i just broke my leg. he was taken off the stage and returned to the stage on a stretcher. they put him in a chair and he rocked for another 2.5 hours. he really did break his leg. wow. >> that does it for us today. right now it's time for "squawk on the street." >> good monday morning. welcome to "squawk on the street." we're at the new york stock exchange. david faber is off today. markets under pressure this morning as the greek negotiations fail again over the weekend. a big weekend for central banks with a two-day meeting tomorrow. oil is back below $59. stocks are lower ahead of a busy week. cvc buys target's pharmacy

business. and the debate of who should run twitter in the long term has begun. first up the collapse of the greek talks and tomorrow's kick off of the fed's meeting as we begin a new trading week. it's good to have you back jim. this meeting lasted 45 minutes. that was all it took for greece to walk away again. >> the narrative is changing to greek leaders saying there's not that much downside. the default people will appreciate that we stuck it to the germans. it's almost like they forgot what happened in the 80s when these latin american countries defaulted. it created a new standard of living and it required multiple years to become part of the neighs of trade. i think that the dynamic has changed and they're saying bring it on. and i think that means european

banks, be careful. i think they're not set up for this. >> certainly the european stock markets have priced in more bad news than we have here. is it our turn now? >> i think that's going to happen and it shouldn't be our turn and i think that when we look at european banks and where they are and how they're hedged and what can happen to the euro they're vulnerable for a couple of days but is citi really that vulnerable? i'm when latin america went under in the 80s and you had the bet against bank of boston and citi. i almost bet some are saying they have more exposure to the mortgages in new jersey. jpmorgan wouldn't be hitting new highs if they hadn't thought about it. deutsche bank doesn't have as much exposure but it's viewed as having it. >> josh brown today tweeted a

economy is being held hostage by a late credit card bill with these guys. does that make sense to you? >> i think that's a great analogy and for four days you're going to feel hostage and for four days they'll be scrambling and then we'll look and say did they allow us to buy je je? >> your hope is they take down a lot of stocks. that's the hope. josh entroun right but remember the european banks are not set up. they're not set up and until they come out and say listen we have no exposure. we're short that and that i think they take it on the chen and the euro can go down. i think the dollar still has topped but i think these are all things people worry about because there was a moment until the last few weeks that felt like the greeks would stretch out the payments. now someone seems to have said this is a win/win for greaseece.

we get what we want or it's business as usual. it's not business as usual when the bankers walk away from your economy. >> we have to get tlud fed over the next couple of days. we are out with the longer term questions they need to answer. does gradual become part of the policy statement? i'm assuming you're expecting no movement in june? >> i read that piece. sometimes what we really need to do is back away from the inevidentability stance. stanley fisher built up guys we're going to race. no. go back to a world that says we'll raise when we think it's right. back to a world where it says they're data dependent. there's no inef itability. there's so many neutral numbers

that it seems surprising to me. change the dial out there and get with the program. go back to your original thinking. stop talking. just talk at the meetings. no need to do more talking. >> you've been saying shut up for a minute. >> i watched the game last night. listen federal reserve people. here's the deal. there are some great nba games and this nhl thing is for real. talk about that. i think curry is very compelling. here it is. janet, have them all watch that fourth quarter and talk about the three-pointer and then everybody goes home happy. but if you're going to talk about the three-point-federal reserve hike no. i'm switching channels. >> let's switch topics cvs agreeing to buy target's pharmacy business. it includes cvs taking the

stores. and 80 stores are being relabeled minute clinics. big move. >> doing some background work on this. my charitable trust owns target thrill. cvs has done a remarkable job. >> you called it a major made in heaven. >> they can't win in drugs but they get new traffic flow from cvs. cvs gets a new footprint. the two companies are being quiet when it comes to tv. that's a mistake but they have to do what they want. i think this is the kind of merger that says target is going to be pest in class and if it can't be best in class in drugs, it's going to let someone else come in. i think it's one off. i don't see them giving offhand bags and cosmetics.

that's not going to happen. this is one off but it's a good deal for both. >> a lot of discussion of you inquisitive cvs has been. >> interesting they spent a lot of money. here they wrote a very big dhoek target. cvs, ever since they got rid of tobacco is a changed company. my hats off to them. they have really created the national health care company that the president should be talking about. they can do more for health care costs than anybody after this. target is everywhere. i was at my target yesterday in oregon looking for some electronic stuff. i immediately told the target people, you got a good guy out there. whenever you get a good salesperson, you call the ceo and then they'll say yeah let me send something to that guy. >> i'm sure you made somebody's

day. >> i hope so. the guy was so good. he gave me the right information with a smile. fantastic. the saudi prince claims he was misquoted. according to the paper he said he did not support dorsey becoming the permanent ceo. but in a statement this morning the prince says should mr. dorsey wish to take on the crow role, i would support him. what the ft reported was wrong. friday during that interview on "squawk on the street" dorsey said becoming the permanent ceo was not a priority for him. >> not eve an question i'm considering right now. we have a great search committee looking for the right fit for twitter long-term, and my focus right now is to make sure our product cadence and momentum of execution continues within the company. and also to make sure square

continues its cadence and its momentum with our strong team over there. >> jim, we've not heard from you on this story. >> i caught the interview. ed a ias i mentioned, they embarrassed themselves. they have no plan and they said there's no need to change. the idea there's no need to change that's like -- that is saying everyone we're arrogant. we're not humble at all. we haven't screwed up at all. it's about product. it reminded me very much of 2000. that was the first -- people talk about bubbles. that was a 2000 interview where you would go on and people would go on and say don't worry about us. we're doing great. worry about yourself. worry about yourself. we've got it under control. they don't have it under control.

