host. what a weird life you have. andrew, you're trying to talk him into writing another one. you have to. don't stay here for us. if you need to do it go do it. thanks for spending time with us. >> once upon a time in russia will be a movie as well. >> thanks for joining us. "squawk on the street" begins right now. ♪ >> gondod monday morning. we're at the new york stock exchange. could this be the week we get some confirmation on the jobs number. mcdonald's sales today. bonds trying to alley after the sell off on friday own kud oil back below $59. living the stream apple's

worldwide developers conference kicks off in a few hours. we'll go out there live for complete coverage. >> mcdonald's sales down. >> and sears plans a reit. first up apple's worldwide developers conference set to begin a few hours from now. many expect the company to launch a new streaming service in conjunction with beats that would compete with spotify. apple watch apps said to be a market. >> the s&p has fallen in every developer conference week for the past ten years. >> that's why i told victor espinoza the jockey who won that he's got to stop trading apple and just own apple. we came back and said i like alibaba. >> as he told chase. >> chase was about to -- jase

hudly, there we go. >> you were not physically on pharaoh. >> that's not him. that was a mock up. at that point he asked me what i thought about monster, i said once the coca-cola distribution system is solved they're going to take -- he was on a monster horse, i'll tell you that much. i think what can i say? the developers conference has not been a place to make money. it's been a place for the developers to make money and that's one of the whole marks of apple is this is the jobs they really create. and some of these people obviously, i tried to get with the burger king king too. there's a lot of jobs created. you know there's excitement. the watch needs more programs. especially because i-got to tell you, i don't know if you've seen the new fit bit. fit bit is coming around the home stretch making it -- making

people very excited. i think apple's got to go a little further and distinguish itself from fit bit. >> fit bit's ipo is coming up. >> i think it's going job u huge. >> some believe it will mark the end, not the beginning. >> really? >> because of that. >> i think fit bit has a lot more different features than people realize. i think there's room for more than fit bit. this is not like the triple crown where it's american pharoah and then another second five lengths behind. there's a lot of -- a lot on the line. a lot of younger people that i met this weekend who had never worn a watch. i always look at people's wrists now, apple watches. >> we know what moves the needle at apple. that's phones. big conference today for apple. the front page of the newspapers is all about the number two player in china. >> apple is an upgrade. whenever you hear apple it's

because people are upgrading. it's not a training wheel phone. it's a phone that people go to after they're ready to deal with the smart phone. those other phones sound like transition phones to me. i'm not that worried about it. >> what gives apple the transition above 130? >> it's trying to digest the move and i have to tell you that i think it's not going to be streaming music. it's going to just be a new it ration. apple pay has to start intriguing small business and stop thinking apple tv. it's not going to be that. i know people feel like the watch was a step back. i don't get that. i don't get why. i think it's an intriguing interesting device and i want to follow what health features are being added. i want more health features other than the heart rate. >> i think people believe over time it will become a more compelling piece of hardware.

>> i haven't worn mine in a couple of days. >> really? >> yeah. >> is that because you don't want to know the time? >> you said you'd get rid of that for me. >> there are people who agree with you and believe it will be health in particular that does move people toward more rapid adoption at some point. >> but not yet. >> particularly some of these epidemic diseases we don't think about like diabetes. get something that it makes it so the blue tooth can signal to your mom and dad that you're having an elevation. dex kom has a good one. i'm looking for health. i'm looking for some involving what fit bit does. it's all good for stocks. it's good for finance but i think there's a lot here. >> cook it all begins at 1:00 p.m. eastern. we'll have live coverage in san francisco. in the meantime in the final monthly sales number mcdonald's is down. that's above consensus.

u.s. comps down 2.2. enhanced competition. sales also slumped in asia pacific. europe was a bright spot. up 23. mcdonald's says beginning june 1st it is the best european comp since march of last year. >> he got this book the ceo because of the term in europe. some people who are fran chiechise's who know about it and others who are miserable. when you see anything that goes that is right. any region, you get a little stoked. no the 3% yielders the companies that were being used as bond equivalents, those are among the worst stocks out there. mcdonald's has held up. this is going to be a spur for mcdonald's to go higher i think. >> the u.s. comps the last four comps have gone minus 39, minus 2.2.

>> right direction. not getting any worse. >> and i think that this is look, i think it's about winning over the franchise ees. >> why do you buy the stock? you believe what if you buy the stock now? >> first, every one of these companies has moved. other than which i possibility lay but when you look at dennys or the move jack had. bjes bj bj's, the shack has done well and i think mcdonald has a good balance sheet. they haven't won the franchisers over yet. they're not feeling comfortable, but this is a company that if you say, listen we're turning it in england and urine,europe, i think people will feel more bullish. they're getting back to the notion that you don't need

restaurant confidential that you don't need a tuesday night show about us or a wednesday night show. there's a lot of these restaurant shows, you know you don't need some of the shows, the laundry guy, the three star michelin guy. i feel like mcdonald's has to return to its roots of nice hot burgers. >> and make things easier for the franchisers which brings the costs down and makes it better. >> you didn't get that? >> missed it entirely. >> did you think it was building on a fire stone name? >> i was trying to think of the guy that runs the french lawn ri laundry. >> we're horrible. that's horrible. we're going to get it on twitter for being fools. >> danny meyer. you don't have to be like danny

meyer. loaded hos paltarian. >> let's get to markets. interesting set of data coming out this week. retail sales on thursday is being called the number of the week. if we get that in the right direction, does it mean that friday was not an outlier? >> yes. i think auto was good last month and employment. we keep searching for what else was good. retail sales being good would be something that would make it so if we just had our trading partners do a little bit better i could make a case that the fed could eventually raise. i spent a lot of time on friday's show about if not now when kind of your analysis about the fed rate hike. i keep saying when they look at the world and say not yet, when lagarde says yes, i say yes. >> >> who died and made her queen? >> especially in your world. >> i think lagarde is pretty

good. she's kind of a smart person. >> no disputing that. >> you don't think it's a bit presump presump assumption to tell the fed. >> that's true. >> really it's just lagarde mirrors your own views so you're using her as a reason? >> she does. i like to think i match her view. i like to think there's synergy there. it's espinoza and american pharoah. >> got it. french laundry, thomas keller. thank you all. if we could ever get a reservation, we probably would have known that. >> he is doing a designing foam burger. did you know they had a mclobster at mcdonald's? apparently it's real. it has real lobber thester in it.

when subway takes the dye out of the food what does it look like? >> these are questions for the ages. >> i remember what the food looked like at the tail end of the donner party. nothing you want to eat. >> when we come back a management shakeup at a banking giant. we'll take one more look at the premarkets. we only have three weeks and change in q 2 and for the quarter to date the dow is up. much more when we return. when a rewards card is designed to sync with your life it gets talked about... ♪ ♪ ♪ so you can live the way you live, and enjoy all the rewards. chase sapphire preferred. so you can. verizon say neversettle. t-mobile agrees.

never settle for verizon's overpriced gimmicks. try the un-carrier risk-free for 14 days you'll love it, or we'll pay for you to go back.

