♪ good morning and welcome to "squawk box" here on cnbc. welcome back, joe. i'm michelle caruso-cabrera along with joe kernen, who's back from vaca. scott walker is here as well. becky and andrew are off today. u.s. investors are waking up to green arrows to start the week, global markets getting a boost as the crisis in ukraine is easing. in asiana, the nikkei bouncing back up 2% from the 3% drop on friday. in early european trading, markets higher across the board. as you can see, we put moscow on the top, higher by 1.8%, but france, the ftse, the mib in italy and germany higher almost 1% or more than 1%. u.s. equity futures are falling along with that, suggesting that the dow would open higher by about 29 points. the nasdaq by 7, the s&p by 3 1/2. while the situation in ukraine seems to be calming down, we are following a very different story in iraq.

it is both a military mess and a political mess. embattled iraqi prime minister nuri al maliki made his first public comments since the u.s. air strike, saying he will not step down. he says he plans to file a legal complaint against the new president for a "clear constitutional violation." troop movement overnight in baghdad had people wondering, is a coup under way? is he starting one or preventing one? this is video of fierce fighting on the ground in iraq yesterday. helped by u.s. bombing raids, the kurdish forces overtook isis. we'll have a live report from erbil, the capital in a few minutes. scott has our top stories. kinder morgan consolidating assets in a $44 billion, bringing all of the company's publicly traded units under a single corporation, rather than the current master limited partnership structure. buzzfeed is expected to announce a new cash injection

today that could value the company at about $850 million. "the new york times" reports the online media start-up just closed a new $50 million investment from andreessen horowitz. the "times" says the money is expected to be used for nowhere content sections, an inhouse incubator and video arm, buzzfeed motion pictures. among stocks to watch, mankind, sanofi signing a licensing agreement with them. the two will partner on inhaled insulin bedding. it is an attractive alternative to daily injections for diabetes. joseph, welcome back. >> yeah, getting the -- >> your mike's on? >> what is this? >> this is a new new screen, smaller. >> lily put? when did this happen? >> you don't like it? it's smaller, takes up less real estate on the desk. >> no, yeah. it's very high-def. ew! >> we played "welcome back,

kotter" for you. >> i know. i'm not a big fan of the song. >> really? >> who are you more, barberino or more jack? >> in mind sight, i guess the guy who did the best was travolta, who i'd like top he's had so many comebacks. "pulp fiction," awesome. >> how many times when you were a child did you say get off -- >> i wasn't -- when did that start? see, i think i was already in college. >> i saw it in syndication. >> when i saw it, i was not watching. there were times in your life when you weren't watching tv, like in college. >> if you're under 30, google it. >> we were studying. federal reserve vice chair stanley fischer is calling the u.s. and global recoveries disappointing. we had to get a new guy to figure that out. he was speaking in a place called -- sweden. he says it's still unknown

whether lower productivity growth and lower labor force participation rates are now permanent features of the u.s. economy. i hope not. he suggests that this uncertainty makes it harder to estimate growth and inflation. reading, trying to catch up over the weekend and reading what it's like, you know, in spain, in greece, in europe -- >> horrendous. >> -- in italy, reading people, 48% of people under 30 living at home in italy. no hope for getting a job. all of the country's resources are going to paying for the retirement of baby boomers and people who are living well and had these labor contracts for years in this social sort of welfare state that they thought was going to work and was going to work forever. and now they see that the -- and i just couldn't help in reading it, couldn't help seeing the ghost of u.s. future is what i was thinking of, as we, not you guys, but as people in that middle age group, me, the baby

boomers start sucking up all the resources, taking away opportunity from younger people to the point where 75% of people in this country now think that their children are going to have a worse future than what they have. >> we've arrived at the moment in europe. it's been so long predicted -- >> arrived here? >> if we don't change. the battle between young and old, right? that's what's happening there. i think the other thing to keep in mind, you're talking about, you know, the ghost of christmas futures i think is what we're referring to, is that government can take away all these -- well, i was promised that. government can take it away at any time, and it will when push comes to shove. so, wouldn't you much rather -- >> can't give what you don't have. >> -- save your own money rather than the government claim they're going to put away your social security money and then take it away, which they've done before, right? they've changed the rules in the past. depend on yourself rather than -- >> it's in that article, all of the rigid labor laws designed to protect people. >> yes. >> which actually hurt the next group of people because no one can get hired because companies know if they hire someone,

they're stuck for life. >> dumb rules like there can only be a certain number of notaries in the country, a flat number. what is that? >> are you here because people are out? >> becky's out, yeah -- >> no, but are you -- i mean, you could be -- i could name like eight spots where our international correspondent could be because of geopolitics, and yet, you're here because we need you here, i think. >> yes. also, iraq just doesn't seem to move markets very much. >> ukraine is still what cramer says is -- >> absolutely, ukraine and russia, absolutely. and if it looked like -- i mean, we were literally prepared to go into ukraine because we thought last week potentially an invasion by russia. >> but again, i was reading over the weekend that people that are actually on the ground over there never thought russia was going to do it because they do think that putin at this point fears the possibility of even greater sanctions at this point. it isn't going to move that way. i don't know. i don't know whether that's true. >> but there had been a huge build-up of troops. they had called a military exercise -- >> right, but the people over there aren't buying it and they're emboldened. >> but here, when you read

analysts notes, we think there is a 50% chance russia invades because they were concerned that putin would see him losing in donetsk and that he just wouldn't stand for it. >> look how quickly, though, the market turned around on friday. >> exactly. >> that was pretty stunning, right? to see how fast -- >> a week ago friday -- see, i was out for two weeks and i watched a week ago friday -- or not friday, but the week it was down over 300. i was wondering, is this turning into something? i'm going to do the math. i don't really feel like doing it. what was from peak to trough, what did we do? >> 7%? no. >> no, no. did we get to even 5% on the s&p? >> i don't think so. >> i'll look at it when i get a chance. >> we ended up positive for the week last week. >> we lost a lot the week before, though. >> yeah. >> we lost everything -- one day we lost everything in july. that's what i mean. yeah. >> europe went down substantially. some of those countries went down 10%. >> europe should be at -- geopolitics becoming increasingly important factor for the global markets. joining us now on the squawk

newsline from thailand, mark farber, publisher of the gloom and doom report. great to have you on, mark. update us on your latest thinking. you're probably watching the last couple weeks thought here we go. is there more to come there? is this the beginning of what you've been forecasting for a while or did the market already successfully make a stand? >> well, the thing with the market is this. the market hasn't done much this year. some indices, like the russell 20 2000, are down year to date. the s&p's only up 4%. it became very overbought in early july. then we had a significant correction in many share. and as of thursday night close, the market on a very short-term basis was extremely oversold

with only 20% of shares above the 50-day moving average. that's a fully oversold condition. now, a rebound is under way in my opinion, but i doubt we'll make new highs. and if we make new highs, maybe just with a very limited number of shares making new highs, because the technical damage is quite significant. now, earlier, somebody said that iraq hasn't moved market much. that is correct. but i'll tell you, if vicious rebels make a move on arabia, then maybe the market will react slowly. >> marc, all along you've been kind of a critic of fed policy here, and i think you talked -- >> that's correct.

>> you talk about qe infinity. we almost did get there. we got definitely into the, in your view, with that last round that just, we're still involved with, where do you put us, at qe-7, 8, 9, 10? where are we in the process, because you said we get into the teens. are we like a qe-10 right now? >> well, we are in a tapering mode. but believe me, if the s&p dropped 20%, whenever that is, the talk will come up again that we haven't done enough. and it's not only the fed. we also have the ecb, we have the bank of japan and now we also have the chinese easing. in other words, the chinese markets having grossly underperformed the s&p since 2006 i believe could out-perform for a while.

>> marc, when you come on and we talk about faber gloom and you end up on "drudge" and we see it a lot of times with your comments, what is it really based on, the notion that something even worse than what happened five years ago, that that is on the horizon? is it because the world has been easing so much, printing so much money? is it because debt has risen again? is it because we've all sort of, i don't know, lived beyond our means, that -- >> all of the above. >> all of the above? is that really what it is? those are the fundamentals that cause you to think something wicked this way comes? >> if this is the multiple choice question, i would pick all of the above. but for me, the most important is that we had a crisis that came about because of excessive credit growth, and we then

resolved the crisis by pushing even more credit into the system. and debt to gdp on a global basis is now 30% higher than it was in 2007. now, following the crisis, we had one element that was favorable. china and other emerging markets were growing rapidly. but also largely financed by credit. and in my view, the emerging world obsessed, and i'm saying obsessed will contract, not grow. i very much doubt there will be much growth. secondly, in europe, industrial production with the exception of germany is everywhere, still down on the peak before 2007. in other words, we haven't much of a recovery. and then there's some structural issues that were discussed on your program just before about

the labor force. and so, in general, i think we've moved into a very low growth environment. and given the inflative asset markets, real estate and equity and bonds, i think the future returns will be very low. say you take a 10-year treasury, which i still own, but from here on for the next ten years, the maximum you will earn is 2.42% per annum. that is the maximum you will earn. and so, i think we will have a very low return environment. >> yeah. that was one thing watching that again for the last two weeks as -- >> the yields dropping on the 10-year? >> watching the gdp come in where it was and the employment numbers and then still, you know, it is a global phenomenon we're seeing, obviously. >> you're pointing to the fact that gdp went up so markedly and

yet the 10-year yield is still 3.3% to 3.4%. >> doesn't look right. and marc -- >> the bonds market seems to say that the recovery is going to be further very weak or maybe that will move again into recession. >> yeah. and what have we got? what do we have left if we move into a recession, too? here we are, supposedly, you know, in crisis mode in terms of where the fed is, and you know, things aren't that bad. and if things were to get bad, they've already thrown -- you know, talk about pushing on a string, they've already done everything. there's no dry powder. so, do you think that's the way it starts, marc? do we see inflation or something, or do we just see the market just start going down? how are we going to see if what you think happens comes true? is it going to be in the equity markets first that we see it? >> i think we'll see it first, and we have symptoms of it already in the credit market.

>> okay. >> but i'd just like to attract your attention to one factor, because many people are so bearish about u.s. treasuries. what would you rather own, a 10-year french government bond yielding something like 1.5%, or a 10-year u.s. treasury yielding 2.42%? you understand, the markets have been grossly distorted by monetary policies and fiscal interventions and support, and it's just very difficult to tell you where the markets will be in five years' time. as i said, i think the returns will be disappointing. >> okay. all right, marc faber. thank you. we're going to leave it there. and usually i ask you about thailand or something, but we've got to go. we don't have time. i appreciate it. thank you. >> well, next time we talk about thailand. >> okay. >> and the nightlife. >> and your personal life, yeah. >> one of the things we talked

about a lot while you were gone is this issue, so much liquidity from the fed and yet so little liquidity when it comes to trying to trade corporate bonds, munis, et cetera, that when a correction comes, it's going to be -- the gap down is going to be so brutal because people can't struggle to make the market because of dodd/frank, et cetera. >> see, he makes a point and other people make the point repeatedly, markets are distorted as a result of what the fed is doing. may be the case. probably is the case. but that's the hand you're dealt. so, play the cards that are in your hand. and the market has gone up in the face of many, many nay sayers over the last, what, five years, including in the last, you know, 12 to 18 months. so, yeah, okay, so what? so, the market's distorted. does that mean you're supposed to not invest in the market because it's distorted? >> dislocations, they have a way of growing and growing and growing and nothing happens until it happens.