at avon, andrea young was out but she was in. take a look at the stock. >> that's not the comparison you want. >> they are avon. they've come up with that type of solution. it was embarrassing. i watched the interview and then i parsed it and it's like david faber was saying guys do you have any understanding of the urgency and they're saying our product, don't worry about it. very 2000. very march of 2000. when people were saying listen it's web van is a winner. don't criticize it. what are you talking about? we have mergers and it is going to dominate the web. i heard that stuff. >> there's having no plan though, and there's keeping your cards close to the vest. you think it's the former. that's what you think? >> i think they have two no trump. for us bridge players out there. you don't want that hand. they got a two, a three, a

dpooiffive seven and nine and they're praying. like wow, this hand would be anything. no. by the way, where's anthony noto. >> that's a lot of people are asking. >> was he disruptive? where is he involved and why are they so everything is great, and if costa low was debating, why didn't he say that. where the ideas that are so good. how about convening a big group of users and seeing what they want and advertisers. they're not convening anything. and it was very telling because david was being gentle. and their reaction to him, again, was very much like we have a game plan and our game plan is well you know it's a good one. it's -- well it's -- it's really good. it's product. the product flow.

the product. the product? what? are they makingeing widget. new and improved. i was in a safeway this weekend. if it says new and improved the dogs don't know that. they won't eat it. >> that's true. between avon and that it says a lot about how you feel. when we come back show down in the skies. we're at with the ceo of air bus. we'll talk to the ceo of aerl again after he rings the bell in a moment. it's part adrenaline and part adventure. it's part geek and part chic. it's part relaxation and part exhilaration.

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cost low. costolo.olo. industrial production is on deck. let's get to rick santelli in chicago. >> hi. may industrial production down.2. it's not the number we were looking for. we were looking for .2 but to the up side. none of that is running very high. we look at yutization rates and

something around 78.4. 78.1. although the revision is actually up from 78.2 original reporting last month to 78.3. we're light especially on industrial production. and we're coming in with yields definitely on the light side. close to 240 on friday. week of fed meeting the data empire, wasn't a strong number. but maybe it's stocks being pressured. we'll keep you informed every step of the way. >> thanks rick. at the paris air show boing ceo talked about maintaining profit margins. >> a volume is your friend when you're trying to make money and we have big fixed costs and record deliveries. the industry has never seen a company deliver as many

airplanes as we delivered yesterday and we'll deliver this year, and viem is your friend. the designs is good. tension nearing has stopped. we have a chance to make some real money. >> in the next hour an interview with tom enders. they book close to 23 billion. >> the stock has weird moves. it has a giant move and then it flat lines for a while and then there's a giant jump. this is positive. i think mcer inny has done a great job. i can only imagine what happens if i know you buy planes in dollars but at the same time air bus has a big advantage right now. it doesn't matter. mcer inny is a remarkable competitor. we should be proud of this man. i think it's a great long term

plan. >> and qatar buying airplanes. >> he's got an order booked. this man has 20 -year plan and it's not based on pie in the sky but based on an order booked that he's got to get the planes ready and get them out the door. >> do you worry about the trade deal getting sticky a bit with the democrats and the president? >> i think when you have a superior machine with great value, you win, that's what boing is offering. the exxon bank i'm a capitalist. what matters here is that this company, boing, makes interior machines and charges good prices and everybody is happy and it's going to win a fair share of orders. our airlines the stocks stopped going down on friday. >> mercifully. >> down 25% seems to be a level where you stop going down united technology plans to make

a decision by the end of the third quarter. they bring guidance in a little bit largely because of the separation costs. what they're calling oil and gas weakness as it relates. >> that was disappointing. i didn't like the guide down. they dropped it by $0.30. this was a trade that should have been done three years ago. timing is everything. who predicted oil is going to go down? when you're in the gulf this is how you get the platforms. you use helicopters. it's a terrible time to sell it. that's why u tech should be down. >> late on the separation? >> yes. >> heck of a legacy to leave behind to something that's a storied anymore. >> it is. and i like united technologies very much but this was shocking to me that this was not handled well. it makes me think what really happened with the previous ceo? there was turmoil, they tried to present it that it was smooth.

another place, they're not twavon or avtwit in terms of having two ceos. we just fired this guy but he's really our guy. if k you imagine if you fired a coach and put him next to guys and you guys were 0-16 and said we're keeping his game plan. that's the winning plan. >> the messaging might have been a bit confused yes. >> they are who they say we are. you know? i mean it's like practice? not a game. every single one of the things i've thought about in sports were brought to you right there. playoffs? we don't want to make the playoffs? >> we'll get cramer's mad dash and count down to the opening bell and give you one more look at the preopening market. our monday with pressure as it relates to greece. and brent saunders is set to

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♪ just about 5 minutes before the bell. morgan stanley taking micron to the wood shed. >> micron holding to sell. this has been a one-way stock. they also make flash. once d rams went into overproduction you had to keep cutting numbers and morgan stanley is saying enough.

it wasn't a great performer for a long time. those were then and this is now. stay away. >> their point is there's usually a seasonal surge in orders. they think this year it'll be weaker than normal later than normal. >> pcs are a dying class. i read a piece about apple closing the mac. you have a winner. you don't need to close it. pks are going away and micron is inside a pc. there's overproduction. it was great while it lasted. >> web bush takes lowes to outperform. >> this was interesting. i happen to they depot had a better quarter. they are saying it's seres falling apart and they're just taking -- macrotail winds and sears going away. i've been waiting for someone just to frankly come right out

and say listen sears is the greatest thing that's ever happened to lowes and home depot. >> we had this conversation last week. we said where's all the sears business going? it's not going to macy's. your point was it's going to home improvement. they make millions and we do and call our agents and hope for the best. >> we'll get the opening bell in just a few minutes. 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.

