i'm becky quick along with andrew ross sorkin. joe is off today, but we are thrilled to be joined by a terrific trio of reporters. we have reuters dan collaruso, joe wisenthal and ben white. they are all ready to tackle the big stories. first up, the nikkei bouncing back from a two-month low. japan's benchmark index rising 5% to close at a session high. you may think this is a huge deal. it is to a certain extent, but boy, have we seen some volatility in the nikkei. we've been watching this market really closely over the last couple weeks, and it almost is starting to feel like big moves like this are standard plays. there was a revised gdp that surpassed market forecasts. analysts say the data confirmed abe's policies are strengthening the economy. the financial markets in china were closed for a public holiday today, but there was important data released during the

weekend. we are not talking about the snowden type of data. these were numbers that showed unexpected weaken in trade and domestic activity. struggling to pick up. the inflation rate fell. meantime, growth in new loans slowed, and industrial output slightly undershot expectations. we will have more from our colleagues in asia in just a few minutes. let's show you quickly what's happening in the early european trade. you will see right now that, well, they're green arrows, but these are all pretty modest. the dax is up by 0.9%. here in the united states, the equity futures, at least at this hour, if you want to take a look, are indicated slightly higher. the s&p futures are up by about 3 points. the dow futures up by about 19 points. so andrew, we'll see where we head as we get closer to the opening bell. >> thank you, becky and happy monday. the first big story, apple is holding its first worldwide development conference in san francisco today. among the products expected, a digital radio service and changes to the software behind the iphones and ipads.

we're going to get more from our john forte later. also this morning, google reportedly close to buying a crowd sourcing mapping start-up waze for $1.3 billion. we've talked about this app before. this is according to an israeli financial newspaper. there were reports of google's interest. facebook was also said to be in talks. we had one of the investors of waze just a week ago. astrazeneca buys pearl pharmaceuticals. there's a $560 million up-front payment we should say. and then further payouts on the drugs's success. second biggest drugmaker trying to rebuild its pipeline. and elan is assessing other deals. $8 billion on friday and that

was the third increase in five months. it's now time for the global markets report. let's get across the atlantic. deirdre wong morris is standing by. and ross westgate's in london. we have both of you at one time. let's begin in japan. deirdre. >> reporter: hey, andy, you've got me first, at least. and as you can see, the outperform, certainly the nikkei 225. this time it was on the upside. as you guys mentioned, i l emen volatility. today to the upside about 5%. it was the perfect storm that sank the nikkei that got things rolling today. the dollar/yen rising. nikkei futures pointing upward. and we are always keeping an eye on the jgb yield on hopes that the boj will do something to curb volatility in this space at the end of its policy meeting, its two-day policy meeting which

ends later today. now, remember, the nikkei still down about 15% since its peak on may 23rd. but for year to date, it is up 30%. so as you guys have mentioned, as we say, again, volatility is the name of the game here. we're also looking at china. some very baek dweak data. the hang seng in hong kong was open. it just shrugged it off, notching 0.2%. australia was also closed. we'll be watching keenly tomorrow to see how it reacts to that weak economic data, particularly trade figures. it is all about the yen. but today it was also all about the rupee. the indian currency falling, threatening to break that 58 level. but shrugging that off. of course, the weaker rupee complicates the government's plans in india to boost that economy. interesting times over here in asia. back over to you guys. >> deirdre, i'll take that. thanks very much. here we are in europe. you can see we've got weighted

to the upside with more green than red. in fact, 6-3, 2-1 on the dow jones stocks 600. here in europe. and we're not far away from the highs for the session. but if you take a look at the indices, a little bit of a different performance. the ftse 100 down 2.6%. it's fairly flat here, just up 7 points. the cac is pretty flat. the standout performer is the xetra zadax. and despite the threat of anti-dumping procedures being taken against china in retaliation for what's going on of course with the solar panels. that market outperformed, the ftse down 0.25%. the reason is because of that chinese data. if you take a look at the sectors today, you'll see it's basic resources that are the weakest, down 1.5%. minus once again getting it in the neck in concerns about the lack of strength of the chinese data compared to what we were expecting.

financial services and those autos as well, not doing too badly. by and large, another huge amount of stock news today out of europe. francois hollande, the french president declared the european financial crisis was over. and france was very much open to companies coming in and investing and buying up their companies. although the track record would suggest otherwise. so right now cautious modestly higher as we await the u.s. open. back to you guys. >> thank you very much. we'll see you again tomorrow. right now to the self-identified source for the nsa leaks. he is a 29-year-old former technical assistant for the central intelligence agency. edward snowden worked at the national security agency for the last four years as an employee for various defense contractors. he was revealed yesterday in a taped interview with the uk's "guardian" newspaper. >> these things need to be determined by the public, not by somebody who is simply hired by the government. >> he was interviewed in hong

kong, and he said that he expects the u.s. government will try to track him down. >> the greatest fear that i have regarding the outcome for america of these disclosures is that nothing will change. >> let's talk about this with our guest hosts today. dan, joe and ben. and gentlemen, i have to admit, i am still trying to figure out exactly what all this means. i was harassing ben this morning in the makeup room. watching all of this, okay, we know what he has come out and said was out there. it's forced a lot of people's hands, including in the nsa and other places, to say yes, there's something that was going on here. he chose to identify himself probably because he thought he was going to be exposed very soon anyway. but this is a pretty confusing case. >> it is. and it's not 100% clear to me why he chose to expose himself. in exposing himself, he also said i don't want this to be about me. it's not about my heroics. it's about the documents. it's about the fact that the nsa

is monitoring phone calls, data of americans and monitoring all this internet chatter. but it is about him now. we're talking about him now. and i think it's absolutely true that they're going to go after him. he's going to be prosecuted, i would imagine. the question is where does he wind up? iceland? >> don't you think this was an attempt to try to get in front of that, by going out publicly? >> he told "the washington post" that he thought he was on the "x," which apparently means about to be exposed. >> you're suggesting trying to get sympathy. >> i'm suggesting he goes to hong kong, this is a place where he believes free speech is embraced. you go to china, there's other reasons perhaps for going to china. gre greenwold suggested he was going to china potentially as a defector. if things went really long, china would take him in to use him for what he knows. >> he also said interestingly in this interview, at least at some point he considered selling data to other foreign governments in

return for large amounts of money. he doesn't want to, but he considered it. >> yeah, he mentioned russia. >> i don't remember exactly which countries he mentioned. >> there also weird angles, by presenting himself. he was, like, oh, i'm just a 2-year-old. then claiming oh, i could tap the president. tap your dad, his phone, whatever it is. also by revealing himself, if you believe what he says is true, then he does reveal another layer of the power that anyone working for the nsa had. it's not just that these programs exist but the agency -- >> any rogue person. >> anyone could do. >> right. he seemed like just a very earnest, young guy. he wasn't exactly m.i.t. material. he's not that kind of guy. not the super genius we imagined. >> we don't know. there are plenty of geniuses who weren't m.i.t. material. zuckerberg. >> right. but he was a security guard. he started as a security guard.

>> you've got to start somewhere at the nsa. >> right, anybody goes rogue, and he could tap obama's phone. >> he says he can. >> as a business question, i don't know if we get the stock up, booz allen hamilton, used to be owned by carlisle, this is a company he worked for -- >> he worked for dell before that. >> three months. >> some kind of hawaii office. allen hamilton is different than the consulting firm because they are two different firms. do they take a hit on this? >> i would imagine they do. >> they have only one client. >> which is the federal government. >> the taxpayers. >> potentially they have to take a hit. if you are contracted by the federal government and all of a sudden one of your employees is leaking perhaps the most significant national security data that we've ever seen leaked, your clients are going to be upset. >> the last four years he's only been about booz allen. >> i don't think they got their money's worth on hiring him. >> i'm sure there will be

hearings on how we outsource intelligence. people will be wondering can these outside companies keep data as safe as the actual nsa itself can? that's going to raise questions. >> the thing i was trying to talk about with ben, and i still don't understand, is there were very strong denials that came from mark zuckerberg of facebook and from google's larry page which when i read those two strong things, coming from those two gentlemen who i didn't think would stick their necks out, i thought prism can't be for real. these guys messed up their reporting. it's really knocking things down. >> well, i would say there's been a couple of other reports that i think kind of reconciled the strong denials with the original "washington post" and "guardian" reporting. "the new york times'" report on friday night and also mark amender. basically the story was more like there was direct access to servers, but these were servers

especially set up to comply with legal orders. >> when i read their denials, i thought, okay, these guys can't be trying to use legalese. why would they do that? >> i think there still is a pretty substantial different which made it seem as though the government had access to all of google's servers and couldn't root around at will and other specialized servers which are made to comply with specific orders. >> yeah, but what it sounds like is happening is there's some kind of middle server. if you're facebook or google, there's a server in between. and if you are this fellow, snowden, as an analyst, you send some kind of query to this server saying i need information on so and so's gmail address. >> that's a technicality. it's like me saying i didn't get that information from dan. i went to you and i got the information from you and i made you go to him and get that information. that's the technicality. >> i think that might be what's happened here. >> i think that that's more than a technicality. having a legal requirement for a specific order which you can then look at. "the new york times" report said

that these inbound requests were reviewed by in-house lawyers. so it does seem to me that there is a substantial difference. >> yeah, there's a difference between -- >> setting that up and here's the key to our servers. root around. >> unfettered constant access to the servers. and remember, "the washington post" changed its language from the initial report on prism saying there was this collaboration and unfettered access to all server data. they backed off of that a little bit and said basically there was some interaction between the companies and the nsa where they got the data. >> one more question for you. so in the various pieces yesterday, "the washington post" in particular spelling out what happened, it suggested that this fellow, snowden, went to "the washington post," handed the story over. "the washington post" went to the government first, said we know about this. and what can we publish without creating a security concern? then apparently didn't publish everything that snowden wanted published, and then he went to

greenwold. then greenwold tweeted out that said everything in "the washington post" is a lie. >> there's a despite between greenwold and gelman on how they interacted with snowden. >> greenwold being from "the guardian." >> first reported all of this stuff, followed up in "the washington post" by the prism report, not by the phone surveillance report. yeah, what "the washington post" says is did said to snowden, you have 40-something slides. we're going to decide. you can't tell us what to publish. "the post" says he then went to greenwold and they made an arrangement. i don't know what greenwold's point is now, but he's denying that saying maybe they had conversations before all this happened. >> because greenwold hasn't published all the slides either. furthermore, greenwold said this morning that actually snowden isn't trying to just get them all dumped. because you'd think at this point he could post them all on a blog site. >> i'm confused because if the nsa and the government knew about this in advance, then a member of the nsa came out and