it's the you think you're flying on the first -- you know, you're on a 50-floor building. you jump for 49 floors. you think you're flying, and then you realize you're not. that's the thing. the longer it goes where you think that there's a dislocation, the bigger the day of reckoning is going to be. >> assuming that the fed can't land the plane on the foam. >> right. have they ever before? >> what's that? >> have they ever been able to predict accurately and do the correction? they've done so many -- that's structural point. in the past, do you have a lot of confidence in their ability to know whether they're in treacherous waters or not? they have not shown the ability to know in the past. so, we'll see. coming up, amazon playing hardball with disney and the future of "captain america" depends on it. plus, a ride these 24 roller coaster riders will never forget. the details on this mishap at

six flags 75 feet -- >> which six flags? >> -- in the air. >> do you know? >> no, i don't. >> one nearby. >> we're going to find out next. >> find out next! >> i will not -- i don't -- that just is scary. and did the pga championship just give golf some of its mojo back? what rory's big win means for the tour. "squawk" returns in just a few moments. the ca♪illac summer collection is here. ♪ during the cadillac summer's best event, lease this 2014 ats for around $299 a month

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welcome back to "squawk box." amazon's reportedly halting preorders of some disney movies, including "maleficent" and "captain america: the winter soldier." the "wall street journal" reports that this is the latest contract dispute involving the e-commerce giant. amazon's also in the middle of a fight with a book publisher, hachette. i love saying that name. in honor of the -- >> silent "h"? >> i would read it like that, too. hachette. hachette is a great book. i don't like seeing that word in the teleprompter, though. >> really? >> i saw a big ad yesterday on this whole dispute. they're arguing. i didn't read the whole thing. you know, is it about books? >> yes. it's about the pricing of books, the pricing of e-books. >> they're not worth that much anymore, are they? >> i think it's about who gets

to decide what the price of the e-books should be. >> a group called authors united ran a two-page ad in "the new york times" -- oh, that's the one i saw. i was reading "the new york times" yesterday. that shows you what my life has kmd to. signed by 900 writers. huh, huh? >> what exactly happened on vacation? >> yeah, exactly. i was in a place -- look, if i go to stockholm syndrome in georgia, i'm moving further. i'm moving further right, believe me, and i do have a little bit -- anyway, including stephen king. the ad criticized amazon for halting orders from some hachette orders and slowing others. amazon's books team posted a message online making its argument for cheaper e-books and suggesting people e-mail hachette's ceo. amazon published the ceo's e-mail address and suggested points that people might want to make to him if they do send him something. now, here's the six flags. there's one right down the road.

>> there is. well, it was a bad end to the weekend for two dozen riders at six flags america maryland. they were stuck aboard the joker's jinx roller coaster. >> i mean, that should be your first clue. >> why do you even get on? >> joker's jinx roller coaster. >> because it's jinxed, obviously, i mean, right? come on. >> do you check out the people sometimes? this is -- >> rescuers -- >> i'm not talking about six flags. >> people inside. >> we go to local places sometimes down at the shore, and i see the people running the equipment at times, where i think, you know what, i don't know if my kids are going on this. >> no, they shouldn't. >> i'm not putting down karcarn or anything. this is 79 feet? >> yep. rescuers climbed to the stranded riders. we showed you the video there. they handed out umbrellas -- >> very nice. >> protect them from the sun. >> i thought mary poppins the way down or something. maybe not. >> how brutal is that? >> in the second car, they looked like a couple of guys who

took off their shirts, are sunbathing. >> oh, god. i'd hate to be stuck. i get scared on a ferris wheel when you're on the top one and they stop to let people off at the bottom. i'm stuck. >> me, too. i can't stand them. you go click, click, click, click. and i think at that moment i could sell my soul to the devil to get off that roller coaster ride. >> you're not afraid of heights? >> i hate roller coasters. i wouldn't get on that ride. >> but i don't mind the roller coaster itself as long as it keeps moving. i can do it. but the idea that it gets stuck and they have to come up and take you down? even on ski lifts or gondolas, where if they have to come on that bicycle thing -- >> that's a good scenario. what if it fails? what if you fall off, if it falls off the track? >> then it happens quickly. >> thankfully here, no injuries were reported. i have a little step up to the set, but that's just, i'm comfortable here. not bad, right? you're not afraid here? >> no, this is comfortable. well -- >> for other reasons. >> really? really? well, thank you for being here

today, though. it's nice that you notice the staff didn't have -- like, it's hard to come back, right? very difficult to come back after two weeks off, very relaxed. >> from vacation, sure. >> and i don't know if i could -- just thank you for being here. >> instead of andrew. >> i don't know. that would have been too much back into the -- especially after being in georgia. >> especially after todd friedman's interview with president obama that was in the paper yesterday. >> i did not -- >> don't read it, don't, don't. why ruin your day? >> how about hillary? your girl is -- and i say that because you went to wellesley, but she's throwing colleagues under the bus. is she running for something? if i were -- seriously, and i don't always take the obama administration -- but in this case, it's like, really? things are not going that well and you've got to pile on now? >> he understands this perfectly. he is more of a politician i think than she is. he gets this. >> you're probably right. >> he's like, good move. i'd do the same and double down. so. ♪ >> all right. when we return, the nikkei

rallying overnight. european and russian markets also are getting off to a good start. we'll gear up for a fresh week on wall street next. and it's cheaper to gas up as we head into the final weeks of summer. prices could go even lower. as we head to break, a look at last year's winners and also the losers. ♪

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good morning, and welcome back to "squawk box" here on cnbc. i'm joe kernen along with michelle caruso-cabrera and scott wapner. becky and andrew, as you probably have figured out, are off today. making headlines, blackstone is reportedly nearing a deal to acquire shell's half stake in a huge louisiana gas field. the "journal" reports that the deal could value shell's stake in the assets at more than $1 billion in paper notes. private equity firms have been buying shale assets from many different companies. and calpers is reportedly rethinking some of its riskier investments. the "journal" reports that the nation's largest pension plan is trying to simplify its $295 billion in holdings and better protect itself from losses during the next downturn, specifically calpers is considering whether to exit or substantially reduce investments in commodities. also actively managed company stocks and hedge funds.

>> so -- >> ten-year. >> okay. one more energy story. the lundberg survey finds the average price of a gallon of gasoline -- >> ready? >> yeah. >> -- fell by 6 cents in the recent weeks to $2.50 a gallon. oh, this is a good one. he gets really scared on this one hairpin here. they've been falling now for seven straight weeks. the average price about 8 cents lower than a year ago. those are ferrari -- here it is. interesting. >> becky's got a nice chin. that is a nice chin. >> she's young. gravity, you know. after 40-plus years in my case, gravity starts to. you'll see some day. >> not if i can help it. let's check the markets this morning. the futures right now are suggesting a positive open in the wake of europe moving higher, asia, too. dow jones higher 35 points, the s&p higher by 4, the nasdaq

higher by nearly 9. in europe after lots of selling last week that pushed germany into correction territory, higher by 1%. italy went into recession while you were gone. >> what was it, two quarters or -- >> they've now got two quarters, but they haven't grown 11 of the last 12. so, really for 20 years now. >> it's a great place to visit, though. >> right. >> i've said that a million times. i wouldn't care. i'd live at home if i could live in italy. >> your mother makes great pasta. why would you leave? >> i just need a room, then i'm going to go walk out in the olive groves and check out the bay of salerno, the sunset or so. i don't need anything else, anyway. or paris for that matter, right? i'd even take the 10-year french -- would i buy those? yeah, if i lived in paris. >> right, right. >> but you'd need money. see, that's what we forget. >> because cigarettes cost money, so does coffee. >> cigarettes cost money. all right, asia, japan rebounded overnight compared to the big sell-off that we saw on friday, higher by more than 2%.

the hang seng higher more than 1%, the shanghai higher by more than 1%. oil was pushed around a little bit by iraq, but brent is below $105 per barrel. wti is at $ -- 97.70. the dollar right now is? >> drum roll. >> mixed. weaker against the pound, stronger against the euro and the yen. you're going to have to pay $1.33, maybe $1.34 for the euro. and the price of gold this morning is essentially flat. >> and therein lies one of the major issues, right? joe said it earlier. the euro. >> right. >> the euro should not be at 1.33. >> and yet, it is. >> well, 1.33 it was 1.38, and it really made no sense as they're easing and we're uneasing. >> right. >> well, it sure as heck would help the situation for some of those countries over there if the euro were closer to par. >> oh, absolutely. i mean, every time the euro moves up, draghi gets epp

indigestion because you've done all this work with quantitative easing and then 50% of that work disappears when the euro strengthe strengthens. will geopolitics remain center stage for us? what should investors be watching heading into the training week? jay bryson is global economist at wells fargo and jeremy zier is chief equity strategist for wealth management research at ubs. good to see you, gentlemen. jeremy, nice to see you. >> thanks. good to see you. >> how do we read what we think will take place this week given the volatility that's now back in a big way, especially with friday's really spur of the moment rise? >> sure. i think the geopolitics and tensions we've seen in the global economy or in the global marketplace has certainly been spurred by geopolitical tensions. but at the end of the day, what is the support for markets really is the corporate profit cycle, and we've seen that second-quarter earnings for the s&p 500 were up nearly 10%, fastest growth we've seen in over ten quarters. so, as long as the geopolitical

issues are contained enough that they don't affect the corporate profit cycle, we remain comfortable with our overweight position in equities. >> you think the correction or whatever we want to call what we were going through in the last ten days or so is over? >> you know, in the very short term, it's hard to say. i think it's very difficult to determine where the geopolitical winds will blow in the very, you know, day-to-day and week to week, but i think the key issue for investors, especially for medium-term investors, is you know, what is the transmission mechanism that will lead geopolitical tensions to really cause equity markets to decline, and that's oil. so, if we see a $10 to $20-per-barrel spike in the price of oil, and really, that would have to be for a sustained period of time, that would lead us to be concerned that the business cycle would start to correct. but other than that, if you look at especially the u.s. economic data, you see that payroll growth is accelerating, the ism manufacturing and service index are in high 50s.

you'll see bank lending conditions are easing. so, all of the macro fundamental backdrop for the u.s. economy not only is in good shape, but i would say that it's accelerating. >> the problem, jay, is that many of the other economies we've been talking about are decelerating, whether it's, you know, italy or elsewhere. and now there's reason to worry about the german economy with industrial production growth slowing there. how should we put all of that into context here? >> yeah, so you know, $10, $20 a barrel oil, i mean, that would certainly slow us down here. in europe, $10 or $20 a barrel with growth potentially stagnant in the second quarter, you're looking at a potential downturn there as well. so, europe is very, very weak right now, and the last thing they need is a geopolitical stock that causes confidence to wane or higher oil prices or something like that, and there would be knock-on effects in our economy as well. 20% of our exports go to europe. >> does the russian recession matter or not?

>> no, directly to the united states i don't think it matters at all. you know, us -- we export i think 1% of our exports go to russia. so, you know, the trump card or the leverage that russia has over us would time actually be oil, but in terms of recession in russia, it has very low impact on the united states or in the west in general. >> jeremy, you're still u.s. equities place to be, best house in an otherwise deteriorating neighborhood or what? >> yeah, that's right. we're overweight equities and overweight u.s. over global equities in our top allocation. fundamentals still support it. largely, it's driven by not that the u.s. is necessarily a safe haven, but the profit cycle is the strongest in the u.s. and we think that that will continue in the second half of the year. >> what do you make, guys, of this discussion about whether or not there's just not enough liquidity to make markets for when the downturn comes? we go back to one of these, you know, they didn't answer the phone at charles schwab back in '87. we're hearing anecdotally that

trying to trade is becoming more difficult. >> i think it happens in various markets and happens differently in each market, right? so, the high-yield market, certain markets are seeing concerns about liquidity. but you know, in terms of when a downturn happens really is predicated on about wh it happens, right? we're at the point in the business cycle where things are accelerating, not decelerating. downturns don't happen by the calendar or because markets are liquid. they happen because there's a fundamental trigger, and at ubs, we don't see there is a fundamental trigger for a meaningful downturn. i'm not talking about the 3% to 5% moves that we can see at any -- >> jay, how about you on the issue of liquidity and being able to trade about you need to? >> well, i agree that, you know, in terms of, you know, with downturns and things like that in terms of the effect on liquidity, you really need a downturn. largely, i agree, when you look at what's happening in the world today, although europe is weak, you're not looking at a

downturn. if you get a shock like oil prices go up that gets you there, but other than that, i really wouldn't worry about it at this point. >> jay, thanks, jeremy. good to see you. coming up, john mcafee is getting back in the game. the centric anti-piracy pioneer unveiling a new website, and let's just say you can start your list of complaints right now. and as we head to break, a quick check of the european markets. so i can reach ally bank 24/7, but there are no branches? 24/7 it's just i'm a little reluctant to try new things. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates.