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you're watching cnbc "squawk on the street" live from the financial capital of the world. the opening bell in about ninety-seconds. a lot happening at greece talks fail over the weekend again. in the macro data has been largely disappointing. industrial production just missed. the range we've been in the s&p for seven weeks has had a sub 1%

move. longest streak since '93. >> we're all hostage to this unissue, and i know people say it's ridiculous but we are. you may think it's ridiculous but when we felt greece was going well we had a huge up and when it's going badly, down days. in the meantime mergers, a dealer track gets a big bid and cvs and target get the deal. hedge funds are looking at european banks and let's go short the banks and knock the markets down and get out of there. this is what happens. it's something to do. that's what you're do if you're hedge fund. i have to justify what i do but i have to tell you underneath there's some terrific companies doing great things with each other, merging. >> we'll see. m&a has quieted down a bit. we'll see if it finds a second leg here in the next few weeks and as we get into the summer

months. in the meantime china's cap tops 10 trillion for the first time. >> that's like ya pan. when we were worth so much more than we were in '89. come on. >> there's the s&p. more red than green and the opening bell. down at the big board, it's activist celebrating the name change to allergan. the nasdaq materialized a material of 3 d printing celebrating the first year as a public company. bio techs getting news this afternoon. blue is in the news with sickle cell anemia trials. >> small study. but a dreadful disease. have to be careful because that was out there before. i wouldn't buy it on that. last week i was interviewing a company, this is the dimension solution. that stock was too hot.

there's a little too hot money coming into biotech. >> journal today argues too much capital chasing not enough quality. >> there's quality and then there's companies that are capturing the imagination of people. there's plenty that's great going on in biotech. a little company red hill that i follow, that's up big with good gastrointestinal news. you have to see trials that go on for a long time. when you have a competitive play, regeneron is down and others have a product. be careful. that group may had a short term peak on thursday. >> all right. good to note. target is the bigger gainer this morning. tells you about the lack of news elsewhere. >> and target and cvs do not

have a lot of greek exposure. that's the terrific thing about them. probably some of the ceos might have been in fraternities, maybe something. >> we talked about before the break, micron is leading closely by san disk. >> san disk is one of the companies companies people think is going to get better. you'll see there are people expecting a bid, whatever companies. companies that get bids tend to be good companies. i've been watching. there have been three upgrades from sells to hold or by dee yauj owe. that's a good company that might get a bid but companies that aren't doing well and earnings are coming down they tend not to get bids and there's a lot of

people who feel i can be in this one because the stock is down. those companies are less inclined to get bids. i had this track company that got kids. they were doing so well and i was telling my bookers let's get them on again. they're doing well and nobody cares. turns out somebody does and snaps them up. >> dow is down almost 175 points in the early going. financials are not going to help. morgan stanley and jpmorgan all down more than a percent. >> it's crazy. the stock had a huge move last week. jpmorgan has a lot to gain. some exposure to greece. they'll make it up somewhere else. this is what happens. there were too many people expecting something good this weekend, expecting there would be rationality. there wasn't. this is what the sea of red is like when you're preparing for

irrationality. hedge funds are short. they'll short everything in the index. they'll not recognize this doesn't hurt netflix. you short koim cast and you're betting against maybe the most exciting movie i've taken my daughter to. >> jurassic world, the best opening weekend in the history of cinema. after pitch perfect 2 after furious 7 and 50 shades universal is going to do a nice number. >> and it should. don't show anymore. it is riveting. it is riveting. right down to the t rex. it's riveting. >> interestingly baba the streaming service ceo trying to become a netflix of its own. tow bow box office. >> what is the new black for them in. >> that's probably more of a

local. >> i still -- i can't watch game of thrones with my kids and orange is the new black. >> you couldn't watch game of thrones with your kids last night. >> jurassic world is about as close as you want to get. >> every dow component in the red. utx led to the downside of the worst performing component. your argument is -- is the argument let greece bring us all in and you'll get interested around where? >> i think they're down and there will be plenty of companies that will say you know what? if the euro does the turn and starts going back up the numbers are going to go higher. our company is not levered but of the way hedge fund books are passed around, that's silly. when you look at target and cvs, these are companies that are in control of their own destiny. they have nothing to do with a german guy being angry at a greek guy.

you have to wait. you wait. because ecb is not going to bail them out because they don't want to be bailed out. they think they have the best deal. >> now saying no ecb rescue for greece. monitoring for his comments. >> i guess they're not old enough to recognize what happened when brazil basically went under and argentina. a dramatic decline in our saturday of living and you don't get credit for years and countries run on that like people do. i think they must think there's no damage to be done. i think there were a lot of hedge funds set up to think it didn't matter. thinking the payments would be stretched out. this is a big upset. this is like material yalty beating american pharoah. >> yeah. >> i think there's a lot of people who had a lot of money on american pharoah. >> with all of that and rates doing what they're doing, let's

get to rick santelli and see what the picture looks like in chicago. >> it's good hockey and good treasury buying in chicago. we're basically on chains. hovering right below 240 and yields started coming down. empire being extremely weak kicked into gear. you have empire and some buying coming in you start to trade under the lows of friday. it's the week of the fed meeting. when it comes to the fed it's crystal clear, yeah right. most traders have varying views on what's going to happen so the technicals become especially important this week. if we want to see what's going on, open the chart to may first. there's so many support levels in the low 2.30 to 2.40. if we look at the euro versus the dollar it doesn't get more

sidways than that. the volatility is getting soaked up a bit and i'm sure it's also because of the fed meeting. the dax is trading at the lowest levels. pretty much all the high yields were made in january extremes. when we look at the lower bounds all the last day of january in the united states if we look at the dax, it might be an interesting chart to pay attention to. let's switch gears to securities. etfs, the lqd has been under pressure. let's show a chart. it's hovering at the lowest levels since january of 2014 but when we look at the high yields, that had been holding up better at least in the etf area space and now it's starting to give way, floating with the lows of the year. we want to monitor this because in the end whether it's futures or cash markets, all sectors are

going to respond to what's happening this week with the outlook of the federal reserve. >> rick thank you very much. bob is on the floor with us watching what's moving. >> we are weaker today. all ten sectors of the s&p to the downside. considering the concern about greece here i see gold doesn't have much of a bid and the dollar is not doing too much. take a look at the sectors. all ten sectors down. this is broad weakness. industrials also weak. health care and finance pretty broad group down three-quarters to 1%. the solar names of chinese stocks and steel stocks down. all a little bit weaker than the overall market right now. as for the volatility the vix is popping a bit. it hasn't been above 14 much this year. it did pop up this morning to

