investments. he is a very good man. >> gentlemen, it has been a pleasure having you both here today. i always love it. please, come back soon. dick, ken, we really appreciate it. >> always fun. >> it is always informative. >> love having you here. >> tune in to power lunch. in the afternoon. >> that does it for us. make sure you join us tomorrow. right now, time for "squawk on the street." good thursday morning. welcome to "squawk on the street." i'm carl qintanilla with jim cramer and. the dow's biggest drop in the month yesterday. no deal in greece. some of these headlines might make you think we won't see one tomorrow. personal spending at a six-year high as consumers take out the wallet. the ten-year and oil, we will

get inventories today. investors keep a watchful eye on the news out of greece. >> murdoch takes the stage after we reported he will get the top job at fox. where he thinks the media industry will be in five years? >> steve easter brook, how he plans to win over customers one meal at a time. stocks are rebounding slightly on the heels of the selloff. transports back in correction mode down nearly 11%. greece in the headlines negotiations with the prime minister going on in brussels. better than expected data in the last half hour. personal spending rising by the most since august of '09. x gas, year on year, 4.4. >> you have to go to this conference call yesterday, stewart miller. you would think that things are back to where they were before the great formation. household. spending on a home. first-time home buyers are off

the charts versus where they were. i'm talking about a major shift in the american psyche. if the fed wants to move it can move. this is the demographic shift we have been waiting for. these people are spending more. it is a better time. >> now, this is a new position for you. >> yes, it is. >> i want to make that clear. you and i had that conversation about the fed in the past now. you are saying okay. >> it is a new position. it is absolutely true. i get it from listening to k.b. homes talk and from stuart miller. it is basically a return to where we were before. if we have a return to where we were before but we are doing it in a measured way without a lot of bad loans, virtually, no nonperformers. i have to say go ahead. after greece is done take them up. >> meanwhile, though dollar continues to march higher. >> that i'm not crazy about. >> these transport, they are not rallying. you have got icon selling his big winners, not to mention

saying multiples are extremely high. questioning nongap earnings and saying they are even higher than they appear. it is all fueled by cheap money. maybe we do get more of a reaction than we expect. >> it is gary comb's podcast. >> goldman has been doing a lot of podcasts. >> they have become podcasters. he said it could be interesting after the fed hikes. there is no doubt about that. i am just saying that a demographic shift and people buying homes which then triggers a lot of spend is a good thing. the rails have a lot of secular problems. look at where the coal stocks are. what is the biggest cargo for rail coal. ag. lis stone that monsanto call yesterday. what's the second biggest, ag awful. what else do they ship? how about things to be able to drill. how is drilling?

>> awful, fracking sand awful. >> there aren't enough play pens. they need sandboxes to have a major comeback. >> if times were good with he would be talking about how buffet calls the rails the true sign of american economic activity. >> when you see what williams is doing and the pipe going up that rail business for oil is going to go away from the next five years. >> i am hearing a lot of murmurs about energy deals. i'm not talking pipelines. >> i gave you -- >> i'm talking oil and gas. >> remember i gave you 5 in the 3 hmos. you laughed. >> i didn't laugh. >> you looked askance. >> no, i didn't. >> that's very possible that that could happen. >> what are you going to give me now? >> i am going to give you it is either going to be a marathon mro, which is the exact same price it was when oil was at 43. that's ridiculous. i'll throw out a bp.

yes, bp could happen. these stocks are down solo. darko could happen. >> by the way, i don't want people to start jumping on this stuff. >> bp who buys bp. >> oh i don't know. you could. >> it is only 130. >> an exxon or chevron cob a buyer here. this is when you do it. when you look at the prices of these oil stocks and you look where they were during the dark days in march when oil was at 43 and almost every single one of them is about he low, including exxon, where they were. that means the down side is figuring in. it is going to be deals galore and it will happen while you are away in july. >> i am not going to be away. i will be around. >> good. because the deals. marathon was at 31 just in may. >> we didn't talk about this off camera. so this is conversation now. i have been hearing from any number of bankers and lawyers,

nothing specific but just energy. >> independent energy. maybe not apache because they have a new ceo in january. maybe not noble, davisson doesn't want to sell. i am looking at companies that i perceive to being dead in the water, nobody really cares about. a bunch of new ceos in the oil patch. they are unlikely to sell. devon, can go easily. >> we are writing all these down, jim. >> we'll stay on top of this. speaking of companies of size, citi calling the top on netflix on the heels of that company announcing 7 for 1, edging up to $700. citi down grades to neutral and says it is hard to top raging bull. netflix shares nearly doubling this morning. you can't talk about netflix without talking about what icon said yesterday. $2 billion in the bank on that trade. >> look, the judge had a big show. i saw a lot of people angry at

jim cramer on twitter that icon did this. when the stock was in below 100, he said buy it. up to 700, he sold it. what is a person supposed to do. how much money is one guy supposed to make for you. icahn did this for you. he gave you the buy. he gave you the sell. >> you can't say anything about it other than great trade. amazing. >> by the way, owned it for years. over three years, 3 1/2 years. >> september 12th. low print at that time was 54. didn't metal in operations or strategy. just took it for a ride. >> initially, when he came in they were very concerned. what is he going to do, try to get us sold? things started moving in the right direction and he sat back and enjoyed the ride. >> i don't think that was a

revel revelatory a call. >> i thought his apple call made him more bullish. he said apple was in its early earnings. it would be like a $2 trillion company. if you think apple is having a real good quarter. i think cell phones are good. that's a lot, because samsung has blown up here. >> i god thet the same refrain. carl has been saying that for a while. it is still worth listening to. he has usually had a pretty good call. >> it's just a short. >> he seems to think so without a doubt. as he says, it is a no-brainer. >> queens. what block, jelly stone boulevard? >> there is a report arguing that netflix viewing will surpass abc cbs, nbc, fox by next year. that doesn't take into account

dvr or online viewing. it will be the most popular live audience in the country. >> it has to be. when you see the down grades they are guys saying listen i have made a lot of money for you here. they are saying, international tracks traction cob ancould be an issue. what they make resonates even more overseas. we always made movies that resonate overseas. csi and queens he probably booked that are for four years. he sold it before it was even done. queens. >> it is going to be riveting. >> it is about you. >> about me. >> that will be beautiful. i'm just saying that we've always been good at that. just so happens that netflix produces content that is loved in china. it is something the chinese are still taking and they are not trying to knock it off.

they are not doing house of majon. james murdoch, next ceo of fox with rupert murdoch retaining the title. he predicts digital viewers will see less interrupted ads in the future but more targeted and engaging ads. in five years, he says we won't differentiate between traditional television and streaming. much will be over the top, which is coming more quickly than ever right now. >> slowly at first and then suddenly. we may be getting in the suddenly part. >> did you see what carl tweeted yesterday? the numbers away from sports tv. >> a chart of just in the demo. year on year for the big

broadcast networks. >> double digit. that really means people just saying you know what i'm watching my netflix now. i'm not watching the csi. >> it's negative. >> okay nci. ll cool jay. my daughter called him mr. cool jay. he said you can call me ll. it was like a whole bizarre conversation. mr. cool jay. >> spell that. when we come back mcdonald's trying to win back some customers. we will hear what ceo, steve easterbrook said about his turn-around plans. >> later on with he will talk with citi's chief economist. yesterday, the dow had the