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welcome back. u.s. equity futures at this hour suggest we will have a higher open. dow would open higher by 33 points. making headlines, john mcafee is no stranger to speaking his mind, and now for

the antivirus software pioneer, he's unveiling a new website that gives people an online place to vent their anger. i thought that was the whole internet. >> i thought that was twitter. >> the site is called brownlist. the motto of the project, "it's payback time." mcafee says he plans to make money by offering subscription services to businesses. mcafee's recently known for fleeing belize when police tried to question him about the murder of a neighbor. it's not funny. but i think it would make sense if he were to start a company like this. >> brownlist? >> so companies with read what people are saying about them? i thought that was yelp. >> twitter itself, though, is weird the way it's, like it's almost in such a -- find things on twitter taking me to twitter arguments now. have you found those, where it's like -- >> keeping it all in the hay -- >> no, but it says so-and-so on

tv has a big argument with so-and-so. and i go and they have a history of all the tweet arguments that these famous people have had with each other, like larry king and piers morgan, for example. >> right. >> it takes me to that, or it takes me to some other one. it even takes you to some well-known people who are arguing with, like, viewers, about you know, calling them satan and -- >> you would never. >> i don't anymore. i really don't. i own wrestle with pigs. you know what happens when you wrestle with pigs? >> you get dirty. >> yeah. i'm not calling people pigs, but i'm just saying, there's no point in -- >> no upside. >> and they love it if you engage them. >> do you block them? >> i block them. >> i block them. >> the mute. the mute thing now is -- >> oh, yeah, that's a twist -- >> i like reporting them for spam, too. i hope they find out they're spam. >> you don't mute people? >> how does that work? >> that's the new thing. >> mute is like blocking without alerting them that you've blocked them to therefore not incite more anger. >> no, that's the whole point for blocking them is to let them know they're blocked. coming up, i know you've

seen it and i don't know anyone who probably hasn't seen this tape, but we'll show you a tragedy on the track. more on the fallout from tony stewart's horrific accident on dirt track that left another racer dead. and the other, much more positive sports story, rory mcilroy rewinning his fourth major. he's 25 years old. a dramatic finish in the dark. did you see the one fist pump after that birdie? that was very definitive for me, and that 3-wood into the par 5 that no one else hit. did primetime footage give it a boost? it was the first major of the year that wasn't a foregone conclusion. a rundown of the top sports stories next.

a huge weekend in sports. a tragedy on the racetrack to brilliance on the golf course. joining us to talk about the sports business stories from the weekend, dave briggs, nbc sports anchor. i didn't get to watch the first three rounds saturday, but i was so ready for sunday and i was bummed when they had some rain because the last three majors, it just hasn't, you know, kaymer was a foregone conclusion. >> right. >> the british open, rory just looked like he was going to win the whole time, so i really wanted to sit down, because rickie was there, who now i think is the -- the baton is being passed, but it's nice to

still see phil there as well, and rory is just head and shoulders above anybody else. >> yeah, this was perfect from a golf perspective, because you had rickie and rory, both who are 25, both good friends, both young and hip and good looking and all that, and then you had still phil, 44. he had a terrible year, really. hasn't even competed until this. so, i think from a business perspective, you really look at what are these ratings going to be. because that was perfection. i don't know that it should be, but that is the question. without tiger even playing on the weekend, if they're not big, you have a problem, because this was perfect. this was outstanding golf, personality, good kids and a legend in phil. >> the weather, right? i mean, the rain that hurt the golf tournament early on sunday helped it in the end. it created that drama towards the finish, right? where you had -- >> it got pushed into prime time -- >> guys letting phil and rickie,

having to let rory -- >> something you only see in golf where you're having guys -- >> peter costas knows phil really well and phil was probably not happy that i watched the interview afterwards -- >> phil is classy, isn't he? >> always classy. >> and he knew that no one -- you know, you're still in a tournament, he still had a chance and just missed chipping that in in the approach shot. that almost went in, which would have tied it. and maybe it wasn't the perfect way to end it for the guys trying to catch rory, but everybody -- >> and imagine -- >> and rory, also, think if he had not putted that last putt because it was too dark to read and he said everybody else has to play in the dark, but i'm going to wait until tomorrow -- >> they would have come back tomorrow. if they hadn't let them -- >> did you see the putt, too? it came this close -- >> it was an outstanding putt. you understand phil originally b confused, but so was rickie. >> they knew they were teeing it up behind them and didn't even

look baab. they kept walking -- >> i thought coming up as a foursome would have been a nice touch. >> that would have been weird, though. this is the way they do it, though. but getting back to rory. i think -- and i messaged you or tweeted last night, the reason they can have four-hour talk radio sports shows is to talk about rory at 25 versus if tiger were 25 again, versus jack if he were 25. rory, nobody hits a 340-yard straight every time and he can do that now. that's how pumped that guy is. >> and guys on tour will say the biggest difference between rory now and tiger at 25 is they're more confident with rory off the tee than they were of tiger -- >> that's what i mean. he hits it straighter and longer than tiger ever did. but you know what else he has, what tiger had, the ability to hit seven, eight, nine, ten -- which he did not do on the first seven or eight holes yesterday. >> i think what defined yesterday was rory's stones, for lack of a better term. he was 1 over through nine. he was down three on the back, 4

under par -- >> never looked back and his face never changed. he muttered a little on the one where he missed another 10-footer -- >> but even on 18 where he almost put one in the drink and could have collapsed, he still stepped up. and to your point, almost drills the putt on 18. he really showed killer instinct. >> only one person hit that par 5 yesterday and you saw that 3-wood that he hit that went -- and then the eagle. >> that's as good a shot as we've seen this year. >> but so was the 9-iron. you saw the other guys dealing with the 560-yard par 4. he hit a 9-iron in and birdied that. >> twice. >> he's head and shoulders above -- >> but look -- >> i was calling for rickie, and i always want phil to win and i was thinking rory's won a lot, but then i was pulling for rory because he's so good. >> said to rickie afterwards, great dual, hope we have more of these, your time is coming soon. >> classy. >> it's a friendship and unique rivalry. >> we're going to be talking less and less about tiger not

being around some day. >> imagine if tiger can gain back anywhere close to where he can compete -- >> but it's not his back, it's his putting now. he can't hit 8-foot putts anymore. >> inside 3 feet. >> and he used to hit 8-foot putts, all of them. >> so, he's got four tournaments since the surgery. two he missed the cut, one he wi withdrew and one was his worst finish in a major. it's not just mental, it's not just the back. it's everything right now. >> we need tiger and rory on the back nine of a major at some point. we need it. >> can i ask about johnny manziel? >> johnny manziel. >> the drama over a preseason game, even i noticed it. >> unbelievable. speaking of ratings, i'd love to see those -- >> you mean the game or johnny? >> johnny played well. you can feel it's only a matter of time. they can only keep the johnny train at bay so long. he's going to start eventually. the circus has moved to town at cleveland.

and he looked good. he was 7 of 11. he ran the ball well and he's got that flair. >> what's your assessment of this terrible crash? >> look, you can never measure a man's intent, but if it were dale earnhardt jr., jimmie johnson, anyone else in nascar, we wouldn't be asking about intent, but tony stewart has a history of a hot temper -- >> did he do it on purpose? >> and you listen to the video and look at the video with nascar people, which i have, and they all say he hit the throttle. they're not saying he meant to, but at some point, he hit the throttle around the time that he clipped and eventually killed kevin ward jr. we'll never know. it will never get criminal charges -- >> how can they tell he hit the throttle? >> you can hear, listen -- >> with all those other cars -- >> they say with sprint cars, when they hit the throttle, they go sideways and that, in fact, is what happened. but he's one of the greatest drivers -- >> why did he get out of the car? >> i think there's one thing that's positive that comes from this, hopefully, no one ever

gets out of a car and confronts another driver on the track. it happens at all levels, almost every weekend in nascar or sprint, or some level of racing that they get out and they do that. and tony's done it before. hopefully it never happens again. unfortunately, it took this to happen. >> worst-case scenario. it's even tough to -- >> and almost the worst decision he's ever made to almost race yesterday at watkins glen. their original statement from stewart's team was -- >> because he's been out for a while. >> oh, my gosh. >> i like the new look. >> cooler minds prevail. >> it's okay? >> good. >> no pattern on pattern this time. >> no pattern on pattern, but you know, andrew was concerned that you might not like the new look. i'm pleased -- >> who? >> that sorkin kid? >> we've got to go. anyway, thanks. >> thank you. when we return, the political situation in baghdad

breaking down while the kurds battle militants in northern iraq with the aid of u.s. air strikes. what is the strategy here at home? white chocolate lovers don't like dark chocolate. milk chocolate lovers don't necessarily like dark or white. before we couldn't really allow the consumer to customize their chocolate. we needed a scalable cloud solution allowing them to select what they are looking for. now there is endless opportunity to indulge. customization is made with the ibm cloud. the ibm cloud is the cloud for business. where the reward was that what if tnew car smelledit card and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods.

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global hot spots flaring up and cooling down. tensions in ukraine easing while in iraq u.s. air strikes helping the kurds fend off isis. co-founder of foreign policy initiative breaks down the strategy here at home. getting out of the line of fire. how oil companies deal with protecting their employees when oil-rich nations are in crisis mode. and the world's health organization calls the west africa ebola outbreak an international emergency. we talk to a w.h.o. insider about efforts to contain the

growing epidemic. the second hour of "squawk box" begins right now. good morning. and welcome to "squawk box" on cnbc i'm joe kernen along with michelle caruso-cabrera. and scott wapner. becky and andrew are off today. futures are indicated up a little bit. up 33 points after you'd have to call it a stabilizing week last week. i did some math and it was less than 5%. >> that's what the corrections or whatever you want to call it have been. >> what if it's not over? >> yeah. might -- that's right. in the middle you don't know whether it is. but it's stabilized so far. the ten-year, 2.43. i thought at one point it did go up a little. >> it did. the gdp number came out.

