>> live from new york where business never sleeps this is squawk box. >> sad, right, b.b. king. good morning and welcome to squawk box on cnbc. becky and andrew will be back on monday. our guest host today is mike santolli. senior columnist at yahoo! finance. sad news from the music world. the king of blues has died. b.b. king passing away in his sleep at his home in las vegas. he was 89 years old. he made his name playing in small clubs becoming a cutlt hero. he has 18 grammys to his name and in 2006 president george w. bush presented him with the medal of freedom. >> 330 concerts a year for like 30 years and he was playing just a few months ago.

he was still doing concerts and there's a place in new york city called b.b. kings. >> have you ever seen him in concert? >> i have a couple of times. lucille and born and raised in mississippi which was one of his alabama lumbars too and what's weird is mike nice tie, i think albert king was born in another great blues guitarist that played with the guitar the way jimmy hendrix did, learned to play it this way even though they din change the strings. and he was from there. how weird is that. and both named king. but not related. >> sure. >> very weird. that was very sad to hear that. i love great guitar player and great guy. always seemed like he was in a good mood. i never met the man. >> you mentioned 330 day ace year and never stopped working. on the road for decades.

>> he saw how it made his audiences feel too. it might have been called the blues. but it made you feel good. made me feel good anyway. >> now to wall street news. let's get you up to speed on the markets. u.s. equity future at this hour right now they imply a positive open after yesterday's gains. dow higher by 36 points. s&p higher by five more points. here are the big stories we're watching today, joe. >> here's a couple. we probably have avon in here somewhere but first we'll start with the economical lan calendar. the may empire state survey comes out. and then capacity utilization and consumer sentiment. macy's shareholders are gathering in cincinnati where the retailer is holding it's annual meeting and this afternoon baker hughes gives traders a read on the number of drilling riggs actively exploring for developing oil or

natural gas in north america. the united states as well as canada. >> we're going to do a story about the interview with crowd funding for backyard drills. if you want to drill oil in your backyard. that's coming up. in corporate news there appears to be a stumbling block in the expected conclusion into a probe of rigging into some of the world's biggest banks. they want assurances from regulators that they will not be barred before agreeing to plead guilty to criminal charges. this is said to be causing a delay in a settlement. they are expected to plead guilty to rigging rates to benefit transactions. the wall street journal reports the justice department voided a 2012 settlement with ubs over the issue with more than a year of talks. >> among some stocks to watch, el pollo loco posted better return in revenues. they'll fall short of estimates.

is there any cool way to say that? >> el pollo loco. the crazy chicken is what it means. >> i could have come up with that. a mixed quarter at nordstroms. >> earnings and revenue topped estimates and they were driven by demand from memory chips. >> party city reporting quarterly results for the first time as a publicly traded company. earnings topping estimates and bigger demand for licensed birthday products and balloons. >> shares of king digital getting crushed. beating the street on the top an bottom line but warning of seasonally softer growth in the mid year period. >> green mountain under pressure. the fourth coming keurig kold will be betweenat too high a price.

>> is it iced coffee. >> gold? >> cold with a k. >> oh i read it wrong. >> the idea is they wanted to displace soda stream. >> it is cold. >> it's colded stuff but not necessarily iced coffee. >> at least you're here. >> thank goodness. >> coca-cola has a little investment in them and that's been -- they have to expand the market. >> so it's like soda stream. at least part of that. your counter top cold drink. >> right. >> so it's not iced coffee. they're going to compete in the self-carbonation market. >> okay. >> good. >> if you weren't here -- >> that seems way more expensive. >> but nobody has any idea what to do with it. >> let's check on the markets and see where the futures are

and at this point it looks likely that the s&p will as we say, quitely trade at another new high and the dow is not far from trading at a new high. we have been talking about it. not much going on for 2015 so far. we'll talk to mike about that in a second and i have got some other people as well. let's look at europe. a quick look at what's happening over there and we can see that germany and france and ftse all trading higher but greece is lower. >> i'm surprised you're not more animated about this story. about mario draghi telling people there are trade offs to quantitative easing. sometimes capital goes to places it wouldn't go and leads to inequality. we're talking about wealthy people that own stocks. >> i think there's a wink and a nod in this country because we know that that's what happens because the whole reason for qe was to get the animal spirits conjured up by making the stock

market go up. you're moving people out the risk curve but i don't think the fed think with demand as week as it was following the financial crisis they don't think they pushed it out as risky as it could get. it happened in emerging markets where there's all kinds of stuff but do you think they're worried it's gone in places it couldn't go. >> i don't think they think it's there. it's one of the reasons they're looking for the opportunity and the evidence that's going to let them move and the longer it lasts the worst -- >> they use pig latin when they talk about it. >> we have 70 something% of economists think september is the day they go up. >> it's a point they don't ever want to acknowledge in their trade offs. >> they're talking about risk to financial stability and that's code for people reaching for yield. stuff that could blow up. >> so you shouldn't have said

anything -- it's average trade. they don't really -- >> no they don't obviously want to light the spark that has people calling fire. >> how do you say income inequality? >> the fed would say they don't have other instrument ifs they want to stimulate the economy and jobs. >> hopefully the economy doesn't need stimulating because they don't have them. >> all right. where were we. >> asia is another part of the world where they trade stocks. >> where there's quantitative easing going on. >> there's quantitative easing everywhere i think. that's the one thing that might save us is that everybody -- finally let's take a look at oil which has not been you know

and the rig count did go down and russia and saudi arabia both said they had won in terms of putting these guys out of business. they can open it up immediately, right? >> right. and then the market acts. basically opec admitted it's no longer cartel. they're going to let the market push prices lower to drown out the other players and then they come back in but then there's more supply. the price goes down. to cry victory is actually i think crazy. they have to admit that the cartel just doesn't work. >> doesn't work. because 60 if you had told someone they could find a level at 60 it's like oh no going to fill it up and not driving for awhile hoping it comes back down. let's look at the ten year. we should probably just have the bund in there all the time. we should always look at it. that's lower than it was this week.

got all the way up to 2.3. the dollar taking a quick look which is correlated to all of the stuff that we're talking about and even more important -- stop. >> it got to 114 at one point. >> like that. finally gold. take a quick look and we'll move on because gold has been like watching paint grow for awhile. the s&p that's like rocket surgery. >> it's not rocket surgery. >> there was a bear. i have to tell the story. i'm sorry. monday and tuesday where i live out in new jersey bear sighting. big bear. not a little bear. big black bear. get your pets inside. >> during the show he's getting warning phone calls from the municipality. this morning my normal driver

wasn't there and my other driver doesn't pull up to the drive way and i get in the car and he said you have bears here and i said yeah it was on tuesday. hasn't been seen since tuesday. he goes no you have bears. i went around to get you some water out of the back of my suv and huge black bear 20 feet away and a cub crossed the street at 4:45 in the morning. >> oh my god. anyway i don't know what that means about fill. a bear has been spotted in new jersey. >> we have coyote sightings in my neighborhood. >> i heard about coyotes. they're the size of a cocker spaniel. this is a bear. you can smell a bear too. anyway, we have phil orlando. i'm trying to give you a tip. you see a coyote it means nothing. you see a bear. you have to think about it. >> i don't know. tell me. chief equity strategist is here.

you not at barons. >> 2.5 years ago i left. >> he's online. that's where the future is. >> quite records. i don't feel flush in terms of gains for 2015. is this the way you continue to go higher. >> this is a market that everyone hates. we're very impressed with the fact that given all the head winds in the first four months of the year the weather, the currency, the oil, the port strike, whatever the stock market basically goes sideways up about 2% or so and what we think the market did they were smart enough to look through a lot of the issues that hurt economic activity and corporate earnings earlier in the year and from this point forward we think the markets will start to discount better news in the second half of the year. so we're sticking with this 2350 forecast which is pretty

aggressive which implies roughly a 15% return over the last 8 months of the year. the market is going to give us that and be this very quite and grinding action into the end of the year. >> i have a question for both of you. it's only 2.2%. do we look at it on an absolute level or are there on these levels. if it goes 75 basis points in a week -- >> look at that move in the bund. but it's sharp. >> how should we look at it? is it threatening. >> because of where the absolute levels of rates are, it's not threatening to the real economy. it's not about raising the cost of money. we weren't saying the only reason the economy is recovering

is because bunds are around zero but the concern is there's too many people trapped and on the wrong side and obviously it it up ends whatever capital markets activity was in place. >> long european bonds was about as consensus as dollar going to parity. >> what to do and you should do it. >> why should the overall stock markets, every sector of it sell off when there's dislocation. they lose a lot of money. >> once in 100 years let's back off. you think that's the effect you have. >> it's not really systemic to the system. >> you don't know until it slows down and stabilizes. >> i guarentee phil orlando doesn't care what the german bund does do you? >> we do. from a macro standpoint our bond

guys have been focused not on the fundamentals but what the bund is doing and that's been the relationship. throw away currency inflation, economic growth all of that. it's been the relationship between the benchmark tens and the bunds. >> a year ago you knew that the german bund was not a cake. >> with a t. >> no we absolutely knew that. because we have people. it has a swirl on top. >> it has a t on the end. >> you knew there was something different from the cake. >> absolutely. we saw the treasury doing what it wasn't supposed to be doing based upon economic fundamentals here and the only conclusion we could draw was none of that mattered and it was the japanese yields and german yields driving our yields. >> you're saying the u.s. economy was getting stronger so in theory the u.s. long-term rates should have been rising but they weren't and they were held down by german bunds.

