>> good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with andrew ross sorkin. joe is off this week. there's 504 days left until the 2016 presidential election. a new poll out this morning finds this could be hillary clinton's race to lose. the newest numbers show her leading all white house hopefuls at this point. there's a number of republican potential contenders and hillary clinton is the front runner as far as it comes to the democrats. we'll have a complete break down in just a bit. we've been watching the u.s. equity futures and after big gains yesterday you're looking at green arrows once again. these are moderate advances at this point. the dow futures are 17 points above fair value. the nasdaq up by 5.5. >> among the big stories we're watching today the ecb raising the limit of emergency funding for greek banks to around $100 billion. this is the third day in a row

now that the central bank backed additional funding. athens works on a deal witsh it's creditors. michelle will join us in a few minutes. >> business activity expanding at the fastest pace in four years this morning. the latest data suggesting a recovery in the region is gaining traction. walmart and sears say they will stop selling products bearing the confederate flag. they come a week after a white gunman shot nine dead at a historically black south carolina church. the state legislature is set to meet today and officials are expected to rally outside the capital to call on lawmakers to vote on removing the confederate flag from the state house grounds. they have bipartisan support and the backing of governor nikki haley. >> there will be some in our state that see this as a sad moment. i respect that. but know this for good and for bad whether it's on the state

house grounds or museum the flag will always be a part of the history of south carolina. but we can say that flag while an integral part of our past does not represent the future of our great state. >> a walmart spokesman said the company doesn't want to offend anyone with the products it offers. >> other corporate news this morning, chinese fund manager hill house capital group now leading an investment round in uber. the backing is said to involve purchasing ponds that convert into shares at a discount to the company's ipo price. so we will -- i don't know when -- i think the spring. come the spring we should see -- >> an ipo. >> you could even see a filing maybe late fall. >> although when these companies are able to raise so much money in the private markets without needing to tap into the ipo market you see companies becoming more and more -- >> they're starting to run out of time. >> but the out for the early

investors. >> we talked about this before. so many of these valuations don't necessarily translate into the public market. they're getting discounts and there's other components to how the vie private investment is actually made. some are strategic investments. it will be interesting to see if it lands where this is. >> i want to see what the valuation is said to be a few months from now. what is it? 50 now? >> 50 now. >> where are we going to be a few months from now. >> 60 or 70. >> probably at the rate we're going. >> reaffirming the opposition from a stakeover proposal. any acquisition offer needs to be at a fair price. probably means a high price and provide a high degree of certainty that it will clear regulatory hurdles and then other deal news this morning because japan's sumitomo mitsui financial group buying the general leasing business.

the business could be worth $4 billion. it's said to have drawn interest from wells fargo and other firms. >> a group of u.s. senators says the air bag maker takata may have placed profit over safety. democratic members of the senate commerce committee show company e-mails showing they were stopped for financial reasons from 2009 to 2011. exploding air bags caused at least 8 deaths and 105 injuries. there's a senate committee hearing on it today. alibaba is selling it's subsidiary to opensky. the first major move failed to gain traction. financial terms were not disclosed. in other technology news larry ellison says oracle is expanding it's cloud computing offerings bringing the company he founded into competition with amazon. in a presentation yesterday he announced oracle would offer

online storage and capable for customers to run entirely in oracles cloud. oracle is compared to compete with amazon on price which is good news for all the customers because amazon has been very competitive when it comes to price. they have managed to capture the market sprays but have done it at low margins. >> a milestone for facebook. kicking walmart out of the top ten u.s. companies by market cap. they're dropping to 20 month lows. according to year end data walmart hasn't finished outside the top ten among s&p 500 companies since 1997. let's check on the markets this morning. take a look at where futures are. optimism over the potential of a deal in greece and implied open higher as well again today. implied open plus two points. the dow jones futures plus 18. the nasdaq looking as though it will open higher at this hour as

well. let's go to europe. green across the board again and there's the greek market at the bottom of your screen. up 4 plus percent. over in asia. much of the same story. the hang seng up nearly one and shanghai had it's gains and drops down as well. energy this morning, crude oil north of $60 per hour. brent is slightly higher as well. take a look at the ten year note yield. 237 is where it currently stands now. watching the dollar and currencies across the board the euro giving a little back today verse the dollar. we'll call it 112 and change. there's cold. 1183. >> let's get to athens where michelle has the late establishst on the greek crisis and the headlines suggest we're much closer to a deal because for the first time

some of the european counter parties and creditors acknowledged there's a path toward a deal. is that how you would summarize it as well. >> yeah. absolutely. i think for the first time they have seen a plan 11 page plan. it actually hasn't been leaked yet but what they have seen so far is a good start. there was anger yesterday that it was submitted extremely late. so late that a lot of individuals, technical teams didn't have time to really look at it so some of the finance ministers were like why did we bother to come today. you're not going to rush us into a deal so now they're going to come back tomorrow. so enough details have come out. they offered almost 8 billion euros in fiscal measures to try to close a funding gap. the vast majority were an increase in taxes or contributions to social security

to individuals. taxes on the rich and corporations and very little when it comes to actual spending cuts even though there's talk about early retirement being eliminated a little bit sooner than had been previously suggest suggested and the ecb extending one more day for the greek banks. it's been made clear to journalists that this is going to be a day by day thing to keep the greek banks alive. in part to make sure that the greeks continue to negotiate at good faith at the table. i like to show you the newspapers here. let me show you one of the papers of record here. we offered them 8 billion in austerity and they asked for

more a big exclamation point. that's the party of the prime minister. it says the austerity burden will fall on the rich. that's the way they're selling it. and it says everyone take to the streets today because they do not like the deal and then this is the issue is they say he is the criminal and he is bankrupt. we spoke with one member of parliament that used to be the tax collector here and now he's a member of parliament. the frustration is when the deals get done at the very last minute and you're trying to get to a number what's the fastest way to get to a number? raised taxes and cut spending. things that aren't necessarily good for an economy instead of doing real structural reform. so the problem is that this plan

isn't really going to get to the core of greece's problems it's not going to be a good deal for months until we actually have a deal that solves the problems that greece has which are structural. it's going to be where this deal is going to put the weight on. >> structural reforms. structural reforms. it's a really economically wonky word to say. you have to get rid of red tape and make it easier to invest here and almost none of those thing versus been done throughout the crisis. it's been all about cutting spending and raising taxes. it hasn't been very focused if at all, on growth. back to you. >> those are excellent points. if the focus of the 8 billion euros is in the form of higher taxes they have had massive problems trying to create the taxes that already exist so the

idea that this is anything that comes up or helps close budget loops seems hard to believe and then hopefully get to the point down the road where they can take a harder line supposedly on dealing with the under lying fundamentals of the economy but when the euro group and that's the finance ministers of the countries that use the euro meet tomorrow they'll be focused on do the numbers add up? can everybody sleep at night? supposedly this is a good plan. >> they they the eu has a better plan down the road. it seems to be this is the best advantage the eu has had in terms of trying to push the structural reforms through. >> many people will be in agreement with you for sure. this 7 billion euro dispersement

that the greeks are trying to get so they can pay the imf and ecb in july and august it's not enough for them to actually keep paying their bills. they're going to run short. they're now spending every day, the government spends more than it takes in tax revenue and they can't borrow from the capital markets anymore so they need to fill the gap. that means either cutting spending or borrowing more from their european partners. that's going to force another negotiation at some point and maybe that will bring about some changes. >> thank you so much. live for us again in athens this morning. the hopes for a debt deal with greece getting markets excited on monday. the nasdaq composite closing at a new record but are the markets getting ahead of themselves? patrick, good morning, nice to see you. >> hi. >> trying to gain what happens

where michelle is standing and make the investment decisions where we're sitting. >> yeah with greece you've got a patient who is dying of cancer and we basically just fluffed his pillow. nothing has changed. michelle is absolutely right. a deal has turned into more negotiation. it's not clear if it will change anything. >> do you care? >> well the thing about greece is its not just about greece. it's about setting a precedent for spain, for portugal and for italy because all of them are looking -- all of them have similar problems. maybe not as much but they're looking to greece as a model. it's not about greece. if greece could be isolated from

this small economy, if they could bail it out tomorrow it would be no big deal but it's all about the greater imbalances within the euro zone and economy. >> in terms of how you're investing today and the fluffing of the pillow was quite a visual thought. i hadn't thought about it like that. do you sell this news? if you think this really doesn't matter do you sell this news? >> there was some good news pmi out of germany and out of france. there's some good things happening in europe but markets are overreacting a little bit to a sense of solution when there is no solution. >> if there is a solution in 48 hours does the market go up or down at that point? >> well i think that people -- maybe it goes up all right? on the sense that once we -- we have a solution. but, you know this is -- watching the euro zone crisis it's not just like watching ground hog day. it's like watching ground hog day over and over again.