>> and right back down into the 230s. let's get to scott though for this morning's corporate headlines. >> thank you, joe. general motors has lost a bid to dismiss a lawsuit related to its faulty ignition switches. this particular suit was brought by the family of a woman who died in 2010 in an accident while driving her chevrolet cobolt. the family had sued gm in 2011 and settled that case last year but the new suit accuses gm of concealing evidence. federal reserve vice chairman stanley fischer says the economic recoveries in the u.s. and elsewhere have been, quote, disappointing. fischer told a conference in sweden that potential economic growth may have gone into a permanent downshift because of a slower productivity and declining labor force participation rate. and one of this morning's big stock winners drugmaker mankind corporation. it's licensed its inhaled insulin treatment to french drugmaker sanofi in a deal that could be worth up to $525

million. sanofi sells more than $40 million a year in diabetes treatments but its top selling insulin is set to lose patent protection next year. 23% for the market. breaking overnight a political crisis in iraq as prime minister nuri al maliki refuses to step down to allow the elected president to take over. this as the obama administration is stepping up airstrikes against militant group isis in the kurdish north of the country. duncan golestani joins us from erbil. >> good morning, michelle. this is the kind of political infighting and confusion that president obama does not want to see as iraq struggles to stand up to isis insurgents. last night, prime minister nuri al maliki, taking to television to repeat his claim that he would serve a full third term and denouncing the president of the country, saying that he was violating the constitution, and that fight the obama

administration have come down on the side of the president. nobody, least of all among his supporters, really thinks that nuri al maliki can now unite iraq's different sects. it's kurds, it's sunnis and shiites as it struggles with its fight against isis insurgents. michelle? >> duncan, what exactly was happening on the ground in baghdad with the movement of troops where there were reports that were concerns about whether there was a coup, either he was trying to prevent a coup maliki or he was trying to start one. can you give us any sense because there was so much traffic last night about what was happening on the ground. >> yes. that's right. it's a really confusing picture. there were reports of security forces, groups loyal to nuri al maliki being stationed around the center of baghdad. but it's hard to confirm that. especially because obviously the green zone in the center of baghdad is so heavily fortified anyway. but it does underline the

continuing division of the center of government in baghdad at a time when the u.s., and iraq's international supporters are saying you need a consensus government. you need to stand to the because you are facing the biggest threat iraq has ever seen. >> and tell me what is the mood in erbil? you're in the northeast part of the country where there was sheer panic last week when it looked like isis might be able to roll right into the capital. things have calmed down now i understand? >> yeah, much more optimistic in the city today. that's because over the weekend, because of u.s. air support, the kurdish forces were able to retake two strategically important towns. important because they're only 30 minutes away from where we are now, underlining just how close isis came to penn stating what has historically been the safest part of iraq. so those two new territories have been retaken. the question now is, can the

peshmerger continue taking ground from isis with the united states' support. >> let's bring in senior national security fellow at the new america foundation. doug was the director for iraq at the national security council during the bush and obama administration. also with us, dan senor, former foreign policy adviser to the bush administration, and a co-founder of the foreign policy initiative. dan, i will just start with you. i don't did i mean we're here to talk iraq, but we could have like five or six things to talk to you about today, right? >> it's a pretty depressing state of affairs globally. i think what you're see being, joe, in iraq is symptomatic of has going on regionally. which is on the one hand, we are sort of playing whack-a-mole right now. i applaud the president for taking action against isis, and preventing this march on to northern iraq where the kurds were evacuating cities. i mean evacuating important

cities in iraq. and helping to head off what could have been a genocide on that hilltop where the community was populating itself to protect itself. so it's important he took those strikes. i'm concerned when you take a step back that there's no broader strategy. when you think about this, that whole swath of iraq on the iraqi side of the border and then also a swath of syria on the other side of the border is basically ungoverned space right now. it's basically being run by isis. and what we haven't heard is what our strategic outlook for dealing with the fact that that piece of territory, and it's large, could basically be like afghanistan pre9/11 where you have terrorist training camps, islamist radicals running huge areas, except it's much more valuable real estate. and so it's quite disconcerting. >> doug, whenever i read about the gains made by isis and then i saw today maybe they, you know, that air strikes did help

and the kurds were able to make a stance, but, is it growing? how many -- i always am surprised by the number of how many people are part of isis. it must be growing. how many total people are there? because it seems like it looked like some of the forces that they were fighting were just turning tail and running. how many are there now? and is it growing? >> i think certainly it's growing. how many there are, i don't think we really know. and there are certainly different categories. there are core fighters. they have some auxiliaries who occasionally come out and help them and probably have young boys running ammunition for them. but they're certainly growing, i was telling someone yesterday, if you're a young 15-year-old appearing islamist jihadi, whether from tunisia or saudi arabia or even pakistan, do you want to go hide out in a hill in a cave somewhere or do you want to go to syria and find abubakar al baghdadi and get involved in

this string of victories he's been having time after time? isis has done pretty well. they're impressive organization. though we don't like anything that they stand for. but purely in terms of their success, extremely impressive and very worrisome because of their brutality. i heard a quote the other day they seem to be combining the worst aspects of the nazis, al qaeda and the khmer rouge from the old days. >> i said that. it's weird because i said that. i said you know in a world where we somehow get lulled into the, you know, we see our own hopefully our own inhumanity in the west seems to increase to the point where it's almost, you know, we worry about the, you know, the slightest, you know, even verbally, and we think we've -- extrapolate to the rest of the world. there are bad, really, really bad people still left. looking at this stuff you can't get any worse, can you? children's heads on spikes. i mean, dan -- >> children's heads on spikes.

not threat, plan to execute a whole population, tens of thousands -- >> burying people alive. >> you -- but joe -- because they call the izidis devil worshippers. these people scared to come down from the hilltop because they're scared of being slaughtered for being quote devil worshippers. this is not just in iraq. it's in iraq, it's in syria, we're seeing elements of this in libya right now. you are seeing -- >> what about saudi arabia, dan? faber that was his worst case scenario. that could get scary. >> it's certainly nothing remotely close to what we're seeing in places like libya and syria and iraq right now. obviously if there's a threat to the saudi monarchy we should be concerned. i think the monarchy has had a pretty tight grip, but look at nigeria. i mean you start to go around the region. you look at hamas and gaza, islamic jihad and gaza. you are seeing right now the proliferation of these groups. we were told al qaeda son the

run. al qaeda is not on the run. whether it's al qaeda or its affiliates they are all over the place and we can't just, for all the reasons you were just discussing, about the brutality of it, of course they're brutal and that offends our sensibilities and we have a moral interest in heading it off. we also have a strategic interest. if you look at the president's rationale over the weekend, the reason we need to go take action against isis now is because we have to effectively protect the kurds, protect american civilian and military personnel in the area, and head off a genocide which, of course, i totally support. and again as i said earlier, i bought it. the question is what about that whole area that isis is effectively governing right now in northwest iraq. are we just supposed to let them be there? is this just containment? are we content letting them run this huge swath of territory? >> what's incredible at this conversation is that as we face this crisis in iraq then there's the situation with ukraine and russia. doug, what's your assessment of how we handled that and what

should we be doing there? >> well, i'm not a ukraine expert by any means. but that's the issue. 9 white house has so many issues to juggle right now. and you know, dan's worked around the white house, too. any white house, it's very hard for them to focus on more than one, maybe two issues at a time. i was in the white house when the russians invaded georgia. i was working iraq at the time. there was just no movement on iraq. the white house was so focused on georgia. it's very hard for any administration to walk and chew gum at the same time and now they're being asked to walk and chew gum and juggle and ride the bus. >> look i think we just need to have a sort of cold assessment of what is going on. putin sees a huge vacuum both in the region and in the world. he believes, whether it's fair or not, he believes that american leadership is not exerting itself and there's a huge opening and that's expressing -- manifesting itself not just in the former soviet

union, but all over the world, really. you talk about latin america. you can talk about parts of africa. you can certainly talk about the middle east. and we just have to ask ourselves whether or not we want to meet that with a pretty aggressive response. i think we could be doing even more than we're doing on the sanctions front. although we are doing something that's concrete. we could do even more and certainly europe could be doing more. we have to also think about how nato is to be engaged. what if putin actually rolls in -- moves farther west in to ukraine and doesn't just limit his activities to the eastern part of ukraine. i mean it's almost as though we've written off the eastern part of ukraine. we've basically said that that part of the country is in the sphere of influence of putin -- >> -- in the interview with tom friedan, he said president putin could roll over and then it would be more difficult to have a constructive relationship with him in the future. >> that's right. that's an understatement. >> we got to go. >> doug, thanks. dan, tell the missus hang in

there. she's getting -- obviously doing some of the right things as far as i can tell. >> well, i agree with you. but you know, that's -- i'll pass on your good cheer. >> good. do, because obviously if these people are mad then she's doing the right thing. anyway, thanks. we'll see you. >> all right. when "squawk" returns the ebola outbreak has claimed nearly 1,000 lives. the world health organization's communication's officer here with the latest on how they're doing trying to contain the epidemic. check out shares of priceline after the travel website reported quarterly results. earnings beat the street but current quarter guidance fell short. "squawk" returns in just a moment.

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and find out more about our two-year price guarantee. comcast business. built for business. welcome back to "squawk." let's check the futures right now. take a look at how we're setting up on the street today. dow jones industrial averages looks like it will be up 43 points continuing friday's big gain. the s&p with an implied open of nearly 6. glaxosmithkline says a clinical trial of an experimental vaccine against the deadly ebola virus is set to start shortly. the british drug giant codeveloping the product with u.s. scientists. michelle? >> there are as many as 1800 confirmed cases of ebola in several west african countries with nearly 1,000 fatalities. the world health organization has declared an international health emergency. joining us with the latest is paul garrwood, communications

oefrs for the world health organization. paul, good to have you here. >> thank you. >> we're increasingly alarmed when we see the spread into extremely populous places like lagos, nigeria. can you tell us what is the latest? and what's being done there and how concerned are you about that, as well? >> as you've said, the outbreak, the ebola outbreak is a major concern. we've been seeing in countries like nigeria intensified action to trace people who may have come in contact with those who contracted the disease. we've seen intensified efforts. there's a greater awareness in nigeria and the three main west african affected -- countries affected by the virus to really ramp up efforts to bring the outbreak into control. >> what are they doing, particularly, in lagos? and we focus on it, one, because like i said, densely populated. one of the most densely populated countries. and ebola is horrific.

but we have many, many business people who travel to lagos because of the oil industry there and so that's why it's much higher on the radar screen and of increasing concern. is there anything in particular or are they better equipped to handle the situation with better hospitals? because, they are the largest economy in africa. >> sure. so we saw in knee jeer yeah, the gentleman who first appeared in the country in lagos sometime ago with symptoms. he was detained. he was isolated. he was, you know, taken to a health care facility. where he sadly passed away. and other people have come into contact with him. we saw also particularly health care workers were suspected of contracting the virus, as well. so it really talks to the need for higher infection control. we've seen epidemiologists going in to -- in to the situation to really detect people who may come into contact with those who may have been confirmed as contracting the disease, or

suspected. it's really isolate transmission chain. that's the key thing that's happening here. >> is the w.h.o. supportive when countries close their borders at certain points? >> we -- it's not recommended closure of borders. it's seen that some countries need to take extraordinary, you know, extra measures to bring this outbreak under control. we've seen this particularly taking place in the juncture between sierra leone, liberia and guinea, and where state authorities are really taking extra measures, that they believe that they deem necessary to contain the region, where many of the cases have been found to be, and to ensure people get to health care facilities rather than stay isolated or -- >> what kind of hope is there for the serum that's being tested? we hear there's a serum being used in the two patients who are in atlanta and the possibilities of some kind of treatment?

>> well, we see this work going on. what's happening today in geneva is discussion around the ethics behind the making available of such serums, of such treatments. treatments that haven't been tested on humans, really, prior to this. this is a major project for us which we're tackling and seeking guidance on. one of the issues has to be taken into consideration is the ramping up of any production of such treatments -- so these kind of issues would be very much tackled by the ethics committee. this new ethics meeting that's taking place today in geneva. >> thanks so much for joining us. we appreciate it. >> thank you. >> paul garwood, world health organizations. >> protecting employees in hot zones and war zones. how the oil industry handles global crisis management. and dining out is becoming more

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welcome back to "squawk box." are you having breakfast alone this morning? if you are, then you're not alone. a report -- you're not really alone. a report from market research firm npd says 57% of eating and drinking occasions happen when people are by themselves. among the reasons cited, time constraints. active lifestyles. and an increase in the number of one-person households. >> all meals are eaten 57% of all meals are eaten solo? >> 57%, yeah. >> breakfast by yourself, lunch -- does lunch at your desk count? >> what's the -- when i drink alone i like to be by myself. >> when we come back, the path for oil prices with all the

flare-ups in the middle east. and how the oil industry protects employees in hot zones and war zones. "squawk's" back in just a moment. ♪ [ radio chatter ] ♪ [ male announcer ] andrew. rita. sandy. ♪ meet chris jackie joe. minor damage, or major disaster, when you need us most, we're there. state farm. we're a force of nature, too. ♪

welcome back. making headlines this morning, kinder morgan consolidating its assets. the $44 billion deal will bring all of the company's publicly traded unit under a single corporation rather than the current masters limited partnership structure. you like that? >> you know i do. we checked the headlines to make sure there were no -- >> nothing about isis. >> you can read a buzz feed head line. >> you can read a buzzfeed. you can do the kinder morgan with this is wapner -- >> what about six flags? nobody injured. >> you can do that. >> six flags, you can do it. i don't not -- >> may be some legal action as a result of the -- >> with judge popner? oh, with the -- i thought you

meant judge wapner -- >> the synergy there. i get it. >> okay? >> i just think that it sounds more exciting when we play this music and -- because headlines get you going. >> do you have a theme song by the way? >> no, i don't. >> i do. >> why don't they -- you never do this on fast money, do you? because this is our thing. >> yeah. >> what happens on "squawk" stays on "squawk"? >> that's right. >> i like it. >> okay. >> it stopped because we stopped reading the headlines. >> buzzfeed, reported -- >> reportedly closing a new $50 million investment. "the new york times" says the new cash injection values the company at $850 million. the teenage mutant ninja turtles are back. their return to the big screen bringing in $65 million at the weekend box office. beating out marvel's guardians of the galaxy. paramount pictures was happy with the win and is already announcing a sequel set to open in june of 2016.

