dull drums 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 both off today. greek prime minister alexis tsipras speaking to the european parliament this morning and promised greece would submit concrete reform proposals in two to three days. finance ministers expected to discuss the developments later today and all 28 european union leaders are scheduled to meet on sunday for another emergency summit. this morning, ecb governing council member told greece sunday in his words, quote, really the final deadline to reach a deal for economic collapse. guys, how many times have we said this is the make or break

meeting but it does seem hike this really is. >> he should have said really twice. or at least three times maybe. >> this is it. >> really really. this is like whack-a-mole. markets that go down they find a way and it's a lot of times not what you're focussing on. did you think once again we'll be 8% down? they have a plunge protection team like us but it's not working at this point. >> down 40% the market is over there in three weeks or four weeks. still up 10% on the year. >> and 70 in the last 12 months. >> it's like the wild west. we shouldn't extrapolate everything over here from what's happening over there. but 180 points here or 8% there, maybe that's commensurate. >> well wall street journal today, stocks plunged scarier than greece and that's written by the head of emerging markets

and global macro at global stanley investment management. they make the point which is hotly debated in the market to what extent does the market crash in china have a ripple effect on the chinese economy and that has a ripple effect on the global economy. people are divided on the real impact of the crash of the economy. >> there's a stock market down 8% and then it becomes does this mean that this debt riddled economy over there is not going to grow enough to support or carrie carry it's weight in helping it grow. >> they're trying to come in and put in place all of these measures to sure up confidence and it's having the opposite effect and is it making things worse over there. overnight more than 40% of chinese stocks were halted. not trading. >> but if it's up you know in the last 18 months, a ridiculous number. if it comes down and retracing

that does it indicate the underlying growth story in china. is it the market letting off steam. >> i think i heard this morning 15%, only 15% of household wealth in china is actually invested in the stock market. so the numbers aren't nearly as large as they are in more developed countries such as the united states. so that's lessening the fears but it's a good debate as we're looking now at the numbers. >> well the spill over effect you see it in the commodities. talk about the growth story. >> our markets recovered here yesterday after oil started showing. >> that was quite a turn around. the dow was down more than 200 points at one point. >> a lot of the commentary last night was is this a key reversal? it will mean the market has bottomed. let's check out the rest of the major markets this morning. here are the futures this

morning. here down 175. that's ugly. especially at the start of the day but who knows by the end of the session. it was down 185, 190 earlier. let's see how europe is handling this sell off over in asia. that's interesting, isn't it? that's piggy backing off our recovery yesterday. but everything looks good there. i don't know what happened in greece. i don't know what happens by sunday. did you see them going back to 1950 to say that i think he's looking post world war to germany and reconstruction and not repaying some of its debt so he's not very happy with the germans. >> he's saying the germans don't repay. can you go back to a post world war ii era? >> as far as you have to. >> it's just weird. >> he's not the only one. they're all coming out. antiausterity and pro no greek

referendum vote. he says someone has to pick up the check. >> what a concept. anyway let's -- i mean the whole -- i look at that and it's -- did you see the guy, larry o'donnell on our sister channel that says we're all socialists now. it's like speak for yourself. i'm not a socialist. bernie sanders just because he's getting 10,000 people to rally doesn't mean all of a sudden -- i think this is the beginning of the swing. we have gone so far over. even for an indiandiot to say that -- are you a socialist? >> no. >> in anyway shape, or form do you have a hair on your head that's socialist? >> no. >> thank you. >> let's head to china for more on the sell off there. eunice joins us live from beijing. even you're not a socialist. >> no. but there are a lot of socialists here but you wouldn't really know it by the amount of

people jumping into the stock market but in terms of what you're talking about a lot of developments. the china regulator warned about panic sentiment and irrational selling today and we saw plenty of both. the mood was fearful and very, very dark. people were very concerned. emotions were running high and a lot of the focus was on the mass trading halt you're talking about. with with what the chinese media here described as the biggest in china's stock market history. more than 50% of all the listed company here now have had their shares suspended and aus austensivley it's having the opposite effect. very negative. a lot of investor versus been selling whatever they can. the anger at the brokerage was directed mainly at the

government. we had one investor who was complaining that the government was the one that got them into this whole mess. he said that they were encouraging this buying and now they're saying that you know we don't really -- what we have done is fall into this abyss. that gets to the heart of one of the points brought up earlier and that's that the government is really worried that the stock market issue will be a social stability problem and it really explains the behavior and why they're throwing everything including the kitchen sink at this problem. >> all right, eunice thank you. we need you. stay with us. because suddenly we're all, you know, focused on greece and i called it whack-a-mole but scott made a point maybe greece is helping a little because if it wasn't greece, if we didn't have

that to share the fear, we would be hyping this china thing like it would be going to end of the world. maybe it's helping a little. we'll be back to you. >> doesn't need a whole lot of hyping. >> not with numbers like that. anyway, thank you. >> all right. with that we do move to greece because there is news the can that keeps getting kicked down the road. now sunday is said to be the final deadline. jeff is monitoring the negotiations out of brussels and michelle in athens. jeff, let's begin with you as we look ahead toward sunday. >> the good news is that the ecb said it will continue to maintain liquidity for the greek banking system until we get to that summit on sunday and it does seem to be a conversation taking place between the greeks

and euro zone leaders but that's where the good news stops and i would say that it's still very very early to try to call the outcome of this sunday meeting and the sucker punch, alexis tsipras standing up in the european parliament this morning and criticizing the previous bailout programs and effectively saying the whole policy of fiscal austerity has failed in europe. let's just listen in to what he said. >> the bailout program have not made things better. on the contrary they have made things worse. they were supposed to bring about reforms but those reforms have not improved the tax collecting mechanisms which collapsed under the excessive zeal of enlightened and, indeed terrified national officials. >> well does that sound like a

man who wants compromise? does that sound like a man who is putting forward fresh proposals here which the euro zone leadership can work with. not particularly it seems to me and angela merkel coming out of that leaders meeting yesterday said she felt there were no fresh greek proposals on the table so far and also made the point that they need to go further with the structural reform. ie the fiscal austerity if they're good-byes to get a new program. now we understand that the greeks have applied for emergency funding support through the mechanism known as the esm. sits european stability mechanism. this might help give them a short-term loan which might help them pay their ecb debt due on the 20th of july. that will be under consideration now by euro zone finance

ministers. let me move the story on and take you to athens and michelle. >> thank you jeff. i know there's a lot of skepticism about sunday being the final deal but that's certainly how the greeks feel. let me show you the headline which is is euro on drachma on sunday. when you talk to individuals i would say it's near panic. this is the beginning of the end. the toalty on radio and television as well and they are broadcasting the european parliament across the country right now. the thing that jeff ruz referring to. the thing going on at the moment. listening to what's going on that's not being translated into greek and all greexks woke up to this morning was the following sound bites from the meeting which sounded incredibly harsh. >> i'm strongly rejecting all of

these accusations which were thoen to the -- thrown to the public. that we don't respect the greek people and that we're terrorists. who are they and who do they think i am? >> until now i have avoided talking about deadlines but have to say it that the final deadline ends this week. >> when you look at the video warmly embraced by all the leftist in the crowd and also being lectured by a representative that says let me make this clear to you. you're asking a nurse to fit the bill for the greeks. the skeptics and parliament standing up and saying we think the referendum was a great idea. now that you have your answer

and a very tough situation. a lot of people believe that finally sunday it's the day where the ecb just might cut them off. >> yeah you know people vote with their feet sometimes. >> goes in there and everybody is waiting and they're all waiting and they say what do you have? today it's hike a guy that didn't do his homework. he showed up in class after this was 90% of your grade is going to be the homework you did and had nothing to show as the new guy and i read one guy said there's 18 of us here that seem to understand the seriousness of the situation and there's one that's in lala land. so understand why the euro -- why the eu should take anything

seriously at this point. >> i think this is part of the strategy to drag this out to the bitter end so that way the europeans will blink and come up with short-term money like jeff was talking about. maybe from the european investment bank. but everybody winks and nods and shoves a little money greece's way. that way they can pay in july and august and get back to this in september but germany is standing very very tough against any kind of short-term deal which was being pushed by france. remember france right now run by socialists as well. >> do you think they're now working on something? i mean i miss -- at least something that has a plan even if it's a bad plan.

it's better than clueless isn't it? >> they are working on another letter. they have received a new letter. every single time they have submitted something new it has fallen short of anything that anyone on the other side of the table was expecting. >> michelle thanks. we'll go to the other. chinese markets falling sharply. our next guest calls the shanghai composite one of the least correlated industries in the world and that investors as a result shouldn't attach too much weight to it. we agree with that and i guess 180 points versus 8%. but any stock market in the world that goes down a lot, remember, he worried about cyprus and iceland. it just sort of breeds

uncertainty in an unsettled feel feeling. >> up until last night we saw some spreading into the hang seng last night which is heavily financial waited. that's part of the explanation for that button way up china had no correlation to the chinese economy or the rest of the world. on the way down it's hard to say this is going to have a negative impact on the u.s. market. the u.s. economy is tied to the chinese economy but if you're outside of china you can't have exposure to that market. it's a suspended reality. >> is there a gambling component to this market? ? the chinese market? is this investing happening in china or an element of let's roll the dice this thing is up so much a lot of people got in as it was moving higher.

