transfats. squawk box begins right now. ♪ >> live from new york where business never sleeps this is squawk box. >> good morning and welcome to squawk box right here on cnbc. i'm andrew ross sorkin. becky is on assignment today. con fwraj lagss to the chicago blackhawks. winning the third stanley cup in six seasons. beating tampa bay 2-0 last night in a game seen on nbc. this is the first time the blackhawks have clenched on home ice since 1938. >> in the meantime let's get down to business. see how the market is setting itself up. yesterday was a bit of a tough day. dow off around 80 points. s&p 500 off by 10 points. nasdaq off about 25 points.

ten year treasury yield edges lower yesterday ahead of the fed meeting that we're going to hear more about in just a little bit. also the situation in greece continuing to weigh on investors and michelle has the latest -- >> no. >> i thought you were just recently in town over there. >> no i'm going when it really matters. the greek prime minister says athens want a viable long-term deal but he says his country faces a deadlock with creditors over his debt restructuring. meantime, greek finance minister is not planning to present a reform propoelz at a group meeting later on this week. his negotiation team was in his words available at any time to find a solution with it's partners. total impasse at this point. greek stocks falling for a third straight session.

greek yields are on the rise as fears of a default continue the two year is above 25%. we're also seeing spill over effects. yields are jumping this morning and spreading out from the german yields as well. so we're seeing a differential among investors as they make choices about the euro. right now it's $1.12. still off the lows we saw earlier in the year but well off the highs as well. >> the short trade on treasuries is getting long in the tooth and some of these hedge fund guys are covering some of the short positions if greece goes the wrong thing flight to quality or does stuff hit the fan.

>> other top stories we're watching today energy traders watching a tropical storm threatening the texas coast. it's expected to hit today. oil prices right now have been around $60 for awhile now. >> gap plans to close 175 of its name sake stores in north america. the retailer is also cutting 250 jobs at its headquaters as it tries to strengthen that struggling brand and courtney reagan sat down with gap ceo and will join us with that exclusive interview in the next half hour. >> got one of those instruments to make you look like it's always three or four days or a week. >> miami vice. >> is that what it is? they were more pastel than

stubble. >> what? >> did they have stubble too? >> yes. >> every day. >> it was a perfect layer of it. >> this is a change for a firm they're working on a new consumer lending kwunt that would offer loans through a website or an app and goldman hopes to be ready to make its first loans by next year. >> they're literally going to be competing not only against lending club but long-term -- >> lending club for now but long-term you can see them go after jp morgan and bank of america and they could end up becoming a consumer brand that lends your mortgage. that's what they could be and right now they're not in that business so they have nothing to disrupt. there's no legacy business they're going to injury. jp morgan bank of america, all

the big banks are not going in this direction in any meaningful way because they'll cannibalize their own business. goldman is saying we're not in this business. >> it was also a technology play as well is this part of the whole dive into silicon rally and present a solution. >> it's a little bit of that. they just hired a guy from discovery that has an expertise in this and also i would say goldman sachs has been ahead of the curve when it comes to technology for a long time. in a different way. not in a consumer tech way but if you look at the internals behind the scenes. >> why would you want to lend money when it's free? >> that's a good question. >> some day it won't be free. >> some day it won't be free. >> don't count on it with these people. >> as goldman would say their business is cyclical and this is cyclical. >> it's certainly a bottom in rates you would think. although we know now in europe -- >> but the other component of it

is unlike the banks they're capturing a different type of spread. what lending club does and what i imagine goldman will do is they're capturing the spread between the investor on one end and the lender on the other. >> right. that's how loans work. >> except that though don't need the same type of margin that even a bank would get. >> because. >> because there's no infrastructure. all it is is a website. there's no people. it's a very. >> why can't everybody else do that? >> they can. there's the brand, the technology, it's a marketing game. >> they won't sell you a 30 year mortgage at 3%. we don't have any of those. >> if you can find an investor on the other end that would do it. >> like your airline seats you get to upgrade on. >> that one is gone on this 300 seat aircraft. >> does lending club -- not

originate but. >> there's lending tree and lending club. lending club puts the investor on one end. >> as opposed to lending tree who is all of these people that want to compete for you. >> that's the case. >> in the meantime other news this morning. sources telling cnbc that fitbit is raising it's ipo range from 16 to $19 a share. the company is expected to price it's offering tomorrow at the midpoint of the new range they would be valued at about $3.7 billion. they're in talks to invest $500 million in snap deal.com. this is coming from the wall street journal saying that the deal could value the company at up to $5 billion. they have also invested in snap deal and then a little bit of news out of verizon. verizon cfo says his company doesn't want to sell the

huffington post. or he says buy dish network. that's lucky for t-mobile. we'll see where those two go and those comments coming at a conference yesterday. verizon agrees to buy aol for $4.4 billion but lots of questions about that brand in particular and the content and then on the other side the future of ariana huffington's participation. >> i thought after that deal got announced it was almost like of course they're going to sell the huffington post. tim armstrong was filling in that morning and he said the biggest winner on this is going to be the huffington post and later it looked like they were for sale. >> i think you can write it down in stone that it's not going to get sold. >> what i don't know is where

her head is or how much it matters where her head in is in all of this. the view was she was going to try to sell it and there was a period prior to the transaction with verizon where it was possible they would spin it out or sell to someone else. >> cfo. the ceo is the one that wanted to sell it. >> the question is whether you think the aol deal is really an ad tech deal or about content. >> would you want to own -- i wouldn't want to own the huffington post if i was verizon. i wouldn't. >> you wouldn't want to own it for the politics. >> right. >> not because you disagree with the politics but why carry the political liability as a technology company or phone company is what you mean? regardless of side of the -- >> are you trying to help me here? >> yes. >> okay if that makes you feel -- if i feel more objective because of that. >> a agree with you on a personal level, okay? >> i know.

every day someone is shredding someone or destroying someone's argument or schooling someone on something. the left wins every fight i've ever seen. >> because they're better than everyone, joe. >> better smarter and care more. >> would you drop your telephone service if you were a verizon customer because of the huffington post. >> no i wouldn't. >> that's like saying you would drop your cable service because one of the channels happens to be a political channel you don't agree with. >> i'm not a fanatic. there's people crazy enough to do it given what passes as news. >> who is a fanatic then? >> if i'm not -- i don't know. i don't want to name names. >> we're clear thinkers. >> you're a fanatic on the left. >> auto news this morning, toyota shareholders approved a new class of stock which will bring in more long-term investors but the change was opposed by foreign funds because

the shares are are readily available in japan. the new shares will be unlisted and must be held for five years. after that an investor can convert them into common stock or have toyota buy them back at issue price. tesla's model 3 will be two different cars. this according to car news magazine reports from a conference in washington. the company wants the model 3 to be a family of vehicles with sedans and cross overs. also honda stopping production of green cars. >> what? you can just get blue now or red? >> i think so. the main reason slow sales or falling gasoline prices. >> it's an ugly color. >> you're right. they'll stop selling versions of its civic. i think they mean environmentaly friendly. >> perhaps. >> you can still get a green

honda. >> and a rechargeable version of the mid size accord but they plan to roll out a new version of the hybrid early next year. all of these predictions were all going to drive diesel. >> that's where that threw a wrench in the works. problem with oil dropping from 100 to 60. >> and there's like four of them or something. >> they were very expensive. >> they were. let's check on the markets this morning. futures after what was a down session yesterday but it didn't really get out of hand a couple of times. it was down i think 150 and then it was down just double digits and it ended down but not out. today though sort of an extension of the lows to the lows and actually below the lows from yesterday indicated down about 83 points. you can blame whomever you want

here certainly the greek situation has something to do with it. the fed is -- we wait for their comments but they're not going to do anything in june. my faith in humanity would be renewed if they just go up a quarter. we'll deal with the 25 basis points. we'll be okay. the world won't end. there's germany and france. all down based on more worries. this guy is taking a hard line. >> defiant is the word. >> i also saw something else the imf, you're supposed to lend money to a country when it gets to a certain percentage. >> it's so out of whack at this point and he's saying i like his moxy. you're pillage in greece you're not letting us get all of these government benefits and entitlements out. >> you want us to retire in our 60s. >> you're not giving us money to pay all of o our people. >> so we can retire early.

>> exactly. >> but you got to hand it to them right? >> asia now also down. you have to attribute some of that to overall anx. it would be interesting to see if it really happen house the whole world handles is it. is greece as big -- >> i don't think so. nobody ever believed they were going to let them go under even today. >> monetary value. >> you're right. >> we looked at oil already. up 17 cents. take a look at the dollar. you got about four days to collapse euro. >> 2.31? ten year which is also moderated in it's rise. there's currency it's 112. already. better than 140 but 105 looked really good for awhile. let's look at gold which is also, about two years we've seen about 1200 or there abouts.

the fed ready to begin a two-day policy setting meeting here now. we used to have a guy that wanted us to say it like leslie. >> i'm flexible. >> can you touch your toes? >> if you want. >> you don't care. >> i like caron. >> i like caron. >> really? >> 406 billion in assets under management. hopefully that's not all on your shoulders. >> no. >> have you heard that some people are covering their shorts in recent sessions? >> the treasury move has been interesting. if we look at it on a year to date basis yields are up marginally. up 14 basis points or so. >> a lot of pain. >> there's been a lot of up and down in the meantime but look it makes sense. we have a risk event. greece as you were talking about. ten year treasury yields will they'll benefit from flight to

quality if things get worse. >> >> it's just unbelievable. >> it could happen. it depends on how things fall out with greece and things like that. if you look at it from a valuation standpoint and the way that we're seeing it today is if you look at where the term is for back end rates, interest rates are expensive right now. they're expensive relative to even their fundamental fair value but there's all of these other factors whether it's qe taking place in japan and jurpeurope or risk situations in greece yields are probably going to rise but they're going to rise at a really slow pace. >> do you think that the entire global growth picture would be up to closer scrutiny if greece left? do you think that would cause us to worry about another slow down? >> i think the way we view

greece is its soaking up all the headlines. >> but if it did happen the actual event itself would you see economic activity less than it would have normally been around the world? >> hard to say. it's a question of contagion. if there's a fair amount and a lot of knock on effects then yes. this is a key point. what the markets don't like is uncertainty. not only do we not like not knowing how greece is going to end up but the uncertainty of the deadlines. the deadlines keep moving. we can't figure out what the risk pressure point is. >> it plays into animal spirits matter in all different markets. >> i mean look the european data has been good for the first half of the year. the second quarter is starting to look brighter. in the second half there's still high hopes for that. if the greece situation plays out then you could get a recovery. >> why december for you? i have also seen recently that

retail sales, the jobs number was, what? 280? the worries about the first quarter being extended into the rest of the year. we supposedly put those to rest. why not september? >> so the first way we have to think about it is what will the fed most likely say? and what the fed wants to do is maintain flexibility for 2014. i think they want to keep the dots, the meeting of the dots at 0.625% which would signal two rate hikes this year but the way that we're thinking about it is why the hurry? why not be certain that it's gotten better before they rush into a situation which maybe they would be sorry that they did. >> nine years. >> what's the difference between september and december? it's three months. when we look back at this two years from now -- >> what's the difference between soar rowand a quarter. >> not very much.