said these stories are false. >> right. >> and yet clearly at least "the washington post" ran at least parts of the story by them. >> i guess they chose not to engage and didn't push back on any of the details. >> we're going to continue this conversation, of course, throughout the broadcast. meantime, we mentioned china data earlier. and our eunice yoon joins us from beijing with more. good morning, eunice. >> reporter: good morning. the economic data for may didn't really, you know, really excite anybody. we saw everything is pointing to a stagnating growth. the export numbers came in at growth at about 1%. and this is despite the fact that the u.s. economy is recovering. people also weren't excited by import numbers. that was suggesting to a lot of people here that domestic demand isn't very strong. the producer prices as well as the consumer prices also came in quite weak. and so a lot of people were focused on producer prices because they were saying that this just shows there's still a lot of overcapacity in the

chinese economy. the bank lending numbers also came in slower. and so overall, this set of numbers really suggests that we're going to see even slower growth in the second quarter. guys? >> hey, eunice, a different question for you. on this snowden issue, i know we were talking about china data, but hong kong, tell us a little bit about hong kong. would he be extradited from hong kong? he seems to think that somehow hong kong is different than china, that -- >> reporter: it's -- >> what's your view? >> reporter: yeah, no, well, there are a lot of people who are actually wondering why he went to hong kong. because hong kong has an extradition treaty with the united states. and hong kong can make its own decisions. so they could very well decide that they will cooperate with the u.s. authorities. and he could be extradited. the buck, though, does stop with the chinese authorities in beijing. they have veto power. so they can, in theory, veto the hong kong authorities on their

decision. but the chances of beijing doing that are really very low. because they -- this particular issue really isn't of interest to them. it doesn't directly involve them or affect them. and in fact, there is political cause for them if they decide to veto what the hong kong people decide. so they could get political cause there. what's interesting also is the way the chinese state press has been covering the story. it's been a very, very neutral tone which suggests that beijing doesn't want to get involved. it doesn't want to, you know, be involved in this decision at all. what was also interesting is the way the chinese public has been discussing this particular whistleblower, saying, well, isn't it ironic in the midst of all these accusations of all the cyber spying for the chinese that isn't it ironic that an american would come and seek refuge in china for political freedom and freedom of speech? so that's kind of the discussion that's going on right now here. >> a lot of water cooler talk

there. a lot of water cooler talk here. eunice, thank you very much. again, eunice, we'll see you again very soon. when we come back on "squawk box," the story behind the larger insider trading case in wall street history. first, a little "squawk" sports news for you. the miami heat evening the nba finals at 1-1. the heat actually dominating the last 28 minutes of the game to beat the san antonio spurs 103-84. the spurs host game three tomorrow night. ben, i know you'll be watching. you've been watching all of these things. i find out this news early in the morning when i first wake up from ben. "squawk box" will be right back.

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a live look at times square there. welcome back to "squawk box." gallion founder had it all until he committed the largest insider trading crime. it's the subject of "the billionaire's apprentice." thank you for coming in this morning. >> thank you for having me, andrew. >> full disclosure. i think everybody here is a good friend of hers at some point or another. your book has a subtitle which is "a rise of the indian elite." i want to go to the rise of the indian-american elite because

the three main protagonists in this story a, what does that sa? what is that connection about? >> well, that connection is about all of these individuals came to america from india. they did very well for a very long time. they were symbols of indian success in america. there are 3.2 million indians in america today. they outstrip the chinese by a large margin on income and education despite the tiger mom. >> what does that say, though, about why both committed these crimes? i assume having read the book now that you believe they committed these crimes. >> yes, i think there was powerful evidence to show that they committed these crimes, that's right, yeah. i think it had a lot to do with ethnic ties. they knew each other. they were from the same community. it allowed them to get a lot closer a lot quicker. >> when you look constantly every day, we have a new headline about a new insider

trading case. i want to get to steve cohen in a second. is it worse today than it was before? >> you know, i think insider trading comes and goes. in the late '80s, you had an italian prosecutor named rudy giuliani who rooted out insider trading on wall street, and for many years, i think it calmed down, and i think it's back. but i suspect it's a lot less prevalent today than it was in 2008 when all of this was going on. >> so this is really just the authorities come in and clamp down on things. it scares everybody's straight for a while, and then eventually it kind of roots back up? >> that's right. it has a sobering effect for a few years, and then, you know, like any bad weed, it comes back. >> is there something to be said -- one of the criticisms you always hear is the government has not gone and prosecuted anybody related to the financial crisis. but boy, have they done a great job of going after people for insider trading. is that because it's easier? >> yeah, absolutely. i mean, i think government lawyers are just like the rest of us. you know, they pick the low-hanging fruit first, and

then they go for the higher fruit. and it's a lot harder to create a case, you know, that is going to tie, you know, the shoddy mortgages that were created in 2007 and 2008 to the ceos of the investment banks. >> you said low-hanging fruit. let's go to the high-franking fruit. steve cohen. how do you handicap that? we have a month before the statute of limitations runs out on the five years for the infamous famous elan trade. does he get prosecuted? indicted? >> i think he doesn't. and maybe that's a controversial stance to take. i think he doesn't. you know, if the feds had something, why would they, you know, be suddenly subpoenaing stevie cohen and a handful of his executives? a lot of people think that's sort of a hail mary pass. you know, i think the clock's going to run out, and we're going to be where we are today. >> anybody else have a take on that? >> i tend to agree. i think if they could, they would have by now. i don't think they're going to. but there's an interesting

tie-in, isn't there, between cohen and these other folks that you've covered in this book. how does that tie together? >> yeah. the stunning thing to me was that this case started actually -- the stevie cohen case started in 2006. the feds, you know, picked up on some ims and e-mails between raj's kid brother who happened to also get him into trouble and they saw these ims and e-mails between them and dan schrager at s.a.c. and that's what led to, you know, the investigation today, really. >> you would think, too, with all the physical evidence, this case was known for phones, a lot of wiretaps, like very aggressive investigation. you would think if cohen was on any of that, that would have been in speculation. >> i mean, that's seven years. that is stunning. >> right. exactly. and i think, you know, there were efforts to entrap cohen in 2009, make recorded phone calls. he didn't take the bait.

>> if you're on wall street right now, should you expect all your phone lines to be tapped, not only by perhaps the nsa? >> i think it would be a wise step to think that way, yes, absolutely. >> final question. what's the ultimate goal in all of this? is he running for something? >> everybody says he's running for something. i don't think he's running for something. i think he wants to be a supreme court justice, but that position may be taken. he may be a little late for that. >> anita, the book, go out and get it, "the billionaire's apprentice." >> thank you. when we come back, it's monday. and if you're still a little sleepy, we understand. have no fear, though. we have a rapid-fire discussion to get you ready for the week ahead. the stories most likely to drive trading. first as we head to break, look at last week's "winners & losers." ♪ i want you ♪ i need you ♪ but there ain't no way ♪ i'm ever gonna love you ♪ now don't be sad

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good morning, everybody. welcome back to "squawk box" here on cnbc. i'm becky quick along with andrew ross sorkin. joe is out today. our next guest has a roundup of the to be markets stories. joining us now from new york is zach carabell. zach, thank you for being here

this morning. >> thanks, becky. >> so you are the edgy optimist. what should we be feeling edgily optimistic about right now based on everything we've been watching? >> i've now heard that phrase more in the past three minutes than i ever want to say it. first of all, i guess there's concern now about china data over the weekend. it's been generic concern. it's obviously the story that got buried with the whole nsa and spying, which is occupying our attention. i still think that china relationship between the united states as well as all this china information is likely to shape our lives more fundamentally in the next couple of years than these concerns about domestic privacy. that's probably a different discussion. but in terms of market land, you know, people tend to forget that a china that is slowing, right? let's say china slows slower than people expect. it's 7% by a headline gdp number. china will add more to global output than china adding 12% or

13% five or six years ago. that's something that gets lost in the fray because wall street focuses on the rate of change rather than the absolute base. but if you're company, what matters is how much sales you're going to do. so china still remains this kind of massive and growing force, particularly as a domestic market for all the companies that we talk about. >> i hadn't thought -- i had not thought about it, that at 12% to 13% growth, they're still bigger at 7% based on the law of ever-growing numbers. that's a really good point to make. but wealso paying a lot of attention to what's been happening in japan because that market has certainly been driving things here at least for the last several weeks. what they're doing is a whole scale -- we know what the federal reserve has done here. the japanese central bank is doing it to an even larger extent, and i think that's a huge experiment to this point. >> and again, so the bear case is clearly oh, great, this is just more central bank shenn an gaps. it's going to flood the world with cheap money and set ourselves up for that inevitable collapse that's coming but hasn't yet come, right?

that's a nonfalsifiable negative case. it's going to happen at some point in the future, indetermined exactly when, but brace yourselves. and obviously mark faber and rabini have been all over that viewpoint. the other viewpoint is japan's central bank finally woke up to the fact that 20 years of their quantitative easing hasn't moved the needle. and lo and behold, there's other things they can do as well as a political system that at least under abe is actually taking initiative. they had the monetary, but now they have the fiscal. we haven't talked about japan as a global force in the world for, you know, a long time. and it still is the third largest economy or the fourth if you make the european union one economic bloc. >> joe, you ran a piece over the weekend by a fellow who said that he wanted to put all of thigh money into yen. he wanted to put his mortgage into yen because he thinks this whole thing is going in a very wrong direction. >> even mark cuban has refinanced a bunch of his debt into yen. kyle bass has done the same

thing. it's kind of a pr stunt, but it's kind of a clever way to express being negative on the yen. if you think the yen is going to turn to toilet paper. >> do you remember a few years ago the supermodels -- who was it, gisele -- >> gisele. >> gisele wanted to be paid in euros, not in dollars. and that was saying, you know, this is a bad sign for the dollar. >> right. >> that was probably five years ago. >> and the financial crisis right afterwards. no, i do think that's an interesting way of expressing an idea. japan is really interesting in part because it's sort of we're getting into this big question of like the power monetary policy which is also a debate we're having here. we had the sequester and all these people were worried that fiscal consolidation was going to slam the economy. but so far that actually hasn't happened and people are saying maybe it's because the fed has, you know, the pedal to the floor. >> just in japan, it's become such a weird thing. there's a girl band in japan who sings about abenomics.

it was great. so it's become -- the sort of policy has become a deep cultural thing. you wonder when this volatility winds out and we can really look at japan again for what it produces, what the economy is. >> the data we get from japan, it's some of the most important economic data for generations, what policymakers can do. >> it resets. it resets v. china and v. the u.s. it's a power dynamic. >> i do have to say, with these mention of girl bands mark cuban and gisele bundchen, i've become progressively less edgily optimistic. >> i've become distracted. >> you bring up a great about greenspan. he made interesting points where he basically seemed like he came with the message to say he's worried about the idea of thinking that we have an eternity to kind of deal with this, that we have an endless amount of time and that it's not our decision necessarily that the bond market can change their mind at any point in time. you know, that was an interesting point.