>> it's a casino mentality. >> what is that. >> last month eunice did a great story on the chinese market and how you see rural farmers investing into the chinese stock market and turning $30 into $30,000. that scenario doesn't last. we saw that in 2000. >> there's no impact whatsoever to the market crash and the economy in china? and the ripple effects globally as a result of that. >> think about it on the way up. was the chinese economy booming when the hang shy composite was doubling last year? it's hard to say. will there be knock on effects? there may be some knock on effects but the chinese stock market wasn't reflective on the economy at all in the last two years so right now i don't think the decline in the shanghai is

saying something is collapsing. >> what about earnings? we're going into earnings after the bell. that was the worry with your office that u.s. companies have exposure to the weakness. so yeah u.s. companies and multdy and multinationals have advice going into the china. so much going on outside of the united states, no one knows what's going to happen in greece. if they try to tell you, ignore them. the fact is the u.s. economy is plotting along here. we've seen slow growth but at least we're seeing growth and the housing and employment have been very strong or relatively speaking in the u.s. and 17 straight weeks below 300,000 in claims and we think investors if we stick to the u.s. especially coming into the earnings season stocks with the u.s. exposure you'll see out performance.

stocks with u.s. exposure and the s&p 500 are out performing. half revenues outside of the u.s. by 250 basis points in the last two weeks alone. >> you don't believe these guys? this is much worse than greece? >> the chinese economy is one thing. the stock market though. >> so the stock market chinese stock market is not correlated to other world markets and it's not correlated to the chinese economy? >> it's a low correlation. >> what about the underlying chinese economy? >> again as i was saying earlier it was not on the fire in the last year in the shanghai composite. >> the debt situation is a much bigger market. if that starts getting really shaky that would be something to be concerned about. >> that would be something to be concerned about and in europe we're looking at greece. greece has little connection to the u.s. look at potential contagion effects, right now we have seen

spreads widen a bit but the market doesn't seem to be anticipating a major escalation or deterioration in the financial markets of europe. that's what the market obstetricalingis telling us right now. >> it's hard to imagine that wiping it out in the matter of weeks as this points out. >> that 3 trillion came this year. >> but ten times the trading volume over there. >> move them over. >> thank you. >> coming up volatility. the word of the week in the oil market, one trader's take still ahead. but first as we head to break, here's a look back at this date in history.

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>> i'm here. >> thank you. what is the biggest issue effecting oil? it's down 10% in the last couple of days? >> there's a lot of elements lining up here over the past several weeks if you will. we were trapped between 58 and 62. finally tipped over for me last month when you saw iraq's output surge over 4 million barrels a day and from there it's been downhill because of the things that you mentioned and the chinese situation is particularly concerning for the oil market because if the ripple effects are for their company is to slow down they are a swing demand center of the market. they're the demand story. if they take any kind of hit. >> i thought they were the swing producer now. >> arguably but i put my money

on saudi arabia. they're producing over 10 million barrels a day. they could support this market. >> we just had a guest in that chair say there's zero correlation between the stock market in china and the economy in china. is the oil market overdoing it thinking there's going to be a ripple effect? >> they need the economy to be hit on all cylinders. their gdp growth is coming down coming down. i don't know. i hope paul is right but this has to look from a casual reserver as a replay of our 1929 observation because so many folks are here to mention the story about how rural population of folks got cut heavy in that market. there's talks about potential civil unrest if they lose all of

their money. you'll see another migration of rural to urban that the system can't handle. so that would be bad for the economy. >> those that thought that oil was going to go up got to 60 people get a little optimistic wonder wond wondering whether energy equities were going to have a nice little run. everybody had a second and third chance to get back in. >> right. i think they'll have a fourth. we're going to go down again. despite the rig count being slashed in half production isn't going down. as a matter of fact the eia raised the u.s. growth output for this year by about 30,000 barrels to 750 just for this year. so it's still not going down and there's also a new term we'll be hearing about more and more. it's called refracturization where they're able to go back to some of these wells that had deleted or their output had come down and they had come up with new technology again these guys to be able to extract more oil and it's looking like the life

of these that were look to be around 2 to five years could go as long as a decade. >> good to see you. >> same here. >> goldman just put out a bearish note. they just released a commodities note. >> cutting the target. >> they're bearish. >> cutting them off from 300 to 290. >> they're sticking with the $45 call by october. >> they had the super spike was -- 250. >> the different guy now. >> now they're focused on the three ds. >> they're clever. i don't have that. >> getting clever. >> 30 years ago it was dupont dow -- anyway, coming up barclay's axing it's ceo this morning after just three years on the job. the bank says new blood is needed. we'll hear from barclay's chairman up next but first

here's a look at yesterday's s&p 500 winners and losers.

♪ welcome back to squawk box.

the euro in crisis mode. greece on brink of collapse. barclay's is ousting it's ceo. steve is joining us live with a chairman that hasn't been on the job very long steve. >> that's right. chairman has been in three months and he has already wealded the axe with the ceo that came in right at the height of the financial crisis. he came in to make it more boring. well he has been ousted. why? well i asked the executive chairman that question. it appears to be about execution of strategy. listen in. >> the question is execution in that i have been here a couple of months and been on the board for slightly longer. it's been perfectly obvious for me that there's a number of issues here. it's not fast moving. it's not agile. it is with customers but it isn't in terms of execution.

>> so the problem lies in the execution of the strategy. you have to remember the time when antony jenkins comes in they have a near 50% rally under his tenure but the problem is the transformation of the bank to make it more customer focused has been a problem. the big volatility and the boom in equity trading. return is flat and that's not near good enough at a time when people are are hooking at the cost of the investment bank as well. it's around 70% so real concerns that they weren't cutting costs aggressively. we've seen big changes at credit suisse and barclays is the latest to change it's ceo.

you have to remember this is a company that escaped having government support at the height of the crisis unlike royal bank of scottland and the mission was to make it more boring and take it away from the bank under bob dimon all about investment banking and problems at the board level and the shareholders were upset with his performance as well. surprise at the top of barclays. >> you mention this in europe. this is happening a lot lately. who is the new generation of bankers over in europe and what does it say about the direction that these banks are heading in? >> well let me just tell you about what the major problem is they weren't generating the kind of returns. the same at barclays. for instance we look at price to book as well. it's the price to book that was

only about a .5 or.6. to get to the level of goldmans you had to get one or over. so he was basically the insurance man moved from prudential where he was very successful in asia and wealth management to transform it as well. i wonder how the investment bank gets turned around by whoever has been the ceo because they haven't questioned anyone yet. he came in october 2013 from jp morgan. his job would be to boost the return on equity and to get the cost down as well. they're still paying out big bonuses but underperformance at the investment bank as well. up to 13 or 16 times. the kind of transportation we saw at ubs is. >> how much do these guys get paid over there?

look at the treatment. on the list of in europe or the u.k. where it falls, right below child monthless toslestors. they could come after me and i wouldn't even take it. you can just take me off the list. >> well no but look at the thing. it's about return on equity. krour right. bob diamond got bad press but so did a lot of the other ceos. they went after him on wall street as well. there was way too much risk of the entire financial system and now the regulations have come in but made it hard to be an investment banker. maybe we have more volatile markets but it's a very different world and they want a different generation of people. >> he gets 1.1 million pounds a

year. >> he's laughing at that. >> he will get his salary. >> 1.1 -- >> that's basale salary. >> i would crowd fund to keep the elevator. >> in france i think it's capped out -- we were in davos and i asked that question and he got a little bit insulted. >> somebody got insulted at a question from you? >> yes, every question someone should feel insulted. >> what's the point. >> otherwise, what's the point. steve that was a long delay wasn't it? i'd say good-bye steve but it would be 8:00 when he says okay see ya. >> he's very thorough though. >> we're a week away from the fifth annual delivering alpha conference. some of the biggest names will converge here in new york city with their best money making ideas but not every idea has

panned out to be a winner. kate kelly joins us now with the hits and the misses. >> hey, scott. thank you so much. it's been a year of hits and misses for some of the stock pickers last year. we had other ideas in the credit market as well. the swings in price were massive. leon cooperman approved that point. a gifted stock picker with with about $9 million in assets turned out four winners last year and activists part of allergan and citigroup all did well. those were recommendations of his but a lot of others were disasterous. john paulson had similar problems. he had huge losers in oasis petroleum. energy was a tough call all

around. none of the names highlighted gained ground and health care thanks partly to the merger mania provided great investment opportunities on the flip side but it will be good to hear more at next week's events where we'll have it in energy specifically. it starts off with a discussion with bill ackman and nelson pelt. ackman was the driver behind many peoples investments in allergan and valiant who would have been an acquisition by valiant. it didn't workout that way but both stocks had massive upside at a benefitted him and others and every stock he discussed gains ground showing his skill at picking names. he was totally in the green. >> it will be good. looking forward to it. >> i think it will. hopefully talking about new

ideas. should be good and we have a really full day as well. >> you have some good conversations. >> that should be a real clash because they have very different perspectives on how activism should go. >> thank you. >> thank you. >> coming up a call on currencies. the euro trading higher despite the greek crisis hitting a pitch. ♪

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my favorite topic. the euro is actually bouncing back after falling to a five week low yesterday against the dollar despite the fact that greece has until sunday to stay in the euro. joining us head of fx strategy. let's talk about the yen first because that's the biggest mover of the morning. six week high versus the u.s. dollar. stock futures under pressure. there's real fear out there. >> right that's what we should be watching this morning. >> this is more interesting that we've had this greek debate and everybody has been so focused on the headlines, in the end we haven't had that much contagion into italian spanish markets and so forth and now this other risk aversion coming from the asian side and the bottom line is that we're discussing greece day after day after day and getting close to the final deadline but

in the end, we are observing here that a break up of the euro is possible. it's something that people say oh it's impossible. it can never happen. now we're getting very very close and never theless markets are holding together. so everybody that said it's going to be like a domino effect the sky is going to fall. >> you're not seeing that? >> not at all. >> does that mean a grexit is priced in. >> i think it's priced in and one thing we learn this week is that policy makers in germany and holland and so forth they're really embracing it. more and more people are advocating that grexit is the best option. >> don't you think on sunday night if the summit goes bad the euro dollar picture will look much different than it was today. >> >> we've had two weekend rounds of bad news and each time we this the euro dipping and

recovering i think we'll have a dip but i don't think it's going to be a long down trend. we'll have it fully priced in and look ahead. what's the next thing to watch and the most important thick is what are politics going to look like in other countries. are are they going to mirror what's happening in greece but i don't think that's going to be clear cut either. >> is merkel ready to suffer this? i'm already seeing it here. or is she ready to do it because it might be better long-term if you just get greece out of there? >> she really made a marketing mistake. they made this headline saying grexit is the end of the euro which is wrong. we can have the euro without

greece. so i think she made the mistake of putting too much weight on that. that's something that she is going to pay a price for here. >> even in the leftest media. in this country everybody is pointing at her. this is all her fault for being so mean and austere to the greeks. >> well, there's obviously mistakes made on both sees and i want to say it's not only germany. there's a lot in the eastern european countries that are extremely -- >> it goes up eventually because they don't have the week economies down there. that doesn't help germany either. they like the weak jurors owe. >> but people still have confidence in the euro. >> at this level german exports will be very very happy. >> great, thank you. we have to talk currencies. >> coming up the ceo of regional financial powerful bbnt we talk about the markets.

the economy is so much more. that's when squawk box comes right back.