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in an interview on the "today" show, ceo of mcdonald's spoke about how he hopes to improve the brand standing one customer at a time. >> there are lots of little things. 27 million customers today if you are doing a better job tomorrow than today, 27 million people notice. the business is challenged at

the moment. at the heart we are a burger company. >> some of the pegs were they made a promise to the clinton global initiative to improve. milk and juice up 8% sodas and happy meal down 9%. >> i think the important thing here is technology. they have to get you in and out more quickly. they have to bring the goods to your car. the overload at the drive-through window is unacceptable. everything has to be done faster and fresher. we don't care about natural and organic when it comes to mcdonalds. we do not care how mistreated or treated the cows are at mcdonald it's. those people are not focused on the pigs being mistreated or treated. they are focused on time to market and freshness. >> you have not been kind to the burgers at mcdonalds in your description. >> i said one of the things that patrick doyle did to get dominos 10 to 112 was to admit his food

tasted like cardboard. >> we were just talking about this full page ad in papajohns. comparing their menu to chipotles. >> they have higher cost because they are caring more about the way animals are treated. if mcdonald's cared about the way animals were treated then are big mac would cost $12. >> a lot more. >> they can come back with freshness. they have to time the market. they have to do affinity. i go to starbucks and i can wave my phone now and it pays for it. you do this at mcdonald's and they say, what are you doing that for? what is that? they have to make it so we once again feel at mcdonalds that we are wanted. at chipotle they know my name. it is kind of like cheers. when i go into cheers and chipotle they know my name. i can be norm. >> or cliff, maybe cliff. >> mcdonald's has to make it so when you come in there, they

say, david, instead of yes. >> that's not going to p ha. >> don't bet on it. >> other news this morning, barry diller's iac announcing that it plan toss spin off the match group. here is what mr. diller had to say when he joined us last month in an interview. >> in a match group, we have got dozens of dating services that go from very narrow niches to extremely broad niches. match.com is the broadest. cupid is very broad. they all probably eat off of each other but the thing is people tend to use multiple services. >> including, of course tinder which may have a value as high as $3 million. >> i did speak with mr. diller. i said why now? he said because the time was simply right. it is the eighth spinoff that we are doing.

it reinvigorates the machine, what's remaining. they are only going to spin off less than 20% initially. unclear over time. typically, as is the case with them, they spin off more and create completely public companies such as expedia he says, these assets that we have in the company, including home adviser or vimeo, they may come to fruition. we are also going to have $2 billion in cash. it left us at iac. this does give a value to the match assets. tinder is a key part of them. 500,000 500,000 subscribers he told me this morning. he believes he has a good young leader joey belieflevin to run it. >> it is not just dating it is rigorous algodating. the success of match is

extraordinary. i have never used match. i can tell you that the numbers that they have and the lack of divorce. they have got numbers about divorce versus no divorce, they are extraordinary. i can tell you this is a premier property that is demonstrable if people have successfully gotten married and stayed married. >> there was some speculation they were forced to do this because there was a put to them from tinder's founder. mr. diller told me there is no truth to that at all. it was simply the right time. the assets are at a maturation process where he feels they are better served run separately. >> when i did my work on them i said, hold it. this is worth the price of the company. >> tinder. >> you just call them and pick the phone up. hey, david, how are you doing?

>> also, ceo, jeff kip leaves. >> what do you make of that? >> i have nothing. down to the opening bell one more look at the proo he market as we await what is certain to be a day full of tape bombs regarding greece. more "squawk on the street" from the nyac straight ahead. being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience.

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we have about seven minutes for the opening well. you want to talk accenture. >> this is one of the most consistent companies that no one talks about. they really crush the numbers. the problem, they have got 10%. 10% for a 4 x hit. numbers are much better. i was looking for 1.23. they came in at 1.30. they have amazing growth. they raise the growth rate from revenues from 8 to 10 or 9 to 10. this company is still not expensive. i always find that any time you do anything in spell check, it always comes out can. so every time i say it it is like can, acn, amazing consulting company. you know i love sap. they don't compete. i love sales force to come. accenture is a company that

should be like. it is like ibm without the hardware. >> you know why it doesn't get talked about. they are so nonpromotional. they are just beating the numbers. in terms of the other side not beating numbers, bed, bath and beyond. it had spiked because of private equity chatter. it doesn't fit in in the sense they have to do brick-and-mortar and omnichannel. they are being squeezed. it remains a good company but in the big pan apli of retail oh they are going to get a bid tonight. they didn't. people who play that game david, play with matches. what happens? what happens? >> you get burned. you do get burned. >> private equity has been reluctant for the big, big

deals. this he they are not a part of this boom. >> we will be talking before the bell or after the bell. nothing incredible here. we have to check in on the various potential consolidation opportunities. a lot more squawk in the street coming back after this. almost surreal what happens when greece's negotiations with the rest female announcer: time is running out to get the hottest deal on a new mattress. sleep train's 4th of july sale is ending soon! right now at sleep train save $300 on beautyrest and posturepedic mattress sets. plus, pay no interest for 36 months on tempur-pedic and serta icomfort. big savings and interest-free financing? these deals aren't just hot, they're explosive! sleep train's 4th of july sale is ending soon! ♪ sleep train ♪ ♪ your ticket to a better night's sleep ♪

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you are watching cnbc "squawk on the street." opening bell in a few minutes. what a day. personal spending pretty good. a deal out of greece. quoetd quoting officials as saying, no one wants to budge. >> apparently, my understanding of the talks is greece is saying, they are finally doing the michael krolione. you are just going to forgive our debt or we are going to forgive it and give you the hair cut. that's where apparently they are. they are basically saying listen, you are just going to crush the debt and you take the hit or you are going to get hit by us. that's not palatable to the germans. the greeks don't care.