>> did you think that he was worried about japan? we asked him the japan question. he seemed less worried, or at least he positioned it differently than he did about the situation here in the u.s. and i was trying to figure out the distinction. >> i think we do have more time. we don't have an eternity, obviously, but don't we cover the economy like baseball? it's a 162-game season. not every game is a tell on everything. and that's how we cover every number, every cough and spit. >> to clarify, i should point out that he said that he did not think it was a high probability that the bond market would rise up, but just that it's a probability -- >> we'll have it. we'll have the bond market react. we'll have stocks. we'll have that. and we have to look at the totality of it. >> one issue with regards to time, and it's not even necessarily with financial markets, but how much damage do you do to society by having massive unemployment for a long time in and europe is the prime example of this. where actually they've settled the bond markets down. that's no longer the core issue. but with 25 and higher youth unemployment, how long do you have before you do real

damage -- real damage to democracy in society? >> why are we talking about fed getting out of this policy right now when we have no inflation, no bond market reaction whatsoever? and we still have 7% unemployment? >> because some people have the view that the fed -- and greenspan touched on this, too -- that the fed's policy at some point is becoming counterproductive. >> that housing is counterproductive. >> it's allowing fiscal authorities to not have to step in and do their job in part. >> they are doing it. we've got a deficit that's half the size that it was a couple years ago. we've gone from a trillion to $600 billion. that's happening. deficit reduction is happening. and we have no reaction to the money easing yet. >> loose monetary policy enables the fed -- enables the government to consolidate fiscally while not destroying the economy in the short term. i think that's actually one of the stories of 2013. we've had the sequester. and the economy hasn't been hit the way people expected in part because the federal reserve has remained pretty easing. >> they're also edgily

optimistic. >> by the way, the fact that there's massive unemployment can also be seen as it will be a spur for its own kind of reform going forward. there was massive unemployment in the united states in the 1930s. and that led to a series of rather creative government programs. i know ones that are highly debatable today, when they were a good thing or a bad thing. but massive unemployment can lead to massive political change for the better. that's not a support for why it's a good thing. it's just saying that to assume that everything is lost because a generation or a part of a generation is struggling i think also ignores a lot of what history demonstrates, which is you can have a lot of change because of that. >> hey, zach, thank you for joining thus mojoin ing us this morning. coming up, we've got a company that wants to disrupt the beverage business. i actually drink this stuff all the time. you guys may get hooked. it's called think tea with an extra boost of caffeine next. and then in the next hour, the newsmaker of the morning, the ceo of 3m will join us in a

cnbc exclusive. we'll talk business, the economy and much, much more. ♪ 'cause you make me feel so right ♪ ♪ even if it's so wrong ♪ i wanna scream out loud ♪ boy, but i just bite my tongue ♪ ♪ this one's for the girls messin' with boys ♪ ♪ like he's the melody and she's background noise ♪ [ volume decreases ] thanks, mom! have fun! you too.

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welcome back to "squawk box." if you're like us, you probably understand the importance of caffeine in your morning routine. our next guest says he has a solution -- actually a natural one -- dan mccombee. and i found out about this stuff, i don't know -- >> two years ago. >> i started drinking it. becky doesn't like to drink coffee, really. >> i drink coffee.

i just don't like caffeine. i stopped. i don't want the headaches back again. >> this is sort of -- tell us, this is tea. >> extra caffeinated. all of our products are based on what we call a super leaf. we source it directly from farmers in the aftmazon. it gives what we call clean energy, a really focused, powerful feeling that doesn't give you a lot of down sides. >> this is not effectively tea? >> no, it's from a south american tree, actually. >> when you think about this industry, i notice here you have an iced coffee -- or an iced tea. i don't know what calling this. >> we're calling this our bottled beverage that we just launched. >> this is to compete against energy drinks. >> it's going right at that. >> what is your sense right now, one of the things that's happening, there's a big debate about the health issues related to red bull, monster, that kind of stuff. and where do you fit into that and whether you think ultimately this whole world gets regulated? >> that's a lot going on there. the first thing that we say is

that all of our products are based on one single functional natural ingredients. you look at the back of a lot of our competitors, there's 50 things in there you don't understand. and i think the biggest trend that i see is consumers want to know what they're putting in their body and they can trust it. this has been drank by farmers in the amazon for thousands of years. and there's a lot of history and feeling can you get just from consuming it directly. now, where the market's going, i think what people really want to know is they can trust what they're putting in their body. part the issue with our competitors, they don't live what's on there. they have weird serving sizes. we're clear that what's in one can is about as much as as a cup of coaffee, but it's a differen feeling and it's there for you throughout the day. >> i don't know what the one thing is. >> he did say it at the beginning. >> but i don't understand. >> they're all based on one leaf that's been drank by farmers. >> how do you find it? >> me and my business partner went down to south america and began working with these communities and built the supply

chain from the ground up. we worked with about 2,000 farmers. we've driven $120,000 of income with them to date. we buy the leaves, dry them, process them and then we manage the bottling and sales and distribution. >> you grow a lot, will you run out of leaves? is that possible? >> we're trying to think ahead. we just expanded our factory. added a bunch of new machinery. we're already planning to launch our new factory that will produce five times at much. >> what is your distribution? i know a lot of people with new drinks, and i think that's one of the trickiest things. >> that's what we spend most of our time stateside. right now we've been focusing on the natural channel up expanding through more mainstream grocery and delis. we're in whole foods, stop and shop, vitamin shop. >> every whole foods or some of them? >> about 70% of them. we should be national by next year. tons and tons of independent local stores. but our big focus as we grow the business is that bearish companies like ours do the most business through delis up and down the street foodservice.

and we're really rolling that out in the northeast. in boston, new york, down to d.c, you'll see us in tons of places. >> this is all you do, this one beverage? >> this is it. >> we have four different products all based on this super leaf. >> what's the ultimate goal? because i have heard a couple of big companies who have mentioned this. that i got back in touch with you because a guy i know who's a big beverage guy said have you heard about this thing called runa? which made me think that ultimately you are an acquisition target. >> what we like to say it we have main goal first and foremost, this is building the livelihoods and ecosystems of the farmers in the amazon. to do that we want to sell a lot of products. and that's our goal. and every product we sell drives those goals. and of course the thing is as many companies have done, you can't just build a distribution model from the ground up. that means partnering with a larger company that has all that already in place. >> will you need a deal like -- remember when honest tea sold itself to coca-cola? they created a deal where they run independently and could keep

that whole supply chain? but that was a big sticking point. and i remember that deal almost didn't happen as a result of that. >> and there's a lot of movement towards there. i think what you see is that these big. can companies recognize we are their future. they want to bring in the best of those companies and preserve what makes them good and solid. if we did a deal like that, that's how we'd do it. >> dan, thank you for coming in. >> you guys have a great day. when we come back, we are getting ready for our newsmaker of the morning. a rare interview with the ceo of 3m. up next, we'll have a look at the company's latest product innovations. and here's a hint for you. this isn't your grandfather's post-it note. it's a big hint. stick around. we'll be right back. has a lot going on in her life. wife, mother, marathoner. but one day it's just gonna be james and her. so as their financial advisor, i'm helping them look at their complete financial picture -- even the money they've invested elsewhere --

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increase by 175,000 jobs. the unemployment rate is 7.6%. >> why don't you give us the quick reaction. >> this is right in the range comfortable for both sides of the fed equation. >> is it good news, bad news? >> i think the fed is going to say, you know what, this is what we were looking for. >> we got the number we needed. >> we can get rates to be at say 2.01, we can have a very big rally. >> well dom back, everybody, the dow component 3m is about to embark in a big increase in r & d spending. our chief international corner is the in with a preview of the exclusive interview with the ceo, michelle ka rer ra. take it away. >> hey there, i'm in a customer innovation center for 3 emphin mexico city. when you walk around, it's gee wiz, wiz bank, for example, take

a look at this chair. i'm sitting in a chair as we open up the camera, this chair is actually taped to plexiglass. my feet are not touching the ground. it's held up with tape. it's not flew, it's tape. this is a part of their adhesive science. the weakest is the 3m post-it note. this can replace rivets in airplanes. you think this is impressive, erin, come on over. pretty strong, watch this, the chair does not fall. he is about 200-pounds. still, the chair held up with tape on the plexiclass if doesn't fall. they do these centers. they want to show products. not everybody can travel to minnesota. cnbc did. they got an exclusive look at the laboratory. take a look. >> 3m.

head quartered in california. it's far from the silicon buzz, but it's buzzing. a science team reenvents the oldest products, making post-it versatile and hint rollers hot. >> we helped to revitalize the category. >> of hint removers? >> exactly. >> 3m's dental division creates magic wansd, it instantly replicates your teeth. it makes crowns. i am wearing m thinsulate, the camera shows my body is still warm. over at the automotive garage this window without 3m's protective film. with their film currently, 3m spends 5% on research and development, now executives plan to enkrosse that a full percentage point, hitting 6% of

revenues in 2017, that's an additional dlrt 30 million in spending. the goal for the company to always be generating new products. right now, 34% come from products that didn't exist five years ago. by 2017, they want that number to reach 40%. means constantly reinventing even the oldest products. in the abrasives department, it's sandpaper on steroids. sandpaper is 3m's oldest product. sand is so passe. it is now replaced with teeny pieces offer is ram ache shaped like shark's teeth, speeds up polishing the metal. 3m's no veck coolant the computer is completely submerged in liquid. it acts like water, putting out fire, but evaporates enstantly. how about that no veck fluid, i'm going to drop my phone in later to make the woman if

charge of our phones crazy. it's really cool to make server's farms smaller. you don't have to get as much real estate, keeps everything cool. tune if about a half an hour with the exclusive of ing inge thulin. we haven't had a ceo of 3 m. in on in about sixers. >> i have to say i'm blown away by some of the stuff you showed us. obviously, if they're getting more than a third of their sales is coming from products that didn't exist five years ago. have they always been kings at r & d like this? that wasn't the first thing i started to think of when i think of 3m. i do think of the post-it note. >> right. exactly. back in 2008, 25% of the revenues came from products that didn't exist five years ago. but they really want to speed up that process, because we move so much faster in the world. right? everything does a. product can

become come mod advertised equally. commitization can pine death. they have a short cycle company. they're not building flames which you order years in advance. they're selling products that move quickly. somebody orders it, they expect it in 30 days. they have to be a faster paced company. that's why they're so focused on r. & d. >> thank you so much. we will see you in about a half an hour. >> i think we should tape all our chairs. coming up, the self-described leak behind the internet and under surveillance data, coming up at 7:30 even, we have the exclusive interview of the ceo from 3m. we have a big hour. stay tuned for it. t toujours ♪ ♪ me amour ♪ how about me? [ male announcer ] here's to a life less routine. ♪ and it's un, deux, trois, quatre ♪ ♪ give me some more of that [ male announcer ] the more connected, athletic,

