and squawk box begins right now. >> live from new york where business never sleeps this is squawk box. >> good morning and welcome to squawk box here on cnbc. becky and andrew are off today but it's an annual tradition in spain. the running of the bulls. thousands of thrill seekers tested their bravery and speed this morning. tashing dashing along side bulls. seven people were taken to the hospital for injuries including one person who was gored in the armpit although if you're willing to do something like this you know you're putting yourself at risk. the bull runs will take place every day until july 14th. tis the season in pamplona. >> is that on your list? >> it is is. >> why not?

what list? >> that's on my -- the other one. the one that begins with an f. >> my husband did that a couple of years ago. before i knew him and i'm glad about that. >> and that would make me -- that's just me but that would make me just wonder. >> wouldn't you like to at least be there for that once? >> i read sun also rises. i got the sort of the romantic idea of what's going on but i would never in a million year dos that. >> i wouldn't want to be running but as a spectator it could be interesting. >> i would never jump in a -- >> from one of the windows a couple of stories above. >> would you do a flying squirrel? i'll never do that either. i don't think i'll ever jump out of an airplane. perfectly good airplane. >> not once you have kids. >> not for any charity or stakes whatsoever? >> if there was a charity and a certain amount of money i'd think about it and then decide not to do it. >> if this was a golf outing on

the other side of it. >> when i see a really close out of bounds that's as close -- especially if i'm slicing -- that's as scary as i like to make my life on any given time. >> but you put yourself through three hours of live television every morning. >> i do. with andrew. >> he's not here to defend himself. >> we'll talk more about him with the starbucks story. >> the big business story of the morning, of the week of the month, the crisis in greece and the global market reaction. of course euro zone leaders are gathering in brussels for an emergency eu summit. u.s. equity futures are actually firmer right now implied open for the s&p 500 up by about 13 points. dow would be up about 95 points. market reaction in asia of course is driven largely by what the chinese authorities are

doing to stem a fall out there but we are seeing european markets and we are seeing bond yields across the board lower. europe is lower. the euro is lower as well. so certainly something to watch across the board. we'll have live reports from bronchusel and athens in just a minute but first scott has this mortgage's other big stories. >> negotiators face a midnight deadline to finalize a nuclear deal with iran. in return for allowing inspectors into it's nuclear facilities iran is now making a last minute push to lift the united nations arms embargo. in asia chinese stocks dropping yet again today but ending well off their lows of the session. this despite a number of new measures aimed at stocking a stock slide. among the drivers of today's sell off traders point to china's premiere failing to mention market chaos in a statement on the economy. steven roach will join us in the

next half hour. in other news australia's central bank holding interest rates at record lows today. the decision was expected. they argue there's a need for a further decline in the country's currencies because of a significant decline in commodity prices. >> in corporate news new details on the so-called living wills of the nation's biggest banks. they're part of a post crisis reform measures that were put in and last year regulators skoelded banks for producing plans they said were inadequate. in the latest plans goldman sachs, citigroup and morgan stanley said they would cease to exist after a hypothetical bankruptcy triggered by a crisis. jp morgan would stay in business with a main business about one third smaller than what it has right now. >> let's check on the markets this morning. take a look at the futures. we're set to open on wall street. looks like we would have a pretty descent open. dow would open up nearly 100

points. s&p and the nasdaq following suit. all eyes on the euro zone. that petemeeting there. european markets are mixed with germany and france. the ftse as well negative territory while italy and portugal are seeing their markets in the green. oil down 8% yesterday. and a bit of a snap back today but there's a ton of focus on what's taking place across the commodity spectrum. most certainly in crude oil. yields, the ten year note yield, there it is. 262. watching that along with the dollar and the movements there as it relates to what's taking place in greece and elsewhere. 109 is the euro dollar now. where was it -- >> it was fine -- everything is expensive anyway. at least in paris. gets cheaper as you go east. everything gets cheaper as we went east all the way through and we went right across the center. it's a rail. right across paris, munich.

vienna and next would have been budapest. >> of course people talk about how your european vacation will be cheaper but a lot of these hotels and airlines are big companies. they can reset prices. but not necessarily cheaper. when were you there? >> like the cup of coffee and the croissant. if it's 28 euros in paris for a cup of coffee and croissant. >> what type of coffee were you getting? >> it doesn't matter. that's what it costs there. basically. i'm exaggerating a little. it's still 28 something so it doesn't matter once you do the math. it's expensive. my question to both of you, this gets resolved let's say and a lot of people still think maybe there will be some last ditch way to keep greece in the euro. i don't know at this point. 50/50 is what most people say. markets get a bump if they resolve it don't you think?

we're at 17-6 on the dow? don't you think that would be a catalyst? however if it doesn't, is it already in the market right now? >> no. >> so you think it goes lower? >> i think the risk is absolutely that it gets messy and that the market doesn't like that. >> see i think it's already -- i think a lot of the angst you see on the chart already reflects greece and the bad news is in already and it's written off and -- >> the question is what the euro does and how that then effects companies going into earnings for the back half of the year. if there are incredible swings in the euro like we saw over the last year we have seen what that's done to sales. >> it's just currency. if it wasn't for currency. >> people are taking it more seriously. >> organic growth. they always give you both numbers. unless it's the other way where it's at their back and then it's well look at howell well we did.

when the currencies are in their favor it's good management. >> i don't think anything is in the market yet. >> really? >> how stupid can -- >> if it gets results. >> traders are stuff are very short-term oriented and maybe they aren't thinking that much. >> i think if it gets resolved the market goes up. if it doesn't, the market goes down. >> i think it's in the favor of it going up. staying where it is if it exits. >> traders are watching the level of 1097 on the euro. we have michelle joining us live from athens as well as jeff who is in brussels for the emergency summit and jeff we'll start with you. we're watching the euro and also talking about the likelyhood of the deal and what level of patience european leaders have going into this meeting. >> yeah i have to tell you that expectations are very low as we come into these two emergency

meetings. the finance ministers have been called back here by the dutch finance minister who leads this euro group. he and many others have said in the build up to the meetings that greek must remain a member of the euro zone. but in the same breath they also say greece needs to come back to the table with stronger restructuring proposals. ie more reforms, more austerity and at this point they're not in the business of talking about debt restructuring which is something that the greeks desperately want and has been a recurring message since the referendum no vote we saw over the weekend. so we have yet to see what these proposals look like from the greeks but as i say, expectations at this stage relatively low that we'll see real progress and one other thing just to throw into the mix, yesterday evening, we of

course had the german chancellor and the french president meeting and the message coming out of there seems to be that the germans and the french are still not on the same page when it comes to dealing with greece's debt. so let me move the story on and send it to michelle in athens. >> thank you so much for doing that. let me tell you what the local press is saying about this. very high expectations that something good may come about it. here's the local paper of record and the headline is the summit that will decide grexit. so they think quite a lot viedingviedis riding on this event today. this newspaper says we're running out of time for a solution before catastrophe hits. catastrophe is a greek word. there's great hope that at least when this thing is over that somebody might say that progress is being made. that maybe the greeks have

brought a proposal to the table that's good enough to move forward on something even though the expectations are incredibly low. in the meantime here in athens the greek banks are closed again. the head of the greek banks association. i doubt she ever thought when she took the job that she was going to be flanked by dozens of cameras as she arrived at the office to announce that the greek banks would have to stay closed for another two days despite the promises that they would be able to open very soon. lines are still at atms. that's good news. there's still money and cash. when you don't see the lines anymore they have actually run out of cash and late yesterday we were introduced to the new finance minister. oxford educated economist. he was introduced to the press by the former finance minister: it's been in the papers. we had one source tell us this yesterday. now dow jones is reporting it as well. one of the reasons he might have

been pushed out is that he told the telegraph of london that he was going to print oious and supposedly that was the final straw that broke the camels back. that would be significant. we talk about the next level of the crisis and i always said first capital controls. next when do they start printing ious. maybe it's better for negotiations, two it pushes the chances of ious which many believe will be the next step. if he's not around maybe that doesn't happen as soon as it might have otherwise. >> yeah. apparently a math wiz, michelle geometry specifically this new -- you have to check your facts though i think on one thing. i believe catastrophe is an english word. you just said it was a -- i'm pretty sure -- >> you think catastrophe is an english word. i've used it a lot.

aren't you -- it's one of your favorite words. aren't you pretty sure it's a english word. >> our greek producer insists it's a greek word. >> it may have come from the greek. >> all of those words are are always greek words if they end in ic. >> came from the greek but i guarentee you they are english words now. anyway the one thing -- >> i see what you're saying yes. >> everybody sitting in for -- anyway, one other thing, the thing that i read immediately here michelle that i thought of that we didn't necessarily say yesterday yesterday, the journal leads with tsipras pushed him out and it's a sign that he's maybe willing -- we didn't say that yesterday. we acted like when a ceo leaves and he says yeah it was time for me and you find out later that

the board was pushing him out. did tsipras do this because he was so confrontational because he wants to do a deal? >> i find it hard to believe that tsipras is goi to cnge his tact so dramatically that it's going to make a difference immediately with these negotiations. we have see what proposal is brought forwar do know yesterday he got all the leaders of the parties together and got them to sign off on backing him on the proposal that they're going to bring forward which includes debt restructuring. it is possible that he's going to be less strident? i don't know at this point. the bottom line is and the way i always think about this is could the banks open any time soon? what would get the ecb to move? that would take the pressure off the crisis and it would take tsipras coming forward and saying all of you guys are right. i'm going to do everything you

said and now even more than what you said because the economy has gotten so bad we had to make up for all of the lost revenue than otherwise and on my knees please help me and then maybe you might get some leniency from the ecb. do you think that's going to happen? i don't think so. >> i don't know. i just can't accept it. i can't accept it. i can't accept that they voted no and i can't accept that there's not going to be some last minute deal and this is all a dance. that's just -- but what the germans at this point, they really are feeling their oats it seems like. if they need to teach a lesson to greece to get everybody else in line and stay in line because it's risings everywhere including this country with bernie supposedly every day hillary is quaking in her boots. i think that's crap. but anyway thank you michelle. >> joe -- >> yeah go ahead.

