t about sex? >> that's in there too. the first book i wrote had four murders and two sex scenes and the guys said how did you think about the sex scenes? >> it is great having you. >> it's been fantastic. >> thanks sarah. >> thank you, scott. >> welcome, joe. >> let's go to break. make sure you. >> julia: us tomorrow, "squawk on the street." all systems are go. the ncse says a day after the nearly four-hour trading halt at the oldest and most iconic stock exchange in america. opening bell is going to be rung by a company with the ticker hack. that's interesting. welcome. i'm carl quintanilla with jim cramer and david faber. lots of focus as the big board

tries to recover from yesterday. the premarket is up. alcoa and pepsi on the tape. they continue to lean on short siders. the ten-year is up and crude is up and oil is back. >> the imf trimming the global and u.s. forecast seeing world economic growth of 3.3% for the year. u.s. growth seen as 2.5% compared to a prior 3.1%. not a surprise echoing what the oed and others have done. >> you have christine lagarde telling our fed, guys think twice before you raise. you is want to remember they are a tough organization. there is a lot of feeling the imf must be a bunch of softies. they are very tough. they are very concerned. merkel is the naernperson that can

shut down greece more than christine lagarde. it confirms what people felt was behind the two days ago rally, the fed won't be tightening. when you don't talk about them you start getting a little emboldened. >> not to say you like the setup. >> this market is not suitable for a lot of individual investors. i do think when you criminalize short selling and get stocks that have lower multiples that look like american stocks you get actual buyers of china. the futures are trading with china. like the old days of tokyo in 1977 or 1978 waiting for the market to open in tokyo. futures immediately shoot up. the government comes in and takes the market up. sellers come in. china waits. they wait they wait and, boom they take it right up. they slam it in the face of the sellers and then kept it there.

>> i think it is far from clear that the tumult in china is over with one day's trading and all of the efforts by the government, so much of which seems to have instead of engendering confidence has destroyed it. it doesn't do a lot to bring about people feeling better about things. it is fascinating to watch given their success in intervening in other markets and their incompetent ability to have done so successfully here. they have encouraged the investment that resulted in that enormous rally in these markets and created liquidity for so many of their companies many indebted companies. they brought in so much of the chai chinese -- not so much. that is actually not correct. a lot of people, percentagewise in the chinese population. >> look the market is up from

china. >> is this the way we are going to be? >> if this is the way we are going to be, i've got to tell you, get used to it. when it looks really horrible you are going to buy and then you have to trade out. you have to trade this market. >> understood. we knew it would be a big front page story, the nyse travails yesterday. the "usa today" has a bigger one, glitch nation. >> the important thing is that the nyse says they are expecting a smooth open. i have been speaking with the specialist. they all told me things are operating smoothly. all these people say, we are set to go. late last night, they issued a statement saying, the cause of the outage was a configuration issue. a server or a piece of hardware wasn't set up correctly.

the likely cause was a routine software upgrade. they require changes of the software code and sometimes they create problems that go back and forth between the nyse and their clients. there were connect tifl issues at the beginning. the shutdown later caused a cascading series of new problems. the question i have for the nyse is, did they follow best practices testing the upgrade in a virtual environment? who exactly managed the performs mans of the upgrade? what is next? >> first, a bit of damage control. they need to assure clients. the fcc is going to determine if the nyse was in compliance with recent regulations that require all the exchanges to regularly update and test. there is going to be a postmortem. don't expect anything for a while. they move at a glacial pace.

this could take a year or more. >> what did he we learn? there is a need for a safety net f the nyse ar pel i go exchange operated as normal. i heard a lot of comments yesterday, it shows the floor is not necessary. i don't think it shows it that at all. the floor is still very necessary, particularly on the open and the clothes. ask ipo people if they think the floor is necessary. it wasn't about the floor but making sure that the technology that runs anything whether it is electronic or the floor operations operates in the most efficient and professional manner? >> i think that's what we need to look at right now. guys back to you. >> thank you very much and well said. the "times" has a headline failure in new york exchange makes barely a ripple in the day's trading. >> market share.

>> it was 80% ten years ago and now 20%. >> the undergoing thesis of flash boys helps, the death of the market. flash boys is against run ahead. there are so many different markets, it just shows you that honestly i think if we weren't here with cameras on it you might have not known. they say we are not using the floor today. at war, it would have certainly been something some people would have been aware of. it didn't actually impact trading. >> the s&p was still moving the dow. everything was composing itself as it would and the volume moved to other places. even though it is much smaller than it was. >> a lot have oof rivers.