>> right but are you positive or negative on the market? >> i think the market is reacting in europe and in u.s. to what they perceive as good news in the wake of a recurring crisis and that is not over so you have to have very realistic ideas. we're seeing volatility. we're seeing people respond to the news of the moment instead of the underlying fundamentals in europe which i think are still troubling. >> so are you negative on the u.s. stock market? it sounds like you're trying to tell a story that is going to come around and say that you're negative. >> so valuations are a little stretched in u.s. equities. we're 19 times operating earnings and 21 times operating earnings. that's a little stretched so i

think some caution is in order. we have to see a recovery in the second quarter. just to justify. just to keep the current evaluations. so i'm cautious on u.s. equities. >> thanks. good to see you this morning. >> coming up when we return cost of living is soaring. forget about new york or san francisco, the city with the fastest rising rents might surprise you. the details when we return. plus good news for hillary clinton. a new wall street journal poll puts her at the top of the presidential race. we'll debate whether someone can topple her. first as we head into break, a look back at this date in history. ♪

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>> new data out this morning on the cost of living. home rental prices are climbing but the biggest gains are coming in jackson mississippi and portland maine. also still rising at double digit rates in denver san francisco and san jose california. >> some of those make -- the san jose one you get. >> that i get. >> portland maine. >> mississippi. >> it has to be a supply issue unless there's something big. that we don't know about. >> it's a great thing. >> we'll see. >> plus you have to pay the

rent. >> good for the economy. >> we do get new housing numbers today today. yesterday it was the existing. >> the latest poll is out. and we're joined with the highlights from that. >> you remember those headlines about bernie sanders getting into the democratic presidential primary, you can forget about this in the latest nbc news wall street journal poll. take a look at these numbers for hillary clinton. i haven't seen anything like this in my lifetime covering american politics. she is at 75%. that's 75% of democratic primary voters are choosing her as their first choice candidate. bernie sanders is at 15%. behind him james web at 4%. hillary clinton lapping the field in the democratic primary

nomination battle. on the republican side it's a totally different story. jeb bush topping the list of people primary voters would like as their candidate. at 22%, scott walker at 17% and marco rubio at 14% on the republican side. so a much tighter field. an actual primary campaign battle going on on the republican side. take a look at how hilary matches up against some of these republicans in a general election contest. the democrats are feeling confident going into 2016. she leads marco rubio 50-40 and leads scott walker 51-37. so guys the democrats really in a strong position here but this is so very early on a lot of this could be just due to hillary clinton's name recognition. this say political figure that's been on the national scene for a very long time guys. >> no doubt, thank you. >> you bet. >> coming up 14 brands of bottled water now being

recalled. the details of an e.coli scare next. but first a look at yesterday's s&p 500 winners and losers. a lot more winners than losers. that's for sure. ♪

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good morning and welcome back to squawk box. we have been looking through stories that caught our attention this morning. i don't know about you guys but i drink bottled water constantly because i'm trying to be healthier and making sure that i'm drinking something cleaned. i don't trust tap water. i used to. >> come on new york's water is like new york's finest. >> but i'll in new jersey. >> so am i. >> so are you. >> this is the finest water in the country. i want to say that. >> i always drink tap water but in the last few years i have been drinking more and more because you worry about the issue with the drinking water being contaminated. for all of you trying to play it safe, there is news out this morning that niagra bottling because this is something and i'm sorry if you're eating breakfast, they said it's recalling it's bottled water products after one of its spring sources was found to be

contaminated with e.coli. that's one thing. but they actually sell it under a variety of different names. if you didn't realize it it causes die reearrhea, nausea cramps and other symptoms. these are the brand names. acadia, acme morning fresh, nature's place, price right, super chill, western beef blue and wegmens. so if you have bottle watered from any of the sources look out this was spring water products produced at the company's facilities in allentown, pennsylvania between 3:00 p.m. on june 10th and 8:00 p.m. on june 18th. >> i have avoided all of those. >> all of those waters. >>ly post this list on twitter. >> just fiji water. >> fiji water tastes different. can i say that?

doesn't it really? usually i think that don't taste that different from each other. >> you want to convince yourself it does because you're paying $5 for it. >> it's like softer. the water tastes softer. >> that would be from minerals in it and fiji is sinking because they are bottling that water and selling it. don't drink it. >> i'm a tap water guy. >> what have you got over there skulls on the tie? >> i like this new story about a report that pete rose hall of fame -- well not at the hall of fame, he played bet on baseball while he was actually playing baseball. he has long maintained that he only bet while he was a manager but now there's a super secret notebook which seems to have emerged that espn got it's hands on that allegedly shows that rose bet on baseball while he was actually playing the game. i had like this stuff at the top saying hall of famer. no of course he's not in the hall of fame. >> now his chances might be

worse. >> that's the whole thing. he's been trying to meet with the new baseball commissioner rob manfred and now it muddies the whole situation even more so than it already was. >> it sounded like he made great strides recently in term of trying to be reconsidered for the hall of fame. he even made a couple of commercials. a television commercial where he has talked about walking through the hall and the only one you're going to get in is at your home. and maybe some people would reconsider. >> yeah this could be a game changer in the conversation of whether he is ever going to be reinstated back into baseball. and we shall see. the former investigator on the original case has seen this notebook. i believe there have been other comments by people who were involved in the earliest situations as well. it doesn't appear to be very good for those in the camp of

pete rose getting reinstated. >> let me highlight two stories actually. real quick. i'll do both. one is the story about guys that come on your show a lot and our show. this is the loneliness of the short seller. i don't know if you want to get your smallest violin out or not but i also don't know if this represents maybe we actually are in a bubble. the short sellers are not only saying how lonely they are, some of them are getting out of the business or spending more time going long because it's been a very bad business recently. >> he's not getting out of the business. >> he's not but a lot of them have gone much longer. bill ackman is talking about how lonely it is and how he won't go short, publicly at least. >> anymore. >> anymore. >> he's been pretty public. >> but if he's going to go short doesn't want to do it as publicly in part of the publicity that comes along with it. >> is that because people assume -- >> people question your motives. people question whether you're you know it's patriotic to go

short or not. or unpatriotic it isn't. so anyway -- >> i hate to see short sellers get a bad rap because they play an important role. >> these kind of headlines is the talk though because this is when the short sellers should matter. >> but bull market has been going on for five or six years. how difficult is it to be a short seller in the face of a consistently rising stock market. when the overall train is speeding isspeed speeding forward it's hard to get on the other way. >> even if you're right about a stock eventually unraveling it's a tricky business. >> one more note jimmy lee's funeral at st. pats. there's a spectacular piece that

walks through what happened during that hour and a half and the speech that jamie dimon and others gave. it will bring a tear to your eye. >> and eulogy from his son. >> he was a special man and it was a very special ceremony and he would have loved it. he would have absolutely loved it. so there you have it. >> okay. coming up, why a large majority of americans are holding off or delaying preventive care. the disturbing details are next. but first as we head to break, check out the action in europe this morning. green arrows across the board. there's continued optimism about the possibility of a deal between greece and it's creditors. greece markets are rocking. the others, not so bad either. we're back after this. 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.

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welcome back to squawk box. as we have been telling you joe is on a trip to europe this week and we're playing a little bit of where in the world is joe this week. so he has tweeted out some pictures he sent to us. he and his family celebrating summer solstice in paris and made it to the u.s. embassy in france. those of our viewers that want to find him, you can. here is the u.s. ambassador to france who is married to frequent guest host of this program. so we hope that their travels are going well. they seem to be going well by the pictures but we will bring you more of where in the world

is joe as he sends them in. >> we've been looking at green arrows this morning. the dow futures are up to close to 20 points. s&p futures up by 20 points and the nasdaq up by 6.5 even after the gains from yesterday. let's look at the euro. this was something joe was watching today. right now at 11223. >> he is mad. he is mad that it's not at like 106. >> he was looking for parity although it was weaker than yesterday. in our headlines this morning planet fitness filing for an ipo about two years after partnering with a private equity if i recall. planet fitness lists a preliminary $100 million fund-raising target. >> general mills announcing that it will ax artificial colors and flavors from its cereals and trix and reese's puffs will be the first to get the makeover. 90% of the cereals will have no

artificial ingredients by the end of 2016. >> how do you make the marshmallows. >> i don't know how they're going to pull this off. >> it's a great way they're pushing for these things but even as a mom with kids looking for things better for them. >> how do you get fruit loops. >> what colors are the trix? white or cream? >> i don't know. general mills the latest company axing them. speaking of makeovers, lego talk about it you can't do colors or plastic. lego looking to ditch plastic. the denmark based company intends to find sustainable material to replace the plastic used in the bricks by 2013. it established a lego sustainable materials center. having spent a little bit of time at lego land. >> out west? >> there's a legoland in west

chester. it's called discovery center and it's pretty awesome if you have an afternoon with somebody of that age. >> i have a lego fanatic at home. >> you do? >> summer trip. >> the former fed chief is calling for the treasury department to abandon plans to drop him from the featured spot on the $10 bill. he wants him to dump andrew jackson from the 20 tlrs bill instead. in a blog post he says adding a woman in his words a fine idea but shouldn't come at hamilton aex 's expense. he called him the best policy maker in u.s. history. >> it's a big day for tom brady. he'll appeal his four game deflategate suspension in new york in front of roger goodell. brady could file a federal lawsuit against the league or goodell. >> we have fresh news this morning on preventive health

care and i'm putting this in the bad news category i think. but the digital health care platform has a new survey that shows that four out of five americans are holding off or delaying preventive care. it's easier to self-diagnose than get a quick access to a doctor these days. hear to tell us more about it is the president and co-founder. good morning to you. >> good to be here. >> nobody wants to go to the doctor anymore? >> what's happened is they find it very hard to do that. so many things get into their way. first and foremost an inadequate health care system that's more difficult to manage. so they do drop out. parents are probably the worst offenders with 9 out of 10 foregoing preventive care. >> how much does it relate to insurance and physically getting an appointment and dealing with getting to the doctor. >> we talked to 2,000 americans

that could actually access the doctor with their insurance no problem but they found is its so difficult to get in. they call. they frequently get dial tones and hold music and one in four will postpone seeing the doctor for many weeks or forever. >> because they can't wait on hold. >> it's very difficult. they have work obligations most of the time. they have to call between 9:00 and 4:00. many work in cubical environments and explain where the rash is. >> this feeds directly into what your company does which is try to make it easier to get in the door. you can make reservations or appointments. how did you do this study and i just ask it because the results feed directly into what your business is all about. >> the fact that it exists chose how big the need is. we have been creating a win-win situation for patients and

health systems for years now. and millions of patients every month find their doctor. what needs to be fixed more often. >> we need to be thinking about access very broadly. if you think about how health care is delivered it hasn't changed much. everything else we do has changed. we get things delivered instantly or within an hour. we have cars at our disposal. everything is much more transparent. >> more than 2,000 patients that you asked already users of the service. >> no, that's a sample of the u.s. population. >> but you guys commissioned the survey? >> that's right. >> i want you to weigh in if you could on the consolidation fever on the hospital end and in the past week or two now we have been seeing every big insurance company talk to each other where the expectation is we'll go from