>> the times about even if they were to do some of these reforms. increasing corporate tax. what would that do to the companies that employ greeks. operating costs would skyrocket. >> the germans moved it down. >> the germans wanted something in return that is substantive. the greeks have hardened their position and said, look, 300 billion in debt make it $100 billion in debt or we are going to take it. >> what do you expect from them? >> the plan failed. the greeks want a martial plan. we gave the germans a martial plan for heavens sake. they are going to get it. we just need it over with. >> personal spending, .9 beats an estimate of .7 income in line repeat of what we saw in april. the savings rate has come down

to .51 from .54 in the prior month. claims continue to be very modest. up only 2000. at the bottom of your screen. down here. consumer credit recording agency, tran transunion celebrating. if the nasdaq new york musical theater festival celebrating its 12th season. we mentioned the down grade of net flicks by city. amazon gets one of its own. >> that's another one where people say it has moved along. it goes up when the economy is slower. let's move off it. these are stocks if you speak to retailers. stock goes up. the big retailers have to meet comp stores. amazon doesn't meet anything.

people feel amazon has played out. i don't feel that way. >> you picked marathon as the second biggest gainer on the s&p right now. is that the cramer effect. i should have said connie co. connie cocould go but they have more net gas. marathon is cheap fleet oil. a lot of people wanted to talk chesapeake. take a look and the back is not gas. >> interesting we got those things. >> again you want to caution people, deals take time. the larger the size sometimes the more difficult it is to get to the finish line. you are dealing with an underlying commodity that can move rather violently as we know. that said you are hearing names and i am hearing general consolidation in these sectors. >> those who advise on these things. we'll see. obviously, we don't know that something is close. >> no but it is big. >> i'm hearing either one or two and it is big. i'm looking at who is big.

con conaco is big. i left off objection dental. there is a new ceo. i can't imagine she is suddenly going to flip the company. >> new ceo is typically not the case other than kraft. >> on the giago stuff that you brought up i will tell you, nothing, there is no truth to 3 g having any interest in diageo. >> why are they upgrading? >> i don't know. maybe don't know. >> nothing dpg on there at all. >> five upgrades at a time when the business is going down. how is that? >> i don't know. i don't know. >> somebody else. >> who is another name for it? >> i am not dpg to make up a name. what do you think?

i'm going to be in there and say necessarilies. i am not going to do that. sun tourry. i am not going to give you that. they have gisness and johnny walker. red, green, yellow. johnny walker crayola. sienna. johnny walker. crayola colors. no white. lily is the best gainer. price target from 74 to 101 for a company we used to complain about, the pipeline. >> people say they have got an alzheimer's cure. an alzheimer's cure not just an alzheimer's treatment treating the symptoms. that's what's driving it. you have a july meeting. this is the chatter of a lot of

the big -- not the hedge funds. the mutual funds that really has the silver bullet that merrill noticed. very interesting. it is understated. that's why lily has been going up. you killed deageo. that's not 1.28. thanks a lot. >> it is called reporting. i don't know. >> don't ever let the faks get in the way of a good story as some of our competitors would say. >> i think this note is very interesting. they got a good pipeline. you have been left for dead. you take a look at that stock. it has been percolating. it is all alzheimer's, not when biogen came out with its announcement and added a gigantic amount of points. i'm putting it out there right now. >> they call it a catalyst rich event for the next 12 months. >> eli lily is packed. >> they had a terrible patent cliff and they have solved it. this is what ian read should have been doing at pfizer. lily has done it. in indiana. >> science. >> science. >> enzymes.

that is not so much focused on their tax rate. >> no. didn't want to get back to the hmos which are almost a daily exercise here. humana shares are up for the first time in a while. if you have watched them they have been down rather sharply of late in the belief amongst investors that perhaps there are not going to be as many interested parties as there might have been when the company was put up for sale sometime back. the beginning of june the end of may, somewhere in there. while i hear from people familiar with the situation that there are multiple expressions of interest that doesn't necessarily mean that that is going to show itself as multiple bids for the company. certainly, etna is expected to or is known to be interested and is in there. how much longer we have in this process is unclear. it could be perhaps sometime still but it is described as

alive and active. it is a strong business particularly when it comes to medicare advantage and how quickly it is growing. the concern is what is the multiple that i am going to need to pay for humana. as we have said many times, while etna is interested cigna is now the recipient of a bearhug from anthem while looking at humana, they seemed to think the multiple was too high and therefore the senorgiesin irgies are available. you would expect cigna's deal for etna would include the need for a shareholder vote. i did want to correct one thing. yesterday, i indicated an expectation that etna might need a shareholder vote were it to move ahead with the deal for humana. looking at the numbers again and speaking to people it is clear that etna could lever up its balance sheet to a point where it does not need a shareholder vote. where as more than 80% of the

consideration would be in cash. i did want to clarify and correct the record on that for myself. because, there, you have unh. this just keeps going around. >> hawumana is considered a great business by many. >> the quarter. >> a lot of these guys are looking athe ' looking at '16. >> what if the supreme court everybody says. this is not a supreme court business whether they say yes or no. >> finally, ncr shares are down. it doesn't appear to be going well. there are three bidding groups comprised of various private equity funds. it doesn't work out that well when they all try to get together.

a big check they would need to write. there are a few weeks knowing how many people are going to make bids. will there be zero or one or two? they are in the midst of heavy diligence. when you are talking about a three plus equity check that needs to be written, you need a club deal. club deal is frowned on. >> is it done? >> i don't know. >> they are trying to sell the company. they will see. a private equity deal. we will see whether they get there. they have not. they just haven't been there on these big deals, bed, bath and beyond. they don't want to write the big checks and it is tough to get the leverage beyond six times. >> let's say you really believed in funding and lending club, goldman moving in that business. you don't need atms. it is kind of all virtual. i think that could they be that

visionary to see that brick and mortar is going away. speaking of bed, bath they missed by a penny. limited brands i see fire eye, web bush and a few others. >> when you go over the bed bath, this is a cryptic company. they don't have a conference core where they go over everything. they say, we are giving her all she has got. they are still buying back stock. this stock got ahead by takeover talk. i am saying that that quarter wasn't that bad. decent on there there was nothing in here that said mfrmths for"m" for sale. >> it was the worst call of the year. >> blackberry was it that was the worst. >> i'm nominating that. i'm giving it to jim cramer. >> there was another one he

hated, carl. what was it is this said it was just like a lot of them. >> you really hated one. we'll come up with it. dow is up 34. home depot is the top performing component. bob is on the floor. modest start. all ten sectors led by health care and biotech. we want to talk ipos. this is the biggest week of the year. we want to talk about what's going on. it is a very mixed picture now. eight, the price, only six have made it. we have a big crowd out in front of the transunion post. let me show you the ipo scorecard and get a mix of that. one is priced above. that's going to be a big winner today. middle of the range, one, transunion. one priced at the bottom of the range, below the range. you can see three of them below the range. one of them postponed and one of them missing in action. we call that missing in action

that's cnx coal. that's a pretty poor scorecard overall. what's happening is there is a push back from people saying there is too much product and there are a few winners and a number of losers. trans union. this is the big deal today. 650 million. the big credit reporting company, 21 to 23 was the price. priced toward the high at 22.50. we don't have any other indications. millacron holdings they priced at the low end. wayne farms, the big chicken processor, they were postponed. maybe some concerns about chicken prices and exports due to avian flu. gener8 maritime sea port transportation and cnx coal, day to day. it was supposed to price and

apparently has not. elsewhere, health care ipos, three of them glaucos, indications are 27 to 29. bottom line things are moving up here. tonight, we are going to get appfolio xactly and seres. finally, dow transports are making a nice little comeback today after a terrible day yesterday and a lot of issues there with the railroads. my thoughts are, the railroads are really doing very well right now. pricing is going up. the concern here is the way the business is being changed structural. a lot of coal and reduced shipments in the transport area.