>> it was tightening. we unwound the taper. theoretically our treasury yields should have been rising. >> why are bunds rising so sharply now and has it finally stopped and settled down. >> there's an expectation of what qe and draghi are doing is starting to get traction. getting better economic news out of europe and as you roll into the second half of the year that growth should accelerate. >> we highlighted that he pointed out that there's downside risks to quantitative easing but ultimately he also said despite all the better economic data out of europe we're going full throttle on quantitative easing. does that have any concerns or lead to higher equities? >> no it's like you have your point you're going to make and then you have to acknowledge what the other side is and the risk. so i do think that's what's going on. when we did qe our yields went up actually in that strange way when qe was in place once you had the expectation built up

they started it and yields went up. what we did three, four five years ago that's what they're trying to do now. to a significant degree they want to lift inflation and economic growth and they'll do what they have to do to use draghi's term in order to achieve that. >> when the fed did it the markets there was a lot of juice still left in the markets. you had wide credit spreads and you could compress and rates were not already rock bottom. when the ecb started you already had developed country european yields so low it was hard to know exactly how much you were going to flush the economy. >> we had analysts on and investors on that say i'm out of the u.s. equity market and i'm going to follow to your point the play book that happened here in the u.s. but i'm going long europe because of quantitative easing. >> we've seen this movie before. we know how it ends. from our molddeling standpoint we

went over last fourth quarter. we're going to stick with it until it looks like the valuation and balance has been exploited. >> thanks. you're not going to do anything with the bear sighting. >> i'm not going to -- >> maybe it's the signaling of bear market in bonds. >> that's good. >> nice. >> there was a bear and the guy called up the dispatcher. i had to confirm. that there was a bear and a cub. either a cub or boo boo. wasn't he an adult. >> he was just a small bear. a small adult bear. >> so anyway mike you'll stay with us. >> i'll hang around. >> it's encouraging when bears are out at all time highs. >> roaming around. >> this is a totally suburban neighborhood. i have a german sheppard. >> but he's saying it's a con

contrarian signal. is it anything for kids to worry about? >> that's funny. >> run up a tree. >> you'll be safe there, right? >> thanks phil. >> we're safe here in new york city. i live in manhattan. someone might come by with an ice pick but you're safe from the bears. >> the stock mystery of the week. shares of avon surging on an offer that no one can confirm and the sec investigation that followed, next. first as we head to break here's a look back at this date in history. ameriprise asked people a simple question: can you keep your lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry but you worry. what happens when your paychecks stop? because everyone has retirement questions. ameriprise created the exclusive confident retirement approach. to get the real answers you need.

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everywhere. comcast business. built for business. meeting with representatives from six middle east allies this week. they're upset about a possible deal that the united states is brokering with iran. nbc news correspondent edward lawrence joins us with the details. a pretty good photo op i thought and normal people don't know if those are the heads of the state necessarily or whether they're surrogates. so to me it looked like a pretty high level meeting. >> it was a very high level meeting. these were foreign ministers from the six arab allies. the president described this conversation as very candid. he said it focused around antiterrorism measures and a

nuclear deal with iran. >> president obama emerged from a marathon work session with representatives of six middle east countries assuring them a united states deal with iran is in their best interest. the president outlined the frame work for a deal to lift sanctions against iran in exchange for iran's pledge not to seek a nuclear bomb. >> we welcome an iran that takes concrete practical steps to resolve it's differences with it's neighbors. >> the president reaffirmed a commitment those countries fear a u.s. deal will only strengthen iran creating more problems in the middle east. >> we welcome any deal that stops iran from having nuclear capability and this is what we have been assured by the u.s. and other countries that all pathways to a bomb will be closed to iran. >> president obama has another battle brewing over iran. >> on this vote.

>> the house voted any deal must be approved by congress. it gives the lawmakers the chance to review it and possibly reject it. edward lawrence nbc news washington. >> the bill actually now goes back to the president to sign or veto. reporting live in washington. joe, back to you. >> they indicated the president is going to sign it. did they not? >> he did indicate he was going to sign the bill. should be interesting once a final deal with iran is set in place because now you're going to have to deal with nebraskas of congress. >> edward even though it was absolutely maybe a good photo op in your package you said representative of these gulf nations and it was supposed to be leaders of these gulf nations. this did not go off as the president wanted it to. >> the big snub was the king of saudi arabia. he was supposed to be there and at the last minute pulled his

rsvp. they were high level meetings but they were supposed to be at the highest level. you can see how the concern in the middle east among our allies is there about this deal with iran. >> all right. edward, thank you. in other news the wreckage of a u.s. marine helicopter that went missing during a mission in nepal has been found. that's interesting. because as of last night it was a 50 mile by 10 mile quarter of the toughest terrain on earth that they were looking for. officials say it was not far from where the chopper was carrying six americans and two service members delivering aid. must have been the last 12 hours they came across it. let's chat with mike. stock, rapid fire. avon products. what a mess. should we be talk about avon or sec or mystery company.

>> so many issues. the backdrop is the stock has been beaten up so badly. seems like it's seeing some rescue or workout or something like that. how it got to be an official sec filing will be the subject now. >> about their controls. >> the machines read the headlines and -- >> they had to halt it several times due to imbalances. >> shake shack. >> it's this year's go pro. amazing product. people love it. hot ipo and added to the premium after that it's following a similar trajectory and their fundamental momentum was amazing. i was amazed the street was only looking for less than 5% comps.

i was surprised. maybe it's because they're so crowded already you can't comp on it. you can't short the stock. it's so expensive to short right now. that's how crowded it is. the fever will break at some point but it has a lot of running room to just expand. >> they can go a long time. >> do you agree with me that the ipo gave more of a visibility to it. >> it was part of the branding. absolutely. i do think that. >> more people ate there because of the ipo. >> people are more aware of the brand. >> i have to check it out and also because people in other parts of the country, the places they're going to locate their stores initially are places where people may pay attention to the stock market. >> apple. >> apple out performed big yesterday. i don't necessarily love to see apple out performing on a day when the indexes are trying to eek out a new record. it's doing it's own thing. when it is strong it is because apple is doing things right as

opposed to the markets. but it's gone sideways in a healthy way for awhile now. it still has so much momentum to it. forget about the watch. >> unless someone builds a better mouse trap. >> but that's not -- that's not the next six months business really. >> but the stock is priced for -- i've argued with andrew about it. the idea that 58 billion in revenue per quarter is just going to come in with gadgets and it's going to be forever. >> gadgets and the services they charge you for. >> i know. >> does the watch -- >> but nothing grows, no three grows to the -- allen ables will be so short appleby now. >> i don't know about that. >> it's short of amazon. >> because cosmetically it's cheap. >> cosmetically. okay then you'll welcome. >> that always bothered me. who is to say where the sky

starts. >> so you disagree with that basic premise. >> okay. so you were willing to welcome in the first $1 trillion market cap company. >> i think we don't have to opine as to whether the biggest stock in the world is going to go up another 30%. that's what a trillion dollars is. >> i know. >> why do we sit around saying -- do we sit around saying. >> cisco, general electric, microsoft. >> and if the overall market is that much bigger in two years time when it gets to a trillion -- >> then everybody should be rich because when apple was $9 billion at least you could have thought it's going to 400 billion and made a lot of money. >> i'm not banking the drum on apple but i'm saying a lot of these big arguments for why it has to stop growing. >> how about putting it in the dow up 25%. >> it's totally been the astock.

>> what about the bear i saw. >> there you go. >> was it wearing an iwatch. >> that's a new band. >> i see. >> i notice that's a new band. >> which band is in it. >> it's the leather band. it's magnetic. >> i never saw the other one. that's the one you've had all week. >> yeah, you don't think this gets more people into the phone because they work together? >> maybe but i i don't think it works that direction. >> coming up do you fancy yourself an oil wildcater? i always wanted to be a roughneck. >> that would be fun. >> i don't really fit. one crowd funding company says you can be one without leaving your house. that story next. first as we head to break a look at yesterday's s&p 500 winners and losers.

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insurance coverage has expanded nationally and you may now be covered. contact your health plan for the latest information. it's perceived to be another set back for pimco. they said they would start exit strategies. she will leave the firm after less than a year and a half. pimco tried to portray itself or sell itself as having expertise in equities and the people that have run that department have

had no expertise or success and one thing about this individual the very thin skinned pr people at pimco, i think we may have mispronounced, not naming names but her name and they got all you don't know this person she's in charge -- she had only been there for six months. so no we didn't necessarily. the reputation wasn't that big. they have never been able to actually sell themselves. >> this is them throwing in the towel. >> or just deciding it can't be a growth area. but first of all, it's 50 beside in equity assets under management. it's okay. it's not big relative to the rest of the firm. >> what's the return. >> actually over various periods they had desen returns but theo me my takeaway is the inflows into the dominant bill gross run

fixed income franchise subsidized everything else they wanted to do. do not make the hard decisions. >> one of the heros of the financial crisis. >> he was the first guy hired to do it. >> does that mean he knew anything about managing money and equities? >> no but it means you can be somebody out there as a fugigure head. >> didn't you feel like that was a cover for what bill gross thought about the equity market? >> that would explain the bad performance. >> he made predictions about the stock market for years. >> coming up do you have separation? i think it's separ -- when you have to leave your smartphone behind? if so you're not alone. the story of nomaphobia. no mobile phone. next.

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good morning, phil. >> thank you for having me. >> this is interesting. we talk about crowd funding and everybody thinks it's about tech gadgets or books and the arts world et cetera now am i oversimplifying this if i think i have oil on my land in my backyard and it's not big enough to get a bank i can go to you guys and the average individual can sign up and help fund my oil well in my backyard. >> you're pretty close. the way it works is we connect the little guy with the little

guy. now the little guy on the oil and gas side is a successful oil and dpas operator that has a track history of success and can be based anywhere in the united states. they don't want to go through traditional financing means such as bank financing or private equity because they contain terms they don't usually like plus it can be difficult to get financing. on the other side the little guy is the investor that wants to invest directly in oil and gas and for the first time he or she has access to high quality oil and gas flow that they couldn't otherwise access. >> but i'm assuming that the average oil barrels per day is going to be smaller on average than some of the bigger ones that can get bank funding. what is it for example? what's the average? >> the average is going to be between about 200,000 and about 5 million. we have identified. >> more than i thought. >> under 10 million. >> okay. how do you make money?