5 to 3 and then the hospital it's just merger mania. has this been good or bad for consumers? >> so that's still out there. what we see is this is an industry in the midst of change and we frequently see it when it's happening. what consumers are waking up to is it should be a lot more impowered. you'll see that they get a lot more choice and a lot more control and transparency and that's something that is just about to happen. >> are you finding that the consolidation -- let's take the insurance piece out of it but among hospitals that made it easier for people to go see doctors or because there's been consolidation it's harder. have prices gone up or down sf what are you seeing? >> there's a big trend among hospital chains to make it easier. they're growing that part of our bisby more than 100% and we're about to beat that again in 2015. so there's clearly a lot of

awareness and that's something that needs to change in order to be up to date. >> if i made you a regulator on the insurance side would you allow every insurance company to emerge? is that too much power in consolidation or not? >> i'm a commissioner by trade. >> you must have views though. this is your business. >> look i think that the important pieces is the consumers do that now. we see healthy competition among the insurers to try to push the consumer forward. how that specifically turns out really doesn't matter as long as the consumer get what is they want. >> if you're a physician by trade are you troubled that 43% said it's easier to self-diagnose and self-treat rather than go see a doctor. >> a strong lasting doctor-patient relationship is at the core of staying healthy and i do think it's frustrating that this happens because it's too hard to see a doctor.

that's where we need to make structural changes. >> it's not just that it's too hard to see doctors. it's that the internet along with things allowing your company allows us to self-diagnose even when we're not doing it directly. >> the fact that the internet is empowering the consumer is great and we're willing to use digital media and enhance more active patients out there. that's a great tool and we see that all around and these patients are embracing the new technologies. >> as we try to shrink the cost of health care what you're talk about with the doctor the relationship with another human being, isn't that going to be eliminated? won't we all be teleappointing with the doctor? what does that do? >> an ounce of prevention is better than a pound of cure. making sure you get with your doctor when it's time to avert

something minor. that's exactly the way that we can bend the cost curve and make health care cheaper for us as a society overtime. delivering the technologies that can enable that is a must have. >> what's the average co-pay. do you have any idea? >> so it varies widely by the plan and it's another very complex topic that patients don't understand between co-pays and doctor bills. >> maybe that's part of the equation as well of self-diagnosis, not going to see a doctor. people think if they have something that they can diagnose on their own, something minor, why go to the doctor and pay the co-pay and go through the hassle. >> that's a hypothesis. what we see with the rise of other venn use like the retail clinics and the out of pocket costs are higher for the patient. >> it speaks to the desire to get in front of a professional at a time of your own choosing. it's not really a monetary consideration. >> we'll leave the conversation

there. thank you for bringing in the survey this morning. >> most millennials are tech savvy and they're sharing the wealth with their older colleagues. a piece in the wall street journal detailing the many ways they're helping seasoned co-workers with with problems personal and professional. real life specialists are feeling threatened and companies may be happy when tech headaches get solved quickly between generations. >> i know that's been the case here. remember john who used to help fix all of our iphone issues and things but that's probably true for several generations. younger generations tend to have a better feel for what's happening with the latest technology. >> when you said what's happening here i thought you were suggesting that you guys had to help joe with some of the i.t. issues. >> i don't. andrew does. >> we do a little technical support. >> i need the help sometimes too. when we come back this morning a big vote in trade on washington

today. the man that represens some of the nation's biggest manufacturers will join us to talk about the high stakes right after this. later the future of twitter and leadership at the top. adam bain twitter's president of revenue and global partnerships will sit down for an exclusive interview. first as we head to break check out the price of oil. stick around, squawk box will be right back. 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.

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welcome back to "squawk box" this morning. on our planner, three corporate reports of note to keep you eyes on. we're going to hear from blackberry carnival and darden. we have new home sales and the richmond fed survey. and the global news meeting in paris to discuss the ukraine crisis right now. we will bring you whatever news we get from there. scott? >> andrew stocks to watch this morning. sonic shares under pressure. the fast food chain in light of expectations. we're going to talk to the company's ceo in the next hour. trade on the front burner in washington once again as the senate is set to take up the tpa bill today. our next guest says the future of manufacturing in america is closely tied to this deal. he points out that 95% of the

world's consumers live outside of the united states. jay timmons is the president of the manufacturers association. he's here with more now. thanks for coming. >> thanks for having me. >> yesterday president obama made another plea where he laid out he is the president for the middle class and he thinks this is the gateway for making sure the middle class is protected. it seemed to me like it was almost the nixon china moment where only a president who has done so much and said that he's made it a priority is someone who can maybe go and make this appeal. what do you think about that? >> well, the president has been very clear that he would like to have trade promotion authority and we agree. we believe a majority of congress will agree when this is said and done. ultimately at the end of the day we believe that congress wants the united states to be competitive around the world and make sure that we're able to flex our economic muscle. >> even those who might say behind closed doors that they

are in favor of this have had real issues trying to stand up and say they would support it though. that's because there has been massive pressure that's come from the labor unions. that this is a make or break deal for them. you know washington is a political town. no secret there. you've got pressures from labor unions on democrats, you've got some republicans who don't want to give the president this authority because he's of the other party. both of those orgt fairly false arguments. 95% of the world's customers, the people we want to sell our stuff to live outside of the borders of the united states. these agreements give us the ability to access those markets in a way that's good for american manufacturing. >> yesterday elizabeth warren and others made a lot from the idea that just because we have existing trade policies, they have not always lived up to what we thought were going to be the terms of these agreements. >> so with our 20 partners right now with whom we have free trade agreements, we have a trade

surplus. that's the goal of any free trade agreement. we want it to be a win/win situation. but we certainly want a situation where we advantage manufacturers in the united states. >> you think there are enough votes in the senate? >> well we're cautiously optimistic. obviously there were -- >> need 14 democrats, right? >> that's right. and it's kind of tied to trade adjustment assistance and whether there will be a vote later this week. the senate voted on both of those issues together. the house separated them. so we'll have to see how that goes. >> you know the -- >> but, yes, i do think we have the votes. >> manufacturing in the united states, where do we stand right now? some of the numbers we've gotten recently probably in the last six months. what's going on? zblit hasn't been great news but still there is cautious optimism. we had an event here yesterday with jeff immelt and john lundgren of stanley black and decker. and they are very optimistic about the future of engineering

in the united states. they like where we're headed but they also see the obstacles. one of the obstacles is we need to sell our goods to other markets. 95% of customers around the world. so if we can get past those obstacles, we've got a bright future ahead. >> what's going to happen with the exxon bank charter? it factors into what you're saying with some of the very people you're talking about. jeffrey immelt of ge and other large companies -- >> well smaller directly benefit. >> is the charter going to be renewed or not? >> i predict it will be renewed. whether it's renewed by the 30th or not is going to be anybody's guess. bottom line though is who would have ever expected a few weeks ago that you would see republicans voting against the bank and democrats against the assistance? almost like a parallel universe right now. >> jay thanks for coming in. >> nice to see you. coming up this morning, top stories about a solution to the

greek debt crisis. stay tuned. "squawk box" will be right back.

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hope springs eternal in greece. word we're inching closer to an 11th hour deal. at the same time the ecb is raising emergency funding for the banks yet again. they're doing this on a day-by-day basis. we have a live report straight ahead. walmart taking a stance. announcing its pulling all items promoting the confederate flags from its shelves. a look inside the new wave of social activism coming up. and bucking conventional wisdom. author michael wolfe set to tell us why the reports television is dying are greatly exaggerated.

the second action-packed 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" right here on cnbc first in business worldwide. i'm andrew ross sorkin. scott wapner is joining us today. joe is off vacation in europe. in the meantime we've got headlines, congress wants more answers about the recalls of takata air bags that have been responsible for at least eight deaths and 105 injuries. less than three weeks ago a house committee grilled a company executive about the defective air bags. today it's the senate's turn to ask questions. and the recalls have expanded to some 34 million vehicles. "wall street journal" reporting that chinese fund manager separately is now leading an

investment in uber. the backing is said to involve purchasing bonds at a discount to the company's ipo price. that means an ipo could be coming. then finally facebook bumping walmart out of the top ten companies by market cap after its stock rallied on monday. then according to s&p, hasn't ended a year out of the top since 1997. you can see how they've diverged over the past year. let's tell you other stocks to watch this morning. fitbit has risen in all three sessions since going public and it's gaining in premarket trading once again this morning. you can see the stock is up by another 6% or so. dow component at&t was upgraded to overweight from nu central at barclays citing the effects of at&t's purchase once that deal closes. and molson coors has been downgraded. it is basing that on the

potential for a buyout of miller coors unit. the market's getting a boost from optimism about a greek debt deal. but there's controversy. michelle caruso-cabrera joins us live now from athens with the very latest. good morning yet again, michelle. >> hey there, scott. yes, it is controversial. let's tell you what's happened so far and what's going to happen next. this morning the ecb once again extending liquidity to the greek banks. they live to see another day. this is going to be a daily thing with the ecb until a deal gets done. a greek proposal. we started talking about it yesterday. we now know more about what's in it. showed some progress. it's got nearly 8 billion euros worth of measures. the majority of those are tax hikes rather than cuts in spending. mostly on businesses taxing on the rich. some on pensioners as well. and that is going to be controversial.