>> so we could. >> once you get started you worry you might have to do it quickly. and if yields are headed back down then the market doesn't get out of control of the fed. >> it's generating the inflation pressures. we have to think about it in terms of the gap. the growth forecast from the fed will be downgraded so in march they had 2015 growth projected at 2.5%. we think that number comes down to 2%. but is that enough to close the gap. even though it seems historically low it's still fast enough to close the output gaps. we have reached an escape velocity but we're still flying at a low altitude. we need to continue to build it

higher so why rush into two moves this year? . i'm not saying that's not what the fed will community. they will communicate that they're going to hike two times this year. >> are you french? >> french canadian. >> do you like hockey? >> big time. >> do you like the blackhawks? >> i'm a boston bruins fan. >> but then they have the cubs. but 306 is too much for one team. >> they're a hugely talented team. you can't get behind. you make one little mistake and it's going to cost you with the blackhawks. very exciting game though. >> when we return the fda expected to announce it's moving toward a total ban on transfats. that story when we return. but first as we head to a break, here's a look at this date in

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welcome back to squawk box. nbc learned that the fda is moving toward a total ban on transfats and it's an ingredient found in so many of the foods that americans eat at home and restaurants and it's been the link to clogged arteries and heart attacks. joe do you have your mike on right now? you're getting up and getting down. >> going right back to break. >> we're going to go to break. the only comment i was going to make on this is whether trans fats are good for you years from now. >> i don't think that you eat them and explode. figuratively or literally. if i want a trans fat in a cupcake and i want to eat one cupcake i'd like to be able to eat it without hearing from the first lady. >> okay but i wanted to go to you? what do you think? mcdonald's -- >> i think carbs are bad.

>> we should ban them then. driving causes deaths. we should eliminate cars. >> carbs, this is fats. >> i'm going to carbs. i'm going to what i know is bad for you. >> if you eat too many of them. or if you wrong the kind of them. >> i know right. >> don't talk to me about fat sorkin, you're young. >> charitable giving in the u.s. continues to rise. donations by americans hitting a record 358 billion last year. we'll have the details next. first a look at yesterday's s&p 500 winners and losers. ♪

you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.

♪ >> do you like that? your name in lights. >> right here. >> this is an out rage. did you see this colorado store? they have to get their act together. federal law is still it's illegal but it's legal in colorado so this guy isn't even a stoner. he's a quadraplegic who uses medical marijuana so does a drug test for thc.

wasn't smoking at work. it stays in your bloodstream for like months or whatever. he gets fired because of medical marijuana even though he wasn't -- no evidence he was smoking at the job. >> or impaired. >> it could have been a month ago when they tested him for it and it's legal in colorado but still not legal federal so i hope this goes higher. this is colorado supreme court. they upheld that he was fired legitimately. >> the deal is if you're a federal employee you can. >> he wasn't a federal employee. he was just an employee. >> government employee? >>. >> i don't know. but it's a federal law in the united states. so the state law in colorado

doesn't supersede that it's still illegal federally. >> can a private employer say -- >> this is what's happening and it's medical marijuana but the private employer i think there's -- do you think it's normal for a private employer to say if you're doing something legal in the state of colorado -- not at work -- not even the night before or the week before. >> get establish complicated. >> no it's not come my kated. this has got to be square addway somehow. this has to be fixed because it's messed up because of the federal versus the state law. >> medical and loses his job and now the colorado supreme courtsides with the -- i don't know, i get mixed up. >> can we talk briefly about hank greenburg. >> you saw the decision yesterday. >> i must. >> i thought it was outrageous. i mean happy that they did not

award him any money but in the end, to even suggest that the takeover of aig was effectively illegal and was inappropriate the outcome for the rest of the country would have been crazy and the judge seems to be upset somehow that the government in it's pursuit of the takeover to help all of us somehow decides that they're going to make 79% of the company. >> the law is the law here too. because of the circumstances the rest of us are going to be helped. >> but the exappropriation of private proper city incredibly high. >> and there was a board of directors that approved this deal. but this is like claiming that every loan sharp out there, you running out of money, you go to one of the places where somehow they're controlling you. they're not controlling you. you get the loan and decide you're taking the loan.

was it a tough loan? yes. but that's what the business is. >> the judges job is to decide on how the law. >> even other judge. >> even the one in colorado. >> but every other judge that looked at versions of this case threw the case out on its face. >> i thought greenburg's case was -- and you read about it in something other than that paper, you read about it in the wall street journal. the take was that he had a great case. >> yeah. >> >> it's the government -- >> the company is going under. nobody wants to help them. the only people that can help them were the taxpayers. the u.s. government tried to get a good deal and i would argue actually did get a good deal. >> they made a profit. >> but at the time they made the deal most people were actually making side bets saying that all the taxpayers were going to lose

their shirts. this was not on easy deal to make. it wasn't clear that somehow they were ripping it off. >> i hope this leads to the process about how things will go down. >> oh, no we have a whole new process of too big to fail. >> i have any own question about whether dod frank will work but i'm saying you put this decision together and you think to yourself if you're a bank you're going to help another bank no and if you're a government are you going to help one of these institutions, no. >> can we talk about something happier? charitable giving. >> even though it was a victory. >> you looked up how to pronounce that. >> because it's a funeral pyer.

>> and there's pyrex. >> which. >> charitable giving regained the levels before the financial crisis. >> it's the least they can do. >> you know why, listen to this half of individual giving in the country comes from only 4% of the population. >> well should be. that's fine but we ought to be taxing those 4% into oblivion. >> so that way they can't give it to charity, right? >> did you see the other really horrific story that had me shaking my head? millionaires increasing all around the globe. >> yeah. >> it can't be right. >> no not when there's only so much money to go around. >> these are all hopefully congress -- >> they are the creators of inequality. >> they are. and perpetrators. they should be in jail too. >> do you miss becky? >> i'm out numbered.

so i'm going to zip it. coming up when we come back thought the gop contender field was crowded. you have not seen anything yet. jeb bush joining the race yesterday and donald trump saying he has a big announcement today. we have morning money's ben white. he's going to join us in just a moment to break it all down. >> this cnbc program is sponsored by hyundai. in the us, three in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus?

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>> under armour will create a new class of stock. it will have no voting rights and will be traded on in nyse and under armour shareholders will get one share of the new stock for every share they own acting as a two for one stock

split. tomorrow shareholder ron barron will be our special guest. 7:00 a.m. eastern time. to talk about this move. >> among the other stories that are front and center this morning, a merger scramble in the health care industry. united health and anthem looking to buy stronger rivals. shares on cigna on reports it's rebuffed take over by anthem. we have a situation going back and forth. all of these stocks are near their all time highs if not at their all time highs. the question will be who eats who effectively and this comes after revenues have surged across the board. profits have surged across the board they'll have to merge in a post obamacare world. >> there you have it. >> we'll keep an eye out and see what happens. >> jeb bush announcing his bid to become republican nominee for president. >> our country is on a very bad course and the question is what are we going to do about it?

the question for me is what am i going to do about it? and i have decided i'm a candidate for president of the united states of america. [ applause ] >> joining us now to talk about what this means for the 2016 race is ben white. he's the chief economic correspondent for politico. of course also a cnbc contributor. not only are we hearing from jeb bush today but we have another one on the way. >> i love a guy that announces for president by telling us how much money he has. a beautiful thing for america. >> that's what we're going to hear this afternoon supposedly. >> you prefer a democratic candidate that we have no idea how much she is worth. even though carly fiorina said she had 49 million. >> i think we have some idea. >> i think we have some idea. it's probably triple digits. >> definitely triple digits.

>> that doesn't mean she can't be a champion for -- that's the latest version. >> might be a little tough so donald trump is in. jeb bush has a better shot. >> what did you make the announcement. >> it was optimistic. hopeful, forward looking. when he got heckled on the question of legal status he said i'm going to address this issue through an act of congress. might make it a little tough in the primaries for him on immigration but ultimately it's a benefit. he is saying i'm going to run on my ideas. >> we saw a number of -- you talked about it this morning in your piece a number of wall street titans if you will coming out to support him. >> right. >> so if you look at sort of the money behind all of these guys how far ahead is jeb bush relative to everybody else at this point? >> we'll find out next month. july 15th he'll have to release the super pack money. it will be close to 100 million. he has four different committees

raising money. it's going to be a lot. he'll be ahead by tens of millions but guys like marco rubio that i think is the strongest challenger will have billionaire money behind them too and super packs that are well funded. bush will have a money advantage but not the massive advantages and he reflected that. >> who is out. we're going to find out who is out because they won't be part of the debate. who is not going to be part of the debate? >> bobby jindel. trump. trump polls well so he could get in. >> we talked about this last time. ultimately she probably gets in but donald trump could get in too because he has the name i.d. a lot of people like him so he might get in. >> what do you think about her getting thrown out on the ticket. >> she is a well liked senator. the republicans realize they'll

be running against history and hillary clinton having a woman on the ticket would be helpful to them. it's not just symbolic though. she's a strong contender for that job. >> high school classmate of mine. >> really? >> you have connections everywhere. >> the iowa -- so bernie sanders might win iowa? >> he's closer. he's within 20 points of hillary clinton. i doubt that he'll win iowa but it shows you that the liberal base is not satisfied with her. they don't believe she speaks for the common people partly because of her ties to wall street and partly because of all the money. if she wants to take that base away she needs to be stronger on trade and wall street reform and i don't know how much she wants to do that. >> can she win without doing that? >> she can can and she probably will but it will make it harder. >> it will also make it harder for her to play later. >> it will. although i don't know what to extent. >> bashing wall street works across the board and will help

her even in the general. trade is more complicated. >> she is a very difficult position. she fought for it and she said on the tpa question it's a process issue but i'm interested in tpp and what's in it. she has given an answer on this that makes no sense and she'll have to be more specific on the trade deals what happens? >> they'll work harder to get it back. they're giving up voting again today. they'll try to attach it to other people. something that must pass to get tpa done but my guess is that it doesn't. >> the two presumed contenders on either side democrats or republicans, clinton, bush both very weak starts. they both have to relaunch essentially their campaigns.

