"squawk box" starts right now on monday, may 11th. this is "squawk box," live from new york where business never sleeps. ♪ ♪ good morning, everybody, and welcoming back to "squawk box" here on cnbc. congratulations to ring -- ricky fowler for winning the players championship. many are calling it the greatest win. he played the final six holes in six under par. there was a three hole play-off at the end and a sudden death play-off win over kevin kisner. first of all, let's get down to business. check out the u.s. equity futures right now. it looks like at this point some moderate declines. dow futures are down about 31 points below fair market value. the nasdaq is down by 9.5.

euro zone finance ministers are meeting today. the gathering comes amid slow-moving talks on a deal with greece's creditors. germany's finance ministers says his country will do everything he can to keep greece in the eu. uber trying to raise more to value the company at $50 billion. facebook was the only other company to reach that valuation. an alibaaba buying more online retailer zulily to take its stake to 9.2 percent. the chinese ecommerce giant not looking to acquire zulily outright. the big global market story leading the wall street journal,

china cutting rates again. good day. how are you? >> reporter: it's 6:00 in the evening here and i'm doing well and this is the third rate cut that we've seen in six months and probably going to see more. the economy here as you guys know is slowing down but most people are getting more and more concerned that the economy is rapidly losing momentum. the april data so far has been disappointing. the trade figures as well as the inflation data out over the weekend, and that bodes poorly for the data that we're going to see this week and as well as the second quarter. so over the weekend, we saw the central bank deciding to cut interest rates by 25 basis points, the one-year lending rate is now at 5.1% and the deposit rate stands at 2.25%. now the central bank said that they see a heavy downward pressure on the economy here and they are hoping to decrease the

debt burden for companies as well as governments and as much as they want to shore up the economy, they also said that they are hoping to deepen structural reform. so another decision that they made over the week was to allow more flexibility for banks to set their own interest rates on deposits. it was interesting because it allows some of the healthier banks here to compete more effectively for customers. it's a way to really inject more competition in the entire financial industry. so overall, that's what people were talking about today, and overall, though they are expecting that we are going to see more rate cuts as well as rrr moves, just to try to pick the economy up. >> we're watching i can tell you that much in terms of whether there's a property bubble. over here, we never know if daylight savings time messes that up.

>> it's a pretty easy for me. >> 12 hours. aren't there 24 hours a day, except for daylight saving time there's an extra hour? >> there are, there are. yeah there are 24 hours. >> you always say that. >> no. i always say it's a longer day. it's a longer day but not a 24-hour cycle daylight. it's a longer day. it's a longer daylight hour. >> this is turning into a long day if we're going to argue about this. >> oh, really? >> 12 hours. i'm putting that in the old nothingin' -- nogen here. also the china passing the u.s. of the world's biggest importer of crude oil last month. congratulations. >> a dubious distinction. >> you can have it. from overseas hit a high point of 7.4 million barrels a day. 5 u.s. companies are hoarding nearly half a billion dollars in cash they are all

sitting on more than a quarter of the total $1.7 trillion being held by u.s. companies. up from 57% a year ago. an article suggests that u.s. tax code and the global economy are deterg about businesses from spending their cash piles. we showed you there are some moderate declines in the futures. s&p futures down by 4.5 and the nasdaq is down by 8. this is coming when the dow actually finished up by 0.9% last week. europe the big news there is the meeting of the euro zone ministers. they are meeting to talk about what to do with greece today. that comes ahead of tomorrow's deadline when greece owes another $750 million euros are due. they are claiming they are making that payment but it's not clear how.

the cac in france is down by 1.3%. you can see ftse is hanging in there up about a quarter%. in asia after these moves from china overnight to actually ease some of the lending rates and the deposit rates as well, you can see that the hang seng was up about a half percent. the shanghai composite up by 3%. the nikkei in japan up by .35%. when it comes to the ten-year let's check out the ten-year note at this point. it looks like it's yielding 2.173%. in term of the currency markets, it looks like the dollar is up against both the euro and the yen. dollar sitting at 1.11 -- the euro sitting at 1.1117. let's talk about a fast rebound from those very low levels that we had seen just a few moments ago. gold prices down by $3.

wall street starting a new week, hoping to keep the rally going. friday goldilocks jobs report came out. monica disenzo is here and morgan harass is also here. monica, i didn't think that there was a number that could make the street incredibly happy on friday. i was wrong. it hit it perfectly in terms of expectations. what's the market expecting now? >> i guess we're easy to please. i guess people feel this is the number that we saw is maybe just a blip in q 1. this is obviously getting people excited. if you look at what performed well on friday you saw it had a nice bounce. and the answer seems to be the market thinks yes. >> the markets seem to think that things are improving.

maybe it's a temporary blip. they don't think the fed is going to be moving in june. >> no. the reason they don't move in june is because they have not seen enough evidence yet that wages are picking up. i think they will see that evidence by september, but they won't see it in time for the june meeting. >> so this is again that goldilocks scenario. things are improving but the fed is not a believer just yet. that's why the market is firing on all cylinders now. >> this is a crazy market. if you have really strong economic numbers that would suggest the fed tightening would be imminent the market would sell of off. give them sort of okay numbers and they love it. >> you point out in their research, the four-week average of unemployment claims is at the lowest level since the first half of 2000. what's that telling you? >> it tells me that you are going to see wage pressures pick up. that when unemployment claims are that low, that's a foreign

indicator. >> you can see it. god forbid they have to actually anticipate something. you know it's coming by september. you said they don't know but i know, it's coming they will see by september it was coming. they couldn't possibly anticipate that it was coming and make any forward-looking assumptions, right? it's weak. everybody else knows it. corporations are talking about it right, they have plans for wage increases for the year? but the fed, they can't anticipate it? they can't listen to mory harris. >> these people have dot the i's and cross the t easy. >> that's why they get behind the curve. >> exactly. >> does it lead to problems? >> it can lead to problems because you have to play catch up later on. >> do you think it leads to a problem this time around? >> this time, probably not. >> so they can't anticipate that but she knows that stock prices are too high you can make forecasts about that but not about whether wage increases are coming? >> well, if you think wage

increases are coming maybe you won worry as much about stock prices because it's good for the consumer discretionary sector. >> i don't know why she would go out open a limb for that and not on the wage prices going up. >> it's two different assumptions. one is just saying stocks that you buy and one is actually doing. >> the feds are saying stocks are too high. >> one of them she should actually have an opinion on and the other one she shouldn't have an opinion on. >> i'm not disagreeing. >> it's one thing to talk about something. it's another thing to do something. >> to act on that initiative. >> to actually act on it. >> monica last week we spoke with warren buffett who pointed out, we ask him all the time what he thinks about the markets. he says i don't know if interest rates rise from here yes, stocks are overvalued. if they don't, then no they are not overvalued. they could be potentially continue to climb from here. what's your thought on where the market is right now and how does that tie in on what happens with interest rates? >> sure.

we think ballpark the market looks about fairly valued. there are sectors that look expensive for relatively low growth. like a consumer staples, for example, there's a reason why people are willing to pay a premium for stability and high yields. when i look at those companies that have low growing, it's hard to pay for those. >> what do you think about tech right now? >> i like tech. tech is one of those controversial sectors. people are going to point to those seemingly high multiples which look very high until it actually happens. growth tech looks a little more interesting. we got to be selective. some people are a little nervous on some of the public market valuations. when we look across the space, we see it growing across the sector. >> what is apple?

is it a growth technology stock at this point? >> i think it's somewhat hybrid between growth and. /* -- we would find a very similar type yield for a fraction of the growth and actually pay more for it. it's an interesting disparity in my mind. >> meaning that you think apple is fairly valued at this time? >> for the growth it looks fairly value. when you are paying a fair value and your rurp gets growing, it should be proximately that growth. the question is what do they do with all this cash. >> thank you for coming in. >> coming up whrk we return president obama slamming elizabeth warren on trade as the center prepares to debate the issue this he can week. here's a look back at this date in history.

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welcome back everybody. european dignitaries gathering in russia over the weekend. jeff joins us this morning from moscow and good day to you.

>> what was noticeable i think was the absence of key players here so we didn't see any high-level representation from the u.k. from france or from the united states at the military parade in red square and this was the biggest display of russian hardware since the end of the second world war to commemorate victory day where the russians themselves lost 27 million people. so no attendance and that to do with the ukraine and the ongoing dispute over sanctions. angela merkle the german chancellor did arrive on sunday it was a very low key affair and she presented a wreath at the tomb of the unknown soldier. one more thing to tell you, xi

jinping stood by vladimir putin. the chinese inked deals worth $25 billion. perhaps another sign as relations over the ukraine remain chill they are thought and -- thawing and improving with the chinese and president putin didn't miss the opportunity taking swipe at president obama, being critical of the american approach of what he described a uni polar. back to you. we've talk about china has overtaken the united states as the biggest importer of oil. that's fairly striking seeing those two leaders together. china and russia. >> absolutely. as you know they signed this deal back in may. it was a $400 billion deal for the russians to supply gas. . the relationship with europe has been techy over gas supplies and the europeans have now taken

action against gazprom over what they see as anti competitive activity, in the deals that were signed this weekend, there was an extension of that year-old gas deal. what's notable though at this point not too much progress made on shipments of crude directly to china. that's something that the russians appear to be dragging their feet on at the moment, but clearly the chinese have a very thirsty appetite for the black stuff. back to you. >> thanks very much. >> it's only 1:00 there? >> where, in russia? closer. >> closer. far west of -- i'm learning a lot. far west of china. five hours less. the senate is set to hold a key vote on trade this week. elizabeth warren is saying trade deals hurt the u.s.

president obama is stating his criticism. the strangest bedfellows that i've ever seen on this fight. people with differing opinions like sessions on the republican side, go all the way as far left as you can go on the progressive side and you've got president obama somewhere left of center we might disagree on that. totally opposed to the two on each side. very weird. very weird, john. >> it's a deal where presidents of both parties have come to conclude that expanding trade is part of what modern economy means. you've seen raegan bush clinton, bush all pushing forward on these deals. you've had china and wto in the clinton administration.