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bbnt is expanding its footprint making deals while others in the industry has stayed away. but will recent developments in the global market change the company's game plan? joining us now is the chairman and ceo.

the media, we eat this stuff up john. does it change anything? any planning or decisions that you've made in the last month? >> not really. we watch what's going on in greece and asia but we're not an international bank at all. to the extent those economies effect, i don't think there's going to be a substantial impact on the u.s. economy notwithstanding the fact it's a lot of discussion about it today. we think the u.s. economy is moving along in a solid 2.5% pace. that will likely continue. so our strategies are long-term in nature and none of this will change it at all. >> we've had guest after guest bring it back to the september meeting, though, that depending on what happens in greece and china, it either allows the fed

to move or in some way effects the timing for the first rate increase. i know that might be a stretch. a quarter point, who cares about a quarter point anyway? but people do. >> you know i think the quarter point is symbolic. the fed has a really hard job right now. they do have to consider all of the factors notwithstanding the fact inflation and employment rate. but i think one of the things they're beginning to realize, joe, is that all of these current events move around a lot in the short-term. but they really have a long-term responsibility. and that is to make sure they can provide the mechanism to support long-term changes. and we still have raced at levels. the big deal is not what happened yesterday to greece or

anywhere else the issue is we need to get rates up in this country off of crisis levels so there will be capabilities when we do have another correction. i'm still in the camp they will raise rates in the fall. not dramatically. >> so you're going to be able to acquire susquehanna. what does this do did for you? >> thanks. we've had 107 over our history. this is a really good one. it's $18.5 billion, 252 branches. gives us a really strong presence in central pennsylvania, southern new jersey. helps us out in west virginia and maryland. it's an outstanding institution. they just in recent weeks j.d. power recognized them at number one in the region. bb & t was one of the large banks in the region. so they're an outstanding company. it gives us presence and

opportunity in that great market. then the other thing in our industry today is you know we've had a lot of increases in costs. and scale matters. and so susquehanna, you know that helps us improve our efficiency. >> as far as the state of the industry, just talk about the advantages of big banks versus small banks because we hear about it every day. we hear complaints about, you know, too much regulation. that big guys like you, you've got so many lawyers and so many accounts that you can deal with it kind of stuff. do small banks really have a problem and you can connect dots right there to fewer loans to emerging businesses because of that. >> yeah. you know the smaller banks have a real challenge today. have a lot of friends that are

ceos. i'm pulling for them because we need large banks and small banks in our country to have a vibrant economy. but they do have a challenge because, you know, while they don't have exactly the same regulatory cost impact that we have, it substantially moves downhill any time you start and they have the same technological needs. it's a real challenge for them that they're going -- in my view they're going to have to band together and find ways to cooperate and form association to create cost advantages as a way of trying to make it in the future. but for the larger banks, you know, we do have scale. in our case i think we need more scale. i'd much rather be sitting in my seat than some small seat. they have a challenge ahead of them. >> all right. when bb & t first came out, what

were the initials? >> the bank started on 143 years ago as branches bank. it started by mr. branch. a lot of people think branch banking was because we have branches. baa it's because of the name of the man who started the bank. >> all right. got it. thank you. 5th and 3rd don't meet. it's the fifth national bank and the third national bank. >> correct. >> you knew that though. coming up this morning's top stories including that new ultimatum for greece. when we come right back on "squawk box."

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emergency measures in china has failed to stop the bleeding and u.s. futures are reacting wildly. we'll get you up to speed straight ahead. plus a new deadline for greece. the prime minister hoping to secure a new deal in time for sunday's eu summit. we'll break down the odds of a grexit coming up. and china and greece aren't the only fear factors. dom chu has a report on the four horsemen of worry. 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 sara eisen and scott wapner. our top story this morning is happening over in asia. stocks in asia getting hammered again overnight. chinese security regulator warning of a surge in irrational

selling. no such warning with the irrational buying that took the composite up to where it was. also shanghai composite plunging after that statement. it's down more than 30% since the middle of june. and the hang seng also affected as well. let me see if we've improved. we've improved. we were down 180 at the dow at 6:00 a.m. now down 111. almost 112. on the s&p down about 13.5. and the nasdaq down 27 after what a lot of people thought was a nice technical move in terms of a key reversal. but all bets were off after what happened in asia. did you think it was a reversal day yesterday? remember yesterday morning we were talking about how maybe

greece, if there's a favorable resolution we go up. and maybe if there's not, it's already in. i thought i was right for awhile. >> i don't know why the market reversed the way it did yesterday. it was pretty stunning. wasn't much optimism about greece because they came out -- >> they're meeting again. >> it was almost like they were in different meetings. >> oil reversed also. >> reversed because of the eia. >> it was the biggest u-turn apparently for stocks since 2011. bottom to top. >> different story in europe. greece has five days to save its place in the eurozone. expected for detailed proposals in the next few days. the euro group received greece's official request for aid earlier this morning. take a look at european equities which earlier had been higher across the board. that's where we stand now. europe for the most part has certainly turned the other way to what's taking place in some

of the asian markets like china. maybe there's optimism a deal by sunday is going to get done. we're going to get live reports from brussels and athens in a few minutes. a shakeup at barclays. ceoantony jenkins will step down this month. the director said quote, new leadership is required to accelerate the pace going forward. john mcfarland will take over on july 17th as a search for successor begins. and in u.s. corporate news microsoft plans to announce a new round of job cuts as early as today. this is in addition to the 18,000 positions microsoft planned to cut a year ago. all right. we're keeping an eye on the market. our guru dom chu is joining us now on the market moves and the four horsemen of worry. not the apocalypse.

>> no. there are so many horsemen out there, it's hard to narrow it down to just four to fit that kind of model, that mold. but we put out a few of them so we can kind of talk about the reasons why markets keep pushing and pulling, having that tug of war play right now. if we start in greece, front and center we heard prime minister tsipras is going to put forward proposals to try to get that deal done. a lot of optimism here. greece to china. what's going to happen with the growth there? when you have half of the stocks publicly traded in china halted by security regulators so there's not so much selling pressure on them, the worry from traders right now is as much selling pressure as we've seen is there more to go behind it? more sales happening on the heels of that? china is a huge concern as well. and that's translating over to what's happening with oil.

the oil trade has been very volatile over the past few days. we saw some huge moves up and down because we just don't know how these factors are going to affect oil. our fourth horseman earnings season kicks off. we've got pepsico and walgreens later on this week. then all the big banks coming out the week after that. with these four guys here, that's the reason there's a huge concern. let's put up what happened yesterday. the biggest reversal on a percentage basis for ae dow since october 2011. down 200-plus points then closing up by about 90. that's going to play out again today as we see this push and pull happen. i'm going to add a fourth horsemen just for fun. fed minutes. we have a huge wild card in this equation as well. all of those factors pushing markets up and down. we'll see if that plays out with

that same volatility. >> along with the stocks thank you very much for now. let's talk about this. let's get more on the markets after yesterday's wild swing and selloff in asia overnight. sharif kumar. and our guest host richard bernstein. another guy -- this guy's company is richard bernstein advisers. both of you, really. >> why struggle through coming up with a name? >> why pay someone for a fancy name. rich is also an adviser and cnbc contributor. you just heard dom. investors are saying hold me i'm scared. are you ready to hold me rich today? >> no. >> no? >> not you, joe. >> last time you were on you were very different. there's a metaphor rich. you're way over there. you couldn't if you wanted to. >> sara and i could leave.

>> but can you make me feel better about you know the prospects for the stock market in this country at least? >> in this country yes. if you think about what's going on around the world, the story we've been telling for three or four years now has been that the united states would feast on the rest of the world's problems. in other words, what you're seeing is lower commodity prices. you're seeing lower interest rates as the turmoil gets revved up and everything else. that's actually beneficial to our economy. the question is does it get so bad? right now people should think the u.s. is going to feast on the world's other problems. >> that's the old expression it's either a crisis or an opportunity. if it doesn't get too bad in other parts of the world, it could actually cause money to even come in here and we have our own fundamentals here that might not be negative. >> even about parts of asia if china gets in more trouble, maybe that benefits korea.