it shows what? >> a tiredness with the names we have seen before and i think neither of them -- hillary clinton is not a terrific political candidate. she may be a good leader and effective person in government but not that great of a campaigner. bush i think, just didn't have a strong start and it was to be expected because a lot of his positions were not those of the conservative base. >> you have a real turn out problem on both ends. >> you probably do which is why they want to play hard for women and minorities which will be tough if there's a bush and rubio on the ticket speaking fluent spanish so you would have a turn out problem with both of those and that's why you see the clinton campaign looking to try and resurrect it which is hard because she's not obama. >> they have to come out because they want to block that and on

the flip side are there republicans that look at the clinton name and say i can't do it. i may not be excited about jeb bush but i can't have that happen. >> i think the politics cancel themselves out in that front. there's enough anticlinton and antibush people to come out they'll cancel each other out. both of those candidates are counting on that happening. >> whether the republicans learned their lesson with the primary because push could appeal to a lot of independents. it does a lot of independents and some of those are the ones that just have progressive fatigue. watching what happened over the past 8 years it's just fatigue and they could go for bush regardless. people thought it was the same sign --

>> it's mike murphy. you remember lamar alexander. >> we had him on here and he was classic when he was here too. it's like baghdad bob. there's nobody that questions the honesty of -- really. he said no polls that worry about corruption. >> that's untrue. the polls show that she has a real problem on that front. >> but with the straight face. that's what a good operative is doing but for jeb bush it's maybe lose iowa. momentum in new hampshire and then the money comes into play and the we want to win comes into play. that's my call. >> all right. morning money. >> thank you for being here. >> coming up cap management meeting with investors. first the retailer ceo sits down for an exclusive interview. that conversation is next. shares of gap down about 7%. stay tuned. squawk box will be right back. when you're not confident you have complete visibility into your business,

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gap making some big announcements ahead of its investor meeting today. closing stores cutting jobs. shares are up on the news this morning. higher by a little more than 1%. courtney reagan speaking with the ceo exclusively. >> good morning to you. i covered a lot of ground with art peck in his first television

interview as gap ceo. and the first for a sitting gap ceo on cnbc in nine years. i sat down with him after the announcement they will lay off employees closing 26% of north american stores over the next several years. here's what he had to say about that difficult decision. >> a lot of reasons for being decisive on this decision really to take complexity out of the work he and his team were doing. and by these decisions today i think we streamline the organization and we frankly eliminated some of the complexity in the fleet that wasn't getting us very far to get us back to a fleet that we're proud of and can do business in front of our customers. i'm confident we're at the right size fleet. if you look across the locations, the centers, the street front locations, i feel like we now have stores that have the best real estate in

north america. and that's where we want to be with a grand like gap. >> but even while the company is closing stores gap evaluates its real estate portfolio each quarter. i had to ask if there's anything for the soon to be vacant flagship toys r us in times square. he says they're all looking at good real estate. coming up at 8:15 we'll have more of my interview with art peck on where he intends to find growth for the company going forward. back to you guys. >> what do they do here? to this day i associate them with khakis. that's it. >> you know -- and they don't -- see, gap doesn't mind you have that association with khakis. but they'll tell you it's americana, it's optimistic. and i do see some of that in the collection. i think some of the issues of course, is they didn't get the product right. that they were really up against a tough competitive set we've

talked about. we talked about that. art peck was very straightforward in everything. there's a lot to get through throughout the rest of the day. >> terrific. all right. thanks. courtney getting up early in san francisco. coming up this morning's top stories including a tropical storm threatening the texas coast. the energy markets are on high alert as a result. and we'll watch j.p. pritzker as guest host. let's check the futures. stay tuned. "squawk box" will be right back. ah! aflac? aflac! i thought you said this guy was the best? oh, he's a horrible stylist.

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markets on fed watch. the much-anticipated meeting kicks off today. the cuban thaw is on. but how long until americans can travel freely. we're going to talk ahead of a policy group that wants to -- the company announcing layoffs and store closings. cnbc's exclusive interview with the ceo as the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" here on cnbc first in business

worldwide. i am joe kernen along with andrew ross sorkin and michelle caruso-cabrera. becky quick is off today not because of tampa bay or anything like that although we'll be inundated with blackhawk stuff in just a second. take a look at equity futures which most people would after the weakness we've seen would be in a depressed mood. but you're just riding high aren't you? look at you. look at you, j.b. prytzitzker. blackhawks fan. >> blackhawk nation. >> we're going to take a shot eventually. there it is. >> a true hockey fan. that's almost a -- what do they call it? that's almost an abundance of riches. >> you know how many years before that we didn't have one? >> and i said if it helps you deal with the cubs in that sort of legacy -- >> cubs are going okay.

they'd make the playoffs if they stopped right now. >> people have been in analysis for years because of the cubs in chicago. >> it's true. i've only been there for 30 years rooting for them. i know there are people who spent a lifetime. >> you got to love just how good the blackhawks -- i got to admit. i thought tampa bay, watching what they did to the rangers, they were good. and it wasn't even really that close really, was it? and they came back when they had to. pretty exciting. i can't believe i watched it. nbc, we're happy. suddenly hockey the ratings are unbelievable for hockey. >> well the fact the hawks were able to win it at home and the fact that chicago handled it so well after a lot of cities don't handle victories like that at home as well as chicago did. it was quite a night. my kids got to go to the game. >> you weren't at the game? >> he had to be on tv here in the morning. >> for us? >> you're not the only reason but yeah. >> wow. >> what time was the game over?

>> late. >> it was late yeah. >> j.p. pritzker can't get here by the morning. that's b.s. >> you know the flights are hourly. >> the last flight out of chicago is very late. >> last movie you saw on a commercial flight was "sound of music." >> you're going to keep that on the entire show or whole day? >> if it's bothering you, i might keep it on the whole time. >> thank you sir. >> i like that. that's good. start on him. that's good. >> let's talk about today's top stories at this hour. more volatility in crude prices. watching a tropical storm threatening the texas coast expectsed to hit today. also in corporate news fitbit raising to $19 per share. that's up from the biggest range of $14 to $16 a piece. then at the mid-point of that fitbit valued.

also gap inc. is now closing a quarter of its stores in northern america. courtney reagan spoke to art peck in his first tv interview as gap's ceo. >> by these decisions today i think we streamline the organization. and we frankly eliminated some of the complexity in the fleet that wasn't getting us very far. >> we've got more of that from courtney the the next hour. the fed kicks off a two-day meeting this morning. that means we have the exclusive results of the cnbc fed survey. steve leisman joins us. he has the highlights. steve? >> thanks very much. it's the cnbc fed survey on day one of the fed meeting. what we're hearing is that this meeting is about the rate hike. the first thing we did in our survey, 39 respondents, try to separate people into the 2015ers and 2016ers. 92% of our group expects the fed

to hike this year. i thought it was more even out there. in fact it's up where it was ahead of the april survey. let's go to the timeline here. it's pretty much the same. it's september where it was in the april survey and now it's september as well. my guess is there was a bit of a weak first quarter then we had some of the better data for the second quarter. they did push ahead when the balance sheet is going to decline. right around -- what was that? february, april, february march to may of this year to right now may of 2016. sorry, july 2016. moving on here when they think they'll hit the terminal rate it'll be 2.85. now above 3%. first quarter of 2018.

here's the path that we had. remember back in september which is right around a year ago, we're coming up on a year ago. we thought it would be a full hundred basis points in the end of this year. now we're thinking just 50 basis points. so half of the expectation over that time. same thing happened for the forecast for 2016. we thought it'd be above 2% back in september 2014. now we're thinking only 1.5% which is up only from the prior survey. says the june fmoc meeting will be all about preparing the ground for a post-summer rate hike. one of our respondents says the fed is going to hike but we think the markets will be resilient and continue to grow. we'll have more coming up at 8:30 on what this group thinks about the economic outlook and the outlook for stocks and bonds at 8:30. >> all right. thanks. joining us now to discuss the impact of the rate hike and a lot of other topics.

our guest host for the next hour is j.p. pritzker. managing partner of the pritzker group. three in six is the beginnings of a dynasty, i would say. >> we could use something like that. >> but when i talk to you now, and you were on not too long ago as guest host. glad you're back. got bitten by the bug. you reach the right people when you're on this show. it's kind of cool being on the ground floor studio. happy to have here. >> happy to wear the blackhawks jersey in front of new yorkers as champion. yep. >> you aren't just real estate because of the pritzker family but you're venture capital at this point. and tech and also just someone that is looking at the current situation in chicago, you know the second city. it's a place that has all of the same concerns that the rest of the country has about job creation innovation technology, private sector versus public.