let's go from stocks to bonds. let's head to the pits where santelli joins us. good morning, rick. >> good morning carl. income up 0.5. to find a higher number you have to go back up to august of '09. that number is 1.3. that's the context. how did the market do. rates didn't go down. if you look at a two day of 10s, right around 8:30 eastern, we couldn't take out yesterday's high, which is just shy of .241. we had an auction yesterday. today is the last auction, 29 billion. the curve is 5. very important on everything specially the yield curve. notice the new guy did trade up a little bit more aggressively

on the better than expected data. the chart of the boom why is this important? getting close to 90 bases points. a lot of hoopla there after quantitative easing began. there has only been two settlements above 90. 95 and 98 were around the first and second week of june. you want to watch out for boons. whether it is fives versus 30s. maybe the curve i had done steepening. maybe it is flattening. fives are down or up four base points. sideways, sideways sideways. 110 and 115 are the big levels to watch. carl back to you. >> when we come back a closer look at netflix' red hot runs. he has looked with founder, readed hastings. supreme court has yet to hand down ruling on obama subsidies

or same-sex marriages. is today going to be the day? we will get a live report from outside the court.

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as the supreme court's term winds down nation waiting on a number offer cases, including those involving obamacare and same-sex marriage. hampton smith is outside of the court where we expect a series of rulings. >> seven cases and counting. as you mentioned at the top of the list the future of health care subsidies, under obama care will they be available in all 50 states or just those states that set up their own exchanges? that's the decision the high court has to make. if the government loses and the challengers win, about 6.5 million people in 34 states would be immediately impacted. of course, there would be a ripple effect in the health care

insurance industry. we know in recent weeks, president obama has been reluctant to talk about any kind of a plan "b." while the congressional republican leadership opposes all of obama care and wants it repealed this he reallyey really have not come together on a specific plan "b" for what happens if the subsidies go away. the other landmark potential ruling, the question of same-sex marriage. does it become the law of the land in all 50 states or does the supreme court find a way to leave some state bans and some state options in effect? a second question. what happens to marriages in other states. do they have to be recognized whether a state allows same-sex marriages to go forward or not. on the other hands, anything short of a landmark decision gets very complicated as far as the ripple effects. a case the utility industry

might be looking for, michigan versus the environmental protection agency the power over the epa to regulate specifically, the epa in this case not properly consider the impact of costs as it was promulgating its regulations to lower greenhouse gases impacting the utility industry. also, a very complicated capital punishment question involving lethalle injections. we should know in less than an hour which cases with he get today. not a bad day carl to be waiting on history. >> is there a trade around this decision on the aca? >> it is so limited in nature that the trade would be when the stocks are incorrectly hit. the people who just attribute

this as, this has got to be bad for you, it doesn't really impact these. that's when you get your opportunity. someone might sell hca. that's wrong. it is okay. there is a lot of misinformation about how important this decision is. you have to buy and get hit. >> we'll get trading with jim in a moment. we'll bring you up to speed on some of the ipos that are opening in a moment. "squawk on the street" will be right back. can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a redesigned cabin of unrivaled style and comfort. the 2015 c-class. at the very touchpoint of performance and innovation. 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?

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they say that monster sales, the coca-cola distribution is going to fill it through. $165 target. it will get there sooner rather than later. this company has been hurt very bad in terms of market share because of the int rungserruption of the systems. all his energies behind monster. very big from here. the biggest disaster we have seen in a long time, not to test the two quarters ago conference

call is mei. they do sensors for automotive. there are more question marks. they have literally 15 things they think may be going wrong right now. pricing concessions with automotive the uncertainty of the european economy. it is bad because it is bad. it is not a mistake that this stock is down that much. this is a bad call on a momentum stock. do not ascribe this to mobile eye. mobile eye is still okay. those who say am morrell la should get hurt by this amborella. >> waiting for better indications on transunion. glaukos did open the company works in medical technology on glaucoma. >> there are more companies that needed to be able to do glaucoma. there isn't anything really

good. i have a company on tonight, gm phrma. this is a company that the shorts are great. it is a gigantic short position. it is a class one felony. it is a class 1 company to develop marijuana. this is a u.k. company. there are multiple people with m.s., a lot of reasons why this drug works to kill pain. this is an oxycodone replacement. that's how you want to remember it. >> you finally said enough with the gmu phrma. so i switched to diageo. >> jim cramer of csi and queens. cocreator and chief economist, willem buiter. the watch is on to see if the

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street." i'm carl quintanilla along with sara eisen, david faber and post 9 of the new york stock exchange. market still on edge as we do not have a dealous of out of greece. we should hear any minute now if there will be rulings on obamacare subsidies or same-sex marriage. if it doesn't happen today, could happen tomorrow or even monday. in the meantime the economic data here at the states pretty good. personal spending coming in at the highest level in about six years. take a look at the markets. dow hanging on with a 29-point gain. s&p is up about two. >> citi's chief economist, willem beiter will talk to us about the situation. >> the ceo of nielsen weighing in on how they are handling the changing landscape of television and streaming. >> what mcdonald's ceo had to say about getting customers back in the stores. >> we start with the market.

a pretty volatile one as the greece saga continues. as they try to stave off default. should investors be able to share the worse. the man coined with the term gregsit. are we actually going to see a gregsit. do you have to factor in that scenario? >> the immediate threat should not be reached by the end of this working week so that greece can do its repayment of the imf on tuesday. the worst thing that could happen is the imposition of capital controls, deposit control and default by the greek government on its imf commitments. this would undoubtedly be a huge

negative for greece and also a negative for other countries because of the possibility of sovereign default would be back in the forefront of people's minds and asking who is next. actually gregsit is not an event but a process that could take months or years. that can be reversed at any time should a different government come to power in greece or a different coalition be put together in greece. >> it sounds like you do see this as a real risk. it seems odd. you are much more familiar with the politics of this than i am. when mario has repeatedly said the euro is reversible and the german chancellor has repeatedly said she wants to keep greece in the euro what does that say about the credibility of the common currency and the entire continent's economy? >> i think you are absolutely

right. the real risk is not the short-term financial market impact of a greek default or even a greek exit which could be managed with the existing tools of the european central bank. the hyperactive level of qe and the european stability mechanism. it can purchase in the bank in the primary market. we can handle the financial crisis. we can no the handle the damage to the european integration. it would be the first time since 1951 that a treaty based on that would be reversed. it would be a disaster. i think it is unnecessary. i am amazed actually at the degree to which both the european and the imf negotiators