>> so we only make money when the investors make money. we align our interest with the investors. we take a 10% carried interest in the project so when the investors are paid we're paid. we negotiate such a good deal for the investors it's like our share doesn't exist at all. >> you essentially make a market there and keep part of it. phil, good luck to you. >> thank you. >> i thought it would be part of our disruptor series. so old school oil drilling and now you crowd funded a well. >> the digital angle to that. are you addicted to your smartphone? if so you're not alone. i don't know how you know. nbc weekend today co-host erica hill. i'm going to give you the symptoms and i want you to be honest with me. someone sent me a cartoon of the tan lines and it shows people out on the beach and they're all tan except for their hands and

smartphone. >> there it is. >> there it is. that's not that far. >> it's not that far off. >> and i feel bad because there's nothing happening. >> but you feel an urgent need to check it. >> i don't like it. >> it's called nomophobia which is a shortened form of no mobile phone phobia. it's a real thing. it's being studied increasingly and we talked to students that aren't the only ones that feel it. it's us grown ups that feel it as well. >> it's that instant, stomach sinking, palm sweating moment of anxiety. you don't have your phone. there may not be an app for that but there's a name. it's called nomaphobia and refers to the real feel that takes over when the battery is dead or you left the phone at home. some students at george washington university say just the thought gives them chills. >> i would feel very naked. i know a lot of people would

describe it as feeling naked. >> it's a feeling of disconnectedness. you're like i don't know what's going on in the world. >> college kids aren't the only ones battling the symptoms. at black rock group public relations in virginia the thought of being disconnected is disconcerting. >> i would have to go home and get it or notify everyone that i don't have my phone on me because i woen be able to stay in touch with people. >> it's becoming such a thing these days psychologists at iowa state university developed a short questionnaire to help you gauge the mobile addiction. how would you answer these statements. i would feel uncomfortable without access to information. i would be annoyed if i could not look up information when i wanted to. being able to not get the news would make me nervous. running out of battery would scare me. if i didn't have my smartphone with me i would feel anxious because i could not instantly

communicate with family and friends. researchers say it should be no surprise. >> cell phones are more part of our life. as they become more portable and multifunctional we become more ways to become attached to them. >> and truth be told broadcast journalists have the hardest time breaking free from the small screen. >> you're always feeling you have to be able to everybody. you can't sit and look at the trees. you can't watch the people around you. you can't think. >> it's true right? it's hard to disconnect. both michelle and i have two here. i notice you do as well. i split them up. work and personal but it's the feeling of you have to constantly know what's going on. for me it's my kids. making sure the babysitter can get in touch with me but knowing what's going on in the world. it's a real thing and it's not new. >> there's golf courses where you're not allowed to bring one out and i almost think because of my kids it's like so sue me.

i need to check. if something happened god forbid and it's like they can't expect you to not at least just peak at it. >> when i'm live in cuba and standing in a live shot i cannot look up anything. >> it's a crazy feeling. >> other times i ask a question of someone on the staff or somewhere else. if they don't answer in a half hour. it's like what is your problem. you're not reachable? >> you wonder what are you doing? >> the fact that social media sites and apps the design of them is if you don't watch in real time the stream goes past you and there's a sense that you missed it. >> so you have nomophobia and fomo, the fear of missing out, one of the things they advise you to do is set up a place in your home where there's a no smartphone zone. good luck with that.

>> do you know what the next story is neck pain here. start talking to physical therapists. >> once i switched to the iphone, the way i hold it it's terrible. >> but right here this whole keeping your head down all the time. >> it shouldn't be called a phone anymore. >> it's not. >> it's a computer. >> and fomo -- >> i would like the record to show i didn't say that. there's multiple bits of advice and you can take the test on today.com. but they say turn off all the alerts on your apps. >> i have no problem with having nomophobia. this is how i want to live. >> as long as you're okay with it we're good. >> you know what it stands for, morris and foster. i thought who is your people over there that came up with that. i thought you're kidding, right? >> i'm guessing that came about before the current interpretation.

>> i don't know. >> perhaps not. >> remember the e-mail morris and foster. >> i don't even know what they do. >> you could look it up on your phone. >> i'll look it up on my -- it's not a phone. i'm not going to touch it for awhile. i'm going to show you i don't need to. anyway, coming up, do you want to know if housing is making a come back just follow the money. new stats on which building plans and borrowing, which one plans to borrow. next. there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously.

because we love them. and we know you love them too.

it's time for your business entrepreneur of the week. it was only natural that linda started helping christinea out when she started her jewelry company. neither of them ever guessed

that linda would become the number one employee. for more watch "your business" sunday mornings at 7:30 on msnbc.

this morning the mortgage bankers association will release forecast for new housing starts. david stevens is the group's ceo. i want it to still be better. it's tepid and an important part of everybody knows how important it is to you know to try to get a decent gdp number. is it going to be better this time, david? >> it's going to show flat. april is going to be just a hair better than march. but, the reality is our overall year-over-year estimate we're lowering our oestimate from what was going to be under $500,000 in sales. the real story behind the story, joe, is that you know compared to prerecession period we're really way down below where overall home sales, including new home sales should be when you look at a pre-recession level which are in the range of

omore than a million sales per year. an improvement over where we were a year ago. running over flat from last month and no where back to where we should be if you look at a prerecession kind of normal. >> i hate to generalize but it just remind me of the overall economy. we have zero interest rates for six years and we're going, but not like we thought we could. not to potential. i don't know what's holding that back with businesses when they can borrow at zero. i don't know what's holding back homebuyers. when rates are so low. the credit is still too tight? >> you're right, joe. the home affordability index has never been better for home buying, but you have a few variables. some are rebuilding credit from whatever occurred during the recession. >> that was six years ago! i have been hearing that excuse for six years. is there something that we're self-inflicting here with this? >> i think there's a consumer

piece. do we have less wealth lower wages in this recovery. a regulatory climate, as well that is keeping lenders much tighter in the credit markets than they've even traditionally been far prerecession before the bubble. so, credit is well below from an availability standpoint to where we were. i think, i think overall there is a need for washington to kind of refocus in on what are the impediments being put in the marketplace. limiting that expansion of credit access to the housing market. again, within reason. you never want to repeat what got us into this recession in the first place. but we're well below that. and there's room for a lot of movement. in fact, the legislation that was introduced proposed legislation from chairman shelby of the senate banking committee is trying to address that. there is focus on housing and housing finance. we just have a long way to go to move the pendulum back into sort of a normal.

>> very strange. a lot of people are renting, too. aren't they? and then i think if we ever get rid of the mortgage deduction, why wouldn't everyone rent? that's something we're still talking about if we ever do tax reform, right? >> absolutely. it's been a discussion on the table. rent demand is extremely strong and i think the simple story here is that the millennials. the young, potential homebuyers are delaying their decision to rent. one thing we track is the percentage of 30 year olds that have mortgage debt by age 30. if you look over a long-term time series. we're about 10% below where we traditionally would have been even prerecession period of the percentage of 30 year olds who are owning a home. at minimum, they're delaying their decision. no doubt about it. if they don't come back in the market and we don't get this economic engine that we really need to have really drive gdp right now. >> we complain about millennials. they don't watch us enough. they're not investing for the future and not buying homes.

they're nomophobs. they're playing with their smartphones and other electronics. we can place the blame and lack of produck divty. >> now we have a name for that group. every vice of youth to this thing called millennial. >> waste it on the young. i made that up. thank you. oh, and you're leaving. i thought you were comment on mortgages. i mean, the housing market still stinks. >> long-term chart of homeownership rates. maybe we're correcting back to the trend. >> despite all our efforts to make it more pervasive. >> an excuse for everything. >> good to have you here this hour. always a pleasure. coming up next we're going to welcome walter isaacson. business, the economy, innovation and the future of media. no topic too much for him to handle. first, though, as we head to break. check out the futures. they suggest a positive open. ameriprise asked people a simple question: in retirement, will you have enough money to live life on your terms?

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a quiet rally in the markets. we'll talk stocks with top strategists from doyeutsche bank. the company ceo joins us with an owner of the san francisco giants. avon calling. the beauty products company stock taken for a ride yesterday on acquisition rumors but the acquiring company may not exist. details ahead as 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 along with michelle. b.b. passed away overnight, i think, i think they said las vegas. first thing i said was find some b.b. stuff. do not play that bono song right out of the gate. because b.b. was known. >> long before bono. >> that's all they know. >> i think b.b. king five different decades he was cool. >> 330 shows a year right up until this year and our guest host. >> only aretha franklin is above that in the number of shows, decades in which she had number ones. >> she is queen of soul and b.b. was the king of the blues. you feel bad, you feel good when you listen to "lucille."

walter isaacson the ceo of aspen institute. a best-selling author and a cnbc contributor. we're going to get to walter in just a minute. i'm still not that i'm a little upset with him. you took aspen for a place to put your institute. >> you took 51st street. >> paterson or camden. you didn't pick any of the, you picked aspen. why not the lehina institute. you thought about that didn't you? >> what you don't know is we're based in washington, d.c. we just make ourselves sound cooler than we are. >> when all the, you all go out and talk about income equality -- >> inequality. >> that's what i mean. >> we talk about many things. >> you go to aspen to talk about income and equality on a private jet. most of the people that go talk about climate change and inequality. >> $100 million home in aspen. one that sold. >> you know who sold for more than $100 million was bandar

the saudi big intelligence chief and foreign policy. >> you talk about income inequality in aspen. >> i think you talk about u.s. allies and the gulf region. >> that is -- >> which is the more interesting topic. >> you can talk about anything and you will. we like the studio too, thank you for building it. >> did you know that michelle? >> you didn't build that. >> it took if not a village, i worked here at the time life building and when i was first at cnn. >> you really were -- >> anderson cooper and some of our evening shows. we did not have a time warner set. my office was right there. >> he really did. yeah. among our top stories, officials say a u.s. marine helicopter that crashed on a mountainside in nepal has been found destroyed. there were no survivors among

the eight people aboard. eight marines and two soldiers were aboard the mission to deliver aid to earthquake victims. iphone 6 sales are smashing expectations. ubs indicates that second quarter demand will top 51 million units that beats street consensus. ubs says a continued surge in china contributed to the success. just who is calling avon? shares soared as much as 20% yesterday intra day on reports of a bid from ptg capital partners. the catch. ptg capital may not exist. the buzz started with an sec filing by so-called ptg but attempt tazreach contacts listed in that filing were unsuccessful. they have not received an offer and they have not been able to confirm even its existence. avon ended the session up still 6%. give some of that back. it was halted a cup canal times due to imbalance. >> i hadn't looked at that stock

in a while, seven. it doesn't seem like a model business model that fits in with the digital world, does it? >> that's why surviseverizon may take it over. >> that's a good one. that is a joke. >> my wife was general council at avon. >> you're saying aol is like avon? >> they're both pioneers. >> they both begin with "a." >> you're still bitter about that whole time warner thing, aren't you? >> i can tell you about this building. when we were nice there was a merger and all the men's rooms and women's rooms in this building are papered with stock options from that deal. that's all there was. >> i try not to say everything i think but the other day i said steve case ended up with half of hawaii and jerry levin does have a place out in santa monica. >> we were out this past week

driving from nashville to new orleans. he is having contests in each small town about the great entrepreneurs trying to do startps and you win and you get $100 million for your start up. so, he's trying to make sure that we spread the start up fever to towns around america. >> he did okay. >> with the deal. >> in terms of the deal. but people who do okay with deals and then just you know retire to people like steve has something going and trying to make sure others -- >> in hawaii. you know i haven't even thought about 12 million acres. >> i got an idea. which is the hawaii institute. >> aspen institute. why didn't you think of that the first time? >> i think he did. anyway global bond yields have been the big story for investors all week long as the world watches to see when and how the fed will begin raising rates and, also the fed's not controlling what happens to the global bond market. and that's the worry.