>> we'll see you in two hours we're going to introduce you to a business man that produces pharmaceuticals and is being completely constrained by the capital controls. we'll show you how the economy is getting squeezed. he also thinks there's got to be a deal. >> yeah but that's what i mean. i mean for a developed country to all of a sudden be sort of a third world nation it's just never happened before and that's why i just can't imagine it goes on for that long but you're over there. but for more on how greece's debt drama could dominate the markets let's bring director of global macro. i was channelling you earlier. i think that a resolution gives us a pretty good move. it could be an excuse for this oversold position in equities to be reversed. and then i was saying even if it doesn't happen it's like already baking in a worst case scenario. so i think right now it's sort of -- the deck is stacked in

favor of people that are long. maybe i'm wrong. i don't know. >> no i would agree with that joe. i think hopefully cooler heads will prevail in europe. everyone has gotten the time-out here. what the ecb does of course is key here. it increased the haircuts on the ela so it's still a pretty hard line. my thinking is if they can get -- they need to get back to the negotiating table and talk about maybe a third bailout program. kind of scrap whatever was on the table before. but that's going to take weeks and in the meantime the bank versus to stay afloat and the ecb has the greek banks. they can't operate without the ecb but on the other hand the debt of greece is held by european public institutions so it is sort of a catch 22 and they need to figure out some way to move forward. i'm hearing about bridge loans and that sort of thing until they can all sit back at the negotiating table hopefully with

cooler heads and sort of start over if you will and as for the market it's been going sideways. the response so far has been very muted which i think is correct because even though the odds of a grexit have gone up i still believe it won't be a systemic event even if it were to happen or negotiations start to draw out even further simply because the greek debt is held now in public hands. we do have qe by the ecb that sort of fences the peripheral spread contagion and frankly the european economies in a much better place than it was three or four years ago as is the u.s. economy. so i do think that markets are correct to be some what calm here and i think once the deal comes together in the next few weeks hopefully that the markets will resume what has been an up trend for most talks. >> michelle a 61% no vote the dow was down 46 points

yesterday. that's a pretty good performance, isn't it? >> it's critical about how it impacts the u.s. economy. it's muted in the sense of the trade flows so the question is what kind of financial spill over will there be? will it hurt asset prices or hurt the flow of credit through our banking sector and so far the market response has been quite muted. most market participants are carefully monitoring what happens out of greece. we still have the baseline view that most probably will end up resolving it and we'll avoid that worst case crisis or that real kind of blow up moment where the euro zone is crushed in and even if it goes ahead with the grexit perhaps it could be maintained. >> you can almost look at it as if it's almost too big to fail. it's not private institutions that are going to get hurt. it's just money printers. they have plenty of money. worst case scenario private

institutions go belly up and we have debt in the private institutions. the rest of europe is going to have to absorb the losses. >> that limits the spill over. the other big distinction between now and 2010 is to your point the ecb is involved. so they provided important backstop. the ela program is extremely important in terms of providing liquidity and helping the banking system so i think that's right. i think the risk of a spill over is probably more muted but we can't say it's zero. there is still some possibility that things escalate and that impate kts the fed-- impacts the fed's decision. >> they love having economies artificially suppress the euro in the first place. if they do have to print more. >> it just weakens the euro. >> but that's an important point for the u.s. which is what will be the currency implications because if you get a big weakening in the euro the dollar strengthens and then you have financial conditions tightening

in the u.s. which could impact the fed inkeysing interest rates. >> that's really a -- so we have to take it all back to whether we get a quarter point rise or not. so we can actually take greece back to worrying about what the stupid fed does from zero. >> no i don't think it -- at this point i don't think it stops them from starting the cycle but if you get the dollar tightening -- if you get the dollar strengthening and financial conditions tightening they can't go as quickly it's one more thing to monitor and take into consideration. >> all right. thank you. we got so much out of your question that we just let michelle go. there were nuggets. nuggets. and you too michelle thank you. >> you got it. >> when we come back a live report from asia where china stocks have been on a wild ride for the last three weeks. oil prices rebounding today after suffering their biggest

one day drop of the year. down about 8%. but first as we head to break here's a look back at this date in history.

>> sri joins us now from singapore. good morning sri. >> good day to you scott. yes, it was. this volatility is really starting to become the new normal now in the mainland china equities market despite the attempts by beijing to really put a flaw in the market. they tried to do so over the weekend with those major support measures but they really had an impact just on the margin. they were very short lived. it was the drop in the bucket if you will. so another day of volatility down by 5% at the low stab at one point during the session. degree of stabilization toward the close but still negative. the really surprising thing for me is that we haven't seen much rotation back into the market. much bargain hunting in another word because remember what we have done. we're down by well over 20%.

nobody is going back into the market to pick up the stocks at bargain basement prices. there's further down side to go in this market. some people are talk about a major support level of around 3400. possibly 3,000 before we see investors reenter. so very difficult job for beijing at the moment. they don't want bust in the stock market. they don't want boom either. they want the slow ball. they don't want the crazy ball and they tried to support the market but to little avail at this point in time in the narrative. that's where we stand. back to you now. >> a 3,000 level support would be quite a drop from here. we'll continue to watch it. we appreciate your report. crude oil getting crushed this week. greece concerns and record production levels sending crude down almost 8% to start. analysts expect prices to keep dropping. add to that the deadline on the final deal of iran's nuclear program looming large. more now from matt smith.

matt, good to see you this morning. >> good morning. >> so handicap everything we have going on. arguably it is iran and this expectation that there could be even more supply coming to an overly supplied market already bringing up to a million barrels of oil a day is what the expectation is. how much could that swing things in either direction? >> well any sort of progress made in relating to iran is going to be a wearish thing. initially we're going to see an influx of oil to the market because they have so much in floating storage just ready to be released once that agreement is made an sanctions are lifted there's up to perhaps 40 million barrels. once that is out into the market then it's not like they can suddenly just turn on the spiggots and put that back in. there will be a slow gradual process where perhaps 200,000 barrels a day come to market and

even in a year's time we may not see the return to presanctions levels. >> so it's going to take time you're saying? >> definitely. but the market is oversupplied at the market. 1.5 to 2 million barrels so any influx of further cargoes or production coming to market is going to be a bearish influence. we have three reports. these monthly reports this week and into next and the department of energy from opec and iea and all of these will indicate that yes demand sin creasing as a response to lower prices but production is still strong coming from saudi and iraq and iran as well. >> isn't most of what we see in the oil market and the move yesterday on fears of a rollover in the chinese economy more than anything else? >> there's been this real disconnect in the chinese market in that imports into the country

have been strong through this year. gasoline demand has been relatively strong as well. but economic data has been soft. there's really been this wealth effect that is the stock market has increased there. this sort of 85% of transactions by individuals. the people have felt more wealthy so that has impacted gasoline demand but as stocks pull back there then that reverses and so while we have seen sort of suv sales up so 50% through may versus last year sales up sort of 20%, what we're going to see the likely reversal of the gasoline demand growth and that will only exacerbate the market potentially. >> certainly a lot of compounding forces at work matt. quickly before we go, walk us up to the eia report we're watching for today. >> mostly just to see where we're going to be in terms of global production. what we're seeing out of opec is the potential that they're up

above 31 million barrels a day for the last month and that would show saudi is continuing to pump to the highest level since 1981. iraq the highest level since before the 1980s as well. so this on going impact of opec flooding the market with crude. >> matt smith we appreciate your time this morning. >> thank you. >> and coming up starbucks is raising prices of some drinks today. the change comes as other coffee companies are dropping prices as the commodity goes down. wow, howard. we're going to ask what's going on, next.

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♪ >> i know you. >> you do know me. starbucks is raising prices and that is a story and it's going to be in the mainstream media. i have a little bit different take on it because coffee prices themselves are going down and i don't know what charts we want to look at first of all and then i'll go off on my rant but okay -- >> you haven't started your rant yet? >> i haven't started it yet. >> down 28% in the last year. >> now, starbucks is going to raise prices and here's a starbucks chart. now i would normally not say anything. that's fine. because there's a lot of things that go into why a company prices something and companies, they want to make as much money as possible to reinvest and

innovate and for competition and for plants and equipment but icon constantly hear it that the airline companies should have cut prices with how much oil dropped as if there's nothing else that goes into setting prices and i always argue -- i push back against that so i would normally -- i would normally defend howard schultz but he's so preachy about so many different things is that what i'm going to say is i'm going to take the lefts position here. you saw how shareholders benefitted from starbucks and how much money they have made so now he's raising prices as coffee prices go down to pad his profits therefore further lining the pockets of shareholders which already have money further exacerbating income inequality and it's just for someone as preachy and self-righteous and howard schultz to be doing that.

>> i'll push back on that. >> let me finish one more thing. >> in this country, you could probably ask most people on the street if you have a company and you can prove it has a history of maximizing profits, can that company be prosecuted? and i would say most people in the country right now would say, yes, that company should be prosecuted. if it's tried to maximize profits and has a history of that -- >> because we don't understand -- >> but you understand it if you're a shareholder of starbucks. >> i would normally totally defend a company of doing that. if it wasn't such a preachy. >> so if a ceo has the you know whats to speak out on social and other issues automatically that makes him sanctimonious? >> depending on what the issues are. he's ready at any time to judge

other ceos or social behavior. >> if you're price conscious about your coffee you go to dunkin donuts. >> why not pass along the savings to the consumers and not exacerbate income inequality by lining your shareholders pockets? how much money is enough. how big should a profit be? he's entitled to a reasonable profit but not an outlandish profit. remember with the banks? they're entitled to a -- >> the millions of shareholder who is are out there that are going to buy their starbucks coffee don't mind to pay a nickel more if they see the stock go up. >> god bless them i'm saying. i'm taking -- if you're going to trash the airline companies for not lowering prices like that they should have immediately lowered by the amount that oil prices went down i don't agree

with that either. i think it's naive and they have no understanding of economics which is the same thing i would say now put howard would be in the camp in the sanctimonious preachy way but alignsirlines but you can raise coffee with the cod commodity going down. >> you can price it as high as you can to maximize profits. unless you're this guy who is constantly preaching and telling others how to be a good citizen. >> but maybe he also feels as though maybe he overstepped he's not afraid to walk it back either. that's what he did. >> no he didn't. >> that's what he did with the cups. >> it was supposed to end after a two week program. they never walked it back. he said i don't want to hear race issues when i'm having my

morning coffee. give me a break, right. >> well neither did anybody else apparently. >> apparently not. >> that program was designed to end after two weeks anyway. it was a big success. >> but it came from a good place. >> i agree. but just run your company. don'tpreach >> all right. and i won't either. >> ever again. >> er again. >> pinky promise. >> you knowcoming up ready or not earnings season is here. we'll talk expectations before alcoa's first pitch tonight when squawk comes right back.