over 15 but pretty low compared to where it has been. when it gets towards 20 that's when people start gawking. the greek banks are weaker today but the european banks don't have the exposure they used to to greece. most of the losses is with the central governments. ubs is only 5% off the recent highs in fact i wouldn't say it's pricing at a big greece mess for anticipating they're not affected by it. european stocks are broadly lower. germany is about 12% off the highs but still up about 11% on the year. a lot of damage but still positive territory for them. in the u.s. a very unusual deal. jim mentioned the standard pacific merger in the home

builder area. they want land. they don't want operations. they want land. it doesn't happen that often. i think the last time we had a deal here was probably 2008. but you get some big things out of this deal. you get diversify kags and more sales in california and more diversify kags and a higher end product. more exposure to move up buyers. ryland and standard pacific is up. you f you do the math there's not much of a premium in the deal. they're getting it pretty much at the cost of the companies themselves. the bottom line is good deal but no premium. finally want to mention united technologies. i hope you saw the helicopter will be made. it's lower here and that's because their guidance is about 10 to $0.20 lower than

expectations. they're saying this is partly on what they would need to do to complete the deal. >> thank, bob. your thoughts here? >> in the end you have a story the commissioner said on monday it's time to prepare faror a state of emergency. you can't come in and say, look this is the day to put a lot of money to work. i think there are things that are down too much. highest growth comes right back. ambarella ambarella, but state of emergency doesn't make me feel like what an opportunity. let's see it play out a little. i don't want to hurt people here. >> when we come back brent saunders is going to join us when we come back. the dow down a quick 176 points.

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obviously a weak breadth on the s&p. s&p is down almost 19 points. the dow is down 178. this would be the worse close if we were to close since may 29th. >> the latest economic indicators and survey data broadly confirm our assessment with the economic recovery is proceeding at moderate pace. why growth has been growth by private consumption in recent quarters, we see encouraging signs that private investment the picking up. >> he's got it up and he keeps showing his face. just after months creating one of the world's most largest drug

makers actavis is now allergan. the ceo of the new allergan brent saunders is with us. good to see you. >> nice to see you. >> actavis is the same i know as the stock that goes higher. why lose it? >> allergan is such a strong name. when you think about what's the name for in our business it's for customers. when you look at the aesthetics the name allergan meant so much to the customers, we decided it was right for the whole company. >> okay. one of the things i learned was there were so many great things working in the pipeline. what can v you discovered that you didn't know that we're going to see as part of your aspiration? >> probably the most exciting one we saw that i wasn't that particular with was botox for depression. we're in a phase two study.

>> for depression? >> a huge unmet need. some drugs have lots of side effects so botox could be a game changer. >> recently the second quarter of appeals said that your -- you could not take a drug manendair in order to make it so people would go to a better version, technically better version and at the time i thought it might cost you several hundred million dollars. when the digs came down you said you did not expect an impact. what changed to not worrying? >> patients and care givers and doctors had been moving to the no in a men da xr on their own. we converted about 50% of the market on our own. we like to promote and put our

resources behind the drugs that we spent a lot of money innovating around. the jungmarket has done it on its own. >> on botox, i remember talking years ago, they argued it was an easily deferrable procedure and that was a liability at the time. is it the flip side now? >> actually you would think it was a deferrable procedure but what we saw in the crisis and what i had just had coffee with david on friday, they did happen. in fact, botox was one of the only elected procedures that continued to grow through the crisis, and in good times it continues to grow. it's a power house of a product. >> one of the things it's been doing was for migraines. i had a company on recently that looks like they have something that may be superior for

migraines. are you concerned? >> what they have is a cgrp. there are a few of them out there. the data on three of these look particularly good. from what i've seen in the data versus a product on the market it's the same. same efficacy and same rough safety profile. very different use. the one thing for botox for migraine is it's probably one of the best. another one is about $1500. >> a lot of needles. >> but cgrp will probably be 10 times that. >> i know my friends who have taken botox product, swear by it. natice, it has a doctor you can call to get it. it seems to be from your company when you -- you don't need a

prescription from your own doctor. is that isn't it true. >> no. it's a program. you always need a prescription for natise. it makes your eyelashes grow. we're working with specialty farmties and other programs to have the doctors almost like tele medicine. >> this is the new way doctors do it. almost like you're the most inventive company to do this. >> look i think the characteristic of our company as we rename ourselves today is about being bold about trying new things. this is a dynamic health care industry around the world and we want to lead the change and look at how to innovate and bring products to patients faster and work with physicians and health care providers, insurers and others and governments to bring government in a unique way that's more efficient and better for everybody. >> just a huge win.

i think you've done a remarkable job with allergan and i want to congratulate you. actavis is now allergan. >> that's right. thank you very much. >> good to see you. we'll get stop trading with jim in just a moment. dow down almost 200 points. don't go away. the e-class has 11 intelligent driver-assist systems. it recognizes pedestrians and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash. the 2016 e-class from mercedes-benz.

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i'm looking for nongreece, things that can't be affected by greece. also mentioned positively william sonoma. this is the first breakout. if it weren't for the port strike 50% of the entiz direct to consumer. won't be worry about the promotions. they said it's all built in. it's getting a will the of e-mails from their divisions. that's their strategy. it is not something that's wrong. i thought that was interesting. >> sounds like you're going to be patient on son-in-law ofme of these? >> yeah. let's give it a day. look there's probably some bargains and you might want to be in them but tomorrow is also a day. there's other days after today. if greece has made up its mind

that it's better to roll the dice, people might have the wrong bet on it. there's always some hedge fund that is busy you know on twavon telling its position. >> what's on mad tonight? >> i've got christine day. those of us who love lululemon from the old days she has new company. she's brilliant. a lot of people felt like when she left lu lu -- lulu is coming back. but she's one of my favorite people. >> welcome back. >> welcome back from southern oregon which is the most beautiful part of our great country. >> when we come back the former treasury secretary on the onp ed regarding free trade. the dow down 172.