are willing to take it to the brink at i was expecting it from the greek government. i was not expecting this down to the wire ready for the abyss way of negotiating by the institutions as they are now known. >> they appear to the point that you are making getting more aggressive with greece over the last 12 hours. that perhaps is the story of what's going on. in this country, certainly, the equity market doesn't seem to care very much what is happening to greece. where as on the other hand people like you, people in the know, care daep lie. central bankers care deeply. my question would be if we get capital controls and they limit what the greeks are going to be able to take out on monday and we veer towards a situation that is quite dangerous for greece do i buy the market at that point? the only reflection reaction from central bankers on both sides of the atlantic will to

presumably be to further flood the system with cheap money. >> yes, that is true but this will be palliative for the immediate financial damage. so i think the financial damage to stock markets specially and to bond markets outside will be limited. there is no doubt countries that have programs before or are highly indebted like italy. who is next and who could be next is the question. the whole european integration process will have a huge question mark behind it should there be actual greksit. >> this argument is very very well rehearsed. the nervousness on the part of people like you who deeply intel intellectualize it is very

clear. can we assume it will be so decisive to cut that debt that that becomes a buying opportunity? >> selectively, yes, i would say for probably stocks but for government debt, i don't think so. i think the risk will be mitty gated but not eliminated. it is likely to happen in the euro area and get into the other liquid asset markets, including bunds. long-term, it is bad news. the whole european integration process is at risk. the exit from the eu could become a more likely event as a result of the technically completely unrelated risk. >> given all these risks and it sounds like from you they could

extend for several weeks, potentially months and maybe even years, can the federal reserve go forward with lifting interest rates this year? >> they can only respond to events as they unfold. if peace breaks out in greece and the can gets kicked down the road to the end of the year there is a temporary extension of the current program. the fed, i think, will proceed as one would expect them to proceed as if nothing had happened. clearly, if things blow up, in greece there will be a flood of money into the u.s. doll arear. the dollar goes through the roof. that will become a seriously dampening factor. if it were to materialize, then the safe haven for the dollar would cause defect.

it would have to happen. >> well yes, we will see what happens. certainly, a lot of alarms that you are sounding there. thank you for joining us as always. >> willem buiter, the chief global economist out of citigroup. we are getting some rulings out of the supreme court. let's get to hampton. our first decision of the day involves a housing discrimination case in the state of texas. the court upholding the ability of the government on a widespread basis to use data as a foundation in bringing housing discrimination lawsuits. this is a case that was being watched by mortgage lenders as far as the standards going forward and their potential susceptibility if you will to lawsuits involving around housing discrimination going forward. the first ruling of the day. month are to come. back to you. >> hampton, thank you very much. we may come back to you in a few moments. let's check in with bob pisani on the floor.

been a busy day in terms of ipos. the floor is more crowded than usual, bob. >> the biggest day of the year for ipos. a very mixed report card. let me give you the winners. here is the big one right over here. glaukos. trading right around 29. there is the big winner. we are waiting for transunion to open the big credit reporting company. they priced this morning at 22.50. i would say that's a moderate winner as well. very mixed over there, already opened a while ago, generate maritime sea crude transportation. it is trading now around $13. a very mixed picture. i want to point out, eight ipos were scheduled to price. two of them did not, been postponed. the important thing is some of

the other ones that are out there. we're still waiting for them to open at the nasdaq. we'll give you a full report a little bit later. guys, back to you. >> we are getting a decision on king v. burrwell. the obama decision. hampton is at the supreme court. >> the bottom line. the government wins. obamacare subsidies will be available in all 50 states. here is the key opinion from chief justice robert. 34 b, the irs regulation. tax credits are available to individual states that have a federal exchange. the lawsuit on the other side was saying they should be only in state-sponsored exchanges. another key phrase from the chief justice's opinion, the argument that the phrase established by the state would be sue per flew us if congress meant to exchange tax credits to both federal and state is unpurr sway sway sieve.

a huge victory for the president and the future of obama care sub subsidies coming forth. lots of reaction coming. >> an immediate effect in some hospital names. hca up 6% tennant up 9%. they said the opportunity would come from the decision went the other way. a lot were punished unfairly. that's the opposite. >> the hmos, where we have spoken so often about consolidation, carl being the key, are also responding very positively. u unh up almost 2%. certainly, if the decision had gone a different way, investors might is to recalibrate their expectations. that is not going to happen. the question is is this the final challenge to the aca? this is the second big supreme court challenge that it has

weathered and unclear what comes next. >> probably not the final challenge. >> this was a very important one and one that many believed if it had gone the other way would have dealt a significant blow to the ability to deliver. >> we want to take a closer look at the stock impact. we are seeing a big one. bertha coombs monitoring some of these health care names for us. >> hca had written an amicus brief saying if the subsidies were thrown out, it would have been absurd consequences that would have resulted. hca in its first quarter only saw 2% of its revenues from people on obamacare plans through those exchanges. they did say they have an awful lot of exposure. a number of analysts said, in terms of the bottom line this year wouldn't have been an issue. the industry has really committed to this process. the insurers have invested in infrastructure to handle all these claims and be able to int

act with the government. the hospitals went ahead when they were negotiating these deals ahead of this bill saying all right, we will take medicare cuts, because we will make them up with more people being insured and getting more volume. so the health care industry was hoping and expecting that the supreme court would come down on this side. they were very concerned and said this would cause an awful lot of disruption and way too much uncertainty if it came the other way. a lot of concern in the sector. so much consolidation going on. the rollout of the affordable care act put a pause on that for a couple of years as they all figured out how to maneuver and position themselves. now, as they look out, 3, 5 years. they think they need to consolidate and they need scale to really be able to handle the

growing influence of government health care. >> the hospital stocks are rising because they are compensated claims have fallin so dramatically, down by almost a quarter under the present system. over 6 million americans receive subsidy through the mechanism that has just been okayed by the supreme court. arguably, many will also be relieved because they don't have to deal with the fallout. let's get back to hampton outside the supreme court. >> that is it for the day. for the record, the vote was 6-3. the chief justice and justice anthony kennedy voting with the courts for liberals for that 6-3 decision upholding subsidies in all 50 states as part of the affordable care act. back to you. >> the final line of the argument here. petitioners claim arguments are strong, meaning those that are contesting the aca. but, this is robert's writing. the context and structure

compels that this section allows tax credits for insurance purchased on any exchange created on the act. to avoid the type of calamitous result that they meant to avoid. interesting when you are talking about any law that has some kind of statutory construction. it is a federal and state relationship. it might go well beyond the a.c.a. >> it came down to four words. it was the four words that would guarantee these 34 exchanges that were created by the state. it was by the state. that was what the key was. i think the 6-3 is a surprise. it wasn't even close. >> the court says it must read the words in their context for the overall statutory scheme. many people believed they had a strong argument the government here, given that. the court agreed joining us this morning, anna gupta, senior health care

service analyst. she joins us to talk about the decision. >> thanks very much. good morning. >> walk us through what's important here. >> i think this was surprising. the street clearly expected that the ruling would be favorable for the government. the stocks were trading pretty much in that manner. very positive for the health care facility stocks. the stocks are rallying very nicely on na news. not as much of the fundamental incompetent pact for the managed care names trading on merger speculation. it takes some of that uncertainty out of the equation for managed care as well. >> ana, you and i had this conversation two or three days ago where you were pointing out the rev into you for the big health care players was actually quite small. what was at stake? >> the revenue was not that big. in particular, the margins have not been very favorable as you