we're already hearing members saying they're unhappy with this deal. still at this point what happens next is all the european finance ministers get together again tomorrow after they've had two days to look at this discuss it see if there's further negotiations there, and then on thursday the leaders of europe the presidents and the prime ministers, get together and perhaps if things go well there's a final plan by thursday or friday. and then you have a vote in the greek parliament. that could be a hurdle as well. we spoke with an economist from yale who's greek. he had a lot of great observations. one of them is that this feels like we're kicking the can down the road again and again. we've been on this road for years. but finally, he says every single party has been exhausted here. every single party that has made so many promises so maybe now there's real change. >> it took five years to get

everyone through power for people to see that there's only one way to do things. >> that there is no single party that can promise you we're going to end austerity. >> yes. there's no easy way out. there's no silver bullet. every time you promise a silver bullet, you make things worse. >> nobody else can promise that they're going to end the austerity because every party's been in power except for the communists and nobody's been able to do it thus far. so maybe finally going to get some structural changes to the economy down the road here guys. back to you. >> michelle what's interesting about this is everyone's made promises and then backed away from those promises. it sounds like if this holds, if this is the type of deal that we actually get where you're putting up more austerity in the form of higher taxes that may or may not be able to be collected, little structural reform at this point continuing to kick the can down the road. this is a way for both sides to go back and say let's get back

to business as usual where we just kind of avoid reality here and we'll figure it out further down the road. >> yeah. i think that's a perfect analysis becky. you're absolutely spot on. when it will come to a head again is the point tax revenues are so low and the greeks have not got ton the point where they desperately need money in order to pay civil servants and pensioners, et cetera that they've got to borrow from somebody. it's going to have to be the european partner. that's when it's going to force everybody back to the table again. expect that to happen again some time in the fall. those people who are optimistic say the fall. those pessimistic say august. >> i'm not saying you were painting this, but a lot o the reports here were saying this was tsipras blinking. that this was the greeks

blinking. but to me this sounds like both sides. everybody is going to be on the line for more money. so they're essentially blinking too. there are no real tough decisions that will be made here. >> right. tsipras did blink. but to your point of the other side blinking, the way one analyst put it to me yesterday, the greeks submitted something so late and so down to the wire. if they had submitted this same proposal three months ago, it would have been laughed out the door. but they have lowered expectations so dramatically that people were relieved to see what they got. so to some extent you wonder if the greeks were very smart in their negotiating process the whole time. >> thank you. we will be back with you in just a little bit. michelle caruso-cabrera is live in athens for us this morning. with more right now on the greek debt drama and what this means

for the market we turn to tom lee. also james lu. and gentlemen, we have talked about this again and again and again. if things go as they look right now, it looks like we're right back at the same situation so i guess the markets can move on here. >> i think it is. it's a reminder that as difficult the situation's been it is a bit of a side show. at the end of the day -- >> it's been disappointing this year because there's a catch-up trade for u.s. equities. people are worried about the fed tightening but at the bd of the day, we're seeing reflation.

the good rising in the u.s. i think it's bullish for capital spending. >> james, even though you're look at this from the global perspective, you also like the u.s. stocks right now. >> i do. i think earnings will probably bounce back by the third or fourth quarter. i think the situation in greece that's been in global markets is we're not at the 11th hour anymore. we're one minute to midnight at this point. and the biggest decision for greece is it's clearly no deal in the next few days will come -- will fix the problem itself. and as long as greece gets out of the way in the eurozone market and the economy continued to grow the way it has the last two years bb that's good for europe and the u.s. at this point. >> but if we're having this debate a couple months from now, does it matter all over again? >> so i think we just need a precedent for a deal. all of the debt that's been growing in greece the last five six years after the financial

crisis, you know it's basically come to a head. we need a precedent for a deal. we need tsipras varoufakis. >> if there is a deal in greece -- say greece moves to be truly a sideshow. doesn't it put the fed back in focus and back into play? >> i think we all miss the days where we only talked about the fed 24 hours a day. i think it does. >> i don't miss that. that was boring after awhile. >> but if it does why -- >> well it does. but the fed will probably start to lift off by september. even the most dovish expectations are september. >> although the market consensus has just shifted to december. i was just looking a the fed fund futures. >> we're only six months away from fed liftoff. even with the expectations. >> it just depends. if greece gets more messy, then people like you guys tom,

expect it could put the fed on hold longer than others think. >> even if we're talking about liftoff, the fed doesn't want tighter financial conditions right? they really want to maybe have some ammunition for the next crisis. so i think this is going to look more like the early '50s where it's bullish for equities. we're assuming it means correction. >> just in terms of the sectors you like the things you think will finally be kind of pushing things because it has been disappointing. what drives a rally at this point? >> when we think of catch-up rally, one of the good things we are seeing is financials showing a lot of leadership. so i think looking at

multinationals but really oltec is a way. >> why it's taken so long to break out of this. you think housing is good. why do you think that? >> you have to remember the u.s. u.s. -- it ends up being the demographic story. affordability is not an issue. you're seeing housing come back. at the end of the day, if we're talking about two million starts huge impact for s&p earnings. really bullish for any housing related stock. >> james, you say you like the united states you like europe. are there other markets you like too? or are they the most attractive? >> i think they're the two most attractive at this point. we generally like -- it's hard

to find something fundamental to really hang your hat on. i understand they're opening up their market and that's been taken as a positive but that to me is more of a tactical trade at this point. if we're talking to invest in the second half this cycle, it is the u.s. and europe. >> all right. thank you both for coming in today. great to see you. >> thanks. all right. coming up -- >> there's a hot dog in here! just so you guys know. i don't know if they all have them, but this one does. >> drive-in restaurant chain sonic with the latest quarter. but it's leaving a bad taste in investors' mouths. cliff hudson joins us next. then the top states for business, all 50 competing to attract companies and create jobs. but which state topped the list? and later, is the future of television as simple as television? author michael wolfe will join us to see if worries over the death of the boob tube are overblown.

welcome back to "squawk box" this morning. the futures at this hour as we turn the board around you're going to see what's going on this morning. we've got some green arrows across the board. the dow looking it would open up 15 points. we're also watching shares of blackberry this morning. company lost five cents per share for its latest quarter. that's two cents wider than

estimates. the stock, it's actually gaining perhaps because its profit margin did exceed. in the software and tech licensing revenue that jumped. that's the good news. also shares of darden restaurants, they are jumping this morning. darden beat expectations with the latest earnings. it also announced it would pursue a separation of real estate assets into a real estate investment trust which would be leased back to darden. scott? a bit of heartburn this morning for shares of sonic. the stock closing down 6% after disappointing street with growth targets for the year. despite today's slump, it has been a good 2015 for this fast food name. up close to 20%. here to tablg us through the menu is cliff hudson he's the ceo of sonic. it's the largest chain of drive-in restaurants in the u.s. good morning. >> good morning. nice to be with you. >> what is the issue with your guidance that has investors

feeling a bit of indigestion this morning? >> that's goo a good question. we talked about earnings being up on an adjusted basis. in fact we are up 20%. our comp store sales on the quarter were 6.1%. there was a little noise related were company sources strong. we had weather that came back on stores a bit. but 14 consecutive months of record average unit volume for our stores across our system 44 states. so good momentum in the business. there is a kind of some momentary noise about flow through, same store sales, about store openings. the fact is our business is continuing very nicely with store openings. same-store sales, good profit. so a little bit momentary. we're on a good path. we'll continue to grow handsome

handsomely, i think. >> you mentioned some of the markets here. i didn't realize until i did some research that one-third of your restaurants are in three oil-producing states. have you -- what is the impact of falling oil on the economies of where you're doing the majority of your business and the people you rely on to come through your drive in? >> understandable question given the strong presence we've in texas, louisiana, oklahoma arkansas et cetera. the fact is we've seen very strong continuing positive comps in those markets. comp store sales, that is. so we're not experiencing challenges in the business to the extent that the quarter had any kind of noise about that. really had to do with may weather. very strong rains in texas in particular. and for a very short period of time, some dampening of the business. so might have had a point on the quarter in terms of impact.

but as i said, 6.1% for the quarter. still very strong growth. when you think about the challenge, whatever kind of unemployment may occur in a place like houston the fact is dallas pretty well diversified economy. the fact is people still going out to eat and we're at a strata in terms of a $6 check or so in which even if some portion of the population is less employed the price of oil at the pump down considerably versus a couple years ago. this positively impacts 100% of the population and our business as well. >> well your stock is -- >> not something we've seen. >> your stock is up 24% year to date. many of your competitors have done quite well. i'm curious your thought on this whole notion that maybe there's a burger bubble out there that quick serve, fast casual. you slap those names on

anything, you take them public and they run out of the gate. >> yeah. well americans spend 5% to 6% of their disposal income eating out. they've done so for decades. in our situation, 17% of our sales are burgers. which means 83% are not. we sell 10% chicken, 7% hot dogs. 30% are drinks. 10% ice cream. we have a diversified menu. people use us in a variety of ways different than a lot of our competition. so many ways to set up our business at sonic is a bit of a natural hedge towards the setup our competition has. where our competition may be relying heavy on hamburger sales. it's a smaller part of our business. and that's very much part of our strategy. >> and finally you're a franchise-based model. you could expand i'd think quickly. how much do you plan for this

calendar year? >> we're -- we should be growing in terms of new store openings this year upwards of 15 new drive ins. we will also have existing franchisees replacing something on 20 to 30 older drive ins which is good for our business. because even though you're replacing an old drive in the new ones open at 35% increase in sales. very good for the brand. so there's good momentum. our franchisees are reinvesting in the business in a positive way. we've got very good momentum in our business on a sustained basis. >> cliff, it's good to talk to you this morning. thanks for stopping by and thanks for sending food too. we'll see you soon. >> okay. happy to be with you. when we return tom brady set to meet the commish. we've got his appeal on deflategate. plus sears and walmart pulling all items promoting the confederate flag from its

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welcome back to "squawk box," everyone. the u.s. women's soccer team is moving on. the u.s. topped colombia scoring two second-half goals to advance to the quarter finals. alex morgan scored her first of the tournament. and carli lloyd added a goal off the penalty kick as they continue the quest for a third world cup title. they will play china for a spot in the semifinals. and tom brady is appealing the four-game suspension leveled against him after he and the patriots were found to be complicit in deflating footballs before the afc championship game. brady's hearing is scheduled for this morning in new york. earlier this year the patriots accepted the punishment of a $1 million fine and the loss of two draft picks. but brady is fighting his four-game suspension. >> will be a circus on park avenue in front of the nfl

headquarters today. >> and his point is that there's no proof that he's done anything wrong. and he says he didn't do anything wrong. and that he wants to see what proof do you have before i'll agree to a four-game suspension right? >> right. i'll be surprised if it ends up still at four games. >> you think they'll take it down. they're going to ask for all other sorts of e-mails and things they haven't gotten thus far and go even farther with it? >> i don't know. >> anyway. we'll see. still ahead, walmart announcing it is pulling all items promoting the confederate flag from its shelves. as we head to a break, check out shares of disney trading at all-time high levels.

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welcome back to "squawk

box." morning the stories front and center this morning, china's factory activity showing signs of stabilizing in june. two private surveys today suggest the economy there may be regaining some momentum. the u.s. and china are holding cabinet levels this week. they plan to address worries about cyber security following a massive attack of government computers blamed on chinese hackers. a leading privacy rights group wants to prohibit uber from making changes to its privacy policy. to collect nor detailed info. top states for business ranks all 50 states on metrics and ten categories of come competitive competitiveness. scott cohn joins us to give us a first look at what's to come and maybe a little hint for us scott cohn, how are you?