>> i said before and i think it was you two guys before quinn martin. you have no idea who that is. >> i remember. >> i don't remember it. >> yeah, this is -- can you do star ski and hutch because i do this -- >> there are better shows than starsky and hutch. the streets of san francisco. >> oh, right, right. >> michael douglas? >> michael douglas. >> yes. >> see. >> learn something here. >> remember trying to run -- conrad trying to run. it's like -- >> she had at least one television series running in prime-time for years. >> the crooks turned around -- >> william conrad could not catch, you know >> that was wild, wild west. >> miss gordon and wild wild

west. >> i don't know. >> i know the wild west. but, -- >> secret agents with their own train. luxury cars -- >> i have no idea what you're talking about. >> we killed the trading block with this. >> really? >> you go ahead. >> oh, we didn't kill it. we moved it. >> tesla suspended oil drilling operations in iraqi kurdistan and the oil producer has started to evacuate nonessential staff in the region. the decision comes amid spreading violence in the region. hess is not the only major energy player in the northeast. jackie deangelis joins us with more. >> i'm waiting for some special music for my hit but might not get that lucky this morning. that's right. hess is the latest one to evacuate some nonessentials but we're also talking about other oil majors making some of these kinds of announcements on friday, as well. chevron announcing cuts of overseas staff and also exxon taking similar measures reports of that the company has not confirmed it. so let's put this in perspective

in terms of impact first. we're talking about northern iraq here. most of the major oil fields they are in the south. second, these are not major shutdowns. they haven't significantly reduced northern production. the iea saying that kurdish production in june of 360,000 barrels per day that's roughly 12% to 15% of iraq's overall production and of that only about a third of it is exported so relatively a small amount of oil here. mean time iraq's ministry of natural resources issuing a statement saying that oil production in the region remains unaffected, and is being delivered to both domestic and export markets. clearly the government trying to reassure the market here. also remember we're talking about these nonessentials, and this isn't the first time that we've seen this. companies in the region have done this. they started doing it earlier this year. and as someone who lived in the middle east and was evacuated during a time of turmoil i can tell you that you take on a little bit of risk when you go there. and you assume that risk. you know about it. so people that are being evacuated, they kind of understand these are safety precautions that have to be

taken. also, they're getting paid to do this. they're getting paid a lot more than other people. $90,000 or more is the average salary for an oil and gas person that's an expat in the middle east. if you've got degrees and significant experience you could be making six figures. so this is a safety precaution, nothing to get too concerned about right now. unless something else major happens. >> want a big producer -- want to be a big producer but at this point still. >> when we talk about overall production, you know this michelle we're talking about 3 million barrels a day. most of that coming from the south. that's what traders are focusing on. that's why the prices yes they're supported but they're not flying through the roof. >> we were supposed to get a shipment of kurdish oil in today in paulsboro, new jersey. but an e-mail from the company last night looks like they're not going to accept delivery and it's going to sit offshore because just like the big tanker that's sitting off the coast of texas still, i'm trying to find out if the iraqis sued this company as well or what's going

on there but the kurds are still struggling to find consistent buyers of their crude. >> one thing about gleaming skyscrapers and five star hotels in erbil. >> so, yes. but, we stayed a a five star in erbil and you would not consider it a five stash. there are buildings there that are tall. i wouldn't call them sky scrapers, and look it looks a lot better than the rest of iraq. for sure. but, they haven't gotten their money from baghdad since february so everything's been shut down. >> right, right. >> all the construction has stopped. but -- >> and that's something that's not just right now it's been over the last few years that they've been ramping production. it's hard to get ex-pats to go over there because it's been one of the riskiest places to be. a lot of people are cautious when they go and they understand that they may have to take a leave of absence. >> compared to libya it looks nice. >> oh, that's true. >> thanks, jackie. >> let's get to our trading block for more on oil prices and the geopolitical effect on the currency markets.

joining us is kevin book clear view energy departments managing director, and bouquet asset management managing director. kathy, we were going to get to oil in a second. i guess i didn't quite watch the euro as closely. we're saying why is it 1.33. i didn't know. it's been in a pretty drastic decline in the last two or three months. is this going to continue? >> unfortunately i think it could. especially this week, joe, when we have a lot of european data on the calendar. particularly those gdp numbers. i think what they're going to show us is that the problems in the euro area are beginning to move up north. we've already seen data that shows italy is back in recession. it's a very good chance we're going to see, you know, very meager growth in germany. and i think at the end of the day, this kind of reinforces the ecb's concerns about an uneven and fragile growth. and so that's driven the euro lower. on the flip side, investors attracted to the u.s. dollar, because prospects abroad seem to

be really diminishing. and we also see just kind of a, you know, broad-based risk aversion in the markets. it's faded a little bit but i think there is still going to be demand for treasury that's going to support demand for the u.s. dollar. as long as there are no about the better alternatives abroad that's going to weaken the euro and the prospect of additional easing from the ecb. >> you said unfortunately. that was not my take on the euro going down at all. you know you might get down to a, like an $18 croissant versus a $26 croissant if you travel to paris this summer. right? >> well, you're absolutely right. it really depends upon what perspective you're looking at. a traveler the weaker euro is a positive thing. also good for exporters. but we're looking for, hoping for strength, you know, globally. and the euro is a high beta currency. when there's risk appetite markets are enthusiastic about growth and does well. that's why i think a weak performance is a reflection of

weak global growth. >> but we never could figure out given where they are in the economic cycle, and just their structural problems, how it's not -- how it was at 1:40 was beyond me. and 1:33 is different. below 1.35 you can sort of travel over there for like a couple of days. but, it certainly is not unfortunate if, you know, if you want to travel over there. kevin, how does -- we probably should have, you know, bury the lead a little bit because oil prices, all of this, when you talk ukraine, when you talk any of the hot spots we immediately since we're a market oriented network we immediately say, well, how is it going to affect oil? so what are we talking about here that can really move the price? because it's really, not much has happened. it's been like watching point dry. >> sleepy tumbleweed time. not if you look at the back end of the curve. a lot of what's happening is unusual in the sense that iraq risk isn't being borne out in the price you see today. with the price you see years out. the reason is that oil is the glue that was supposed to hold iraq to the.

as iraq fragments and falls apart and things worsen, the problem is essentially what the future production could look like. in the near-term there's actually room for downside to crude and part of it is because libya could still come back on. it's one of those big coulds. and of course, iran, still a deal in the offing, possibility in november. but as crude begins to seep out of iran, with the expanded trade, and the liberalizations that have happened since the beginning of the talks, we could see crude brent down at about 103, 102 in q4. >> president obama's biggest regret when it comes to foreign policy is not doing more to help libya create democratic institutions. >> that was in which -- >> tom friedman, yeah. all the things about foreign policy. >> he couldn't confirm hillary's -- he couldn't say syria was the biggest regret? >> no, no, no. he specifically about not helping libya build institutions

and now you see that -- >> so kevin you talk -- you didn't even talk about ukraine. what do we think nothing's going to happen there? >> i don't think we think nothing's going to happen. if you look at what the back end of the futures curve said about russia risk to future production it was worth about 1.50 in the last month to the upside. compare that to june, where iraq brought us $5 of upside, the market's discounting it still. i think there's a lot of real real politic going on in terms of people recognizing that russia needs to sell europe gas. europe needs to buy it. how far can things really go? the market's being complacent. maybe complacency is bad. but right now it's keeping things stable. >> if all these things were to be resolved in a more favorable way, it -- i mean is oil being held up by these things? supply and demand given what we're doing in this country, with, you know, there's an article today that even alaska is hurting because we're getting it from so many different places. i mean, is it possible that that that actually inflated right

now, and shouldn't be this high, if, if there weren't all these geopolitical problems? >> well, the oil market is very tightly strung. it's like a small neurotic dog. but if you were to actually go ahead and let give it some leash, you could see a lot of running to the yun side. right now we've got more than 3 million barrels per day of unplanned outages in the world and we still have relative price stability. so yes room to the downside for sure wouldn't call it artificially priced right now, though. >> okay. all right we're going to end it there. kathy, kevin -- have you replaced piers morgan yet on your show -- >> still waiting for that call. >> he looks -- you didn't know what i was talking about, did you? >> i still don't. >> you still don't. nobody does, in fact. maybe shot and the show, and if -- anyway. thank you kathy, thanks. >> does he wear glasses? >> no when he used to come on and didn't wear -- >> maybe now. >> maybe now.

>> up next, are college athletes about to start getting paid? first on cnbc interview with the man who scored the big victory against the ncaa and his take on how long this fight will go on. plus, a fight for in between amazon and disney. how captain america could be caught in the middle. "squawk box" will be right back. so ally bank really has no hidden fees on savings accounts? that's right. it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates.

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welcome back to "squawk box." checking the futures right now, a positive open right now the dow would open higher by 42 points the s&p by nearly six and the nasdaq by nearly twelve. amazon is reportedly hoping preorders of some disney movies including -- i struggle with this, maleficent. >> maleficent. >> see they spelled it wrong. >> oh, okay. >> i feel better. >> it looks like malefficient. >> that's what it looks like. >> maleficent. it's from sleeping beauty. you remember sleeping beauty? >> yeah. >> that's the scary witch -- not witch, queen. >> they're supposed to be taking a shot of the television so we can see -- >> maleficent. spelled among. >> malefficient which sounds

like some type of market dislocation. something that could be not as efficient. so maleficent. >> and captain america, the winter soldier. >> you got that. >> the latest contract dispute involving the e-commerce giant. amazon is in dispute with a dispute with publisher hatchet. in college sports a judge deciding that the ncaa can't stop players from selling the rights to their names, images, and likenesses. this means big time college basketball and football players could be in line for a paydays once they leave the school. here to explain the details, and implications of this ruling michael housefield, he was the lead attorney for the ed o'bannon case against the ncaa. he's also chairman of houseman llp. michael, welcome this morning. it's good to speak with you. >> good morning. >> ncaa says it's going to appeal. how confident are you that this decision is going to be upheld in the courts? >> extremely well reasoned decision, sound basis in the law, and we're fairly confident that the court of appeals will

sustain it. >> if i'm playing major college football or basketball, can you explain to me exactly how this is going to work? am i going to get paid? >> the way the court has structured the relief, the answer is, yes, if the decision is either upheld, or the time comes when the decision is supposed to be implemented, and the ncaa doesn't get a stay of the decision. >> how is it going to be determined how much money i would receive for licensing my name, my likeness, my jersey, all that sort of stuff? >> well, there's two aspects to it. the first is the court has instructed the ncaa that they cannot stand in the way of colleges increasing the scholarship value to the athletes. right now, it's limited at cost of tuition, where it's going to increase to the cost of full attendance, which it will be

depending on the school a $5,000 to $10,000 difference. over and above that, the schools can set aside a minimum $5,000 scholarship per year for the athlete for each year that they are eligible to play. >> what are the implications then for, say the bigger -- the so-called power conferences, as it's usually described. what does it mean for them? are they able to set the rules here for -- in any which way that they see fit depending on how the courts rule? >> no. the competition would in the marketplace, there are going to be some schools within conferences and some conferences that between conferences that will seek to provide more benefits, and better benefits for the athletes. >> but the better athletes are going to go to the bigger conferences and the bigger schools that are making more money, correct? >> they do that now anyway, yes. >> you don't mean to tell me we would see more of that taking place depending on how this decision, you know, is