one was passed in 1994 when democrats were in control of congress. one was passed when republicans controlled the congress now you see president obama in a rare alliance with mitch mcconnell and john boehner. i think they are pretty confident they are going to get it done but elizabeth warren is a force in the democratic party and labor unions are a force although their influence in party and american life has been dwindling. you have to consider the president and the republican leadership favorites to win this fight but it's not over with. >> john what was your major? >> history and economics. >> so you know -- you've heard of this guy adam smith, 1776 was quite a year for a lot of different reasons. you've heard of comparative advantage. >> yes. >> i thought it was almost every economist agrees that it's like individuals that trade with each other? every individual doesn't make sense for him to produce his

clothes and produce his energy and produce his food if other people can do it more cheaply, it's better to trade with them and then everything works and it's the same with nations, and i thought this was proven beyond a doubt about 300 years ago -- >> remember presidents have different constituencies than individual members of congress and senators. >> why should you allow wrong minded misguided thinking, which is really done a lot of times to political issues? why should that -- and the public which probably isn't that -- i don't know how much of the public have heard of comparative advantage and things like that so they can appeal to the basest instincts of the public -- >> what do you think politics is joe? >> yeah. it really is. we're going to have man q on who wrote a piece on this. most economists agree that it's pretty clear that this works.

it's not just exports that help an economy. it's also imports. >> there's a governing consensus in the country among people who are looking nationally and have national constituencies. the only elected person elected by the entire country is the president and it's not an accident that presidents of both parties agree that we need to do this. individual members of congress with their own bases -- >> you have been very outspoken on john like this you give legitimate yaes to their argument. >> what do you mean i give legitimacy? i'm not giving ill legitimacy. >> every obama policy you pound the table on. nike is everything that's wrong with the u.s. economy because they employ all these people not in the united states. robert reich, he was secretary of labor. he's like a leading

progressive -- >> yes, he was secretary of labor. >> if you are in charge of labor, that's a different issue. >> really? why is it a different issue if it's better for the economy overall, better for unemployment or gdp -- >> because as john pointed out there's constituency sies need jobs. >> elizabeth warren has tried to make this argument in recent days that somehow by obama voting in favor of this thing, it's going to somehow muck up dodd frank and the regulations of the bank. i don't get it. can you even try to explain it to me? >> yes. the argument is there is an investor state dispute resolution process so that if investors or companies are aggrieved by the national policies of some country, they can challenge them through a dispute process, and the

argument is that this could be used to under cut dodd frank and the president argues pretty vehemently that there is a settlement process, there has been. it's never been used in the way or never been successfully used in the way that elizabeth warren is saying -- >> isn't this just a straw man that she's using to try to gain more support for what she's doing? >> she's certainly trying to gain more support and the president is saying very strongly it's a straw man. let me point out one thing though that came out of the poll last week. joe was saying that the averageperson doesn't know the ins and outside of the trade debates. that is true. what we have seen is as the economy improves public sentiment about the merits of trade also improves, so now you have a plurity of people in the country saying that trade has helped our economy, not hurt our economy. that is very important asset for the pro trade promotion and pro

trans pacific side of this argument. >> it's almost like everything, john. you look at the up heavals caused by that. if all you look at is at the current workforce that's being disrupted, the knee jerk reaction and the simplest thing is saying wow we should stop this and it goes all the way back to the luddites. >> have you noticed they haven't stopped it? >> no they haven't. >> these trade deals, they are always -- in modern politics these trade deals are very difficult. it's always a big fight. you always have the union side the environmental side pushing hard against it but it keeps moving forward. >> we'll see. >> natfa passed despite strong

opposition so did china wto. i think one of these deals will too. >> that's my biggest fear we'll end up as a protectionist entitlement state entity. you get past the point of no return. it's not always a given -- >> that's scary. you are scaring me. >> we're not all going to be a phoenix. thanks john harwood. you are a capitals fan or not? >> yeah. i mean i'm not a big hockey fan. i don't pay attention to it closely but i'm for the washington teams and i'm getting a little sinking feeling now. >> that was great. i loved. and wapner i'm going back. i'm nudging him every opportunity i get. he said when it was 3-1. caps can end it tonight. you know what they can end it wednesday night, their season. by the way. >> it's so unlike you to nudge him. >> i know. coming up this isn't your father's bowling alley. how developers are trying to

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♪ ♪ you've seen the big lobows kixt, you recognize he comes down the steps in his bowling uniform and does some really great moves. bowling, if you think golf has problems, bowling probably does as well. as society has moved away from blue collar to white collar jobs now there's the thinking there's jesus, fing jesus candana -- that was all ad-lib too. it is absolutely one of the greatest performances just a little bit part where he hits it absolutely out of the park everybody does in this movie, but bowling has some problems and there are a lot of places closing down.

there are not nearly as many alleys as they used to be. it used to be it would take days get a lane reservation. in vail you cannot get a reservation. if it's a beautiful day and you go into the subterranean places where everybody is pale and long side burns and you are drinking in the middle of the day, not many people are doing it now. >> what do you think about starting a league? what if there was a squawk team? >> homer simpson had a boling ball. >> my dad. you could tell what kind of mood he was in if he bowled a 600, he was in a good mood. >> what's the best you've ever scored? >> i don't think i've ever gotten over 200. >> i'm happy if i get over 100. >> do you twist it so it goes

out or do you go straight down the middle? >> i twist it like that. you are supposed to do it like that and you go in the pocket. >> i know you say it's a blue collar thing but this one percenter lovers it. . >> they are trying to bring it back and they were doing it with yupies like you. they are really young and happening. >> they are not cheap. i've done it. >> nothing cheap in new york city. >> you could do it with food. get some good mexican food and beers and stuff. >> they do. that's really fancy. it's like fancy bowling. there have been big declines in the number of people. but this guy says we're ready for another golden age. we're right on the cusp of a golden age. >> what do you think about the kids where they put up the bumpers. >> i don't zbet a gutter ball. >> the idea is to get little

kids to get them interested in bowling down the line. what's interesting, is that it is a metaphor for decline of social engagement in the country? >> we're all electronic. >> we're all looking at tweets and facebook. >> we used to go to star dust where they had 64 lanes. that was the happening spot. >> growing up in western hills, in ohio western bowl if girls would go there and hang out and -- >> star dust lanes was a place to hang out too. >> people did birthday parties. i used to go to amf world wide. >> that was a big bowling -- i don't know. i don't know but i don't like old time bowling. they kind of smell. >> what creeps me out is the shoes. >> the shoes zp your fingers are in the balls. >> other people's fingers have been in the same balls, right?

>> just saying. >> your moment has been brought to you by andrew ross, sorkin. we were talking about how chocolate was going to be too hard to find because demand was surging. they were running out of enough supplies of it. well, the other story has come through. i think prices the futures spiked in september. they were at three and a half year highs. since then they have spiked. prices had been skyrocketing and as a result that cuts down the demand. what we saw over the week is the amount of cocoa ground by asian processors down this year. i think it shows you that every time we worry we're going to run out of something, the argument

is, we find the other side of it because high prices cure demand. >> well, right. >> in basic economics, one of those one there will be wrong. i'm more worried about bowling than chocolate. tell you that much. chocolate is not going anywhere. >> i'm not really worried about it i guess, but i'm not worried about bowling either. >> if you worry about golf you should really worry -- >> i'm not worried about golf either. >> do you own your own ball? >> no. >> no. >> no never have i owned a ball. >> my mom had other own ball. >> my dad had the bag had the whole thing. now when you say that girl is a different league you don't mean she bowls in a different league. >> i always thought of baseball. i was going to tell you a story about apple and some of

the things they are doing, environmental -- we don't talk enough about apple and that's why we're not going to do it now, but maybe we'll do it later in the program. we're going to go to a break. when we come back, we'll talk about this, not so healthy returns for health food stocks. later, rental car companies struggle to steer straight. why stocks in that sector are also getting hit. squawk sports news rickie fowler is going to join us live. squawk returns in a moment.

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lending club the world's largest online marketplace for consumer loans became the first of last year's disrupter 350 to go public. >> my forecast is the company for the next decade we have an opportunity to transform the entire banking system. >> the stock soared out of the gate. but shares have been struggling. in a sign of stability, the company announced a lending partnership with citigroup last month following strategic partnerships with google alibaba and bank alliance. and it's looking for ways to expand developing a payment device. who will be next? the 2015 disrupter 50 list is revealed tomorrow.

welcome back everybody. the u.s. equity futures at this hour have been indicated slightly lower. this comes after the markets actually picked up or ended the week with a gain. at least the dow did. nasdaq was slightly lower. you can see this morning, the dow futures are down about 22 points below fair value. sapp off by 4% and nasdaq down by 5. in our headlines this morning, "avengers "avengers" has $77.2. >> whole foods, customers there debate seem like a happy bunch. is the healthy eating trend in jep ardy or is it company specific.

let's look at it now. is warren buffett right about this? >> >> i'm not sure if he's right that the customers are not happy at the whole foods. they have a strongest selling base. they do have a niche. they have a very strong premium product. the problem i have is they announced in this last quarter, they are announcing a new format that's value focused. that's a complete step change. it's almost an acknowledgment of defeat. >> why is there a ka pit to a lags? . people talk about whole foods, calling it whole paycheck. people are value conscious. >> they said they are going to carry the same products. where are you going to shop? you are going to shop at the more value focused. >> you are worried about

cannibalization. >> super markets aren't ever successful at starting new formats. walmart tried and it it didn't work. it's a completely different execution. they don't have feds can -- have confidence. >> do you believe it's a larger trend toward healthier eating? that was in response to the question about the future of coca-cola. >> i think healthy and organic consumption is just skyrocketing. i think that will continue. i think the problem is that this competition has become unbelievable and the whole foods is almost a victim of its own success. it grew the market but then the market started growing faster than whole foods. you brought in these entrants it's a completely different -- >> i think you should put a

modifier there and call it perceived to be healthy. some of it is drizzle is passed on to consumers -- >> those kind bars they have changed -- >> saturated fat. i'm not that -- you know if i have a certain number of saturated fat grams a day, i'm not worried. >> you don't worry about it. >> type ii diabetes and they weigh 400 pounds. anything in moderation if you do it and you watch, the idea you can't have preservatives and additives. >> it's a real trend. it's perceived healthy. >> the other thing is it's very easy for super markets to throw in a natural and organic section and that competes with whole foods, the traditional ones. the bigger one we own white wave foods. it's growing at an insane double

digit pace. it's the one that's getting that shelf space. >> what about sprout? >> they don't think the competition is as heavy as what whole foods is saying. they made a few mistakes. they had some supply issues in the quarter because of west coast ports. they didn't pass on deflation to the customers. they can rebound. >> you are the head of a trust, can we assume that you two agree on those two points? >> we try to stay on the same page. we'll go back and forth sometimes. i think we always want to come to the same agreement because there's no reason obviously, battling. i think we agree on like the white waves. we love that. we never agreed on whole foods. >> how much money is that in that trust? >> i believe 2 and a half million.