maybe that benefits japan. maybe those companies gain market share from chinese companies if importers in the united states or in europe lose faith in chinese companies, maybe it benefits others as well. >> the nikkei closed down more than 3%. but that's been the whole theme of this entire bull market. over the past few years, climbing the wall of worry. and what is it going to take to actually bring this market down in the u.s. in terms of a correction? >> what's going to cause a correction or bear market is what causes it all the time. combination of tightening monetary policy and poor earnings. you get that combination, you're going to get a bear market or corrections. >> you don't think we're going to see poor earnings? this is what happened last night. >> absolutely. that's the issue right now. why has the u.s. market been squirrely this year? it's the combination of earnings not being strong enough. on a reported basis, this is now negative. combined with the thought that

the fed might tighten monetary policy. that's not a good combination. >> it's incredible. it's incredible. you are holding people. because we're now down less than a hundred. >> i'm glad to hear -- >> you haven't been -- we haven't had the camera on you, so i don't know whether you've been like, rolling your eyes or nodding or doing some kind of hand signal. were you listening to rich? does he make any sense at all? >> yeah. i've been listening to the entire conversation, joe, and i have a very different take on the whole situation. >> so you were rolling your eyes and doing the hand signal. i thought so. >> what greece is going through, joe, is dead on lehman moment. you know that in 2008 there was a small inconsequential bank called lehman brothers. you could let it go and nothing would happen systemic as a

result of that. and we saw on september 16th the day after the bankruptcy how wrong we were in terms of what happened. >> by sri, you're not seeing that in the market in any way, this idea of a lehman moment and the fact is the greek exposure -- greek debt is very limited in terms of the private sector. so why are you still saying that? >> good question sara. the problem is the following. unlike the latin debt restructuring to the end of the 1980s when the debt was held primarily by large commercial banks, we have a situation where the debt is held only by governments and official institutions. and they are simply unwilling to take a hair cut with the current situation. i was in greece in may and with extensive discussions on both the private sector and senior government officials came away and said on your channel soon after that greece was headed toward a default.

the issue now, sara is that even though the debt is small, it is the concept, it is the precedent of a member of the eurozone being forced out. if they do that and yesterday's negotiation suggests that the euro group is not willing to concede anything to grease anymore, the prime minister comes in with a very strengthened hand to in his discussions because of the referendum on sunday when you put it all together if there were a grexit people start to say if the europeans can push greece out, what does it take to push out portugal or spain or italy. you have seen those bond yields rise. and that is why you see both president obama and treasury secretary jacob lew be so -- u.s. markets should be concerned about what is going on. there is no easy way out of it. >> are we too complacent as sri

suggests? >> i don't think so given it's all over the newspaper and everybody's talking about it. >> but people keep blowing it off. [ overlapping speakers ] >> nobody really thought that that firm would go under. i don't think anybody on wall street thought that was the case. i think when you're talking about greece or china or any of these issues right now, i think people are very focused on them. i don't think this -- >> it's a base case -- >> i think the difference is -- >> sri wants to counter. go ahead. >> the difference is that in september 2008 the government the treasury secretary, the fed at that time thought they had it all under control and they had a scenario. and when juncker made a statement yesterday that they have a clean scenario for grexit, i thought to myself, right. exactly like they had a great scenario for lehman in 2008. you just do not have a scenario

for exit because you don't know where the things are going to fall once things simply fall apart. come sunday there still may not be an agreement. they have a talent to kick the can down the road. but the deadline in my opinion is july 20th when greece has to make a 3.5 billion euro payment to the european central bank. from my discussions in athens i can tell you that cash just does not exist. and the greeks are not going to tighten their belts again in order to pay. what we learned in past debt crisis joe and sara is the fact that if you say to the people in the country, would you tighten your belt further so that the banker sitting in london or new york can increase his or her bonus, it's not going to get a sympathetic response from the citizens. and that's the problem we are in right now. >> okay, sri. that's a compelling case for the

other side which we haven't heard a lot of that recently. so sunday and then the 20th. sri, thank you. >> thank you, joe. >> i want you to think about what i asked you. you're going to be here for the rest of the hour. because he made me very, very scared. >> you want me to coddle everybody. >> no. you're a cnbc contributor, right? >> i am. >> you read the fine print on what some of your duties are at cnbc if i were to ask for something? you haven't raerd the fine print, have you? >> i didn't see anything about that. >> i don't think you read it. if i need a hug, i'm coming over there. >> i hope that's not in my contract. >> no you're a full employee. we don't pay him much. that's the bonus they get. when we come back greece has submitted a new request to the euro group. we'll get the latest on the negotiations straight from brussels and a live report for you from athens next. then the driving forces behind the drop in crude oil prices.

dan jergen he talks about the supply concerns in the energy market. we'll also talk about media stocks on the move because julia boorstin has an interview with ron meyers. stick around for that. ♪ 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. ♪

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welcome back to "squawk box" this morning. let's take a look at u.s. equity futures, see how we're set up. lower open but off the lows of the session, dow looks set to open now up still triple digits. down 112. what were we? 180, joe? >> we headed to 190. and then sri came on now we're back -- >> thank goodness rich is on for the hour. >> s&p futures down 11.5. and the nasdaq down 23. we're watching greece which can secure its place in the eurozone. michelle caruso-cabrera standing by in athens. geoff, let's start with you on this count down to sunday. >> e yayeah. the greeks have put forward an emergency request for monday.

they're offering up some concessions on the tax front to get that. so that will now be considered by eurozone. alexis tsipras has been the subject of a number of verbal attacks not the former prime minister and leader of the liberal block. let's hear what he said. >> you are talking about reforms but we never see proposals of reforms. and i'm angry why? i'm angry because we are sleepwalking towards a grexit. already five years we are sleepwalking with the support -- you hear them -- of the people of the extreme right. not only we are sleepwalking.

the last months we are running towards the impression. but it is not you and it is not we who shall pay the bill. it's going to be the ordinary greek citizens paying the bill of a grexit of 30%, 40%. >> maybe some comfort there for joe. that's some views are being expressed here. with the greek approach to so we have negotiations that will take place over that it's not an easy process though. it has to go through a number of member states parliaments before the money can be freed up. that could take some days. unlikely to be approved before we get to the sunday meeting. so fascinating still to see what the greeks will put on the table in terms of a more formal

proposal with swinging reforms of their economy to try and get a deal signed on sunday. let me pass it over now to michelle and see what the reaction is there in athens to latest developments here in brussels. >> there's so much concern here geoff. let's bring everybody up to speed. everybody's waiting to see whether or not that new proposal that was just submitted in the last hour and probably only a letter, not a full proposal but is that good enough to get some kind of further consideration from the other finance ministers of europe that they don't throw up their hands in disgust like they have nearly every single time they met with the greek representatives. it's going to be crucial because once again we expect that the ecb is going to discuss whether or not to extend more ela, emergency liquidity stance to the banks. it's suspected that they won't. or just do something again with the hair cut which requires an increase in the amount of

collateral. that would be a signal of more pressure. the business community here feels hopeless. it's always darkest before the dawn. it is dark here right now. very, very dark. people that i talk to are asking -- or telling me i don't think this guy ever wanted a deal. i think maybe he always wanted to leave the euro. we are starting to plan for the fact that maybe we're not going to be a maeb of the eurozone. maybe we're not going to be a member of the european union. that's the kind of panic level that has set in within the business community here. it's not apparent on the street. we see people still at lines every day for the atms. suggesting there's still money in the atms. but once again, it's getting very dark here and people do believe that sunday could be the deadline at this point. back to you. >> michelle so do they regret voting no in the referendum? do they feel like they were duped into that vote no? to vote against europe and the

euro? >> oh the business leaders i speak with, business members of the community not one of them voted no. they voted yes. some told me we voted yes to raise taxes on ourselves because we are the one who is are going to bear the burden et cetera and the people they don't think will bear the burden much of staying in the euro because they don't pay much in tax et cetera are the people who voted no. some people who voted no have expressed surprise at the possibility of when we ask are you worried about leaving the euro on sunday. what are you talking about? some people still don't believe it's a possibility at this point. >> you didn't unpack your bags did you? how far is beijing from where you are? >> i'm out of clean clothes, joe. >> that's never stopped you before. >> all right. thank you, michelle. we'll check back with you later. michelle caruso-cabrera in

athens and geoff cutmore in brussels. coming up feeling more optimistic. new data from our survey. steve leisman has more next. ah! aflac? aflac! i thought you said this guy was the best? oh, he's a horrible stylist. gah? but he's the best at paying claims fast! really... mmhmm. paid mine in just one day. one day? yea. aaaflaaaac! in just one day, we approve and pay. one day pay, only from aflac.

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wealthy americans are feeling more optimistic. that's according to the all america economic survey of cnbc. steve leisman joins us with more. >> good morning. what we find in this survey 800 americans across the country, is that optimism overall ticked down a little bit. we ticked up to a decent level kind of going sideways here down a little bit. when we looked at the results compared to last quarter, we saw a church in the financially elite. take a look here. on the issue of the current state of the economy, the

financial elite up big. will the economy improve the outlook for the future? up for the financially elite, down big for those earning less than $30,000. on to the next screen. what you see here other metrics. will your wages go up? financial elite very optimistic. not too bad for those earning less than $30,000. and a good time to invest in the stock market? they're optimistic. what's the reason? a big increase in those expecting higher prices. and new metric added to the survey here. is your income higher than it was a year ago? not so much under $30,000. a little bit more $30,000 to $50,000. then you get up over $75,000 kwb yeah. they say they are making more. you can read full results on cnbc.com. this goes along with a theme we talk a lot about on the show being shown in the data. >> all right, steve. thank you so much. more exclusive survey results

throughout the day from steve. sara? >> we want to talk about asia now. of course that drop in chinese stocks, the top story of the morning. the plummeting markets in asia. >> from the china selloff spreading this wednesday. hong kong from the mainland market volatility but hit hard today. the hang seng suffering its worst lost ever. now, there are trading limits in mainland china now. investors and brokers liquidating their positions in hong kong to meet margin calls. the hong kong list of brokerage is bearing the brunt today. bank of america lynch put it effectively. they are doing national service. they've been mandated by beijing to pledge 120 billion yuans. that will take a toll on earnings and their balance

sheets. that's why the brokerage has got dumps today. the nikkei not spared either. seven-week low. and the yen drawing a safety bid. the china meltdown could very well be on the agenda at next week's bank of japan meeting. that's the damage report from here in asia. back to you now. >> thank you so much. coming up the slide in oil prices. dan yergin putting pressure on oil. and as we head to break, take a look at the energy board. well, there's asian markets for you. that's been a huge story, of course. and there is the energy play. crude bouncing back a little bit. 52 bucks.