know because of some adverse selection, very very stringent regulations. in the public exchange arena that has kept the profitability for the manage care names at low single digits at best. many of them such as humana which is potentially up for sale, is also losing money on exchange. so this is not that impactful for managed care in the big scheme of things. >> it was interesting to hear sort of the words leading up to this and how doomy and gloomy the insurance industry really was on their warnings what this would do saying obamacare itself would enter a death spiral with costs rising for a shrinking number of participants. explain just how big of a deal it is for the actual health care law as it relates to the insurance industry? >> as far as the insurance industry, a united health care the largest health care insurer,

stayed on the sidelines in the first year of the obamacare, in fear of inadequate pricing and fear of the downward spirming. in 2015 the insurance companies as a whole have become far more positive on the growth potential. it is not the biggest growth driver for the health insurance industry. that being said it does offer potentially as many as 16 million plus insured lives that were previously not available to them. even at a low single digit margin, it is a nice positive. the other side of the equation just to point out, is that the employer market has been slowly mixing into public exchanges. as this law is upheld it just gives smaller and mid-size employers, in particular an alternate channel of purchase that is more retail than market.

>> this court concludes that the limitation would prevent the rest from working as hope. it rewrites the law to make tax credits available everywhere. >> we should start calling this law scotus care for ska lee a. >> we had all written it off in 2012 after the individual mandate was upheld as a tax. clearly, the ideological think tank are still coming up with new challenges. whether the supreme court takes it up again a third time is unknown. i think a 6-3 vote in first impression would indicate that since the two swing vote justices kennedy and roberts have voted in favor of the government, it may be less likely that the challenge will be heard again. >> that's interesting. we will see, ana.

thanks so much for your time and for coming to the camera so soon. >> thanks so much. much more on the ruling by the way, when we continue. dow is hanging into a narrow range. up 24. don't go away.

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>> we just got a big ipo with a bang. up 9.5% for transunion, one of the the largest computer reporting

company in the u.s. a nice 10% jump in the opening trades. going public in what has been a pretty hot ipo market and a pretty strong market here with the s&p up 5 and the dow up 30. >> the supreme court jun holding those obama care subsidies by a 6-3 vote. joining us on the phone, former hss secretary -- i think we have lost that connection on the phone. we are still going through the ruling and the minority writing by scalia which was rather critical of the way the court approached this law and potentially lots of others. up 33 points on the dow. major average is still headed for a third straight winning week. a huge jump in hospital stocks. they have had their unpaid bills cut dramatically under aca. down about 20%, 25%. michael cagino is president of

the permanent portfolio plan. welcome to the program. >> what's a smart thing for an investor to do today? >> sit tight and wait. there is a lot of news to digest. certainly, the health care ruling in that sector is important. i think a lot of the firms dodged a bullet from the standpoint of potential declines in those stocks. the merger mania continues as you get bigger and fewer providers. as you mentioned, there is more migration towards the government exchanges. these were all expected skroutoutcomes for that loss. the real risk is on an individual stock risk on what names you are buying and what return expectations you have. that's how i would play that. broad market. i think we are waiting, would be on the fed in terms of any immediate action. q-2 earnings are coming up. i am curious to see what economy shows up in the second quarter. was it the slowing economy or

the potentially growing morrowe robust economy that people are predicting? >> just as far as the race to merge within the big health insurers is concerned. presumably, if you are trying to put together one of these deals, this was something you had to get out of the way before you pulled the trigger. would you expect the news flow here to accelerate? >> the risk was that if the ruling went the other way, a lot of the premiums built into these names could have been taken away. i think these companies dodged a bullet from that standpoint. the real time to get into these names if you were going to play the mergers was a while ago. they are all richly priced priced based on takeovers and deals occurring within the players. a lot of the premiums are largely in there right now. i wouldn't be buying here, no. >> for the market for the rest of the year for the next six months, what are the risks, to the up side because the economy comes back as you just mentioned

or are the risks potentially to the down side because of interest rates? >> well i think there is risks to both sides. the market right now is not cheap. it is fairly valued overall and richly valued in certain sectors. the risk by not being in the market is that the economy dramatically improves the fed holds off on rates or the rate rise is gradual and expected in a growing economy. you miss more of a rally. we are richly priced. the economy goes back the other way. we get closer to recession. i am not predicting that. the fed did down grade their growth last week. the cushion you have to zero growth and low growth is less. the risk would be to not take profits so the market goes down. i think you have to see the risks either way here. >> two other themes or features of this rally, pretty successful ipos. watching transunion go above 10% in their opening trades.

we saw fitbit successful and this constant steady drumbeat of mna activity. are you investing around those key themes? >> do you see growth and have demand for those kind of stories? if so where? which industries? >> generally, we don't try to anticipate mna activity. it is one factor of many we look at whether we are looking at equities but not the only factor. we are not buying anything specifically relating to takeover can activity. i would say there are certain industries. i think some of the energy players that have weaker balance sheets could be in play in the long-term. if prices firm up there that would be an area for that basis. from a broader standpoint mna activity, a lot of ipos coming to market they do signal to me a more mature market than one in the beginning starnlgges of robust dynamic rallies. you should take that into

consideration. a lot of ipos, several have been successful. those things tend to occur in the latter stages. >> thank you for joining us. >> much more on the supreme court's ruling on obamacare. the affordable care act surprising a tough supreme court challenge. we will bring you the latest. as streaming continues to change the face of tell is have companies are trying to track what people are watching how they are watching,how they are shopping and 13e7bdspending. we are back after a quick break here on "squawk on the street."

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.

welcome back from "squawk on the street." i am jackie deangelis reporting. we have a build of 75 billion cubic feet. this is interesting, because we are coming off our session highs, trading at 2.79. less than last year. a little bit less than the five-year average. i would expect a number like this to be a lit bullish for nat gas. i think what traders are looking at is total storage. reported last week 2.4 trillion cubic feet 43% more than last year at this time. the coffers are really stocked here. that gas is selling off. although, it is still a little higher on the session. $2.79 at this point. back over to you, sue. all right, jackie. thank you so very much. here is your cnbc news update.