all of these things and you've got a mayor that seems to have a good appreciation of that as well. so we're going to talk to -- you're going to be an expert on all these things i mentioned. can you handle that? >> no. i'm going to have to study up. i'll be back. >> what should we talk about first? just the overall business climate and how to attract talent and business and technology to chicago and your efforts there? >> yeah. first i should say it's the capital of the center of the country. so we're number one in chicago. clearly from last night, you can see that. >> just in terms of midwest sensibility -- i'm with you on the difference between the midwest and manhattan. so you've got -- you know you had me at hello with that. okay? but -- so go on. >> don't look at michelle when you say things like that. >> she's from new hampshire. >> what does that mean? >> live free or die. >> that's right. >> try the big bold in new

hampshire see how people react. >> around chicago, of course is the entire industrial economy. i mean we're where we live and die by it. i have to say significant improvement over the last couple of years as you know in the industrial economy. it's something we spend a lot of time looking at. not just on technology side. because technology is digital. entering the factory floor which is pretty important development in the united states. most of, in fact the companies that we're invested in are companies that are keeping up with and beating foreign competitors who are doing it with low cost labor. we're trying to do it with technology and high productivity. so you're going to see continued resurgence of the industrial economy. that helps chicago and the entire midwest. we've spent a lot of time in minneapolis and st. louis and cincinnati and cities around there. and what we're finding is an

optimism stable floor underneath the economy, people feeling like, you know jobs are coming back though slower than anybody wants. and so the hope is that that will be a basis for a continued resurgence. >> i wonder why businesses have seem to have been doing better than gdp numbers for six years or so. i wonder how long that can continue. i wonder if that has to do with not -- wages -- increases in wages being hard to come by and getting more from less. you can't do that forever, obviously. >> no you can't. it is why you hear in the political sphere the discussion about the fact that people who are at the bottom who are working but working at relatively low wages need some help. >> the question is do you do that through legislation or do it through growth? because growth it will come as the labor force gets smaller and

as you want one company values a company more than another, that's the natural -- that's the organic way of doing it. and it does work eventually but we've been stuck at 2% for years. >> i think eventually is the right word. the problem is it takes so long for the folk who is are earning minimum wage to finally see a little bit of a rise in minimum wage that it takes a nudge, i think, from government. and you're going to see it. i think you've seen it city by city. you're going to see it on a national level. and i think it's well you know overdue as to what level you want set that at. it shouldn't be one that's, you know, abnormally high. everybody's got to work with it. small business is impacted significantly by it. you talk about it like it's the margin margin. if you're earning minimum wage -- >> it'd be much better to do it so that all wages across the spectrum. >> indeed. we should be doing it all at the same time. should be about economic growth

and helping those at the bottom -- >> what about creating jobs in minimum wage hurts growth? >> listen if it's done gradually, it can be absorbed. and we've got workers in a variety of capacities across our companies. some that are in the lower end. but -- >> it doesn't actually on an individual basis, it doesn't actually matter if it's gradual. they end up being priced out of the market. their minimum wage becomes zero because they can't get a job. >> you make it sound like there's only one arena in which to hep pull on the oar here. you've got to do it with stem education, education overall, with focus on -- >> yeah but 15 20 year project meaning you're not going to get -- you're just not going to get there. it's not you can somehow fix the education system while doing this at the same time. you can do it at the same time but you're not going to see the

effects of it. >> listen, these things are -- you make it sound like -- there's nothing something you can do on one day or one month that's going to fix all the problems. you are going to do is raise minimum wage by some, you're going to invest in stem education. i agree. listen, i have a focus on early childhood education. that takes 18 or 20 years to have a real effect. but we've got to do it. >> what's the most important thing right now that you're looking at technological solutions that effectively replace workers on the low end? >> yeah i think the answer is you're always looking at increasing productivity of the workers that work for you now. and it's true that technology has an impact on jobs overall. >> i was thinking mcdonald's, applebees, whatever you're going to be going into these restaurants and you'll be ordering on an ipad. that's going to take one or two people out of every restaurant. >> don't forget mcdonald's are employeeing the people who are writing the apps that allows you

to do that. they're not just employing those with that are flipping burgers. >> and by the way, for the 10 or 20 people who will build the app, they're going to take 500, 1,000 or more people out of the system. right? >> you're describing a world in which that super cycle people have written about is right upon us. this has been talked about every 20 years, i think, in the united states. >> luddites. >> you're not calling andrew a luddite, are you? >> yes, he is. >> for only the first time today. >> i'm more of a luddite in terms of technology. i call him a mallthusian. >> that is such a great insult isn't it? >> none of it has come to pass in fact. >> no i think he's -- but he's rightfully concerned. we do have to be focused on what

is going to happen on the low end. >> there was a lot of pain that filtered through that entire industry. and with what we were talking about with the luddites. the first machines that put all those people out of business that were -- >> i, by the way, just to be clear am not an advocate at all that somehow slowing down the tech knowledgenological march that will put people out of work. >> it's an old argument that normally takes care of itself. it's not different this time. >> if we had women switching telephones everybody in america would be. we absorbed all those. >> how it's going to change the employment picture. i'm saying there are implications and we're coming to a tipping point that's different -- >> i disagree. we always think that. we thought that always. >> discussed about every time.

>> i'm still worried people in the photo mats. they go to work early in the morning. people come, drop the film off. then set around and come back. >> what's going to happen when the invented a keurig coffee machine machine? don't have to go to starbucks. coming up we'll continue some of this conversation. also the president of a policy to open cuba to trade and travel. we're going to give you a sneak peek on that. and then next how markets are getting ready for tomorrow's fed meeting. stick around. "squawk box" returns in a moment. 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.

engage cuba is a bipartisan public policy organization dedicated to mobilizing the ongoing u.s./cuba normalization process. they have launched a new tv ad calling for an end to bans on trade and travel to cuba. >> guess what. americans are allowed to travel to north korea. it'll take 25 hours, but you can

go. if you want to. but americans can't book a flight to cuba. it's actually against the law. and for u.s. businesses another no. because government trade restrictions stop american companies from competing. it's been over 50 years. isn't it time for a change? >> joining us now with more james williams president of engage cuba. good to have you here mr. williams. >> thanks for having me. >> tell us about this campaign. how much are you spending? what do you plan to achieve? >> we've had a policy for 54 years of isolation that has failed. i think under any measure we know this policy needs to change. we know it will. it's inevitable. our goal with this campaign is to get started by the private sector to speed up history. >> how much money are you spending? >> so we're starting the campaign airing on three networks and we'll see where it goes. it's going to be part of the continued advocacy -- >> clearly doesn't want to tell

me how much. we should say full disclosure one of those networks is cnbc correct? >> that's correct. >> okay great. what districts are you targeting? i assume you're going after areas where you think you can get a senator or a representative to move on a vote? >> yeah. you know we think that the american people are ahead of where the congress is on this shwe issue is right now. we're airing largely in washington. we'll see how this evolves in the next few weeks. >> if you want to end the travel and trade ban, there's nothing left of the embargo. you're calling for an end to the em bar gobargo embargo. is there anything left? >> it depends. we're sighing we're nottest entered in the debate about the democracy program and other issues i think are still contentious and deserve a full debate. we can all agree that travel and trade restrictions need to be lifted. >> i'm confused. when it comes to democracy

programs, you don't want to talk about them you do support them you don't support them. >> we want it to be on the ability to trade freely travel freely, and give the opportunity for americans to compete. >> in the press release you sent out you're involved with cargill, caterpillar, choice hotels. are they donors? are they helping you with this campaign? >> many of them are and a lot more. part of our strategy to roll this out. and so you'll be seeing an increased amount of names generated from this. >> what kind of numbers do you think could occur when it comes to trade with cuba? we should point out to people that right now if you sell agriculture products, if you sell food if you sell medicines, you can do business with cuba right now if they were willing to purchase. >> correct. >> but if it goes away completely, how much money would it generate? >> we cite the peterson study

which estimates $5.9 billion for exports goods and services. >> how much are you assuming cuba itself has to change? when i read for example, there's a great piece out of brookings. and the rest of the world has been able to do business with cuba for the last 50 years and they estimate at the most there's been 3.5 billion in foreign direct investment. that's not because of the embargo. it's because of the difficulties of doing business in cuba because of the cuban government. how much do you think they're really changing at this point? >> that's a great question and the reality is you know we don't know the full answer of how much they're going to change. you know our focus is not holding american companies and people back. those are challenging issues that have to get worked through. >> i want to bring j.b. into the

conversation. would you go into business in cuba right now? >> sure. you've got to remember this is an economy that hasn't been touched by the united states in so many years. i have not been into cuba. i'm interested in k finding the right locations for the right businesses. right off the shore we have this tremendous resource that has been left untouched for so long. now, we've been beaten to it by the europeans which is one reason why it's time for the u.s. to go in. >> you haven't gone down there yet. it's on your list, but how high on your list? >> i'm not making decisions about whether we're going to actually put the hotels in there, but i will say the opportunity to sell goods and to trade is going to i believe, have the effect of these democracy programs. this is what we do around the world, right? >> that's certainly the contention of the obama administration. when you say the europeans are beating us to it it's very very overstated. i think you'll see that when you

go. but mr. williams thanks so much. any last word here based on what mr. pritzker just said? >> if you want to come to cuba we'll be happy to take you. >> you want to go commercial? >> i'm looking forward to it. thank you. >> thanks for having me. >> thanks for coming on. >> we've had on a billionaire on before who said he couldn't go yet to cuba because they wouldn't let him land a jet. he's dying to go the minute they'll let him land the jet he'll go. >> but when beyonce and jay z went -- >> maybe they had better connections. >> we'll look into that. coming up our top headlines. coming up.

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.

welcome back to "squawk box." facebook launching a stand alone app that groups photos. the app is called moments. using facial recognition to identify which of your friends are in the photo. you can share them with those friends and they can share them with you. this comes after google released

its new service that does a similar thing. but we do have a story that's a little scarier this morning. for those in digital land. a secure password service has been hacked. this is like the worst thing that could happen to a company like this. it's called lastpass. hackers may have obtained some users' information including e-mail addresses and password reminders from its system. no passwords were compromised, but here's the trick. the service lets customers use a single master password to log into lastpass. then it will log you into all the other websites with different passwords. i thought i would use this. but of course if that one password is hacked everything could get hacked. in this case it did not, but demonstrates the risks. >> anybody who solves the password or too much mail in the inbox deserves a nobel prize.

>> critical for these kinds. you're going to have these apps out there. one called keeper does the similar thing. absolutely has security all around enit and they're very concerned about keeping your passwords to you and nobody else. i actually don't think it's -- it's scary this one got hacked. i think it's a message to consumers. pick carefully. >> all right. >> no concern? >> no. i sort of -- >> people have won nobel prizes for less. >> i have one password. no one knows my birthday. you know? >> or your high school mascot. coming up futures coming off the lows from this morning which is interesting. now down just 36. remember it looked like we were going to go to some new lows from yesterday midday yesterday. but now add that into yesterday, we're down about 140 total.

but 37 today. >> the greek prime minister is about to address parliament or his mps. >> maybe that's it. anyway we're going to talk markets. tomorrow's big fed announcement with david bianco from deutsche bank.