oil prices stabilizing after a selloff over excess inventory concerns and market turmoil in china. let's get a check on crude, see what it's doing right now. wti a bouncing back a bit. joining us now with more is dan yergin. ihs vice chairman. nice to see you on "squawk" this morning. >> thank you. >> what do you make of the

recent activity? >> i think the oil price right now is being stopped by two factors. fear and fundamentals. and obviously there's been a little bit of an improvement this morning that the basic factors are there if you look between 2003 and 2013 take that period half of the growth and all the growth in world oil demand was in china. so that's there. and of course you have iran with these super skilled negotiators and greece with unskilled negotiators adding to the drama. >> i'm wondering, though and we've heard from guests this morning who say -- at least some say -- don't worry so much about china rolling over into the chinese economy. so is the oil market overdoing it to the downside? overly fearful of something that's not going to happen? >> we are seeing a panic in china. up until now and it goes back to

2008 where it seems the chinese were really in control of their economy. they were the first ones out there with a stimulus. and now it's looking like they don't know what to do. and i think that is leading to the wider concerns. and the chinese economy has already been slowing from the growth that it had been before. prime minister says it's no longer a high growth. it's medium to high growth. and if it's low to medium growth, that's a big hit for the oil market. >> i've got rich bernstein next to me he's got a question for you. >> dan good morning. is it fair to say the energy sector in the united states was in a bubble? i know people have looked for bubbles everywhere, but it seems like the energy sector in the united states shows all the characteristics where it was the gold rush. we've been left with what should happen. we've got lots of debt and over-capacity. is it fair to think everybody in the energy sector thinks it's going to turn down.

do we need exportation. that doesn't b make any sense. >> well it does. >> do they know there's a problem here? >> i think it depends. you're talking about several different things. clearly there was a land rush a people rush. north dakota had no unemployment. they couldn't find people. but what's been really striking is even with the declining price, u.s. oil production has gone up. we're at 9.7 million barrels a day. just within a whisker of skrabaudi arabia and russia. there was clearly a lot of money. but now there's a lot of money waiting on the sidelines to come back into the u.s. >> do i like that or should i -- i mean how do you rationalize all the capacity and get rid of the deadwood in the sector? >> one of the things that's happening, this is new thing. the shale oil. it's short cycle oil.

instead of making a billion-dollar decision about a well you make a $10 million decision. and now we're seeing much greater efficient city. at ihs we think by the end of the year every dollar spent in the u.s. in shale oil will be 65% more efficient than it was in 2014. so you see a very adaptable industry. and i think it's been a big surprise to see that u.s. supply has gone up. in fact, we think this year will be up about 900,000 barrels a day on average. so a lot of resiliency here. take that and then take this negotiation as to whether there is or isn't a deal with iran and i tend to think there will be because vested interests in getting to a deal are so strong. then more iranian oil into the market at the same time. >> so you paint a perfect storm sort of picture. fundamentals meeting. does it blow over?

does it abate? and if so, when? >> i think it's now. think about the oil prices. but it's affected by these macro forces and what happens to the greek economy, the chinese economy. but i think that this year we're thinking that oil prices will be around the average for the year will be around $60 next year. somewhat higher than that. but, you know so much depends upon truly actually what does happen to chinese economy and the question that you posed earlier does this -- what's happening in terms of the chinese financial sector stock markets really spill over into a slowing of the overall chinese economy. >> dan, great to talk you as always. thanks so much. dan yergin. >> you're kidding me. you're leaving? >> hey. i think i was a substitute today? they called me last night. >> no no. don't say that. >> we're all substitutes.

>> that's true. >> nothing's permanent in life. you know that. we want to thank richard effin bernstein for sitting in. give me that middle name back if you don't want it. >> i'll take it. >> you admit it's a cool name. >> it's a cool name. >> we think you need too give joe a hug on your way out. >> yes. huh? come on. come on. >> all right. thanks, rich. we'll see you soon. up next we'll talk media stocks as top ceos in the sector are gathering right now in sun valley. julia boorstin joining us with a live report and an exclusive interview with nbc universal chairman ron meyer. that's coming up on "squawk box" right after this break. push your enterprise and you can move the world. but to get from the old way to the new you'll need the right it infrastructure.

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♪ with universal pictures on track for a record year studio

chief and nbc universal chairman ron meyer is in sun valley. nbc universal the parent company of cnbc. he sat down with our julia boorstin for an exclusive interview. she joins us now from sun valley. >> good morning. i talked to meyer about the record year and what has been driving the success. universal pictures is responsible for about a quarter of the u.s. box office this year far outpacing its rivals. and "jurassic world" has been the number one opening movie of all time. meyer says it's been a combination of timing marketing, and great leadership at the studio. he says he's working to keep up that run by building on the franchises that universal has developed. and also focusing on international markets. >> that we don't believe can do a business abroad.

there was a time years ago the split was 75% u.s. and 25% international. in many cases it's 65% international. as the theaters get better and the audiences are more in tune to going, i think it's just a growing business. china has been an extraordinary market place for us. so we haven't felt it. i mean obviously "jurassic" is sensational in china. we've had great, great results. >> meyer also overseas universal parks which he says are doing great this summer. he called the harry potter attraction in orlando a game changer. and he said the success of the hit movies feeds the success of the parks. >> you have to always promote your product and never take it for granted. but certainly we have a new fast and furious attraction in hollywood. it's a sensational ride.

and the success of the movie certainly helps the success of the attraction. >> now, meyer says he's not concerned about cord cutting or people spend more time on netflix not watching television or going to the movies. so i asked him what it is that does keep him up at night. >> piracy is always a major issue. and one we always have to be concerned about. but, you know, you have to be in a business that you make hits. whether it's in television or whether it's in movies or whether it's your theme parks. you've got to have hits. you've got to have people wanting to come and see and experience what you're selling. >> sara spacex and tesla ceo elon musk is here for the first time. we talked to him yesterday. we'll bring that interview to you in the next hour of "squawk box." >> all right. thanks very much. that was a great interview. and another one coming our way.

julia boorstin. we're going to talk more about so-called old media continuing to be a hot space for investors, deal makers despite aaway of cord cutting. companies outperforming the s&p 500 is far this year. craig moffett is senior analyst at moffett mason. where is the next deal going to come out of? >> i think what we're going to see is i think a shift from the distributors who have really been ground zero for all of the deal making over the last year to the deal making is going to shift now i think to the content side. and that's in some ways a fore gone conclusion if only the distribution side is pretty much done now. there's not a lot of deals left to be done because there's just not that much left that's independent. >> is it going to be distribution plus content? >> i doubt it. i think, look, the jury is still

out. comcast is doing incredibly well with nbc, but the jury is still out about whether there are dramatic synergies to the strategy or whether they're just two businesses that happen to be doing well at the same time. you've really seen the world move in the other direction mostly where whether it was time warner or others that devested their content or distribution of them. i wouldn't expect to see a big wave of integration. >> what about the mobile operators? we'll see the at&t/directv deal close, right? >> could be any day now. possibly this week. if not this week probably next week. there's not a lot left to do -- >> what about dish/t-mobile? >> i think it's unlikely. that's about spectrum and not about the kind of business synergy between two businesses.

and in a funny way although it was touted as dish buying t-mobile, it would really be t-mobile buying dish's spectrum through a complicated transaction. i suspect that probably won't happen and that t-mobile will stay on the sidelines if only because i think there is at least some chance that they'll be trying a sprint deal down the road. probably after a new administration in 2016. so in 2017 you could see them try a sprint deal again. last time it was regulatorily unthinkable. this time i think it's got a shot. >> you mentioned the regulator. are they going to allow these kind of deals to get done? >> who knows, right? in the comcast deal the decision was made primarily by the department of justice as we understand it. that comcast by consolidating

that much of the broad band market would have had both the incentive because it's in the video business and the capability to foreclose on competition from over the top video. we never heard from the department of justice as to what that threshold is for the capability to foreclose. so we don't know how they're going to look at other deals like charter time warner cable. i suspect that deal will be approved. it's a harder one to get over whether or not sprint and t-mobile would ever be approved. a year or so ago it was as i said unthinkable. if sprint really is in severe financial distress as we think they will be within a relatively short period of time then it's possible that the government would look at that deal differently. but no guarantees. >> we mentioned some of the stocks that have been rising this year out performing i guess as the multiples get higher the price tags of these deals potentially do as well. at what point does that become an obstacle. >> so does the currency though.

to the extent their stock deals, it's less of a challenge. but i think you're right. the -- certainly you've squeezed certain buyers out of the market. a couple of years ago on the distribution side of the business, a lot of the deals were being driven by private equity. it's much harder seeing them pay these kinds of prices and think they could earn a sufficient return. and you're also getting a need now for strategic scale. and so the private equity buyers are being squeezed out because you don't have that kind of negotiating leverage you need to make the numbers work. >> joe's giving free hugs out today. you want to grab one before you go or you good? >> if you promise to tweet it out. >> i'm not giving him a hug. you haven't seen any synergy between comcast and nbc universal? you think they're simultaneously

doing better? >> give him something else. >> yeah. i'll give you something else. it's not a hug. >> they've done a great job promoting this show. >> we don't call it -- we call it sim fonny. because it's not, you know -- >> it's not jazz. it's symphony. >> we're going to break. >> i wish andrew was here to yell at me and tell me all the things i say are wrong. >> you're taking andrew's place for me a little bit today. coming up your list of stocks to watch is next. then later ll cool j is here. he's an investor in a new way to follow all your celebrities at once on social media, consolidate -- that'd be easy for me. all i have is twitter. anyway, we'll be back. 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.