here is what's happening at this hour. the ceo of takata the japanese air bag maker is apologizing at the center of a defect scandal has has resulted in recalls of 34 million vehicles. he issued an apology in a news conference in tokyo today in his first appearance since the problems emerged. eight people have been killed and 100 injured by the air bags. defense ministers, including secretary of state ash carter meeting for a second day at nato headquarters in us brles to discuss the ongoing conflict in ukraine. nato reaffirming its position of not recognizing russia's annex sayings of cry meem ya. sinabung continuing to spew vol tanic ash. it has discharged hot lava almost daley in the past couple of weeks. brush fires in los angeles. the fires started yesterday afternoon, month are than 400

firefighters are battling the blaze. 1,000 residents evacuated. that's your cnbc news update at this hour. back to you. thank you, sue. back to the big story of the morning. the supreme court upholding the nationwide tax subsidies. joining us on the phone, former hss secretary, governor michael leavitt. good to have you back. how disappointed are you today? >> i'm sorry. could you say that again? >> how disappointed are you today? >> i was mostly watching as an interested party. it was unclear to me what the court would do. you could see up sides and down sides. the court has now ruled. what it means is that there will be no change in the subsidies. what it doesn't mean is that the

controversy of the affordable care act will discontinue. we have a divided government people in congress who would like to see the law change. they will continue to use the legislative capacity to try to nudge the law in a different direction. >> what does that mean nudge the law? >> is it time for represent tans to accept this will remain the law of the land? >> it is the law of the land. until january of 2017, there is not even an opportunity for the law to be repealed as the republicans or some of the republicans would like. for the next two years, we see republicans in congress doing what they can to change the law in a way that will be idealogically more consistent which i think to them will mean

less government involvement in health care and allowing markets to operate and allowing consumers to make decisions. we will see it play out in the appropriations process. i don't think that the controversy is over. this is obviously a very big win for the administration. >> david axlerod is out this morning already saying that gopers republicans, he means, are privately relieved at this decision. if they had struck sub sids down they would have been the dogs that caught the car. do you agree? >> i would have some agreement with that statement. it put republicans in a very difficult place. they had yet to come up with an alternative solution. the president was in a very strong position rhetorically. president can speak with one voice. congress had three different points of views among the

republicans as to what they would do if the court struck it down. it was a difficult place for people going to go into a campaign with 12 million people having lost something they have come to depend on. so in many ways it allowed them to continue their idealogical fight against the heavy-handed government in health care without having to deal with 12 million unsettled consumers. >> are you surprised, governor, at all at how effective the subsidies have been for these millions of people that are using them low and middle income americans? >> well if you are asking if i'm surprised that people appreciate help in paying for their insurance premium, the answer to that would be no. i think the uptake on exchanges, which i frankly have been a big booster of i think the version that's been the affordable care

act has been somewhat problematic. i am a big believer that exchanges and market prices are a good thing. providing people with access. the issue of the subsidies and how much we could afford that's a separate conversation. it is not a surprise that people value money that's given to them by the government. >> what other provisions do you think are problematic within the health care law that are going to face some legal challenges now that the supreme court has upheld many of the core principles behind this law? >> i don't think we will see the avenue of attack on affordable care act as much as it will be legislative. it will be an ongoing legislative contest. we have a law. it is now five years in the implement taegs. there are those who continue to talk about repealing it. the reality is the law isn't going to be repealed. it is not going to be repealed

by the courts. it is not going to be repealed by the congress at least until there is a republican president and we don't know if and when that will happen and even if it does, about i that time it will have been in place 5 1/2, 6 years. so repealing it is likely to shift now toward an ongoing idealogical struggle on how to nudge it to become a less oriented for government or less expensive for government. >> does that conversation have to happen at the state level or the federal level? >> is the way they challenge this one looking at state exchanges going to be a template for future challenges in your view? >> i do not think it will be a template for future challenges. this was a very unique situation. after the fact it was concluded that the law was written in a way that made unclear whether a

federal backup exchange was legitimized by the law. it was a legitimate legal but quite narrow argument. it wasn't about the constitutionality of the law. it was about, did the estate established exchange mean a state established exchange. what the court has said, the intent of the law was to do otherwise. they have now ruled and that law will go forward as it has in fact been doing so the last two years. >> finally, scalia in his minority decision says we should start calling it scotuscare. your reaction to that? >> i hadn't heard that. that's some judicial humor from the judge. >> governor thank you so much. appreciate your time today. >> my pleasure. >> former secretary and utah governor michael leavitt.

what's happening in greece as those negotiations go down to the wire. there has just been a briefing on those greek bailout talks which remain gridlocked. the imf is warning that greece will be in arrears if it misses its payment deadline on tuesday. it won't extend the deadline. they must offer debt relief but athens must take action first. what's happening is that the tread creditors are getting harder on greece. they want cuts and spending so that their debt becomes more sustainable. they are repeating their call that once athens bends on it the rest of europe has to look at softening the loan. that's what's going on in greece at the moment? my understanding is that you now have a simultaneous meeting of the leaders and the finance ministers going on which is highly unusual. because the finance ministers have to agree technically on the deal in order for the leaders to sign off.

we will come back to that later in the show. >> a lot to keep track of. a lot of meetings all down to the wire. markets are holding up here with the dow up 10. shares of netflix are sliding after getting downgraded to neutral over at citigroup. the analyst who made that call will be live on squawk alley to explain and where the stock is headed from here. we are back in a moment to hear on "squawk on the street." ysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. ask your doctor about cialis for daily use

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it has certainly bb a red hot year for merger and acquisitions. catch our live segment every day on power lunch. month are "squawk on the street" straight ahead.

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health care is one of the main movers. done choo don choo up here. >> we are watching the health care sector. it gives hospital stocks a boost today. hca and tenet healthcare saw their stocks rise. a little off their best levels of the session so far. insurance stocks higher as well. humana and united healthcare both up around 2%. a big day. we are going to talk about health care and related stocks all day given the size and scope of this move. >> speaking of health care the president will make a statement on the ruling at 11:30 a.m. eastern in the rose garden. when that happens, we will of course, take it live. in the meantime the cne group and check in with rick santelli. >> rick. >> hi carl. good morning. i would like to welcome my guest, david vout. thanks for taking the time this morning. >> good morning, rick. thanks for the invitation to join you again. >> basically, the conversations

we have had in the past when you were on, footnotes on balance sheets were the unintended expenses that they had from deals made long ago regarding compensation and benefits to future employers, underfunded benefit liabilities of the future. before we get into the thick of that you just heard the supreme court ruling on the affordable care act aspect that dole out to states with regard to subsidies. is there anything you would like to comment on before we get in the thick of the underfunded liability herb u? >> obviously, whatever the federal government does, this is a federal issue. many a times, what happens at the federal level, rolls down to state an local government. it can have an impact on the cost of the state and local governments and the struggles they have to determine how they are going to allocate their resources. >> to the topic at hand. if you have underfunded liabilities in your state, you have to put it clearly on the balance sheet. this is something that just went

into effect at least the changes made in early june. can you tell us what it was, what it is and why it is going to potentially make a difference? >> previously what happened is that the pension and the other post employment benefit liabilities appeared in the footnotes to the financial statements. regret enter i, that didn't get the attention of the policy makers the mayors and council and governors and legislators. what the new standards will do is elevate that pension liability and the other employment liability to the face of the financial statements and provide a much clearer, enhanced picture of what these promises actually are. the magnitude of those promises and whether assets are being set aside to pay for the benefits in the future. >> in a short answer david, what is the number nationally on underfunded benefit liabilities and what states are the biggest offenders in this regard? >> rick they don't really get

into the number calculations but i can tell you that they put the other post-benefit liability at around $500 billion. it is a large number. the pension liabilities in the hundreds of billions also. these are big numbers. >> the only question that really matters most to viewers and listeners on the radio. will retirees in your opinion get the benefits that they have been promised and have accrued? will they get full benefit compensation or so many cents on the dollar down the road in your opinion? >> the new standards are going to provide that enhanced picture so everybody will have a clearer picture of what the promises are and policymakers can sit down with employers and unions and work out some solutions. there are variables that can control the liability. policymakers need to set a plan a long-term plan to make sure they are sitting aside sufficient assets to pay for these liabilities in the future.