maybe they lose control. the s&p 500 another record high. more on the equity side. chief u.s. equity strategist at deutsche bank and jonathan galab at rbc capital markets. do either of you think that there won't be ea high single single-digit gain for 2015? >> i think there will be a low double-digit gain for 2015. >> you, david? >> i got about 5% 7% total return for the year. >> we average you two guys together and we get the high single digit gain for 2015. do we have anything else to talk about? >> i think this is going to be a dangerous summer. >> dangerous. why? >> the umisser of living dangerous. >> i don't think this is a rally to chase. long-term yields are rising not because the feds expect it to hike. investers are thinking that the fed doesn't hike and that the dollar doesn't appreciate any more. the risk is that long-term yields could sdart climbing a lot faster if there is lost

confidence in the dollar. >> if the fed isn't going to hike why is it rising? >> the thing is the feds are allowing inflation pressures to accumulate because the fed is fearful of a stronger dollar overly weighing on the economy. as we've seen year to date. >> real inflation would be bad for bonds if it actually appeared. >> what data point do we have on real inflations that we're hitting at? >> we do. i mean if you look at the labor market, you see a tightening labor market. we're not worried about commodity or goods inflation. we're worried about labor inflation starting now and accumulating over the coming years. >> silver lining to that cloud. >> wage growth. prosperity is one. productivity is what is driving wage growth. not when it's rising. >> we haven't seen 2% wage growth yet. i think there has been this fear that you know you print enough money and it's this inflation thing is around the corner. it hasn't shown up yet.

and we also know that if you look at when interest rates have been rising over the last five years because interest rates are so low that stocks actually move higher because it's a sign of greater economic success. i think that if the fed can get to 100 basis points in a year from now. i say if because if the market allows them, stocks will be higher on that because it will tell the world that zero interest rates are not a necessity that the world is not broken and going back to normal is going to mean a better stock market. i think that we're all looking for a boogie mans out there that i'm not sure really exist. >> so your summer isn't dangerous. tepid. >> ino, i don't think this is such a dangerous environment. if you look at the danger signal, the vix is below 13. everyone is saying all this volatility. >> move until it gets dangerous and then a massive selloff. >> we had a below 20 vix the whole recovery cycle as the

stock market moves forward. continues to do well for a very long time here. >> there's not a savings. i mean the lack of demand after the rate recession was so big that all this money printing was actually needed. and everything that all the central bankers have done. >> i don't think so at all. >> that's what worries people. is there a dislocation? even michelle she's very cosmopolitan. >> yeah. she reads ft first. >> so draggy finally saying and, i say that when our fed talks about things like this they use pig latin. won't talk about dislocation. >> he acknowledges that there are tradeoffs. negative tradeoffs from quaint quanitative easing. >> a lot of us own stocks. >> i think the risk is if you print money that gets put to use. the reality is banks are not

making those loans because, joe, like you said low demand is weak and reps and warranty issues and the government is ultimately giving you know punishing the banks for lending money when they do lend it. so, i wish that there was more irresponsible lending because it would mean the demand. right now, there's not enough of that kind of lending activity. >> i think what you're seeing in china, too, is going to be interesting. they're trying to follow the path a bit. they have much more debt to worry about than we do. >> well, the problem is if you take a communist country and you go and you use market based methods of asking them to stimulate things we'll see whether it works. >> the transmission mechanism isn't exactly the same. >> if you were a strategist that's the way i should have said it michelle. >> especially the corruption at the local levels and the fact that people aren't taking responsibility for the debt that they're creating. paulson bought and loves china

and gets to the end of the book and he's worried about municipal debt. >> a lot of it won't get paid. which is -- so sell? >> he says sell. >> raise cash positions. tilt towards the more secular growth sectors of health care and the energy industrials. even if dollar appreciation slows greatly. china is still slowing. china is stable but investment spending clear hae is coming down and less demand for u.s. capital goods and the energy space. >> also means less demand for energy. >> precisely. so they're related. and the energy energy sectors retrenching its investment spending and probable troughs this summer. >> he saw the bear in your yard. he agrees with you on the bear in your yard this morning. >> on your street. >> sell. >> exactly. you got it right away. >> sell. >> thanks guys. >> all right. good to see you this morning. coming up much more from

guest host walter isaacson. an pp changing sports tickets. our cnbc disrupter series. a testament to the work of ceo david goldberg started before he passed away earlier this month at the age of 47. julia borsteen talks about his legacy with the company's chairman. that's coming up next.

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in a week where we've been profiling cnbc disrupter 50, we remember the ceo of the company that was named number 14 on the list. survey monkey. dave goldberg passed away earlier this month at the age of 47. julia boorstin was at survey monkey's headquarters yesterday. she joins us with more. >> the people that we talked to gave late ceo dave goldberg all the credit for turning survey monkey which he took over in 2009 as a disrupter. credited by friends and colleagues for inspiring dozens of entrepreneurs. touching people in every corner of silicon valley. >> given you are the guru. >> he built survey monkey into a powerful platform.

enabling people to make better decisions with data. growing the company to over 500 employees. >> mostly still at work but individuals to being a platform that both individuals and enterprises are using and we're building data businesses. we launched a new data business. >> he had this vision for building into a data insights platform, which is what it is today. that realization over the last six years is a big plan to take it to the next level. but he definitely was ahead of the curve, like he was on so many other things he worked on. >> reporter: zander a survey monkey board member is acting as survey monkey's temporary executive chairman while the board searches for a ceo. >> dave was fascinated by business models. i mean disrupter is such an appropriate term for dave as a visionary and leader of this company. he loved taking all the available information and synthesizing it and he saw

survey monkey in its infancy as a data platform that could disrupt a multi-million dollar industry. >> reporter: a devoted father and husband to cheryl. >> my mom is a nonprofit entrepreneur. i grew up with you know a strong example of a woman who is a leader and i think we need more of those because that will help people be less intimidated, if they are. >> he took that love of kind of helping others and brought it and made it part of the business here at survey monkey. a product called survey monkey contribute. we donated $6 million to date and it's just been good for business. it's been good for philanthropy and help people donate through survey monkey. dave will be forever missed but the organization that he built and his legacy will be built and grown for a long time.

>> the folks at survey monkey etell us that they've been overwhelmed by the outpouring of support and remembrances and really just a testimony to how many people's lives he touched. michelle? >> tough, tough story. thank you so much, julia. you knew, mr. goldberg and cheryl as well. >> cheryl has done so much especially women, but incluseivity of all sorts. when you go to their house, you know the reason that she can be that way is a great partnership. they had their kids you know he'd come home 6:00 to 8:00 and when you see a partnership like that and you see the work and family balance people like that can do it helped create a movement that cheryl was the face of but david was an equal partner to. >> in terms of being a disrupter and survey monkey. i mean to do that at the same time while doing that. women know how hard doing that is. >> every time when you wander in the valley you say, wow, and

he's a nice guy. that's what david was. >> you know what that implies is most of them aren't nice. >> that's what that implies. exactly. michelle, you got it. >> might be more than implying. >> all right. thanks very much. before we take a break. some sad news we have been talking about this morning. from the music world, we'll celebrate b.b.'s life. the king of blues has died. b.b. king passing away in his sleep at his home in las vegas. 89 years old. he was touring until a couple months ago. made his name playing in small clubs to musicians and blues lovers and wasn't until the '70s that his tours took him out of the small venues and into big concert halls and large amp theaters. 18 grammys to his name in 2006. president george w. bush presented b.b. with the medal of freedom. this is thrill is gone. one of his best known songs. coming up, squawk sports news. two unlikely boxing opponents.

plus the latest news in the patriots' deflategate scandal. that's coming up next. time now for aflac trivia question. how many people use facebook on a mobile device on a monthly basis? the answer when cnbc "squawk box" continues.. hale. . . aflac! and a gentle wavelike motion... ahhh- ahhhhhh. liberate your spine... ahhh-ahhhhhh......aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just one day. ahh! so he had your back? yep. in just one day, we approve and pay. one day pay, only from aflac. [duck snoring]

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now the answer to today's aflac trivia question. how many people use facebook on a mobile device on a monthly basis? the answer more than 1.1 billion people. in squawk sports news. two unexpected opponents will get into a boxing ring today for charity. former presidential candidate mitt romney will face off against heavyweight boxing champion evander holyfield. a nonprofit that helped provide medical equipment, vision screenings and surgeries for people in developing countries. romney was introduced with the weight of 179 pounds and holyfield weighed in at 226.5. and then the match takes place in salt lake city on friday night. that doesn't seem quite fair.

that doesn't look like it's going to be. >> how tall is romney? 6'2". >> he's not. >> according to google. >> he's no where near 6'2". >> 179 at 6'2". that would be very thin. >> romney looks good. next to holyfield looks like holyfield kick some sand in his face and that looks like one of those old-fashioned. this should be fun. good for charity. 6'1" for holyfield. >> might be the better fight than what i saw recently. tom brady is fighting his deflategate punishment. over his four-game suspension without pay. the appeal asks the commissioner to appoint an independent arbitrator to hear the case and roger goodell the nfl commissioner could rule on the appeal himself. or he could designate someone else to hear the case. we're going to have a big, a big

sports look at what nbc has this weekend. do you know what nbc has this weekend? >> tell me. >> rangers/lightning and preakness. you were around for seattle-- >> with the belmont. such a long race. the belmont. >> these horses. haven't you heard this horse is special, though? >> he actually doesn't have the speed that some of the great horses had. >> he ran 50 feet longer and faster than everyone. >> he's a better runner you're right. you got your money on the triple crown. >> i don't know about that. hope springs eternal. if he wins the preakness, i'll take you to belmont. but that's tomorrow as well. you can imagine, if the preakness. this earlier and i said this about a million times, too. i said because i know horse racing. i said to win the triple crown, the horse needs, the first thing it needs to do is win that

kentucky derby. i came up with that. >> very good. >> what was second? >> because i said but i said, we'll know after the kentucky derby whether the horse has a chance for the triple crown. if any horse wins the kentucky derby, but i was talking about american pharaoh. >> american pharaoh is great but i was wrong on the kentucky derby because i always thought carpe diem which has some great speed but got caught it was number two and just doesn't run good races. >> you know you know what i had on mine. >> it's like stock picking. >> some people took knockout because of floyd mayweather. you know which horse i had my money on. far right. >> very good. i would have thought american pharaoh would have suited you well. >> and he's a nice guy. talk about a game-time decision. coming up next we'll tell you about an app you can use to score last-minute tickets to

sporting events. the ceo of game time joins us next with investors and part owner of the san francisco giants, jeff melt. if that name sounds familiar you may remember jeff as one of the early architects of yahoo!. don't move. financial noise financial noise financial noise financial noise