we're kicking off earnings season this week. hear to tee up the quarter ahead is the managing director of global market intelligence at s&p capital iq. nice to see you again. where's the bar as we enter earnings season? >> where's the bar? right now -- the s&p -- >> feels low. >> this is the first negative growth quarter since 200. we're going to see according to the cap iq consensus down 4.4% negative growth. first time in years. >> do you feel like expectations are way too low? >> i don't know. you get your surprise you know this is the thing we have known for years. analysts tend to you know be more conservative than they should be but the numbers are the numbers and i think you actually may end up with a negative growth quarter. they might squeak by and get into positive territory but either way, zero or 1% growth

even in the best case scenario is that good? >> i hear other people expecting high single digits. not negative. >> these numbers are not looking good. as a matter of fact the next quarter is right now expectation gone down that that's down about 1%. you get the double whammy too because revenues are going to be down over the same quarter about 2.2%. you have a bit of a profit recession going on here in the s&p 500. since last time i was on i think the real thing that was really troublesome to the marketplace was valuations. what's happened is we've had a little bit people don't realize it. in two places one you're 3% off your peak may 21st on the s&p and secondly expectations have gone down so your multiple has gone down from 17.5 times next year's earnings. >> you've had a modest direction in the dollar which is likely going to help rather than hurt. >> it could and energy prices. for example, this is probably

the first quarter where you're seeing some of the pressure of higher energy prices starting to benefit the consumer discretionary sector. it's the second stronger performer after health care in this quarter. >> the lowest number of negative preannouncements in however long. that would seem to suggest that earnings have the potential to surprise a lot of people and then if earnings surprise people, you can expect the multiple on the market and maybe the market goes up and that's the catalyst that takes stocks higher. >> perhaps. i'll tell you, i can't figure this market. it's a random walk. i think there's a strong case to be made that this market is still technically overpriced and i think that there's other reasons why this market has some legs. >> we shall see. thank you. >> talk about a market that was overpriced china stocks dropping

about 30% in the last three weeks. that would get our attention here, wouldn't it? will new pressures be able to stop the slide? we'll ask stephen roach, next. when you're not confident you have complete visibility into your business, it can quickly become the only thing you think about. that's where at&t can help. at&t's innovative solutions connect machines and people... to keep your internet of things in-sync, in real-time. leaving you free to focus on what matters most.

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what's in your wallet? china pulling out new stops this week to stem a three week sell off in stocks. here with us on set, stephen roach, he's a senior fellow at

yale university's jackson institute of global affairs. he is also the author of unbalanced. the codependency of america and china and he just returned from china this weekend. we've talked a lot. can we just go back and give us a play-by-play of the move up and how it was orchestrated and what caused it and maybe we can get a better perspective for what happened in the last month. >> this has been the worst-performing major stock market in the world for six years until last november when the authorities announced this new connection between hong kong and shanghai. it freed up a lot of capital from the south to move north and the market just took off like a rocketship and made up for lost ground in about nine months. it went up 150% over that period which is enormous speculative frenzy and now the bubble is bursting.

who knows where it's going in terms of the downside, impossible to catch a falling knife. but they've unleashed a lot of measures to shore up the downside. >> so the backdrop is everything we've talked about over the years with china trying to change its business model to a consumer-led economy. is anything that the country is doing fundamental lyly -- is anything connected to the stock market? should we glean anything? >> it's been a huge decoupling. >> doesn't point to anything for the underlying -- >> exactly. the market was underperforming when the economy was booming and the market surges the economy is slowing. the bottom line on china and i pick this up loud and clear, a lot of travel there over the last month is that this model ship from manufacturing-led exports and investments that

services-led consumer demand is something they're continuing to emphasize. they're not backing away from. and tactically they've got a big problem on their hands with the stock market and they're addressing this with short-term measures. but they're not backing off on the fundamentals of this model change. which i think is good news. >> so there's no large impact to the economy if the stock market has a full fledged crash. >> what's a full fledged crash? you go back to where they started? that's a big impact for the retail. >> 85% of the stock market by current estimates is retail. i mean you don't think -- >> i realize that. it's a speculative frenzy. the uneducated are opening up new accounts by the zillions every week in china. of course zillions for a country with 1.4 billion i guess it's a lot. but it's not enough to bring the entire economy down at this point.

>> i'm sorry. i felt like people here are perhaps too complacent about this dramatic pullback in the chinese market and the ripple effects not only throughout the chinese economy but the global economy if china starts to go more south than people expect. >> is there a wealth effect that is going to hit the chinese economy, that's what you're asking, scott. and, you know, it's possible. but again, the engines of the economy right now continue to be pretty much the old model which is investment-led and to some extent still export-led. the consumer is 36% of the gdp which is where you would expect the wealth effect to come which is what have of what it is in the united states. >> what's the precedent for what chinese authorities are doing right now? they've locked up a quarter of the shares available for trading. >> are you asking is there a precedent for market manipulation? ask your friends at the fed. >> what would you consider to be

a -- >> we're all doing it. >> come on. put that on a platter here. >> that's a cynical viewpoint. >> i'm sorry, joe. market manipulation is not something the chinese, you know have a monopoly. >> how much bigger is the concern that the debt bubble bursts in china than the equity bubble? how much bigger is it? >> they have a huge debt to gdp ratio right now. some estimates have it in excess of 225%. they are trying to delever. but, you know they are a debt intermediated economy. they don't have a full array of capital markets to support the economy like places like the united states. so they have to rely much more on debt financing to grow this investment-led economy. they went too far. especially in the property area. and they are definitely trying to pull back. their success is in thus far

have been limited and they've got to do more. >> they've been trying to manage this for three years at least. haven't they? hasn't there been sort of a -- we've been -- you always said they're going to manage it. it's not going to be a chain type explosion. and for three years they've been sort of trying to deal with it. are they on the other side of that? where is the economy in terms of its -- we know the growth is slowed. if we turn the corner and can expect better things? or are we still -- >> i think you'll be surprised the economy is going to sort of stabilize in the 6.5% to 7% range. it's not going to zero like other bears you have on this program -- >> it's been awhile. he steals our guests. that might be on "half-time report" now. you went to that over the weekend. >> word. >> that's good for him.

but look. >> you think i'm stupid? >> no no. >> chinese services sector. this is the infrastructure of consumer demand. last year it rose to about 48% of the gdp which is about six points higher than the combined share of construction manufacturing. this is the new engine of china. and it's just beginning. that number has got to get up to 60% before china's got a more balanced economy. and it creates more jobs and it sustains slower growth. and it's greener. it's not as environmentally degrading -- >> we've got to go. when will we see new highs in that market? >> it will be awhile. >> really? so this was a big bubble. >> you look at the chart and it went straight up. it's going straight down right now. who knows where it stabilizes. maybe scott knows. i don't. >> all right. i'm told to call you professor.

>> any time. >> good to see you. all right. coming up this morning's top stories include emergency eurozone summit on greece. hello. i am technology that is changing investing forever. i am a fully automated investment advisory service. i can help you choose the right portfolio. monitor it. and even rebalance it. i've been called innovative. revolutionary. and just plain smart. i'd blush at the compliment if i could. but i can't. so. i won't. say hello at intelligent.schwab.com verizon say neversettle. t-mobile agrees.

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xçó0 oil prices plummeting more than 10% in the last week. the deadline for a nuclear deal with iran less than 24 hours away. we'll talk to dan senor. plus stocks in china shrugging off emergency support measures falling more than 1% overnight. but china isn't the only global stock market in correction territory. we have names that might surprise you. and time is running out for a eurozone to agree to a plan

for greece. wilbur ross is invested in the greek banking sector. he'll tell us why he thinks greece will finally secure a bailout as the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york city, this is "squawk box." welcome back to "squawk box" here on cnbc first in business worldwide. i'm joe kernen along with kayla tausche and scott wapner. the euro touching a five-week low as eurozone leaders hold a summit. and we are monitoring developments there. michelle's over there. we're getting great reports from her. at the bottom of the hour we'll hear from billionaire investor wilbur ross who is quick to acknowledge that that was a misstep that he and his

colleagues made that was made with investment into that greek. i thought there would be a 70% yes vote which shows you what i know on sunday. >> so did half of wall street. >> that's what i mean. and i just decided that it's impossible that we can't sort of foist our democracy in the middle east and they think yeah you're doing it right. we can't do it with economics either. now i understand how someone as smart as wilbur ross probably thought they were going to win. then they elect a socialist and give him carte blanche with the no vote. we'll ask wilbur about that. >> question is do they know what they were voting for. >> do we even know now? >> a lot of the people we talked to yesterday said it was a pride vote.

to have it determined by germany. >> we will hear from wilbur in a bit. among the other stories we're watching at this hour negotiators face a midnight deadline to finalize a nuclear deal with iran, but both sides say it's a soft deadline. more meaningful deadline is july 9th. and after that congress will have 60 days to review an agreement instead of 30. stocks in china falling overnight. boy, things have been so volatile there. that's despite measures enacted this week. among the catalysts, china's failing to mention market on the economy. and the price of oil stabilizing after yesterday's big selloff. oil prices have now dropped more than 10% in the past week alone. traders citing market changes in china. for the slide in crude. perhaps iran as well and u.s. equity futures at this hour looking pretty good.