>> it's on line. we've got to run real quick. since we set up coca-cola. is it in the trust? >> no it's not. >> would it be? >> i think there's better options than that. i think white wave can do that. you can grow it a lot more. get some foreign governments. they don't even look at how you do that. newly minted component, apple, outpacing. why it's still overwhelmingly bullish. that's up next. [ male announcer ] your love for trading never stops. so if you get a trade idea about, say organic food stocks schwab can help. with a trading specialist just a tap away. what's on your mind

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shares of apple are up more than 50% over the past year. handily beating the dow, which is up less than 10% over that period and about three-quarters of analysts still think the stock is a buy, but are there some head winds on the horizon for apple? daniel is here to discuss that situation. he covers apple for fdr capital markets and there are a lot of people, dan, obviously, that have acted on their bullish intentions. and i don't, it's almost 99% consensus that a stock at ten times earnings is still cheap and nothing can go wrong. is that how you feel?

>> sure. the worry that the cab driver is bullish on apple and i think to some extent just a second inning of this playing out on the next gen wearables on apple pay. really front and center is china. china at this point is really the apple growth story on iphone 6, as well as more products that we were going to come out and develop at conference. >> why couldn't all of these positive developments technically need to be shaken out, which is what we're seeing right now. right now we're at 735. $735 billion. you added it to the dow. you look it's been how long since it's been stuck. all this good stuff is happening and there is no one who doesn't know what you're saying right now. we know all this stuff. why isn't it at $1 trillion. doesn't it need to be? some people need to get shaken out. some way to cure the complacency because everybody that likes

apple is going to buy it. >> i agree 100% what you're saying. i think what's going to happen is we're going to go to the developer conference in june. some good things in terms of an ipad refresh, apple tv and more information on the apple watch. some things we do need to sort of see investors have comfort and have confidence in this apple watch in the wearables and i think that's really the key in terms of hitting that 20 million number by 2015. the near term be sure to see the stock stagnant and worries about an iphone 6 hangover and then you start to come through and, ultimately, i think it's near term. speed bump or stagnant period before we make that jump towards the trillion. >> i think a year from now. a year from now we're looking at $1 trillion. >> you think the watch actually matters in terms of the bottom line. that was always something that seemed like an extra that was two or three years out from

making making a massive impact. >> it's not changing the model near term but it's so key because wearables in the watch is really about this next generation. we think it's 8% to 10% of revenue by fiscal 2017 and it all comes down to you need that next product. not just about the watch and wearable categories. that's why near term worries about production. >> used to be about the tv. we all were waiting for the tv and the tv never came. >> near term it's an iphone 6 story. in terms of the stock and in terms of number and we saw that with the 60 million plus the last quarter. the watch is key in a lot of these new product areas because it's about that as well as china that you need to see growth. >> when it comes to an iphone 7 or 6s not the same type of upgrades because people would have just spent the money on the 6 and the size change. >> that was really the golden goose for apple. iphone 7 this year or 2017 will be key, but that comes down to

will consumers go for the watch, for apple pay, for wearables. in china we ultimately believe by the end of next year, china is a bigger market than the u.s. that is key in terms can that still have legs. skeptics on the street. >> i wonder about this and knockoffs and everything else in china. all i know taking the train in to see this hockey game. every person in every suit had an iphone. every person had an iphone. all playing with their iphones. >> and the bigger screen on the iphone 6. sounded like hot cakes across the board, especially in china. you've seen post-quarter. a lot of investors this was the good news this was the wedding and now it's over. >> are you allowed to take it apart and make your own iphone? take apart the iphone and figure out the technology. none of it? how does samsung. >> yes they can take it apart. >> in china. just because you have what everyone buys now doesn't mean a

year from now you'll have what everyone buys. >> it's a software game. >> nobody has ever been able to it's so hard to replicate software. >> if you put an apple logo -- >> cisco. >> if apple starts selling yogurt they compete with pinkberry. whatever they sell is really key. the logo and the software. >> i don't know. it's amazing the amount of cash. but do you know how much it's up in the last ten years? >> $200 billion. i mean we're looking now, the question is -- >> $9 billion. when jobs came back remember? about $9 billion when they had national semi after john sculley who ran pepsi. those guys had no idea. >> another question do they buy a capital or a country. running the numbers and bring us the one sector signaling better times ahead. "squawk box" returns in just a moment.

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signs of life in u.s. stocks. if you're looking for a sector ready to move higher don says think home improvement. oil shock. china overtaking the united states as the world's biggest prude importer. what it means for geo politics. rental car stocks are in reverse down sharply this year. we're going to tell you what's keeping hertz and avis stuck in the mud and what it will take to

can't them flying high again. the second hour of "squawk box" begins right now. live from the beating heart of business new york city. this is "squawk box." welcome back to "squawk box" here on cnbc first in business worldwide. i'm joe kernen. u.s. futures equity at this hour meandering down more than that earlier. i think they were down over 30 and now down 16 as the week gets started after what was pretty good week last week when it was all said and done. i think it was all up just under a percentage point in the dow jones and we're back above 18,000 and almost to 18,200 and up for the year again. but, we wouldn't say we're going gangbusters just yet. i'm going opposite. whenever there is a bad one, i'm going up. whenever there is a good one,

i'll predict down. >> so, it wasn't goldilocks in our friday -- >> if it was the opposite. >> seinfeld's opposite day. >> friday it was goldilocks reverse the last bad one. so obvious what i'm saying. what pullson said that it was bad one. >> that wasn't bad news that got the market up on friday. it was a relief that it was below 200, again. >> not so strong that the feds actually be prompting to move. >> make it look like the previous weakness. and that the first quarter at 0.2% won't be repeated. >> right. let's see how things play out this week. lots of china news to tell you about at this hour. global market alert. china central bank cutting interest rates for the third time in six months intended to jump start its sluggish economy. look at asian markets right now. everything in the green with the nikkei up 1.25%. also in tech news china

smartphone market is slowing. that's according to survey data by international data corp. smartphone shipments in china fell 4.3% year over year in the first quarter. nearly everyone in china who wants a smartphone already has one. and makers will now have to win over their upgraders. finally, in corporate news this morning, apple wants to go green in china. partnering with conservationists for paper production. ceo tim cook said he will also try to get fliers to use renewable energy to power factories. in the meantime i think he's using solar panels that will power some of their offices and stores. listen to this one, china has now passed the u.s. as the world's biggest importer of crude. purchasers from overseas get a high of 7.4 million barrels a day in april. also a news alert for you just crossing the wires. the bank of england holding interest rates unchanged. if you check out the european markets at this hour what is

moving things here are more the talks happening with the euro ministers. to try to figure out what to do with greece. greece has a 750 million euro payment that is due tomorrow. today is the last day of talks ahead of that to see if something can be averted. some sort of crisis averted. right now the dax is down by 0.5%. and in greece things have gotten worse through the morning. right now down by 3.5%. back in the united states. the dow coming off its best session since early february. getting a boost from friday's job's report. while the industrials are just up 2% for the year, one is igsignalingigsig signaling ahead. >> it is the spring real estate season. if we take a look at what's happening with the overall market. it's interesting here because one of the things that we're

looking overall. the semi conductor index is one thing. maybe showing some signs of life here. if you move on to other parts of the market that are doing really well. you can take a look at some of the ones having a good time. be beyond what is happening here. the xhp and this tracks everybody from new home construction companies like lennar and those types all the way towards the lowe's and home depots and accessory type companies out there. this stock is up 3.5% and that's just over the course again, just since the beginning of may. a very strong start from the home building stocks. if you look at some of the individual names that have really moved in just this month alone. just guys in the last week and a half. look at whirlpool. those shares up just 6% to date in may. another exciting one to talk about here is mohawk. if you want to put new floors in your house. a lot of people getting excited about that trade. those shares up 6%. then on the retail side of

things. lowe's a big name in home improvement. up 6%. here's the interesting part. i'll hold it right here. guys, the interesting part about this, joe, becky, andrew the single best performing stock in the entire s&p 500 just this month in may has something to do with home improvement, but not a name that we talk about very often. they make bed frames and mattress springs and what not. it's a company, guys, called leggett and platte. when you look at companies doing strong to kick the month off. you look at stocks which does a lot of stuff for the home and in terms of the overall accessory market. they're showing the most signs of life here among the top performers in the s&p. joe, an interesting move as we talk about the real estate selling season. these stocks doing really well to start the month of may. back to you. >> everything comes from housing. we need to get that going if we want a decent year gdp wise. i was just thinking about the

china story. did they pass us? >> they did. >> have we actually gone down on how much we import? >> 7.2 million is what we have been importing. they got to 7.4 million and we're also exporting oil. 400 million barrels. >> i wonder if our exports or if our imports have gone down or at least increased much more slowly. because of domestically what we're doing here. not just china growth. >> i'll look into it. that's a valid point and i'm sure it's one of the two. friday's job's report did hit the sweet spot for the markets. what will it mean for the timing of rate hikes. i want to talk trade with these two guys. i'm not sure about either one of them. jim nessel credit union national association. i'm not going to call him a rhino just yet. and gerald bernstein and i'm not ready to call him a dino yet either. although i'm close on both. >> i'm not sure about what to

call you either. let's keep going. >> you guys usually have a love fest when we're on and you're supposed to be arguing. just in terms of trade. just trying to do my litmus test. are you an elizabeth warren and i can't believe i'm saying it are you a centrist democrat like barack obama? >> well, probably a bit closer to the former than the latter for the following reason. probably like everybody else on this panel right now, i've never read the transpacific partnership because it's being negotiated in secret. i can't say that much about what's in there. but what i do know isn't in there is a chapter on enforceable currency disciplines. that is actions that would prevent the signatories to the deal from taking actions to suppress the value of their currency. i think that's a big problem with this trade agreement.