the first manner that you could address a problem is to admit that it exists. in that regard we have accomplished something. thank you for taking the time this thursday morning. carl back to you. >> i will pick it up from here. from tv to retail although well-known for tv ratings nielsen is seeing pretty big expansion in retail working with ali ba ba and to help commerce companies. joining us is nielsen ceo, mitch barnes. thanks for joining us. >> thanks. >> questions on this tv business. we got some fresh comments overnight from james murdoch who will be taking over 21st century fox. he says in five years, we won't differentiate between traditional and streaming. do you agree with that statement? if so what does it mean for nielsen? >> it is clearly the direction consumers are going. the way we think about our measurement of television content today isn't so much about measuring television. it is really about measuring video all across the screens and

devices and platforms. all the environments where consumers are going to consume the video content that they love. to that degree yes, i think that statement is quite accurate with the way the consumer is going right now. >> isn't that measuring eyeballs online for video or anywhere digitally? we've talked a lot to the com score ceo, we know he's doing that, even google is getting into it. is there a concern here that the more players you have the less expensive that rating information will be. and therefore, it could hurt you? >> we stay focused on what our clients are looking for and what our clients are looking for is comparable measurement across all of these screens, devices and platforms. and by the way that still includes traditional television. still about 90% of the time the consumers spend watching television content still on the good, old-fashioned tv screen. we still have a strong position there historically.

our investments have been focused on our measurement in the digital world and doing it in a comparable way across all the screens so that we can provide it a total view, a total audience measurement view. and that's exactly what our clients are asking for right now. >> what does the future hold? if people are going to stream and streaming is everything isn't that a more direct data link as to who is streaming and what they're watching? in other words if you can master the big data you should in my definition be able to see who is consuming what anywhere. so the type of work that you do in terms of sampling is going to have to change hugely. i wonder if you've become an audit function on facebook or netflix. it's going to be a very different world, isn't it? >> it is. but we think it's going to be a great world. we're excited to see the developments that are being driven by the rise of big data. more digital approaches to the marketplace. but we don't see it as a choice between one or the other. in other words there's going to be these big data sets from the digital part of the marketplace. but those will be used in

combination with our more traditional panel-based approaches. by putting the two together you get the best of both worlds. to your other point about the digital platforms, they'll be able to know everything that's happening on their digital platform, but it's the advertisers who are the ones who insist on having an independent measurement of what's happening on those platform the and that's where nielson comes into the picture. >> isn't that likely to be something that google will mast centre more than perhaps yourself as a third party? >> google can measure everything that's on their platform. but advertisers, before they decided to shift their advertising dollars to the youtube platform. they requested that google offered independent third-party information, and we're the ones who provided that. our metric was able to be used on that platform you started to see an acceleration in the shift of advertising dollars to youtube and i think you're going

to see that across the marketplace. the value of independent third-party measurement has been there for a long time and it will be there for a long time into the future and that's what we do. >> let's talk about your retail business. many folks don't know it's a bigger part of your overall sales than the tv ratings. we got a great read on consumer spending in the country. the biggest jump since back in august of 2009. it feels so lumpy when it comes to consumer spending. they want cars not apparel. they want gym clothes, not accessories. what are you seeing and why is there so much discrepancy based on categories in. >> well the u.s. and frankly for most of the developed markets around the world. over the past decade we haven't seen media household incomes move very much. so consumers continue to make adjustments, they make adjustments in terms of the way they shop. for instance fewer shopping trips, larger basket sizes, they go to more economical pack sizes

to try to find a way to bring quality products into their household. do it in a way and stay within their budgets, which are under pressure. and contrast with the emerming markets where we see tremendous population growth we'll add a billion people to the planet over the next decade and the growing middle class, the middle class growing 130 million people per year most in asia and affect. it's a two-speed world. >> i use the nielson data pretty much weekly following a lot of the consumer staples companies. general mills announcing it will lay off another 600 to 700 people. you see the categories that have been so strong in this country. like cereal, soda. frozen goods, all suffering. >> do you see these industries these foods and beverages that that our parents loved, coming back ever? or is this a permanent story and

these companies have to totally pivot? >> i think it's an indication that these brands these companies are in transition. but they will come back. brand-building will take on renewed focus. i think a big reason why, a big support for it is going to be the ability to advertise going forward with more precision, with more accuracy and with more value in the act of advertising. a lot of that is going to be driven by the big data world. you're going to be able to get more value forror that advertising, renewed focus on brand-building, that will be a way a lot of the companies will find their way to growth even in the developed world. >> i want to mention that you have a partnership with alibaba, and the ceo of alibaba speaking at your conference between e-commerce and brick and mortar we've got a little sound for you. >> e-commerce and brick and mortar, i don't think they compete. actually new combination should be the combination and integration of the digital

economy and the real economy. >> we've got to leave it there but i think that's an interesting set-up to some of the challenges that retailers are facing today, when it comes to the combination of e-commerce, mitch barns, thanks so much for joining us the ceo of nielson. the big news the supreme court of the united states upholding the subsidies that are deeply embedded within obamacare, the president is expected to speak on that decision at 11:30 eastern in the rose garden. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return.

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welcome back, the story of the morning, the supreme court backing the obama administration on health care. saying subsidies do not violate federal law. let's get to hampton pearson at the supreme court with an update. >> hi, carl. i want to drill dool a bit on the stinging dissent rendered by justice antonin scalia. here's a part of what justice scalia had to say. the court concludes that this limitation would prevent the rest of the act from working as well as hoped. so it rewrites the act to make tax credits available everywhere and here's the punchline, we should start calling the law scotus care.

he goes on to say perhaps the affordable care act will retain the enduring status of the social security act and the taft-hartley law but the court's two decisions on the act will surely be remembered through the years, the two decisions, the original mandate as constitutional and now the subsidies, both made possible by chief justice john roberts being the crucial swing vote in both instances. one other bright line distinction on the part from the majority justice roberts again on the question of the credits, the credits are necessary for the federal exchanges to function like their state exchange counterparts and avoid the type of clam to us results that congress plainly meant to avoid. so there you have it the division on the court. 7:3 today, in favor of subsidies being available in all 50 states. back to you. big news thank you hampton pearson. joining us on the phone, health care policy research analyst a