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welcome back to "squawk box." here are some of the stocks that are front and center this morning. deere downgraded from underweight to neutral. among the reasons, the analysts cite a possible liquidity crunch for farmers. expected better than expected earnings and the restaurant chain operator earns results will fall short of estimates. shares of digital, king digital getting crushed. the company warning of what it calls seasonally softer growth in the mid-year period. and check this out, shell's massive 400-foot long polar pioneer. this is an off-shore drilling rig arrived in seattle after a 12-hour trip from the port of los angeles. it was met by more than a dozen protesters and kayaks who oppose

arctic drilling. shell is using the port of seattle to load its rigs and vessels with supplies. the company is planning to explore for oil off of alaska's northwest coast this summer. those things are amazing. have you been on one of these? they are so cool. >> i was just in seattle yesterday. just came back and the seattle city council is now trying to think of banning this in the port. which is you know -- >> you must agree with them. >> not in the least. >> no. >> give you a look at good things happening in this world because america is becoming more energy efishant. >> you have to allow them to be innovative. >> you can't expect city council. >> i can hold them to higher standards and say, hey, stop being ridiculous. >> i don't hold any city council to any higher standards. the mobile market is growing, obviously, ticketing app game time allow consumers to buy last-minute seats to sporting events. a revenue opportunity that is attracted investors from inside

front offices. brad griffith is the ceo and founder of game time and jeff mallet former san francisco giants partner and investor. i immediately thought, i mean are you like billy dean? you know how to do big data. did you help? i've seen success, i've seen too much success. >> i know sorry. >> last night you lost though. >> three world series five years. >> three in five. is that because of him? >> yes, a little bit. >> getting people in the building to watch it. >> it's not a billy dean story, is it? >> not a billy dean story but reimagining ticketing for the mobile economy. essentially what we do is put high rez photos up front and we also remove printing from the equation. we do cap purchasing. now, what used to take you 30 minutes in 2012 takes you 30 second. >> what do you mean high-risk photo. >> you get a photo from every section.

so you know exactly what your experience is going to be. >> this is the view from the seat that you could buy if you wanted to. >> exactly. >> you can buy right up to the game time or right after? >> buy up to 90 minutes right after the game time as of two months agoe. >> take a look and see if there are nice people sitting around you. >> yeah. not in realtime. but one for every section for every stadium that we serve. >> this helps everyone. i mean you could never have an empty seat again. this could help -- >> obviously, the trend towards mobile we're all seeing is coming fast and furious and this fits into the sporting world. 14 billion ticketing market and inefficiencies and ability now for this next generation primarily 18 to 34. the phone is their life and that last-minute decision. they want to be able to look at their seat get in and as they're walking down choosing between going to the restaurant or going to the ball game is now -- >> you think about one of the trends we've seen is that cars that are always parked maybe

they should be getting driven around by somebody who needs a ride or apartments that are empty. maybe there should be someone living there. so you have air b&b and uber. hockey tickets cost $300. why if there are not empty seats why can't you buy them for 55 minutes before you go in. >> it creates an efficient marketplace. ability working with teams and leagues and the ability to find the right person at the right price. >> what is key, from uber dynamic pricing. how dynamic is the pricing here? shifting every minute. >> every ten seconds the pricing changes on game time and hits all the different price points as you mentioned. so, for thinge raers the other night, it was $700 to get in. you can see baseball tickets for $5. 75 minutes before the game. >> that's an algorithm or an individual who says cut the price. >> the sellers are putting the pricing on to the app. we look at as many as 5,000

listings and curate the best 50 and produce those on the phone for you. so it removes the need to sift through. >> the ticketholder can theoretically compete to get his or her ticket on because you're not going to take all the people posting. >> do the team owners also put up tickets? >> team owners and we have larger sellers and individual fans on the platform. everyone competes to give you the best opportunity and we'll service the 50 best options for the fan. >> it's a little bit like an airline seat. the dynamic, you wait a bit and you can grab the seat. >> search pricing for uber or the opposite of surge pricing. >> prices change over time no question about it. you can find great deals. >> what is to prevent taking down one of your big competitors from doing that. >> we dont actually think about those guys that much. they were great for the web. we think mobile is a real opportunity a platform shift to reinvent it. we think about competing with the couch and with competing with the bar and compete against people who are watching it on tv. since 2000 with high-def tvs.

this is the first major ticketing innovation since 2000. this big shift in mobile will drive a ton in demand. >> you guys never answer this question. but what is your exit strategy? >> no exit strategy. >> i was with this company forever. love, not money. >> as the investor and seeing it from the san francisco giants point of view and the league point of view, just such a hypergrowth market right now. demand side is both on supply tickets aren't wanting to find a home at the right price. whether it's no shows. 20% of tickets are no shows and on the flip side consumers are looking for that choice at the last minute. so, no exit. we're riding this and just filling the demand as fast as we can. >> i'm bringing you back to a previous entry. first, yahoo!. exit strategy there. you were coo. >> better part of eight years. first $4 billion. >> you were 11 when you had nice, long hair. >> i did. no, it's good time. it's interesting. to be independent i joined

yahoo! in 1995. saw through revenue growth and first 5,000 people. right now what is happening with them they are still finding their way on the most critical element, which is throwing the top line and i think marissa has done a great job in the last 18 months of stabilizing the company. >> what do you think about verizon buying aol? >> i'm not surprised. an easy balance sheet item to do. >> it's cheap. >> it is cheap. and, you know distribution is always looking for content and content is always looking for distribution. at the end of the day, it's kind of a wash. kudos to tim armstrong for creating value. double the stock on that one. and it will be the brands that matter. tech crunch, "huffington post". >> we are told this was actually all about ad technology. that's what i thought. this is the marriage of content and pipes. they say it is about better advertising. >> a value in the back hend that everybody hopes for. on the front end, branding content. >> if you had been at yahoo!

still, would you have been looking at aol or breathing a sigh of relief? >> all the way through. and there was not enough creative value between the two companies over the years. >> so you closed on $13 million of financing just a couple days ago, right? >> yeah that's right. >> that's nice. >> it's great. we're going to use it for expanding in all departments. you know our app really resonates with people 18 to 34. 85% of our users are 34 and younger. so, we're hiring people in that demo to attract people. >> we have a disrupter series. what about the colorful characters outside like the great american ballpark in cincinnati. those guys with the tickets and everything. are you putting those guys out? >> they'll still find -- >> how will they make a living? >> they'll find a way. but now we're giving consumers that trust it. their tickets are validated and right on their phone. >> can you spread this to other things like the opera and other

concerts? >> live sort of theater-type events. certainly thinking about music. >> so people don't have to go line, they can actually just -- >> potentially potentially, yeah. when it's 12 degrees out like it was last time we were here. not a great user experience. so, yeah e we think once we nail sports we can do a lot of other verticals but staying focused here on sports for the foreseeable futer. >> what social media works best for you to get the word out? >> so twitter and facebook have been really successful for us so far. we're always on the lookout for new platforms and all the emerging in social but those have been the keys for us so far. >> the rangers start tomorrow. i can do something with that if i wanted to go to one of these games. >> rangers tickets available right now. like i said about $700 to get in the door the other night. >> what are the prices now? >> 350 for that game one for the rangers. so, half price. get them now. >> half price. there you go.

>> so you still did pretty well even though the stock price declined. >> i did. >> he owns the giants. he did okay. i think i'll buy a baseball team. maybe one that won three world series. >> reds guy right there. >> is this the bear again? he keeps getting phone calls about the bear. >> the bear in my driveway. >> and a cub. >> a bear market. >> eeth arcub orither a cub or a friend named. fisher conservation. top chef tom colicchio is on a boat with steve liesman. they'll join us live from the hudson river, next.

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yep. let's take a look at stocks to watch this morning. keurig green mountain shares trading lower. the company telling investors

that its forthcoming keurig cold machine will be priced between $269 and $359. analysts worry that is too high. results are driven by demand by makers of memory chips for the chipmaking equipment. and a mixed quarter at nordstrom nordstrom. same-store sales rose more than expected. coming up, this morning, actually, tom colcchio on a boat with steve liesman. they'll join us next. plus we want to know what stories you're buzzing about today. tweet it to us at squawkcnbc and use the #keepsquawking. we'll read them all and then share the best of the bunch at 8:50 eastern. out of 42 vehicles based on 6 different criteria, why did a panel of 11 automotive experts name the volkswagen golf

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fishermen gathering to compete in the largest catch and release fishing tournament this morning. steve liesman is there to talk cooking and conservation. he's on a boat with top chef tom colcchio. tom, steve, hi. >> i'm here with tom colcchio talk fishing and conservation at the manhattan cup tournament. tom, thanks for joining us. what are weic cooking today? >> i have sword fish and i am making tacos. the reason i i'm using sword

fish we're kicking off something called sos, save our stripers. keep stripe bass off the menu for a period of time. 20 years ago chefs did this with sword fish. >> you didn't serve sword fish at restaurants? >> we took sword fish off the menu and they were being overfished and now we have a sword fish that is really great. >> your restaurants in new york and other top restaurants in new york. >> 20 chefs onboard representing 40 restaurants. we're trying to get striper off the menu. >> what we've learned economically, if i could for a second these fish are more valuable alive than they are dead because of the economic impact of recreational fishing? >> absolutely. $300 million recreational fishing. these fish are valuable and we want to save the resource. when i was a kid growing up i fished with my grandfather and stripers weren't around and i started fishing in the '60s and

didn't see a striper until my 20s. i don't want to tell my grandchildren stripers aren't here any more. >> sword fish and leaks going on. >> we're going to break it up. we have grill it up and break it up and take a little bit of fish and put it on here. take some of the leeks and we have some salsa and this is for you, my friend. >> this is for me. we'll wrap it up here. so guys we're having a little sword fish tacos, not striped bass tacos. we'll go out here into the hudson bay here into new york harbor. staten island, and catch a lot of big striped bass and let them all go. michelle, joe, back to you. >> you are in seventh heaven. you love to fish almost as much as you love to play guitar or is it more? >> here's the thing colicchio

fish r fisher, musician and we'll play music later on after the tournament guys. >> terrific. thank you, steve. >> he seems funny, though, steve. in washington news president obama meeting with representatives from six middle east allies this week. the gulf countries are upset about a possible deal that the united states is brokering with iran. our guest host this morning is walter isaacson cnbc contributor and i always i don't know. we're living in kind of an alice in wonderland. everyone is using that expression now. >> through the looking glass. >> i just think it's weird that saudi arabia we have soured with that key ally. soured with israel. but we're, it seems to be repairing and almost getting closer to iran. i never would have predicted this. i'm not sure what to make of it. >> historical basis for it. henry kissinger and richard nixon did which was one of the

great foreign policies in that region. it was a balance of power and it was really important to keep iran, which is the only real country in that region. i mean that's a persian country that was never one of those straight line countries that the british and french divvied up in 1912 or so. so, you know they made iran of course running iran and wasn't an ayatollah or cleric and they made a nice balance of power in the region. can you bring iran back into being a normal nation state rather than a revolutionary shiite empire? if you do wow, that's huge because the saudi as much as we may say, you know they're our ally they're not the world's friendliest ally. >> that's fine. but how does this deal get us closer to a more normal iran? >> it gets us real close if you lift and you have trading with iran. you have -- >> the revolutionary regime goes away?