>> to ignore adam smith and comparative advantage and, you know there's a lot of different ways to say i don't like a trade. >> that is really not -- >> this is pure simple. more protectionism. >> that's really not what is in play here. i was talking to jim about this earlier. >> yeah you guys are buddies. >> this is a 29-chapter trade deal. this is not adam smith comparative advantage. there are protectionist measures in here that extend patents, for example. also free trade agreements. it is a lot more complicated than what you read in the elementary textbooks. >> i'm afraid to ask you, do you agree with jared on this? >> no i have rarely seen a trade agreement that i didn't like because i believe, as you do and adam smith and comparative advantage and i think that it's important for us to expand our ability to trade

with partners around the world. so, i generally believe any time you can open up your markets in a fair way that you, you know you gain from that. we create jobs from that. we create economic activity from that. i generally believe in where this is heading and i guess like you, i'm surprised i believe in this maybe as much as barack obama does. but i think it's a positive. >> i know. i mean that's what scares me. when i hear the president talk about it i'm like yes, mr. president! that's usually not the position i find myself. >> it does tell you that the last five six presidents have looked at similar data and have been advised, again, from both side i'm sure. and have come down on a similar, on a similar landing pad and that is let's expand the growth of trade. >> aren't you throwing out the baby with the bath water? you have a couple problems and one man's currency manipulation

is another man's qe. >> another man's trade deficit. first of all, i find that a bit of a head scratcher and they're endorsing a deal that they haven't read. i think that's a mistake. secondly, you shouldn't -- >> like obama care. passing a bill no one's read? >> that's worked out pretty well. you should hold on. >> tell the american public. >> let's focus for a minute. you shouldn't conflate trade and globalization, which are very positive forces for the most part. yes, they do create some winners and losers but i'm pro-globalization. do not with these trade agreements which are complex sets of rules with investors on both sides. you have to know what's in the deal before you say, i like this because it says trade on it which is a very simplistic analysis that i'm hearing too much these days. >> why i have you here there is a lot of speculation about what happened in the uk and neal ferguson has a great piece in

the ft today. people that like growth and free markets and the private sector are saying that it was just an absolute endorsement of growth versus redistribution and that it will happen here. cameron cut the corporate tax ratesausterity. it is going to be awful, it's going to be terrible. it didn't happen. voters in the uk with the polling and the main stream media saying that labor is going to win. they came out and gave cameron -- >> look i think you raised great questions and there is soul searching to do. qul i think the kind of referendum on scotland is something in play that you don't see here. i think there is something that you're saying and you can't ignore these dynamics apparently here or there. >> what do you think, jim? >> so going back to your trade issue.

i mean part of the reason why the trade deal is so important is that you typically lowers barriers that the united states has to foreign markets. so that's the reason why i think in these instances it's okay to support something you haven't read. but in the uk an example not only is growth good and people are supporting growth, but the other part of the story is that polling sucks. that's the other part of this. they can't, the polling firms out both in international as well as here in the united states are just not able to do a very good job these days of market sentiment. whether it's their formulas that they're putting into it and the way they contact people about their issues. but regardless of what it is it's a lost art that needs to be refreshed, no question. >> this is the election he had to totally screw up? this is the one he completely. missed? he's not at "new york times" any

more. >> can i say one -- listen guys, can i make a point. we mentioned the job's report. basically, you know let me tie a few threads together here. definitely a positive job's report. i agree, joe, in terms of relief rally. but let's talk about this currency issue for a second. what it is the sector that is not doing well. manufacturing. last year manufacturing over 200,000 jobs in the past three months it's been flat. and there's no question that this is related to the strength of the dollar which has grown significantly. i think as much as between 15% and 20% over the past few months. that has increased our trade deficit and hurt our manufacturers. this currency issue is not some sort of minor thing that you can disregard. it's actually important. on the tariff thing, jim, i have to tell you, we actually have trade deals already with 6 of the 11 countries and our tariff barriers with them are close to

zero already. those gains are are probably not as sig competent as you think they are. >> jared, you love you loved what the fed did with qe. and most of people on your side that don't want them to raise now. it's just like so you're mad that europe followed our lead and did what they asked us to do and china's fallen and they're all debasing -- they're just following our lead. >> i think what the fed is actually very connectrrect and janet yellin talks about this all the time. are we at full employment yet? no. headed in that direction, i wouldn't raise until we really start to see some wage growth which has been a missing ingredient thus far. >> why wouldn't you allow europe to do the same thing? they needed to do qe. that's why the dollar strengthened? >> you're confusing uk and europe. the uk economy is doing better than the eu. >> i'm talking the reason the

euro has gone down so much is because they figured their currency with qe. >> that is absolutely correct. >> that's what we did. >> correct. that is one of the ways in which you strengthen your economy's growth. you lower your interest rates. that lowers the relative value of your currency and helps your net exports. that's not currency manipulation. something very different where you go into foreign markets and use your trade surplus to buy massive amounts of exchange currency. ask yourself why china holds $4 trillion of currency reserves. >> that is the problem. we're afraid to brand anyone else a currency because we're worried they'll point and say, look in the mirror and heal thyself. >> i don't consider that a serious concern. >> so jared, hillary becomes a nominee, right? you're good with that? who do you like? >> at this point in time out of the 27 that have announced, i

mean it's going to be -- i want to see the debates. when all 19 or 23 of them are standing on the stage and get three seconds apiece to answer foreign appearffairs and economic questions. it is going to be a zoo for a while before anything is going to get shaked out. >> should it be about social issues? i'm reading people are in sense that the gop has lost the culture war. they've lost the culture war. regain the culture war. that will work right? >> i think based on the last eight years in particular i think it needs to be on not only our standing in the world, but it also needs to be on our economy. our economy is not back to where it needs to be. and it's there because the fed policy not because of anything that happened, really in washington, d.c. and that needs to change. >> good point. good point. the only thing i would add is what i'm really listening for on the republican side is there something in there that is not just trickle down economics that we heard for almost 30 years now. the idea that you know here's our plan.

cut taxes for rich people. deregulate shutter the education department. >> we're stuck at 2% jared. >> i just think that -- >> you didn't like the growth rate in the '80s and '90s from the trickle down. you think this trickle down government is working? >> i think as a campaign strategy. >> maybe we should try it, again. exceptional again instead of redistributing. >> to some level i hope they take your advice. >> all right, gentlemen. thank you. >> joe, can i tell you i looked up oil imports here in the united states. according to the u.s. eia no -- >> we're down. >> we're down significantly. we peaked in august of 2006 at 455 million barrels a day and that fell to 338 million to 6 million barrels in february. that was in february of 2009. you might have said that was because of the recession and gone straight down from then. 258.8 million barrels. that just shows while our

economy is improving, while our economy is improving, we are importing less and less. >> i know. that's bad. that could be bad some day. >> that could be. we're just going to come back. >> the situation is we're number two, yay. we'll continue this conversation. the earnings and economic reports to watch. >> number two most days. >> thank you, mr. three. >> the ceo -- >> becky's number one. >> you're going there. hey, now. the ceo tells us where they're putting $500 billion to work. rent insurance covers the car but it won't help with the. we have details on that ahead and a lot more. noise

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welcome back to "squawk box." the dow is starting the trading week less than 100 points from it's all-time high and a host of key economic events out this week. what are traders focused on. let's ask jj the chief

strategist at ameritrade. what are you looking for this morning? >> i think the most important this week andrew retail sales. we just had this job's report that was, as you said earlier, kind of goldilocks which seemed to be just right. psychologically it made a difference for people. but with that we need to see retail sales as a follow up. our people if they have better jobs and we did create jobs in great areas such as construction business services people are out spending that money right now. the last couple times we paid good employment reports. so the one thing i think we haven't seen in the economy overall and why it's been so hard for people is because we haven't seen consistency in the numbers. we get a good job's report and then a disappointing sales or housing report afterwards. >> is there any chance that friday, i don't want to call it a relief rally, but you get these numbers.

market flies. and people wake up on monday and they get some sense about them and they decide that things aren't as great as they thought. >> i think that's actually a definite possibility andrew because as you look at from a technical perspective, pretty much since march 1st we have been from 2006 up 2120 on the upside. since april 1st it's been about 20.80 to 21.20. overall we have been in the range. the difference is we went from the bottom of the range to the top of the range in one day and we'll still have trouble getting through this 2120 level and also with the bond market kind of flying all over the place and pressure on bonds, again, this morning. i think people are having a very very sort of difficult time. sort of saying okay i'll stay with the market for a little while. you're seeing a lot of money rotate in and out of fixed income and to stocks i think maybe more so than we've seen in quite a while. >> jj we appreciate your perspective this morning.

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welcome back to "squawk box." "the avengers" dominated the weekend box office for the second straight week bringing in more than $77 million in north american ticket sales. that brings its domestic total to $313 million after just ten days in theaters. new comedy "hot pursuit" came in second place. an overwhelming box office take of $13 million. stars reese witherspoon guarding the widow of a mobster played by sofia vergara. the world's first professional foot golf league kicked off competition on friday in argentina. a hybrid sport that brings together socker and golf. competitors use a soccer ball. >> so much better. >> kick it towards a 21 inch cup. and just like golf the players with the fewest shots wins. >> it takes precision.

>> i would have probably been able to figure that out. the most shots would win. foot golf was created in 2009 but quickly found fans across argentina and normally if you accuse someone of foot golf. >> playing footsie, right? >> no, when you kick it out of a bad -- >> cheating. >> foot golf is not legal. >> frowned upon. >> you're just cheating yourself. >> well, and the other people you're playing with too. >> you don't have to be playing with anyone else. >> play 18 holes of soccer. >> but i don't know how far the holes are. i don't know if they're 500 yard holes. when we come back this morning, if you're looking for value abroad, european stocks are outperforming the s&p. we'll talk to the ceo of aberdeen asset management to find out where they're putting $500 billion to work.