>> it is important to point out that when we looked at the market share ten years ago, this would be a major decline. there would be an outlet like hack that would be -- that came up with a cybersecurity etf. i still think that unfortunately, i wish it were on top. while this may not have been a hack, we all get the sense that everybody, keep checking your balance at your bank. i'm urging you to check your balance. i check it twice a week now. i should check it every day. i don't want that $1.48 taken out. they will take $1.48. >> they will skim off the top. as we head earlier, overnight in china, stocks

rebounds. the shanghai up 5.8 after posting losses in eight of the last seven days. china's security regulator banned share holders with large stakes and enlisted frirms from selling in the next six months. this includes insiders directors, not to mention the threats they are beginning to make on what they are calling hostile shorts. >> i thought the line that was key was the malicious short science. remember, they involve the public security ministry is now going to be involved. they are criminalizing it. >> as the ministry of finance started buying stocks out right? >> i know the government is there. does every government have a little fire power?

>> i want to point out that david is absolutely right. this market is up and it is not done. there are a lot of p cans that companies that need to issue stock unless they get american companies to come in. you are not going to get a real bottom. >> when you have "the new york times" on it -- >> i have been arguing for a week and a half that it is more important than greece. i still believe it is. >> you still do? >> i keep backing you on the idea of systemic. there is the possibility of contagion. we still don't know who owns a lot of these companies. you don't know who owns these shares. it has to be watched closely. the economic effects continue to be debated. it is a small percentage of the overall economy. apple. >> your point last night, can it be 87 here where the market takes a hit but the economy does not.

>> that's what i thought was most likely. you have this describe began tick decline. we saw apple sell a lot of cell phones. all the parts, the cell phone companies were down. obviously, china has been a huge lift for apple. their people have lost a lot of money. maybe they are less likely to upgrade. i think that 87 is a better analogy than 2000 and tokyo bandied around 40,000 to 10,000. >> few companies have a larger interest in how china does than alco alkoa. >> china is becoming in my view potentially, a very interesting market for products. the presence that we as alcoa

have in china is not in the upstream. china need more value. we want to participate from that move. we have already positioned ourselves in that way. >> it comes after the earnings which you have called aces. >> i like the earnings. there was a lot -- there was this moment in the conference call where klaus talked about dumping. they use another phrase. they called about semi finished chinese. they are sending a lot of aluminum out that is finished. the chinese government doesn't like this. the reason he is saying this is going to be a good opportunity for china. shortage of water. it pollutes the air. they have to keep the finished product there. they are trying to make less aluminum because it is so dirty. the chinese dumping so much in the semi finished fake business they are doing. he is saying the government is

going to crack down on the exports. that's going to help alcoa. they went through you a series of things. i love the quarter. let me go over some quick points here. aerospace, still very very strong. $125 worth of orders out of the paris air show. auto still strong. u.s. sales up 4.4%. heavy duty trucks. he called it a fascinating story. he and i are fascinated by the same kind of things. turbines, very strong. natural gas, because of the switch from coal which remains one of the most important underlying stories in america today. >> and something that is affecting the rails as you said last night. >> it has been going down 2%

year by year. 8% a huge exporter of natural gas to mexico. the mexican government. they are having trouble with drilling. suddenly, we have all the gas and it is selling at $1.50, a win for everybody, including the producers, which are making money here. >> earning season in the meantime, is underway. we will look at the premarket reaction on pepsi. former scc chairman harvey pit, with his perspective. another look at the futures the day after the dow hit a five-month closing low. the s&p with a four-month closing low. more "squawk on the street"s back in a minute.

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volatility continues this week. futures down almost 200 points amid ul athe infrastructure problems we had on the street. pepsi raising full year guidance reporting bigger than ever results driven by more demand for snacks and beverages. walgreen's pepsi, organic growth up 5.1. pricing in latin america surprisingly good. >> a lot to like here. it is not just new products.

the spending is paying off. also, a cessation in the aisles for drinks. soda getting better. soda is not as important as frito-lay. rush is better. commodity is better. this was the kind of quarter that you, if you are at home looking for a stock when the market is hammered, you can come back to this. this is a very strong quarter. >> to the extent you have discussed the impact of a higher dollar and wondered whether that would impact the earnings season. >> impact core earnings per share by 11 percentage points foreign exchange translation. nobody seems to care.

they are recording everything in constant currency. >> i'll tell you why. if you go back to the release of the previous quarter, take a look. they predicted 11%. the interesting thing is, this he said it was going to be 11% and it was. that's why pepsi is getting a pass. >> freeito-lay, year over year went negative for the first time in 2 1/2 years. >> i think you have to look the frito-lay and their soft drinks represent the most favorite brand. turnover is a big win for supermarkets. frito-lay went down a little bit versus what i would have liked. the entire mosaic of pepsico was very very strong. i see quaker coming back a

little. >> if there is a cessation in the price war with coca-cola, there was way nice swing in actual carbonated. many things to like. i understand why it is up and it should be. >> we are more to talk about with p&g striking that deal with cody. >> everyone will want to keep an eye on the nyse as they fire up the engine yet again. back in a moment.