an franchise see. fran cheese franchisee. we have a shakeup at the douch bank. the two kroco-ceos are stepping down. john cryan will take their place. john crane will fwk ceo. we will see another experiment in co-ceos not going well. >> it doesn't go well and i think that mr. jane may have underestimated the power of the u.s. government in terms of being able to derail the justice

department. derail a turn. the justice department took -- by the way, pepsico, they're ringing the bell here today. he was the man of the justice department that was really after a lot of the banks. i think mr. jane kind of felt that you go down to washington and plead your case, everything is fine, and the u.s. turned out to be a major distraction. i think that the u.s. in particular was gunning for a lot of these foreign banks. now, if you're merkel you're saying it's equal opportunity hater of all banks but i feel that -- i think he kind of believed in the system and the system really failed a lot of the banks. the system was about not loving the banks in the end. it was about hating it. >> it does bring up yet again this question about whether it's possible to manage a global bank. there had been some pressure in germany for some sort of a break up which may continue. our own banks have been performing fairly well in the

stack market due to higher rates, when would argue but i can't imagine that theme won't just go away. i mean managing these global banks is very difficult. it would seem to do so well and to sort of show it's worth keeping them together is going to be a key challenge, i think for many of the managers and the boards to argue with their shareholders. >> when you look at the banks that are being well jpmorgan is doing well. >> it is but it doesn't mean jpmorgan -- and they've rebutted this, but is there an argument to be made that it might create more value in some different pieces? >> perhaps. >> i think you could make a case for that. i know that's not what they want. i like the banks here because rates have been going higher and at a certain point when the fed starts raising, it'll be less of a spread. it's been a great place to be in the last -- it's has good as procter and gamble has been bad to look at the two sides of the

coin. >> the best performing sector last week twrrks worst, utilities. it's no contest. >> utilities doesn't matter. dominion had the greatest growth of any utility company, it doesn't matter. they can't distinguish themselves no matter what they do. >> sears posting a loss. sears also says it plans to raise $2.6 billion from the spinoff of stores into a reit. raymond james raises walmart and valuation. they have a new chairman over at walmart, but sears, the sears comps down 14.5. you take out lands end and dissupposedis dissuppose canada and that's what you get. >> the financial engineering continues. all of it designed to reassure those who are financing their suppliers and they seem to have

done a good job of that. the stock is up sharply and up this morning. >> the equity is 4 $.3 billion. it does kind of say there's some value. >> we did 12 consecutive quarters and 14 .5%. it's hard to put up numbers like that. down 14.5%. >> down $6 billion? >> this has been a better progression han mcdonald's but at the same time it's hideous. >> johnson at one point got down to 29. that was the benchmark of bad. >> i stand corrected. >> it's bad. >> people do ask where has all that business gone? it hasn't gone to macy's. >> home depot and lowes. they won't confirm one to one. they're excellent companies and all they do is say listen we're taking it from the people who

don't have good systems like mom and pops but sears has been a continuous source of traffic for those two companies. >> they've been able to raise a good deal of money. they have a good cushion at sears. but at some point, you have to reverse. >> i agree. and i think in the end money managers will go to sears. they tend to be the only people there at the time from the ones that i've been to. i go to sears. i bought a frill at seargrill at sears. i was the only guy. a bunch of guys trying to help me. a committee of people got together to help me. they'd do anything i want. that's what happens when you get attention. >> same price point, probably.

>> we'll get cramer's mad dash as we count down to the opening bell. we'll give you one more look at the premarket. more "squawk on the street" in just a moment. it's more than a network and the cloud. it's reliable uptime. and multi-layered security. it's how you stay connected to each other and to your customers. with centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services - all with dedicated responsive support. with centurylink as your trusted technology partner

you're free to focus on growing your business. centurylink. your link to what's next. ♪ ♪ time upon a once people approached problems the way same. always start at the starting. and questions the same asking. but that only resulted in improvements small. so we step a took back and problems turned these inside-up-down to approach them newly. and that's when we it saw. garbage can create energy. light can talk. countries can run on jet engine technology. when you look at problems in ways different you new solutions find. ♪ ♪

♪ >> time for a mad dash on a monday. let's start off, let's just -- if you had invested broadly speaking in the theme of cyber security and said i want exposure to this because i know this is only going to become a bigger problem, you'd be doing

pretty well. >> yes. and it's going to be pal toe alto. everyone is trying to get into this. fire eye teamed up with visa last week and they do prevention and also the forensics. who really hacked the federal government? we don't know. you bring in fire eye. palo alto is a soup to nuts. they believed in the system. key of the kingdom. >> it's what? >> there's a master key to every single cyber security wall that you have the inner wall and cyberark is the company you count on to be able to protect that. >> at what points do you say they're overextended and there is going to be more and more money going into this area as a result of the needed defenses but i can't argue to buy a stack that's up 320% this year.

>> they're expensive and they've become cult stocks and momentum stocks and the answer is if you ever got to a conclusion of the hacking or if you had someone else kind of come in and say we're going to con sal date these. it would cost a lot of money to do it. then you're over. but right now fire eye, david dewalt's company, the system really failed a lot of the banks. palo alto is about not loving the bavpgs. >> we forget that ibm, cisco, intel, they all also have this as an offering to their client base and it's a significant growth area for them but they don't get rewarded for them. >> chuck robins watch him. he is going to be offering the ultimate platform which says you got hacked? we know what happened. oh you want to find out who did it? we'll have the people.

cisco is offering this one-stop which is by the way, a defense against these white box companies that are just saying listen, you don't need the expensive hardware. cisco is becoming a consultant company. higher marge higher margins. >> pepsi's ceo is getting ready to bring the bell coming up. we'll be watching.

bring us your aching and sleep deprived. bring us those who want to feel well rested. aleve pm. the only one to combine a sleep aid... plus the 12 hour pain relieving strength of aleve. be a morning person again, with aleve pm. here at td ameritrade, they love innovating. and apparently, they also love stickers. what's up with these things, victor?

we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who reads all those? he does. for all the confidence you need. td ameritrade. you got this.

the street." there's indra nooyi from pepsico. celebrating 50 years. >> incredible for those. i don't know if you were born then. we used to wear pepsi buttons to school. they would give them to us in fifth grade. it was the rage at the time. kind of interesting. it turned out to be the beginning of a big run, and this company has got, there's a fabulous article in fortune this

week which talks about the transformation. it should be read by people if you're interested in the stock. >> i don't know if we have 50-year charts. i'm looking at a 25-year chart. it's outpacing the s&p. >> obviously this is snacks and drinks as opposed to coca-cola which is drinks. so this is always the question about the model. whether the model does better? i think the model works. >> you think this model works? >> i do very much think this model works. >> a lot of big brands. >> if vhave you had a dorito lately? >> they spent a lot of money and time on that to make you want that mouth feel. >> congratulations to them. i know there's a big event for them upstate. >> doing a lecture tonight with my friend but this is the hot invite of the summer. the pepsico invite?