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welcome back to "squawk box" this morning. volvo choosing south carolina for its new $5 million auto plant. noble energy buying rosetta resources. that deal is valued at $1.2 billion. saudi arabia king will skip the arab leader summit in washington this week. the white house had announced the monarch would attend. >> israel is really mad at us and saudi they're not allies any more. we got iran. we got iran. >> feel good. >> it's going great. and check this out, yesterday was mother's day. but it was a dad stealing the spotlight at yesterday's mets/phillies game in the top of the fourth, a long foul ball to the back of the stands to make the bare handed grab.

that is his dad with his young son. >> that baby was right there. >> i was at the rangers game and they throw those t-shirts and i got one! i wrestled it through and my daughter thinks i'm a god now. it was almost slow motion. it was bouncing around. we were the very last row of the bottom section. >> the ones they shoot up with the gun. >> in this case they were just throwing them. i was sitting down and i saw. it was slow motion i saw it coming and it's cool. >> that's awesome. let's talk about some european stocks. almost as exciting. they soared up 16% while the s&p gained just about 3%. joining us with more on what is happening is martin gilbert, the co-founder and ceo of aberdeen asset management. get this more than $500 billion in assets under management. thank you for coming in today. >> thank you. >> we know the story has been europe's recovery this year. the question is what happens now because you've got the euro

finance ministers meeting today and you have a big deadline for greece tomorrow to make a huge payment to the imf. how strong is this recovery and can it withstand a shock of greece potentially leaving. >> i think the problem with the the recovery in european stocks is fueled by liquidity and the liquidity driven rallies are dangerous. i would be weary of how much further they could go. everyone is concerned about greece. it has about $700 million this week to the imf. so that's the big, that's the big call this week whether it can actually find $700 million to hand over. >> you know, we wondered the same sort of thing because the rally here in the u.s. stocks was driven for a very long time. by that same liquidity as our federal reserve was kind of pumping out the money. the expectation is that it should be enough to get us to where the economy actually steps in. do ayou think that has taken

place here in the united states and do you think it's likely to happen? >> it has happened in the u.s. and certainly in the uk because you have to separate uk and the rest of europe. because, as you know the uk don't think they're in europe anyway. but, but, i'm doubtful it is going to occur in europe because we're not, it's not as flexible an economy as the u.s. it doesn't have the ability to cut labor, shall we say, as they have here. so i'm skepical whether it will work. the problem with the u.s. it doesn't want to put up interest rates, if it can. everyone else in the world, china's cut, japan and it doesn't want itstao strengthen any further or manufacturing, et cetera becomes uncompetitive. the u.s. having done so well actually in too good a position. >> does this mean you would be selling european stocks and not

putting new money into it? >> i would be looking at asia and emerging markets both in bonds and equities because that's where the value is at the moment. if i give an example in bonds, until the selloff last week they were yielding 28% and government bonds are yielding 6%. so one or other is wrong. probably both are wrong. the value is very difficult to find value in europe, especially the bond markets with 75% of them yielding under 1%. it's just crazy. these are crazy. >> how often is scotland going to decide? i thought it was settled. it's not settled. >> i think it's far from settled. this election was unprecedented. >> why didn't they just vote? >> i think they were probably scared. >> wasn't that like last year? >> yeah. i think it was probably caution about going it alone.

i think what the conservatives must be discussing at the moment is how much home rule to give scotland because that is where they are thinking. wae we have to try to stop this nationalism. >> what are the chances that there is a vote on whether to leave the union for the uk? >> well, i think its there'sthere's a very good chance over the next five years. >> who will they vote for? >> well now i notice that 55 60% people in scotland think they'll be independent in their lifetime now. >> but in the uk will the uk leave the euro? >> uk leaving the euro at the end of the day they probably won't. i understand why cameron did it. which was to head off the extreme right. >> he's gone. >> scotland leaves the uk but the uk doesn't leave the euro. >> if britain leaves the uk, it

definitely means scotland will go independent. it's pro europe and england is more negative on europe. >> so is scotland more likely to stay in the uk if the uk stays -- >> yes. i would say. but i think there will be another referendum in the next five or ten years for scotland. >> for scotland? >> this rise in scottish nationalism is unprecedented. they got 48% of the vote. if you think about it 55% of the voted no fragmented into the three parties. they were able to make a clean sweep. >> you said that you would be looking at asia and the emerging markets as where you'd really be placing your bets right now. but you have a massive amount of money. half a million dollars. >> a loss in emerging markets. i don't want to give the impression i'm unbiassed here. >> a lot in emerging markets. but are you covering your bets by placing it in other places too. >> we do.

obviously, we have a big chunk in european equities. probably $75 billion in euro equities and uk equities and probably close to $100 billion in emerging markets. but you're quite right. in mandates where we make the asset allocation we are more developed markets in the moment. >> and do you put the u.s. in the same position as europe where you think stocks here are likely to fall just because they're in too good a position or how would you rate going down? asia and then emerging markets are first. who comes in second and third? >> well i think, if you look at a poll shall we say, of all the top ten hedge fund managers at the moment they would all rate china number one and india number two and probably japan, europe and the u.s. number five. and as we know the opposite normally occurs in these things. the issue with the u.s. is it's

still 50% of the world's index. and most european fund managers have been underweight in the u.s. it's too late really for us to sort of up that waiting. but japan looks okay and india looks expensive and china looks very expensive now. the problem is where do you put your money in the world. >> what is your favorite course in scotland? >> st. andrews. >> kings barn is spectacular. >> where did you play last year in the tournament? was that friday? >> we played on the friday. >> how did you like that? >> that's great. great course. >> i almost gave up that day. >> i almost played with paul lorrie who won the open. >> you enjoyed it that day? >> he did. i didn't. >> every stroke that i took was going backwards out of one of the bunkers that they put in the

middle of the fairway. bunker in the middle of the fairway. >> get mixed up. anyway coming up what is wrong with republicanledcompanies. it's not uber's fault. phil lebeau tells us why hertz and avis are stuck in reverse. next. en percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day.

welcome back to "squawk box." a few stocks on the move. activists beating on the streets. driven by higher sales of brand of drugs in north america. hilton announcing a secondary offering. stockholders affiliated with blackstone. did i say $90 million. 90 million shares. caterpillar upfwradgraded. . the worst may be over for the commodity deflation cycle. in the meantime have you had a bad experience recently with a rental car? we teased this earlier. imagine how investors in hertz and avis feel. phil lebeau joins us now with more with problems in the rental world. phil? >> a busy morning here at o'hare

and, frankly, we're in the midst of what could be a record year in terms of travel here in the united states. any company related with the travel industry. whether it's the airline or the hotels or online booking sites. they're cashing in. by comparison the rental car companies are struggling. we call this the rental car blues. a lot of people said to me what is the deal with the rental companies? why aren't they cashing in? a couple factors that go into the lack of performance, if you will. first of all, outdated i.t. and reservation systems. technology is changing the logistics industry it is slow to change the rental car industry. they are working to improve that, but it will take some time. too many cars not rented. in fact, most of the rental cars are only rented 21 or 22 days a month. that's eight or nine days a month where they're sitting there not being rented and creates a lack of pricing power. in fact if you think you want a good deal on a rental car and you haven't booked one, don't worry, you can wait until the last second because they want to keep those cars moving. >> you need a radical shift in

mindset of management from we need to keep this certain numbers of cars busy to let's have the right number of cars out there to maximize profits. just like the airlines finally figured out, if we limit the amount of capacity in the system and on a specific route, we're going to get better pricing. >> and that better pricing is one reason why the airlines have had a heck of a run over the last five years. look at the returns on these averages for airline stocks and travel-related stocks over the last year. airlines on average, the major ones, up 66% in the last year. the cruise industry up more than 40%. same with the online travel sites. the hotel industry. even with the issues with air b& b&b. they're up 28%. now compare that with hertz and avis. we know the problem with hertz a management shake up.

perhaps we'll get those in the middle of this year. the bottom of the line is this andrew. for the rental car companies they have too much capacity out there. more than 2 billion rental cars are out there in the system and many times because they want to keep those cars moving they have eroded their pricing power. at end the of the day, that is the issue for the rental car companies. like i said, guys. in doing the research for this story, a lot of people said look, if you haven't made a reservation at the last second and you need a car, it's not going to be hard to get a good deal. that's not good for any business, especially in the rental car business. guys, back to you. >> one of the issues you didn't mention. i don't know if this is impacting or not but it impacts me. i always used to rent a car and now i use uber. are things like uber changing the dynamic? >> i get a lot of questions. it is to a very small degree. the number of daily rentals, somebody is going less than 100 miles, 75 miles. that's about 3% of the industry's daily rental cars

business. so, yes, it is going to erode the business in a place like los angeles or san francisco, new york. big cities. let me tell you something, andrew. if you're renting a car in kansas city and you have to drive to topeka aand then go south of the city and that is primarily where their business is right now. >> phil, case in point, i did make a reservation for a car today. i had no problem finding what i wanted and getting a pretty good price on that deal. but gordon always said you are only as smart as your dumbest competitor. who is going to blink and go first on this. cut back capacity at the risk of losing market share. >> that is the issue, becky. because we had consolidation in this industry. a lot of people said you look some consolidation like with the airlines that will take some capacity out. that hasn't happened. they have cut back on their supply to a certain extent. they haven't been able to figure out how do i get maximum efficiency out of my fleet. if those cars are sitting there

eight or nine days a month, that's wasted capital sitting there. they have to figure that out. yes, you're right. it will take somebody biting the bullet and saying no we're going to risk possibly offending a customer and saying we don't have a car for you to rent. nobody wants to do that. >> phil, thank you. >> you bet. when we come back this morning, we have an update to the squawk platnm portfolio. selling one of his picks and adding a new stock to his portfolio portfolio. the details next. sharks in the white house. daymond john tell us why he and the other stars of "shark tank" are talking to the president about entrepreneurship.