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>> a self identified leak. >> this is the truth. >> a former cia worker says he is the nikkei rally. >> a rare interview with the dow component 3m, the innovation for jobs and the outlook for business. leave yourself posted. the second hour of "squawk box" begins right now. >> goor, welcome o"squawk box"

along with becky quick, joe has the day off. we are joined to be joined with a terrific pool of reporters. joe rosenthal. politicos ben white the man behind big money ready to tackle the big stories in the morning. we should say coming off the sec best gain of the year for the dow, take a look at the futures. right now, dow looks like it will open and s&p up over 3 points. let's get you through the morning headlines. apple is set to announce the annual world wide development conference today. it is expected to announce new versions of its ios and mac operating systems, a streaming radio service referred to as ira, not expected to announce new products. also in takeover news, business information provider ihs is buying rlpoke and company. they are behind the used car

service phone as carfax, google close to buying mapping app service weighs for $1.3 billion according to on israeli newspaper. facebook had been interested in buying weighs. >> we had a waze. we had an investor. also, president obama will nominate jason furman this afternoon to be chairman of his economic advisers. is set for just after 2:00 p.m. eastern time. furman is currently assistant to the president for economic policy. he will be replacing alan krueger returning to a teaching post at princeton university. the source for the nsa leagues, she a 49-year-old technical assistant for the central intelligence agency. edward snowden worked as an employee for various defense contractors. he was revealed yesterday in a taped interview with the u.s.

guardian newspaper. ceo eamon javers joins us. >> the big question a lot of people have around the world this morning is who is edward snowden, in the interview posted on "the guardian's" website you mentioned yesterday, he comes forward as a 49-year-old technical analyst and a private cia contracting firm. he was the man who leaked this series of devastating to the u.s. leaks last week revealing the extent of the u.s. spying on the internet and phone conversations of americans and abroad. the question is, though, who is edward snowden. why did he do it? "the guardian" newspaper interviewed him in hong kong. they asked him why he had fled to hong kong after making his series of revelations. here's the answer snowden gave to "the guardian" on an interview posted yesterday take

a look. >> hong kong has a strong free speech. mainland in china does have significant restrictions on free speech. but the hong kong, the people of hong kong have a long tradition of protesting in the streets, making sure views known. the internet is not filtered here, no more so than any other western government and i believe that the hong kong government is actually independent in relation to a lot of other leading western governments. >> now, obviously, snowden's choice of hong kong as a destination to flee to makes the situation a lot more xhiktd for the u.s. government. sould could that extradite snowdon't, how would the chinese government respond to those requests? those are questions we try to get answers to today, meanwhile, the u.s. intelligence community is reeling from the series of disclosers last week, remember, all of which happened in advance

of the meeting last week, a high level summit they were supposed to talk about cyber espionage. the united states said it was going to talk to the chinese and request they knock off theirs, instead, revelations the united states, itself, had been involved now the intelligence community reeling from those exposures. here is jay clapper talking about the extent of what is done. >> this is someone who for whatever reason violated the sacred trust for this country. the damage that these revelations incur are huge. >> also in question today is the role of private contracting firms. a lot of firms look today to figure out what kind of work their employees are doing. they are closely related to the u.s. intelligence community krth and a whole range of areas. here's a statement they put out from booz allen after they

acknowledged snowden was an employee of there's. they sent news reports this individual claimed to have leaked information is shocking and if accurate that action represents a grave veelgs of the code and conduct and coor values of our fimpl. we will work closely with our clients and their authorities in their investigation of this matter t. office of the director of national intelligence yesterday referred folks to the department of justice on this. we haven't haefrd from the government just yet. this is a fluid and fascinating compelling story that involves global intelligence entry. >> his choice of going to china the timing is unbelievable. we talked with beijing, our correspondent earlier this morning. she said people on the streets of beijing are talking about this as wow the u.s. is complaining about our espionage and meantime, look at what they have been doing this entire time. it really puts chosen in a difficult position having him

there. it shines a very strange spotlight on the entire situation between the two nations right now. >> and it raidss the question, again, going to the back of the top of the my xents, who is edward snowden, why did he do this? imagine if daniel elsberg, for example, showed up next week in the height of the cold war, that's kind of a similar situation as to what we are dealing with here. >> by the way, daniel elsberg the politico is reporting this morning he says he is impressed by snowden and would have done the same thing in his situation. >> as i recall, it was before my time, he never left the u.s. that adds a level of complexity to this ting that is really tricky. also with snowden having gone, according to time line in the memmen "guardian" snowden operated carefully with them a long time. snowden left for hong kong in ald vans of these disclosures, which would seem to imply, that

snowden was in hong kong at the time that president xi was here in the united states meeting with president obama and at the time of these revelations, it makes you wonder what the chinese government knew about his travels, his involvement in this. what the president of china knew at the time he was sitting down with the president of the united states. >> there was nothing to suggest that china knew anything before he revealed himself. >> no information to suggest that. at least according to "the guardian" story, he was on chinese soil at that point. at what point did his arrival there raise alarm bells as somebody closely connected with the u.s. intelligence community. whether or not their immigration department would have had the ability to detect his arrival. a lot of questions swirling around at this point. >> eamon, i think one question, obviously, that is sensitive swirling around this now is how hard can the administration go

after him now he has publicly identified himself, i assume as he's coming forward to portray himself as a sim pa thet ec figure to make it harder to go full court press, full extent of the law against him. what in your view to to you this i the administration is going to do? >> here's where snowden benefits from the timing of all of this. remember be every the revelations in the parngs the obama administration was forced to hold a series of high level meetings with american reporters and news organizations after a series of controversies about how aggressively they were pursuing leaks to reporters, whether or not they were going to prosecute employers for being involved in leaks of classified information. now after having being said they western going to prosecute reporters for doing their job. a major epic leave happens on their watch. they have to decide how aggressively to do this. can they extradite him from

china? how does the chinese government respond to that, if the united states can get its hands on edward snowden, what would they do to him in the face of these apparent, fairly incriminating comments on the website of "the guardian" yesterday, how they decide to handle that is going to be politically dicey. >> a timing question, glen greenwalt, a reporter from "the guardian" is now saying he started talking to snowden back in february. >> right. >> if that's true, that's before he ever got to booz allen hamilton. it suggested it might be right when he was leaving the nsa, did he leave the nsa on good terms, baaed terms? do we know what was going on there? >> i don't know that. the time line is very important. booz allen suggested in their statement yesterday he had worked for them about three months. you are right, that would seal to put his cooperation with the

"guardian bts before booz allen, was he working at another contractor ferm? sometimes it's hard to difference chayet who is a contractor. they are doing the same kind of work in many cases. i think people would be astonished to know the degree to which the u.s. intelligence community outsource things about intelligence collecting. so it's almost a game of nurngs whether he is working for a contractor or the u.s. government as an intelligence officer. the work is the same. was he working for dell, for example, another contracting firm that's been suggested that was an employer of-is? we have to get a comment from dell. the time line will be important to the reconstruct here. >> i read today more than 1.4 million people have top secret security cleempblts trying to keep a secret between two people. >> thank you very much. we appreciate it.

the nextp person steve wood the chief market strategist. are they miscalculating the end game for the fed or miscalculating of what will happen as a result of the defense? >> i don't think bernanke said anything by mistake. i think he's a careful man. they say how bond markets specifically would price. the thought of tapering. but i don't think that will be a high probability event. the inflation targets. the gdp targets. the unemployment targets the fed will be meeting in order to dial down significantly on qe are not going to happen by the end of the year. it could be the end of bernanke. i think they are mistiming the policy. >> you can understand, though, the nervousness when people start to think, okay, is he maybe signaling an end could be coming sometime soon, we may not know the exact timing for it, but i don't want to be the last

one trying to get out the door? >> sure, it was not terriblically attractive from a diversification standpoint, investors would need to look into risk assets globally diverse philadelphia to. but this backup in yields is kind of where we were expecting that 40 to 50% basis backup on yields. but from my reading, i think chairman bernanke kind of expanded his degrees of freedom. they could go up, go down. do they create a mix? so i think, if anything, they made themselves more data dependent. they increased their policy flexibility. what i think they don't want to do is date certain. qe1 and qe2 were date certain. i think the fed will be reluctant to be date certain. >> does that put us in a situation we do this taper, dance, tease from now until the end of the year. will we go through the last couple of weeks? last week it was the reaction to

the buzz. >> are we doing this every three months? >> i think so. i think they want investors to be guessing a little bit. they do want that policy. >> where does that move the liquidity in the in fact. >> bob: into stocks? on the sideline? >> it's very interesting, we're seeing ec with i think marks do well. within the equity markets, there is large cap space, russell 1,000, 2,000, there is a defensive do i nammic. the areas of equity have been defensive. almost like these bond replacement equities. so we haven't seen bonds being sold to fund equity investments. so that great rotation hasn't happened yet. money market funds are coming down a bit. means there is a little dry part perhaps in markets. >> but it worries you things could go up or down 5 or 7%. >> that's just japan this

morning. i think, you know, i spent last weekend in tokyo. this is amazing, aba economics. third arrow, the monetary and fiscal and social reform. the wild liquidity coming out of japan is astonishing. the americans are in qe. the british have imported a canadian who wants to start qe in an aggressive way if britain. really the only johnny come lately is in you're. the europe pine central bank is proposing that liquidity. >> are you talking about lick witty coming out of japan. >> coming into japan. >> are the investors eager to play their own rally or money being pushed down or yields pushed down and eager to invest overseas? >> i think it's both. i think japanese are locking into their own equity markets.

they've had a captive bond purchasing population for a generation. they want to make that less attractive, the bank of japan might look at buying equiequities as well, breathing a little spark into the japanese environment. >> steve, thank you. coming up squawk is called to session by john thune the nsa program, immigration, much, much more, no topic is off the table. man: how did i get here? dumb luck? or good decisions?

ones i've made. ones we've all made. about marriage. children. money. about tomorrow. here's to good decisions. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. ready to plan for your family's future? we'll help you get there.