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is time for the mad dash ahead of the opening bell. >> let's get to it. a couple of things to mention. it is important to point out that walgreen another company a lot of big changes. this was a monster beat. looking for 87 cents. they did 1.02. walgreen is a very big company. that is indicative of where people are going. look at that rally ahead of time. unfortunately, charitable trust owns that. maybe it will make up for the gm disaster. i don't know if you caught it. i tweeted you this minute. >> that's why i asked for the junior mint. you don't have to pay $27 for

junior mint at dollar tree which is my favorite. morgan stanley disagrees with me. they say they are constructive. they say all the news of dollar tree is now. the possible problems with dollar general. >> they finally reached the best in terms of the number of stores wanted by the ftc after the big battle with dollar general. >> all three of my dollar tree stores are beautiful, all three. my philadelphia one, my one out in the hamptons is terrific and my one next to the jersey beach house. >> family dollar the activist was pelts and trian. they ended up on the board of

directors. you had other people visit over time. you mentioned walgreen's. also, another board seat given to jana there as they move ahead to sell the business they just bought two years ago. not a good deal. >> when you see a start-up underrated dollar tree think twice about selling that stock. i think that's an opportunity. i'm not being facetious. last night, you talked about all the things in place that ordinarily would seem to be good. dollar stabilizing, fed on hold rates are low. u.s. data has been hanging in there and yet you still think that the rotation out of yield and utilities, that's not going to last. >> i don't like a market where we are not dependant on ourselves. one of the conclusions i reached was like these should matter. maybe the walgreen pepsico,

alcoa could help. the problem is when i was there last night, we were all waiting for china to open. china opens down, up. this is not a good market where we are all thinking will china or europe hold? i want to get back to a united states earnings. this is nuttiness. >> we are getting every day up and down up and down. are those signs that this market is fragile? >> i think there are parts have o the economy that are weaker. anybody who is selling into europe, europe is not good. china, not good. we are hostage. until we are not hostage, i find that this is an unnerving market where i don't like markets where you leave and it is down that and you had to buy the close.

now, i flipped the opening. >> we haven't even discussed greece. on sunday, we are going to deal with it again. >> the dollar is up again. i don't want the dollar up. pepsico got the pass. airport is good. when i look at a market up and down and i see interest rates go higher today, they will buy the banks and sell the banks tomorrow. this is not a great market. >> walgreen's. >> historically. >> they didn't invert. >> they did not invert even though jana i think, would have liked them to. >> did the trust get out of starbucks entirely? >> decided to sell it. felt like it has been too good

to me. it is a good company. >> you liquidated costco and you lived to regret it. >> i'm going to regret it. >> why did you do it? >> it was a bit of a miscommunication. >> was it a configuration of your software? >> to some degree yes. sometimes you make mistakes. >> how long has it been in the trust? >> i got a note. there was a miscommunication with my research director on star bucsks where the size was meant to be right sized and instead, it was sold. i said listen we want to get it back. >> speaking of miscommunications, i would like to go back and discuss that nokia deal much of what was written down. yesterday, the writedown exceeded the overall value. that wasn't quite right. the overall value was 9.4

billion. it was only 80%. >> it was throwing in the towel as we know. that was yesterday's story. of course we will keep an eye on shares of microsoft, which were bucking the trend yesterday in the early going. >> microsoft, it is surprising. everything p.c. related is not doing well. the microsoft positioned themselves as a cloud company, an "x" box company a company that is doing a lot of getting away from pcs, faster than intel is. i think that is reflected in the fact that they sat down with mark from sales force. >> finally, we didn't mention the deal. we hear the applause for the opening bell. we will get to it from the other side. significant transaction worth over $12.5 billion. reverse mortgage trust is what they want to do. somewhat complex. >> is that a better buy for cody