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i'm going to cabo! [ music plays ] don't settle for u-verse. xfinity is perfect for people who want more entertainment for their money. let's take a look at stocks to watch this morning. tez la downgraded again here. the sector down to weight. considered disruptive but the valuation is getting full at this point. we will hear from elon musk in the next half hour. harley davidson was downgraded at rvc. the analyst citing flat demand. symantec in talks to sell veritas. the software security company

has been shopping veritas for several months. because of a tax burden associated with splitting that company. and mr. burns is back. this is the big news of the day for me. harry shearer who said in may he wouldn't return for the next season has now resigned on to springfield. can you imagine the simpson without ned flanders? principal skinner? a host of other characters. but montgomery burns, classic. >> that had a lot of people buzzing yesterday. i saw tweets all across the spectrum when that announcement came out. >> it makes me very happy. 27 seasons. but without -- i guess you might be able to get someone that does an imitation of mr. burns. remember the aflac duck. they got somebody else. but it's tough to do all those. he did other people too.

i think he did -- i don't know. i can't remember. the doctor. i think he did the doctor. i think he did -- i mean did at least 10 12 characters. montgomery burns was obviously one of the best. all right. coming up ken rogoff will be our guest host for the next hour. we'll get his reaction to the selloff in asia. and an interview with elon musk. verizon say neversettle. t-mobile agrees. never settle for verizon's overpriced gimmicks. try the un-carrier risk-free for 14 days

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china seeing red. markets sliding as beijing scrambles to stop a major three-week selloff. we'll talk global economic stability and the lack thereafter and market jitters with harvard professor ken rogoff. spotlight on sun valley. media and tech titans gathering for the conference. elon musk speaking to cnbc in his first interview with the spacex explosion. straight ahead. and ll cool j's new app rap. the entertainer teaming up with routh social to help you keep track of all your social apps in one place. plus his thoughts on taylor swift's win against apple. as the final hour of "squawk box" begins right now. ♪

live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" here on cnbc first in business worldwide. starting the show with a little grateful dead. was that the dead they played there? >> that was not the grateful dead, joe. >> that was ll cool j. >> who will be on. i'm joe kernen along with sara eisen and scott wapner. becky and andrew are off today. check out these futures. this is rare you'll see this. we'll start with the dow which is keen off what's happening in asia. down 126 points after a big reversal day yesterday. one of the biggest we've seen. 300 point reversal. some people thought technically that was a good sign. look at europe though. this is deep. because europe normally you will

see europe key off of what's happening in asia. and the news coming out of greece doesn't seem that positive today although who knows what's going on behind the scenes. there's a lot of wrangling. we played some tape earlier. one of the european ministers just yelling at tsipras saying talk about reform. actually -- he was saying it in french which i thought -- not in french. but with a french accent. sort of a conservative gentleman talking about how you need to you know mind your p's and q's in terms of business. >> the irony. >> it was weird hearding it with a french accent. >> and you were cheering. >> i was. brought a tear to my eye. then look at how badly asia got hit. really strange cross currents depending on what part of the world you're in. and i wish we could key off europe not asia. but we're not. >> we've got duelling crises. we're on market alert as joe

mentioned as we head into the open on wall street. let's look at other markets of note. oil which had been moving sharply lower in the last few sessions is rebounding but just a tiny bit. wti $52.40 losing some steam into the u.s. session. brent higher as well. the international benchmark treasuries in demand and yields lower. teeing off of the selloff in asia. the note yield 223. the note goes back above 3%. it's been back and forth around the 3% level. then this is interesting. the euro's actually stronger over in european stocks. the japanese yen is the real standout performer overnight. that is a sign of buying fear buying that safe haven japanese yen after those steep declines in asian stocks. check out on the volatilitity index which is now up more than 5% in a month. first gold which some see as a barometer for safety as well. it's up today on the back of the weaker dollar.

and there is the volatility. down right now but has been rising over the past few weeks. >> let's get to athens now. michelle caruso-cabrera standing by. michelle, we're looking at the reaction in the european markets which are green across the board. wondering what the news is there that doesn't feel all that great, but seems to be lifting the markets at least. >> it could be this letter we've gotten a copy of. this is the letter the greeks submitted an hour and a half ago. it's very short. it's only one page. what is significant about it it appears to be that they have softened their tone around the concept of debt restructuring. in the past they have demanded a debt restructuring, haircut on the official sector debt. now they say they welcome an opportunity to explore potential measures to be taken so that their official sector debt can be viable over the long-term.

that would be a softening of a position. they say and they promise that by tomorrow they will put forth a list of prior actions. which is european speak for the list of things we promise we're going to do in order to get the money. so this would be a good first step. the tonality is appropriate. the next step will be what's on that list tomorrow. because every list of prior actions thus far has not been good enough for the european finance ministers. and has actually left them you know, quite upset. in the meantime the business community here is quite dark about the prospects and very concerned about a return to the drachma. listen to a banking analyst over at a local brokerage firm here in athens. >> initially i think what we're going to see a iou's, but before that we're going to see

emergency measures. it's going to transform itself. and the government is going to need to supply you know some kind of basic services. so way before we get to the currency, we're going to have to have some kind of an emergency state for the country. >> so there's all kinds -- we have people asking us how do iou's work what does that mean print them where? that's what people are thinking about at this point here in greece. back to you. >> great, michelle. thank you. stay there for awhile. don't leave quite yet. we don't know which crisis to focus on here. it's an embarrassment of riches. leaders of nations have given greece to the end of the week to come up with a proposal for economic reforms or face a potential exit from the currency. ken rogoff former chief economist to international

monetary fund and steve leisman joins us as well. ken, nothing surprises me anymore. and when i see stiglitz and picty all just talking about the "a" word the worst word in the world to ever ask anyone to actually make good on a contract or not retire at 50 or pay back anything it almost seems as if they figure that as long as central bankers can print money, that we should never actually ask anyone to do anything. is it to believe we could print them for everyone and satisfy paul krugman? >> probably going to see an op-ed supporting your great idea tomorrow. >> it's a pretty damn good idea. is there anything that should stop us? why not make it a million euros for every man, woman, and child on the planet. >> okay. good idea. you'll get a u.n. award for that.

>> are you surprised that there's actually takers on that side of the argument? >> well i mean you know there's certainly a case for changing the tax system but i think viewing that the last three decades has been bad for global inequalities with what's happened in india and china and distorting the argument. they talk about the 99%. they're really talking about the 15% in the advanced countries that are wealthy and not everybody pels.else. >> but this in context here i understand in our country here they maybe -- they've got opinions on how we should manage it. but they're ready for redistribution everywhere aren't they? anywhere that it happens they're ready for it. they'll take on their shoulders the entire planet in redistribution. >> i mean you know they'd like government spending to go up to i don't know what. >> at least 50% of gdp. >> well, it's almost there.

remember the united states is low. they would like it to be higher. they'd like more redistribution. >> what about the fact that germany didn't repay its debts after world war ii? >> a lot of countries have defaulted on debt. the original situation was not to write debts down across the board and it would have cost a lot less than what happened. >> the 2010 bailout, joe, i think everybody would acknowledge was about making the german and french banks whole. and there's an internal document out there saying if greece went through all the reforms that they'd still not be able to pay the debt. >> but the money was because of the way the economy was set up in the first place. >> i agree. >> steve, here's the thing. once you do a massive writedown for greece they also need to turn to everybody else. they don't want to do that. i mean i think if it were just

greece, it would have happened a long time ago. but then ireland said what about me. and i by the way think that would be fine. but it's not my money. >> so do you think this deal gets done without greece having to restructure its debt? actually taking that debt relief? >> there's no way they're going to pay the debt. and they backed themselves into this corner. where i don't know how they can take anything else for an answer. the only way really to keep greece in the eurozone is to give them a big hair cut and give them banking support. but it's hard to see how to do that when they're not sort of following the rules as other countries are. >> why has -- in this debate over whether austerity works or whether it doesn't work why did it work or appear to work in a place like ireland and it has refused to work in a place like greece? >> well it didn't exactly work in ireland. they had an epic recession. but the word austerity, let's be careful. in the case of greece -- >> i'm talking about where they are now relative to where they

were. greece is now relative to where it was. >> but let's be careful. and i think the words are thrown around lightly. in the case of greece they were spending far above their income. they could have torn up the debt in 2010 and greece would have faced austerity. they were spending the government 10% more than income. and they haven't really been repaying yet. they're complaining about repaying in the future. the germans. >> but they did slash government spending. >> yes. >> and they brought their deficit down the last i checked it was 0.8% of gdp. and they did so in the context of a recession that was almost on par with the great depression here in the united states. so in that respect, there was austerity. >> no, no. there's austerity, but is it because they're making debt? they were cut off from world markets. people found out the greeks had been lying about their finances their debt was much bigger. they were cut off. and they got less austerity because of the money given from

the troika than they would have had otherwise. yes, they should have written down debt. yes, we'd be in a better position today. but greece would have faced a very tough fall. and so would spain and ireland because they had this big credit boom. that would have dried up. and there would have been austerity, but we would have been in a better position today. >> i understand what you're saying. but how do you say all this stuff in context of the real pain that's created by these programs? the unemployment. i've watched for 20 years i was in russia when this happened. you have these smart economic policies, the things they ought to be and they create this out there. economics hasn't figured it out yet. the right policy creates awful politics. >> you're talking about what is purportedly a union in one place. but you're asking the germans to come down. always bring up when becky

talked about she lived within her means during the financial crisis in terms of mortgages. didn't do this didn't do that. so she lived by the rules. did everything she needed to do and deprived herself of all these things. if you forgive everyone else's mortgage debt of all these people that did what they wanted to do. why is that fair to the people -- >> it's a moral hazard. >> but if you put it in a moral context, that doesn't make good economics necessarily. >> in a moral context you should just then put a wealth tax on anyone who has more than $1 million to give it to everyone else. that's what people like you think, steve. >> not like me. >> you're the one that asked me the question. >> i did ask you the question. >> there's something called property rights earned success. there's something distinguishing between -- >> there's also suffering and incredible poverty and unemployment. and how do you do -- i'm asking the question. how do you do the right policy amid the pain that's created by the right policy? >> we do all we can for the third world countries we do and

there's a lot of philanthropic work that's done but you don't see us taking our tax receipts here and we can't solve every problem in the world. germany, i don't know if it's a true union. >> it's not. >> and says we're not going to -- >> when greece voted for less austerity, the question is where does the money come from? because they turned down a deal where they were being given money. more money than they were paying out. 5% of gdp for the rest of the year they would have received. and that was humiliating. >> ken, once again, as i saw in russia when the west came in with its policies the policies that seemed like the right economic policies created very very bad politics. and the communists back in russia in 1994 i guess, were re-elected to office. again, the policies by the ecb created this backlash in greece. >> certainly there's something you're saying. but a country borrowing enough.