>> i'm good. i'm good here in the top state for business. and if you know anything about this study that we've now done for nine years, you know that we drag this out as long as we possibly can. so the countdown isn't actually going to begin now, but we're going to tell you a bit about how this study works. it is actually really serious stuff. basically the idea is we want to rate the states based on their own standards. so we go through every state's marketing materials. we see what they're using as selling points. and that's how we weight these ten categories of competitiveness. this is how the study breaks down this year. it's the year of the worker. companies are going where the skills are. >> the assurances we got was to invest here we'll definitely have the workforce for you. >> so workforce is the top category in top states this year. we also measure the cost of doing business. we look at infrastructure, the strength and the prospects for

the economy. we measure quality of life technology, and innovation education, business friendliness, the cost of living, and access to capital. we went through all of that pretty fast. you can look at our methodology and read all about our top state study and a lot more about competitiveness at top states.cnbc.com where you'll also be able to see when we get through all of this where your state stacks up. we're going to start doing our hints hints earlier this year. the countdown begins on "squawk box" tomorrow morning with the top five states for business. again, the ninth year we're doing this. this one is interesting this year. >> texas. texas. how many times has it been texas? >> it's been three times in texas and counting. >> virginia. >> so we'll see how texas does this year. >> how many times in virginia? >> three times in texas, three

times in virginia. last year was georgia. the year before that was south dakota. so those are the states -- >> you are wearing a jacket today. so i'm looking at the national weather forecast right now. you're somewhere early in the morning. i know it's high. but you're near somewhere high enough you've got a jacket on. >> but also note it's sunny. it's 7:33 eastern time. >> 6:33 could be sunny. probably not 5:30 or 4:30. >> it's got to be east coastish. >> just remember we're good at misdirection. i could be sweating like a pig under this thing and there could be bright lights messing you up. just koent get too far ahead of yourself. >> texas. >> scott, thank you. we look forward to the hints and seeing you again tomorrow morning. in the meantime, a new wave of -- >> alaska, it's sunny all the time. he could be in alaska. >> could be in alaska. a new wave of social activism taking place in the corner office. walmart the latest in a growing

group of companies taking a stand. they say, quote, we have a process in place to help lead us to the right decisions when it comes to the merchandise we sell. here with us now on set to talk about it jeff sonnenfeld. good morning. >> thank you. >> what does that mean when they say they have a process in place to come to the right decisions? >> for twitter to come to the right decisions? >> for walmart. >> people asking a lot how they're unraveling the dilemmas before them. i think doug mcmillon has been clear. this is a company that was famously shy about engaging in public discourse on social issues. they got into the environmental movement a dozen years ago for a very serious way. and they've also on this issue

of diversity, strong believers. doug came out with a powerful statement. he's led companies like nike and others. hutchinson, the governor would not have reversed course had it not been for the strong voice of walmart. just last week i was with the mayor of little rock who was thrilled about having this kind of cross sectoral support. but what are our priorities? there should be something in their context that makes it fair treatment of employees and their customers as part of it. a second key element is this company have any competence? like they're the world largest grocer. they've got big in nutrition issues and things. and some of the double and triple here they want to bring serious metrics around that. >> how important is social media now? the power it's giving consumers with the paid companies need to

react. >> it's overwhelming. i noticed in the bumpers that you had the confederate flag up and of course issues about south carolina. it's more than a dozen years ago, the time of the atlanta olympics the 2004 atlanta olympics, 2006, whatever. the big push of the business community of georgia with holiday inns leading the way was we have to take out the confederate flag. and if social media had been around then with the force we have today, it would have happened. it took them a dozen years. >> should we applaud just at face value walmart's decision to stop selling merchandise with the confederate flag? or should we ask the question it was okay ten days ago to sell products with the confederate flag but today it's not? how should we be thinking about that in a way our corporate leaders make the decisions? >> you know that's a really tough question and an important one. when companies engage it isn't

like somebody who is a -- running a private company, chick-fil-a. it's a private company. they think they should have some discretion as to who owns it. you don't want to work there, don't work there. you don't want to buy there, don't buy there. when they're making political statements on other people's decisions, this in the ceo of cyprus cyprus. founder of pizza -- dominos pizza people didn't like. a pro-life choice. can you have a whole shareholder referendum? no. but a board should be made aware of it. that's supposed to be representative. that's how you get that backing. the company feels strongly that discrimination is a kbad way to go. >> should we applaud walmart or say it's about time?

>> i think we look forward. some companies have taken awhile to wake up but this is round table in general that sent out a decade of social engagement political engagement. i'd rather celebrate the fact that the round table is around what they should have had. some of the most progressive voices in society used to be the founding generation of the business round table. we went through a sad period where they were missing a chance to engage. i think walmart and nike's engagement of course tim cook and apple has been very involved. if you take a look howard shultz, of course, he jumps on these issues with sincerity. not all of them work. >> the starbucks example in particular, howard shultz faced a backlash with the writing on the cups about talking about racism and kind of forcing everyone to do that. there's a point where it feels forced. sometimes it feels the companies are wrapping themselves up in the commercialization of it and the positive aspect.

i'm not saying that about every situation. i think it's great when corporate leaders do take a role and say these are important steps they're looking for. but there are times it feels a little fake for the consumer. and i think that's what you face. >> howard has been concerned about headache about disengaged populations, the society around the world. he's been concerned about jobs in america. and in this case of course race. when he takes on one of these issues, they take it on with a uniquely starbucks approach. so they're not working a large group of like minded companies. they really think they've got a better way to handle it. >> do you think it comes off as lack of marketing? >> i think it's lack of training. you ask the tough questions and asking people how to cure cancer and how to bring peace to the middle east, there's a lot of ethnicity and social conflict. a lot on understanding groups.

but retrospectively they came out with training guidelines. i think it was a good intention. >> you saw newspapers trying to promote the whole thing. >> there was a backlash. some people thought it was exploitive. but were people really trained to make progress on the issue. so i applaud howard shultz for the spirit. the execution was the problem there. but i think it's great to encourage companies that do this. and if u.p.s. went into parts of this country where blacks and whites weren't legal to work side by side they said that's not the way we live. >> you applaud that. >> we applaud that. and sometimes we have people on the set who will rail away how -- those were u.s. businesses who championed that saying we want an even playing field. i think it's great when u.s. companies take the high ground and set a great moral example. >> i want to just ask you about

twitter, corporate governance and succession. we keep rondering and questioning what's going to happen at twitter, what the succession plan looks like and rather it's good to have dorsey in the temporary role. does it create more distraction? does he really want the job? how do you look at that? >> you know that's a really hot one right now. we're seeing so many ceo succession issues right now on the agenda of corporate america. how can you have a board of eight people where prospectively four would have had the title of ceo. you have three priors. half the board. so if you add another voice or two, but still. and the rest of the board are ceos of former companies. it's an odd thing to set up. there was one time in dupont's history, they did once have -- >> you can't help yourself. >> i know. five prior ceos on the dupont

board. one challenged me on that many years ago. he was wrong, i was right. when they decided to make a big move, that ceo jefferson, if you got all the old-timers to go your way, nobody was saying that's not the dupont way. but that's the exception. it's like elon musk this exception. how can you be ceo of two public companies? it's rare that that's a good idea. >> what's the right answer? would you not put jack dorsey in this position? what would you have done? >> i would have asked two of those three to step down. they say they want somebody there, they're all good for an advisory role. what you're doing, you're contradicting three if not all of your predecessors because these people either your age or younger messed up as ceo. so you can't pretend to have a normal environment. and the dignity of your predecessors. so you're challenging your

predecessors. it's hard to counteract what your predecessor's decisions were. had to reverse jack welch. he waited until jack of course left before he did it. it's hard to do. it's not a good idea. they could have somebody in an advisory role. you don't need them there as a sitting member on the board. >> all right. thank you so much. >> thank you. when we come back this morning, we'll tell you about some stocks to watch including shares of blackberry spiking on the company's latest report. plus bucking conventional wisdom. author michael wolfe is set to el us why old is once again new in this digital age. stick around. "squawk box" will be right back. automotive innovation starts... right here. with a control pad that can read your handwriting,

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welcome back to "squawk box." among today's stocks to watch, blackberry. the company missing on the top and bottom lines. but its tech and software license jumping from a year

earlier and profits above expectations. when we return today, old media, new tricks. author michael wolfe is set to tell us why worries over the death of tv are greatly exaggerated and how digital could be doomed. stick around. "squawk box" will be right back. checking out the listing on zillow i sent you? yeah, i like it. this place has a great backyard. i can't believe we're finally doing this. all of this... stacey, benjamin... this is daniel. you're not just looking for a house. you're looking for a place for your life to happen. zillow.