>> i do think that at some point even with cuba that iran is the fifth largest language on the internet. young people in iran are sitting there with more they want to get on "shark tank" badly. this is a country that has more natural ifinities over the past 100 years with the united states. you could envision a more normal and this is what henry kissinger wrote about. >> the popules foration for sure. but you're saying this leads to regime change in some way. >> lead to a evolution in the regime. you're looking at a evolution in the regime. if you look not at the supreme leader you have seen especially zarif who was here in new york, i mean before he became foreign minister with president rohani. this is a evolutionary change. will it happen all the way? will they take power totally from a supreme leader? unlikely, but you keep marching down that path and you're better

off than not marching down that path. >> you acknowledge the election has an asterisk. >> no i mean -- >> they were allowed to run the democracy. >> the one that supreme leader most wanted but fought against became the president and got control of the foreign policy. and, you know, ambassador zarif who was at the u.n. here comes back and runs it. you know what you're going to see, i suspect, is zarif and the foreign minister of saudi arabia who is also here in the united states. i mean they're both very you know they could walk down sixth avenue. >> zarif started in the united states. they will have a couple of visits over the next few months. it's in their interest too, to have sort of a balance. >> same with look how long we tried with cuba one way. now, we try this other way. it almost looks like you're

putting the cart before the horse. i mean i would think i would say to iran look cut the crap with the sponsoring terrorism. all around the world, all these different places and recognize israel's right to exist. i would want tahave some things up front. this way you're doing it that you're hoping by not insisting on that on the front end of things, you're hoping that somehow you would culture some change. >> a true strategic interest in the united states. >> which is obviously, no more enrichment to weapons grade at florida intrusive inspexz sctions that sort of thing. you also do things like we are keeping sanctions because of your behavior with hezbollah and others. i'm not trying to be a total optimist optimist. you can look at a small modification of behavior already with the iranians whether it's yemen or hezbollah or some of the things in the region. i'm too much of an optimistic for you. but it's probably better to try

to do a kissinger-like balance of power in that renalen enregion than to keep trying something as einstein said. if you find something over and over again that does the work. >> it was working. they came to the table because the sanctions were punishing each other so hard. >> we need to stay tuned. i mean who knows how syria plays into this. the whole arab spring. five years from now we look back and i don't know what it will look like there. >> five months from now. the whole syrian thing. >> here's the transition. >> by the way, i would not go barreling into syria to try to sort it out right now like some people have been saying. >> hard turn here. next we're going to be talking to a company that tricked plants into producing the same proteins as meat. an evolutionary leap from a vegy burger. cnbc disrupter. impossible foods. we'll try that vegy burger which is meant to look and taste

like meat. there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too.

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profiting from obama care.

universal health positioning itself early to take advantage of the changes in health care system. alan miller answers a "squawk ceo house call" and stops by the set to talk about the future in hospitals. a big weekend for general motors. the new chevy cumero set to be unveiled. take it for a test drive with daniel ahman. it looks like meat but it does taste like meat? impossible foods is disrupting the food industry by making meat-like products out of plant. we do a taste test michelle that is check out the science behind the burgers as the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york. this is "squawk box." welcome back to "squawk box" here on cnbc first in business

worldwide. i'm joe kernen along with michelle caruso-cabrera. consolidating a little bit. yesterday's big gains. check out the markets in europe. up 24 on the dow, by the way. up 4 on the s&p and then with a quick look at europe which, you know, it should be up based on what happened here yesterday. they still are a bit of a tail once in a while. from the -- yeah they're up a little bit based on the strong session we had yesterday, except in athens which is down and getting close to that 800 level, again. >> that trading range it has been stuck in. stumbling block and the expected conclusion some of the biggest banks. the firms reportedly want assurances from regulators that they should not be barred from certain businesses before pleading guilty to criminal charges. this is said to be causing a delay in multi-billion dollar settlements. google announcing vehicle will hit roads in northern california this summer. 25 of the two-seater cars have

been assembled at this point. i can't wait. and a developing story this morning. officials say u.s. marine helicopter that rashcrashed on a mountainside in nepal has been completely destroyed. six marines, two soldiers were on a mission to deliver aid to earthquake victims. a few stocks on the move this morning. el pollo loco better than expected and chain results will fall short of expectations. missed estimates, but same-store sales rose more than expected and applied materials, revenue and earnings topped estimates driven by demand frommakers of memory chips. party city reporting results for the first time as a publicly traded company. king digital beating the street on top and bottom lines and the candy crush maker warns a seasonally softer growth and then keurig green mountain shares trading lower.

this soda stream thing will be priced between $299 and 369 there and some analysts worry that that price is too high. wow. our next guest is a true health care veteran having been at the helm of his company for almost 40 years with more than 220 u.s. facilities universal health services is one of the nation's largest hospital operators. the stock has also been on a healthy streak not just over the past year, but i want to tell you about it for a long time. outperforming the s&p 500 by about 30%. here now with us on set, alan miller chairman founder and ceo. hear that chairman founder and ceo of universal health services and, four guys they got four ceos that i'm going to mention that are long-running ceos that you're in company with. lex wesler 52 years. and his stock since ' 95 is up

2,066%. warren buffett since '95 his stock up 857%. and third spot alan miller 37 years stock up 3,700%. 3,700%. and then i haven't heard of this fourth guy or his company. the rupert murdoch, 21st century fox. 36 years, 368%. i mean you're in town because someone is doing a piece on you, right? "fortune." >> "fortune" magazine. >> you saw a few changes in 37 years. the biggest change happened six years ago? >> i think the biggest change is all of the information. everybody has information and it's huge. and in our business, patients have information. they have all sorts of information that they talk to doctors and hospitals about. where in the past they just for the most part say, okay doc,

here's what i have and the doc told you what they were going to do. >> hospitals benefitted obviously, from the rise in the ranks of the insured. couple months ago i saw that emergency room visits have not gone down that it's hard with so many people. now there's not enough primary care physicians. people are still going to the emergency rooms. >> the other thing from the primary care physicians that their reimbursement is not good. so, they get better reimbursement when they take care of people who have insurance from their employer like us. so, the doctors are reluctant to schedule appointments. so people are still going to the emergency room which is opposite of what obama care was supposed to do. >> what is amazing we saw it already happen in romney carecare massachusetts. emergency room visits went up because people could not get in to see a general practitioner. >> we're in business. if they raise the reimbursement to the primary care people they would be more likely to make

appointments with people that have lower price insurance or being subsidized by the federal government. that is a big thing. they could solve that easily. >> i was going to say, it will cost you more money. >> but the fact that more people are insured, that's helping your bottom line. >> yes, it is. it has helped us with regard to their debt. because we had to take care of those people. as you know people present themselves. they must be taken care of. and we had bad debt. all the hospital husband bad debt that was approaching between 15 and 20 and 25% in some cases. not -- ours were a little under 20. that has gone down substantially because people have coverage. they can pay. and we help them pay. we help them so that they can be registered in exchanges and have a source of payment. >> there is this weird balance with health care these days. not just because of obama care,

but because of what we had to do. there is kind of a good thing because people finally have to mind their ps and qs and finally have to keep track of everything and prices just can't rise. but then you worry that if you increase the supply without increasing the demand sooner or later it's going to break the system. is information technology going to alleviate that or do we need or demand sooner or later going to be a problem here? >> i think that information will be helpful in the long run. you know, the government has been helping us pay for electronic health record. every hospital, every doctor will have to have all the information online. which will be very helpful. it will eliminate duplication. if you go in as you go in now to the same hospital same doctor, they may ask you to fill out all the forms all over again. but you say, i just did this. but our computer doesn't have it. you saw this other person. that will be eliminated. that's helpful. the other thing also quality

wise. if you are in a foreign state and you are in an accident or something like that they can pull up your record and know what medications you should have, what you're allergic to what you have had in the past. it's a wonderful thing. >> but once you have the confluence of mobile technology wearables, electronic medical records, big data and big data analytics, would that change the entire way we decide how to take care of people? >> probably. what i'm thinking about all the time is where are we going to be five years from now? i mean as you mentioned earlier, i've been at it a long time. >> you'll still be ceo. >> but if you get fat and happy and think that what you're doing now is going to be the way it's always going to be you're going to make a big mistake. >> what scares me here and maybe it's just scare tactics, but i hear there are places where people say yeah everybody here is covered, but no one can get health care. you hear about specialists nine months, and now people with money vote for isaacson.

people like that. they're always going to be able to get to see a specialist. but that doesn't help people that have to wait in line. >> i agree, a shortage of nurses and there is reported to be a big shortage of doctors. >> it's going to get worse. >> i totally agree. the way to do that you have to open up the medical school and do more subsidizing and get more of these people trained and ready to -- >> how about having nurses take over more of the role. >> they're doing it. medical assistants. >> probably nine out of ten things you don't need a doctor although you'd want one. >> somebody else can go to a nurse. >> in part. but it gets a little scary when people are making a diagnosis and they're not exactly sure what it is. if your arm is broken that's fine. we know exactly what it is. take care of it. if it's something that people don't know about. i would like a doctor who is really trained to really take a look -- >> what about watson. a computer that is really trained to make the diagnosis? >> we'll see.