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new york stock exchange. markets having a tough start to the week. dow is down almost 170 points as these headlines about greek negotiations failing over the weekend start to have an effect. s&p down and oil not helping matters. let's get to the road map. air bus group completing big orders. the ceo joins us live. plus larry summers is weighing on in way a free trade deal is so important. we'll talk to him live. >> and john burbank joins us to talk about investing in saudi arabia and where he thinks stocks in the u.s. are going. >> and breaking news this morning. good morning. home builders sentiment jumps five points to 59 in june according to the national association of home builders wells far doe index. we have a five point gain to 59.

59 is the line between positive and negative. this is the highest level since september of 2014. last then was the last time we were in negative territory. the builders saying today's buyers are serious and committed. of the three components the current sales is up seven points to 65. sales expectations up six points to 69. that is the highest level since 2009. buyer traffic up five points. it's the only component still negative. in the south and northeast, three point gains to 60 and 44. the west saw a gain of two points to 67. the midwest saw a drop of one point in the sentiment index to 54. national overly a big beat for the builders who are seeing things going better into the summer season. this after we saw new home sales

and housing starts jump in tomorrow sales. >> thank you. cutting our losses here the dow down 161 points. clearly entering a hugely important if not pivotal week for markets. on wednesday janet yellen will deliver the latest plans for the interest rates and on thursday situation with greece will reach a boiling point. that's what deutsche bank is predicting. the head of the ecb speaking moments ago saying the bank remains committed to a successful outcome. take a listen. >> we need a strong and comprehensive agreement with greece and we need this very soon. by strong and comprehensive, i mean an agreement that produces growth, that has social fairness but it is also fiscally sustain shl, ensures

competitiveness and addresses the remaining sources of financial instability. i can assure you that the ecb is doing all it can to facility a successful outcome. >> okay let's bring in two people to talk about this. good morning to you. let's kick off with the feds which we hope will be the major event of the week. jim, if we get from janet yellen what we expect basically playing up peopleably the positive data but suggesting interest rate rises will be slow over time, how do you think the market will react? how is it positioned? usually we rally on janet yellen? >> i guess my guess would be if it comes in as expected i think that would probably be perceived by the markets as a positive. i think we'll be parsing it. i bet the markets are parsing

particularly the press conference and i think looking for any indication that she's moving a little bit more aggressively for the possibility of maybe not one and done but maybe two and done or a faster exit depending on if she emphasizing how much the data has improved particularly if she comments on waging picking up or core inflation. i think it will be heavily parsed and i think at the end of the day, probably there might be a lot of volatility throughout the week but i don't know if it'll be a game changer now. >> jeffrey, as far as the longer term, if they pull down their projections of where they think interest rates will go over time as many expect because they're unsure of how quickly this economy can actually recover, what does that mean for the stock market? >> i don't think it's necessarily a bad thing, simon. we know from looking at market participants expectations of fed

behavior that they're expecting a lower and longer course of action from the fed. i'd also say a lot of investors right now are relatively pessimistic if you take a look at the survey only 20% of investors are bullish. i think they're worried about the pace of the fed and the u.s. economy or the world economy, if they're ready. we noted the imf and the world bank almost came out and asked the fed to please don't hike the rates. i think they're worried and investors are also worked about the pace of fed activity. >> how do we think about the global, and what's happening around the world. they have said it's weighing and sensitive to the international developments developments. it doesn't look great. you're seeing cutting of interest rates to cut inflation. how should investors think about the international concerns?

>> i think it's a mixed bag. flos doubt about that. i think there's increasing evidence that we're starting to see lower sovereign bonds yields starting to helpeconomies. in the united states we're seeing that. look at the housing numbers and housing numbers we've gotten recently. the job numbers have come back. good retail sales and starting to get some reports out of the euro zone similarly, including higher inflation of late. i kind of think we're at the front end of a bit of a global bounce and maybe a synchronized global bounce. whether that's enough evidence to affect how the fed looks at this probably not but it could be by september, particularly if we continue to get up ticking data out of europe and the united states. i really think at the end of the day, it won't be the fed that

derp determines how fast or how much they'll raise. it will be the economy, and right now i think that's turning back up again. >> jeff i need the ask you about what's happening in greece and shoiw you pictures of the emergency meeting they had. this is an inexperienced left wing government that doesn't understand that the rest of the people from the euro zone don't -- many are suggesting the probability of an accident now in greece is palpable and may come this week certainly by the end of the month. for investors sitting in this country, how should they prepare themgss? >> i think it could be a negative outcome for greece but the affects beyond greece are largely contained. take a look at bond spreads. spanish bond yields spread to germany about 167 basis pointings today. the ec ent containing that with

their ability to guy bond spreads and buy bonds and recycle the positives. i do not see a con teenagetagion resulting. more countries have been joining the euro zone than leaving it. look at it as a value. >> okay. it's a big week. i hope you have a good one, both of you. >> dow down 163. let's go to don for a if i can market flash. >> a lot of red on the board but look at shares of target selling the clinic business to cvs. the deal includes pharmacies which cvs will run inside the target stores. they are l also have minute clinics. they expect to drive long term

sales and traffic sales. both target and cvs up in today's down market. >> air bus group and boeing kicking off the paris air show. we're live in paris with the ceo of air bus. >> reporter: good morning. we're here in paris. i'm with tom enders. it is a busy morning for you guys. you've had a couple of big orderings placed this morning. overall, when you look at the industry as a whole and what we can expect how much moderation compared to past years do you expect in. >> i think we said already at the outset before we started the show that we would not expect this is another record-breaking air show year but we still think it's going to be a good one by the way we sold 146 commercial aircraft during the morning. >> not a bad morning. >> not a bad morning but don't

expect us to do that with the same rhythm but, you know we'll end up with a good tally here. important as well the space business, we had a very important announcement this morning. we've been chosen by one whip to be satellite manufacturer of at least 900 satellites over the north orbit con alation that they're planning to put up. that's an exciting order as well. you see us with a new helicopter, the h 1160. important also this morning that the one was flying again demonstrateing faith in this great military aircraft after a crash we had four weeks ago. i expect a good showing. >> this show gets so much attention because of the commercial airplanes but the military component should not be overlooked this year should it? >> absolutely not.