they're running big trade deficit. suddenly credit dries up. somebody comes in maybe gives them half of what they were getting before. they say, oh, austerity. i've got to cut government spending and this and that. well the imf would have had to cut it more. >> this is what i think it's like to be inside a euro group meeting. back and forth constantly. but we have to ask you about china. you've been warning this is a bubble that's going to burst for a long time. but we're seeing that and policy makers can't get a handle on it. >> it's hard to know what to make of the chinese stock market. this is not, like you know necessarily like in the united states. it's very limited. but there are a lot of signs the chinese economy has been slowing more than, you know, their numbers suggest. >> the only difference between this and the euro meeting is there's a little sign in front of the person in the euro meeting. it says socialist party. and we really don't have any signs. >> joe, you can make fun of me

all you want. it is what they are. >> they know what they are over there. >> the reality is what it is. and every time we try to do this, there's a political backlash backlash. nobody's compe up with the right policies and if we don't think about that we're going to repeat the past. >> all right. we've got to go. steve, thanks. ken rogoff, always good to have you. coming up much more on the markets markets. up next, gopro jumping in the content wars. details on what it's got planned straight ahead. and here's a look at the european markets as we stand right now. higher across the board. maybe some optimism something will get done. the final chance greece has to stay in the eurozone. stay tuned. "squawk box" will be right back. t would be easy to know everything about that one breed. but in fact, there are over three hundred breeds of dogs.

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welcome back to "squawk box." among the stories trending this morning, slice intelligence says apple watch sales have plunged 90% since the opening week. slice reports apple has been selling fewer than 20,000 watches in the u.s. a day since the initial surge. also two-thirds of the watching sold so far have been the lower profit sports version.

apple isn't breaking out shipments or revenue and has no comment on that report. but it's worth noting there are also plenty of apple bulls including jpmorgan which raised estimates citing improving apple watch momentum. take a look at shares of apple since the watch launch in april. just about flat $125 a share. we're also watching gopro. getting ready to step up its content game. charlotte coe is going to join. she will try to strike partnerships with studios and networks to develop and coproduce new content with the help of gopro's signature small cameras. check out shares of gopro have done lately after the huge skyrocket we saw out of the gate after the ip o rks. they've come off the highs. sort of been trending higher slowly with some of the releases. we got a small camera and we knew they were going to get into this content game. >> stock went down what was it

yesterday? or the day before? the stock went down that day on the release. coming up, elon musk speaking to cnbc in his first tv interview since the spacex explosion. he's in sun valley for the conference. and julia boorstin is there and brings us his comments next. i'm sure we'll get comments on tesla as well. as we head to break, another look at markets in asia. the shanghai composite now down more than 30% since its peak in mid-june. "squawk box" will be right back. ♪ 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

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welcome back. the conference kicking off in sun valley idaho. among the titans there is elon musk. he's attending if they are first time. julia boorstin caught up with him. julia? >> that's right, scott. i talked to musk in his first interview, his first tv interview since that spacex rocket explosion back at the end of june. it was the first time one of their falcon 9 rockets had failed in such a major way. the first out of 19 successful launches. so i asked him what caused this explosion. >> we don't know yet. >> and when do you think you'll be able to launch again? >> well i think we need to understand exactly what went wrong, know what needs to be done to fix it and then be deliberate about it. we want to look at what went

wrong and also take a thorough review of the data and see if there are any near misses. could there have been something else that could have gone wrong and what we need to do to fix that. our goal is to have the most reliable rocket ever. this is going to be launching astronauts in a couple of years. so it needs to be super, super reliable. >> and when do you think you'll be able to compete for the test launch? >> hopefully later this year. >> i also asked musk of the company in which he's ceo, tesla, and what's going to drive its next leg of growth. >> i think it's going to be the model x. the demand for suvs and for sedans is about equal. so that will suggest that if it were well received it would double the volume. >> can you give us any updates on model x? >> i think everything is pretty

much the same as when i gave the tesla shareholder conference. which is we expect the end of summer. the big question we don't know the answer to is how long it will take us to ramp that production. >> musk is here in sun valley to take the stage with one of his old colleagues from paypal. reed hoffman, cofounder and chairman of linkedin. the two of them will be talking about all sorts of interesting things i suspect even artificial intelligence will come up. guys? >> all right, julia. thank you so much. coming up, morning star steve adder jun bury on the fixed income markets.

welcome back to "squawk box." here's what's making headlines this wednesday morning.

federal reserve to release minutes of its latest meeting. keep in mind the meeting took place on june 16 and 17. that was before the latest developments out of greece and china. mortgage applications rising 4.6% last week according to the mortgage bankers association. the average 30-year mortgage rate down slightly. 4.23%. procter aend & gamble was accused of selling packaging much larger than the actual contents. minutes always a good read as we obsess over the liftoff of the fed. >> who knows. are you a september person? >> i think september to december. push it out a bit. i don't buy the argument they wouldn't raise in the middle of the holiday season. >> if we do a quarter, they'll do a quarter every time? >> no. they told us it's not going to be a stair step like last time. >> how are traders feeling about the market move this morning?

jim iuorio joins us now from the cme group. you have a handle on how we can be up and down in asia? shouldn't we go with a closer time zone? >> no. i think what the issue is is that the greece thing isn't particularly going away. yes, we're going accustomed to it. that's why it seems like we're comfortable with it. but now that greece has kind of moved to the passenger seat and china's in the driver's seat it's plenty to worry about. remember, the big picture is for years and years we've always known in the back of our head at some point in time china's going to have a day of reckoning. because you can't keep propping things up artificially without eventually hitting the rocks. is this time it? i don't know. but is fear over china appropriate? absolutely, it is. here's the thing i'm most curious about. if we transfer that fear of china into our stock market and i think we're close to doing that. the last three days we've had

herculean rallies. that's where i think the actual trade happens. that'll mean the fear has been transferred and i think we could trade a hundred handles lower in the s&p. that's a short-term thing. i think eventually you want to buy u.s. stocks. but i think it's very interesting right now. >> everybody come on today and say not only is the chinese stock market not correlated with our stock market but the chinese stock market isn't even correlated with the chinese economy. >> no. it isn't yet. it's not up until the point where it is. if the volatility there, a lot of chinese are invested in the chinese stock market. if things start to go much worse than it is then all of a sudden it'll become a big problem. i agree we're not there yet because the correlation doesn't really exist. but if it really starts to collapse, then all of a sudden we'll change our focus in a hurry. >> so the chinese stock market is not going down because the economy's bad. the chinese stock market going down could make the economy bad because of the wealth effect?

>> no. i mean it's going down because it went up too far. if it crashes, no. >> that might not mean anything about china's growth rate. >> it doesn't matter. a crashing stock market reverberates to everything else and changes the way companies think, changes the way people think. so i'm just talking about a crash which we haven't seen yet, by the way. but we could easily ripple into other parts of the economy. >> okay. all right. i'm taking solace from what's happening in europe. and it's you know it's only six hours instead of -- >> 40% in three or four weeks is not a crash? >> still up for the year. wait a sec. it's still up for the year. the move up was unbelievable. yes, this move down a big deal but you got to keep it in perspective. it's all relative. sure you can call it a bit -- >> perspective? it's 40%. >> so it's very volatile. let's agree on that.

yes, okay. i give you it's a crash. i'm talking about a move much lower than where it began the year. >> okay. bye, jim. >> bye. turning our attention now to fixed income. thomas atterbury is manager of the $5.7 billion new income fund. he joins us now. by the way, the fund has not lost money in any calendar year since becoming the manager in '84. has the longest winning streak so to speak, in the business. now we're hoping you have the right answers. let me ask you about something that jeffrey said last night in a webcast. we were thinking about when they think the fed liftoff is going to be. he says now that the september rate hike odds are below 25%. given some of the turmoil around the globe. what's your thought? >> so the first thing is one of the things to do is we spend less time trying to figure when the fed raises rates. >> really? i don't believe you.

>> because difficult -- it's difficult to predict. now, from having said that realize it's going to be an input into what you decide in the fixed income markets. looking at the situations around the world. looking at the difference between where investors think fed funds should be and where the fed thinks fed funds should be there's a disconnect. i think that concerns them. it concerns them because of all the talk they've had about -- they call it financial stability, but they're really talking about potential of financial instability. they're really thinking about the other side of it. so realize they're afraid to raise rates if the market doesn't expect it. they need to get the two to be much closer together because they're afraid for the uncertainty that the markets might produce for them. >> you must be making some of your investment decisions as you're a portfolio manager based on when you think of or when you're modeling the first hike. >> taking that away we are making decisions on what we invest really based on the

uncertainty when they're going to increase. is it a glide path. what's going to happen with greece. what's china's ultimate situation going to be over there? what might happen out of puerto rico? all these other things to go a series of uncertainties. while i construct a portfolio, it systemically brings money back to me. 30% of the portfolio will mature this year. >> you say it's a very dangerous time in the fixed income market place. >> yes. i'm paid very very little to make an investment. if you just think about it in its purest terms. maybe i want to make a three year investment. i'm paid very very little to make that investment with a whole litany of things that could go wrong. >> what are you doing? go into high yield? >> don't go into high yield.