the implied open on the dow would be 65 and s&p with 9. >> a firmer market reaction than i think many were expecting ahead of that summit today. as scott mentioned, diplomats working to meet today's deadline to forge a nuclear deal with iran nbc news tehran bureau chief is here to tell us how this is all playing out inside iran as negotiations reach a deadline in vienna. >> that's right. another deadline is due to expire tonight in the negotiations that are proving to be somewhat elusive. it looks unlikely they'll meet the deadline. one issue that seems to be holding u up the talks is u.n. sanctions on -- iranians have said it should be lifted because it has nothing to do with the nuclear program. western diplomats are finding it very hard to accept that argument from the iranians

saying these two go hand in hand and it needs to be sorted out together. what i can tell you, the mood in iran, this is a country that's very anxious. everybody is waiting to see what's going to happen on these nuclear talks. that's all i ever get asked on a day-to-day basis. will a deal be made will the economy get revived? it's a question i can't answer. we have to see what happens with these talks. but the people in iran have extremely high hopes and expectations for this deal to come through and see a revival in the economy. and if it doesn't, it's going to deal a bitter blow to the iranian people. not only for the economy here but also a very big psychological blow here. it's really really going to put people down in the dumps if they don't see any light at the end of the tunnel. because this has been a long process. a 12-year process. and they've been negotiating very hard for the last 20 months. for them to come back empty handed from this is not going to

go down well from the iranian people. and it will put pressure on rouhani. if the sanctions are lifted on iran, president rouhani has no excuse to revive the economy. but it's still going to be an uphill task. i spoke to an economist last week saying sanctions aren't the only things that really hurt this economy. it's the chronic mismanagement and corruption. and both aren't just going to go away overnight. back to you. >> secretary of state john kerry said it could go either way. he wants a good agreement. so we're watching that deadline. our thanks to you. >> for more on the hot spots from around the world, we're joined by cofounder of the policy initiative. this is a great segue into talking about this. i'm naive. i thought they were going to vote yes, obviously.

but if we can sow discontent in the regime i thought we wanted regime change. maybe kerry's been playing us all along and they're going to walk away. you know, they're going to -- but that's not really what's happening. >> no. >> why would we do something that iran want so much? >> well i don't think it's in our interest. some of the top aides to the president said a nuclear deal to iran would be what the affordable care act is on domestic policy. >> is that good or bad? >> right. but they view this as something that will define the obama administration in history. and what their terrified of is congressional scrutiny. and one of the reasons they're rushing to get this deal done by july 9th is the way the congressional legislation is

written. the review period goes to 60 days. that means all the documents go to congress. they get to scrutinize that for two months. they're worried this could be really bad. >> you're saying if it was 30 days they wouldn't catch a bunch of things that are against our interests. >> not only that. but in august congress goes back for recess. now, this iran deal and these negotiations are pretty unpopular with the american public. so suddenly congress is back home. the american public is starting to learn about the details of the deal. you get 30-plus days back with these members of congress having to deal with town hall meetings and the press in their districts and states and then they come back for another 15 to 30 days. >> after 30 days, it makes that much difference? >> absolutely. it's just more time to -- i agree. but it's more time and more space to really dig in. and members of congress have to

go home and deal with their constituents during that process. >> would it have as much an impact if it were in the first quarter than right now in the middle of vacation when these congressmen are at home with their constituents? >> i think the administration know what is they're doing. they believe it's risky for members of congress to get access to all this information, have to go home and be scrutinized by the public and then come back and have to vote on it. in order for this to get voted down in in congress every republican votes against the deal. you still need a number of democrats to vote against it. some say this may be barack obama's legacy but it's not my legacy. >> the deadline was about as in the past as like the red line in syria. wondering why they're suddenly

honoring. is it wrong for us to be watching what's happening and to get the notion that we're -- every time there's a road block, we back off? >> i'm stunned by this. i mean look. the iranian government knows the administration wants this deal. the iranian government knows that they are under this time pressure. so they are now starting to move all these goal posts knowing the administration's -- keep in mind weeks, months ago the administration said we will get any time any place sanctions. 7 -- inspections. we will be able to inspect any where any time. now the administration has caved on that. one of the explanations they have given for caving on that is we wouldn't let the iranians inspect our facilities any time any place. nuclear facilities. so why would we subject them to that kind of standard? as though there's some moral equivalence between the way rerun our national security affairs and they run their national security affairs.

>> i don't think that's far off for this administration. >> and the other issue which is the one we just heard from your report in tehran is the administration is under pressure on whether sanctions should be lifted on conventional arms. which we always assumed these sanctions will remain in place. the debate was whether or not the sanctions should be lifted. we want all sanctions lifted. >> that's the point about moving the goal posts every step of the way. is that going to happen or not? >> look i think you have two trends that are working in a dangerous direction. the iranians want a deal and the administration wants a deal for two very different reasons. there is this deadline that the u.s. wants to avoid. and i think they -- if i had to bet today, the odds are 50/50 saying it will be horrendous.

i'm just struck. okay. let's see. the caved on any time any place inspections. they've caved on effectively on immediate sanction relief they basically said they're going to get $150 billion immediately. they've caved on access to information about the previous nuclear. access to what you've been doing up until this point. we need to know where you were. what they call the previous military dimensions to the program. now they have caved on that. kersey says if this is about the future, it's not about the past. so issue after issue they are dropping these things. the administration used to say no deal is better than a bad deal. which i agree with. i do not believe that is their

point. >> when kerry said that did you really -- when he said we might walk i said i can't do that hand signal on tv. but when he said that i can't believe him. and that's the problem. because they didn't believe him either that he's ready to walk. that was pure theatrics to try to -- i don't know what it was. >> to your earlier point, if you look at issue after issue but just a practical level. when the administration says there will be a red line as you said on syria. there will be -- they didn't use the term red line. but they effectively said there would be a red line on stopping russia's behavior. issue after issue they let the red lines be crossed, what is the lesson the world takes from this? >> you know there was the oil market. we may walk away. 8% down. because you know iranian oil is coming back on the market. >> you already see the business

community in the past who had left because of the sanctions are all pouring back in. they see where this is going. >> you know anything about greece? we got to go. we don't have time to talk about it. >> i'm worried less about the economic contagion. there's an election in december in spain. already the left wing party there is already pointing to greece. you're going to see country after country saying -- >> can you confirm is catastrophe is an english word. isn't that an english word? >> yeah. i think that every time i walk into starbucks. >> oh. so you're going to -- high five. you like my starbucks rant? >> i -- i -- i -- starbucks makes good coffee and full of hypocrisy hypocrisy. >> thank you. coming up we will talk more on market strategy just how important greece is to your

money, and what else you should be watching across the globe. then correction corner. global markets in correction territory that might surprise you. not just the ones you know about it. plus walmart's version of shark tank. the company holding a contest for new consumer products made in the usa. "squawk box" will be right back.

welcome back to "squawk

box." take a look sat the futures market right now. we are still in positive territory. the s&p has an implied open of 8 points. the dow about 65. nasdaq by 17. so still in the green. also in the news a pharmaceutical buyout business horizon pharma is looking to buy depomed. it's a total value of about $3 billion. it is a 42% premium to depomed's price yesterday. no response yet from depomed which has rejected overtures from horizon in the past. certainly when those stocks open for trading we could see different action. that's what we have this morning. >> what was the price for depomed? what did they say they were going to get? >> let's go back to it. i think it was -- >> 42%. >> yeah. i don't know. it's a $1.2 billion company.

so 40% premium in equity it's -- >> you think it'd be moving? >> no. it's not $3 billion. they're either including debt. they like to make it seem bigger than it is. so it must include debt sor something. >> we'll get you an update when we have it. european leaders gathering today to talk about a greek bailout and the markets are watching every move. joining us with more, monica de senso. it's great to have you here. what are you watching for? what do you think is going to happen? and what do you make of the fact our market has largely sort of blown off this no vote for all intents and purposes? >> more people now think an exit is likely more than a week ago.

but to your point the u.s. has shown to be resilient. in the u.s. saying the risk is low. as a result they're looking to see here. and i think a lot of people are focused on that. >> should we care maybe more than we appear to about greece? >> if you look back at the history over financial markets, we tended to underestimate contagion. so it's not because of any particular thing we can point to that will say this is the next problem. but time after time when there has been a shock to the global market contagion is more. >> are we underestimating it? >> i think we probably still are. first of all, i don't think greece is going to exit the eurozone. i think there's better than a 50/50 chance something gets worked out. >> monica you make a good point. earning season in front of us that's going to dictate the day more so than what happens an ocean away. >> i think so for u.s. stocks.

the the strong dollar and low oil, people will saying what's the second half look like. >> what's going to be the deal we the u.s. market? do we have a catch-up trade to other places around the world? >> i think so from earnings. expectations are very low going into the quarter. when you look at the impact of the dollar it's actually very similar to q-1. we think we'll see a nice beat through the second quarter that can give you a rally through august. >> ed? >> i'm a little more cautious we have been slowly pulling back. and i think that the -- although i think greece will stay part of the eurozone it's hard to estimate the difficulties that may cause for global financial markets. increases uncertainty. the same tame you just talked about the issues in china, u.s. equity valuations are a little higher than they normally are. earnings growth will be close to

zero this year. i think as time goes on we'll look forward to 2016 where it will be behind us. but the relatively weak earnings growth and little bit of premium valuation, i have been more close to benchmark in my asset portfolios than the last couple years. >> it's not going to take much to beat expectations and then you know what's going to happen if earnings come in better than expected. >> yeah. i worked for a long time before i came onto provincial. every quarter for the last 30 years. so it's not a big surprise if they're surprisingly good. but i do think overall it is relatively slow and you still have pretty high profit margins. even higher it looks like in some cases. i think what will happen is this year we could see relatively weak profit growth or strong

profit growth for the next several years. still bullish in the long run for the stock market. but more or less the trading range the last couple months. but not a lot of upside from here. >> how choosey do you have to be? >> this is the story in the u.s. while the overall market is valuable we're seeing some much over 10%. health care, technology, and financials. we think you want to focus on those rather than saying the overall market is going to run significantly. >> good to see you guys. monica dicenso and ed keon. whitskey row. we'll show you the video after the break. ah! aflac? aflac! i thought you said this guy was the best?