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♪ welcome back to "squawk box." among the stories front and center today, saudi prince alwaleed had to do with the magazine reporting on his fortune. he claimed was billions of dollars larger than the magazine had estimated at the time. i remember that well. he was upset. u.p.s. is reportedly telling dozens of retailers it plans to do away with big discounts on oversized packages this holiday season. and for some year round. "the wall street journal" says the move could leave consumers

absorbing more of the shipping charges. and etsy is ready to test a crowd funding venture. it will let's online sellers raise money to manufacture new products. going back to that settlement, says it was done on mutually agreeable terms. nobody says what the terms were. what do you think really happened? >> i doubt -- it wasn't about the money. right? well, it was about the money, but i don't think the prince cares whether, you know -- >> didn't donald trump also sue because somebody accused him of not being a billionaire. >> that was about ten years ago. >> right. it's so funny because there are people who work very hard to make it difficult to get listed. >> they don't want anybody to know. >> j.b. is hiding over there. he doesn't want us to bring this up. you can't even get hockey seats. they're priced out of your range. >> flying commercial. >> i honestly don't know how they come up with the number frankly, most of the holdings of most of the people on forbes 400

are private. so they really have no idea. and i think donald trump and others count on that. >> since you know do you think the numbers are inflated for the most part or underreported? >> i think they don't really know how to calculate these things so they're all over the map. i honestly think there are people who are joefrovervalued and undervalued. unless most of your holdings like mark zuckerberg -- >> publicly traded company. >> yeah. other than that, how do they know? how much equity does donald trump own in each property that has his name on it? you don't know. that's where i don't think on a -- unless people are feeding them information, they just don't know. >> can you at least confirm the rich really are different? can you give me a nod on that. they are, right? >> rich. let me say this.

>> i wasn't talking about you individually. you know people right? >> but you are asking him to speak for his, you know class. >> i know a few people who fit in the category that you're describing. and i would describe them as having just as many problems as everybody else. >> that's true. >> some cases more. in the meantime let's check out the markets. we had v a busy week coming up. reading up more on what investors should expect here with us now on the set is david bianco. chief u.s. equity strategist at deutsche bank. you predicted we are going to have a real pullback this year. >> yes. i think that's in progress right now. during the summer the market pulls back something between 5% to 9%. >> but not 10%. it's not a official recession. >> a correction. if you look at history, i think it would show you that typically

the market does dip almost every year. and especially around fed hikes. but corrections usually don't occur when inflation is low and prospects are still encouraging. i think we're going to get turbulence. i think it is likely going to be a dip to buy. i like banks, but there are a lot of cyclicals i'm cautious on. >> so you're hanging on a fed rate hike not necessarily greece. or is greece in there? >> the two issues we're watching, i feel like we're continually talking about greece and fed. because the s&p has very little -- no profits out of greece. but it still has a good 15-plus percent of profits from europe. and if it falls another close to parity with the dollar it will knock a couple off of the invested earnings. no growth in earnings this year. so the risk to the s&p is euro currency, not greece. i think the dollar can appreciate this summer against the euro.

i think long-term yields keep climbing as the fed has us guessing a little bit. >> i know you hate -- but positioning yourself ahead of this pseudocorrection, are you telling people to put money in cash waiting for this buying opportunity? or are you playing some defensive opportunity? >> anybody can only be as tactical as they're capable of being. for those professional tactical investors, yes, raise cash. and what we're advising for the summer, stick with the strength of health care and tech. add to banks. still no time to buy industrials. >> what's the effect of oil prices on your estimate? >> this is one of these things when it comes to the s&p profits, we've been very confident in the idea that weak oil prices -- it's hit the energy sector hard. it's pulled back u.s. investment spending when on the industrial sector. as time goes on we expect even better retail spending. and what we do think is in the

economy is better service spending including health care. which is why you see good jobs creation and why we think the fed hikes this year. but the oil prices have weighed on u.s. investment spending a lot. don't underestimate how weak things are on the commodity complex, industrial complex. this is why we're cautious on earnings, but i do think the fed hikes given a market. >> even at $60? >> $60 is organizebly a sweet -- no, i'd say $80 is a sweet spot. really this is a still on environment where it's putting pressure on -- we're seeing pullbacks and firings in the cap x still. >> so you wouldn't put any more to work in that sector. >> i think it's not a cyclical adjustment. lots to be celebrated here. but the whole space has to get accustomed accustomed. i think you're going to have time to buy these stocks. i wouldn't rush. >> thank you.

we're going to leave it there. in the meantime we've got to switch gears. kate kelly joins us from austin texas. >> hey andrew. thanks so much i'm standing in austin in front of the texas state capitol where lawmakers have just laid the legal groundwork for establishing the first state-owned gold and precious metals vault in the u.s. the depository signed into law by governor greg abbott will allow people to store gold silver, other precious metals here in a state-owned facility that will have certain protections that others don't at what officials hope will be competitive rates. i spoke yesterday to dallas area legislator giovanni, the sponsor of the bill. he described his goals. >> what usually happens in any sort of down faul -- potential downfall is people start to lose faith. and we saw that in 2008 when we saw massive outflows of capital

all over the country and out of our system. so what i think this does is it creates another option. and i think that alone ends up improving consumer confidence. >> in other words, the federal government under the tenth amendment, texas believes will not be able to confiscate gold in any cases as it did in 1933 in the throes of the depression. the other thing is people will be able to write checks backed by gold and silver. those are two things they're working on. in me meantime they're trying to establish. they're also looking for sites around the state possibly a pre-existing vault, something newly built. that needs to take place before they can go further. down the road they're hoping to lure back some $1 billion in gold physically owned by the state university endowment here and others. and they're also hoping to get a membership and even possibly to have a jpmorgan chase or another

major bank establish a gold card that will be backed by gold and allow people to transact in that as a currency. >> only in texas. kate, thank you very much. we should say speaking of commodities this morning kate's book about this book "the secret club that runs the world," her book out in paperback today. check out amazon or go to your local bookstore to pick up a copy. i have read it and it is worth grabbing. >> excellent. i bought it. it's on the desk. >> read it. >> is this to compete with banks so you don't store your gold in a bank? you store it right in texas. >> right in texas. only in texas. coming up is a grexit coming? we'll lay out the options that greece still has on the table and tell you what's holding back a deal. right after this.

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time is running out for greece as the country inches

closer to economic disaster. mario draghi saying quote, the ball lies squarely in the camp of the greek government to take the necessary steps. he's one of many saying that in the past couple days. tsipras speaking right now. meanwhile we're joined by chairman of international capital strategies. good to have you here. i'm read on twitter the very beginnings of what he's saying. we can't judge the voracity of all these, but what i'm seeing is that the tone that he's got right now in the parliament is not conciliatory surprise surprise. we are we right now? how close to disaster are we when it comes to greece? >> i think we're pretty close to disaster. tough define it in certain ways. i don't expect conciliation to come out of his lips. that would be a huge shift in tone. i don't think we're going to see it this morning. where are we? from all of the talk of what could happen what a deal could

look like and let's be clear. there's a rational outcome here that's pretty if each party were to come to the table and try to make it happen. but a lot of this requires some preparatory work. the time for that work is way behind us now. even if a political deal were able to be struck my big concern is time's already run out. confidence in the banking sector has been lost the ability to get the european parliamentary has been lost. the imf is way beyond contributing money at this point. they've run out of time from a technical matter. they might be able to get a short-term political fix if they wanted to. but i don't think they want to at this point. this is a real game of chicken. >> when you say they're out of time, time for what? the catalyst for the next stage of the crisis that pushes them to capital controls or to some more dire situation is what? is it not paying the imf on the 30th? is it -- something's got to -- because right now we're just at an impasse. people saying you go first, no you go first. >> yeah i think the problem

here is everybody sees that it is coming and everybody sees nobody's got the foot off the accelerator. but no one wants to push them over the cliff. so i think the talk yesterday that you heard about a possibility of take it or leave it deal followed by an emergency leader summit followed by the imposition of capital controls was an attempt in my view to take the political pressure off of the ecb from being the bad guy here. because the ecb as you said in your earlier story with draghi they don't want to be the political actor here that pushes the button that pushes greece over the edge. the problem is the catalyst that really is likely to be the live or die in terms of capital controls and the health of the economy if there is such a thing is going to come from a statement by the ecb. that the emergency lending authority that they have been living off of day to day or that the collateral they've been using to fund that some is not sufficient to allow them to continue as they have.

that's likely to come from the ecb. but nobody wants it to be the ecb's political responsibility. the catalyst is either going to be a bold statement by tsipras, we're out, which i don't expect. or some drip feed through the banking system of there's not enough money and that spurs capital controls bank runs, all the stuff nobody wants to see. >> does that necessarily mean they leave the euro? i know a lot of people explode on that question. it's assumed they go to capital controls maybe there's something. but did not leave the euro. >> right, i don't think it's automatic they're out of the euro. but als think it's a lousy analogy to draw with greece and cyprus. if greece does it will be because they will not be able to agree on a program. so the risk of a messy uncontrolled and quite frankly

very volatile capital control trajectory into the abyss is much greater in the case of greece. but i don't think this political will either in greece where the poll shows two-thirds of all voters don't want to leave the euro for grease to leave. the question is if you impose a new currency ious whatever you want to call it. does that mean you're on the path to or you've already stepped into grexit? i would say there's still an in between phase to navigate if the government is willing to go there. >> can the eurozone survive if that happens? >> the eurozone will survive. there'll be volatility. it probably means a buying opportunity. nobody's going to let portugal leave the euro. nobody wants it to happen. this is pretty unique to greece pep and greece is making it clear every day that it's unique to greece. >> okay. doug, good to see you this morning. thank you so much for joining us as we wait to see more out of alexis tsipras today. >> thanks michelle.

>> tsipras, cyprus. i'm lost. >> one begins with a "t" believe it or not. >> i know. but i was thinking he was mispronouncing the guy's name. but he was talking about the island, not the golf course. >> you are good. >> thanks. coming up this morning's big movers. we'll have the list of stocks to watch. and next helen griner cofounded irobot, developer of the roomba. she will join us on the "squawk" set next. es in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day.

let's take a look at a couple stocks to watch this morning. twitter shares are lower. mkm cut from neutral to buy saying it sees no catalyst for short-term improvement in the shares. and coty shares jumping this morning. reportedly on the verge of completing a deal to buy three businesses from procter & gamble for about $12 billion. jeb bush kicking off his presidential campaign yesterday. the former florida governor presented himself as an experienced problem solver. bush said there will be no guarantees in this presidential race. >> and not one of us deserves the job by right of resume party, seniority, family or family narrative.

it's nobody's turn. it's everybody's test. and it's wide open. exactly as a contest for president should be. >> bush also took a shot at hillary clinton mocking the democrat's no suspense primary and saying the presidency should not be passed from one liberal to the next. okay. coming up cme group chairman duffy is going to join us next. he's here to talk the trading rules and the blackhawks' stanley cup win. speaking of chicago sports the cubs owner and chairman tom ricketts is going to join us. "squawk box" returns in a moment.