. >> welcome back to "squawk box." john thune is president of the senator conference. thank you for joaning us this morning. >> good morning, how are you? >> i'm good, thank you. we will talk about this nsa i don't know if we will call eight scandal or a leak. what would happen to the self-described whiting blower in this case? >> i think you have to try, you do, you have to enforce the laws. this is somebody who appears at least leaked sensitive classified information. i think he needs to be prosecuted. i think that says so, i know this is a fast-moving story. i know there are a lot of moving parts to it. but i think it's really important we try to get him back to the united states and deal with this in a way i think gives people confidence we will enforce our laws in this

country. >> do you think the program itself, at least as reported, is appropriate? >> you know, i think, that's a good question you would ask that. i think a lot of members of congress we are finding out this last week the intelligence committee members knew about this, programs as some of the leadership. but most members of congress were not aware of how broad this thing was. i do think it probably suggests we need to have additional oversight. this needs to be reviewed, but, you know, clearly, there are as a result of the patriot act's passage, steps are being taken. we don't want to undermoney that, if these things are necessary to preventing harm to the american people, we have to proceed carefully in terms of changes we make. i do think there hasn't been enough oversight. that needs to change. i think both members of congress need to know what goes on, how it impacts things going on here. >> senator, have you been

privately brophied yet? >> i was in a brophying on thursday of this week. it was to the degree that this information was made available to us, i'm not sure that most members of congress, frankly, were aware of that. i'm sure it's true. i think there have been over the time since about 2005 opportunities for members of congress to drill down a little bit and find out exactly what's happening with regard to prison program, metadata, et cetera. i don't believe that most members of congress take advantage to find out more about how these programs are operating. >> senator, on that score, you know, last week, every kaim company kaim came out and denied involvement in the program. now that you have been briefed on it, who is el thing the truth? >> well, look, i think that a lot of the information that we're receiving right now. i was in a classified setting last week, so it's hard to talk a lot about it. that's why i think we have an issue here. i think we need to figure out

what can be declassified, what in terms of additional oversight we can do so that members of congress and the american public are more informed, respecting the fact that there are certain classified elements of tease programs that need to be preserved in order to progressive conservative americans. but i think, andrew, i'd be one, i'm sure i have a lot of colleagues here who would like to find out more about this program and its broad application, which is something i think most of us were aware thing were being done, programs not at the level they are. >> senator, if you find out more information and there are changes that you and your colleagues decide want to come to some of tease programs as a result of what you find out of this. do you still think snowden should be prosecuted to the full extent of the law, if you find out things that concern you and as a result changes come about. >> my view on that, becky is as follows, there may be things that come out in the course of

that that suggests that there were things perhaps going on that we would like to have known more about at the time. but i still believe that if you have laws, you got to enforce the laws. the only thing, that's what our country is about. it's about the rule of law. >> it's a little of a catch 22, though. >> well, look, i mean, i think that, we don't know exactly because the facts are still coming out on this. if there is information that is leaked that puts americans in harm, that's a very, very serious thing and, obviously, this is somebody who has access to a lot of vafd information. i think it will raise the question about whether intelligence contractors, the information they have access to. there are a lot of things about this story, this reds to it that threads to it that are still unfolding. >> thank you for joining us, come back as the story unfolds. >> thank you. when we return the ceo of 3m talks economy the consumer and business conditions. it's a rare interview.

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welcome book to "squawk box" in our headlines, gasoline prices slipping slightly. the average price of unleaded regular down a little less than 2 cents just under $3.64 per gallon. however, regional swings were significant in big drops of the west, sizable increases in some of the mid-western region, an irs manager telling congressional investigators he

and a colleague made the decision to target conserve conservative groups. it comes from elijah cumming, a ranking member of the house oversight committee. he described himself as a conservative republican. also, horror movie "the purge" topped the box office with tick sales of $36.4 million. did you not see that? >> not this weekend. >> the movie, you should be seeing it. it is a comcast owned, universal, cost just under $3 million to make. the weekend performance are exceeding expectations. our chief international correspondent is in mexico city this morning, michelle caruso-cabrera brings us a rare interview with the owner of 3m. >> hey, thanks so much, i'm sitting here with inge thulin. thanks for doing this. why are we in mexico city?

what is this customer innovation center. why does it exist? >> first of all, why we are here, mexico is an important marketplace. it is big. we are as a big company a $30 billion and latin america stands for 8% of that revenue. of that 8%, 21% is mexico. we have been here for a long time. in fact, 65 years in mexico, i have built a very good infrastructure on the market. we are today in a customer technical center here that we have 50 all around the world. so what you see here today this morning is one of almost 50 work. >> what do you do with this place? this is for what? >> this is in order for us, customers come in, use the process, customer enspyder innovation. that's in the beginning of the process for us in order to develop new products and new solutions and as you know that

innovation or research and development is in the middle of our plan. it's very, very important. >> so we see a laboratory behind you, there is labs all over the place. this isn't, you are not bringing in people. they're actually working with your scientists here? >> that's where the whole process started for us. now, coming ba back to mexico and latin america, we have had a very god performance. so 80% of all sales in america over the years, we have outperformed the economy big time. >> i am surprised to hear you talk so much about latin america, because the whole world talks about china as the future where growth is. we got data that says maybe china is slowing. why do you sound so much focused on it, a, and, b, are you concerned about coin? >> i am not concerned about china. there is equal opportunities for

us in both places. we have been in china since 1984 as a wholly owned sub subsidiary. we have been in latin america since 1946. in brazil, since 1946, that's amazing because that's the real strings, the platform and geographic springs. you look at the performance, it was in latin america, although over the last many years, one way that we measure our performance is versus industrial production index and the company in total is growing 1.5 to 2 x. >> industrial growth rate. >> absolutely. in latin america over the years, we have been growing almost five times industrial production index. so we have done it very well by coming in early and been very strong team in all countries. so it's not only mexico and brazil, it's broad-businessed for us. >> when you took over last year, one of the first things you

decided was that spending on r & d, now you are moving to 6% of revenues which works out to roughly $30 billion a year on r & d. >> we move it from 5.5 close toer co 6. >> why and what is that money for? what will it do for you? >> why, innovation is the center of the plan. i am a strong beliefer that search and development was a dry return for investors. that's when you difference chayet to difference chayet your competition. now we classify products in three different classes. a class 3 is something that we replace ourselves. so, basically -- >> purposely do that. >> of course. we have to do that in order for the no one else to do it. it's a very important piece of our business model. class 4 is where we introduce new products to current channels of customers. then class 5 is disruptive

technology, meaning new technologies to new models. is with the additional of investment will go. so this is an incredible investment for us for the long term for 3m. so very, very important. >> everybody foes the story of the mouse being envented at xerox park. steve jobs sees it. he's the guy who monetizes that technology. can you articulate, how is it that you got all this laboratory work going the biggest challenge may be going from the lab to the store shelf. how do you do that? >> well, as i said earlier, we have two front end processes, one is consumer insights that is used mostly on the consumer sight. the other one is customer inspired innovation. nothing stopped book in the laboratory. everything is stopped with customers in order to move the process back to us. that was also why we aligned the organization last year when we

earlier had six big businesses, now we have five business groups. so we are very broad in terms of businesses and we can work with individual customers and markets on a global base in order to capture it. >> earnings last quarter, you got it lower for the year. >> right. >> the issues that you saw then, are they getting better, are they getting worse? >> well, first of all, it was not the miss. we don't give genes. we had a very slow ferc. four of our five business groups showed local currency and four of the five business groups have operating income above 20%. so it was a very sluggish forecast. >> so you missed consensus. >> consensus was missed. we don't give it quarterly guidance. what happened was the consumer electric eeelectronics part was a little slower. we knew as we went into the year, that the first half of the

year will be tougher and slower and it worked out in that way. so i think the first part of the year will be slower. the second part accelerating. >> you think that's improving? >> yeah, we think so. it's announced we will improve. we saw early signs for it to happen. still the first half of the year will be as we have estimated as we brought in the plan for the year, which was a very cautious plan. >> the world economy right now? where do you see strengths? where do you see weaknesses? you can see so many parts of the world. >> first of all, we start in the occupation. we have loss growth in the first quarter. we continue to see growth and we estimate 2 to 5% growth in the u.s. each year. the u.s. is an important market for is. we are very strong u.s., strong brand equity. we have our research and development capabilitys there, government affecting capabilitys. we should be able to take more

market share in the future. latin america as we talked earlier, they will also see central east europe, growth are driven by russia and poland and middle east africa, you see broad based growth. >> western europe? >> western europe i would say stabilized on a lower level. we do not see any strengthening. we don't see weakness either coming. so i think investors have to wait and see when the growth is coming. our plan for the year is-1 plus 3%ment i think in western europe when you look upon indicators, it's on registrations of new costs. you can see they have been done for many, many quarters. so i think it's a challenge. now i will say about west europe which is important, it's 25% of the world's gdp. it's a lot of innovation going on. it's a lot of big global customers in west europe and one

of the thing that we are good at 3m is to serve those global customers wherever they are in the world. >> hold that thought. we will take a quick brake. you can stay with us for a minute. guys will be coming back. becky, andrew. >> thank you, michelle. we will hear more about it after the break. in the meantime, take a quick look at the equity futures. we are looking back in just a moment. families are coming together to play, stay active, and enjoy the outdoors. and for the last four summers, coca-cola has asked america to choose its favorite park through our coca-cola parks contest. winning parks can receive a grant of up to $100,000. part of our goal to inspire more than three million people to rediscover the joy of being active this summer. see the difference all of us can make... together. how old is the oldest person you've known?

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>> let's get back to michelle who has more of her exclusive interview with the ceo of 3m. michelle. >> thanks very much, inge thulin is sitting here with us at the customer innovation center. we were talking where you see weakness in the world. asia and china, what do you see when it comes to sales in china? >> we saw a little slow this morning. for us we had 10% growth first quarter coming another 10% growth in the 4th quarter of last year. so we see a combination around that level of growth. for us, our portfolio has been very much concentrated around

manufacturing and electronic and energy. we are now building out no consumer and the health care and safety. so i will not say it's a shift in the economy. it's morphocuss on consumer goodz goods and domestic businesses, for us, the way we build our businesses is often in the way that the evolution is going in developing countries, starting with infrastructure, going to manufacturing, after that, safety is improving. and retail and in the end health care is coming. when you look at our portfolio in terms of the five business groups, this is absolutely perfect for us in terms of being able capitalize on the growth coming in china as they build out the domestic business, they will continue in the export and manufacturing activities, but they are building out at the same time what they are doing in domestic and consumer. >> i want to read to you something from an analyst report.