>> really? >> yeah. well, the discovery party one again? >> i think. something is on. >> they're having an anniversary too. >> they are. >> there is the opening bell and a look at the s&p at the bottom of the screen. there's pepsico celebrating its 50th down here. the nasdaq the provider of workplace supplies the people a bunch of different names. airlines getting an interesting call. >> the numbers are still too high. this is the beginning of when people say i can't recommend the stocks. the numbers aren't coming down. they're not caring that the multiple is so low. if oil keeps going lower and we get a sense once again that there's not going to be a giant addition in capacity the group can bounce back but you need both to occur. >> ray jay takes american by the told. >> let's watch those.

those have been the achilles heal. they've been horrendous at the same time the banks have been good. the banks have not been able to rally a lot of other companies. the banks do well and it hasn't meant much. they have not had a tail. they're generals without portfolio. >> but you said you liked the fact that the financials are rallying and that is a good sign for the market. >> it is. they're so big in the s&p but someone's got to start following them and that is not -- technology has been weak. oil has been weak. consumer package goods has been weak. utilities, weak. drugs, some of them stronger if they have a got yield. biotech and banks have been the big winners. and biotech is continuing on approvals. i think people don't understand that the fda has been the friend of the drug companies. they have been fast tracking things. they don't get a lot of credit

the fda because they're not going to say they've done a great job. everybody is fearful but they have done a great job. i just said it. they've done a great job. >> one thing that has been active is merger and acquisitions. this morning not as much. we'll talk about monosan toe and san jen toe momentarily. i wanted to come back with the latest letter teva and mylan. the latest was whether teva was breaking laws by buying a steak in mylan. i encourage you if you're interested to read the latest letter but i would note the following. they say, of course we are not breaking any laws. we've conferred with the u.s. anti-trust authorities. we've been given to reason to believe we are violating any u.s. anti-trust laws. and then they say in the

meantime we note you've been saying you're a dutch company when you believe it helps you create unprecedented governance company, a uk company when it helps lower your company and a u.s. company when it prevents teva from buying mylan shares. the larger question is can they follow through and have a shot at acquiring mylan. many say it's going to take time they're not willing to wait. >> is there any sense the anger has died down? >> no. >> none. no. >> company's just swinging. >> these things just get nastier and nastier. now teva is coming back. >> can you put that in the context of other battles? >> i don't know there will ever be a letter that we saw from mr. cory the first time to teva. remember that letter? i don't know. that will will stand with

corporate letters. we've seen activist write poison things but from the chairman of a board? no expletives. >> still playing in a wit of a classy way. >> that will be the 52-week low. when we start seeing that. >> just write it. >> generally a good tell. you know what's moving? >> the humanas, and cardinal healths. >> cardinal health was up today. a lot of people told me there would be a tieup. >> i told you it was going to be a few weeks. i told you that last monday. >> i'm trying to stick to your schedule but i want to get to the hamptons before this deal happens like the bankers do. >> i said a few weeks. >> you still like anthem humana. >> many say anthem is the best acquire for humana if you're looking for synergies and cost

saves. >> are you looking at this as a charter time? >> i think there is an expectation that humana is going to be a part of any consolidation that takes place between the hmos. do you go from five to three or five to four. another key question is whether or not you will see, if you do see a humana deal whether it be a anthem or humana or cigna. do the other two, anthem or cigna get together in a sense so you want to present both deals to the fdc at the same time and have it as an either or nothing kind of a scenario? >> what a great -- what a great theory it is. you want to be able to pit them against each other as an employer to try to get the best rate. but so far the ftc, no one has said anything. >> we'll see. 5 to 4 should be doable. 5 to 3 not so much.

but it's possible to get in the same window. >> anything new in dish? >> not as of now. >> kind of just out there? >> yeah. >> i note you mentioned the tbs call. >> just on earnings alone. i think it is the hot one at verizon was really rolling over last week. there were a couple of upgrades of at&t and the stock didn't move. people are saying it's in being caught up with the movement. these are just bomb market equivalents failed right now. i think verizon might be a huge buy at 45 46. i they that's a foob yuls situation but not yet. >> summer earnings this week. lululemon tomorrow. restoration on thursday. >> restoration hardware they

said is going to be a bridge quarter. have your expectations lower. h and r block. they've been a consistent performer and you want to see them getting out of the bank business. they got a big buyback coming. i would regard that -- i'm a bull in that stock. vail, the guy, that's an interesting company because with travel and leisure. it's been hit because of the strong dollar. it'll be interesting to see what they say. that's a domestic -- you don't think foreigners come and go to the slopes. >> i took the kids there over the last winter. a lot of brazilians. >> they made it so they might not want to go. the dollar is just the super freakin' negative. >> super freakin' dollar. >> the president did not say anything. >> no. first they said he did and then they took it back. wasn't that interesting? >> yes. >> you know like what was the real story about what they said

the g7? >> by the way, obama speaks at 10:00 a.m. eastern and he'll take questions. we'll try to take that live. >> there's a picture of him on a bench with angela merkel. you think he's saying something to her there like come on, man. this dollar thing. get that euro moving. >> they think bigger than we do. >> i think they're probably talking american pharoah. how much did she have on frosty? maybe she frosted the place. you don't know. maybe she was a trifecta wager. >> did you win any money? >> yes. i had the exact on i -- >> congratulations. let it ride. >> i had that one. i had frosted in place. my wife was proud of me. she said look i had done a huge amount of handicap but in the end, american pharoah was

the best horse. they were not big payoffs but if you put some money down you got the nice payoff but getting out was the big payoff. >> dow is down 18. >> in a mixed open today, let's take a look at the major sector health care has been most of the year as the leader. weakness in energy. oil seems to be stuck in that $58 area. it hasn't moved for a couple of weeks and i think that's starting to weigh on things. financials fractionally positive. we had a mixed overseas market. europe is down modestly. the greece negotiations are dragging on but the big talk over the weekend was germany. the dax down 10%. i think the more interesting question is what this means for the u.s. there's a lot of different opinions about whether we would follow in that direction. so far that is not the case. strange session in chinaover

night. we had tech shocks down 7% and shanghai was up. it's somewhat not surprising to a lot of people because slen accident has doubled this month. the nasdaq of china. now, i mention this because we're going to get a big ruling tomorrow morning from msci the big indexer. they're going to announce whether or not they're going to include mainland china in their indexes. the world is ruled by indexers. everybody buys a lot of oversea stocks by indexes and that could change the say investing is done in china. i'm expecting a gradualist approach. i want to talk about big data analystics. that's week i moderated a conference on this. jpmorgan out with a survey

showing how big big data is for companies. they concluded that data would jump 42% this year that data big corporations are using will jump 42%. that's astonishing. that's 10 0% increase in two years and the reason is because the explosion in mobile devices and cloud applications. here's the most interesting sentence in the report. more data will be produced in the next two years than has been produced from the dawn of civilization through today. this is something we used at the singularity university last week. it's an indication of how important big data has become. nobody can understand the big data anymore. they talked about the managers the corporations were using. number one was tablo. they went public two years ago. now it's $115.