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yeah...i...i used to be into bedazzling. i'll go get your phone. get the iphone 6 with rollover data to share. only from at&t. bracing for the fed cme group executive chairman jerry duffy on the potential impact of a rate hike his view of the economy, and how the marketplace is going to handle that upcoming fed move. gap is looking to reshape the brand. the retailer closing more than 200 stores. that could affect thousands of jobs. art peck speaking to cnbc in a rare interview. his comments ahead. and she reinvented the

vacuum with the roomba. now the cofounder of i-robot is going to talk drones. as the final hour of "squawk box" lifts off right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" right here on cnbc first in business worldwide. i'm andrew ross sorkin along with joe kernen and michelle caruso-cabrera. becky's on assignment today. we are now less than 90 minutes away from the opening bell on wall street. the futures in the red. a lot better than they were before though. a huge improvement on a relative basis. dow off about 11 points. the nasdaq would open off close to 10 points. let's check out markets in europe at this hour. see where things stand right now. all down but let's call it

marginal. >> they were down more than a point, all of them. and that's amazing right now. but greece has not even though it's based on greece. >> right. yeah. here are the stories we're talking about right now. greece's prime minister sticking to a hard line this morning. alexis tsipras is speaking right now nap is a live picture. he says international predators are to blame for a pass in negotiations. eurozone finance minister will get together on thursday to discuss the stalled debt talks. the u.s. futures have come off their lows after he started. he doesn't sound conciliatory. let's see if we get somewhere that suggests there's a deal on the table. greek stocks falling for a third straight session. lower by about 4%. they've been hit all week. and yields are rising on fears of a default as well. we're going to show you here the 10-year. we're going to show you the whole -- look at the 2-year yield in greece. 29%, almost 30%. horrendously inverted curve. that is a sign of fears of

default. we are seeing spillover effect. spanish and portuguese yields were all jumping this morning. and they've widened out from germany which is pretty significant. and so we'll be watching that during the morning and see if at the end of the speech we get any kind of conciliatory talk out of alexis tsipras. fitbit now raising ipo range from $17 to $19 per share. fitbit would be valued at roughly $3.7 billion. profitable about $1 hurkss million on net income. also alibaba in talks to jointly invest about $5 million in indian snap deal.com. that could value the company at $5 billion. and then another story both in "the new york times" and front page goldman sachs.

this is a big change for the firm. focused on high net worth clients. reports say that goldman working on a new consumer lending unit that would offer loans through a site or app. goldman hopes to be ready to make its first loans next year. talked about it sort of competing with lending club initially. but in the future going head to head with the likes of the technology changes of the world. everybody else who's been in that business for a long time. i don't know if you have -- >> big one called credit that's based in chicago. and, you know just killing it in that market. so it's clear that they're taking a look at their three or four players out there that are doing it very easy. it literally takes 10 or 15 minutes. >> when you said easy i thought you were going to a place she was going earlier. i mean we could probably start one of these businesses. >> it's true but the barriers are, you know speed to market and, you know, taking market

share. they've got a brand, no doubt about it. the big banks has a brand. but honestly they haven't been playing in that field, so they just aren't known. they can jump in. they're going to need to buy something. >> isn't that true? >> i hate to say it it does -- there are people who -- >> it's a tough retail brand. >> i think it is. they'll have to use a different name. >> i don't think they're nearly that well known. we talk about it ad nauseam, but i'm not sure. elizabeth warren beats them heck out of them. >> they could get in the calamari business and sell squid. everybody knows them as a blood sucking squid on capitalism's face. like from "aliens." >> they're attempting to address that probably. >> they are? we need someone who has money to lend if we're going to start this thing. >> we need him. he's a real estate guy. he's a technology guy. so right around here -- we have

tdemeritrade there. there are branches everywhere. five to ten years, will there be branches everywhere? >> i don't think so. people are just going to move it entirely online. why would you? when wha are you going to walk into a branch and do that you can't do online? if you can now get a small consumer private loan online i don't think you're going to have to talk to a branch member. >> what about the lollipops. >> or the free pens. >> this world is moving too fast. >> the coins. how do you get your coins counted? >> now you'll have to handle them yourself. >> anyway underarmour announcing it's going to create a new class of stock. just like the other stuff on the nyse.

under armour shareholders will get part of every share they own. it's like a stock split. tomorrow one of under armour's big shareholders and a guy who's been in early on so many different great stocks ron baron will be our special guest at 7:00 a.m. eastern time. couple of other stocks to watch. reynolds american added to goldman's conviction buy list. that's the first thing i'd change. goldman has a list called the conviction list. i mean i just -- figure it out. figure it out. change the name. strong buy -- >> we really mean it list. >> it's anything. it just seems simple. the firm says the tobacco producer has a best in class brand portfolio following its acquisition. and corning was upgraded to outperform from sector perform. that would be a buy from a neutral. the analyst argues the maker of tv displays and optical products would benefit from an upgrades

cycle. monster beverage added the city group's focus list. the firm suggests it has outside sales earnings. and there is considerably upside to the stock from current levels. gap making some big strategic moves as it looks to improve business performance. the company is going to close 175 stores in a turnaround effort. the company's ceo sitting down with courtney reagan for a rare on-camera interview. and she joins us now with that conversation. courtney? >> hi good morning. investors know gap has been struggling with growth particularly the same store sales for some time. with so many brands under its name sake art peck has a lot of ground to cover to restore shareholder value. i asked him where he plans to find growth in the years to come. >> we've been very focused on building out the global footprint of the company. and that's brands and geographies across multiple channels. so the specialty channel, the outlet channel, and the online

channel. that's the strategy we're committed to. and we're pretty far down the path of having really a world class global distribution system. second piece which we've been less good at is gaining market share. and we need to gain market share in our mature businesses. that's the platform jeff is building right now. it's what old navy is doing. it's what banana was stepping up to. and building more stores growing our digital presence and outlet presence. so if you put our geographic expansion together with gaining market share, there's a big growth opportunity there just inside the brands that we have right now. >> now, peck says while they're always aware of acquisition opportunities in the market place, for now he's relentlessly focused on gap's core brands positioning them for growth. coming up at 10:10 eastern time more of my interview on "squawk on the street." there's still a lot to get through for the rest of the day.

>> thank you. we will keep coming back to you for that. in the meantime our guest host is j.b. pritzker. you've spent time in the health care space. one of those stories we haven't talked about is the medical on prowl for deals. this is a story saying the united health group and anthem might be in talks. also all looking at etna potentially. then there's cigna, this whole cluster going on in reaction to obamacare and what happens. do you think that they should be consolidating? >> i think they're going to have to. there's just no doubt about it. the effect of obamacare has been this industry consolidation. i'm not sure that, by the way, the legislators or president obama understood that's what was going to happen. >> unintended consequences? i'm shocked. >> absolutely. and the question is are we going to get efficiencies from these kinds of mergers? i think you will but it is also something that you know you

can see some liberal legislators might not approve of. >> do you think that these type of transactions at the scale we're talking about in the united deal do you think in this environment the regulators would have lasted? >> i think they're going to have to. just in order to achieve the kinds of you know productivity the kinds of cost reductions that we need you know, they're just going to have to. i realize that goes against hype for this administration. >> do you think they're going to push some deals to -- there are a couple of smaller scenarios. that's a huge deal and that makes united health that much more bigger. some other deals on the table might change the dynamic and might make them more competitive with united health which i think is $110 billion if not more. >> it's happening all across health care. it's not just you're paying attention because these are the $40 billion deals. but everywhere in the hundred

million dollar and ten billion dollar, these are happening. >> because they put a price control essentially equivalent on margins. right? you can only be profitable at a certain amount. therefore size is the only way to get more profitable, right? >> in the last two years it's been a boom for these companies. >> and there's a tremendous inefficiency out there, truthfully. this is i think, ultimately helping. it's just something we're going to have to -- for those who want to break everything up into small companies, it just doesn't work that way in health care. >> right. talking about valuations of the health care companies, some are at the top of valuations recently. you spent a lot of time in tech. we haven't talked about the unicorn phenomenon this time around. are you worried this whole market in tech is about to fall apart? >> i'm not. and the reason is the companies are actually doing really well. i mean they're not only revenue significantly improving. but they're becoming profitable or they are profitable. i know there's a front page article about uber in "the wall

street journal" today. and a $50 billion valuation and can they really justify it. i have to say it's a tough number. $50 billion. but when you say unicorn, that number is describing billion and more. and there are real companies with billion-dollar-plus valuations that are worth it to invest. >> which are those and would you invest in uber? >> so i mentioned last time i was on that i had the opportunity to invest in uber as a number of people did at $40 billion and chose not to. so the answer is -- >> mistake? >> i don't think so. just because $50 billion is on the front page of "the wall street journal," it's still a private company. you have to exit in order to realize it. uber is a tremendous company. there's a lot of value there. and as is suggested in the journal article, you know, it has a number of industries it could go into. logistics being its primary business. a lot of places it could go. i don't think it's going to succeed at certain things.

>> okay. j.b.'s going to be sticking around for the rest of the show. thank you. coming up tom ricketts joins us after the break. futures are bouncing back ahead of the open. "squawk box" will be right back after this break. innovation starts... right here. with a control pad that can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a redesigned cabin of unrivaled style and comfort. the 2015 c-class. at the very touchpoint of performance and innovation.

welcome back to "squawk box." former new york city mayor michael bloomberg donating $100 million to cornell university to help build the new location of the technology campus. the gift will be announced today. the ground breaking for cornell tech's new $2 billion home on roeflt roosevelt island. the school has been temporarily housed in chelsea. as a cornell alum i say thank you, mayor bloomberg. >> didn't like it when david -- or when john paulsen donated to harvard. >> no i'm very happy. gladwell had an issue with it. >> he had a total issue with donating to harvard. >> he did. i didn't. >> you didn't? this is good. i think this is good.