i mean we are not primarily a defense company. we have only 20% of our revenues in defense but we're supporting a strong defense portfolio. i think the transport military mission aircraft of the western world, that means the u.s. including. we have a great helicopter portfolio, particularly also on the defense side. we just recently won a major contract together with our partner called the air defense system in germany. let's not underestimate the defense business. >> i have to ask you about the potential for britain to take a vote to leave the eu. would that cause you to curb your investment in that country? >> obviously we would not leave the country that day.

i think more indicative is i saw a poll the other day in the industry we're of member of more than two-thirds were saying that this will have negative consequences for the industry in the uk and i happen to believe that long term it's not positive for the industry. this is why the industry amongst others will lobby if it comes to it if we're going to a referendum for a yes vote for the british e lek to rat. >> >> reporter: you haven't tapped into the u.s. and other markets as much as you would like. do you see an a 3 a order coming into the u.s.? >> you're right. the middle east we have one model behind us, the qatar we

sold it well in europe. we haven't sold the aircraft in the u.s. market. we have only sold five a 380 in the other market. what i cannot predict when our sales force will land in the markets but i would say in the next five to ten years, i'm pretty sure they will. >> reporter: tom enders a man wearing many hats today. back to you, sarah. >> thank you. up next larry summers with another scathing op ed out today on u.s. leadership. he'll join us live to explain why getting a free trade deal is done is critical. "squawk on the street" will be right back.

well we knew it would be ugly. now we know just how much havoc the u.s. dollar is wreaking on corporate network. currency swings. turns out cost north american companies nearly $29 billion in the first three months of the year. that's the latest from fire apps which is a company that advises other companies managing their foreign sales exposure.

if you add in european companies, nearly 40% slide in a year with the ruble, 31 billion was wiped off of profits. it's four times as much as a year ago. for american companies, the main culprit was the euro which fell in the first quarter but companies also blame the ruble and the british pound for some of the losses they saw on profits and sales. as long as economies around the world remain weak and central banks see intervention as a successful stimulus tool we should expect to see continued currency volatility. that was released by fire apps nature we are seeing central banks actions. others cut rates last week. the bottom line here is that any american company with any foreign exposure is feeling the heat from currencies but there's a silver lining. the euro is up so far this quarter.

4 .5% against the u.s. dollar. that could provide relief with businesses across europe. we saw it from across industries from facebook to ford and pfizer and some of the consumer companies like koecoca-cola and pepsi. >> cramer says he remains focussed on companies that don't have exposure to greece. >> some of the retailers also in consumer space, snapple has benefitted. that's why people like small caps as well. >> when we come back larry summers with strong words about the free trade deal today. we're live with him in just a moment.

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the 12 nation trade agreement was shot down making the president's deal much more difficult. there is an op set titled a setback to american leadership on trade. and the man joins us live this morning. you're critical of congress shooting down the trade bill completely. in your view is it bad politics or economics or both? >> bad geeo politics. the centerpiece of u.s. foreign policy has been a tilt toward asia, a rebalancing toward asia. for that to work there's got to be a crucial economic and a crucial nonmilitary component. we've seen what happened with finance. the united states is out of the

asian infrastructure bank. the united states has not been able to deliver support for increased asian participation in the imf. the united states has held back growth of the world bank. now we're seeing on trade an american initiative badly in danger. if we want to be relied upon if we want people to be interested in our initiatives, if we want to remain a substantial and trusted presence in asia a negotiation that we launched three years and that we've driven has to be a negotiation that the united states can carry through on. so this is above all, a geo political issue, an american stra strategic issue.

you can debate aspects of the economics. i think the -- i think on balance, this strengthening our economy, but it seems to me you cannot debate the importance of the united states being able to carry through and if the united states is not able to carry through, that will raise questions about the capacity for presidential leadership both for the remainder of this presidential term and going forward. no other country in the world wants to be in the position of negotiating first with the president and then with a congress that -- who is behavior can't be predicted. >> it's quite a warning, and you write in your piece that repudiation of the trade bill by congress would neuter the presidency for the next 19 months, reinforceing your message there.

hillary clinton, presidential candidate over the weekend said let's make lemons out of lemonade. she didn't really take a position but people say it doesn't do tough to boost the wage of american workers or other things. are the concerns legitimate based on what you know about this trade legislation? >> look i think those kinds of concerns are legitimate to raise with respect to every trade agreement agreement. i think it's incumbent in the closing stages of this negotiation that the united states do as much as it can to support the various american interests here. that's certainly been president obama's position as it is mrs. clinton's position and it's certainly the case if you don't

get a sufficiently good deal then you can't make a deal. but i think it needs to be clear that if there's no tpa, there will be no concessions and no negotiation at all. if there is tpa, congress reserves all the leverage in the world because if it doesn't like the deal then you are in a strong position to reject -- then congress can reject the deal. it gets a vote. it gets 60 days of fully transparent study before that vote. and so there needs -- so it needs to be clear that the path of rejecting tpa is the path of ensuring that there is no deal because no one will negotiate with us. and on the other hand -- >> i just want to ask you, why

do you think there is a disconnect with the labor movement on this issue in this country which appears to have mobilized in force in order to get the rejection that we have at the moment? why can the trade unions not be brought along? has obama not spoken to them in do they not understand it? why the disconnect? >> i'd say a few things. i think that we have not done what we need to do as a country for working people. we have allowed the substantial denigration and min mization of worker's rights to organize. we've allowed the minimum wage and basic social protections to attenuate. we have allowed a failure to create jobs for core groups ofofin our population by slashing

things when we need to do more of it. we've allowed whole a whole set of mechanisms inequality to increase substantially. there is every reason for organized labor to be unhappy. the problem is that this is the wrong hostage for them to take. yes, relative to the world we used to have there's now a much more global economy with much more competition coming from developing countries. that will be true with this trade agreement. that will be true without this trade agreement. the difference is not that we are opening our market in any major way in this trade agreement. the difference is that others and other countries that are looking for a global effort that