that's a 300% rally in three years. here's the problem with the way the companies are valued right now. this company is only going to earn $0.40 this year. do the math here. 116 divided by 240. in 2016 they're only going to make $0.60. now you're dealing with a p/e ration of 180. my point of this microsoft and s&p were mentioned. all of these big data anl ittics companies have a lot of money around them but the valuations are at obscene levels and that's the major problem going forward for most of these companies. right now the dow down 15 points. >> we spoke earlier about the nasty letters going back and forth between teva and mylan. not the case between sin jen a

and monosan toe. . monosan toe changed the nature of its offer to try to offer some assurances on the anti-trust front. monsanto on june 6th saying we'll give you a $2 billion reverse breakup fee. quickly syngenta responds and says we're not interested. we think this fails to meet the test we would want to sit down and meet a deal. they say they received a second letter from monsanto that stated the same thing but added the break fee. the second letter they say represents the same inadequate price and regulatory undertakings to close, same regular story risks and same

issues associated with dual head quarter moves. they reiterate their rejection of that. at this point, yeah now we have the letter up there. we've already read through it. i'll read you a little bit more in a minute. from monsanto ease point of view they need to take this to the shareholders to syngenta and make their case. hoping to pressure them to the board. they haven't raised it. they only added the $2 billion reverse feel. it represents about 16 times ebita. it's not a company that's growing. the multiples are 16 times last year and about 15.8 times last year and 16.3 times this year going through all the letters here. it gives you a sense as to the

lack of growth at syngenta. would there be an inversion but there's signs of that. change a name and board members from syngenta on the combined board given 30% ownership by board members. it's an enormous deal but it's not happening right now. we seem to be at a stand bill. syngenta says we have concerns. they say that there is precedent for deals being blocked not just because of anti-trust in the traditional sense but because they say of horizontal divestitures there are notable examples that have been blocked due to concerns and other nonhorizontal issues.

the board has concern that a combination may be viewed as such. for the june 6th letter monsanto said there's little precedent and they see no precedent. right now they're getting the heisman. very much focussed on anti-trust concerns. >> the seat business has gotten more few players. it used to be pioneer and they all used to go at it. in the meantime the farmers aren't doing that well. it's an interesting time to take advantage of lower prices. if i was a farmer i'd fight this. >> the journal had spoken to a few farmers and very different views. there's a belief that efficiencies might result in lower prices. >> monsanto is too powerful, some people feel. if you're dupont you think you're powerful. and dupont stock has been acting

terribly. >> the same with car gill over the years. >> yes, they did. i think it's worth watching but i think sometimes i wish the authorities would come out and say, you know what? you guys ought to think about this before you do it. that would bring clarity. it rarely happens. >> usually they wait until you present the transaction. >> dow is at a two-month low. >> good morning. as mentioned, oil is a little bit stuck here. we're looking at prices at 58.67 right now. down about $0.45. a tight tradeing range. one of the catalysts that was driving prices last week was the action in products specifically gasoline. we saw a little bit of a boost into the weekend and that actually turned crude positive on friday. today the products lower selling in crude pressure as well. what's interesting about the products is we usually peak out

july 4th. but i'm getting word that traders are thinking we're going to peak out a little bit sooner than that. aaa saying the average price for regular, $0.90 below where it was a year ago. >> thank you very much jackie. president obama set to address the g7. also ahead quincy jones who's won 27 grammys. we're going to get his take on streaming and what's at steakake for the music industry. we'll be back in just a moment. there's nothing more romantic than a spontaneous moment. so why pause to take a pill? and why stop what you're doing to find a bathroom?

with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to cialis.com

♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. it's part adrenaline and part adventure. it's part geek and part chic.

it's part relaxation and part exhilaration. it's part sports car and part suv. and the best part? the 2015 gla. it's 100% mercedes-benz. jack maw is coming to america. the alibaba founder is set to visit the u.s. this week. he's scheduled to arrive in new york today and then off to chicago on wednesday where he will hold a town meeting with the city's mayor.

showing a little bit of signs of life in terms of stock price. >> it's been doing pretty well. speaking of signs. we talked about avail, and i thought the number on the surface looked good. the conference call not good. i'm concerned about visits. maw can afford to visit but this strong dollar shows up in a lot of different places in a negative way. really important. >> speaking of strong dollar and multinationals. dow is now negative for the year. a two-month low and if we're down this week it's the first four-week decline since october. hasn't been down for a while. >> doing a lot of work on june. it seems like one of the bottom lines in june is they want to go way in europe. they can't get things done. they can't. i think that's not unusual. it's going to happen. >> we'll get top trading with jim in just a moment.

time for cramer and top trading. >> last week that was a quarter reported. people initially sold it back. this is the brains behind go pro.

this remind me of arm holdings when they took people by surprised. what dazzled people is drones. people are underestimating them. they kept trying to steer people toward drones. people kept coming back to try to figure out their go pro models. i think drones are gigantic in commercial. there's a way to monitor a pipeline with a drone or have weather with the drone, military with the drone. ambarella is a drone play and is it expensive? completely. as people recognize it's not just a one trick pony for go pro. the intellect wall. -- >> mad tonight? >> zoe ease kitchen.

people don't understand how exciting that is. marc casper. people like this. this company is way undervalued. i cannot wait until tonight. wow, and once again, congratulations to the gang at american pharoah. what a horse. >> the president at the g7 when we come back. at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step.

being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. it's more than the cloud. it's security - and flexibility. it's where great ideas and vital data are stored. with centurylink you get advanced technology solutions

from a trusted it partner. including cloud and hosting services - all backed by an industry leading broadband network and people committed to helping you grow your business. you get a company that's more than just the sum of it's parts. centurylink. your link to what's next. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

welcome back to "squawk on the street." we're at post nine of the new york stock exchange. this is a live shot in germany where the g7 summit is winding down. president obama is set to give a news conference and is expected to take questions. we will bring it to you live when it begins. as we wait for the president to begin speaking let's bring in our chief washington correspondent. what's on the agenda? what's been headlines regarding things like climate change but obviously there's a lot more. >> the main thing they wanted to accomplish in summit, and it's been referred to in the last few minutes, is to try to maintain european solidarity behind the

sanctions against russia over their violation of the territory yal enteg tri of the ukraine. what they said was what they want to have -- have agreed to sustain the sanctions. russia has been trying to flake off individual countries and try to make the sanctions crumble. they say they want to sustain the sanctions until russia adheres and implements to the agreement which was the diplomatic resolution we thought, at least, a few months ago where russia was going to back off the conflict and that really hasn't happened. the materials support they've been giving to the insurgents in ukraine has continued and the united states is trying to keep that solidarity. there were also elements in the communique about joint action on climate change and counterterrorism and supporting the iraqi government in its

attempt to fight isil. the iraqi prime minister made an appearance in the outreach session. all -- and in reaching a financial agreement with greece. >> the reported remarks that america had a strong dollar problem move the green back earlier today. we know that for generations talking about the dollar has been the preserve of the treasury secretary and they've always said we believe in the strong dollar because it's a reserve. i wonder what the impact is on the market. if the president indicates, if he indicates that he'd like the dollar to be weaker. >> i see very little chance the president is going to say these things even though many people know a weaker dollar would help u.s. exports, but i think the

standard mantra is going to prevail for the treasury secretary. i wouldn't expect the president to go in a different direction. >> all right. we'll keep our eye on that. a lot of photos going around the internet with the president hanging out with merkel. >> sound of music style. >> it sound wrong when you say that. let's get a check on the markets. looking at declines. small losses for the major ind deez but the dow is hovering. it's down about 37 points after last week's strong jobs report and all of the buzz around a potential interest rate increase. joining us this monday morning is john lee, founder and head of research. we know you're bullish. let's start somewhere else. why are you telling investors to buy shares of ford? >> we highlighted on friday how great being contrarian has been over the past 25 years.