>> philanthropy is a good thing. >> we agree. time to talk about the chicago cubs. it's going to be hard for me to wear this. does this stand for cincinnati the reds? >> cubs. and on the back is a cubbie. >> you're right. okay. we're all talking about the cubs. forbes says it's valued at $1.8 billion. our next guest has done well with that investment after buying the team in 2009. joining us now to talk about the baseball business tom ricketts chairman and owner of the chicago cubs. he's also chairman of in capital. i mean wild card i think you're in. if it were to end today, the cubs would make the playoffs right? >> i think so so. i think so. but there's a lot of baseball left to play. >> there is a lot left to play. and j.b.'s been -- you know it's not that he's -- he's not humble, but three out of six is pretty good. but they're still in the back of his mind he's thinking cubbies,

that i shouldn't be too cocky about this. it is a long drought that you have promised to end b, tom. >> i don't know. if you consider winning or not since 1908 a long drought. but first of all, i want to say congrats to rocky and everyone at the chicago blackhawks. they've done a tremendous job. it's been an incredible run. three in six years is a heck of a dynasty. >> we talk about sports programming a lot, tom. baseball is different, i think, but still great future because of how strong it is in local markets. and content is just so valuable when you can dvr through commercials. you can't do that when you're watching baseball. >> i think that's true for all sports. the value of sports programming continues to grow. it's a live in the moment kind of viewership. but baseball is doing very well. it's very strong. particularly if you look at all the minor league clubs and their

attendance growing as well as major league baseball. it's the place where you go with your family. it's the place where you go with people you want to talk to. so i think baseball is doing pretty well on that front. >> it's a lot of fun. everything about it. i ate some cracker jacks. i haven't had them -- it's in the song. the prizes are terrible. it's a piece of paper. i got a piece of paper. >> but they were never great. >> give me something that i could actually choke on or something. the paper -- >> that's it? >> yeah. it was like a joke on a piece of paper. it was horrible. >> tom, are we going to get a championship out of the cubs this year? >> this year? >> yeah come on. we can do it. >> hey, we're playing better. you know? i think our guys believe in themselves. we have a good young team. we're building a new nucleus not unlike the blackhawks. building a nucleus of good young players. hopefully they'll continue to develop and we'll have a pretty long run here a pretty good period of sustained success.

and that's what you have to do. you have to get to the playoffs as often as you can. once you get to the playoffs it's anybody's ball game. >> tom, does it -- i agree with you with wrigley. i wish crosley was still around in cincinnati. maybe you leave the history behind. is this the right move to take a long time to just you know spruce up wrigley? >> well, i don't know if it financially is 100% the right move, but i know emotionally and historically and just for what it means to our fan base, it's 100% the right move. wrigley is a part of the family. i mean it's part of who you are. it's part of what the cubs mean. it's a special place. we're fortunate to be able to get her fixed up and savor it for the next century or so. >> it's like fenway or something. who doesn't love to this day fenway? or wrigley. what do you want to do with all the rooftop tickets?

you're buying some of the buildings. what's the end game there? >> well obviously, it's public that we bought a few of them. we own six rooftops. others we don't own. you know we'll just see where it goes from here. >> but why are you buying them? >> we're going to operate them. >> that sounds like fun. >> tom, can i ask you about your other business in capital. i know it's one of the leading underwriters of bonds for individual bond buyers. what are you seeing there? are higher interest rates leading to more individual bond buyers? and what's going on in that business? >> yeah absolutely. as rates have been trending upward, we're seeing a lot more demand for the fixed income products we have. the equity side, ui teams are growing rapidly and actually market link cds are another thing that have been growing rapidly in our space. thanks are good in in capital. thanks for asking.

>> i don't know if you necessarily want to talk about the fed. i don't know whether i necessarily want to talk about the fed at this point. so i'm going to talk about this. your dad pretty well known. i like your dad. i know you're friends with j.b. and i am too. do you have the same kind of conversation with him where i'm trying to say, you know you could be a private -- like a socially liberal private sector guy. and he tells me well you could be a socially liberal conservative guy. we're right here. do you have that same conversation with him and do you get anywhere? because i don't get anywhere with him. he's so far over there that there's no way around that. >> i don't think we've ever gotten too heavy on politics. we're just friends. >> we do love the same baseball team though. >> a lot in common there. >> so close to the vest. >> i'm right there and i can't get it. in fact, you even tweeted about me later last time you were on.

something that i'm this close to moving -- you left the lights on. >> i think you're a democrat you just don't know it yet. >> oh god no. you wouldn't turn on me. >> he's a huge private sector guy. what about free trade? do you have any problem with that? >> listen. >> the trade group -- the tpp, anything she's ever done? got you thinking about anything? >> are you really going to tpp when we have ricketts on? >> i was going to. >> no no. you shouldn't go there. what you should go to is the victory that's coming this year this year by the cubbies. this year. >> absolutely. >> let's hope that's as -- tom ricketts, thank you. next year. 2016. and good luck. i do wish you luck. i need a team this year since i'm a reds fan. yeah. lost another three straight.

so far below .500 it's way, way up. you're just a little above though. i would not be talking about world series yet just because the blackhawks won. >> it's a long season but we're playing well. >> see. all right. good luck. thanks. >> i like that. >> i like this -- >> nice hat you brought. >> the reds don't have a blue hat with their logo. speaking of chicago, coming up the executive chairman of the cme group on market volatility, terry duffy next.

facebook is launching a stand alone app that groups photos. the app is called moments. it using facial recognition to identify which of your friends are in a photo. you can share them with them. cool. all right. >> it's unbelievable. >> a little scary? >> yeah nap is cool. that is pretty amazing. right? >> from airports to facebook. >> the whole facial recognition thing -- i guess they're like fingerprints, right? they really are. >> but, you know because of google glass and facial recognition has been outlawed already around the world. can you imagine people stalking you, joe, all the way to your house. >> it happens already. >> don't even say that. don't even bring that up. you know, yeah. coming up the health of the

real estate market. housing starts data just minutes away. then later the co-founder of i-robot looking to make drones for everyone much like she did with roomba. the kickstarter campaign has raised over $125,000 for her latest creation. helen griner will be with us. as we take a break look at the equity futures coming way off the bottom. boys? ♪ mamas, don't let your babies...♪ stop less. go more. the passat tdi clean diesel with up to 814 hwy miles per tank. hurry in and you can get 0% apr plus a one-thousand dollar volkswagen credit bonus on 2015 passat tdi clean diesel models. ♪ what if we finally had a backyard? that'd be amazing. ♪ hey, what if we took down this wall?

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welcome back to "squawk box." this is jim iuorio from the slightly tired cme in the city of chicago after the hockey game last night. we have breaking data in the form of housing starts. 1.36 million. was revised from 1,165,000. housing up month over month. down 11%. not good. we were expecting down 4%. buildings permits, to the upside as well. 1,275,000. we were expecting 1,100,000. last month revised down a hair. the stock market had come in under some pressure. doesn't budge. the s&p futures still down 6%.

yields came down 2.32%. they stay there. the market gets this with a yawn. i think it's interesting but this number has a susceptibility to being revised quite a bit. it's not a bad number. >> all right. congratulations. >> thank you very much. thank you. >> there's an "i" there. >> iuorio. >> congratulations on the win last night. don't move. >> don't ever change. >> i won't. i'm never going to. let's get a quick reaction and more from the cnbc fed survey. steve leisman joins us now with the reaction. >> real quick, they revised it up. i like the permits number being up 11.8%. suggests maybe the housing movement we had yesterday will continue. one of the themes in the fed's

survey this month is we see a forecast for rising interest rates but a still resilient stock market. the idea that the market is ready now for this rate hike. or the rate hikes that would be coming as forecast in september. here's the forecast for the s&p for december 2015. that represents a 3.5% increase from here. not too much to write home about but better than being flat or down at this point. then the outlook for 2016. that would be about a 9.1% increase. again, not gang busters, but interesting in context to what i'm going to show you next which is the outlook for the 10-year yield. you can see here 2.36% is where we closed yesterday. up about 30 basis points where it was in the april survey. look at 2016. 3 3.25% is the forecast. what's interesting is put it in context. the stock market and the bond market, bonds going up yields

rising. however, the stock market still doing okay in that context. and what you can see here is when we ask is the rate hike for 2015 priced in. what you see is that more and more of our respondents this time. 67% say it's priced into the bond market. 61% into stocks. in response to the survey the bond market is leading the federal reserve. a hike in short-term rates is already priced in. and art hogan, he says 35% of active market participants have never seen an increase in the feds fund rate nap is why there is so much trepidation. andrew, i don't know. have you seen an increase in the fed funds rate? what about -- i know joe's been there for one. but will have been if it happens in september nine-plus years since this last. >> you really said the two words marshall acuff?

>> i did. >> wow. he was my chief strategist in 1985. >> wow. i am pleased as punch that he's involved in the survey. he called us up. he wanted to be involved. >> 1985 though. >> he seems to be right with it just like you seem to still be. >> yeah. thanks for that. >> you got it, joe. okay. our next guest runs one of the largest marketplaces handling 3 billion contracts worth about 1 quadrillon dollars. we should probably turn to you because you operate something called the cme fed group watch tool which looks at this every single day. so where is it from your perspective? >> well it's -- yeah. right. people have been asking me that question for five years. and i just keep trying to figure out why it would happen in the

time it's going on right now. when you look at the lack of inflation, when you look at people still pouring in to buy at these levels i wonder why the fed would move. i personally think they should. you should move when you have the ability to move. i'm not as optimistic for when the rates start to move. i think we could see knee jerk reactions coming up later this year or next. >> your tool based on a 340-day futures price now pricing at 40% probability of a rate hike in october and a 66% probability in december? >> yep. i've seen this before though. we all have right? we've seen this other the last couple of years. >> if we had looked at those numbers even two or three months ago, what did they look like? >> you know i don't have the exact numbers in front of me but obviously the probability of a rate hike earlier in the year was much higher. then it tapered off

dramatically. and now here we are again talking about the fall time period when june came and gone instead of having no rate hike. it's hard to time one of these things. >> at the beginning of this interview i should have congratulated you on the blackhawks win. i know you're a sponsor. you're been a sponsor for about the last three years now? >> we're a presenting sponsor of the blackhawks. we picked up two cups in the last four years as sponsor. timing is everything. we're pleased with the timing of that. >> can i did or i will how much does it cost to be a presenting sponsor? this seems like a good bet for you. i don't know what it would cost then and what it costs now. >> whatever we put into it it was cheap compared to what we got out of it. we got global exposure for cme group. the game of hockey has grown 35% to 40% even during the downturn in '08 and '09. it's been a real plus for the cme to get our brand out there. >> one of the conversations j.b.