>> when the machines don't like humans any more we'll see what they prescribe. >> how much longer will you be ceo? >> how much longer am i going to live. i don't know. i have all my faculties and i'm enjoying it. i think i'm good. >> 3,700. above all those other people. >> you have a son with you. >> i have a son in the business. he's the president of the company. and i devote more time now to strategy and working on deals, et cetera than i did earlier when we were building a company. >> operation. >> from the operations from the outside. but, no as long as i'm having a good time. they said when you retire you can do whatever you want. >> you are doing whatever you want. >> i am doing whatever i want. i'm happy to do it. >> fantastic. >> thank you. you know people at "fortune." >> in this very building. >> that was convenient for you, good. >> fortune 500 they do

interviews and stories and -- >> this is a good one. and thanks for stopping by here first. >> thank you very much. >> pleasure. >> good to see you. coming up what is triple crown contender american pharaoh worth? a look at his win in the kentucky derby has definitely impacted his value. he has switched direction. and later, since its debut in the '60s the chevy camaro one of america's iconic muscle cars. this weekend gm will introduce its sixth generation to the world. but you don't have to wait because you're getting a sneak peek right here. take a test drive in just a few minutes on "squawk box." we'll be right back.

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the first time among the latest catalysts reports that the company is in talks to enter china. the second leg of the triple crown is this weekend's big event tomorrow on nbc. kentucky derby winner american pharaoh is favored in the preakness and a win would drive his value even higher. robert frank is here now to tell us how much this horse could be worth. it's starting in the number he is starting in the number one position. >> top position. >> but is it better he ran much further than every other horse in the starting position. >> horse hasn't won in that position since 1994. it's been a while. a tough position. >> only once in 54 years you went from the first position. >> it's tough. but the valuation story on this horse is really interesting. he was sold two years ago at auction for $300,000. if he wins tomorrow, american pharaoh can be worth ten times that amount and not to mention those stud fees.

two years for american pharaoh took first place at the derby. before he'd run even a single race he hit the auction block at saratoga springs, new york selling for $300,000. over the next year, he won five races. purses totaling $1.4 million. before setting foot in the run for the roses at the derby, experts pegged his value at around $10 million. this big derby finish at churchill downs made him worth much more. some of the top thoroughbred agents now estimate his value between 15 and $20 million. that's based on racing performance, physical shape and most importantly, his potential to breed another champion. he's now the favorite at preakness. goes on to take the triple crown, experts expect american pharaoh to rule the

thoroughbread world and value north of $30 million. >> american pharaoh sire currently gets a stud fee of $60,000. and that horse only came in second in the derby. didn't have a chance to win. >> i will trade you that any time for that horse. so that line across like it's black and then red and looks like someone threw some paint on it. >> they're both trophies. >> the carrying cost of a horse. you have to feed a horse. >> what if someone finally puts on glasses and sees the naked emperor. then what? i mean, even in a post-zombie apocalypse world. you can ride the horse. >> the horse is more beautiful. >> it is. thank you. >> all in the eye of the beholder. >> and instead of being hung like a painting -- >> i think i'm going to not go there. but -- >> come on.

>> won the derby, didn't he run the whole thing on the outside almost? came up on the outside. >> a lot of it was on the outside. apparently -- >> how is he going to do it this time? >> everyone who looks at this horse says this horse as the one of the most efficient gates and just easy strides that they've ever seen. he's not a fast horse, but the ease with which this horse runs. >> we wait every year. we wait every year for 1978. it's been a long time. >> what is frustrating, isn't the economics of the business the stud fees mean that these horses get pulled from racing very early on. you're never going to get another secretariat because we don't let them run very long. they'll run and the public will embrace them. >> i'll put my money on flowering line. >> to win the triple crown, he will have to win this race. >> all i said was to win the triple crown he had to win the kentucky derby. coming up as we alluded to

this, a big weekend for nbc sports group. you can catch all the action starting tomorrow afternoon at 3:00 p.m. on nbc sports network. it culminates with the preakness at 4:30 p.m. eastern tomorrow. today you can watch some of it? you can watch it at 3:00 today. oh on sports network. you can start watching the preakness today. a win for american pharaoh will set up the possibility as we have been alluded to. the first triple crown winner. was it affirm or seattle slew? >> okay. >> and then before the preakness, catch the stanley cup playoffs. the eastern conference finals when the new york rangers, this is ranger town by the way, where we're broadcasting from on the tampa bay lightning and the puck drops right at 1:00 p.m. eastern time. we started the show after the rangers won with where else would you have a hockey not

even the stanley cup, but start the show. i'm sorry, we're here. it's our perrerogative. >> we're new york sentic. >> capital of the world. >> i was around for secretariat. >> what a horse, right? >> amazing. >> big. remember big brown. coming up it's become one of the premier inshore fishing tournaments for charity on the east coast and just minutes from manhattan manhattan. the fishermen raises money for autism and we hit the dock next with steve liesman and getting ready to go fishing for a good cause. then later the new chevy camaro set to be unveiled this weekend. cnbc gets exclusive access to the company's newest model first and speaks to daniel ahmen. so was the 100% electric e-golf. and the 45 highway mpg tdi clean diesel.

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fishermen from around the country competing in today's manhattan cup tournament. part of the tournament is to offer fisher trips to veteran who turn to the sea to help them find their way home. let's get to steve liesman who is live at chelsea pier in new york with more. steve? >> michelle, thanks very much. i'm here with our boldest, our most courageous veterans and part of the tournament is they take veterans fishing and they go eto sea to help find their way home. let's talk to a few of them and

see where they're from and when they served. >> my name is anthony gonzalez and i was in the arm ey and served 2002 to 2004. >> let's go right here. you were like a bunch. >> i served from 1999 to present, currently out on medical. i served two tours in iraq. from '03 to '09. >> how about you? >> i'm regime from brooklyn and united states army staff sergeant retired 2004 to 2006. >> right back here. >> robert pineiro, three tours in iraq. >> totally violated military protocol. we have here lieutenant general balcourt. tell us why this is an important thing that these veteran comes fishing. >> thank you steve. first of all, i have to tell you, every year when i break out a fresh calendar i go to the month of may and barak out the second and third week because i

know this tournament will take place. this is probably my fourth time here. i haven't been back since sandy, but to see the joy on their face when they hook a fish and bring it in and just before we started this morning, listen to them all talk about the last time they were here, and the fish that they caught and the experience that they had. this is an awesome event. i just want to thank everybody behind the scenes. wounded warrior project. red, white and blue. all the book captains that work so hard to support this this is terrific. we need more people like them. >> matthew, tell us your story. >> i was injured in iraq 2006. it's been a long time you know rehabbing and getting back to my new normal. and it's really just a pleasure to be here. and be a part of the manhattan cup and, really it's the therapeutic beneficial reconnection with nature that fishing provides us and also the community aspect of meeting all these great, wonderful, community-based individuals that are out here to support us. and thank us for our service.

we're very blessed. >> we have a gentlemen over here with healing. where did he go? he's not here right now. anyway, tell us your story then. >> simpson from paterson jersey. retired now. >> where did you serve? >> iraq heidelberg germany. >> have you been out here fishing before? >> oh, yeah last year. how did that work for you? >> it was great. >> lieutenant, tell us what people at home if they want to help out with wounded veterans and veterans in general. >> there are all sorts of opportunities. one, of course the check book but their time and whether it's with project healing waters, red, white and blue. wounded warrior project. again, it's important. we can't forget. even though we're bringing the troops home from afghanistan and iraq. we can't forget those that served and still tine to fight their way back home and establish that new normal. it doesn't go away. we got to stay with them.

>> thank you very much. guys the first time we had, is this a legitimate squad we had out here. >> oda. >> michelle back to you guys from the fishing conservation association. >> terrific stuff. steve liesman, thanks so much. gm president daniel amen joins phil lebeau from the test track with an exclusive ride in the new chevy camaro. would you eat a meatless yet a meat-like hamburger? there it is. that's not meat. people like bill gates are betting on a population boom and being able to feed the world and investing in this company impossible foods looking to make it possible. ceo joins us in a bit. as we head to break, take a look at the u.s. equity futures subject we'll have a positive open.

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welcome back to "squawk box." among the stories front and center this morning, a number of mobile operators reportedly plan

to block online advertising on their networks. the fd points to one european wireless carrier which is installing blocking software in its data centers. this is likely to lead to a battle with big digital media companies. u.s. deal making climbing 48% year over year with more than $565 billion in transactions since january. this is the highest level since 2007. we know what happened after that. apple says its first home kit smart devices will be available next month. there had been a media report that the platform roll out would be pushed back until late summer. ecb president lifting markets overseas. jim joins us from the cme group. let's tell everybody what he said. said a couple things about monetary policy which were negative but ultimately he told the world that quantitative easing is going to go full throttle over eneurope. jim? >> this is amazing to me because

we've seen rates go up significantly over the last couple weeks. that began in germany, despite the fact that still qe and global central banks. if you told me three weeks ago that long-term interest rates were going to go up and data was lukewarm. and stocks would be okay with that i would have thought you were crazy. i think at the end oof the day, the theory is this. if bonds are toxic and i think toxic is not the right word. if bonds are something that people will look else where to put their money still a ton of money over the globe. and u.s. stocks are a decent place to put it and i think the stock market is fine. >> we've traded sideways essentially. suddenly yesterday we get the s&p 500 at a new high. quietly. do we still stick in the trading range or do we get a real breakout here do you think? >> to put it in perspective. the trading range over the last ten months and very few times had this tight of trading range. we're knocking at the door.

in my opinion if the s&p are ten handles higher at the end oof the day, i think it's a fairly clean break out and i will jump on that. the other side of the coin if we reject this and have a poor day today, then all bets are off. today is definitely decision day and i think it's a pretty big deal. >> jim good to see you. thanks for joining us this morning. all right, time for a cnbc exclusive. a test drive with a new chevy camaro. phil lebeau is on the outoskirts of detroit. the site of the gm test track. can i order that car, phil? >> i think you can probably order it and this is the man to ask right here. dan amen the president of general motors. we'll go for a test drive and talk more about the camaro in a little bit. but, joe just asked me, can people order this right now or wait a little bit before you can order it? >> for sale in dealerships. >> let me ask a few questions.

the first one being, board member who is going to be leaving the board. out with some comments yesterday and basically saying look we made a lot of change in general motors, but still an arrogance within the company of owe know better than the competition. when you hear that what do you think? >> we made a huge amount of progress in the last few years. the company is in good shape today but we still have work to do through the business and we're being very clear about it. laid out some clear targets as to what we want tewchieve business wise. >> mary barra has said famously in previous jobs no more crappy cars. the camara and new malibu on the way. every new model is not a "car." >> every new model is a new car. new launches for chevrolet this year and what we need to do putting the great cars on the road and we need to continue to change the consumer perception around that. >> you do test drives. people might be surprised about that.