you'll trade one risk for another. so what we set up is a portfolio, systemically things come back. where we find some opportunity is lending against critical assets. used cars, airplanes, construction equipment. government assisted housing. things we know society needs. >> are you worried as some other people we've heard both on this set and elsewhere about ill-liquidity? the lack of liquidity in the bond market? >> yes. we've been worried about it for several years. and we look at it from the standpoint of two sides of that equation. the first one is when you look at assets in the mutual funds and etfs. from 2008 they're up almost threefold. roughly $1 trillion no $2.7 trillion. massive flow of money in. at the same time you look at the capital markets and who provides the buying. sort of greases those wheels and

puts the two parties together. they're committing 70% less capital. so they're shrinking. at the time i've got bigger assets. the other thing that concerns us is as those assets came in they all tended to buy the same thing. if i like at what they bought back to your comment about high yield, not so much high yield but lots of aa corporates lots of journeys. they all own the same thing. to whom do they sell if they had to sell something? >> so it ends badly? >> it could end badly. or we could have what we tended to have okay may and june of '13, big spike. then everything went quiet again. had a big spike in october of last year. then went through this you know rally first quarter. sell off second quarter. you get these volatility just up and down up and down as you have to work through this. >> tom, good to see you. >> just got a note from david rosenberg, bet you anything they

don't move in december. he says no. >> you're on his list too huh? you got all of them. doug kass and -- we want to see you again and hear -- he'll probably want you on his show. but come onto this show. up next rapper and entertainer ll cool j. look at this. ll cool j. this is cool. trying to simplify social media. an app that put puts all your information in one place. he joins us after the break. say neversettle. t-mobile agrees. never settle for verizon's overpriced gimmicks. try the un-carrier risk-free for 14 days

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about 30 years ago teenage queens based rapper ll cool j released his first album as part of an early def jam roster. since then he's branched out into acting and entrepreneurship. he's now a shareholder in a new social platform allowing fans to follow celebrities more easily. ll cool j joins us with max siegelman. cofounder of roush social. thanks for joining us. >> thank you. >> thank you. >> don't know you, but i'm a fan now. >> that's what i'm looking for. trying to gain fans. >> i'm going to start by -- and, you know, was it your idea? >> yeah. so i'm a co-founder of it.

what we wanted to do was simplify social media for fans. >> we were talking about the release of i think, "fast and furious 7," i don't know. the universal picture. and the way they got the word out, i had never thought about this, but they went to each of the stars i think three or four out of the stars were in the top ten of total media footprint. >> vin, the rock. >> they put them all together. the twitter, the facebook the instagram. so that's what this is sort of. >> what we do is take all social networks and bring them all together to make it easier for fans to follow their favorite models artists, celebrityiescelebrities, athletes athletes, teams. >> it's your favorite -- all your favorite stars all on main street. >> these guys had like 9 million

eyeballs. you see how hard it is for me to talk about this. >> let me help make it simple. >> is it easy for you? >> i'm not a millennial, but i have a millennial mind. >> okay. >> he speaks to millennials. >> i don't. >> it's very simple. instagram, facebook, twitter tumblr if you're on periscope, snapchat, you can basically follow the majority of these apps. if we don't have deals with them, we're in the process of doing it. you can follow them all in one place. so it's all of your social media in one place. so you know let's say maybe you have more twitter followers than instagram followers. maybe some of the instagram followers don't know about you being on twitter. go to rouse social. >> you have to get approval from all of the platforms. what about the celebrities individually? >> no. so all of these networks have open api's where we pull their

sources from. if they're posting to facebook we'll pull it in. twitter, we'll pull it in. if you're not a user on those platforms, you'll still see the content you were missing out on before. so if you want to like an instagram picture, you like it from that page. if you go to katy perry's panlge, you'll have an option for their music and apparel. >> which form of social media, mr. cool j do you prefer? >> mr. cool j. i use them all. i use instagram. i use twitter. i use facebook. but rouse social is my favorite now. because my fans all of my fans can find everything i'm doing in one place. >> it reminds me a little bit of "us weekly." like the modern version of these celebrity magazines that people read in the nail salons. >> in a way. but here's the beauty of it. but where it's going will be better. you'll be able to rouse your

friends. it won't only be famous people moving forward. we're making it possible for you to rouse anyone. you can rouse your friend. >> we can rouse joe. >> yeah. >> we're going to get a picture. you're going to tweet this out on all your stuff, right? >> i absolutely will. >> all right. >> i'll rouse it out. >> you've got the spike show that got more viewers than any other new show on spike too. third or third season? >> well we're beginning season 1-b. we were picked up for a second season. >> "lip-synch battle." >> yes. >> chrissy teigen. >> it's tough to work with her. >> it's tough. but i fight through it. great supermodel. >> i saw the rock and queen latifah. >> what was the bast when? >> they've an been great.

i loved anne hathaway swinging on the wrecking ball. and it's just a great show to be part of. i've been lucky and skillful enough to be involved with some stuff. >> can i ask you a music question? about taylor swift. the power that musicians like you and artists now have relative to what you had when you first came out. i was telling you that i distinctly remember sitting in my dorm room listening to bigger and deafer. your second album on cassette. i'm guessing you didn't have much control over what you did back then relative to now. >> i didn't. but ultimately it's all about relationships now, right? and artists really have developed true relationships with their fans. there isn't that much pr and that much -- you know that veil has been removed. we're much more connected. >> are the artists getting a

fair shake with streaming? >> i think like any business model, it takes time to develop and somebody will figure it out. everybody always figures out how to make the deal right. that's about deals. that's really the easy part right? i mean ultimately it's just about who has the leverage to make a great deal. you talk about that every day. >> did you guys all take notice? i mean did you talk to some of your colleagues in the music industry when taylor swift spoke out to apple? >> i pay attention. i think artists should be compensated. but at the same time i'm more excited about doing things that haven't been done. right now i wouldn't want to start a streaming service. because it's been done. rouse is exciting to me because it hasn't been done. >> i have one quick question about rouse. how do you make money? are you selling ads? >> we're not selling ads right now. but we sell music through affiliate deals, sell merchandise. so if you go to golden state warriors page you can buy the

latest merchandise. go to steph curry's page you can buy the merchandise through under armour or his jerseys. we also have a donate button we just partnered with chitio which is great. so if you go to ll's page and you can go to his foundation on there is jumping ball. >> chitio is an organization where celebrities can donate to their favorite charity. >> he helped you get into this business. ceo's don't look like this gi goo i. are you going to have him on c ncis? >> they look like him now. >> he's lie dawson's creek now. are you playing a ceo? >> you're the next generation. >> this is what it looks like. >> do you see the ceo's we have on here? i mean this -- all right. whatever. >> i see them. they're cool in their own ways. >> they are. >> yeah yeah.

>> all right. we've got to go to break and get a picture and tweet this. how many followers you got? >> i got a few. >> that's squawk box. >> all right. >> thank >> "squawk box." >> rouse social by the way. >> go down load it. >> l.l. ladies love. >> 2 37b9 5.5 followers. >> united a ground stop this morning due to a computer issue. no word on the exact nature of the problem or how long it will take to be resolved. big hub at newark and in chicago. that's trouble. up next jim cramer from the floor of the new york stock exchange. these two oil rigs look the same. can you tell what makes them so different? did you hear that sound? of course you didn't. you're not using ge software like the rig on the right. it's listening and learning how to prevent equipment failures,

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mornings. wonderful, crazy mornings. we figure you probably don't have time to wait on hold. that's why at xfinity we're hard at work building new apps like this one that lets you choose a time for us to call you. so instead of waiting on hold, we'll call you when things are just as wonderful... [phone rings] but a little less crazy. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. xçó0 york stock exchange. jim cramer joins us with futures heading lower. worried about china, sort of a little bit more optimistic about europe. >> the futures are down 25 ticks at 4:00 this morning. they opened down badly because

of china, and i think that this is really incredible. europe is providing a little bit of optimism. i'm not optimistic about europe or china. i think you got a gift yesterday when the market rallies and may i point out for the record sara, 11 years ago my door pool side called l.l. cool j. mr. cool j. and he said call me l.l. >> i just made the same mistake. do you know what it stands for? >> yes. it's like ladies love cool j. >> there you go. i had to look it up. >> you thought about that cramer but it was taken. >> i told my daughter i said go up to him. he's the only other guy around this pool that's as sexy as i am. >> he's in pretty good shape for 47. >> he's brilliant and nice. my daughter was shocked at how long he talked to her and she

was 11. >> there's been a pretty good debate about how much china, the stock market crashing actually matters. should we be more worried than we are? >> much. much more worried. >> why? what's the tie in? >> because this is the most over levered market. everybody was in the pool. when i measured to the nasdaq comp it's almost to the day. this market has fallen 36% literally in 24 days. ours fell in 29 days. they're on track to be able to repeat exactly what happened in 2000. there was an s&p in this country. >> people say it's not correlated to anything. >> well 40% of the g and p. ours is 100%. when you see iron oar down 6% in ten days you know that's them.

there are certain companies that are very much china oriented. you have to be careful with them. kroger you don't trade off of china. >> 3% yielders yesterday went nuts at 11:35 a.m. that must have been the al goes. >> i'll see you in a few minutes. >> job cuts at microsoft. we'll give you details next.

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welcome back to "squawk box." in corporate news today "the new york times" reports that microsoft announces a new round of job cuts as early as today. they're said to be in in addition to the 18,000 positions the job was said to cut a year ago. >> the other big corporate story this morning barclays ousting their ceo. shares of barclays went up about half a percent. they've had a number of problems. it's just the latest in the line of european ceos that have been out.

>> earnings coming out tonight. hot and heavy. i think another interesting market to talk about tomorrow morning. china, who knows? europe positive now. >> it doesn't matter fundamentally what china means. you see a market like that -- >> spooky. >> right. >> make sure you join us tomorrow because it's probably going to be interesting. "squawk on the street" is next. ♪ >> good wednesday morning. i'm carl quintanilla with jim cramer and david faber. u.s. stocks tested today this time by china's crash. stocks down 8% over there before closing down nearly 6. nearly all stocks suspended for trade. european stocks higher today. ten-year around 2