it's the win ratio and best performing strategy. ford is an example of a contrarian stock. i think investors don't realize how structurally changed the auto industry is. when you look at ford we think auto zar could hit an all time high. it's the lack of spending and it ties into your investment spending cycle which benefits companies like ford. >> and it fits into your view of the world which is a stronger u.s. consumer than we're seeing in the economic data? >> that's right. i think we've seen a dormt consumer. a consumer with much better visibility but cautious to sfend spend. i think it's bullish. it means as soon as we get a plethora of better visibility i think consumers will be spending and corporates will spend and it will give us a second wind. >> when you say a ton of fire

power, back that up. relative to what i guess is the question. >> we can measure it so many ways. we can look at household ek witty. net worth is highest all time. look at the number of mortgages in america. it's dropped from 57 million in '06. the debt ratio the lowest in six years. never been this low. i think the consumer is basically a slingshot ready to start borrowing. >> unless you believe the world has changed. and if you -- and that there's no long term effect from going through the financial crisis or that the incomes of many people in their country have huge variability which may prevent them from spending because they're nervous, and with health care insurance rising again, hugely potentially for many next year. >> that's a good point. what we have to remember is the consumer ultimately tracks the change in their population and then you have to build the infrastructure behind it.

in the last seven years, the u.s. population is 20 million larger. we've spent almost nothing on infrastructure on a net base over the last seven years. we have to catch up. that's 20 cities of 1 million people each. there's short tanls developing. >> we've seen a bit of a rout in the bond markets and crazy swings starting in europe and trickling into u.s. pressure ritreasuries. does that concern you? >> it can be. if bonds are selling off because there's runaway inflation or a loss of faith in owning credit that's scary. if they're selling off because we have relation coming sort of like the early 90s, that's extremely bullish for stocks. how are you going to benefit from stablzed inflation in you want to own equities. >>. >> but these are not normal moves. >> yes. the biggest risk is if you have

a dislocation of bonds and some financial institution gets into big trouble. >> on the subject of this investment spending cycle, which is your main thesis why the market will go well. why did the job report on friday, where did that take you in that? it reinforces how you feel? >> absolutely. i think proof of an investment cycle underway is steady job creation. every time you build a house, you create three full time job. if it goes to 1.5 million. that's going to create 600,000 jobs. and if it goes to 2 million that means we'll create jobs. it should be playing through jobs and if there's more jobs there's more income. >> how much pressure is there on -- actually, before i finish that question, the president is at the g7 about to take the mike.

>> let me begin by once again thanking chancellor merkel and the people of germany for their extraordinary hospitality here at the summit. my stay here has been extraordinary. i wish i could stay longer, and one of the pleasures of being president is scouting out places that you want to come back to. where you don't have to spend all your time in a conference room. the setting is breathtaking. our german friends have been absolutely wonderful, and the success of this summit is a tribute to their outstanding work. the g7 represents some of the largest economies in the world, but in our g7 partners, the united states also embraces some of our strongest allies and close e friends in the world. even as we took to promote the growth that creates jobs and opportunity, we're also here to stand up for the fundamental principles that we share as

democracies were freedom, for peace, for the right of nations and peoples to decide their own destiny. for universal human rights and the dignity of every human being. and i'm pleased that here we showed that on the most pressing global challenges, america and our allies stand united. we agree the best way to sustain the global economic recovery is by focusing on jobs and growth. that's what i'm focussed on in the united states. on friday we learned that our economy created another $280,000 jobs in may, the strongest month of the year so far, and more than 3 million through jobs over the past year. nearly the fastest pace in over a decade. we've now seen five straight years of private sector job growth, 12.6 million new jobs created, the longest streak on record. unemployment rate is in its

lowest level in seven years, wages continue to rise and since i took office the united states has cut our deficit by two-thirds so in the global economy, america is a major source of strength. at the same time we recognize that the global economy while growing is still not performing at its full potential and we agreed on a number necessary steps. here in europe we support efforts that enables greece to return to growth within a strong j stable and growing euro zone. i updated my partners so we can move ahead with the tpp in the asian pacific region. agreements with high standards to protect workers, public safety and the environment. we continue to make progress toward a strong global climate agreement with year in paris. all the g7 countries have now put forward our post 2020

targets for reducing carbon emissions and will continue to encourage others to do so as well and we'll continue to meet our finance commitments to help developing countries transition to low carbon growth. as we've done in the u.s. the g7 agreed on the need to integrate climate risks in the development assistance and investment programs across the board and to help developing countries respond to and recover from climate-related disasters. and building on the power africa initiative, the g7 will work to mobilize to help with more initiatives in africa. the g7 remains strongly united in support for ukraine. we'll continue to provide economic support and technical assistance that ukraine needs as it moves ahead on critical reforms to transform it's economy and strengthen its democracy.

as we've seen in recent days they are violating ukraine's sovereignty and territory yal integrity. this is the second year in a row that the g7 has met out russia. another example of russia's isolation and every member of the g7 continues to maintain sanctions on russia for its aggression against ukraine. now, it's important to recognize the russian economy has been seriously weakened. the ruble and foreign investment are down. inflation is up. the russian central bank has lost more than $150 billion in reserves. russian banks and firms are virtually locked out of the international markets. russian energy companies are struggling to import the services and technologies they need. russian defense firms have been cut off from key technologies. russia is in deep recession. they are hurting the russian

people. here at the g7 w, we agreed sanctions against russia will remain in place so long as they continue to violate itself agreements. our european partners agreed they would maintain. they will extend the sanctions beyond july. and if necessary, we stand ready to impose additional significant sanctions against russia. beyond europe we discussed the negotiations over iran's nuclear program and we remain united heading into the final stages of the talks. iran has a historic opportunity to resolve the concerns about its nuclear program and we agreed that iran needs to seize that opportunity. our discussions with the prime minister of iraq the president of tunisia and the president of

nigeria were a chance to address the threats of isil and boko haram. the countries agreed to work together and with our partners to further coordinate our counterterrorism partners. joined by leaders of ethiopia and the african union, we discussed how to maximize the impact of our development partnerships and agreed to continue our land marc initiative to provide nutrition. part of our effort to lift 500 million people out of malnutrition by 2030. we'll continue to work with our partners to get ebola down to syria. zero. i'm pleased we immediate agreements to to try to respond

to future outbreaks before they become epidemics. and finally, i want to commend chancellor merkel for making sure this summit includeing opportunities for women. increasing technical and vocational training in countries. i want to think angela and the people of germany for their hospitality. when it comes to the key challenges of our time, america and our closest allies stand shoulder to shoulder. with that i'll take questions an i'll short with jeff mason. >> thank you, mr. president. after your meetings here you mentioned greece in your opening statement. do you believe that the europeans are being too tough on greece in these talks and what else needs to be done on both needs to ensure there's a deal and to ensure there isn't undue

harm in the financial markets and on a separate and somewhat related topic, the french told reporters today that you said at the -- to g7 leaders that you're concerned that the dollar is too strong. what did you say exactly, and are you concerned that the dollar is too strong? >> first of all, don't believe unnamed quotes. i did not say that. and i make a practice of not commenting on the daily fluctuations of the dollar or any other currency. with respect to greece i think that not only are g7 partners but the imf and other institutions represented here feel a sense of urgency in finding a path to resolve the situation there. and what it's going to require is greece being serious about

making some important reforms, not only to satisfy creditors but more importantly to create a platform whereby the greek economy with k grow and prosper. the greeks are going to have to follow through and make good political choices that will be good for the long term. i also think it's going to be important for the international community and the international financial agencies to recognize the extraordinary challenges that greece faced, and if both sides are showing sufficient flexibility, then i think we can get this problem resolved but it will require some tough decisions for all involved and we will continue to consult with all the parties involved to try to encourage that kind of outkom.