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try the un-carrier risk-free for 14 days you'll love it, or we'll pay for you to go back. welcome back to "squawk box." a three alarm fire in downtown louisville, kentucky ravaging the area known as whiskey row.

three buildings were damaged. this is an area of historic buildings being redeveloped into new apartments as well as some retail and restaurants. the fire happened on the same block where brown foreman plans to create the old forester distillery experience. the good news is those buildings were not damaged. louisville sluggers. >> yes. >> and i have toured the louisville slugger facility down there. >> louisville. >> louisville. and you know why i was down there? the ned beatty celebrity golf tournament 20 years ago. >> were you caddying? >> ha-ha. no. >> that was the last time you were there? >> yeah. ronnie cox was there but do not

bring up deliverance to ned beatty. >> you just did. >> if you're with him, don't bring it up. i think it was his birthday yesterday. carl tweeted something out. >> did you bring it up and is that why you say that? >> no. i was instructed not to and i did not. >> that's funny. i would think you would. >> you're right. except he was the host. coming up do you know which of the stock markets are in correction territory? dom chu joins us next with countries that could surprise you. and as we head to break, take a look at equity futures. looking pretty good two hours before the open. "squawk box" returns after this.

♪ welcome back to "squawk box." eurozone leaders gathering in brussels today for a summit on greece. catching up with some of the main players just moments ago. >> yeah. hi, scott. we stood here and we spoke with

the euro group president, mr. blume. he's the dutch finance minister. but he leads this group of finance minister. and he says in spite of some of the volatility around this story, he thinks now they have demonstrated they will do whatever it takes to keep the eurozone firm solid, and together even if that ultimately means that greece leaves. we are anticipating greece proposals and the suggestion is they come back with something that looked like the last set of proposals with a few items taken off the table. so at this point, difficult to see how we're going to make very much progress on that because we think the line has toughened up here since the greeks were last in brussels negotiating. we also spoke with commissioner on the way in. and i asked him about debt restructuring. whether that could be on the table at all today. and he dismissed that suggestion

and said no we're not talking about debt at this point. this is about trying to put a package back on the table that we can start considering. so very early here as far as progress on greek negotiations. i have to say right now it still looks 50 50. back to you. >> an important distinction. we appreciate it. let's talk investing abroad more broadly. dom chu joins us with a look at some struggling stock markets and a special report correction corner. dom? >> so kayla, you guys got some props in front of you guys so this is like stocks on sticks but we'll call it countries on sticks. we know what geoff just told us about, we've seen one stock market take a huge hit. that's one of the benchmarks in athens. the composite index. we're down about 36% from our highs a year ago.

firmly in correction territory. certainly in bear market territory. if you look at other markets around the world experiencing some of this heat. i want you guys and you guys have sticks in front of you to guess along with me here. i'm going to throw clues about the economies of these countries. you tell me which country it is whose benchmark currency is falling into correction. you've got a $3.6 trillion economy in this particular country. china is the largest trading partner with this country here. and the major exporter of fossil fuels is a giveaway. if you look at what you've got in front of you, you have a brazil flag something else tell me what you think? >> >> we'll let joe guess first. >> all right. >> i love dunkin'. all right. that will work for that one. anybody else want to fathom a guess on this particular one?

no? yes? >> i don't know if they want to play either. we're not big on props. kayla, pick one. scott, come on. you do things on half-time. do something. >> did you see her job friday stuff? this was your idea right? >> no. yeah. my idea. if you believe that i got a bridge in brooklyn i'm going to sell you too. let's go through it. this when here is an interesting one. the moscow index. you can see over the past year down about 32%. the next one here i'm going to go through. you're talking about a labor force of $43 million. 60% of the country is in services related industry. and major exporter of motor vehicles. we know this is germany, right? and so germany,.

>> thanks, dom. >> the dax in correction territory as well. and we'll throw the other one up there. now let's talk about what's happening with brazil. you can see the bovespa index. now we're down again about 11% or so from recent highs. a lot of these countries around the world is experiencing these pullbacks here that have had recent rallies. it's not just greece right now but the question becomes whether or not all of this greece situation, what's happening in china, is going to cause a little bit more of a pullback for these markets. remember, france italy, all these guys are in correction or very close. so just a look globally. it's not just about greece. back over to you. >> you're a good sport. we always appreciate it. dom chu. we love you. >> we love you too. >> that's nice. coming up wilbur ross holds

a huge stake in a big greek bank. he speaks to us about the way forward for greece's financial system. he'll give us an honest answer. ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?

our next guest has skin in the game when it comes to the future of the greek financial system. wilbur ross chairman and ceo of wl ross and company is with us now. he's part of a company that invested $1.8 billion in euro banks last year. he is the largest shareholder in greece's third largest bank. i found myself, wilbur just thinking of you over the weekend because i was absolutely sure it was going to be a yes vote which shows you that i think that's probably when you have said a couple of times on record here that your group was pretty certain that tsipras wasn't going to win the first election. now, what happened over the weekend since you already saw that happen this was a surprise to you or you don't, you know try to forecast anything at this point. >> no. i think what changed the course

of the election was the imf release of their report saying that there was a reduction in greece's total debt needed. mr. tsipras seized upon that as saying, look even the imf thinks i'm right. we need a different deal from before. until that point in time the yes vote was actually leading in the informal polls that were being taken. so strangely the imf statement was in my view the turning point in that election. >> that's crazy. so you're telling me the average person in greece was that close to -- had that much knowledge about the situation that they said, well if the imf is wavering maybe this gives us a chance to get a better deal. >> remember too, while there was 61% of those who voted voting against the deal only 65% of the people voted.

so that means that under 40% of the whole population is what we're talking about with the no vote. >> i thought maybe that when the other side -- when the yes side had all the advertisements and the dire warnings about what would happen i thought a lot of greek people said, look, you don't -- germany's behind this and you're painting these terrible scenarios as going to happen. we're not that easy. if you think we're that stupid we're going to buy into it. i thought we decided they did it out of pride sort of. >> there was that element of pride, but also remember mr. tsipras also promised vote no and within 48 hours i'll get you a new deal we the eu. that was his campaign promise.

i hope he'll be able to stick to it. >> how will that work at this point? you know how these banks work. even if you were to get a really fast resolution when can people be expected -- when will the controls be lift snd when would you see some type of normalcy with greek society? >> that's a harder question. because every day that it goes with all the restrictions means it's going to be harder to get it back onto a level course. but the strange thing is the banks still have much more collateral than they need under the ecb rules even with the little reduction and valuation of collateral that they put in yesterday. so the real key to liquidity in the greece banks right now is the overall cap on 89 billion euros. it's not the lack of availability of collateral. >> what was hard to understand. so that was the hair cut that

you're talking about. so they didn't raise the cap but they extended the cap. they did a bit of a cut and it went down a little. >> they could have taken the collateral down a lot. for example, if they took it down below the 89 billion, then the banks would have been in the real problem of having to make immediate repayment. so it was conciliatory relative to that. but i think it was meant to be a warning shot over the bow saying we're going to give you a bit of time here. because we'd like to see these negotiations play out. but remember we can still pull the plug. >> one of the points a lot of outside observers are watching is how much longer their cash will last. there were officials saying that greek banks could run out of cash as soon as yesterday.

michelle caruso-cabrera said this morning it's a good sign there are lines at atms. that mean this atms still have cash in them. as a shareholder in a greek bank, do you get the sense they have days a week left of cash? >> it's certainly days maybe a week or so. but they have been running out of the small bills. remember the origin nap idea was 60 euros a day. some of the atms and some of the banks are pretty well out of 20 euro bills. that's why they started substituting simply 50 euro bills instead of the three 20s that reduced the amount of cash going out. but i think the real purpose was an actual shortage of the physical 20 euro bill. >> what would happen to euro bank if greece exited the euro? >> the first thing that would

happen is a lot of euros are right now in bank accounts outside of greece and hidden under mattresses and religious and -- refrigerators and walls and whatever. it's law that bad currency drives the good currency out of regulation. you'd have the drachma trading. my guess is it would trade between 50 cents on the euro. so it would be a pretty bad hair cut for the people and if you think about it cutting the value of the currency would automatically cut the value of the pensions and everything else. >> that's what i mean. which is what kept me thinking

they'd go yes. it's not foisted upon you by somebody else. that seemed to be their notion. that if we commit suicide ourselves rather than having you know the kowtow to germany, you feel better about yourself. if you devalue down to 25 to 50 cents on the dollar that's even worse. >> absolutely. >> people knew that, though, didn't they? they knew that and still took this route. >> and i don't think they believed -- remember tsipras is the national leader of the country. still is enormously popular. played the patriotic card very very well. i think it was an emotional vote. that's why the imf publication was so important. gave them peg of outside legitimacy that had been lacking before. >> so do you -- if you were to

really look inside the heart and sole of germany, what do they want? do they want greece to stay in the euro or do they want greece to exit the euro? >> well i'm pretty sure that angela merkel wants greece to stay in. once you have anybody go out, it starts to affect the fragility. >> what do you think the chances are right now that it stays? >> i think the real question will be the proposal that mr. tsipras puts in apparently today. if that's reasonably in the ballpark of where the european leaders are, then there'll be a deal. if instead he goes back to a more extreme position than what varoufakis had had last week then i think there would be no hope. >> so what is it? 50/50? >> my guess is that he will make

a better proposal. i don't see why he would have had varoufakis step down if he were just going to take a more extreme position. so to me that was an important symbol. >> 60% that they stay? >> yeah. i would say 60/40. what makes it really hard to judge is greece has more lawyers per capita than the u.s. so that makes everything a little bit more complicated over there. >> yeah. and explains a lot about their position, their financial position as well i think. doesn't it? >> i fear so. but they talk about they don't want to cut the pensions. pensions are 18% of their whole economy. that compares with 7% in ireland and 5% in the u.s. so it's not exactly that a percentage of gdp are small. >> who did shakespeare want to kill? the lawyers, didn't he?

or the bank? >> i'd rather kill the lawyers and save the banks. >> kill the lawyers, save the banks. all right. thanks wilbur ross. and we'll see what -- well i know you're watching it closely. great to have you on. you can update us maybe later this week. we'll see what happens because it's moving fast. it's got to move fast. see you later. >> thank you. coming up, walmart's version of shark tank. the contest is on for the next hot consumer products made right here in the usa. that story's coming up next.