will support their economic reforms that open their markets will get more open markets which will ultimately work to the advantage of the united states with this trade agreement. i think we have more leverage to advance labor's interests with this trade agreement than we do without, but make no mistake, this trade agreement is not the strategy that protects the american middle class. if we're going to do that effectively, we need to do far more, whether it's the minimum wage or whether it's family leave, whether it's a massive increase in infrastructure investment, whether it's doing a set of things on higher education affordability, whether it's making sure that universal health insurance really works. whether it's reforming a housing

system that denies credit to plenty of credit worthy middle class potential home buyers. we need to be doing all of those things and when we're doing all of those things this agreement is profoundly in our geo political interest. it will be a more dangerous world if the united states shows itself again, unable to participate in international organizations in a full way, and unwilling to support global trade agreements that it initiated. that is creating a more dangerous world and that cannot be in the interest of middle class families. >> we have just a couple seconds left. we want to get your thoughts on the headlines about greece over the weekend. we've had you on where you've said don't raise rates until you see the whites of inflation's eyes.

do you see them? >> not yet, but that day could certainly come and greece has the makings of a tragedy. there is plenty of sin on both sides. greece needs to be prepared to make important changes, but europe needs to be a lot more ready than it has been to take yes for an answer. >> we'll see what happens. thank you for your thoughts. obviously on greece and of course on your latest op ed on the trade deal. larry summers joining us from harvard this morning. >> straight ahead on the program, john burbank. passport has been in saudi arabia for years and that market is now open to foreign invest. . plus watch with areas of the market he's watching now.

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here is your update at this hour. the woman accused of helping two prisoners escape from a new york state prison is in court today. she's accused of giving contraband and agreeing to be get away driver for the men before getting cold feet. two teenagers are out of surgery

and in stable condition after being attacked by sharks. 19 minutes apart off the coast of north carolina yesterday, oak island's mayor said she didn't think emergency workers had enough time to close the beaches. >> a natural gas pipeline erupting causing forced e volcanouations. some reports say the blaze could be seen 20 miles away. and brit season celebrating the agreement between noble men and king john of england that forms the basis of democracy in britain and in the united states. there are a number of copies around the world. that's your cnbc news up date for this hour. back to you. >> the saudi arabian stock market has been largely off limits to foreign investors but

today that changed. the oil rich country allowing direct investments into market. joining us this morning to talk about that is john burbank, passport capital invests heavily in saudi arabia. good morning to you. >> good morning. >> you've been in the market for about five years. what really changes today from a retail perspective? >> we've actually been in the market for six years since '09. what changes for retail at least here is nothing yet other than hedge funds that are over about $5 billion in assets with register and buy stocks directly in saudi. it means it's becoming institutional. the counterparty risk that you face is now evaporated for any large firm. it's on the road to making saudi

a normal market that the world can invest in? >> where have you been in terms of sectors in that country? >> the sector that we like best are banks. banks are about one-third of the index and because saudi is pegged to the dollar the import u.s. monetary policy any interest rate rise is beneficial to the banks. under sharia law the banks don't have to pay interest on their deposits. it varies according to which banks do better but for one-third of the index, it's a great sector to be in in saudi. >> i find it interesting you're betting on saudi arabia when one of your strategies has been shorting oil companies in the u.s. the exploration and production companies. what's your thought on oil and how does it relate to saudi arabia which is such a giant producer? >> we did much better in oil at the end of last year.

oil has had a decent rebound since march. saudi is not just about oil. saudi has $700 billion of u.s. tea bills at their central bank and last year when oil crashed and the king died there was a lot of risk off sentiment in the market but saudi has built up so much cash and in the last five years they've been investing them back in the economy. this has stimulated real growth that's unrelated to gpd growth around the world. we've avoided merging markets other than saudi and china. both have currencies pegged to the dollar and both are growing in their consumer economies in ways we really like and are under appreciated, i'd say. >> john it's a huge week clearly for markets here and around the world with the federal reserve and janet yellen

on wednesday. were you a net seller of banks in this country and what do you think is going to work best moving forward now? >> we've been avoiding banks. i think banks are trading really on the treasury curve, and we're pretty skeptical right now that rates are going to stay up here. they backed up for technical reasons. there's also a belief in reflags and growth in the world as well as the united states that we really don't believe. employment is better. we grant you that but we think the second half of the year is going to be worse for growth and for a lot of data so we don't think banks are the right place to be in the u.s. this year. >> what is the trade if you believe the second half is as weak as you say? >> well we believe in secular growth in various companies and various sectors in the u.s. we believe the same in china. we believe the same in saudi.

we're not bullish, though on gdp. essentially we're along specific growth peculiar to companies in sectors but we're short general gdp growth. we like the u.s. because of the superior and corporate governance because of share buy backs and because of just huge change that's going on in the u.s. that's not related to gdp growth. it's a very good market for hedge funds if you have the right perspective because there are lots of things that are now going down as well as other things going up. >> you still like the strong dollar john? >> you know i do. i do favor a stronger dollar but the fed backing off from rate hikes in march put a top in the dollar and in as much as we can't say they're not going to raise rates here which, of course, would be very great for the saudi bank position, we

think it's going to be tough given growth is going to be weaker for them to have a normal rate hike cycle which is what the market seems to expect. >> finally, john i'd love a little bit of color in terms of dealing with saudi just going over there, trying to figure out how business gets done some of the -- you must have a million anecdotes just about dealing with them and getting used to the culture. what advice would you give to a firm that was trying to jump in? >> first, you probably want to send a man instead of a woman. it's harder for a woman to operate in the company. that's the worst thing i can say about saudi. in business culture, it's easier to deal in saudi than most other countries i've dealt with. most saudis speak english and they're educated in the u.s. if you're dealing with anyone in the government, they probably have a p h.d.

the comfort with americans and westerners are much higher than they think. they dress differently at business meeting but so do i so i think that's okay. so actually i've had a great experience there. they value our relationships. they are fiscally very conservative. it's easier to deal in saudi than india, for instance in my opinion. easier in a lot of respects than china but there's a cultural bias against saudi. that's basically limited foreign investment in saudi to just % of the almost $600 billion market cap in saudi. we think as much as $50 billion is going to be coming in passively from etfs in next 18 months into saudi whenever they put it in the index and yet there's only 6.$6 billion of foreign assets in the country

right now. there's a culture risk aversion. >> it'll be interesting to see if it changes after today. please come back soon. good to see you again. >> okay. thank you. >> up next on the program, jeb bush throwing his name into the race for 2016 formally but not an easy road. what that means for the gop field when "squawk on the street" comes right back.