barclays. they said we could get more aggressive on the company if they find the right balance between growth and profit pass through or get more aggressive with balance sheet utilization. some people feel that you're too conservative as a company when it comes to all the cash you have. you should be doing more with it. >> we have a very strong balance sheet. i can tell you that is a good position to come in, particularly as a new ceo. that's an important element to make sure that is well understood, our prime strategy is organic growth. so we are talking now allocation of capital as the prime driver for us is organic growth. secondly, we go through complementary acquisitions. thirdly, after that we have obligation in terms of pension we take now. ten we have dividend. 3m has 55 years conservative

paid out dividends. this year again, we climb 8%. so that is down the question, is that is a very strong balance sheet. >> you like it that way. those who want you to be more agretsive eowe aggressive. >> we can listen to what they are saying. i think this is the path. >> becky, you have a question? >> i do. mr. thulin. i know you mentioned acquisition as a part of the strategy, but last year, you were planning on buying office products from javery dennison, is it difficult to make acquisitions considering what a giant you are? >> no, it's not. in that case, it was more difficult for us based on the position both for us and for the company we are talking about. but it's not. our plan is to spend 1 to 2

billion on on annual base of acquisitions and we are laying that plan out and we have a good hopper, which is broad-based for all the five business groups in terms of where we would like to go for the future. so it's not an issue as it came in that specific one that you are talking about. >> ininge, it's andrew here. a age where business is focus, people say companies sometimes have too many products. i think of 3m. you have a lot of products. is there a rule for being in a certain product like ge, do you say to yourself, i have to be if one or two? are there a lot of things that get turned down? how do you think about that? >> yeah. we constantly look upon the portfolio. we have over 50,000 products in the pipeline that we are eselling. so that's a constant

revitalization of the product lean. that's coming back to these projects or a program mpvi, new product by teleindex. which is measuring products that are introduced the last five years. for us is 33% as we speak. so you think about what we sell today, 33% of that did not exist in our portfolio five years ago. at the same time, many products have been retired in that process and that's ongoing in our 35 divisions where we have something called product steering committees constantly look upon it. as i talked about earlier, this class 3 where you place yourself is an important element for us in order to move that program forward. you ned to be relevant. you need category you play in. that's why we have a broad portfolio in every business we open. >> how important -- >> you even innovate sandpaper.

go ahead, andrew. >> please, please, go ahead. >> you innovate even post--it note itself and sandpaper. does it frustrate you at all that 3m is so close to the post-it notes when have you so many other things? >> no, it is not the frustration w. ehave some icon brand, posted, scorched, filtrete, ace, et cetera. those are the ones you see on a daily base. that's fantastic for us. then we do all these other things which is invisible for you. we help other companies to improve the productivity and all 3m products. can be everything from airplanes,et set remarks i think it's not a frustration. it actually is strength for us we are able to do the both. >> what's your one product win walk around the lab, you go,

wow, that's so cool? >> it's the one we make money on, plus, it's categories, we are able make in market itself and capitalize on that, so i think it's very easy to think about the product of product lean. but i think you have to think on it broad in terms of the solution, we can provide into customers with multiple solutions on multiple platforms. you go in consumer electronics, aerospace, automotive, there we have multiple products on the platforms we introduce. is for me exciting. then we are relevant to our customers and they trust us in order for us to help them with the innovation for the future. >> mr. thulp, thank you so much for joining us here in mexico city. >> it was a pleasure to be here. >> becky, andrew, back to you. >> michelle, thank you for that interview, inge, interesting stuff. when we return, we will have much more to come from our reporter roundtable.

plus your list of stocks to watch ahead of the opening bell. and football fans may remember phil mikake, the receiver that helped the jeents win super bowl xi. he will joins us at 8:45 a.m. eastern. . oh, he's a fighter alright.

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let's take a look at stocks to watch this morning. the irish drug company says the offer still undervalues elan. they are now evaluating inquirys from interested parties, whoever that may be. google is looking at start-up ways for $1.3 billion. this is according to on the israeli financial paper qualified "globes." wasn't that wrong about the pepsi? >> oh, that was a different story. >> it was globes, too, i thought, i'm pretty sure it was the same one. the pepsico one was not true. anyway, you are looking at this, weeb e people are expecting that google is interested in waze for a month. facebook is said to be in talk.

>> you are correct, it is globe's. >> for all you eagle eye viewers, you were right. we were wrong with our aflac, red kelly is the correct guy. he won eight stanley cups. that was more than any other player whoever played for the montreal canadians. we put four up. it was eight wins there nobody knows him. >> i read all about him on wikipedia. he played one season with a broken ankle. >> and wooden skates. >> he did play one season with a broken ankle. when the reporter was asking him why were you so touch and go, i don't know, it could have been the ankle. the coach got mad and traded him. they tried to keep eight secret that whole time. >> that's impressive. what we heard this morning, we are watching the marks now. there are some green arrows. they're moddet advances. it seems like the market seems

to be almost wait and see after the strong market reaction after. that i don't know what the next issue is. >> ecome report, now, hopefully, this week we have ppi, consumer sentiment. a few other indicators, watching enflation. now this is going to become this cycle i think. >> there is this question whether we hit the best on job creation. everybody is looking at the second quarter as not as good as the first. it will continue. so it will juice the market from here on out, i don't know. >> i think we should watch a little of the economic data coming out of europe. france had a god production number. spanish pmi was strong. green shoots is a phrase people hate. i am night. i think you are kind of seek signs. greece is bottoming out, too. >> we will continue this conversation when we come back. we will talk about friday another better-than-expected

employment report. we're going to ask jim paul isn't why he thinks rage bound will be the story for the second half of the year. "squawk box" will be right back. you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week.

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friday's jobs number. it was the second best day for the dow this 84. jim paulsen will tell us why fears of fed tapering are overblown. apple fans waiting for fuse about the company's latest products and software. ceo tim cook will kick off the apple conference this afternoon. we will get a live report. it's monday, june 10th, 2013 t. third hour of "squawk box" begins right now. [ music playing ] welcome back to "squawk box" on cnbc. i'm beck qui quick with andrew stork and our guest hosts are ben white the chief economic correspondent at politico. joe rosenthal and executive editor, reuter's dan coloris so. check this out. the dow component is out with

better tan expected sales. we are talking global coms up 2.6% for the month of may. they were looking for 1.7%, up in the free market. mcdonald's trading right at $100, $99.94. they talk through some of the numbers on this, the numbers for the u.s. were better-than-expected. obviously, that's a big driver. u.s. komps were up by 2.4% t. street had been looking for a begin of 1.9% in the u.s. in europe the komps were better than expected. up%. it was kwais asia and africa weaker. versus an estimate up 1.3%. guys, you talk about innovation. you may laugh for a place like mcdonald's. that's really what tends to drive a lot of their comps. they did talk about their breakfast the egg white sandwich

and premium mcwraps. that helped drive sales in the u.s. >> if you are as big as mcdonald's, what else will you do to grow? >> you can only sell so many big mac's. >> it's the competition, if subway, ungo to mcdonald's, get a wrap. >> it's an egg white. >> some of us will do breakfast all day. >> we will be a total game changer. would you go into the afternoon for an egg mcmust have been? >> i like breakfast all the day. >> i thought you had to race to get there by 11:00, why? >> apparently, there is not enough room to cook everything. >> for the bacon go i read a report about this last week. you need enough space to cook everything. >> you think a giant like mcdonald could have solved that. >> bigger griddles. >> we have some other stories to catch up on this morning t. big one, google, close to buying

mapping app service waze, for $1.3 million. we know that "globe's" missed a story last week. facebook reported to be interested in buying waze. the question is whether google is doing this defensively since they have the best app service out there right now. >> or an apple. also, president obama is going to be nominating jason furman this afternoon to become chairman of his council of economic advisers. the event is set for 2:00 p.m. eastern time. furman is sustain to the the president. he will replace alan krueger who is returning to a teaching post at princeton, university. >> let's get a check on the markets. this morning, u.s. equities futures, we're seek green arrow, the dow is up 17 points above fair value. s&p just over 2.

overseas in acia you did see a huge gain the nikkei was up almost 5%. again, we have been watching a lot of volatility in this mark. it closed at 13,514 n. europe, we seen similar things with the futures this morning. barely budging from the footsy or the kakt.dax is up a gain of close to 1%. >> if you are an apple shareholder, today is the day you have been waiting for, apple ceo tim cook will be kicking off the development conference there later today. john joins us with more >> good morning, andrew, mcdonald's not the only global multi-national trying to use innovation to power growth, how is that for a segue, apple here at wwdc looking to unveil ios. ios 7, the beeners are up in there. there is a line around the block already. also a new version of os 10, ios is the real important within here. the big theme here is i think

the foundations of apple's success, itunes, music, movies the retail strategy, not necessarily going to power growth going forward because it's coming from emerging markets. largely, smart phones are getting to a point of saturation in developed markets like the u.s. it will be interesting what apple has to say around services and other things to keep growth going for the future. take a look at apple vs. goggle. google had its developer conference in this same building a few weeks ago. goggle performing better than apple has. google strength has been in services. some people are guessing apple is moving. google announcing new streamingselves at google io here. we are wondering whether we will hear more from ira from apple. really, one of the most important people we will see not just tim cook, johnny eye. he has been in charge of apple's physical products.

also the look an feel of apple software products, stepping into the shoes that steve jobs used to fill with more of a broad look across, apple's strategy, we'll see hoy that shifts, even more of a position of influence. you know, people will probably judge this by how much beyond the look and feel change we get. whether this really is a fundamental shift in the way iowa works. whether there are new services that will power growth, maybe an advantage versus android, whether there is any hint towards the foundations laid for a tv or low cost iphone. we'll be listening for all those things when the key note kicks off at 10ament a.m. pacific. >> thank you for that. we, of course, will be watching very closely as will most apple shareholders, beven white and joe weisenthal. dan, it your sense we will hear

something, see something that is going to amade? >> i don't think it will amaze. everybody is looking for that next big thing from apple. >> a good thing? how can it be a good thing? >> it's a good thing in this. you look at samsung you look at what happened to that stock in the past few weeks, volume is the new margin in this business. a narrowing gap between a smart phone. they are focusing on that more than the next expensive piece of hardware, with radio, google making the move on waze. that's a seen tease guys realize the hardware is starting to become more commodity advertise kommoditized. >> some people are waiting for the federal government big hit. >> for the moment. >> people have been talking about the tv forever and it doesn't seem like that's

imminent. the launch is not going to get people excited. i think dan makes a good point the building on the ecosystem, the software is a big dealment this is actually going to be a pretty big change from the software and they node to change the way they think about it. it's not going to get investors totally excited. >> why not breckenridge? isn't apple doing the smart thing? aren't they bridging? waiting for the next big thing? >> is it a bridge to nowhere, that's the question. >> ultimately, they will need, like they can't not release something. >> what is the risk that they change the software and have what i describe as a windows 8 moment, they change it fundamentally. it looks different. people say, it's -- >> apple is not microsoft. they tend to do them more singlesly and better. i can't imagine them doing it in a way that shocks their customers. >> i think people feeling like they could switch. i used to listen to my music on

itunes. i never could feel comfortable. now i think i can switch to an android. >> i think there are some issues that apple has to be worried about, okay, i'm finally ready to let go of. >> right. >> they're trying to get back into that. >> if you look at pandora, pandora got crushed since the apple news. if you look at the earnings before that, you saw that last earnings report, they had a huge uptick in growth. you saw the stock line. i think apple is acknowledging that, more than worried about us waiting for an apple tv. although, i am waiting for an apple tv. we have not talked about a curvebull for you, sir, cory booker. we haven't talked about it all morning. we have over the weekend. your sense, mr. walk. >> my sense of whether he can win? he can definitely when. i think what is challenging for him, he said he can serve out his full term.