>> are you hopeful it will happen before the deadline? >> i think that everybody wants to make it happen and they're working hard to get it done. nedra. >> thank you, mr. president. how frustrate rdd are you that after you personally raised your concern on cyber security that something things to have originated from china. was the chinese government involved and separately can you give us your thaukt thoughts on the fifa scandal? >> i cannot comment on a pending case by our attorney general. i will say that in conversations i've had here in europe people think it is very important for fifa to be able to operate with integrity and transparency and accountability.

and so as the investigation and charges proceed, i think we have to keep in mind that although you know football soccer depending on which side of the atlantic you live on is a game it's also a massive business. it is a source of incredible national pride, and people want to make sure that it operates with integrity. the united states, by the way, since we keep on getting better and better at each world cup, we want to make sure that a sport that's gaining popularity is conducted in a upright manner. i don't want to discuss, because we haven't publicly unveiled who we think may have engaged in

these cyber attacks. but i can tell you that we have known for a long time that there are significant vulnerabilities and that these vulnerabilities are going to accelerate as time goes by both in systems within government and within the private sector. this is why it's so important that congress moves forward on passing cyber legislation, cyber security legislation that we've been pushing for. why, you know over the last several years i've been standing up new mechanisms inside of government for us to investigate what happens and to start finding more effective solutions. part of the problem is that we've got very old systems, and we discovered this new breach in opm precisely because we've initiated this process of inventorying and upgrading these

old systems to address existing as a rule flervulnerabilityies and what we are doing is going agency by agency and figuring out what we can fix and better computer hygiene by personnel and where do we need new systems and infrastructure in order to protect information not just of government employees and activities but also, most importantly, where there's an interface between government and the american people. and this is going to be a big project and we're going to have to keep on doing it because both state and nonstate actors are sending every they've got at trying to breach these systems. in some cases, it's nonstate actors who are engaging in criminal activity and potential theft. in the case of state actors they're probing for intelligence

or in some cases, trying to bring down systems in pursuit of their various foreign policy objectives. in either case we're going to have to be much more aggressive and attentive. this problem is not going to go away. it's going to accelerate. that means we have to be as nimble, as aggressive and as well-resourced as those who are trying to break into these systems. justin sink. >> thanks mr. president. i wanted to ask about two things on the agenda at the g7 this weekend. the first was the islamic state. you said yesterday you had your meeting with the prime minister that you would assess what was working and what wasn't. i'm wondering what is not working in the fight against the islamic and today with the bilateral prime minister who --

on trade ang layela merkel said she was pleased. if it doesn't go through the house, what does it say about your ability to achieve meaningful agreements with congress. >> i'm not going to high to the size about not getting it done. i intend to get it done and hopefully we'll get it done because i think it's the right thing to do. with respect to isil we have made significant process in pushing back isil from areas in which they had occupied or disrupted, local populations, but we've also seen in places like ramadi where they're placed in one place and they come back in another. they're nimble and aggressive and opportunistic.

so one of the areas where we're going to have to improve is the speed at which we're training iraqi forces. where we've trained iraqi forces directly and equipped them and we have a train and assist posture, they operate effectively. where we haven't been morale look of equipment, et cetera may undermine the effectiveness of iraqi security forces. we want to get more iraqi security forces trained, well equipped and focussed. and the president wants the same thing. we're reviewing a range of plans for how we might do that specially, essentially accelerating the number of forces and have a focus strategy and good leadership and when a finalized plan is presented to me by the pentagon, then i will share it with the american people. we don't yet have a complete

strategy because it requires commitments on the part of the iraqis as well about how recruitment takes place and how that training takes place. the details of that are not yet worked out. >> is it fair to say that additional u.s. military personnel are part of what's under consideration? >> i think what is fair to say is that all the countries in the international coalition are prepared to do more to train iraqi security forces if they feel like that additional work has been taken advantage of and one of the things that we're still seeing is in iraq places where we've got more training capacity than we have recruits so part of my discussion with the prime minister was how do we make sure that we get more

recruits in. a big part of the answer there is our outreach to sunni tribes. we've seen sunni tribes who are not only willing and prepared to fight isil, but have been successful as rebuffing isil but it has not been happening as fast as it needs to, and so one of the efforts that i'm hoping to see out of the prime minister and the iraqi legislature when they're in session is to move forward on a national guard law that would help to devolve some of the security efforts in places like an bar. and to get people involved more rapidly. this is part of what helped defeat aqi during the iraq war in 2006. without that kind of local

portion, even if you have a short term success, it's hard to hold those areas. the other area where we've got to make a lot more progress is on stemming the flow of foreign fighters. you'll recall that i hosted a u.n. general security council meeting specifically on this issue. we've made some progress but not enough. we are still seeing thousands of foreign fighters flowing into first syria and then oftentimes ultimately into iraq and not all of that is preventable but a lot of it is preventable if we've got better cooperation, better coordination, better intelligence. if we are monitoring what's happening at the turkish syria boarder more effectively. this is an area where we've been

seeking deeper cooperation with turkish authorities who recognize it's a problem, but haven't fully ramped up the capacity they need. and this is something they think we've got to spend a lot of time on. if we can cut off some of the foreign fighter flow then we're able to isolate and wear out isil forces that are already there because we're taking a lot of them off the battle field but if they're being replenished, then it doesn't solve the problem over the long term. the final point i that emphasized to the prime minister is the political agenda of inclusion remains as important as the military fight that's out there. if sunnis kurds, and shia all feel as if their concerns are being addressed and that operating within a legitimate

political structure can meet their need for security prosperity, then we're going to have a much easier time. the good news is the prooimsz isime minister is committed to that principle but he's inheriting a legacy of a lot of mistrust in iraq. he's having to take a lot of political risk sometimes the efforts to undermine efforts and so we've got to continue to monitor that and support those who are on the right sides of the issue there. colleen nelson. >> thank you, mr. president, you mentioned the u.s. and the allies have met a consensus against russia. is there a consensus on which the next steps should be if russia continues to violate the agreement and also can you deter russian agregs depression in other parts without a true

presence and separately i wanted to ask you about the court battle in about immigration. do you think there's anything you could have done to benefit people in limbo, and how do you view the possibility of your term ending without reaching your goals on immigration? >> on ukraine and russia and minsk, there is strong consensus that we need to keep pushing russia to abide by the terms of the agreement. we need to continue to support an encourage ukraine to meet its obligations under the agreement, that until that's completed, sanctions remain in place. there was discussion about additional steps that we might need to take if russia working

through separatists doubled down on aggression inside of ukraine. those discussions are taking place at a technical level, not yet at a political level because i think the first goal here is going into a european council meeting that's coming up is just rolling over the existing sanctions. but i think in a technical level, we want to be prepared. our hope is that we don't have to take additional steps, because the agreement is met. and i want to give enormous gret to chancellor merkel along with president raul who have shown extraordinary patience in trying to get that done.