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webjeb bush is set to announce his presidential bid today. we are live with what that means for everybody else on the gop

side and the other side of the race. this is a long time cam coming. he's been thinking about it since the middle of december, no? >> >> reporter: exactly. he's been actively exploring this race for the last six months. he's now ending that period of in limbo and declaring the race this morning hear at miami dade community college. he's doing it in part with this video showing him as a candidate who can reach out beyond the traditional republican base to african americans and hispanics. he's trying to show that it's a bigger tent in this republican party. if you look at the advantages and disadvantages he's got in this race first of all, he's got a political network. she's universally known because his brother and father both served as president and he has tons of campaign cash. he's been raising that and he has a solid conservative record governing here in florida which is one of the most pivotal

states in the country. the disadvantages are there is some bush fatigue. h his brother left office very unpopular. he's been 13 years since his last active campaign in 2002 when he was reelected and finally he has a bunch of younger rivals. the irony is campaigning with a new logo. it's the same one in his governor races that just say jeb. he wants people to know him as jeb and not simply as a member of the bush member. he's running on what his brother and father ran on when he said he was going to bring a kinder gentler brand of republican politics. in that way he's in line with the bush family tradition. >> that's the best answer as to why he was able to clear the field eve within this delayed announcement? >> look.

it was an anomaly when his brother was able to clear the field in 2000. people saw the money he was raising, the bush name. he was governor of texas at this time. it's simply bold people out in the race. time has passed. you have a different party. and this is somebody, as i said who is rusty and he's older. there's a generational shift. you've got marco rubio who is a friend of jeb bush a protege of his, but much younger and able to say i'm the fresh face in the party. it's inviting for a lot of republicans. john kasich is another who said he expected joebeb bush to suck all the oxygen out of the room. it hasn't happened. >> dow is down about 164. still down sharply for the day. more on what is moving these markets when we return. ♪ every auto insurance policy has a number.

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let's get to the cme group for the santelli exchange with rick. >> good morning, carl. rebecca corbin a special

channel check. what is have we done and what's the survey? >> we surveyed industrial investors, checked sentiment. we worked with corporates. industrials have been under performing and we are seeing a shift. >> this is a global perspective? >> yes. >> let's start at the top. what outlook are they looking at with regard to guidance from the companies they are investing with. >> looking to the back half of 2015 almost 60% of investors are looking for further downward revision nts terms of guidance. >> they must have split positions, right? >> no. these investors are actually buying or rotating. less than 15% indicate ethernet sellers. >> they are looking for a bit of negative guidance but they are fully invested. let's go to another area. >> it's priced in. >> how are they looking at growth levels? >> growth is tepid. 96% expect flat to 4% growth in 2015. looking out to 2016 we get more constructive. more investors are looking for faster growth. >> it's is still somewhat evenly split. i find it interesting.

there are economists looking for four to five. this is split evenly 1 to 2 and 3 to 4. >> an interesting trend we found was the disconnect between the buy and sell. outside where the buy side is looking for one to two and the sell is 3 to 4%. every channel check we looked at, the buy side was more bullish than the is he side. >> people selling services in the financial industry are always more optimistic than customers a little bit. what does this say regarding a new question that you put out? is there recession in the cards? >> we asked for the first time recession. we'll poll on the recession question. two to three years out meaning for the next 12 to 24 months we have some runway. >> some runway. finally creative accounting. excess cashment it seems every time i see quarterly news come out there is always a nongap one-off. did many companies seem to be finding them every quarter. reconcile what the future looks like from the investor standpoint with excess cash versus what the companies are doing.

>> okay. here is an interesting finding. 60%, 61% of investors are -- >> okay. what's hot and what's not in the last half minute. >> we have building products. we have construction both resi and nonresi. customer, aero and auto. on the down side mel talls and mining materials and defense. >> national association of home builder index jumped to some of the best levels since 2005. interest rates may move higher. we'll see this week. in the final few seconds housing and construction seems to be running high though there are potential headwinds. final hougts? >> go blackhawks! >> i i like it. thank you very much rebecca corbin perception. >> thank you. >> back to you. >> rick santelli. now over to jon fortt with a look at what's next on squoez

squall "squawk alley." >> we'll continue to talk twitter after last week's ceo transitioned news. questions about who might be backing jack dorsey to keep the job long-term. alibaba is extending into the media business. maybe a netflix competitor in china. we'll talk that and more. that and more coming up. tune if.

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we are off the session lows. the dow is still down. 162 points. broad weakness. all ten major industry groups for the s&p are lower. one bright spot is target which is actually trading higher on the back of the cvs deal nearly $2 billion to take over the pharmacies in store. >> contagion returned to the bond markets. we'll update you but greece is front and center as is the fed for wednesday with janet yellen. let's go to "squawk alley" and the gang. >> it's 8:00 a.m. at twitter headquarters in san francisco. 11:00 a.m. on wall street and "squawk alley" is live.

♪ welcome to "squawk alley" for monday morning. today john steinberg of the daily mail north america. with us as always jon fortt, kayla taushi looking snazzy on a day markets are having trouble staying out of the red but climbing off session lows. dow down 133. of course all the major averages in red as we get headline s over the weekend. negotiations regarding greece failed again. bob pisani is on the floor with a look at the movers. >> three to one declining to advancing stocks with no headway