walmart calling on suppliers for a shark tank-like pitch to get their products on the shelves of the world's largest retailer. courtney reagan joins us now from the main event in arkansas. good morning, court. >> good morning to you, scott. in a few hours walmart will hold its second open call event here at the headquarters. and that means we're going to have meetings with over 300 potential and existing made in the usa product suppliers and walmart buyers. it will be their own shark tank pitch presentations to see if they can get that merchandise on the shelves. two and a half years into the pledge to spend $250 billion more in made in the usa products by 2023. and walmart won't say how far it is towards that goal. nor will it quantify how many made in america products it actually has on its shelves or on its website. however, walmart did say it made

many deals with the suppliers that came to this event last year where over 800 meetings took place. neither are able to quantify in a sales sense how this initiative is or is not paying off. according to consumer reports, over eight in ten american consumers would prefer to buy an american-made product over an imported one. and 60% say they'd be willing to pay 10% more for that product. though it does remain to be seen if that intent is actually being followed through. perhaps the biggest winners here today will be the suppliers. getting a product on the shelves in walmart stores is a game changer for many of these businesses. some are small. some are large. still the walmart footprint in enormous. we're going to follow a duo on "squawk on the street." we'll take you into their pitch meeting and see how it goes for them. >> thank you so much.

all right. the women's world cup match was by far the most watched soccer game in american tv history. yet fox only snagged $17 million in ads from sponsors. that was a fraction compared to the $529 million espn raked in from last year's world cup in brazil. the disparity lies in wages as well. the national women's soccer league set minimum soccer league this year at $6,842. that's one-ninth of what their male counterparts make at the low end. men's teams played for a total of $576 million in prizes last year. only $15 million was up for grabs from the women's teams this year. that guys despite the fact that ratings were better than all broadcast primetime averages including sunday night football the nba championships, i could go on and on. sochi olympics. but we'll see.

>> those are huge disparities. >> huge disparities. >> huge. >> shocking. >> more than 30 million people watched at the peak. some people are saying maybe the popularity was drummed up by the men's performance last year the the world cup, prior olympics. >> we talked a little bit in chairs last week after the win over germany where i acknowledged i hadn't followed it. whereas when the men was playing i was watching every game. like a super bowl. i'm sorry, kayla. i'm not going to defend this. >> i like you're apollogizing to me. >> i think i speak for scott, we're giving blanket apologies to whomever -- >> i watch a ton of soccer. but the fact of the market is is that the women's professional soccer league which was attempted in the united states didn't go over well so the games aren't as accessible as they used to be. they're not on tv in the manner

that they used to be. so it's not as easy to watch. >> we'll let you handle this. >> of course the prize money is controlled by fifa. we won't go there. >> i defer to scott. am i safe there? >> is it a catastrophe? >> i don't speak greek. coming up two smart voices on the future for greece. first restructuring expert harry wilson. his take on what should happen and a different course which is what will happen. and nicholas burns will join us. "squawk box" will be right back.

greece on the brink. eurozone leaders in brussels now for an emergency summit is a last ditch deal possible? a live report and the latest market reaction straight ahead. plus negotiations with iran coming down to the wire. a midnight deadline fast approaching. the man who led the last round of nuclear talks, nicholas burns is our special guest. and former lehman head honcho dick fuld looking to sell his sun valley hideaway. how much it's expected to sell for.

the numbers will shock you. the final hour of "squawk box" begins right now. from the most powerful city in world, new york, this is "squawk box." welcome back to "squawk box" here on cnbc first in business worldwide. i am joe kernen along with kayla tausche and scott wapner. right now the futures of the dow up 65 points. which is not bad. futures in the morning yesterday i think were down significantly. and then closed down 46. and we're going to get that back and a little bit more if it were to hold up. obviously it's very headline driven depending on what happens in this very fluid situation over in greece. there's the european markets. which are kind of in a wait and see mode as well. just below -- just a little bit

red. now crude has turned around. it was bouncing back 80 cents or so earlier. now 52.33. there was a troika involved in that selloff yesterday according to if you read the papers which is where we get all of our information. but it was supposedly iran greece, and china is what hit the oil markets. that was a huge move down. >> 8%. >> for a lot of people to think that 70 is boone. >> and here stability was around 60. >> it wasn't that long ago it was at 60. >> right. but where we really thought 60 was part of the move from a hundred down to whatever it was. then 60 seemed like tracing back to where it was going to be sustainable sustainable. whoa knows. >> you've had a better entry point at the commodity itself or the equities around it. any time you thought it was a good time to buy, you've had a better second chance. >> do you -- does it not -- i

mean, we don't, obviously, make investments but i love it. i just love it when oil goes down. >> you drive. >> it's like a tax cut. >> we could see two dollars at the pump by the end of the year. >> good. >> we're going to be talking about oil, china, iran greece all day today. here are other stories investors are going to be talking about. eurozone leaders are gathering in brussels today for a summit on greece. more from michelle caruso-cabrera in just a minute with the latest there. meanwhile, chinese stocks dropping again overnight ending well off their lows of the session and fairing better than they have in recent trading sessions. you can still see shanghai down about 1.3%. this decide a number of new measures in recent days aimed at stopping a stock slide that shaved off a third of the market value in the last week. among the drivers, traders are pointing to china's premier

failing to mention this market chaos when he made a statement on the economy. and here's what former morgan stanley asia chairman stephen roach told us here on "squawk box" earlier this morning. >> this model shift from manufacturing-led exports and investment to services-led consumer demand is something that they are continuing to emphasize. they're not backing away from. and tactically they've got a big problem on their hands with the stock market and they're addressing this with short-term measures but they're not backing off of then fundamentals of this model chain. which i think is good news. >> also today, negotiators face a midnight deadline to finalize a deal with iran. both sides say it's a soft deadline. maybe like many in the past. they'll keep talking if progress is being made in return for allowing inspectors into their nuclear facilities. iran is making a last-minute push to lift the arms embargo.

searching for a suspect that stole $75,000 from a walmart. the suspect pulled off the heist disguised as an armored truck driver. the robber entered the story saturday morning, strolled into the cash office, signed for the deposit and walked out. walmart employees called the police after the real loomis armored car employee arrived 40 minutes later. the image was caught by the surveillance cameras but has yet to be identified by police. greece' new finance minister presenting a new proposal to the group today. michelle caruso-cabrera is in athens and joins us now with more. michelle? >> and that is the big event of the day, scott. what do they bring forward? what do the greeks bring forward and is it going to be good enough to give the other finance ministers and leaders to sign

off on something that would show progress? we don't expect a deal. we don't expect a dispersement. we expect if there's any progress, anything positive it would be positive words to suggest they would continue to move forward. we wait and see. in the meantime the banks are shut. the capital controls are in place. and that is beginning to strangle this economy. take a look at what i have here. this is antibacteria soap that is manufactured and bottled here in greece. we spoke to the leader of the company. it's also a pharmaceuticals company. the ceo of cona labs. we went over there this morning. he imports a lot of stuff. five years ago his annual revenue was 60 million euros. he's had to lay off about 10% of his employees. 20 of them. and he's really struggling because he imported so many materials. whether actual pharmaceuticals

to distribute or products that go inside the soeb. the problem is money cannot leave the country. those are the capital controls. so he cannot pay his overseas suppliers. >> it's creating issues with our providers. we import a lot of pruktss. we import raw material. and although a lot of our partners have given us space to breathe, if this goes on for longer, it's going to become a real issue. >> he says he hasn't slept well in five years since the crisis started. i said what if the banks are closed for months he said he can't believe that would be the case. theoretically he is on a list of preferred suppliers for products in the country. what they're doing right now is putting together a list of things like foods medicines, et cetera. if you're on that list you can go to them and apply for the hard cash the reserves to pay

your overseas bills so those things can be imported. he says he's tried in practicality. that twalt hasn't started to function yet. he's getting nervous about whether the process is going to be put in place. so write that across the entire economy and it's pretty tough. >> certainly is michelle. stay tuned we're going to talk much more on this with someone that has more on the fallout on greece. let's speak with harry wilson former senior adviser in the u.s. treasury department. i was going to kid you and say we brought in an expert on greece because you're greek. but there's more to it than that. you know a lot. your comments about greece and you've advised the greek government at different times. i wasn't aware of this.

there's a word that means no. it goes all the way back to 1940 when the italian ambassador to greece to the access forces that we're entering the world war ii and it became a rallying cry. tsipras in your view played on greek pride. said let's make it a national pride dignity but then didn't really -- wasn't forthcoming or truthful about what the consequences would be. >> that's right. he was a shameless demagogue. a national holiday in greece. it was a point of greek pride. it was the first allied victory of world war ii. will not be said that heroes fight like greeks but greeks fight like heroes. it's fay nous throughout greece. and totally misplayed the people. and it's terrible. only good news there is that

people will see very shortly the emperor has no clothes when banks are out of cash, when grocery stores are unstocked and when people can't fuel up their cars. then you'll see that that will create enormous pressure on tsipras. >> you've got sort of contradictory remarks on the eurozone in general. it shouldn't be there now and shouldn't be let in in the first place. you call the whole thing ill conceived. yet we're fully involved with it. now we're stuck with it. so your view is that germany and the euros need to stand firm. they might not. >> i think they have to stand firm. there's an equivalent party, spain, italy, portugal saying the same thing. people forget the complete error of the greek parliament. now they control the government. that can easily happen to other

countries. so they have to stand firm. >> you're 50/50 that they fold aren't you? >> i think it's -- yeah. i hate saying 50/50. i think that's basically right. and i think the questions in time to avoid a disaster. >> they look tough. because they got all the stuff. and they're talking tough. and merkel looks like margaret -- like the iron lady. people are comparing her to margaret thatcher. but you think they're -- i think germany needs to weak euro. they'd like greece to stay. >> sure they would. but they've maintained those standards in the other countries. i think that's why tsipras will fold because of that. then the question is does he fold in time to get to a deal? >> even if he doesn't, this political con today gent people are speaking of that you're mentioning here that dan mentioned when he was sitting in that very seat half an hour ago, that already has the risk of

succeeding, does it not? leaders in other countries are those who are going to run for office already can see how you're going to be successful by waging this same sort of campaign regardless of how it plays out at this point. >> with one major exception. the chaos and pain is going to be so stark and so immediate, it's not going to play out over five years' time. people will not have access to food. i think that will be the center right's response to the leftists who may take the strategy to say yes, you can try to act tough but here's the outcome of that. >> we have to ask you about gm while you're here. you brokered a deal this year or i guess last year to improve capital over the company. stock's down since then. i'm wondering what you see as the next move for mary barra and whether you're happy with the performance. >> i think the deal we negotiated for was a number of things. part of that was a major purchase. so that's become more attractive now as the stocks got cheaper. the earnings have improved since

then and the stock's off 15%. by contrast some have concerns about where they are. so the results have been pretty strong. i think that we'll reverse and i don't think gm will be the cheapest stock in the s&p. >> do you think it's something that should happen? >> i don't think so. i have respect for sergio. he's a smart guy. there's probably to more than he laid out to date. it's true tlas lot of capital in the auto industry. that was part of our argument at the time. that is true. but that's only part of the equation. a deeper case to make i suspect he will make that. >> back to greece for a moment. would you as an investor put money into anything there?