ultimately decided? >> no. within the five major conferences, you're still going to have over 90% of the athletes choosing one school over another. what you might have is more competition within those parameters and probably better games because the athletes will concentrate more in those schools. >> you wonder how the recruiting process is going to be impacted by all this. for all those kids who are watching this decision unfold. and try and figure out how it's going to impact their own collegiate careers. >> absolutely. but the most important thing is this opens the door for the athletes to get a true sense of equality within the relationship and the enterprise. not just with the athletic department, but with the academic community, as well. >> some people hear that and they'll say, does this now mean we're going to see more athletes try and unionize like we've seen in certain schools around the country? >> that's a problem that the ncaa now faces, because the

reasons that they've opposed unionization by the athletes are the very reasons that the court has rejected for them trying to gain immunity from the antitrust laws. >> does this ultimately go to the supreme court, do you think? >> it depends upon the ncaa. they clearly recognize that there's a shortfall in their relationship, with the athletes, and in the benefits and the rights of the athletes. whether they want to have a court impose a rebalancing of that relationship, or they want to sit down and negotiate it so that they have a voice in construction -- in constructing the way forward. >> do you think some of the kids will stay in school longer because a lot of the incentive to go pro is that you could finally get paid. do you think they'll stick around? >> that's exactly one of the elements that work against the ncaa's opposition, is that if the athletes understood that not only do they gain educationally but they gain monetarily by remaining in school until they

complete, you know, their degree, yes, it could incentivize them to stay longer. >> michael, thanks for joining us this morning. >> you're most welcome. coming up this morning, stocks to watch, including a biotech company up more than 25% in early trading. then in the next hour, more on rory's big win. his second straight major championship bringing the 25-year-old's career total in majors to four. "squawk box" will be right back. your 16-year-old daughter studied day and night for her driver's test. secretly inside, you hoped she wouldn't pass.

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let's take a look at a couple of stocks to watch this morning. check out mannkind. sanofi signing a worldwide license agreement. the two are going to partner on inhaled insulin. betting it would be an attractive alternative to daily injections for diabetics. stock up about 50% over the last year. actually more. it's almost double. and a number analyst calls. pepsi upgraded to buy from neutral at ubs. the firm says that pepsi is operating with newfound urgency and it expects continued consensus beating earnings. and candy crush maker king digital downgraded by pacific crest securities. the senter outperformed -- i'm sorry, the sector perform from senter outperform. the firm points to the upcoming lockup expiration and the stock's recent run-up. >> coming up a new week from

wall street with the same global hot spots flaring up. futures are hotter. how concerned are the bulls about geopolitics? and a big win for rory and the bigger win for golf. the highlights of the pga championship coming up next half hour. ♪ ♪ over 1.2 billion eyeballs are on us during the two weeks at wimbledon. true tennis fans want to know what's happening. they don't want to just see what's happening, they want to know and understand why it's happening. anybody can just put data up, but we want to get a reaction, make it far more interactive. we rely on the cloud to provide that immersive digital capability. give fans more then just the game with the ibm cloud. the ibm cloud is the cloud for business.

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geopolitics and the markets. how concerned are bulls and bears about ukraine, iraq and israel. or is the focus just on the u.s. economy. >> priceline rolling out results. >> got everything i wanted. always do. >> how investors should view the numbers from the travel website giant. >> and what's up with two buck chuck? >> what in particular really set you off? >> well the whole thing was wrong. >> jane wells has the booze news you can use as "squawk box" begins right now. now -- >> are you going to explain? >> no. did they already have that or was it after i referenced it? >> i'm sure you referenced it.

>> jane was already doing the booze thing. >> we were talking about the people who eat alone story. >> when i drink alone i like to be by myself. welcome back to "squawk box" here on cnbc. first in business worldwide. got that. i'm joe kernen, along with michelle caruso-cabrera. and scott wapner. becky and andrew are off today. futures at this hour are indicated higher. >> man you didn't miss a beat. >> i know. >> on this vacation. >> right. >> presumably because ukraine is not going to hit the fan as bad as people thought. is that why? >> for now. >> for -- >> he's pulled back. putin pulled back in may. everything calmed down for awhile then we discovered he was arming the rebels anyway. who knows. but for now ow cranians are doing very well. >> what's his name? >> putin. >> how do you say it? >> putin. >> what do you say? >> putin. >> he says -- >> manhattan --

>> my "ts" are tough. >> but you're not from manhattan. >> i'm not from manhattan, either. i'm from new hampshire. >> i'm from maryland. >> you are? >> i am. >> all right. tell us about kinder morgan. >> i will, joe, thank you very much. in corporate news -- kinder morgan is consolidating its assets in a $44 billion deal. the transaction will bring all of the company's publicly traded units under a single corporation rather than the current master limited partnership structure. kinder morgan's ceo will be on "squawk on the street" at 9:30 eastern. buzzfeed is expected to announce a new cash injection today that values the company at about $850 million. "the new york times" reports the online medium start-up just closed a new $50 million investment. the "times" says the money is expected to be used for new content sections and in-house incubator and video arm buzzfeed motion pictures.

>> the global market is getting a boost as the crisis in ukraine seems to be easing somewhat. the nikkei jumping more than 2%. in early european trading european markets higher across the board. we're showing you moscow as well which is higher by more than 2%. germany more than 1.5% after going into correction territory last week. france, ftse and italy are all higher. while the situation in ukraine seems to be calming down we're following a very different situation in iraq. embattled iraqi prime minister nuri al maliki spoke yesterday on national tv in iraq making his first public comments since the u.s. airstrikes and he is very defiant. he says he will not step down. in the televised speech al maliki announced he plans to file a legal complaint against the new iraqi president for committing quote a clear constitutional violation. in the mean time this is video of fierce fighting in northern iraq yesterday helped by u.s. bombing raids. the kurdish forces reportedly

overwhelmed isis. we're going to have a live report from erbil the capital of kurdistan coming up in just about a half hour 8:30 a.m. eastern tile. >> and joining us to discuss the markets and the geopolitical worries of the day, brian bellsky, and steven, citi private bank global chief investment strategist. i'll start with you, steve, because i'm sure brian this is not thrown off your bullishness at this moment. get to you in a second. steven what about you? was it these things that caused the 4%, 5% pullback is that over? >> i think it had a good deal. a good part of it. i think these are things we don't look through. i mean you had, you know, the concerns about syria, last year. we had a bit of worry. we had libya in 2011 that created some uncertainty, 6% pullback just around that event. these are things that we don't normally just look through and have no impact. i think the underlying story is very much intact. we have an intact recovery. we've had nearly three years now of 200,000 job gains per month.

i don't think that there's this massive acceleration that's going to go on here. but, the reality is that earnings are rising. bond valuations are, you know, very high. and that markets can make progress after this. >> what would cause a 20%, what just 10%? where woo that come from? >> the next u.s. recession which will probably be here before this decade is out and another recovery. >> that's a stretch isn't it? >> no. >> is it 2014? >> no i don't think it's 2014. >> that's the year we're in right now. >> that's where we are. >> so you're talking about before -- >> i think we have at least two years. i hear more and more that this is going to be and endless bull market that there are no cyclical downturns. i think the evidence we have this year is that, in fact, we have a finite recovery. the unemployment rate has dropped 1.5% over a year down to just above 6%. i think we have a couple years left of above trend growth. >> endless bull markets? when i hear that i get very

nervous. >> that's exactly what i'm saying. that's what i hear more and more that this is -- >> that's bad. >> i think the unanimity in the marketplace, the fact that there's been no range priced into options markets, that everything is supposed to move along very, very tight range, in commodities or exchange, interest rates and equities. that's been a problem. i don't have a problem with the equity market level per se. but the amount of confidence that we're on a very, very smooth path has been a bit of a problem. >> okay. brian. we weren't talking about you. but you kind of think this bull market is going to be going on for awhile. are you tan. where were you? >> i don't know if you know this at all, joe, but it's august, it's summertime. >> there's even sun in minnesota? >> there is sun in minnesota. there's sun in new york, too. i was in new york last week. it's all good. >> so you weren't on -- you didn't go -- were you on vacation? you're tan, brian. go with it. i mean don't be defensive. >> okay. >> where were you? >> the president can go on

vacation. >> where were you? >> no holiday for me. i'm just -- >> okay. you might have one of his clients watching. anyway. tell us about -- you are bullish long-term, right? >> well i think there's a difference between cyclical and secular. i think there's a difference between near-term, short-term, intermediate term, longer-term. i think short-term, many of our investors that we talk to around the world remember we talk institutional and retail investors remain increasingly complacent, and laissez-faire with respect to u.s. stocks. that has us worried on a short-term basis. last week was very normal, much-needed healthy. if you take a look at the last big secular move in u.s. stocks that we saw between 1982 and 2000 we had several cyclical downturns. i think we so see a cyclical downturn at some point. i think the recession that could be talked about, and has been talked about here on air this morning will be signaled by any

kind of inversion in the yield curve and we're not going to see that for a long time. so i think what we're seeing right now is kind of classic august trading. yes there's issues on the geopolitical front, but i think what's happening in u.s. stocks is that we are in the midst of this transition away from qe and more towards fundamentals. and remember, as i said several times, we have reared an entire generation of investors that all they know is that you buy stocks because the fed is quantitative easing and as interest rates start to tick higher for good reasons because the economy is improving there's going to be a part of the investing base that has a hard time understanding that and actually longer-term that is very, very good. >> near-term, you don't think stocks are done going down. >> i don't. i don't. mr. wapner. because, on friday was one of these snapback oversold bounces not a lot of volume, a lot of clients were out on friday, a lot of clients are out today in this -- this week and next week

really is kind of the last few busy weeks of trading. the last week of august will be like christmas and hanukkah. there's not going to be anybody around. so i think that this is kind of classic market stuff where we see this pullback on low volume in august, remember, as i said on air a couple of weeks ago we have a busy calendar season in terms of banking in september and october. we have a huge conference season. we think that quote unquote maverick will re-engage in terms of investors getting back in the market in the fall and we're going to have a nice rally in the fourth quarter. but we're still very comfortable with our 1900 target for the s&p for 2014. >> when's jackson hole, brian? because we don't want to forget about that, right? >> jackson hole is coming up and you're going to have -- >> that's my point. it's like it's not going to be a dead rest of the summer. what happens in jackson hole could go a long way to deciding in some respects where this market goes certainly in the near term. >> yeah, that's why i think

august could be a bit volatile. i think it is at the end of august, september. again if you look back historically, this period of time really is traditionally the weakest part of the year, in october is actually pretty good. the thing that bothers me on the near-term basis is that hardly any client, in fact no clients are talking to us about seasonality and that's really points to what i talked about in the very beginning part of the segment, there's a lot of complacency, lazy fair, oh, yeah the u.s. stock market is doing fine. that's a real issue on a near-term issue and we say investors could be surprised again just like they were surprised last week. >> you mean laissez-faire or blase. >> you get confused in minnesota. >> did we resolve everything about russia ukraine from these reports? >> my question was going to be, what eventually does cause 10% or 20%, i would say it's not going to be something we already

know about. >> it's bigger than 10%. >> bigger than 10%. >> we can't even get ten with the fed, you know, doing $35 billion. >> that's about some sort of meaningful, you know, pullback in prophets, product, employment, these sorts of things happen around cyclical downturns. again it doesn't have to be disaster like 2008, 2009. that was really exceptional. but there will be some period where the economy retrenches again. that will be a bigger event than this 4% move. >> i don't know what the fed is supposed to do. brian when you said s&p you're comfortable with 1900 you don't think we go anywhere from here? >> no, i don't. we end -- >> at the end of the day -- >> yeah we're till very comfortable with 1900. we think, we said in the beginning of this year that the first half would be very strong in terms of stocks, a little bit more weaker and volatile in the second half. that's exactly opposite of what everybody else said. i think stocks lead earnings which lead the economy. the stock market has told you that earnings are going to be up and the economy is going to be improving. now stocks need to take a bit of