than avon would have been? you see they sell some brands to walgreen. there is the opening bell. a look at the s&p at the bottom of your screen. obviously, everyone watching how i think the structure holds today today. the pure funds, ise, fiber, security atf celebrating the $1 billion market. sage therapeutics focusing on medicines to treat rare central nervous system disorders. as it appears at the beginning, the boards are looking the way they are supposed to. that was a moment when everything went yellow down here and the traders, if you can marge a imagine, a room of mostly men saying whoa to run around and coordinate saying what just happened. >> your calming presence made

people feel good carl. >> good to have you there. we are going to check in with bob pisani as soon as he is ready. in the meantime a week of high-profile downgrades. a couple for tesla and today goldman on shack. >> they were right up front talking about that july 29th expiration saying that their stock is going to trade differently. some feel this is a pile one. where were these guys when the stock was at 80 90. where were they? they were having a shake shack burger. >> trying to investigate the fried chicken sandwich which has now hit the menu. >> if they do sell a lot of stock, the stock can go lower. it is hard to value including chipotle. the sales are set to accelerate.

they opened a chipotle in england, in london where the wall street guys are. the one thing i would say about chipotle i am not being critical. they came on and said they needed mcdonald's to shift to natural, organic. they are moving the natural and organic market. it is hard to find this pork issue, the carnitas that has to be solved. this is the humane treatment of pigs. they need more pork. >> i can't remember the last time i was able to get it. >> people are saying bring back my carnitas. maybe this isn't important, how humane the pigs are treated. they still end up in the same place so to speak. >> the dow is up a cool 200. let's get to bob pisani and find out how things look on the floor. >> the nysc said they were expecting a smooth open.

a lot of foreign stocks trade here. aig opened okay. a couple over here. pepsi with the earnings just out. good earnings report. they are up 1.2%. that opened smoothly. here is guess jeans. here is harley-davidson. they are open. jason, we okay? everything open all right? there is the designated market maker. it opened fine here. palo alto networks a big cybersecurity outfit. opened up about 1%. that's looking fine. some of the other stocks here looking fine medical properties all opening. everything is fine. these are some of the china stocks that trade in the u.s. they are all opening fine. last night, the nyse issued a statement saying it was a configuration issue. a server or a piece of equipment that wasn't set up correctly.

likely a software problem. they upgrade routinely. likely, there was a coding problem that creating some kind of error in the messaging traffic between the nyse and its clients. that was probably at the open. >> this code is very complimented. the potential for error is very high. did the nyse finish up? >> a little bit of damage control they have to do. i am sure they were ensuring them this was an event not part of any systemic problem. the sec is going to look into this. they address this very issue. that required all of the exchanges to regularly update and test all of their

technology. the scc will look into this and determine if the nc all the exchanges are in compliance with those regulations. don't expect anything to happen this week. this is going to take a little while. it could take a year. they take a long time to make determinations at the sec. in terms of what we have learned, that i arelearned learned, there are backup systems. the electronic trading aarp was up arm that was fine. traded fine. the backup system was the fragmentation. we had trading as a river. we dromdpped a rock in the middle of the river and everything went around it. you see all the orders on the open and the close. we did learn there is a safety

net. that safety net seems to be working. neal, we are okay on the open? neal says everything is fine. pepsi, colombia pipeline over here, right now, we are opening as normal here. we just had a very strong open on the back of what's happening in china. some hopes for what's going on in greece. right now, looks like we are opening smoothly. i want to make a call to the nyc and make sure there are no other minor glitches going on. right now, looks like a smooth open. back to you. >> we will keep our eye on this ball, bob. thank you very much. up .250, actually. every do you component in the green, you sell the open. >> i think there might be a time during the day it is a little bit weaker. >> i think people have to be very careful.

disney was down $2 yesterday, up $2. just be careful. don't get confident that this is all clear. that would be a mistake. >> as you might imagine, the stocks were getting hit because of the trouble in china. not just adrs but the likes of ali baba. it had been rumored for quite some time. it had been introduced this morning. a split-off of the business in a very taxi efficient manner so that p&g is not going to have a huge capital gains bill of any kind. 43 different brands to cody which makes it a much larger company. there has been some discussion overall. bernstein wrote a piece saying that deal would be fine. what about the idea of breaking up into two or three larger

companies. can the company be managed effectively. they seem to have had a harder time given their scale. >> they are eliminating. >> a weak division. >> i think it was hard to improve divisions. i think they tried very hard to improve divisions and they haven't been able to. stock has been not that great. unilever has been not that great. the category has been challenged. a couple consumer package, good stocks on the in you high list. >> general mills surprisingly. i think the big issue, these companies are good, consistent, stable companies that people like to buy in times of turmoil. that's not changed. i like proctor, frankly. >> this is what you call a bounce. for a moment there, we had three s&p 500 stocks in the red. three. which is just enormous.