what are they talking about? >> not yet. i've passed leading up to this because the pace was so slow. who didn't have the political capital to make major changes. greece is no different from gm in 2009 or any other major restructuring which is there was a clear path to resolution. so far the leadership is total ly falling down on that. i think that with proper nudging, it will be grudging at best. >> what happens is the eu goes slow. the pain becomes really obvious to the people in greece. >> in case it isn't already. >> and they will keep things just barically functioning but the pressure will mount on tsipras.

he's set himself on a box. but he can say, look i got rid of this other guy who kept talking to me about this stuff. and he's gone. he's got a way to sort of -- you can't say it's a total phase. >> maybe have some cosmetic thing. maybe take longer on that. because the details are mind numbing. and so to the average person on the street he'll be able to spin it to the point he'll be able to save face if that's what he tries to do. he totally miscalculated. he was close to a deal a week and a half ago two weeks ago. he walked away from the table. told totally miscalculated that. before the referendum he had a blank moment and now he's in the middle of that. if i'm wrong and then the question becomes the europeans provide effectively humanitarian package and a managed transition to drachma or something else and

i think that's the next best alternative. >> it's a case study, though in all kinds of stuff. it's a greek tragedy. it's unfortunate. a developed country where its people are all of a sudden like they're in a third world country. it's not good to watch. but it's certainly fascinating. thank you. >> thank you. >> what's mulva? >> i remember the gm board. >> they hated when i used to say that. i would always say mulva. the ceo would come on we'd play that. >> i'm much more good humored. >> you are. >> harry, good to see you. coming up nicholas burns. and later with so much geopolitical pressure on the markets what stock picks could make you money now? we ask a platinum portfolio

member. "squawk box" will be back after a short break. never settle for verizon's overpriced gimmicks. try the un-carrier risk-free for 14 days you'll love it, or we'll pay for you to go back.

welcome back to "squawk box." let's take a look at where the futures are indicated up today. up 55 points on the dow jones. up 7 on the s&p.

and indicated up about 13 on the nasdaq. i wish i knew where they'd be right at noon when that great show "halftime report" comes on. >> you don't tune in? >> i do. >> but that show moves the markets. you can't -- >> is that legal? >> moving the market? >> yeah. you don't try to do that. >> we don't manipulate the market. >> i thought that's what kayla was saying. >> moving on. >> he says that a lot, this producer. thinks he's controlling the show. ooh. okay. two major events looming over the markets. greece on the brink of financial meltdown and the deadline for a nuclear deal with iran. our next guest has had an illustrious career spanning 27 years. he was the former undersecretary of state for political affairs,

ambassador to nato and the lead negotiator on iran's nuclear program. here with us now is nick burns. he is currently professor of diplomacy at the harvard kennedy school for government. ambassador thanks for being here. >> good morning. >> there is so much on our plate this morning. but i suppose we should begin with greece. how do you think this is going to play out with this meeting taking place today? >> well it's a consequential moment for the european union. there is a meeting tonight where alexis tsipras will meet angela merkel, francois hollande other leaders. i think they want to keep greece in the eurozone. you're beginning to see statements from the lux m borg finance minister. they say they could count some renewed pack only of the one that was offered two weeks ago to keep greece in the eurozone. frankly alexis tsipras has

miscalculated here. he hasn't read the europeans correctly to date. his banks are closed. his people are really suffering. i think he has little leverage. i think you'll see a new package emerge with face-saving compromising for tsipras. and within a day or two i would expect an agreement from athens. >> everybody so though he may have miscalculated. but it's almost sound as if he has a stealth leverage if you will knowing that the others don't want greece to leave no matter what. >> i think the europeans are leading a tough choice. and some germans like the finance minister or germany seemed to be willing to let greece leave the eurozone. but the risks there, of course is unintended consequences. will there be -- mark your reaction they don't anticipate.

on the other hand they don't want to set a precedent here in giving too generous a package to the greeks because they worry the spanish, italians portuguese may be back at the table with them a year or two from now with the same terms. looking at the public statements this morning and the statements of the french finance minister as well, it looks like the french are pushing for some kind of deal with the greeks that would keep greece inside the eurozone. >> speaking of pushing for a deal as the former lead on iran's nuclear program, this deadline tonight, how's this going to play out? >> i think they will not meet the midnight deadline. we're already seeing statements out of some of the foreign ministers maybe to come back in a couple of days. frankly i think these deadlines don't work. to cause the iranians think we can do undue concessions. it may be these talks go on for another day or two or three. frankly in my mind that's fine.

this is a ten-year effort since george w. bush started this effort to negotiate with iran extending now to president obama. if we take a few more days, it doesn't hurt the national security chances of the united states. >> is there a chance secretary kerry walks? >> i think there's a chance. he said he would do that. i don't think it's a great chance because i think they're probably quite close to a deal but there are some remaining issues. one of them is that iran and russia apparently want the united nations arms embargo on iran lifted. i think that would be a great mistake. iran is selling arms gives arms, fueling civil wars in yemen, in lebanon, in syria, in iraq. so those prohibitions on iran are important. they've been in place now for nine years. >> part of the issue here and we've discussed it this morning already is that what makes these talks maybe more contentious, more difficult to an actual agreement is it appears as

though iran keeps moving the goal posts about asking for a lifting of the embargo. >> that's exactly right. this was to be expected. negotiations are often like this. countries raise seemingly extraneous issues at the last moment thinking that you're so separate to deal that you'll compromise. i think secretary kerry is too smart for that. i think the u.s. will resist trying to give up the embargoes. one of the problems the united states will have the next couple months or year is we're trying to freeze we have to deal with an iran making a push for the middle east. that's why these arms embargoes are so important. and so i think they ought to be maintained. the russians of course want to lift them because the russians want to sell arms to iran. there's a ban on exports of conventional arms. that's the russian interest here. it's purely commercial if you

will. we've got larger interests in the middle east. >> but you don't see secretary kerry being between a rock and a hard place. the hard place being if you don't get a deal by july 9th then congress has longer to review this. >> they prefer a 30-day review by congress. that means getting it done by july 9th in vienna. but frankly i think the administration understands that there's a very high bar they've got to meet here. they need to have a deal where the -- there can be unfedered inspections by the national atomic agency -- >> mr. ambassador, if you could excuse me. i apologize for interrupting but i want you to react to headlines that are literally crossing as we're having this conversation. this from the u.s. department of state according to dow jones that interim iran nuclear deals to be extended until july 10th. they're saying they're taking iran negotiations quote, day by

day. apparently more concerned with the quality of a deal rather than a specific time frame of having to meet that over the next 24 hours or so. >> and it's a perfect segue to answer your last question. i think secretary kerry just answered your last question. obviously the administration's got to be concerned more by what's in this deal with iran than deadlines. so if they've just announced as you said they'll take a few more days i think that's smart. and frankly i think it undercuts the iranians a little bit. >> real quickly back to greece for a second. you know the country. i've been there. it's got so much potential. instead of just trying to figure out what to do with restructuring the debt what's the one structural reform that we all should hope happens there so that it gets to be you know fulfill its potential as a great tourist destination and a major player in the eurozone? what do they need to do? >> two, very quickly.

pension reform. people retire very early there. pensions are relatively generous. and also tax reform and tax collection. improving tax collection. just getting revenues owed in that state into the central bank is important. it's not happening now. >> okay. we're going to go to break. i was going to go right to the number. but we're going to go. i didn't know you were a screaming eagle. god bless you. >> boston college. >> that's right. all right. i got friends that played soccer with you. i just found out. they said that you were good. anyway, thank you. >> i never played soccer that's okay. >> you weren't on the soccer team? >> no. >> guy named richard wright at wesly high. >> yeah. i wasn't on the soccer team though. but it's a great school. >> thank you b, appreciate it. >> thank you very much. oil prices as we go to break got some data on the other side. we'll be right back. ♪ i built my business with passion.