a respite and this is all very normal. this is very, very normal. the stock market can have a cyclical downtrend without the economy rolling over. events like in 2011 with the super committee and things like that that shake the markets and we had events in february of 2011 and 2012 in terms of japan and some other issues. the market can go down and not just because earnings are slowing down. the market can go down because investors are blase. not laissez-faire. >> sustained is the difference i want to make. summer drops we had again as britain just said in 2010 through 2012, average 13% and they were quick and then they came back and those sorts of things the sort of volatility in the summer the third quarter is the only quarter that averages down for global equities. i think that's a very fair complaint. brian also made the point that you know in this cycle so far, earnings have risen 35%. share prices, last i checked, were up about 25% since 2007. despite qe since 2007 there's

been a valuation drop. in the u.s. stock market. and you know, the fact is though that we've eaten a lot into the future economic growth and profits as this recovery has lasted. >> okay. all right, brian. bank of minnesota, it's not, is it? bank of montreal. >> bank of montreal. be careful. >> all right. >> close. they're close. >> right up there. >> lakes. there's lakes. and steven, i still call it citigroup. they say it's got to be called citi. we don't have to do everything, jump say how high on the way up? citigroup, isn't it? >> a number of iterations. >> is it not citigroup? >> citigroup i think is the company name. the name of citi when you buy the stock. >> no. >> good to have you. >> thank you. >> anyhow. >> coming up priceline rolling out results. the travel website beat the

street but current quarter guidance fell short. is the stock a buy at these levels. a breakdown of those earnings on priceline is next. and what's up with two buck chuck? booze news, and check out the "squawk box" market indicator. there it is. futures on the dow, looking pretty good along with the s&p. what if there was a credit card where the reward was that new car smell and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com in a we believe outshining the competition tomorrow requires challenging your business inside and out today.

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welcome back to "squawk box." futures right now suggesting we would have a positive open. making headlines exxon mobil has begun drilling in russia's arctic. this despite sanctions imposed on rosneft. vladimir putin hailed exxon as a model of quote, cooperation. u.s. sanctions aren't meant to halt joint projects by russian and u.s. companies but they are meant to slow down the transfer of technology to the arctic, to shale drilling, et cetera. priceline reporting better than expected earnings but the guidance is giving investors reason for pause. joining us now on the "squawk" news line is aaron kessler, raymond james senior internet research analyst. well he com. is that what this is about this morning, the pullback in the stocks? because the earnings look pretty good. >> yeah, we think guidance is usual for priceline. fairly conservative we think we

saw that in q2 and we would characterize q3 as somewhat conservative as well. >> but the street was expecting somewhat conservative guidance. why is the stock down on it? >> the stock has rallied. we had upgraded last quarter around 1100 strong buy and had a nice rally up over 10% since then so i think the pricing in some of the positives on the quarter. maybe just a little slight lower guide versus expectations. down by 1% premarket. >> sure. does that mean that you would buy on any dip at this point? >> we would, we have a 1500 dollar price target we maintain our positive buy for priceline. >> i mean if there is an issue, you're not concerned at all about any sort of decelerating growth? there are other competitors in the space that priceline has to compete with whether it's expedia or orbitz among other not publicly traded companies. >> it is a slight deceleration in growth. still saw up 35% in q1 and q2

about 35% in q1 but still around 35% year over year. so we think stocks more than discount the expectation of slower growth going forward. >> what is the investment going to mean as priceline looks to get more inventory in to its stable? that's what this seems to be about. and also targeting a heck of a lot of potential customers. >> exactly. yeah the priceline ceo commented on their conference call that china is an increasing percentage of their bookings that they're seeing on their booking.com platform and they think that going forward obviously in the future, increasingly both the increased chinese customers as well. so priceline's the leading ota travel agency in china, and this is a key relationship we think for priceline strategically longer-term. >> is competition an issue i mean between expedia and orbitz? >> competition is always an

issue. one way we would see that in the advertising line for priceline. you did see slight deleverage about 50 basis points of deleverage year over year in their online advertisement. so far priceline still benefits from a lot of district traffic to its website. and so so far you haven't seen much deleverage in their advertising on investment. >> this was the first earnings report as well following the open table acquisition, correct? >> correct. they did acquire them in july -- some of those numbers in q3. we are positive, we think priceline is going to be relatively part of priceline's earnings in the near term. >> you won't get a real good read until next quarter, correct? >> correct. >> wonder if the stock ends up turning around today. only down 1% or so on the stock is as high up as this one is. maybe it wouldn't surprise you if we end the day positive here. stock at 1267 only down 1% if some of the concern is on guidance which was expected to already be conservative i think there's more positive to chew on

sounds like you're saying than negative. >> you know, quarter was strong we were kind of looking for kind of a mid 30s international bookings number which they hit so that was kind of a strong number there. so i think not as much slowdown of international side maybe investors expected so we think that will make a key metric and that was positive in the quarter. >> gross bookings up 32% year-on-year. the outlook is 19 to 29 and some people will certainly find concern in that but they'll be looking more towards the international booking outlook right? >> correct. booking guidance of 21 to 31 they put up a 35% number. we think the q3 guide, as well. >> aaron, thanks a lot. we'll talk to you soon. >> thank you. >> joe? >> coming up drama at the pga championship rory mcilroy comes roaring back for an amazing finish. and when they took -- and actually took the actual darkness and took the lenses off. it was dark. if you looked out the window

where we were and it might be a little lighter i guess maybe in kentucky, but man it was dark out. >> i did the same thing looked out the window and imagined how they were possibly playing golf. >> and tragedy at the track this weekend. the fallout from tony stewart's horrific accident that left a fellow driver dead. "squawk" returns in just a moment. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

in "squawk" sports news, rory mcilroy making it two majors in a row winning the pga championship last night. a weather delay meant that the final holes were played under a dark sky. mcilroy becomes only the third person to win a fourth major by age 25. joining tiger woods, and jack nicklaus. >> wonder if that putt would have lipped out in the dark? >> that putt was fine. it was the first one -- >> still. >> -- he felt bad for rickie because rickie that last putt of his went in, went all the way once around for the crowd. >> i saw a stat this morning that rickie, rickie fowler who was on this show ten days ago. two weeks ago. finished in the top five of all four majors, the first time in the masters era since like 1934 that that's happened where the player who did that didn't win any of those majors. >> yeah. and you would have to say that

like he that week that kaymer had, if he wouldn't have had that week that would have probably been rickie fowler. and he's, you know, his day will come. he's only 25, too. >> he's going to be like one of those now the next best player never to win a major and he's only 25. >> great attitude. he hit it in the water on number two and immediately came right back with i think birdied number three. and you know, got a good bogey on that hole. those guys they're hitting -- we can't even understand hitting a 4 iron 245 yards. can you? >> no. >> i can't. i swing so hard -- >> these guys arating 8 or 9 irons 170, 180. >> i know. >> 290. about an iron. and now we got to go, sports normally you don't have to -- >> this is not -- >> get very, very serious very quickly. but we do in this one. >> we do. in other news a horrific car accident on the track. tony stewart struck and killed kevin ward jr.

we talked to nbc sports dave briggs earlier this morning. he told us nascar officials will look into whether stewart may have hit the throttle. some are wondering why stewart was racing on a dirt track the night before a nascar race. "usa today" reports when stewart raced for joe gibbs racing from 1998 to 2008, he was restricted from driving in series outside cup, and the chance to be his own boss was one of the reasons he became a nascar team owner. >> this is like an extracurricular -- this is just going back to his roots and having fun. but wish he hadn't -- >> i think of all the guys -- of all the big names in nascar, he may be more than most is one who races in many different places outside of the typical -- >> in all your -- in all your fast money shows you never had kananduiga kind on? >> did i just destroy that? >> it's a -- >> was i close? >> no, not really.

that's okay, i'm used to it. but cananduiga is a big wine company, a listed stock. i thought at some point you would have said -- >> it must be a slow money play. >> hasn't been a big money -- >> okay. >> you're right. >> it wasn't been one where your viewers would have made a lot of money. >> exactly. >> coming up, payoffs in baghdad. fighting in northern iraq. kurds taking on isis with the aid of u.s. airstrikes. we're going to have a live report from erbil the capital of kurdistan next. and take a look at u.s. equity futures. they suggest a positive open.

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all right, welcome back to "squawk box." let's look at some stocks on the move in premarket trading. dean foods getting hit hard. the company reported a second quarter loss of 14 cents per share. that's 8 cents wider than the loss the street was anticipating. it withdrew its full year guidance as well and said it's in the midst of the most difficult operating environments in its history. krispy kreme was upgraded to outperform from neutral.

at wedbush. pacific press began coverage on automaker tesla with an outperform rating pointing to growth prospects that the firm calls underappreciated. and food services provider aramark beating estimates. one interesting note, its initial public offering in december was the third in its history. it was bought out on two different occas person merger push through to regain some territory that they had lost. two strategically important towns. they're important because they're only about 30 minutes away from here, which underlines just how close isis got to penetrating what has long been considered the safest part in iraq. so now that territory has been retaken. the question is can the peshmerga hold it and push on. we just learned from nbc news that u.s. officials have said the cia will not now be directly

arming them which will help them massively because they have been so outgunned by isis who have heavy weaponry that they took from the retreating iraqi army and the iraqi army bought all that hardware from the united states in the first place. >> military situation which is pretty horrendous. the political situation as well with nuri al maliki going on television late last night very defiant saying he's that going to step down talks about whether or not there was a coup attempted coup is there anything to update us about the situation in baghdad and whether or not they're going to finally have a government? this is exactly the kind of infighting that president obama and the administration does not want to see coming from baghdad. nuri al maliki going on television saying he intends to serve another term criticizing the country's president and at the same time some condition fused reports coming out of baghdad of security services and policemen loyal to nuri al maliki taking up positions on the streets which all kind of

lead to the conclusion that maliki is digging in to power that he's not going to give up his office easily. but it's exactly what the international community does not want because they would rather a consensus government one that can finally perhaps unite sunnis, kurds, and shiites, so that the iraqi government stands united against this threat from isis. >> duncan, thanks so much. duncan joining us from erbil. this was so shocking, joe, last week to hear that erbil could be taken over by the surges. when we went there i don't know if you remember becky throwing to a live shot saying wow it looks really calm, the traffic's running because it was, and it always has been. >> as you pointed out the economy collapsed, right after they got no oil. >> right right having a big fight with baghdad. supposed to get 17% of revenues. everything's kind of stopped. they have other issues as well. >> we did think that the kurd stanley guys we thought they

were not roll over as easily as maybe some of the -- >> the peshmerga were a far better fighting force than the iraqi fighting force for sure. while we were there we got some suggestions that maybe they're not as good as you know the myth and they could have gotten this just this mythical tales within all the newspapers about how great they were. and they are very good but they haven't actually been in battle for a very long time. they haven't been equipped. so there were some sources within that group telling us it's not as good as it looks so maybe it wasn't as surprising to see them fall to isis. >> when did you join cnbc? more than a decade ago. >> what year though? >> 2001. 2003 or something like that. >> in the year 2000. in the year 2000 canandaigua brand changed its name to constellation brand to better reflect the scope of the company.

constellation brands is a huge, huge company. >> yes. >> but the predecessor -- >> constellation brands -- >> but the predecessor to constellation for years, though was canandaigua, which is that's just -- once again showing how -- >> -- >> i'm just showing you since 1990, when was -- so you know for nine years i said canandaigua brands which is why i would know the track at canandaigua for you i'm giving you an out. >> because your time you came after the change. >> how you could never have seen wild, wild west. >> i do -- >> -- reports. >> and then they freeze the drawing, and right before -- >> he was the sports reporter, remember? you were sports business. that was fun you enjoyed that, right? >> yeah. >> all right. >> the reason we're talking about -- jane wells, jane we put her on bacon and booze. >> it's great. that is a great piece, isn't it? >> and pot. >> yeah. >> she covers pigs, plants --

>> bacon, booze and pot. i don't know what order. any order is good. >> oh, she's listening now. am i right or am i right? >> you're right. you're right. but you know what? i know wild, wild west. i had the biggest crush on robert conrad. but that shows that i'm 150 years old. >> do you remember those tight pants he'd wear. >> oh, yes. >> and the jacket that would come up to here. >> and the blue, blue eyes. yes. >> oh, it was in color? >> and you would have gotten on that train. they had a luxury -- >> of course! >> the wine brand? >> huh? >> go ahead, jane. >> okay here's what we're going to talk about. it is one of the most popular products ever, two buck chuck suddenly a blog shows up suggesting there's animal blood in it and the man behind it sees red. after the break we're going to have the story, and the man, when "squawk" returns.