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at&t's network has the nation's strongest 4g lte signal. "squawk box" is back this morning with a buy and sell to one of our managers. kevin landis ceo of first hand technology value fund. kevin is swapping out land research and adding elon musk solar city. why? >> on land research side is pretty simple. thesis played out of the mergers. so that trade is off. for solar city a simple theme that keeps going. electricity rates don't go down and so the arb trauj between the two just gets better and better. >> so explain this to me. last week we learned that tesla

will sell this new battery storage unit at $5,000 including installation. solar city will sell it but then something quite confusing about their 7k power wall which they will not be selling. what is that about? >> you know this is this is tesla's first 4a into the residential energy storage market. so it's kind of a step in that direction. but, really if you have solar panels on your roof and you're attached to the grid the best thing to do is to sell your excess power back to the utility. that's what the net metering laws are all about. so, in most cases, it doesn't pencil to have to spend the first nickel on a battery system because you can just sell it back to the utility. there is some niche situations where people need it. but those are really the exception. >> i want to get to the future of solar city. you don't think for solar city to exceed that everybody will need a battery back in their

house? >> no not at all. grid attached solar power is huge compared to off the grid solar power. that's a tiny little niche within that industry that can be helped. those people already buy batteries, this is just another option for them. >> we just showed on the screen that this stock over the last five years was up 422%. what is your target on it five months out? >> we don't normally put targets out there, but i'd say that this is a healthy growth stock and you should probably get double-digit returns out of it. >> is there a tipple point where you think there is going to be you know a massive move towards even more solar or do you think it's just a steady ride? >> the tipping point that everybody looks for is a term called grid parody when the levelized cost of electricity of solar electricity is less than what you pay on the grid. we're beyond that tipping point in california now. so it's really just the pain in the neck of picking up the phone, ordering it and having the people come out and put it up on your roof.

but, think of it this way. you're paying retail for your electricity at home. solar city is buying all the supplies in bulk wholesale. the panels the installation and all that other stuff. they're bringing your costs down and they're in the middle just arb traujitrageing the whole thing. we should also tell you reminder that you can go online to cnbc pro all of oour oportfolio manager and you can do that in real time and read their exclusive analysis, as well. coming up when we return a busy week for retail with several big names to report. former sacs ceo o. later fresh off of yesterday's exciting victory in the players championship we have pro golfer rickie fowler will join us.

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the pacific. rickyie fowler's big win after a comeback for the ages at this weekend's players championship. rickie joins us live. the sudden death victory, the pressure putts and the big kiss. the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york. this is "squawk box." welcome to "squawk box" here on cnbc. first in business worldwide. >> favorite song? >> pained. >> i'm in pain. i'm joe kernen along with becky kick and andrew rossorkin. i see kevin costner.

>> whitney houston "the bodyguard." >> no. terrible. anyway god rest her soul. but, what a -- anyway, the futures right now down a couple points. now down two. checking out european markets, which i think are still responding nice job. now they're down. actually germany, france are both down. the ftse trading higher and greece now at 815. andrew has the rest of the stories we're watching. >> "the bodyguard" by the way made $122 million. is that $122 million. >> and i'm sure, how many times have you seen it? >> oh, i'm responsible for at least 50% of that revenue. >> do you like it more than your all-time favorite "beaches"? that has "wing beneath your wings." >> what was the box office for that, do you think? >> i don't know. how many times did you see that? >> a lot.

not as successful by the way. $57 million. >> how about "steel mag noelnolies." >> how many times you did you see "notebook"? >> i don't know what "notebook" is. >> i went on a date to watch that movie, it did not go well. here are the stories in investors will talk about. does she know you went on a date? >> i was in high school. china cutting interest rates for the third time in six months. policymakers trying to jump start a sluggish economy and also the bank of england holding key rate unchanged. the boe also keeping bond purchases steady under the program and ministers are meeting today gathering comes

among slow-moving talks on a deal with greece's creditors. germany's finance minister said it will do everything it can to keep greece in the euro zone under what he calls, "justifiable conditions." >> people are so fast. what happened? mystic pizza. they're already coming on twitter. few stocks on the move this morning. online retailer zulilly surging on news that alababa bought 4.5 million shares over three days last week. increasing holdings to 11.5 shares. removes salesforce.com from its best idea following the recent runup on takeover talk. >> i got nothing new. but i'm still skeptical. but i'm sure that there will be an announcement tomorrow and i'll feel ohorrible. >> the firm citing andrew ross sorkin. it does say it sees a low

probability of a sales. didn't say they didn't listen to you. >> separately "mystic pizza" 13 million at the box office. small market. >> it's an actual place now, i think. >> it is. up in connecticut. it is. we do have quite a week for retail ahead. big names like macy's nordstrom and jcpenney all reporting. while we haven't really seen the gas savings translate, many are wondering whether we could finally see a robust retail season ahead this summer. joining us right now on set is steve sadof and former ceo of sacs and worldwide enterprises and cnbc contributor and, gentlemen, welcome to both of you. >> thanks. >> steve, what do you think? i've been surprised given the huge drop in gas prices that we haven't seen more consumer spending when it comes to apparel and when it comes to retail when you think of some of these things. what happened? >> i think the first quarter was a little bit spotty. you saw up and down the weather

was tough, you had the porch strike. i'm very optimistic going into the second quarter in the summer and i think you'll see some of the translation of the gas prices. the words that were used on friday about the job's report in terms of being a little bit of a goldilocks. i feel like people at the low and high end of the spectrum in retail and i'm feeling that right now for the next several months in retail. >> how about you? >> i would like to argue with steve, but i agree with him completely. the first quarter is the toughest quarter and the second quarter will be better because we don't have the issues he just described to deal with. the first and third quarter will probably be gangbusters and i think that's because we'll see low energy costs right through the end of the year assuming that's true. more money in the pocketbook and we see 200,000 people working more every month. we'll see that show up in the numbers. we see wages rising and, you know, we have a new $9 minimum wage courtesy of our friends at mcdonald's and walmart. that will help at the bottom end. i don't see anything out there

to stop things unless something bad happens that we don't foresee at the moment. >> although have you been surprised that more of the gas savings haven't gone directly into apparel sales at this point? it seems like people are spending that money, but on very different things. maybe new cars. >> they spend it on cars and spend it on tech so far. but no new hot tech items coming back and everybody will finally have the new car they want. i think in the back half and this is my projection that we'll see apparel sales benefit. the other thing, we're seeing fashion get better. as fashion gets better and tech gets slightly less important, we will see some movement there with the consumers. >> i aagree. it has to do with innovation. you have areas like athletic wear that are booming. overall it will take innovation in athletic wear. >> it could be fabrications and i think it's styling and it could be the trimmer suit and it can be the athletic in terms of new kind of fabrics and tech fabrics and wearable technology

types of things. i think it will be coming but you do have a lot of company from the tech side of it. it will be wearable technology the iphones, things like that. >> iwatches now, too. >> i think that will be interesting to see how fast the takeup is on that one. angela aand the burberry who said apple has done a great job of treating that as a luxury launch as opposed to a mass launch. >> who suffers from that? the watch companies overall that -- i mean i think they already suffer because of cell phones because everybody knows what time it is. >> the fine luxury watches, they're getting hurt right now because of the euro. in terms of the currencies. but it's a different market at the very high end. >> you don't buy an iphone or an i iwatch or apple watch, almost a different buyer? >> but, no she's been trying to make it is it going to be sold

at stores? >> it is already. >> that was the first place they put them in the store. you couldn't buy them in an apple store, you could buy them in the high end stores around the world. it's positioning. how do you get it started? not where it is going tabe long term. they'll get the volume out of the apple stores, et cetera. a way of establishing it as a high-end product. >> it is the first time they ever released one to celebrity. an apple product in order to try to drive that component of the business. so, you know you saw beyonce putting out notes about it and pharrell williams. they're trying to fight that market. the real market is the $300 to $600 business. that watch business which was great for the last six years it is already slowing down i always call the iwatch. >> fossil dead? >> no but it's slowing. we're starting we already saw that happen. we're seeing that happen and i think since it was already

slowing over the last 18 months i've been calling this the nail in the coffin the new apple watch. i don't think it's taking over the world, but a negative to those. >> i think all watches are taking a hit right now and that's sort of the trend that you're seeing. just in general. but go back to your point of what's hot and what's not. the whole issue of bringing innovation to the markets. the handbag candgory slowed down. it has to have more innovation driving that. what you see is the ups and downs. look at what happened when target came out with the lily pultizer because it's innovation. >> what is your favorite stock right now? >> my favorite stock. i like macy's i like nordstrom and i like dollar general. i am all across the spectrum right now because the whole backhand is going to be strong whether you're the low-end guy or high-end guy. that's some of the ones i like the best. but i could give you more names and i can also say the only things i don't really like are

teen retailers and people trapped in the mall. >> jan, steve, thank you, both for coming in. it's great talking to you. >> do you have any more? >> the box office. "sleepless in seattle." how many times did you see that? how about "you've got mail." >> i got one more for you "thelma and louise." >> you're out of step with the rest of the market if you will. the market spoke on "sleepless in seattle." >> they liked it. >> $126 million they liked it. inflation adjusted. i don't even know what that number would be now. >> you don't remember "thelma & louise." >> it was not really for me. that movie. i don't know why. i'm just telling you. >> i'm just throwing things out here. >> i'm giving you box office and we'll get going.

1991 $45 million. >> they went out. >> domestic gross on all the mornings so far just to level the playing field. >> titanic. >> titanic. the market spoke on that. don't look at me. okay coming up are stocks ready to rally or a pull back ahead. find out how investors are feeling about the economy and what it means for stocks ahead. we'll talk to charles rodbuck of the american association of individual investors. he'll join us after the break, when "squawk" returns. financial noise financial noise financial noise

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welcome back to "squawk box." reportedly won't give up on its pursuit of syngenta. rejecting monsanto saying it undervalued the company. zillow upgraded to buy. arguing that the real estate website will benefit over the long term from its dominant market position. not that many people left in that market. they pretty much own it. also cisco upgraded from overweight and firm citing the beginning of a multi-quarter recovery driven by a new product cycle.

joseph movie lover that you are, what's going on? >> "prince of tides." >> $74 million. >> that's you. you love. >> i'll cry at a car commercial. i'm willing to accept that. but i do want to put it out there that my favorite movie of all-time. >> "beverly hills cop". >> i like one. i like that. >> you okay with that? >> i am. i'm okay with that. >> you're giving me all these tear jerkers. >> i do like "dirty dancing." sort of a joke. >> after all of this -- >> i know. that's my one weakness. i love patrick swayze and i miss him. horrible what happened. terrible. anyway, investors are on nobody puts andrew in a corner. that's all i am going to say. on high alert for economic data on the consumer this week. the latest aai, aaii survey shows that investor sentiment hit its lowest level of optimism in two years.