welcome back to "squawk box" this morning. in a new book today, michael

wolfe argues that tv is in fact the dominant media genre and digital media he says is doomed. joining us to explain is michael wolfe, author of "television is the new television: the unexpected triumph of old media in the digital age." he's also a columnist for usa today and the hollywood reporter. it's great to see you here. we have not seen you in quite a while. >> andrew it has been a long time. thank you for having me. >> i like you've written an entire book saying hopefully you'll be able to keep doing this. >> still have jobs. absolutely. wolfe -- so the cable business. >> this is sort of a scandal. we came to believe that digital media was everything that we were dead. why did we come to believe this? dijal media doesn't make any money. television, you make tons of money. >> god bless. >> i want to believe this so badly, michael. then you look at the big advertisers like a prospector &

gamble or somebody. companies putting more and more of their advertising budget towards digital. and that will vempbleventually where the profits take over. >> no it won't be where the profits -- there may be a lot of money, but not the profits because that money is spread more and more and more spaces. >> there's probably a top three or six of the digital sites that they're k loog at whether that's a facebook or a google. >> yeah. but they're doing it in more places on those sites and spreading it among more eyeballs. at a lower rate. so -- but the interesting thing is as digital media has become a holy advertising supported business precisely during that time in the last really 15 years, television converted itself from a business that was wholly supported by advertising to one that's just half supported. >> we've seen what's happened to music. we've seen what's happened to

newspapers. why doesn't that -- in an unbundled world, why doesn't that happen to tv? >> you know i think the real answer is because tv executives are bigger -- they're tougher. television has held to its model. against everything. as newspaper, as music went free print went free television said you have to pay us. >> but doesn't the steady mark of technology ultimately undermine that? >> so netflix which always says it's disrupting the television business. netflix pays the television business and hollywood $2 billion a year in licensing fees. ultimately the principle is would you pay me for my product? the digital model has been you have to give us your product for free. >> and i love that thought

process, but is there -- is it fair to say the titans of the television today may not be the titans of tomorrow? content may still be king and they may win along those lines but would you bet the future on who the leaders of the past have been? >> you know at this point in time i'd bet on les moonves. >> what about the new guys? do you like vice? >> i think that's an indication. the flip side of this all of the digital guys what's their dream? it's give me a cable station. so i think vice is smart. because they're doing into the television business. buzzfeed, if it has a hope of making business it will find itself into the television business. >> being bought by a television company? >> i think either/or. as an independent i don't think

they have any future. i don't think they think they have a future. although if they were to go the vice route and find themselves back into the television business maybe. but just not as a digital stand say loan. >> you just mentioned les moonves. some think that viacom does not have a future. would you bet on viacom having a future? >> well it certainly has a future. the question is does it have a future as it is currently structured. will it be sold? i think everyone waits for the unveiling. >> right. would you comment? because i don't think you've been here for awhile. you wrote the most recent book. >> i did. what do you want to know? >> i want to know your thinking on it? >> i can tell you everything. >> all right.

tell me everything. >> i mean rupert has said for 20 years he said one of my children is going to take over this company. and against -- actually fairly great odds because his children kept quitting on him and his executives kept forcing them out. then it looked like one of them would even go to jail. but somehow he has positioned them there. moved aside his executives put his children in place, his two sons who don't get along with each other by the way and who don't like much working for their father. >> you think they don't get along? and do you think that then they both end up running the company or does one of them try to knock the other one out? >> i sat with rupert for a year in one of the themes was him spelling out scenarios about what his children would do to each other to better each other and take the other out. and who would ultimately come

out on top. >> there you have it. >> good question. >> the story keeps giving. >> okay. the one and only michael wolff. the book is called "television is the new television." congratulations. >> thank you. coming up investor and businessman glenn hutchins is our special guest for the next hour. plus software vet tom brings into the utility age.

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investor businessman, and new york fed board member glenn hutchins is our special guest this hour. from the market's big rally to drama in greece he will share his thoughts on the issues that matter most to your company. boeing under pressure. a lawsuit file bid four flight attendants claims they knew about fumes. facebook revealing new tools as it looks to stay ahead of google twitter, and others in the mobile ad market. ♪ live from the most powerful city in the world, new york, this is "squawk box."

>> welcome back to "squawk box" here on cnbc first in business worldwide. i'm andrew ross sorkin along with becky quick. scott wapner is here sitting in for joe. we are about 90 minutes away from the opening bell on wall street. dow looks like it would open up higher. nasdaq looking like it would open up about 11 points higher. let's also check out the markets in europe at this hour. things look -- by the way, if you'd invested in greece in the past day oar two, you would have done okay. the index up a little over 4%. let's get you caught up. there is market optimism right now being driven by hopes for a greek debt deal. but the biggest obstacle may be here at home where people are

angry over prime minister tsipras. we'll hear more about that. michelle caruso-cabrera is keeps us up to date. right now we are 30 minutes away from the durable goods orders. economists expecting a 1% increase in orders from may. and paris is the latest city to bid for the 2024 summer olympics. it joins the ranks of rome boston and hamburg. a few stocks on the move this morning. darden beating expectations with its latest earnings. the olive garden parent also announcing it will pursue the real estate assets into a reit which would be released back to darden. blackberry given a boost despite a wider than expected loss. the company's revenue slide is beginning to slow and a turnaround is starting to gain traction. and sonic shares under protection. full years earnings projections came in light of expectations. walmart and sears say they will stop selling products bearing the confederate flag.

the decision coming a week after a white gunman shot nine dead at a black south carolina church. the legislature is set to meet today and officials are expected to rally outside the capitol to call on lawmakers to vote on removing the confederate flag from the grounds. the flack removal has the backing of the governor. >> there will be some in our state who see this as a sad moment. i respect that. but know this. for good and for bad, whether it is on the state house grounds or in a museum the flag will always be a part of the soil of south carolina. but this is a moment in which we could say that that flag while an integral part of our past does not represent the future of our great state. >> and a walmart spokesman says the company does not want to offend anyone with the products its offers. our guest host for the hour is glenn hutchins. he's a board member of the federal reserve bank of new york

and a director of both at&t and nasdaq. he's vice chairman of the brookings institution. he is director of the harvard management company. >> what doesn't this guy do? >> i love the new set. glad to be finally invited. >> finally invited? you've been invited for awhile. >>. >> we've been watching what's been happening with greece. the markets have been keying off of some of this stuff. do you think that -- looks to me more and more today there is going to be some sort of deal reached but looks like a face saving deal for both sides and they are just kicking the can down the road. >> i think there are two pieces of perspective to keep on greece. greece is only 1.3% of europe which makes it less than .3% of the global economy. it's more symbolically important. that's the first thing to understand. >> more symbolically, however, if they were to leave, that would be the first time there was a pathway for someone to

leave the eu. >> that's what i meant by symbolically. then we've got britain having a discussion about europe and the customs union. i think that's a much more substantial question in e the end b. but so the first thing is this is -- containable though it could be messy for awhile. it's not the lehman brothers of the globe. secondly i think we have to remember that greece is -- has some very serious issues. saying it has the potential to be a failed state. the greek economy is down about 27% in a global depression a great depression none of us experienced. hearing story after story about lack of medical supplies people not able to feed their families. so the suffering in that country is real and something we should take account of. it's not something we should

just say the germans were right and go forward. so as a result of which a deal that takes account of both sides. but conditions that europe has to keep europe together and to -- why it can be plexable in respective degrees, but with respect to what they call primary surplus. right. but take account of things being worse. when the original deal was struck, it was a good one. i don't think that's kicking the can down the road. maybe longer terms. >> i agree. some of the things we're hearing about this morning, austerity in the form of additional taxes. that doesn't seem like this type of things that are at all going to be generating any help for that economy. what you need to see are more of the structural reforms. things like raising the retirement age beyond the age of 56.

>> i think that's how you generate tax revenues right? but if you look at one of the things with the greek economy, 16% of the gdp is made up of government spending on mention. united states our entire government budget is a little over 20% of our gdp. so funding that in a different way by getting people to retire later or having more tax collection or having greater pension contributions is obviously critical to a long-run health of greece. getting them to do it in some shorter time period might be counterproductive, but putting them on the path to get there is necessary. or else they can decide they don't want to be in europe. >> right. >> the other is a decision on greece's part whether they want to be in europe. that's going to be dramatic and messy. it's going to have a lot of political sort of back and forth. but they have to make that decision. >> when we look at the broader markets, we have been looking at

the nasdaq sitting at a new high. we've been looking at the s&p and the dow sitting just off of their all-time highs. i know you are not somebody who comes on and talks about this is where the market is going tomorrow and this is where i'm placing bets. but when you look at valuations at this point, how do you think they measure up historically? >> only fools predict equity prices and rate levels. but also i think -- i put the two together. i think the big issue in the markets today is the scale of rate increases. >> interest rate hikes from the fed. >> yeah. equity prices are high for two reasons. one is the price level, the return for alternatives. cooperate performance has been good. i think the latter is going to continue. because i don't see any fundamental problem in either corporate performance or economic performance. so the real question is what happens to the path of the price of alternatives? when do rates go up and at what level? now, my personal view is it's likely to be -- this is the personal view.

>> not your fed view. >> not my fed view and not even my wife probably agrees with me is likely to be later and longer. because i think -- >> later and longer like 2016 longer? >> well -- i'm sorry. later and smaller. i misspoke. that was redundant. john williams and the san francisco fed says he thinks there will be two rate increases this year. my guess is they would be relatively small. you have the timing and scale of the increases. but two points i make. one is that we will continue to be in a world in which the policy makers are making data-dependent additions and are mindful of what they do the impact it has on the markets. i think the economic performance so we can talk more in length is likely to continue to be muted because of weak labor markets. we can talk about why that is. unless you get jobs translated into incomes and consumption being 70% of driving gdp growth

you're going to get gdp weakness. and that will mute in addition to muted inflation the kind of economic data that will be necessary for people to look in and say we've got to increase rates. point two, when you look at historic data it takes about a 5% ten-year rate to have a meaningful negative influence on equity prices. and we're a long way from there. where the rates are as high any time soon to begin the influence of the equity markets. given company performance, i'm relatively sanguine. >> is your personal view because you did use the word later at first that you don't -- do you think there should be? >> i'm not going to get into should. that's a policy maker's decision. but what i'm thinking more about is when do we get to a level of

interest rates -- because i think it's good to begin the process of normalization. we have been at zero rates since 2009 nap is an experiment of global first impression. >> right. nobody's done this. we don't know how this ends. >> and there's a bunch of young journalists following this stuff who think that's the normal course of things and they don't realize how unusual it is. beginning the process of normalization and testing whether or not the economy can get used to that and absorb it i think is really important. but my point is what i'm thinking more about is getting to some number that looks like 5% of the ten-year. and this could be 4.5%. let's call it 5%. where you have a negative reaction between interest rates and equities. where that begins to have an impact on markets. that's what i meant by late. i don't see that happening any time soon. that's my point. >> glenn is our guest host. he's going to be with us for the rest of the hour and we have a lor many to get to. so stay with us. coming up when we return tom sibel knows systems.

they are now buying tech analytics to the energy industry. he's going to join us after the break. take a look at what's still to come this hour. including a look at how facebook is trying to make better mobile ads. "squawk box" returns with that and a lot more in just a moment. seven out of ten power outages 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. 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