they couldn't do that, obviously, session change. we took heat for that, for not serving out his full term. he's a powerful, political player. he has bill bradley behind him. he's very charismatic on twitter all the time. >> i think i might have done that. no offense, mr. booker. i think he's got a very bright future. >> can he lose? >> he can conceivably lose. i think he's the odds on favorite. democrats have to be the favorite. republicans have won in that state. chris christie is popular. it's not like can't be a front reasoner in new jersey. >> does the possibility of him getting on a 2016 ticket affect how the party positions him this time around? >> good question. i don't know necessarily he is in line for a spot on the ticket in 2016. it's possible. he's got to when a state wide election probably before we start talking about the booker

ticket or the bodien ticket. >> do you think there will be, right now, i don't think there hasn't been that much examination of how he has actually done as the mayor of newark. so this election will likely be the first time. i know there have been stories. >> you already see republican oertives talking about, you know, has he done any miracles in new york? are the numbers better? people out of poverty. all that stuff. will get heavily aired. i think he will have a defense for it. >> a financial crisis. >> watch, there will be a lot of business behind him. i think you will see a lot of donations in terms of fundraising. >> he got into trouble over that when he made that defense of equity. he had, don't go after them. these are my friend. there was a lot of that re-airing of the cory booker. >> this morning, you write obama and xi the leader of china making nice but any progress? the suggestion is not much.

>> i don't think so. not to say having a collegial meeting where they get to know each other, he's the new leader of chosen is not important. they took tear jackets off, walked around in the desert. it made some god video and pictures. if terms of making progress on cyber sfaj, there wasn't any of. that the chinese are aggressively going off our technologies, we have done nothing to stop them. this is a photo-om. in terms of policy issue, there will be none. >> there will be a sejd date. >> they like to talk and hang out. these things the obviously take you so far. >> thank you, gentleman, are you not goingier. you can continue this conversation. coming up, we will talk markets with jim paulsen, he is not ready to panic yet. still to come, we got nfl fans who will be recognizing this man bill mikaki. what is wrong with me this

morning? i got it right the first time. phil mckonki. see i told you i skrooi screwed it up. he is helping war veterans find jobs on wall street. he will join us in the next half hour as we head to a break, check out the "squawk box" market indicator. [ female announcer ] there's one thing

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>> welcome back to "squawk box" dow futures up by less than 7 points. s&p futures up by less than half a.. our next guest called the run-up in equities. he thinks the markets may have seen just about all of tear gains for the year. joining us right now is jim paulsen, chief investment strategist at wells capitalist in minneapolis mims. jim, you said you were concerned. i sat up and took notice. this is the first time you come and said you are less optimistic than you have been in the past. that's not to mark off the long bull market run. are you concerned it has seen the gains it will see for the rest of this year, correct? >> i don't see a thing that will end this bull market. i do think the market will digest a number of things the rest of the year. we had a huge run in october i

think it will take time to digest. with egot a 2.5, 3-point game in the pricele multiples. we have to digest. i think the biggest thing, we are starting to digest is a reevaluation of bond yields. i think that will continue. finally, we have to digest i think a tapering of minimum and the end of qe during the rest of this year. i don't really expect, you know, for there to be a huge correction, but i do think we're just going to mark some time and trend sideways and i think it's a good opportunity for those that aren't sufficiently in this stock market to take periods of weakness over the next several months to add to positions. for those that are, to take advantage of, you know, significant changes in relative sector performances and as a market runs up to 1,700, you know, get a little more cautious. if it's down around 1,600, i

think it's okay to commit capital. >> when you say take advantage of periods of weakness, would that be when the market drops 2 or 300 points, or are you looking for a dig i bigger drop than that to dispel weakness? >> if it drops more than that, that will be a bigger weakness i'm looking for. >> i manet the dow, not the s&p. >> okay. in the dow, i think that will be fine. i think a couple things to keep track of. i think, i don't know picket ranges is tough. somewhere around the 1,600 level i think it would be okay to commit capital. i think we will find ourselves up 1,700 at different times the rest of this year as well. if we're around the 1,700 level, i'd be a little more cautious about committing capital unless you are just woefully underallocated as i still believe, becky, next year, we will resume this bull and make another run. i think this is a temporary

pause, a correction by time time if you will. >> bits ben white. it's good to see you live. i wonder, how worried you are about sort of washington's impact on the economy and markets the rest of this year. we still got a debt ceiling. we got a raise, a sequester, fiscal drag. how much does that play into your outlook for stocks for the rest of the year? >> not as much as you think. i think that has been a misdirector throughout. not just the fiscal cliff the last four years or more, people have avoided the stockmarket because of perceived fiscal woes that are overwhelming. i think blasse fairre adam smith is takic care othat. we had the end of the '08 recession it's now maybe 5.5%. it's melting away by about 1% per year, government hasn't done. that it's been a slow revitalization of economic

growth which is raise tax receipts faster than people appreciated and lower welfare outlays. i think that will continue. i wouldn't worry about the deficit so much. it's going to be there. it's going to be problematic. we will occasionally have volatility in the market from debt ceiling deadlines and the like. i think it's better to keep your eyes on other fundamental forces than. jim, how are we doing? we saw a tonne of money go into bifd dividend stocks in the past six, eight months, how do you feel, is it a good way to stay in the game if you are worried about uncertainty or is it off the table because of yields? >> yeah. i guess i lean towards the latter a little bit. i think what we really haven't had in this entire bull run of the last four years is real pain introduced into the bond market. we've had some brief period of rate hikes. we've not really had real pain. i think we will see that here. we're starting to already.

i think we will see it the rest of this 84, the ten-year yield ends up closer to 3% than 2. if it does that, you really create not just underperformance by bond holders, real losses. i think that changed the investor mindset if you will and not only will people reevaluate do they have too much in bonds, but i think it will show up in a different relevant performance in the stockmarket and i think one of the big culprits at risk would be bond-like stocks, which have high dividend payers, not just utility stocks, which we're seeing getting hammered as the bond yields have moved up the last month. i think at the center, it might be the dividend aristocrats that can get pretty hard. >> what sectors do you think become the sectors that rotate into? are you talking technology? >> well, one of the things, becky, i'm looking for is a possibility. i think the dollar is going to weaken in the second half of the year. will surprise, i think, most of

it happens, and if it does come down, then i think it revitalizes the manufacturing sector, which is the missing link. we got consumer, housing. manufacturing is down. i think that might revive a bit in the second half, industrial materials is my favorite sector play. large cap. i think even though they've done remarkr remarkably well, i think financials will continue to have a god year. >> jim, thank you very much. >> thanks for having me. >> we will see you again soon. when we come back, a surprise winner at the box office this weekend. we'll tell you how the purge shattered expectations. still ahead, we have more on events and data points to move the markets. "squawk box will be right back. what?

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. >> welcome back to "squawk box" the suspense thriller "the purge" took the no. 1 spot at the box office. it was nearly double estimates and, by the way "the purge" costs just $3 million to make. the internship, the google promoting comedy starring owen wilson an vince vaughan, it

debuted if 4th place $18 million and came in behind "fast and furious 6" and the magician movie, now you see me. we have a trip to the futures pits in chicago. for more on what traders are watching. right now as we head to the break. take a look at the u.s. equity futures. barely budging, do you futures less than a point above, s&p futures, fax futures down just slightly "squawk box" will be right back ♪ (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company."

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. welcome back to ""squawk box" this morning. let's take a look at stocks to watch. mcdonald's same store sales rising, it beat analyst estimates. the chain had better than expected performance in the u.s. and european region, only the so-called, it's basically the middle east, right? apnea, asian pacific middle east region registered a shortfall. also, monsanto saying it is

a good value in part because it has been overly punished for disappointing third quarter announcements. facebook people saying the number of upside catalysts currently being ig ford include facebook's entrance into the s&p 500 and monetization of insta-gram. we do have green arrows. they are marginal. rick santelli is joining us from chicago. first, steve reeseman joins us with gdp numbers. >> here's, a lot of first quarter growth and second quarter. we will look at the numbers here. i will tell you, they are a little polluted by one forecasting. we take seven or eight over the weekend. >> strong language. >> skewed would be a better word? okay. skewed. sorry. the guy that i will say polluted it which i didn't say, 2.3,

remember they reported 2.4 first quarter gdp, it's now down 2.3. a lot of guys in the 2.2% in the first quarter. second quarter is 1.9. we have our friend, drew matis from ubs at 2.9%. you take that out. it looks like the mean is more like 1.5%. drew stuck with this all the way through. he's a god economist, a god guy, a friend of "squawk box," we give him a little deference there. then you see the trend is strengthening with the third quarter and fourth quarter. i want to show you our flash poll, beginning tapering january, 2014 on wednesday, it was to have, the jobs number pushed it ahead a little bit. a lot of noise in the data. first response was 24%, december 20 thrown, that's where i think the average is, the general mind of the market is. the second most popular

reresponsibilities 2014 in january. 14%. now, quickly, the end of quantitative eadsing, august, 2014. pushed ahead by a month. with post-people, 2015 and later. this bothers me, guys. it bothers me because we have gotten a lot of criticism about the fed's strategy. when i see the market with a wide dispersian, it tells me the fed is not communicating. it's one thing for the market to have it wrong or have a certain feeling, data comes along and changes that. this big distribution. >> you give yourself room to move. >> the fed is a long single driver in the market now. >> that's true. here's the thing. if everybody is on the same page of what we call the reaction function, the way the feds processes incoming data, where the feds want to be. you should have people in blocks. the data comes in. i understand how the fed

processes this, i move from january to here, i don't disperse over a wider series of dates. i am tapering, ending qe, morgan out with some stuff about the xhoun indication strategy, kind of falling apart, which i think it was really god up until the last month or so. >> i don't understand what they do differently, how would they communicate more clearly within they will do it. >> here's my issue is that the interest rate goins is obvious. 6.5%. the qe goins is not. it's substantial improvements in labor markets. i have been boating this drum a long time, substantial compared to what? improvement compared to when? we foe there is a debate on the fed, some saying it is substantial, in september. at which point we had substantial improvement. 90,000 job growth within we started. we are up near 105, what is not substantial? other goes say, you know what,

my goal is to get down to 5.2 to 5.5% unemployment. i have a long way to go. just a couple quick comments, j.p. morgan, the asset purchasing is still a close call between december and a slight nod to december. ian shepp perd, the clear near-term risk is of a further slowing, the fed will not, therefore, taper its asset purchase over the summer. rick, you have to have a million things to say about this. nothing of them good, good morning, by the way. >> if you are cover tag end of it, i think you did a more than adequate job. >> thank you. >> did you see the movie from a looney bin to go to a baseball game? that's kind of what it reminded me of. the interest rates have moved up. they are currently around the highest levels since april of last year. our current high yield closes

around 216, 217, we're at 218. what is fascinateing is that if you are looking at the impact of japan or how their new programs or economics can affect the global quantitative easing or managed interest rates or major markets. they had major reversals overnight. this is something for the mark watchers to pay attention to. a nice move in the nikkei without a move in the jgbs, so i think we have to definitely observe this because if japan can kind of get everything to much along, along with europe and the u.s., it will make timing very difficult for those that are looking for their next big wave in interest rates. >> i was going to ask them. what's your sense in terms of what's the mood on the floor in terms of when the tapering happens. >> you know, most people on the trading floors have the same argument steve does, but i guess se end of the exercise, they're

honest about the idea, trying to handicap when something's going to end when the people that are in charge of the program i am sure can't till you precisely, because they don't precisely know. it becomes a game of trading the marks more than a game of trying to handicap the academics at the federal reserve. >> just to be clear, there are two bits of uncertainty, one of which you will never do away with. the other which you can't. nobody knows when the data is going to turn. nobody knows what tomorrow's data will be unless you believe the report by eamon javers. the issue is you can't do away with uncertainty, can you do away to an extent is the fda fed's reaction to the data. i can game out a better jobs report leading to x change in tapering. that's where you have a bit of uncertainty.