and i were having during the break was the fact some of the pits are closing. i think july 2nd is when everything officially shuts down. what's the impact going to be and what's it been like? >> it's not going to have any impact. most of our business in futures is done electronically. our options are still done the traditional open outcry method which will continue both in chicago and new york. so it's just one of those evolutionary things that has happened. it's gotten to a certain level where it no longer is feasible to keep the floor open. so for futures trading. you know it's a difficult time. people have been doing it for a lot of years. people have been after it far lot longer than that. but at the same time when you got a guy like j.b. pritzker in your studio what he's all about is the future. and the technology that supports financial markets. cme's invested billions of dollars over the last several years in order to promote our

product to have world class systems. so this is what it's all about. it's been part of the plan for cme group for over 15 years to get to the point we're at today. has nothing to do with closing the pits. it's about distributing our product around the world. >> terry, a lot of the jobs that were in the pits have actually gone into trading firms that are around the pits right? >> yes. >> i know cme has been a big investor in technology and start-ups, actually that affected the financial markets. can you talk a little bit about that? >> yeah. j.b., i think that's really interesting. and you've been a leader in that field. for cme group we've recently gotten into -- taken small investments that we think can add to our business model somehow, some way. we're not into it for a big number. these are little tech firms we're buying that i think could be a piece of the puzzle for our systems to create a new way trading is done today and tomorrow. these are things we look at that we think are down the road some

of them coming under fruition today. you know you're involved in a few of these. so we're really excited about technology and the growth of our business. >> okay. terry, thank you for joining us. again, congratulations on the blackhawks last night. >> thank you. >> i don't know about the sequel to trading places. it's not going to be very exciting without the ending with dan aykroyd and eddie murphy. >> i haven't thought of that important implications. >> yeah. big ending coming up at the end. you know all those guys are dead. coming up kick starting her way into the drone business after tons of success with robots and the roomba. the -- i'm having a tough morning. the cofounder of i-robot has a new product she hopes can fly high with everyone. the ceo of cyphy joins us after

break. 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.

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♪ is there a connection between jimi hendrix and greece this morning? i'm trying to figure that out.

among the headlines, tsipras says greece must seek a deal that ends uncertainty or must end talk of a grexit. promising to keep working to find a solution. those are just some -- a few conciliatory statements the made in what wasotherwise was a -- the average stocks is well off of lows. germany had been lower by more than 1%. now france is in positive territory. everything except greece seems to be recovering. helen greiner. hello. helen launched her career at just 22 years old with i-robot. could he sue you? >> we misappropriated it yes. no, no. >> all right. that became a household name via roomba, the vacuum cleaner. now she's turning her attention to drones with her new company cyphy works. its distinctive technology sets

it apart from the rest and has a consumer model available for $500 on kickstarter. with us is helen greiner. m.i.t. grad. mechanical engineers. my buddy who was in that never went out at night. then you went from that to electrical and computer science. all at m.i.t. first thing i need to ask you, you're not using, like typical wire. you're using something almost like fishing wire. and it's not radio frequency to control these things? >> well we started off building tele-drones. the problem customers have with drones is the time of flight. you have one this size you can keep it up for 30 minutes. but industrial companies need eyes in the sky all the time. it supplies power from the ground and also does communication. so it can't be spoofed, hacked or jammed.

>> but you're tethered to the ground. >> yes those are tethered to the ground but it gives a bird's eye view of the facility all the time. then we have another model coming you can run right into a building. >> how far up can you go? >> that one goes 500 feet. >> the one that goes straight up in the air? >> can't be hacked can't be -- >> it's amazing. the question i have is do you worry about other things in -- the trees or things in the sky that could break the wire? >> we haven't really experienced that. i mean, you know where you put it up you know the location and you can deconflict like that. but this guy doesn't use a tether. this is a free flier. and what happened was our guys were working on the tethered system making them fly better and they came up with a better way to fly. and most of the drones you see this size they tilt into the motion. so they're always going like

this. >> which is bad for the video. >> it's bad for video and also if you want to put any sense and avoid systems on later. >> sense and avoid? >> sense and avoid, yeah. >> so we can see things and stop. so it doesn't run into things. so we invented this better way to fly. you showed video of it flying level. and so we invented this and said we've got to get this on the market as a consumer product because it's better than any other drone out there. >> that's because of the -- do they all have this pitch? >> exactly. the struts are at a dihedral. >> i was going to say that. obviously dihedral would be more. >> that and some fancy math inside makes it so we can fly completely level which makes it nice stable video. >> i get the impression they're trying to regulate drones too much. >> well, drones are under the

same set of regulations for many years. we have a very strong safety record. you basically -- you shouldn't fly over 400 feet or near an airport. and, you know a few other common sense rules. the commercial side of things they just started opening up the regulations now which is quite exciting for the industry. there used to be no way to get permission to fly. now there's a way to get permission in a 333 exemption. and, you know, working with the faa. then in early 2017 you should be able to fly under certain restrictions without needing to -- >> so five years from now or even two or three years from now we look up in the sky on any given day, are we going to be seeing dozens if not hundreds of these things flying around? >> i absolutely believe that. it is a little further out as you said but i believe these will be doing package deliveries. >> we want one in here that shows different angles when we're talking. >> if we looked up here you'd see them all over. >> just going down the highway

of the sky. >> i'm not sure right here in new york city. but in suburban areas. >> so you totally believe the amazon delivery thing is a real thing. >> not just amazon but all the retail centers will need to compete. the shortest distance between any two points is if the drone flies. >> will every family have one like they have a camera? or maybe people use this -- >> will everybody have a household drone? >> yeah. this one for example, it's a consumer drone. we have it on kickstarter now. it's got a camera. you can go out and look at your gutters. you can see if a shingle is blown off. but they're for fun as well. take them to the barbecue for the family. >> my fear is people use them to spy on others. and in fact i believe that that is a common use. isn't that true? >> i don't think most people buy them to spy on others. they use them to get great aerial foot arge. it's the next generation video

camera. >> can you make this bigger and put a seat on it? >> put a seat? >> yeah. put is seat on it and let me fly around like that. >> i think you want to test things out at -- >> the thing i came up with, is that impossible in the future? a little further. >> little drones are five years out. that would be 20 years out. >> is the high def video better with the ones that are tethered or not? do you make this? >> we don't make the camera system. we put a camera module in our kickstarter version. it gives great 1080p rate camera. beautiful video. and at a price of $495. you can't beat the. >> did you live in kendall square, central, where'd you live? >> i lived on campus. >> you did? >> really? >> excellent. okay. thank you. >> good luck with that. folks can check it out on kickstarter. when we return jim cramer from the floor of the new york stock exchange on what's going to be moving the market when the u.s. market opens for business.

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let's get down to jim cramer joining us now. what are you watching for this morning? >> it's all greece.

nothing really matters. there have been a series of incredible news events like pretty hmo buying another hmo. nobody cares. the target news nobody cares about that. there's nothing that hits the tape. even goldman lending wasn't matter. all that matters is greece. it's weighing on the market. when you pointed out there's an angry approach from greece it moved the futures. i wish there were something else to talk about, even housing starts, but it doesn't matter. maybe gap. >> jim, if the worse came to past and we were really talking about grecit. >> day one, panic. day two figure out two owns the bonds and day three we realize what hedge funds has loaded up on bonds and failed. day four everything is fine. >> we've really come off the bottom here so far this morning.

people reporting some of the statements they have made. >> it's amazing to me. obviously they would rather gamble. this is all a big act, but it doesn't matter. they think there's nothing to loose. i think jim stuart with his game theory piece, they can either get concessions or they do well if they leave. it's incredible to me that people don't see it like that. >> i agree with you. good to see you. i'm sure you'll talk about it in the next hour. >> coming up when we return we'll tie up loose ends and tomorrow on squawk box ron barren is going to join us. find out where he's putting his money to work. and we've got brian cornell here talking about the retailer's deal with cvs and the state of the consumer. we'll return in just a minute. 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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active only from at&t. tested to withstand pretty much anything life throws your way. get a galaxy s6 active for zero down and get a free samsung tablet. let's turn back now to our guest, the managing partner -- a lot of your bloodline feels like is real estate to some extent or at least hotels? >> my grandfather started at real estate. my dad built the hotels. there's so many different facets to that but zero interest rates

but it's much harder to get credit. where are we? where are we going? >> gosh if i knew that i wouldn't need to sit her. >> hotel rev par still not back to where it is. >> doing very well though. >> oups is all the way back? >> the truth is that the hotel business is probably at least in terms of valuation, you know a pretty good steady state now. the other thing is that the real estate market overall, in chicago it is hard to find space at a rational price. >> commercial? >> commercial. >> it never got overbuilt really, did it? >> there was a time of course. >> how long ago? >> it's a number of years ago but we also in '09 everything was empty as was happening everywhere else. now it is hard to find a place, and particularly in the tech world. the big companies moving into chicago google and others.

and all the big startups that are now going public. there isn't any space for them. there's nowhere to go except for old buildings that need to be refreshed. >> you know cincinnati. unbelievable renaissance and other parts. business and tech and everything. even detroit seems like there is signs of some positive light at the end of the tunnel. >> what an amazing investment dan gilbert will have made. i've spent some time in detroit and just watching, there's areas of detroit that need help there's no doubt but from the bottom, it's been a big rise, and i really think ten years from now detroit is going to be a vibrant city. >> good. i'm glad you came back this soon and hopefully when you're back here, just let us know. we'll do it again, right? >> we'll talk about politics next time. >> i try to avoid that a little. >> we have trump coming up

today. are you excited about that? >> well, i'm wondering why he's intermixing this question of his net worth with the question of him running. i'm not sure -- if you say you're worth $9 billion -- >> do you want to declare how much you're worth right now? >> i'm not running for president. >> will you declare it for me? >> why would you say that number just before running? >> "squawk on the street" is next. >> congratulations to the chicago blackhawks on their third stanley cup championship. we're at the new york stock exchange. another day of pressure on stocks as the red lines out of europe are less than encouraging. a two-day fed meeting begins today. the 10-year is down