ultimate ultimately this is going to be an issue for mr. putin. he's got to take a decision does he continue to reck his country's economy and continue russia's isolation in pursuit of a wrong headed desire to recreate the glories of the soviet empire or does he recognize that russia's greatness does not depend on violating the territory yal integrity and southernvereignty of other countries. the cost the russian people are bearing is severe. that's being felt. it may not always be understood why they're suffering, because of state media inside of russia and propaganda coming out of

state media in russia and to russian speakers but the truth of the matter is that the russian people would greatly benefit and ironically one of the rationales that mr. putin provided for him going into ukraine is to protect russian speakers there. they are bearing the brunt of the fighting. their economy has collapsed, many of them are displaced, their homes may been destroyed. they're suffering and the best way for them to stop suffering is if the minsk agreement is fully implemented. with respect to immigration, obviously i'm frustrated by a district court ruling that now is winning its way through the

appeals process. we are being as adwreszggressive as we can legally to first and foremost appeal that ruling and then to implement these elements of immigration, executive actions that were not challenged in court. but, obviously, the centerpiece, one of the key provisions for me was being able to get folks who are undocumented to go through a background check, criminal background check, pay back taxes, and then have a legal status. and that requires an entire administrative anpparatus and us getting them to apply and come clean. i made a decision which i think is the right one that we should not accept applications until the legal status of this is clarified. i am convinced this is well

within my legal authority, the department of homeland security's legal authority. if you look at the precedent and you look at the traditional discretion that the executive branch possesses when it comes to applying immigration laws i am convinced that what we're doing is lawful and our lawyers are convinced that what we're doing is lawful but the united states is a government of laws and separations of power, and when a -- even if it's an individual district court judge who's making this determination, we've got to go through the process to challenge it. and until we get clarity there, i don't want to bring people in have them apply, and jump through a lot of hoops only to have it deferred and delayed further. of course there's one really great way to solve this problem, and that would be congress going

ahead and acting which would get rid of the need for executive actions. the majority of the american people, i think still want to see that happen. i suspect it will be a major topic of the next presidential campaign and so we will continue to push as hard as we can on all fronts to fix a broken immigration system administratively. we'll be prepared if and when we get the kind of ruling that i think we should have gotten in the first place about our authorities to go ahead and implement, but ultimately, this is never fully replaced the need for congress to act, and my hope is that after a number of other issues that we're working on currently get cleared, that some

quiet conversations start back up again, particularly in the republican party, about the short-sighted approach they're taking when it comes to immigration. okay christy parsen. >> thank you, mr. president. more than 6 million americans may soon lose health insurance into the supreme court backs the latest challenge to the affordable care act. a growing number of states is looking for assistance as they face the prospect of losing insurance markets. yet, your administration has given very little to no guidance on how states can prepare. what can you tell state leaders and advocates to worry that half the country may be thrown into chaos. >> what i can tell state leaders is that under well-established precedent

precedent, there is no reason why the existing exchanges should be overturned through a court case. it has been well documented those who pass this legislation never intended for folks who were going through the federal exchange not to have their citizens get subsidies. that's not just the opinion of me. that's not just the opinion of democrats. that's the opinion of the republicans who worked on the legislation, the record makes it clear. and under well-established statutory interpretation approaches that have been repeatedly employed not just by liberal democratic judges but by conservative judges like some on

the current spring court, you interpret a statute based on what the intent meaning, and the overall structure of the statute provides for. and so this should be an easy case. frankly, it probably shouldn't have even been taken up and since we're going to get a ruling pretty quick, i think it's important for us to go ahead and assume that the supreme court is going to do what most legal scholars who looked at this would expect them to do. but, look i've said before and i will repeat again. if, in fact you have a contorted reading of the statute that says federal-run exchanges don't provide subsidies for

folks who are participating in those exchanges, then that throws off how that exchange operates. it means that millions of people who are obtaining insurance currently with subsidies suddenly aren't getting the subsidies. many of them can't afford it. they pull out, and the assumptions that the insurance companies made when they priced their insurance, suddenly gets thrown out the window. it would be disruptive not just by the way for folks in the exchanges but for those insurance markets in those states generally. it's a bad idea. it's not something that should be done based on a twisted interpretation of four words in as we were reminded repeatedly, a couple thousand page piece of legislation. what's more the thing's

working. part of what's bizarre about this whole thing is we haven't had a lot of conversation about the horrors of obama care because none of them have come to pass yet 16 million people have gotten health insurance. and an overwhelming majority of them are happy with it. the only affect it's had on people who had health insurance is they now have an assurance that they will get it if they have a preexisting conditions. the costs have come in substantially lower than even our estimates about how much it would cost. health care inflation overall has continued to be at some of the lowest levels in 50 years. none of the predictions about how this couldn't work have come to pass. and, so i'm -- a., i'm

optimistic that the supreme court will play it straight when it comes to the interpretation and b. i should mention that if it didn't congress could fix this whole thing with a one sentence provision. but i'm not going to go into a long speculation anticipating disaster. >> but you're a plan ahead kind of guy. why not have a plan b.? >> well you know why? i want to just make sure that everybody understands that you have a model that -- where all the pieces connect, and -- there are a whole bunch of scenarios, not just with relation to health care but all kinds of stuff that

i do where if somebody does something that doesn't make any sense, then it's hard to fix. and this would be hard to fix. fortunately, there's no reason to have to do it. it doesn't need fixing. all right? thank you very much. thank you to the people of germany and baa varyvari ai. you were wonderful hosts. >> wide ranging series of questions. the headlines for our purposes probably that the global economy is not performing at its full potential and he did not say anything about the dollar being too strong before he moved onto other topics, arguing we do not have, in his words, a complete strategy. john has been watching this. your thoughts? >> we talked before the news conference about weather the president would repeat what he was purported to have said about

the strength of the dollar. he said i didn't say it. he didn't elaborate what he thinks about it. he said i don't comment on day today fluctuations. he skirted around the fifa indictment saying that's an ongoing case involving his attorney general. he declined to finger china for the cyber hack of 4 million federal workers and he ended with a long explanation of why he thinks the supreme court should not strike down the subsidies on federal exchanges under obama care and he wasn't going to engage in a bunch of hypotheticals about what will happen if they do. that decision is expected some time in the next several weeks before the supreme court leaves for the year. >> john, going into this g7 i guess the u.s. president was looking for support on the strategy when it comes to russia and the expiring sanctions.