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welcome back to "squawk box." rick santelli here live on the floor of the cme group with breaking news. may trade balance is a deficit and it's a bit larger. minus 41.8. sequentially larger about as

expected. slips in nicely between the low of the year the smallest at minus 37 in february. and march's biggest of the year at shy of 51 billion. we still have jobs opening and labor turnover. and of course interest rates are moving down as a flight to safety. of course it certainly seems as though we're going to pay attention to what happens to a country as it runs out of other people's money. back to you. >> thank you so much. more on the global economy. steve leisman is here. 41.87 billion. a little bit wider than expected. >> a bit wider. depending on what happens with the deflator because we use the real trade deficit, it will tend to take a little bit off growth. i think we've been running about 3.1%. maybe it's .1%. it's part of this recovery we've had since it was all distorted because of the port strikes in early january and february.

exports were up. looking at the percentages here. down 0.8% on exports. down 0.1% on imports. not a huge deal after the reversal or surge in april. and we're looking at other data. we've got the all american survey tomorrow. we also have e the minutes of the federal reserve meeting. >> do question get jolts today as well? >> look at you. jolts at 10:00. it's not clear how that's a trading number if you know what i'm saying. it tends to -- >> it's more of an affirmation. >> you're right. it contributes to the general understanding of the tenor of the job market. are there a lot of job openings? are people quitting? a sign of a positive job market. not a whole lot of trading goes around that number. >> but the excitement is palpable. >> well you leave here at

night, do you stop pull over to hear jolts? >> i wait. >> you wait. that's right. >> you don't have to pull over with satellite radio. just keep going. >> that's right. >> are we done? do you want to summarize your weekend for me quickly? >> it was a great weekend. really well played. marvelously produced. broke attendance at soldier field. >> that's amazing. the grateful dead. >> 210,000-plus tickets sold. trey from phish steps in marvelously on guitar to play lead and fill jerry's shoes in what i call a humble and bold way. bob wier on guitar was fantastic an on his game. phil was marvelous and the other guys. my best story was mexican coke. can i tell that story?

i was in an elevator with bill murray and he said to a guy, is that mexican coke. and the guy said yes. then i looked to the side and he had a glass bottle of mexican coca-cola. bill murray recognized it like that. he stops the elevator makes the guy get out, takes two large guys and said can you come with me and get some mexican coke. and they go and bring back multiple bottles of mexican coke up to bob wier's room. that's the new backstage. >> a little different flavor. not as sweet. >> bill was there. al franken was there. all these people were there. the guy who wrote "game of thrones" was there. it was a huge, amazing backstage scene. >> was bill walton there? >> will walton and i will the aftershow. >> could you smell? was there a lot of pot? >> there was a good amount of

pot to smell. >> we're glad you came back to your day job. >> speak for yourself. >> all these guys do you know how many washington people were there? i'm sitting there, bob wier is singing tearing up the stage, steve, what's going to happen to greece on monday? right in the middle. hello to the guys from chicago, the financial analysts from south carolina. they're all over this place. it was really -- most of -- i know trading volume was down most of wall street was there at the dead show. >> do they love rick? >> no. they say thanks for giving it to that guy in chicago. i say he's my good friend. next have the bulls lost control? are you trying to make money during this hectic time? we have more on the other side of this break.

the greek debt drama could be nearing the final. here at home they are feeling the pressure. they do look from the futures they would open into positive territory. firmer at least for today. let's find out how investors can defend themselves overall.

louis navellier joins us now with his greece protection picks. it's good to see you. >> it's good to be here. >> so if you had bought the u.s. markets every time in the last four or five years that we got spooked by the sovereign debt crisis in europe you'd be doing pretty well. but is this another one of those times? >> sure. the u.s. is an oasis amidst the chaos. if anything it make this dollar stronger and keeps interest rates extra low. the central banks have to be cautious. things are slowing down around the world. so our fed does not want to raise rates at this junctionure. the revisions in the first five months of this year are bad. they keep revising payroll down. so they're not going to raise rates. the low rate environment just means more buybacks and the stock market has a great yield under it. >> so does that change your strategy if you believe the fed will hold off until next year?

because nouz the imf are in a position to say i told you so. if they do raise rates, something goes wrong. how do you greece-proof and china-proof too? >> well i'm glad you brought up china. first of all, those are the "a" shares in shanghai. obviously the retailers are lempbl leveraged. but the quality adrs in america, they're nowhere near as volatile as the "a" shares. and of course their government and central banks have stepped in to shore up their market. bottom line, money doesn't want to leave the market. we are going into an earning season. i take this window here to buy good stocks on dips. >> what are those dips? what are some our viewers can buy? >> well other than the ones we picked eded for the platinum club

a lot health care related. we like another health care related company that's buying health net. it got hit on the merger news. fear that there would be a second bid. but that's a great buy here on its dip. umbrella which of course make this chips in the gopros and the drones. of course gopro announced another camera yesterday. that got hit by a short seller. he's already taken his profits, i'm sure. now it's been upgraded by multiple analysts. they'll have great earnings. i bought more of that on the dip. and finally -- i forgot my last one. >> well certainly the picks you gave us look -- from the charts we were just looking at -- that they've been stellar performance. we'll have you back soon. >> thank you. >> louis navellier. coming up he played for the reds from 1967 to 1983 and made the all-star team 14 times. next week the all-star game returns to cincinnati.

and now hunt auctions is putting a number of johnny bench items on the block. hunt's ceo joins us after the break.

the major league baseball all-star game hits cincinnati next week. a number of rare items belonging to legendary reds catcher and a friend of mine johnny bench will be up for auction in the queen city on tuesday. david hunt is president of hunt auctions.

some of these things are -- i mean, that is pretty amazing, isn't it? this is from -- >> '75. big red machine. the players received it. each year major league baseball does this in the regional cities where the game is. it's a great event for fans. should be a lot of fun. >> you know in my mind i think i could remember every game of '75. but i remember there was a -- what was that issue? he was -- it was like an interference or something. >> yeah i think -- >> and louie. >> the memories are engrained in your head especially as a reds fan. >> that was truly one of the greatest hitting teams of all times. one thing i don't like is everybody remembers this. you lost. and the greatest catcher was on the other team. why does everybody remember you lost? that was the sixth game wasn't it? >> part of baseball and even what we do is the iconic moments. what people remember, what's engrained in their heads. >> what's this? >> there's one of them.

that's johnny bench's bat that he hit three home runs with in 1975 against a pretty good pitcher steve carlton. this is the actual bat. and we're honored that johnny selected us to sell a few things from his collection to benefit his scholarship fund. and he's so widely revered not just in baseball. >> i saw art hit four home runs in the game. and i was at the all-star game in cincinnati. >> both impressive. >> wip was a brand new stadium. let's go over these. >> rings in the front from the all-star games. from several of them johnny was in many over the years. these are just four of the rings they would receive just as participants in the game. each one of those are estimated around $5,000 to $7,000 for each one. >> business in terms of valuation, anything you can put your money in with the fed turning so much must be new highs for all this stuff? >> it's been interesting. we've done this for 24 years. and over the last five or six

year as the economy sort of rebounded and stabilized, these items and especially the historic pieces have solidified. they've not only stabilized but gone up in many of the high instances which compared to many of the markets -- >> i'm surprised you have a baseball here from '34 yankees signed by both ruth gehrig among other great names with only an expected price of $5,000 to $10,000. that seems low to me. >> we try to estimate things conservatively. to give people an idea what they're worth. obviously as an auctioneer you hope they go higher. but there's this common misconception that babe ruth is a rare signature. it's actually not rare. he was open and very willing to sign. but remaining in that con is rare there. >> do you expect that to go for a multiple then? >> it can. we've had many times where you'll estimate a piece -- we had a babe ruth ball years ago estimated at $100,000 and it got

$800,000. >> how about these? >> pretty good players. ted williams and mickey mantle. >> pretty good. >> yeah. this is a mantle's game-used bat from the 1953 all-star game which was in cincinnati. and this is a very special bat. this came right from ted williams' daughter claudia. we have represented their family in selling other things of his. this is the last bat he used in the 1960 all-star game. >> louisville slugger. there it is. thank you. >> thank you. when we come bab, jim cramer is live from the new york stock exchange with what investors need to watch. look at futures at this hour. see how we're set up. 60 on the dow. we're back after this.

let's get down to the new york stock exchange. jim cramer joining us. i know you have your eye on what's taking place in greece. the future is holding up and oil is going to be watched closely which has started to slide lower again. >> yes. i only care about the dollar here. and the dollar is just so strong, and every time the dollar has had one of these gigantic moving it's been bad for all the commodities. copper is down five cents

already. the futures were up 12 at one point. it's like how stupid is plywood. who does this stuff, and already they're down. if the dollar goes higher our market goes lower. we are about this earnings season and i don't want to hear number cut but we will if the number wasn't calm down. >> shake shack getting downgraded to a sell. they say it's too expensive. >> i don't know about that. they put numbers on dl. it's 325 earnings. is that expensive? i mean really. it is unbelievable. they're really talking. the subtle text of this is there is a lock up expiration that comes at the end of the month. there's only -- 47% of the stock is sold short. i've been trading 37 million to trade, well 37 million all in. we don't know how much is going

to come off but that's going to bust the short. >> yep. >> we'll go to city field. you'll cut in line. i'll stay in line. you'll look bad. i'll look good. >> as long as we're both eating shack burgers when we're done that's fine. >> i'm putting zu keenny on mine. >> i know you are. >> coming up. how much would you pay for former lehman brother's dick folds estate? we have the details after the break. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?

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former lehman brothers ceo putting his 71 acre idaho estate on the market. it's not just anywhere in idaho. >> it is the place in idaho. sun valley. likely the most expensive home ever sold at auction period. being auctioned off with no reserve so the highest bidder wins no matter what the price. this prosecute had been quietly listed for 59.5 million but the estimate now is between 30 million and $50 million. it's bordered by a river on one side. good fly fishing and then bald

mountain mountain. you have a guest house and a gate house. it's minutes from the sun valley resort. resort. dick fold couldn't be reached but i'm told they're selling because they don't spend as much time there. the option for the ranch is scheduled for the 19th. or there's an app, but you have to put down a half million in escrow in order to qualify. >> how does this come can pair to other estates in the region? it's an eye popping price but there are a lot of really nice ranching out there. >> yes. sun valley, a lot of celebrities and billionaires. the sale price there is around 10 million to 20 million. but all those acres with the river on one side for fly fishing and then the mountain in the back right next to sun valley resort.

70 acres. there's nothing else comparable in that. >> they're in haley. not quite as close as -- it's down the road. must be across the street from the golf course too. >> it's close to everything but you it's scluded. i don't know what he paid for it. he bought it in the early 2000s. it's beautiful. the furnishings, the lights the chandeliers the giant fireplaces, the stone work. it's top quality. really beautiful house. >> it's a lot, though. big mortgage. >> more and more people are auctioning off. this is just a kwa, i want to sell it. i want to get it done and get the best price. >> also he listed it for 59.5. and then it dropped. >> he clearly just wants to get

this thing done. >> he probably paid nothing for it. >> well he paid million for it. either way, yes, he will make money on this. >> wow. make sure -- >> not yet. let's anticipate. join us tomorrow. "squawk on the street" is next. ♪ good tuesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber. one last chance is how some are describing greek's meeting. futures trying to stabilize as greek headlines will be the story. ten-year yields come back to 223. oil is flat after the second worst day of the year and the euro hit a five-week low dipping below $1.10.