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welcome back to "squawk box" this morning. the futures right now are looking higher. you've got some green arrows. dow looking to open up 38 points higher. s&p up 4 points and nasdaq up 11 points. oracle expanding computing offerings bringing the company into more direct competition with amazon. it is a major new step for oracle. shifting database and management businesses to the cloud where of course amazon web services is the market leader followed by microsoft and ibm. keeping the lights on is a much tougher job than ever as utility grids are upgraded to smarter technology at great cost. tom siebel was a software entrepreneur at siebel systems. that's a company he sold to oracle back in 2006. currently he is the founder and ceo of -- you are a tech

entrepreneur. the two of you, tell me again. you were inducted at the same time. >> american academy of arts and b sciences. i felt like an imposter. tom deserved to be there. >> i don't know. >> we want to thank you for come oing in and talk c-3. i'm interested in this because a friend of mine was working for the company c-3 and started talking to me about it and what you all are doing. i was very interested in it. why don't you tell us about what the company does. >> in a nutshell the infrastructure worldwide is going through an upgrade this decade where $2 trillion is being invested. all the devices and the value chain remotely machine addressable. like the smart meter, the thermostat in the home the transformers, vibration sensors. it's becoming a fully connected sensor network. and so we basically built a software platform you could think of as the operating system for the smart grid.

and so this the what you're looking at is what we call a large scale cyber system or this would be like the internet of energy. so we could apply the sciences of big data cloud scale computing, analytics, and machine learning to includes the safety, increase the reliability, increase the security lower the cost and reduce the environmental impact of power generation delivery. >> efficiency as well? >> huge. there's 30% energy efficiency just through optimizing all the signals. >> this is something -- capital expenditures are big for the economy. but what you are talking about is very different. this is not upgrading existing systems. this is replacing all of that. am i right to say it's replacing it with cloud-based technology. all the hardware in the systems today would be largery recognizable by westinghouse or thomas edison.

and it's in lead and copper. but all those devices are being upgraded. you can remotely sense their state in realtime like the smart meter. okay? and so we're basically providing a software layer on top of that $2 trillion upgrade that allows the groups, state grade in china to optimize the entire energy system. >> you got interested in this because of something you were thinking about philanthropy. >> that's a great question. this began as an philanthropic effort in 2006. we spent four years doing research and holding conferences at m.i.t. northwestern berkeley princeton. we spent years looking at the subject before we started. and we were looking with a

philanthropic eye. >> and right now your competitors in the area are who? >> the way we're looking at it is what we call a large system or the internet of energy. nobody is looking at it this way. this is like when we did siebel systems. i think we legitimately invented the market when we did that. nobody thought about it the way we're thinking about it. so we're -- the way we're doing it, there isn't a competitor. so there are point solutions. but nobody's looking at the entire system in one big bite. and so the data sets -- i'll give you one example. in italy. now it's 1 million smart meters. for the system there we're aggregate aggregating trillions of

gigabytes. nis was unthinkable. >> as you're telling your story i can't help but think of someone hacking into the grid. do you worry about that? should we be more worried than maybe we are about that kind of thing? >> i think this is the 800 pound gorilla in the room. i mean we are looking -- if you look at kind of the hierarchy of needs as it relates to civilization, energy is a foundation. no health care no transportation, no commerce. nothing happens. and we have a great infrastructure in the u.s. and actually worldwide today that is entirely exposed, entirely vulnerable, any ten bright students from uc berkeley could bring down the northeast corridor in a week. so everybody knows it's exposed. and i don't think anybody's going to do anything about it until there's kind of a 9/11 type of event. which will happen. hopefully the damages won't be

too great. and $100 billion a year will be invested. >> i'm sorry i asked. >> you're saying it so matter of factually. >> it will happen. i don't think there's any question. there are some bad actors out there and it's too exposed. it's too easy to do. and there are some bad actors. and, i mean you could -- it is expected for that. it will be you know highly delicate. >> you think people are taking it seriously enough? >> there's very little investment going on in cyber security of the critical infrastructure in the u.s. there's talk about it. every now and then, you know you get somebody in the white house or congress talking about it. but nobody's doing anything about it. >> thoughts on sales force? you're a crm guy. what do you think should happen to that company? should they remain independent? >> you know i have no opinion on that.

i think they have invested well. they've done an extraordinary job. and i applaud their efforts. >> we'd love to have you back to talk more about this. especially the cyber security issues. next time you're in town stay for longer. >> thanks. coming up a new lawsuit against boeing claims the company knew cabin air could turn toxic. it's been alleged for decades, but now four flight attendants are suing after three of them passed out on a flight. details next. and later, facebook trying to figure out how to make better mobile ads. unveiling a new interactive feature this morning. julia boorstin takes a look at what the new tools will offer. "squawk box" will be right back. ♪ mamas, don't let your babies grow up to be cowboys ♪ ♪ don't let'em pick guitars and drive them old trucks ♪ boys? ♪ mamas, don't let your babies...♪ stop less. go more. the passat tdi clean diesel with up to 814 hwy miles per tank.

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poisoned flight attendants are accusing boeing of knowingly endangering flight attendants and passengers. phil lebeau joins us with more on this story. >> this is going to be an interesting suit. this is being filed by four attendants of alaska air against boeing. here's the story and why they are suing boeing. four of them were on a flight in 2013. three of them passed out. they are alleging there were toxic fumes that were fed into the cabin of their plane. the lawsuit claims the bleed air system which ventilates the air system, they claimed a seal

inside the engine can leak burning oil and mixes with the cabin air. here's one of the flight attendants talking about what she experienced in 2013. >> the next thing i knew i was on the galley floor and the other flight attendant was on the pa system just mumbling incoherently. >> we know boeing has known this problem exists since the early 1950s. they've known there's a problem. they know there's fume events. they know there's contaminants that come in from the bleed air. >> as you look at shares of boeing over the past five years, we should comment they are not commenting on this. in the past boeing has been asked about the safety of the cabin air inside of its airplanes. they said cabin air is safe to breathe. research has consistently shown that cabin air meets health and safety standards and that contaminant levels are generally low.

the flight attendants suing boeing are asking that the company put in air detecters. essentially which would alert the cabin crew and the pilot ifs there is toxic fumes inside of an airplane. they also want boeing to cover their medical expenses. back to you. >> all right. >> thanks. when we come back this morning, durable goods data and much more from our guest host glenn hutchins. as we head to a break right now, take a look at the u.s. equity futures. dow still indicated up 30 points. s&p up by 3.5, nasdaq close to 10. k about. that's where at&t can help. with the tools and the network you need to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most.

welcome back to "squawk box." rick santelli here with breaking news. down 1.8% on may durable goods. that is the headline number. if we strip out transportation it improves markedly. gives you a clue where the number power is. we're up .5%. pretty much as expected. we're up .4%. actually, i take that back. we are up .4% on capital goods orders. on the shipment side we're up .3%. let's go through revisions. down .5%. it was already revised to down 1%. that down 1% now moves down 1.5%

on headline and if we go ex-transportation, they took .8% away from up .5% to down .3%. and on the order side from .8% down to .3%. so revisions are big and they're negative negative. this number as i said on the headline isn't very good. ex-transportation it goes to about where we'd expect it. the market is defining this as kind of a tough call. we did see yields move up to 2.40. but it has dipped down a bit to pretty much exactly where it was before the data was released. 2.39. so now let's go back to the desk. it's all yours. >> thank you so much. rick santelli for us with the data. steve leisman is here to break it down. glenn hutchins is also here for the hour as well. so --

>> well i was just -- >> what was the comment? >> rick is right. how to define this is beyond me. i feel like the girl in exorcist. my head went around three times and what happened with the pea soup. forget that. but the proxy went up. bad it was revised down, the prior one with. we know boeing had a tough month. the headline number here is essentially a report on boeing. they only delivered 11 aircraft in the month of may. it seems like from this report manufacturing is still challenged. and that's really the story. does not seem to have gathered its feet the way the rest of the economy has from the winter months and what happened in the first quarter. the consumer seems to be coming back. housing seems to be coming back. manufacturing now seems to be dipping. and we've had some negative reports there. i'm encouraged by the automanufacturers and the sales there. that should -- we still, i

think, are having two factors inside manufacturing. the decline in oil prices a big part of the top end of manufacturing growth was oil sector services and equipment. the other thing is the dollar. which i think is still working through making american goods less competitive. >> why did it tick up on this news? >> i didn't see that. i don't know why they would be higher. this is a 2% -- we have to see what happens, how this works in. we'll do a cnbc wrap update later today. my guess is this is going to cause the gdp forecast to come down. we've been running 3.1. it's a confusing report. i do want to move on though. the former fed chair had some harsh words for the current treasury secretary. saying he was appalled by the proposal to take hamilton off of

the $10 bill. >> this is bernanke on jack lew. >> yes. and we have a guy here glenn hutchins our guest host. bernanke said hamilton was without a doubt the best and most foresighted economic policymaker in u.s. history. it's a tough call. everybody thinks it's a good idea. do you do it as the expense of the great treasurer of the united states alexander hamilton? >> no. i think andrew jackson should be the one to go. he didn't want a national currency to begin with. the more interesting question is who's the woman. and i think it ought to be abigail adams. >> why? >> because she was her husband's equal partner as a founder of the united states. all the other people on the bills are founders. i think it's obvious it's abigail. >> you said obvious before and that was not obvious to me. i need to learn more about history to keep up in this conversation. >> what's the chance by the way, this doesn't happen on the

$10 bill? $20 is not available right now, right? because they're not redesigning the bill. >> they want to bring it in for the anniversary of the 110th anniversary of giving the women the right to vote. >> bernanke said there's a bureaucratic inertia behind this move and it's going to be difficult to stop it. i guess the point is that i don't think economists who are the one who is are l like alexander hamilton get a vote here. they don't. >> you think it's becoming or unbecoming of -- >> we have an author on tomorrow of a book called "coined." he's going to talk about how money is a reflection of culture and society. how in indonesia, there are birds and flowers on there. and we in america -- it's a reflection of our society, it's a society that's been stuck for a long time. when was the last president to be on a coin? i guess it was probably kennedy,

right? who was on the dollar coin right? it's been a very long time since we've had anything contemporary on there. and it's -- this should be reflection of our culture. alexander hamilton not so much. >> i was going to say is it becoming or unbecoming of ben bernanke to be criticizing a -- >> well, he works for him. at your institute. >> i'm just saying you don't hear the former treasury secretaries or former fed governors talking about what the interest rate should be. >> but the gloves are off for bernanke. i say let him talk. >> i think that's right. >> it's great entertainment, yes. >> i think it's good that someone that thoughtful in experience has a point of view and shares it. i think it's terrific. >> we should move on to one other topic which is reforming the fed. senator shelby is out with a bill. if you don't mind for a second i want to show you the results of our cnbc fed survey. wall street support twos.