did he get that? is this a success? >> he seems to have gotten the support he wanted. he said all the g7 members agreed to sustain sanctions beyond july when they're scheduled to expire until russia fulfills the terms of the agreement to deescalate the situation and end the aggression. he said there were technical discussions not at a political level but a technical level of what sort of response might be in order if russia instead tries to escalate the situation in ukraine. it was a reasonably successful discussion. the president observed this is the second straight g7 that has excluded russia since the incursion of the craneukraine. >> thank you very much for rounding up the headlines from the president's press

conference. the president was asked about cyber security and what has been called the worst u.s. government breach. revelations last week of the cyber security hack that involved as many as 4 million current and federal employees. president obama didn't really answer the question from a reporter this afternoon about assigning blame on anyone but the chairman of the committee on homeland security dropped by the new york stock exchange this morning and he said all signs point to chie in. i asked him why. >> i think the techniques to steal big data theft but also targeting political appointees and 4 million employees. not for credit card theft purposes but to gather intelligence on individuals. this is classic espionage to compromise people and potentially recruit spies within the federal government. i see this as a very serious

breach in u.s. history, and it's something we need to take seriously. >> wehe wouldn't comment on retaliation but said it will be important. one of the big threats that the congressman is worried about in terms of what's going on here is the nation's financial system. something he talked about on the floor of the new york stock exchange. >> the financial sector is under attack by nation states every day, particularly iran in response to the sanctions. iran hits our financial marks in financial sector every day not to steal, not for espionage purposes but to bring things down. i think that's the attack i'm most concerned about. >> the attack he's most concerned about, an iranian attack on the financial system. that was a republican from texas talking about some of the problems that have only gotten worse. something that the president

himself said this morning, they're not going away. >> the vulnerabilities would accelerate over time. that's what surprised me about what he said. the vulnerabilities would accelerate, not the volume but the pressure points. >> and obviously the president is using that to help pass his bills that he's presented on cyber security in january, also the republican house felt they have also passed cyber security bills that can't make it through the senate. we'll see this coming through as the number of hacks increase. >> looking at fire eye today, above 51 almost 52. you have to go back almost a year. >> every time there's hacks in the headlines, they benefit. >> as a story in usa today reminds us it's been a loser week for apple. joining us is an analyst at rbc capital markets. >> good morning. >> every wwdc has a certain

character. how would you describe this one, at least what your expectations are for it? >> well you know starting in there was a lot of expectation the apple watch and streaming tv service would get part of this. that's in the back burner right now. you're taking over the biggest at list people had and focusing on the second third, and fourth catalyst. >> is it more about music? developing tools for the watch? what should we watch for? >> i would say three things are key. the music is very important. the launch the beats music premium servicing model, streaming model, if you may, the second is updating the ios, making mops better. the third thing that's important is launching the apple watch so they can get access to the sensors and hopefully come up with better apps to help with deployments.

those are three big things to be watching for today. >> music streams is obviously the big one for most people. $10 i think is the price tag attached. what about this speculation that now apple may change the terms of the take that it takes for app makers or indeed for example, newspapers, that it will no longer it be the 30/70 split? is that an admission it's more important to cell iphones around the world than actually compensate these guys or receive compensation from them? >> if you look at the dynamic and lower the take from andpple makes and vems an entire ecosystem to sell the hardware in which they make a lot of money. they can change the switch and make the ios more sticky, make it more easy to come and buy more hardware. apple will be willing to take a lower cut, i think, as long as they can get more users in. >> a report out this morning

they're working to dramatically upgrade their cloud infrastructure as they lawn music trying to rely less on some web service companies. i just wonder -- i mean, they could spend a the lot of money if they put their mind to it. what would that mean? >> i read the article you're talking about. if you broaden that out, it could make them a lot more enterprise friendly over time right, to the extent you can have better wi-fi encryption better i cloud syncing. this could be more about making it a much more enterprise friendly product over time. >> would you expect the shares to trade broebelow trend, i guess, given the reaction of the prior wdcs? >> tough to make that call right now. we were hoping out of the equation but if you look it at the next three, six, nine months a lot of upside on the story.

>> amit thanks for your guidance. a busy afternoon and morning out there. talk inging about the wwdc and tim cook and the whole show begins at 1:00 p.m. eastern time. up next on the program american pharoah riding into history with the first triple crown win in more than three decades. cnbc has had exclusive access to the american pharoah team since before the kentucky derby. we'll take you inside that incredible journey after this break. leave early go roam sleep in sleep out star gaze dream big wander more care less beat sunrise chase sunset do it all. on us. get your first month's payment plus five years wear and tear coverage. make the most of summer... with volvo. ♪ ♪ ♪

at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step.

as retailers he like toys 'r' us and f.a.o. schwarz vacate for cheaper alternatives, one real estate mogul is making a big bet on vertical retail space. the future home of hudson yards on manhattan's west side in a hard hat. good morning courtney. >> reporter: that's right. good morning to you, sarah. just mind me is where over a million square feet of retail and restaurant space covering seven stories will be. it's all part of the 28-acre hudson yards project, the largest ever private real estate development in the country. earlier this morning i sat down with the developer behind it all in an exclusive interview and

asked him if new york city really needs another big shopping area. >> we're not going to directly compete and take the place of this incredible experience on fifth avenue and mad iison. that has its place in new york which is almost unchallenged. the velocity sales, the interest level that comes from people around the world coming to new york to go to these fifth avenue and madison flag ships is not challengeable but it doesn't have to be. this is an enormous market manhattan, and the west side is a submarket that literally becomes the fifth largest destination shopping market in america. >> neiman marcus takes its fist residency in manhattan here. as retailers vacate flagships in new york city because of soaring rents and the shift to more online spending i asked if hudson yards will be a sustainable location for retailers going forward. >> we really believe there's between 24 million and 30 million people coming through one million square feet seven

levels of retailing. we believe our retail average over $2,000 a square foot in sales and we're doing close to that at time warner center. so that translates back into incredible productivity and the rent structures that we're offering people are a fraction of the rents that are being sustained on fifth avenue and madison avenue. >> reporter: he says the rents will be about 25% to 30% lower than we're currently seeing in new york city and the restaurant space on the fourth fifth, and sixth floors will bring traffic in and up. back to you guys. >> actually buying those spaces and not leasing it, courtney. it's a huge story. we'll come back to you on that thank you. meantime american pharoah making history this weekend, becoming the first triple crown winner in 37 years. our own robert frank has been following that story and the team way before this derby, and he has exclusive access to what's been an amazing ride. robert, over to you. >> reporter: amazing indeed.

saturday's win made american pharoah and american hero. the horse's owner, the zayat family was filled with mud, sweat and tears and a lot of emotion. up close and personal with the father and son team behind american pharoah during the most unforgettable journey of their lives. ahmed zayat and his son justin are on a quest to win the most elusive title in all of sports the triple crown. our cameras captured the tension when american pharoah raced to conquer kentucky. with the run for the roses behind them, they set their sights on the second leg of the triple crown. but american pharoah reigned supreme winning by seven lengths is reason to celebrate. but the ultimate challenge still lies ahead.

and of course that challenges the belmont and he dominated by five and a half lengths, crowning him the new king of the track. now he's not done yet. he's likely to keep racing for the rest the year and along with more prize money the zaya it ts have sold breeding rights for more than $15 million. they say his stud fee could top $100,000 per foal. if he serves 200 mares a year that's $20 million a year. by the way, that's twice the average pay are for the fortune 500 ceos. nice work for a horse if you can get it, guys. back to you. >> a slightly different job. thank you for that, robert. you can watch the entire race to the triple crown tonight seecret lives of the super rich american pharoah premieres at 10:00 p.m. eastern on cnbc. and the owners will be on closing bell today here on the floor of the new york stock exchange in the 3:00 hour. >> after that huge celebration, the zayat family screaming and

cheering. that does it for us. >> thanks so much, guys. it is 8:00 a.m. in san francisco, california. 11:00 a.m. here on wall street and "squawk alley" is live. ♪ keep the heads ringing ♪ ♪ ding dong ring ding dong ♪ ♪ keep the heads ringing ♪ ♪ hey you sitting over there you'd better get up out of the chair ♪ ♪ and work your body down ♪ and welcome to "squawk alley" for a monday morning joining us live from ww it ddc, the co-founder of elevation partners joined by our own john. back home kayla tausche, in a