you're always testing some of the vehicles in development. you had a chance to do some of the test drives with the new technology. super cruise control, which you guys said is coming in 2017. semia tonmous driving. is the technology developing faster than you expected? >> the technology is developing quickly. the government said they want to accelerate it and that's all moving very quickly. >> when you're driving it what do you think? >> i think it's part of the future. where things are going. >> we're still doing things where we start a car and we get in and we rev it up and we have six cylinder generation six camaro we'll take for a test drive here. this is the grand prix track outside of detroit. dan, if you'll do the honors please. i think people will love the sound that they hear out of this car because it is a reminder that we still have six cylinders. yeah there you go. all right. buckle up and we'll get on our way. take us out on the course here. as we go tell me a little bit

about what's changed with the new camaro. >> the new camaro if you take the old car, you make it lighter and faster and more nimble. slightly smaller overall dimensions and just a wonderful thing as we'll see here in a second. >> we got the course all to our own. you've got the window down. there's the sound. now, we're going to get up to what 100, 105. >> 105, 110. >> how often when you're up do you take this vehicle when they're in development and out for a test drive like this? >> we do a lot of testing. senior executives are all heavily engaged in the development process. it's very important that we get our point of view engaged in the vehicle's development. >> bring your window up here a little bit. cut down on the wind noise. you're actually certified to take this vehicle out in development and put -- >> all right. we are having a little bit of trouble.

i was just commenting on how great the technology was that we could put a live view right in the car. obviously, still early and a little spotty. that was fantastic. the car was wrapped joe, i don't think you can buy it in that color. >> they unveil it. like stuff around it. >> really? >> it does fit in with what mary barra wants to do. she's a big camaro freak herself. and she was talking about owning a camaro. she's a real product person. you often wondered at car companies why they don't put the product people in charge. >> as opposed to a lawyer or finance person or something like that. >> steve jobs said once you start putting the marketing and finance people in charge you lose the product people. i think that's what's happening with gm right now. >> all right. we'll watch. looks great, doesn't it joe? >> i love the sound. what was the technology we were trying to use there? >> it is called live view. they have one right in the vehicle. i went live from the back seat

of a car in turkey because we were stuck in traffic. >> easy. i don't know where you're going with this. but that's your business. >> i want to live the life he thinks i lead. >> our international correspondent. we saw that disruptive video technology. disrupting the grilling world. the eating world. we'll have a meatless hamburger that is mebt to look like a meat hamburg hamburger. the company is called impossible foods. they make foods derived from animals. only they make them out of plants. how does that work? more importantly, how does it taste? i can't wait because i'm hungry. you have time toper participate in "keep squawking." use the #keepsquawking or post it on our facebook page. we'll read them all and then share the best of the bunch at 8 50 eastern time.

welcome back to "squawk box." the futures suggesting positive open. remember the s&p 500 closed at a new high. so, we closed positive today. guess what joe? that, too, would be a new high. >> on the s&p. >> on the s&p, right. >> yep. that's why you're here. it was a new high yesterday. >> i'm good like that. >> yes, yes you are. good in many ways. you are finding out. you are what you eat and our next cnbc disrupter 50 company

is aiming to change just that with meat made from plants. patrick brown is a stanford biochemistry professor who founded impossible foods and brought to "squawk box" the impossible burger. it's a meatless cheeseless, cheeseburger, right? it is actually a meatless cheeseless. not available in the u.s. until 2016. >> but we have them right here. >> we do. and this was, how did you do this? which kind of plants and how is it different than a veggie burger? >> it's fundamentally different. our challenge was to make a product that would appeal to the hard core meat lover. and that's a completely different problem from making a veggie burger. we wanted to have a product that would deliver all the pleasures that people get from eating meat without any of the baggage. no cholesterol, antibiotics, hormones e. coli.

and so we spent basically at this point almost four years with a group of now about 70 of really the best scientists in the world figuring out how to do this. and the result is actually figuring it out was hard. making it was actually relatively simple pros. we use simple ingredients from plants that you can pretty much find in your local supermarket, but exactly how we do it the choices we make. >> proprietary. you raised a lot of money. $70 plus million, right? >> yeah. >> can you tell us just a couple of the plants that are in there? the main one? >> well in this particular burger, we one of the plants is spinach. we isolate not green stuff, but

a key protein that's in spinach leafs -- >> this is interesting. >> yeah. >> is this done at the molecular level where you reengineer it? how does it work? >> no it's not really reengineering molecules. every molecule in our burger let's put it this way, is something found in nature. and -- >> you rebind the molecules? >> what we do we deliberately select out specific very specific proteins from plants. this is something that hasn't been done really before for food that have exactly the properties we need to make this food go. >> no cholesterol, no hormones no antibiotics, no bacteria. the fda you filed with them. can you see a reason why they would have a problem considering? >> not really because there's nothing in here that isn't

basically familiar and safe and already consumed. >> you've got people that are, you know, like bill gates and then big food companies that are also interested at this point in utilizing this and we're hearing more and more not just about health concerns but carbon dioxide-related problems with growing meat and i guess flatulence in cows and all this ridiculous stuff. >> most people know that animal farming is the single biggest environmental threat in the world today. it's using more than a third of every square inch of land on the planet. that's an area bigger than north and south america combined. >> for animal farming. >> just for animal farming and growing rapidly because of increasing demand in asia. it uses a third of all the water that's used by humans. it is actually an amount of water that's equivalent to 4,000 glasses of water for every

person on earth, every day goes into raising animal. >> michelle? >> back stage they said that you would want to cut one. >> cut one of these for you. >> i want a whole one. back stage they said they grilled like meat and smells fantastic, joe. >> it sizzles. >> i think there is. >> have a tomato. >> go ahead. >> this is delicious. it is so delicious. >> that's amazing. >> here have half. come on. it's got cheese on it too. no real cheese and no meat in this. it feels like a meat burger and tastes like a meat burger. >> it looks like it too. >> it's juicy. >> the technology used for the meat is the same for the cheese? i mean it's just extracting the type of protein you want? >> yeah. >> it's good. >> making very deliberate choices about the ingredients that are based on a really deep understanding of where the

flavors and textures come from in the meat and dairy products. >> you built meat. mimicking meat using the basic constituents in what is in normal meat. >> isn't it amazing? we think it is good. >> we think of it not mimicking meat but just making meat another way. >> i don't mean mimicking. i mean assembling the constituents. >> why not until 2016? what are the hurdles? >> not assembling the cholesterol and -- >> why not 2016? manufacturing hurdle? >> unlike software having finished developing the product to worldwide distribution by pushing the button we have to build manufacturing. >> how much per pound? >> at the time we launch it will be priced at a level similar to sort of high-end ground beef

like organic, grass-fed ground beef. when we're at full scale in another year and a half or so after that for sort of really national distribution we expect that our prices will be substantially lower than mass market ground beef. the stuff you would buy in the super market. we can produce this substantially less expensively. >> so it's easy to take it to scale. >> nothing is easy. >> we'll see. >> are you going to make chicken? >> oh, yeah. our goal is to replace every single product that we get today from animal farming with better products. >> that's so amazing. >> more delicious, healthier, better for the environment. >> you not going to finish that? >> get away from that. >> that was so great. thank you so much. that was terrific. >> you have to keep your hands off. up next, the stories you've been buzzing about all morning long and then we're off to new york stock exchange to hear from jim cramer. "squawk box" will be right back.

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now, earlier we asked you to send us -- i wish you could see the commercial breaks. >> climate change and they ignore science for gmos. >> one story you have been tweeting about, robert wolve tweeting, he writes he wanted us to talk more about the survey first fed race increase in september, not austan goolsbee who thinks december. 73% say it's not going to happen until september. that's up 65% who previously said that. based on the previous economic data. >> stop worrying about inflation and where the 2% not going very

fast. >> people said that's commodity inflation. you have heard asset inflation. >> are you allowed, is that okay? >> asset inflation. >> yes, you can say bejesus. with oil the way it is. we got to get to this next one. >> the bond market. >> you're going to like this. he's been watching "squawk box" all morning. he heard all about your encounter with a bear this morning and writes, black bears in suburban new jersey are all-too common. this guy was in my neighbor's driveway. >> you think, oh a bear that showed -- a bear looks like the size of a vol xwagen.

it makes it more dangerous. just like you said you don't have to be the fastest to escape a bear. are you listening? you don't have to be the fastest to escape a bear -- >> a little bit slower than you then you can get away. >> do you think the return of bears to your neighborhood -- >> climate change. isn't everything? i know the syrian war, the earthquakes, the asteroids -- all because of an extra point -- >> and the asset bubble. let's go down to the new work stocks exchange. >>. >> jim did you listen it's not actually a veggie they went and took all of the protein that is in meat and they reconstituted

it they derive it from the plant, but it sort the rebuilt meat. >> what goes into cows but in the end, the way it's cooked at the upper line would make it much better. >> i would rather have your mexican food. >> thank you. >> you can't get in there anyway. >> i couldn't get in there last weekend, i was kind of disappointed. great show this morning. >> see you in a bit. we return, the ceo of at&t will join us on monday. more "squawk box" after a short break. the conference call. the ultimate arena for business. hour after hour of diving deep, touching base, and

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you think about. that's where at&t can help. with the tools and the network you need to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most. all right, we're back now with more from our guest host this morning, walter isaacson. once worked for aol time warner.

>> i was here when the levin and steve case made the announcement. >> how did that work out for you? >> no great. >> verizon/aol deal what do you make of it. >> you know the cellular carrier saying we're not going to allow third-party ads in europe. once you get into a battle like that we want to own the customer and have the ads, that's what the verizon wants, not about the content it's about being the third best ad-serving system after yahoo! and google. they want to be in that play where we're not -- you're going to be talking with the at&t people on monday. at&t's got to get into that game as well. that's going to be an important battle in the first. >> do you think the huffpo

goes -- >> 95% sure it will either be spun off. >> do you have enough money to buy it? >> i think i'm going to buy the new york daily news. >> the huffpo is too right wing for your tastes? >> i was lucky to be in the 1990s. >> our thanks to walter who was with us for two hours. join us on monday. "squawk on the street" is next. ♪ ♪ a little tribute to the great b.b. king who pass eded away folks. i'm brian sullivan along with jim cramer live from the