31% of respondents believe that valutionations are high. let's get a check on the week ahead. vice president of the american association of individual investors. it's the long it's the most hated bull market of all times, charles. that's one thing we have going for us and i guess it all comes back to the death of buy and hold in 2008 or whatever it is. people are still not back all the way. >> yeah. they're not. some are. i think there's probably some that just aren't being measured at any survey that are probably out. but, yeah it has been hated. and i think part of it is just the slow pace of economic dproeth. growth. propping up prices. and i think there's just a lot of worries about macro environments. but i think right now a lot of people are looking that bull market being in the sixth year and looking at valuations. looking at p/e higher now than they were in peak of 2000 or

2007 bull markets. that's creating some cautiousness, as well. in addition to just some of the volatility that we've seen this year thus far. >> what are you using for p/e right now compared to 2000 and 2007. plus people back things out or don't back them out. it's, you need an apples to apples comparison. where do you say earnings are right now, p/e? >> we're using adjusted numbers. it's about 20. >> 20. >> that's for all stocks on the u.s. exchanges. not just s&p 500. i looked across about 7,000 stocks. >> if you were in a secular or a long-term, low-interest rate environment then you could justify 20 times earnings probably. >> and that's one thing. gross margins right now are higher right now. they're running at about 40%. the low inflation, the low interest rates are definitely helping. certainly if we get to a

situation where inflation is higher, that would if we have highnertruster interest rates and that would change how we look at things. right now with interest rates so low and inflation so low, one could make an argument that higher p/e ratios are justified. >> how about just demgraphically with millennials. are they the biggest part of the workforce right now and have they sworn off stock market investing? is there a way to bring them back? will they come back towards the end of the bull market? what happens? >> that's really tough. a lot of survey suggesting they are more conservative. i'm not so sure how much college debt is playing a role but i have to think that probably plays a role. but right now we don't know. but certainly someone who started investing or coming of age in 2000 they've seen two bad bear markets and they've seen a tech crash and a housing crash. and there is a concern that some of these people are developing

depression school of thought. but right now too early to know how they will evolve over the long-term u especially when you factor in the financials. high salary low college debt and just starting to save right now. i think we won't know the answer for quite some time to come how they will truly invest and invest differently than the ex-generation or people in the baby boom generation. >> yeah. i guess if you use inflation adjusted numbers for the s&p, we're really not that far above where we were in 2000. we made very little headway in 15 years in terms of absolute numbers. >> yeah. absolutely. the nasdaq is even worse. although on a total return basis, it's not so bad. but certainly a lot of treading water on an inflation-adjusted basis. someone with value would have done better but, certainly, overall, a lot of back and forth move. once you factor in inflation, as you said we're not that far ahead.

>> okay. all right. so i don't know. i don't know. but we appreciate your input, charles. i don't know whether we are or not. based on where rates are. thank you. >> thank you. when we come back this morning, uber making the call to investors as it looks to raise another $1.5 billion to add to its war chest. we have the details after the break. and later, the winner of the players' championship rickie fowler will join us. "squawk box" is coming right back.

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uber planning to raise another 1.5 to $2 billion as it expands into new markets. that would push the company's valuation, if you believe this to $50 billion or even higher. the round of funding could cement uber status as the richest start up in history putting it in the same week as facebook. valued at $50 million before going public and to put that $50 billion in context, i believe that is more than federal express. come which is crazy to me. at $20 billion i thought that was totally not nuts. >> facebook is the only one

becoming this big before it goes public. >> now it's feeling nutso. >> people have been saying that. cuban and others. you didn't hear that music they played for you? >> yes, little beverly hills. they could have done the -- oh, here it comes. >> just ask. >> nice. >> this is good. in media news "american idol" will surge. >> i'm hoping they'll get the other music with the sort of like -- the electronic keys. >> the herbie hancock. >> "american idol" has been on 15 years. "american idol" will be ending after its 15th season this next one. final season will premiere in january i haven't seen it for six or eight or ten seasons. returning judges and host ryan seacrest. maybe some day look at

"survivor" -- >> is that still on? >> without totally being embarrassed. i can't renew "survivor." i'm going to do the right thing just so i don't look so lame. with leaving "survivor" on. >> mark burnett is a genius. >> he is. >> "shark tank" by the way. >> when i say that to him, he says, we don't care about you, you're not in our demo. >> bingo. >> neither are you. when we return former white house council of economic advisors gregory mankiw and then a major performance. major from rickie fowler talking six under the last six holes.en holes that he played to win the players championship and $1.3 million. our special guest and ask him about the win in just a couple of minutes. take a look at u.s. equity futures.

number 21 on last year's disrupter list works with 50,000 video creators on its platform. >> video is moving online and full screen is a network of channels on the internet. >> full screen and other so-called multi-channel networks like maker studios and awesomeness tv became highly coveted acquisition targets in the media industry over the past couple of years. in september full screen cashed in. selling a majority steek toake to honor media. terms weren't discloesz edsed, but the deal valued between $200 million and $300 million. who will be next? the 2015 disrupter 50 list is revealed tomorrow.

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>> what movie is that from? i don't know. don't know. welcome back everybody. this is "squawk box" and here's what's making headlines this morning. u.s. companies continue to hoerd cash overseeas. moody's says the cash is being held abroad. that is up from 57% a year ago. did you figure it out? >> i think maybe we moved on from this lame song. it's possible. >> could be. >> china has cut interest rates for the third time in six months and another bid tarevive a sputtering economy. and opec doesn't see oil prices consistently trading at $100 a barrel in the next decade and says the price could be below $40 a barrel ten years from now. wow. a draft of the cartel latest strategy report says the group is considering limits. wti up about 17 cents to 59.57 a barrel. >> i wish herald simmons he's

gone. but they didn't live to see. just, if you would have said that to anyone. peak oil that that was actually a theory. anyway, economists and politicians from both sides of the aisle are in agreement that international trade is fundamentally good for the u.s. economy. joining us this morning to tell us what this means, especially for jobs in the u.s. greg mankiw a professor and chair of the economics department at harvard. it's been a while, greg good to see you. and you know one of the articles you've written recently that all one of the few times all economists agree is that free trade is good. i don't know. i don't think that that's true. and now they're finding little minutia in this deal to say this is why i don't like this one. currency manipulation or whatever. but i think there are pe like robert rice who just doesn't like free trade. >> oh, sure.

economists are nearly unanimous. i wouldn't say they're completely unanimous but the overwhelming consensus of professional economists is that trade is overall good for the economy. i'm sure there are winners and losers but overall it expands the size of the economic pie. >> i know. but i've done a lot of things in 1776 were settled. i thought we realized that two parties, both looking out for their own self-interest and, therefore, you know trying to gain and with a profit incentive, i thought we decided that was a positive for society back in 1776. i don't think that is to a lot of people in the political class. >> i agree. the left is particularly worried about inequality. i understand that concern because we've been experiencing increasing inequality in the united states for about four decades now. but there's different ways of making people more equal and making us all equably miserable is not the way to do it. we have to find ways to help people at the bottom without

shrinking the size of the economic pie. >> everybody. i've seen it more and more greg, with people that come on. they just tell me that we tried those pro-growth policies within the short hand word for it is trickle down. we've tried things like low regulation and low taxes and free trade. and that resulted in the financial crisis of 2008. so, we tried those things. they don't work. we need some new ideas now. haven't you heard that? i have heard it from everyone now. >> i think it's hard to look and say at the north american free trade agreement and say that's been one of the reasons we had a financial crisis a decade and a half later. i think free trade agreements like nafta have been overall good for the u.s. economy. to be sure there were excesses that led to the financial crisis. we need to avoid those. >> it's ridiculous to hear when people adescribe it to that. but what about, take how many employees does nike have in this country making its shoes versus how many it has in other

countries. you can't, for the labor force. if you just look at a cause and effect in an isolated instance in a vacuum that's robert rice's point. you can make the case that all those jobs are somewhere else right now that makes nike such a great company. >> to be short. the nature of trade is that some jobs go abroad and some jobs go here. that doesn't mean that we can't have full employment economy. when some jobs go abroad we can't employ people in other industries. they export industries. it's the nature of trade. when i hire -- when i hire go to a grocery store and buy food i'm outsourcing my food production and i'm not spending lots of time in my garden. that's an okay thing. more time doing economics and less time gardening. that's the nature of trade, we do less of some things and more of other things. >> i don't disagrooewith you. that's the issue that is taking a very global perspective. but what it also suggests is in this environment if you're a developing country or a developed country in an environment where you have

developing countries, the balance is going to shift and the developing developed country isn't going to be as developed long term because everything is going to come to parity no? >> i don't agree with that. i think it will put some pressure on the ways of unskilled workers. but i think what we need to do that for is turned the unskilled workers into skilled workers. if you're worried about inequality, your focus should be on education. everything through prekind garten through higher ed. to turn those unskilled workers into skilled workers and not trying to become economically isolated for the rest of the world. >> why would you think everything would ultimately balance. it's not necessarily a zero sum per se but it is in that you would say to yourself you know what people in china, in india people would rise and the u.s. wouldn't rise. it would come down to some form of ultimately a long-term

parody paritypair parody parody. >> that's going to pull chinese wages up. not just pulling u.s. wages down. when we import stuff, we also export stuff. and the stuff we export tends to be skill intensive because we have a very educated workforce. it makes sense for us to do that and also makes more sense to turned our skilled workers by education education. in fact, the educational system has done not a better job over the past couple decades. >> both sides argue on how to fix that and we get stuck with talking about unions and teachers unions and we spend more money than anyone else and it all just falls through the cracks and then we're back to talking about income inequality and how we have to topple the 1%. >> yeah. it's very easy to bring the top down. bring the top down doesn't automatically bring the bottom up. high taxes will bring the top down, but we really need educational reform to bring the people up and give them more opportunities. >> so, you've been around a

while. how is this going to work? is the population at this point, which path are we going to pursue in your view for the next ten years? more redistribution or return to the failed policies of the past and trickle down? >> we already have very progressive tax system. we always had a progressive tax cyst. >> they don't think it's nearly you haven't been listening because that's what they want to do. it's not nearly progressive enough, according to the progressives. >> sure. i mean some of the progressives want to go back to the 90th percent marginal tax rates we saw at the top in the 1950s. we need to focus on how to help people at the bottom. people at the bottom need opportunities and simply taxing the rich at a very high rate doesn't automatically provide opportunities for people at the bottom. >> i mean, but it is if you purely look at the cost of labor, it is a scary future. and i see what andrew is saying.

