies be more effec >> intensely competitive area. you have soft bank in there bidding for stuff. what is the edge did you get a window on what matters there? >> a couple of things. first of all, i'm looking to go in and run the company that we acquire which is unique.
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i want to run a public company. i guess as of today. >> not like private equity. >> it is different. fiof all in the sense that it is public. the company is public. it's different in the sense that i want to run the business. we are also looking for partner deals. it may be a firm that owns a private company looking to take chips off the table but want confidence in the management team. we are not looking to compete with the vision fund. we are looking for some unloved overlookedses. it might not be 100% year over year grower like coin base. it may be going five percent. we can take it to ten percent and increase margins and do a few acquisitions and create a great $20 billion enterprise value company. i learned from the master in how to make money for your investors. trading around 75 bucks a share.
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i look to apply some of those same lessons learned that some of those strategies learned from working with jeff. >> 30,000 feet. you could have chosen all kinds of directions. you went because of your competency here or because you saw me around here i loved working with stacey cunningham and john tuttle the fact that i left underscores that it's absolutely both of those. fin tech is a great area to invest right now there's haves and have-nots. there are companies that are polished jewels and i saw that as an incredible opportunity i wanted to run a public com and working for jeff that's a little bit like playing quarterback behind tom brady i'm striking out on my own and i think at the right time.
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when you have a great management team like i did at the new york stock exchange, who supports me, quite frankly allowed me to come on your set and look good on behalf of the nyse, sometimes the best thing you can do is get out of the way and let them take over and they're going to flourish. >> you brought a lot more spacks to the nyse where traditionally they would go public at the nasdaq do you think we'll see more of this trend as fewer private companies decide to ipo? >> i do. you w an incredible business leader raise the spac last week. >> goldman, right? >> with goldman. and tpgs participation, carlisle participation. it's growing in front of our eyes i spearheaded with one of my colleagues, carolyn, to get more spacs in the nyse. right behind carl i met a gentleman who told me about spacs and then i met other and
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thought this is a good vehicle to build a great public company that's a financial technology company that can compound returns for investors. that was kind of the seed, the original seed of the idea. and it just felt like now is the moment to lead because there was ch a strong succession pla place. >> this is, obviously, a trend you and daneb, are you equal partners here? >> dan and i have been good friends. the fly in the ointment with spac sincere what i describe d earlier, investors can redeem their cash so sellers won't show up with any money. i called dan and said you're on experts in a generation. will you be my per here? will you contribute a $400 million backstop, guaranteeing the cash will be there so if i go into a high-quality seller they know we're credible it was a five-minute phone call followed by a meeting. dan agreed we've been friends and continue to be friends.
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he has been a great partner and has gone above and beyond. i'm thrilled we're working together on this. >> don't be a stranger. >> won't be the last time. >> it's bittersweet for me to be back here. my good friend, green, runs the n here today. he and his family are suffering this morning they're in a tough spot. so if you could just offer prayers, hopefully everything will be okay for tom and his wife. >> we will do so thank you, tom farle fy,ar point acqu >> more "squawk on the street" after this
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welcome back to "squawk on the street." you can see here the s&p up .1 of 1%. discretionary and materials leading the way higher and consumer staples, financial and health care the laggards on the day. if you take a look at the two-day chart of the s&p 500 utility sector you can see about a 1% gain, shooting higher today despite a slight uptick in interest rates
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nrg and finally take a look at one of the most closely watched ets, that spyder utilities that ticker on fund for the best one-day performance in over a month. pretty decent moves on utilities despite that interest rates are headed higher. >> dom, thank you for that ambassador robert kimmitt joins us after the meeting with kim jong-un. dow is down points.
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then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. good morning it is 11:00 a.m. in washington where we are expecting president trump landing after that north korean summit. "squawk alley" is live ♪

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