the first is the fomc having control over interest on excess reserves. the second is the idea the fed should release the transcripts in three years, not five. but they do not support the idea of the new york fed president being approved by the president. do you think the shelby idea is a bad idea? >> no. i think the shelby idea -- shelby proposal has some good parts and some bad parts. i want to think of this more broadly. as we think about fed reform two pieces. one is hotly debated, lot of hard-won compromises in dodd-frank. big question is why are we taking it back up again? important issue number one. important issue number two, as we look at new proposals you have to take three things into account. we have a safeguard the powers being the last in a crisis. and we have to retain unique

public private, regional national structure. that's uniquely american and descended from our history. and one of the things alexander hamilton fought to create and jackson fought against. the last thing is we have to understand we live in a world in which institutions like the fed are required to be transparent and we need to make sure we do that. so the proposals if you look at each of these through those particular lenses seeking those three and a half let's say, i think most ofindicia. those things are innocuous in implying. if you get into something like let's have the president of the united states appoint the president for the new york fed, it looks like an innocuous proposal until you see we have a fed system where we have a regionalized system with power shared between private and public interests including local

regions of the interest. those are important to preserve. those are one i would be be opposed to. >> glenn is going to stay with us for the rest of the program. steve, thank you. when we return new ad formats from facebook. julia boorstin will join us with that. here's a look at facebook stock. it's up nearly 4%. company now in the top ten biggest companies by market cap. find out who fell off that list when "squawk box" returns in just a moment.

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welcome back to "squawk box." news alert at this hour. governor powell seeing the liftoff at early as september. talking at a "wall street journal" conference. he says the dollar is stabilized as well as oil. and only transient effects have been pulling down u.s. inflation. it looks pretty upbeat here. positive signs, an uptick in participation. back to scott, i think you were wondering what caused interest rates to tick up. >> that was my point. if durables were disappointing, why would rates be ticking up? >> but fed governor center of the board sees rates going in september. >> explains a lot. stocks to watch today. facebook. yesterday's rally pushing the market cap above $238 billion. making it one of the nation's

ten-largest companies by market cap. out of the ten, walmart which traded at a 20-month low. and at the advertising festival about ads from the future and what to expect. julia boorstin's got a tough assignment this morning. nice to see you. >> hi. >> oh you're in l.a. i thought you and kayla were over there together. >> not from cannes. but with a window on what's going on in cannes right now. chris cox giving a sneak peek to executives of facebook's vision for the future of mobile ads. cox saying the companies responding to the demands for more immerseive and creative tools. how to enable too blend video, still images. what makes it different is the format is interactive.

you can push your finger on the screen to turn the watch around or zoom in for more details. the ads will be designed to blend in with videos in users' news feeds and to load faster. this new format plays into two areas that are helping propel facebook shares up nearly 30% over the past 12 months to near an all-time high. mobile which is now 33% of ad revenue and video ads one of the most valuable ad formats. they're considered a key way of luring over dollars from television ads. now, this new format will also help facebook continue to stay ahead of lots of rivals including twitter, snapchat and instagram. all of which are amping up their mobile and video ad options. no word on when the tools will be widely available to advertisers or how soon consumers will see the interactive ads in their news feeds, but i expect by the end of the year. andrew? >> thank you, julia. before you go quick thing. it seems like you need to have a relatively new phone? somewhat pretty fancy phone for

this to work? if you have an older phone whab do you do? >> well facebook is keeping that in mind. obviously this looks cool really interactive. but they're trying to keep the format adaptable to old fashioned feature phones. what they're doing with that for instance video. we saw some video in that demo there. what they're going to do is allow some of the older phones to allow you to pan across the photo. it's lower tech stuff but still feels interactive. >> all right. julia, thank you. when we come back this morning, p. diddy in a bit of hot water. that story's next. plus jim cramer joins us from the new york stock exchange. we'll talking about what to expect at the opening bell. looks like things are still in the green but barely. dow futures up 15 points s&p up 2, nasdaq up by 6. what if there were only one kind of dog? then it would be easy to know everything about that one breed. but in fact, there are over three hundred breeds of dogs.

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sean combs otherwise known as p. diddy was arrested yesterday and charged with assault with a deadly weapon. he was involved in an incident at a ucla athletic complex. school officials told the news the victim was associated with the team. combs was transported to the

l.a. county sheriff's department inmate reception center. the alleged assault apparently involved an exercise ball with a handle known as a kettleball. no one was seriously hurt. there was a lot of he said in this situation. the california police department is investigating. meantime let's get down to the new york stock exchange. jim cramer joins us now. mr. cramer love to hear your thoughts on greece this morning. we had some upgrades on at&t. we got an at&t board member here. maybe we've got views on that. we have the interview with ceo of sonic. everything is on the table. what do you want to talk about? >> i thought sonic was good. we got to read the comps, it wasn't that bad. greece i think the next focus is going to be in athens they're going to give these guys a hard time for whatever agreement. maybe a new government has to be formed, all that drama i'm tired of. i think the at&t upgrades, sure a deal closes, people looking for a new stock. tired of verizon.

i'm looking at verizon. we have tim from aol coming on today. things focused on durable goods, a little week. but you knew there had to be someone who to be someone who came out and said we need a rate hike. that's well-timed. >> we also saw in the upgrade, or sort of -- it's an upgrade, right, of the airline industry. >> initiation of the airline industry. >> i thought the american part the negative one at american was interesting. doug parker kram on mad money and basically caused a crash in this group. i think the delta bay is the one that's most salient. spirit has fallen but delta has a lot of things going for it. i like the call. there are many people who have downgraded to american. i think it will be the last number slushing and people will say five six times earnings you have to buy them. >> all right, jim. thanks. >> when we come back we'll wrap

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glen hutchins is our guest host this hour. he's focusing a lot of his name on philanthropy with his family group and we want to talk about that but i also want to tech about tech. what's going on in that world? >> the highest valuations out there are the post venture preipo valuations. there have been ipos that have been down rounds. those are the ones where if you're making those investments, you have to be careful. i can't generalize but that's the place to be careful about picking and choosing. >> how bubble ishs is it right now? >> that i can't predict that. you just have to look at -- you have to try to do fundamental valuations using customary metrics based on what you think is a reasonable projection for

the company. some companies that don't have predictable cash flows, those are sort of bubble like. others people thought when facebook went public that was a high valuation. look at where they are today. they had good growth characteristics. >> one thing i know you care about being someone who focuses on technology now doing your work at the fed and we talk about employment. how much is technology going to displace technology and what do we do? >> i have a different point of view, and we don't have a lot of time but i think work is fundamentally changing. some of it's technology and some of it's something else. we went from a farm economy where people just worked to an industrial economy where people had jobs. and now we're moving into the information economy where work has a different character. some of it is enabled by technology. some of it is enabled by the fact that we have a different

economy and put those together and we've got much more independent contractors, much more part-time work and people involved in what i call a gig or project-based work. >> is it good or bad? >> it depends on your perspective. if you expected a full-time job and now you have to put together pieces of work that's bad. if you're struggling to enter the economy and all of a sudden you have entry points you didn't have before and ways of extracting value from your car and home it's good for you. it's hard to generalize. there are two or three things are that are important about it. one is it does increase for some people a certain amount of economic insecurity. i don't know if you've seen the jpmorgan report on income and spending volatility but it's really interesting in terms of how that occurs and 47% of

americans, if they had to spend $400 in a month, they would have to borrow money or sell something. there's some kind of income insecurity out there that's translating itself into consumption in economic growth. that's one of the reasons why i think our growth is going to continue to be a bit more mute bud it's a complicated topic for a different time. >> so you're a student of american history, clearly, by your knowledge and understanding and opinion on who should be on the bill. >> right. >> you obviously care about what's going on in the economy. who are you going to support for president? are you going to support hillary? >> clinton clinton?hillary clinton. >> probably not a surprise. >> i worked in the white house. >> would you go back to work there if she called? >> next so -- next question please. >> let's talk briefly -- >> i think there are lots of

people that do those jobs and i'm having a lot of fun in any life tight you. >> we saw you are yesterday -- >> we were at jimmy's funeral yesterday. i've known him for years. what struck me was on this show we talked about his great business accomplishments but the funeral was much more about his devotion to his family and his service to his community. and so that was, for me an important take away from that. it's a lesson for our lives as well. one of the thungings my wife have done is built out our family foundation. she and i have been involved in service activities all our lives and we now have the opportunity to create some structure around it, so we've built that organization, put a staff together, have three major projects, education, public policy and health care that we've got underway and it's

been a very rewarding exercise for us. >> before we let you go away we brought up with framer the upgrades with at&t. what do you think about the upgrades? what do you think about what's happened with at&t's shares? >> i want to give a big shout out to jim cramer. we've been buddy for a long time, and i want to congratulate him on his recent wedding. well done cramer. at&t over the course of the last 12 months will have spent about $100 billion huge investment in largely not a united states and in the transition of our economy to a wireless technology enabled economy and i think the market is starting to figure out how that's going to translate into real economic business. it's the reason i joined the board of the company because they're doing things like that. >> thanks for being here.

it's been a pleasure seeing you. >> thank you. >> i think we see you later this week, scott? >> we shall see. i'm not going to see you this week. >> we're not? >> sorry. >> have fun. >> sorry to leave you hanging. >> it's been great. that does it for us. right now it's time for "squawk on the street." ♪ >> welcome to "squawk on the street." we are hoot the new york stock exchange. s&p is eight points shy of a record on the belief a greek deal is days away. core durables were reassure. powell this time says the stage might be set for a possible septem