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wild, wild west. >> don't you remember that show? >> you know there was a movie remake of the show. do you remember the movie remake starring will snith? >> right. will smith. >> jane -- >> welcome back to "squawk box." futures right now are positive. let's get to jane. >> yeah. >> forget this next story, too? >> oh, no, go ahead. >> you'd scare jane.

she'll probably need a drink after this. >> a bad end to the weekend for two dozen amusement park riders at six flags america in maryland. they got stuck aboard the joker's jinx roller coaster. 79 feet above the ground. rescuers climbed to the stranded riders. handed out umbrellas, too. to protect them from the sun. no injuries were reported. >> good. >> that's what i said i'm glad, here's a umbrella, jump. take your chances. >> sounds like mary poppins, right? >> exactly. all right. jane, now we can -- jane i needed you here all morning. actually. but, tell us about -- we're going to talk about this it really is two dollars is it regular proof see instead of i don't check how old wine is. i immediately go to see the alcohol content. 20-20 or something isn't that more important than the year it was made i mean really? thunder bird? >> i -- there's so many questions in that comment that i think i'm going to --

>> this is -- >> 12.5%. >> and you know i could go into the whole thing in california how they're going towards higher alcohol wines and now there's backlash against that. but that's not this story. this is an incredible story. what happens when an obscure blog from the past reappears on a major website attacking the production process of a multibillion dollar product? trouble. >> he didn't know what he's talking about. never been in a vineyard. doesn't understand it. >> fred is the man behind charles shaw, aka two buck chuck, which has sold 800 million bottles in twelve years at trader joes. okay a few days ago there appeared and the huffington post a blog by chris noth placed by another website quora promoting its own content. the blog suggested two buck chuck is cheap because of harvesting by machines which collect birds, and bugs, and wrote the wine ended up with animal blood in it.

francis says that's not true the machine shakes everything free but the grapes. i would assume generally, in anything we eat and drink that's grown in agriculture there is some residue of, of feces is a strong word but you know what i'm saying. bits and pieces -- >> no you worry about things like that you shouldn't eat anything, you shouldn't drink anything. when wines ferment they're going to eliminate anything that's possibly there. >> has trader joe's called? >> trader joe's is concerned about any media that's incorrect. but they have to deal with it all the time. they're professionals. >> the website where it posted, the huffington post, has taken it down. >> they should. they should be ashamed of themselves. they're the ones i should sue. they're the ones that were stupid enough to print that type of crap. >> now mechanized harvesting has become more common. but while he can be a polarizing figure he has a lot of

supporters. >> people have weird imaginations and they may dream it or think about it and then they consider it's fact. part of our job is to make sure that the facts are correct and accurate. >> the huffington post and quora took down the post after we asked about it telling us upon further review it violated their terms. we tried unsuccessfully to reach the author, chris noth. on a facebook page a man who appears to be him said he wrote the blog off the cuff flee years ago and admits he has no evidence there's animal blood in two buck chuck. no word yet from trader joe's but the train has said that charles shaw, which is no longer two buck, remains one of its most popular items. >> i was wondering about the price if they managed to keep it at $2. >> it's at $2.49 in california, and $. 2.99 in other laces. >> anybody that imports spices knows about like they even have a name for it rh -- but there is rodent hair levels in just about everything, 12% have rodent hairs, bug parts, i mean you

just sort of -- i mean it's protein isn't it? >> well, it's not -- look, plus it's fermenting. it's alcohol. whatever is in there is going to get cleaned out. but there's a filtering process. mechanized harvesting is not just grabbing the entire vine and throwing it in the bin as some people think. it's increasingly popular even in napa as an efficient way to harvest grapes, as these machines -- >> if you go on the huffington post you would eat no meat, no dairy products, you have to be a vegan, you never step into a car and you certainly would never take a plane because of the carbon foot -- basically if you read what you're supposed to do there you've got to lock yourself in your room and eat tofu. >> in your 10,000 square foot house that you're heating and cooling. >> and you certainly should be sterilized at some point so you don't bring mother person into the world so their carbon footprint -- the huffington post. >> we've got this fred coming on here and he's pretty

controversial? >> he is. and he doesn't -- doesn't suffer fools lightly. but at the picnic i was at, lunch milled with mondavis, people you have peter mondavi sr. there. i felt like i was in napa dynastica royalty. because franza is ernest gallow's nephew. >> joining us is fred franzi. good to have you on. >> thank you. >> you know, i was reading this old blog post and besides all the stuff about the bugs and everything, i chuckled because he says, he's planted his grapes in such a way that they get the most sun exposure and he's made the rows as long as possible, minimizing the number of turns his tractors would need to make. as if that's all a bad thing. as if efficiency and progress should be outlawed or make it less drinkable. i mean, he was just out to get

you it sounds like. >> is there a question? >> i was -- that's called a softball where you're allowed to rant if you want to. >> oh. well, i'm interested in people not realizing that wine is a food product and we treat it as such. >> how do you harvest the grapes? >> well, with machines. and we -- 7% of the grapes in california are harvested with machines. not just us. it's not unique to bronco. >> how mad are you about this situation? >> oh, i think it's really -- it's a nonissue it's so ridiculous, it's not worth even getting excited about. but other than people like yourselves want to talk about it. it's good to get the facts on

the table. but somebody can write a crazy article and it gets picked up with no merit whatsoever to what's really happening in the world. >> are you going to sue the huffington post? they have pretty big pockets. we have the ceo of aol every quarter almost talking about their earnings. up. >> well, they're off base. they should have done some research or something. print something that was made up three years ago, that is an insult to their -- it should be, to them for even carrying something like that. >> yeah. >> i know i think a lot less of them. >> will you sue them? >> i don't see them anywhere, they don't have any credibility to put something out without fact checking it or looking in to what's the real truth. i mean what else are they putting out without any research or really truth behind it? certainly missed this one by 100 miles. >> you're a big entrepreneur. you've done some great stuff

with wine. what's the next big thing for you? >> we are smart enough to do two things at one time. we try to work hard at making the best quality wines, and most efficient price we can, to give the consumer an opportunity to drink good wines every day. that's our objective. >> but you know what they say, sir, that perception becomes reality. you must be concerned, even a little bit, that the brand equity that you have in what everybody knows as two buck chuck, is somewhat damaged or has the potential to be damaged as a result of this. don't you? >> no. i say contrary, you know, there's a -- over the last ten years, we've sold over 800 million bottles. we're looking forward to selling our billionth bottle based on the exposure. one of my trucks are just leaving the place here today.

you know, people get the truth, and enjoy it. >> well, they certainly -- the consumer has certainly made it very clear they voted with their dollars, or their two dollars or their $2.99s as it is right now. so great to have you on fred we really appreciate it. >> okay, thanks. coming up jim cramer from the new york stock exchange. we're going to find out what's on his radar this morning. and then coming up on "squawk on the street," darren huston. [ male announcer ] don't just visit miami.

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so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. welcome back to "squawk box." futures suggest we'll have a positive open, dow would open higher by 55 points the numbers of caught fish, one of the most important fisheries in the northeast, hitting an all-time low. national marine fishery service estimates the amount in the gulf of maine 3% to 4% of its target level, down from 13% to 18% three years ago. low levels of reproduction holding back repopulation. down to the new york stock exchange, jim cramer joins us now. we did, what, 4.5% or so, was that? still in the throes of some

retrenchment here, do you care? >> if you look at what's going on overseas, i'm not sure ukraine is done. but right now, at this very moment it's cooled. i think that the president seeming to be more forceful, rolling back isis with the drones, three trucks blows up isis, raised great points. how big is isis in maybe isis isn't big. three strikes against three toyota tundras? i don't know. but, certainly viewed as being good news by the investment community. >> jim, to your point whether or not it's done, the head of nato just out saying that, troops have not pulled back from the border. they see no sign of withdrawal from russian troops close to the board, though that's what moved the markets friday so sharply. >> i don't expect that to happen. i'm waiting for some clarification in the crimean base, that has to happen, waiting for clarification in the ukraine's gambit. y

ukraine trying to call putin's bluff. german earnings are coming down international companies not looking that good. i expect people short coming in will say, hey, maybe things are getting better and they've got to cover and then we see what fundamentals are again. >> we can't just get rid of -- i like august, jim, but it's something we have to sort of get through in terms of activity and everything else. we're not quite europe but we come darn close at times. >> you're dead right. president's away, it's incredible downtown you feel like it's columbus day or some holiday where there's just some people working and you're incredibly conscious of the fact things are thin. we get one big futures buyer coming in that could move the market, one big seller would make the market look much worse. everything's going to be magnified and people at home recognize every year seems like fewer people involved in the stock market. days like today seem like, well, you know what?

go to the riv e eera. >> what do you make of priceline this morning? >> the history of priceline has been the moment they come out, typically they report in the evening, what they do, blow up the number, give you terrible guidanc guidance, people are freaked out by the guidance, ceo comes on, cooler heads prevail and the stock ends up $10, $15. >> did you like at the kinder deal? >> we have rich on. >> i love it the way -- the company that's doing the consolidating and paying out all of the money, i guess the stake goes down quite a bit, too -- >> it's -- people said he would never do it, it would hurt rich. people said it's self-irk, though they takes a dollar a year, nerve sold stock, he's a hypocrite. he said, look i'm not a hypocrite, i'm not selfish and i'm going to make you very much money and i'll make money, too. i can't wait to hear rich come on. there was a considerable short base building because people femme rich wasn't doing a good

job than was a mistaken short. >> beautiful action in all five stocks, i think. >> yes. you've got rid of the incentive distribution rates what you needed to do to improve the cost of capital. good move. >> see you in a couple of minutes. >> thank you. general mills able to roll out its monster cereal as run-up to halloween. cereals that will creep you out about fall. i don't want to talk about fall. it's august. ♪ ♪ developers are all about speeds and feeds. it's all about latency. it's all about how fast does it run. i often sit with enterprises who ask me about how mission critical and how's the performance of the cloud. and i tell them, if you can make gamers happy, you can make anybody happy. speed is made with the ibm cloud. the ibm cloud is the cloud for business.

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general mills monster cereal's back in stores with a twist this year. owe you. thoe count chock cue la, frankenberry. >> boo-berry, began shipping last week. ready to reveal this year's boxes. this year's artist at dc comics home of superman, batman, wonder woman, justice league depicted the namesake cereal characters. feature dc comic strips on the back of each box. favorite spooky cereals with a dc comic twist. get them while they last. i like boo berry.

ever had boo berry? >> iger talking about marvel, it is real. it's now so happening. i saw the movie, it was good, cool. did you see it" guardians of the galaxy" a huge franchise. >> that's the key thing you, can make multiples. >> merchandise. throw "star wars" in. >> comics on the back, marvel comics of the back of the cereals. >> that's dc. >> sorry, sorry. sigh, girls don't know this stuff. >> yes, they do. she said that. make sure you join us tomorrow. "squawk on the street" is next. you'll be here. >> i will. >> same here. ♪ ♪ good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer david faber, back from a week's vacation, at new york

stock exchangen markets up all around the world. futures point to up open on the back of friday's rally, the best day for stocks in months. big week for retail earnings as we watch global political tensionsing of course. ten year yields around 2.42. stan fischer on the tape from sweden