i wanted to throw it to rick real quick, when it comes to the rise in interest rights, tow what extent is this a qe reaction? in other words, less qe expected? how do you handicap that? >> i would think it's probably about a 50-50. if i kind of mulch everything into one hopper, i would say 50-50 is what i'm getting from sources. it kind of matches my own opinion of the marketplace. the real ssh is, when you -- issue is, when you manage something, you compress its reactions. even the 50-50, for managed rates might be a little more explosive at some point depending on how it ravels or doesn't unravel with regard to japan. if you saw a ten-year jgb in a quarter, the issue would be like several last week when the market statistics rained supreme. that's what the people down here

try to trade on the control of the marketplace. >> i have to make one small point which inflation has come down. to the extent interest rates are rising, it's less term premium growth. it's not an inflation thing. it's govern the other way. >> rick, thank you, guys. i'm sewer we will be talking to you all week. when we come back, he is best remembered for helping the giants win super bowl xi. now, he is connecting military vets with wall street jobs. that's right, steve. he will join us right after this wait until you hear what else he has been up to. "squawk box" will be right back. hey kevin...still eating chalk for heartburn?

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. from the end zone to the board room, that's the path of our next guest. joining us is former super bowl winner and side receiver phil mcconky. the broker staff is staffed by post-military 9/11 veterans, thank you for being here. >> becky, it's my pleasure. thank you for having me. >> i knew you as the former giant superstar, what i did not realize is the last decade on wall street. you are a military veteran, not just a military veteran. you were a nuclear weapons transshipment pilot. is one of the most wide varying backgrounds i have seen from

anyone, what was it about football that led you into the security industry and are there skill sets that match up in both those industries? >> the first thing i have to correct you on, becky, i was not a superstar, i was a role player. i was a superstar, i wasn't one of them. there was a connection. >> super bowl 101. >> i had a good day, a long time ago. i think when you look at the military, professional football. when you look at the security industry the common detom nator, it is an extremely competitive environment. so all the skills that i learned and that i practiced in my first two careers really apply here in the securities industry and that's why we are looking for veteran to the fill every role within our company at academy securities and the securities industry in corporation america on the whole are doing the same thing, trying to replenish their

work force with highly trained, highly motivated, incredible people that are transitioning from the military to civilian life. >> what is it from the military that makes them so well suited for the securities industry? >> well, think about it. in the securities industry, are you picking stocks, making sales calls, organizing. you have teams you have to get in place. who better to execute that business plan than people that have been trained for that over the last decade or so. they are doing it while they are evading landmines, being shot at t. stress they are under. their ability to perform under those incredible circumstances, we think, make them very suited not only for academy but j.p. mogen our mentor, they are suited for cnbc. they can make any organization better bus of what they have been through. this military we have now is different than i was in a generation ago. it's highly technical.

they have to perform under stress. they got to solve problems. with them coming back into the work force, we are all positive, optimistic people, especially as veterans, when you see these people, what they have done, come back into the long hauchl we talk about the market, the short term the 94 term. the market with the assimilation of these kind of people, it can only bode well for us as a country and our marks and our economy. the thing you got to remember about most of these people that are coming back right now, they joined the military after we were attacked on 9-11, after the war in afghanistan started. after the war in iraq started. that tells you all you need to know about who they are and their character. if anybody has any doubts about where we are going as a country. go meet some of these people. better yet, hire some of these people, change the culture of your company within. >> you make excellent points. i heard the same points brought up by j.p. morgan, where they

have been talking about these things. what i don't understand is why is it veteran's unemployment levels run twice the national average is. >> it is running twice. whatever number you look at, it's an ugly number. people are doing, the public sector are reaching out, trying to attract these kind of veterans to theirentties. one of the problems is for the veterans themselves, the stils skills they learned, the problem solving, the discipline, the team work, the leadership vlgs for them to understand how those skills and traits do translate into the private sector, into corporate america. even on a municipal level, getting them understanding. helping them, training them. j.p. morgan, who is our mentor property jay program. matt zanes at the coo of j.p. morgan. they got programs there to help these people undz understand how

they fit into corporate america. on the other side, becky, getting the corporations to understand how these great people can enhance and give them the best chance of success. as a former athlete, i have been hired so many times to go talk to their people, talk to their management about leadership, about teamwork. who better to explain that and be able to take those skills and change a company from within than a military veteran. >> hey, phil, it's ben white from politico here. i'm a huge red skins, you drove me nuts going over the middle. but a question for you in terms of matching up the skills with these veterans with wall street firms, there is a lot of programs on wall street, boot camp that's get post-collegiate folks that don't know the inns and outs of the market, but have leadership skills. is there a way to funnel them into training programs to skill them up with the things they might not know even though they have those leadership and

managerial skills? >> yeah, there are many programs right now. academy, we're a small company, hope to be big as we go forward. our growth is very rapid right now. we do what we can to help train these people. we can only scratch the surface barely move the needle. we are acting as a conduit to something bigger, j.p. morgan have a 100,000 jobs mission to train and hire veterans and you are starting to see this throughout corporate america where large corporations are starting programs similar to that and you go down to the grass roots level, roger stalback, my hero and legend in dallas has his own entity he started to help train and hire veterans. so you are starting to see a lot more of this in our country right now t. reception is tremendous, especially when you compare it to the last couple wars. i'm talking about vietnam and korea. again, when you look at the

greatest generation ever, what they did after world war ii, saving us from tyranny, providing us great freernlgsd coming back, rising to levels unseen in the civilized world. we believe these returning 58 veterans will have that ability. our future is bright. >> to ask you one more question when you are here, there has been so much focused on the concussions from football players. are you concerned about this? you think there is something to do to change the game to protect our children in particular? >> yeah. i absolutely. i think the nfl the finding ways to protect the did from head injurys from concussions. it's happening right now. i just feel awful for the guys that i played with, the guys before me and after, the guys that are in dire need. i know there is a lot of

concussion, lawsuits out there. i'm not a member of any of those suits right now. i have gone back and forth in my own head, how do i best support my colleagues, the guys that are really suffering. does it help if i'm a member of a lawsuit or not. i guys suffering and they need real help right now. and we're trying to do everything we can. the league, i think, is doing a good job with it. but it is a violent game. a very violent game. so, how do you balance the two, protect players and have this extremely competitive product that may be the most popular sport in our country? >> well, phil, we want to thank you very much for joining us. appreciate you highlighting everything that you're doing with veterans and we hope we get to talk to you again soon. >> thank you so much, becky. appreciate it. don't start your trading week without jim cramer's stocks to watch. don't miss "squawk box" tomorrow. another ex-clusive interview,

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welcome back to "squawk b " box." down to the new york stock exchange where jim cramer is. good morning. >> good morning. >> tell me what to do. we'll have this announcement, tim cook will make this presentation at 1:00 p.m. eastern time pipe wonder go you're an investor in apple or thinking about apple do you want to own the stock? if you're playing today, do you want to own going in or not? >> you can't trade apple anymore. it used to be a company where you'd be dazzled and now you're not dazzled. you own it incrementally, take share way in a cell phone or maybe it has some device that could produce some earnings per share. trade on earnings per share and you don't get any change earnings per share, you can't trade it. >> that's a reasonable answer. >> you know i look for inflection points.

>> not as exciting as i was hoping for but we'll take it. >> the stock isn't exciting and the company isn't excitement. there's more excitement in mcdonald's than anal. >> let's play mcdonald's. >> a big whisper it was a very big disappointment. and what really came to fore, i was listening to you guys, becky talking about the innovation here is actually driving the needle. and that's very unusual that you offer new products. i also think late night is a terrific needle driver. this is a company that is emerging from a period of a slump based on innovation. isn't that what you want, apple, emerging from a period of slump, based on innovation. >> who is allen hamilton in light sa over the weekend? >> it's like morning "lightning round." >> nontradeable. i thought you were talking about facebook. my friend jordan rowhan

upgraded. he's been correct the whole way. he's going to create a change in facebook. he's really good. >> we'll see you in a few minutes. we are just getting one flash on the news wires right now that s&p is revising the u.s. credit outlook up to stable. >> good for us. >> i don't know if it's a huge surprise but revising the outlook to stable. that has added a bit to the dow futures this morning. one flash at this point on the wires. but you can see right now, dow futures up by 16 points. when we return, the last word from our reporter roundtable. politico's ben white, business insiders joe wisen that and dan colarousso. we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age.

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sp upgrading outlook for u.s.. quick thought on what this means. >> it plays into the fascinating debate about we've seen the deficit shrink so much. we've seen the sequester yet the economy's doing okay. this debate about can the fed really offset austerity is an important economic question. we're getting real-time data.

>> the s&p right now is off the drone list for the obama administration and they're in the good grace of the u.s. treasury again, putting us back in stable outlook. good for us. >> thank all of you for being with us today. appreciate it. >> a lot of fun. thanks. >> join us tomorrow, "squawk on the street" begins right now. good morning. welcome to "squawk on the street," everybody. jim cramer here. we are live at new york stock exchange. carl is on assignment. david faber is off. second best day of the year. how the futures are beginning to shoip shape up the beginning of the week. green on the screen. what about europe? how did they do on the first trading day? mostly in the red. austria, germany, netherlands higher. ireland, my people, up .1%. overnight in asia, all eyes on