if you have a mrisplace in china where there is $2 billion and we're, i don't know or take even a less developed place in china where $5 an hour was just a huge amount of money, it just seems like it will displace a lot of american workers. you have to see beyond that with imports and comparative advantage and you have to be a believer to do it. i don't even know both sides now, democrats and republicans have people on both sides that aren't sold on free trade. >> i know. the tendency to look at the rest of the world and say, oh, my gosh, they're a threat to our prosperity prosperity. one of the things we know is that prosperity is not zero. the world can grow together. and, you know, if you are too progressive and worried about inequality. realize a lot of very poor people around the world. if you want to help the poor people around the world, free trade will help them as well as us.

we live in a period of inequality in the united states. but around the world, we actually are becoming more equal. we've seen rapid growth in india and china. a lot of people have been pulled out of poverty. true progressive and you care about humanity and the fact that we've seen very rapid growth is something you should be applauding. >> exactly. all right, greg mankiw thank you. >> thank you very much. we'll see you again soon hopefully. when we return "shark tank" investor damon john on the push to invest in the future of america. then rickie fowler's performance at tpc sawgrass is one for the ages. ss sages. you're lisening to the musetening to the music. we'll speak to rickie fowler in just a few minutes. technically retiring, sir. with a little help from my state farm agent i plan to retire in 15 years.

wow! you're totally blindsiding me here. who's gonna manage your accounts? this is a devastating blow i was not prepared for. well, i'm gonna finish packing my things. 15 years will really sneak up on you. jennifer with do your exit interview and adam made you a cake. red velvet. oh, thank you. i made this. take charge of your retirement. talk to a state farm agent today.

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very excited. welcome back to "squawk box." this is the song. >> "beverly hills cop." let's talk about a few headlines this morning. go-daddy initiated. positive on profitability outlook. $26.62 a share in stock. that deal is valued at $2.1 billion. >> it's been done.

everything has been done. let's get down to the new york stock exchange and jim cramer joins us now. that relieved a lot of concern on friday. we got over 200 and i think the market now i don't know. we'll move on to something else to be worried about. what do you think is next? earning season is kind of over. what is next? >> i think the next thing you're going to see is the china numbers are going to turn around. they've made a tremendous amount of money in the stock market. we may call it a bubble. the interest rate cut will play a role because europe is coming back. i think the thing you're going to see, these economists are going to hate it. china turns and, therefore, a lot of our numbers turn with it. i'm sorry to be so positive. i could come out for free trade or something and make a buzz kill. >> are you for free trade? >> no there is no free trade. i'm for discretionary trade. i'm for these countries. never been a trade deal we've done that has ever produced a surplus. these guys want to have open

immigration, which therefore, makes it so the unskilled get very hurt and willing to let our allies and trade part nrks walk all over us and i don't know why we don't stand up to them. i listen, i say, like, i you kidding me? what's the matter with unskilled jobs? they provide for dinner for heaven sake. we don't just want to forget the unskilled worker. i think it's a great thing if you can just get a job. so, i don't know. i listen to this free trade and i laugh. free trade. if they did free trade, why do we have a deficit everywhere? >> just be nice to sell our stuff to all these other people around the world. >> thank you! you and i are saying that. why are we outcasts? >> if we want to do that. we have to be willing to have it come here and we have to be willing to send it over there. that's the problem. >> we're willing to take anything they give us. >> you think we don't negotiate good deals? >> i think we give it away in

part because we have a lot of companies that do a lot of business over there and a lot because we're afraid of everybody. we're afraid of china. i mean enough already. don't be afraid of china. >> we have the head of u.s. steel who was here last week that complained, hey, we don't enforce the existing trade packs that we have. >> u.s. steel is trying to turn around and they're doing their best. new core has been at the forefront coming underneath the chinese and they've done that. but, i mean i just free trade. academics free trade. we make a lot of money in south korea and china. these are all just a tremendous way for them to and not take our stuff. when are we going to have a deal where we have a surplus? is that so hard to negotiate? >> i don't know. >> i'm like lyndon johnson. i know to sound like johnson's wrong. he's a democratic president. >> you like rickie fowler now and he's going to be on. >> that is that is

noncontroversial. >> okay, good. see you, jim. coming up next a shark invades the white house and then we've got rickie fowler to join us to talk about yesterday's big win and the big kiss. we're back in a moment.

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white house is hosting an entrepreneurship event today to bring attention to the work of women and young entrepreneurs. daymond john will be there and he joins us this morning to tell us about it. what will you tell the president about diversity and entrepreneurship? >> diversity and entrepreneur entrepreneurship. everybody has an idea and they need resources and capital. you know i was looking last week and launching my brother's keeper alliance and he is set on giving these resources to every person in america and abroad. but, more importantly, america. >> when it comes to "shark tank" what percentage do you think of the owners in the businesses that come to visit are either young people well they often are young people but i should

say women and minorities. >> i believe women and minoroties are 40%, maybe even as high as 50%. most of my partners are females and many minorities, so in my portfolio, i think 70% to 75%. >> is that something you have i to do? there a business reason behind that? >> i think i resonate with them. we're on "shark tank" to give hope to these individuals, but more importantly it's about the business. maybe many of them i relate to maybe they had the same upbringing, or that my mother was amazing to me and i find that women entrepreneurs are resilient, just as great as a male or any other counterpart. >> i read your mother gave you some advice the quote is -- money is a great slave, but a

horrible master. what does that mean? >> if you're doing things solely for the purpose of money you probably will not make it or end up in the wrong place trying to do that. that's why we want to do thing such as the my brother's keeper alliance and go internationally, help and give people what i think america gives is the best export in the world, which is hope and which is access. >> okay. thanks for joining us. good luck at the white house today. >> thank you. when we come back we have ricky fowler on his big win. swagen golf was just named motor trend's 2015 car of the year. so was the 100% electric e-golf. and the 45 highway mpg tdi clean diesel. and last but not least the high performance gti. looks like we're gonna need a bigger podium. the volkswagen golf family. motor trend's 2015 "cars" of the year.

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pga star rickie fowler with a late surge for the ages overcome ago five-shot deficit to win the players championship in a three-man playoff, which then became a two-man playoff. it comes after fowler was recently ranked by his peers the most overrated player in a poll. ricky joins us from palm beach, florida. last year we'll just get to this ridiculous poll, because you know, i saw buba was on the

losing end of a poll too. you were last year i think in the majors weren't you second how many times? so how that's overrated, i don't get it. i think if you get well known, as you are, and beloved, that's just the other 130 guys that aren't rickie fowler it's just sour grapes. i think you made a statement yesterday yesterday. >> yeah, you know, i laughed at the poll when it came out. you look at any of the guys that play on the pga tour web.com tour, have status around the world, and you can't say someone that has earned their way is overrated by any means. yeah it was kind of funny. i laughed at it and having the trophy at my side last night i think answers any questions, if there were any. >> right. you've got the outfits -- i remember payne had the knickers and stuff.

they said that about him for a millisecond millisecond, and we saw how that turned out, payne stewart. now i want to talk about the round itself. everybody is talking about the last six holes. i saw you interviewed, and you said 12 might have been the most important hole in saving par there. i thought that was interesting. >> yeah i had some crucial points, and then 12 was very big. i wasn't sure if i would even be able to get it to the green. two-putted it and got away with parr. i was able to get things going. birdie in 13 making another great par from the right rough on. was really just thinking if i could birdie the last four holes, i could give myself a chance. >> i think you played 17 six times. did you ever instead of looking at the flag on 17 were you ever looking at -- see, i play.

i'm always worried about the bad things that can happen. it looked like you were just aiming for the flag. did you ever worry about the bad things that could happen on 17? >> i've always played 17 well. i played it well this week. i was never aiming at the flag. i pick targets in the background, kind of around the camera towers stuff like that. i was aiming -- it was probably about six or seven feet left of the hole in regulation yesterday, and in the first playoff, and the wind switched a bit, so the last playoff hole i was probably aiming 10 to 12 feet left of the hole. it worked out perfect. >> it sure did. were you more concerned about the drive on 18 than the shot on 17? >> to me the drive on 18 is

probably the hardest shot on the golf course there. there's not really any room for error. you can hang it out right to stay away from the water, but dealing with the mounds and the trees and the rough over there, you're not getting anywhere. so hitting driver off that hole can be a big advantage, and i drove it well there all week which was big to my success for the week. >> if it was like a wheels up promo. you're like the spokesman for wheels up. he had a good -- >> we are making wheels up and kenny proud. >> i liked the kiss. i was waiting for something -- that looked reasonable for me. >> he came awfully close with that final putt. he did. he came awfully close. >> oh, the other guy. i was talking about the kiss -- >> this is the kiss.

that's not bad and then follow-up move. i don't think that's that bad. that might not help. the tall bikini model girlfriend -- >> that was a movie kiss. >> that's one of the biggest purses, isn't it, for the winner? >> yeah that is the biggest purse. i'm happy about that. i think everyone's happy. my caddie is happy about that. it was a good day for all of us. >> oh, one more hard question. i don't know if you thought of this. you came from behind and put up a scoring, and then you won in a playoff. do you think you can lead the tournament and play the same way? we only have about 10 15 seconds. is it easier to come from behind or can you lead and win? >> being out front, definitely you're in control, and coming from behind you have to make

something happen. it's completely different. i haven't been out in front to take care of business that way, but i'm lacking forward to it. >> we are too. congratulations. you've been a friend of squawk and we were all happy for you. congrats. >> thanks. make sure you join us tomorrow. "squawk on the street" begins right now. ♪ good morning. welcome to "squawk on the street." i'm david faber with jim cramer. we are -- carl is on assignment. let's give you a look at futures as we start this week. can you see we are poised for, i don't know what do you call that jim? maybe a meh. >> yeah it's an meh. after a strong friday. how about crude oil, you ask? yeah there it is also kind of