you don't see that too often. >> you trade around core positions if you are able to do that at home. selloff to buy the highest quality companies. don't get overconfident. a big mistake to get overconfident here. it is just bad to get overconfident. we'll keep our eye on a fixed income in the bond markets. rick santelli at the cme for us once again. >> good morning carl. it is fascinating. if you look at where ten-year yields bottomed out, whether it was tuesday or wednesday or what's considered today's session in the wee hours of the morning, long before our time zone was center stage, those yields were respectively 218, 217, 218. why is that significant? we'll get to that in a minute. look at the 24-hour chart.

seen o the far left. a two-day chart, the pairing there. if you look at the year to date chart, you now have the answer. it was where we finished last year and where we basically settled after the october 15th crash. if you look at a two-day chart of the bund a little different pattern than the u.s. if you look at 10 year minus bunds, since june 1st the relative spread differential has remained rather constant in the mid 1.50s. that's important. we are moving together. there is pretty good correlation there. try to hedge that out. if we switch gears to foreign exchange let's keep the date the same and look at it from different sides of the mirror or

the looking glass. march 1st. if you didn't look at it it is consolidating in a very drawn-out wenl. if you if you look at the euro versus the dollar it is the same but in reverse. a little bit easier on one score. 105, 110 on a closing basis. those are the areas traders are paying attention to. just like unchanged for stocks. how many plays do you get to do? traders think he will be able to do it a lot. they don't believe the chinese economy is appropriate pli determining their stock market but they do understand they are very determined. >> given the macro of concerns the talk about greece we can forget we are in the midst of an m&a boom the likes of which we

have not seen forever. volatility can have a dampening effect on m&a. it is difficult to find out what price should be paid or accepted particularly when you are using currency not just cash. >> i did want to come back to a deal that may happen i have been following for some time. anthems pursuit of cigna. they do seem to be making progress towards a deal. they have larnlgely dealt with the governance issues that seemed to be an impediment to any deal between the two. that's because david cordoni ceo of cigna wanted to be cigna of the combined company. it appears they have backed down and governance has been dealt with. price continues to be an issue. originally $184 a share had been the price offered by anthem

it does appear progress has been made. united health care is hovering around. that is not unexpected as consolidation takes place. everyone talks to everyone. there is the question of would they actually consider trying to mount a bid for cigna? if so it would be at a high price and an enormously high break-up fee because of the antitrust adherence and the unh deal that would include many divestitures. it is something you have to keep in mind as you continue to take a look at this consolidating area. cigna, not without its own antitrust.

in particular states they are a preponderance of what would be the marketplace, so to speak particularly on the commercial side. also important for etna humana. if we do get this anthem cigna deal, it will be considered in the same window by the department of justice. mark bertolini says it may be viewed in a singular manner. they may run them against each other. do they approve one or both or say no to both? we are watching this closely and i'm continuing to make calls, jim. we are going to keep an eye on. i don't want to forget about the consolidating industry. all of the players are up this morning. >> when we came in on monday after the referendum and then tuesday, wednesday, all i heard was, listen the deal market is going to freeze here. what you just said tells me that is just not happening.

>> not in something like this. not in something like this. >> you mean something that's already progressed a long way. >> with an industry where it really would seem to have a forced function if you will on other players. >> if you continue to see volatility like this broadly speaking, even for deals that have been germinating, it can make it more difficult. >> if you got deals back that was important. >> i still believe you will see a lot more mna and don't forget about activist. we don't know. >> we're going to talk about. >> coming up on wednesday. oil is trying to claw its way back to 54. jackie deangelis is at the nymex. >> that's right. with we are seeing oil prices higher along with the equity markets perhaps on some positive sentiment coming out of china. prices are up $1.50 this early in the session. that's pretty seg.

53.15 is where wti stands right now. traders are saying this is a little bit of buying the mentality. these things never move in a straight line in either direction, up or down. also, they are watching products specifically, gats gasoline. a lot of movement in the market. having said that, the national average for a gal of regular, 2.75. mixed reports on nuclear talks with iran. at 10:30, we'll be back with the natural gas inventory data. we are watching the price is up slightly. back to you. >> jackie thank you very much. when we come back john legere on the company's growth that's

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the dow is up 208. best day for the dow and s&p sense may. all systems appear to be running smoothly in the early going. >> everything goes up at once and then we look at the market and say, wait a second, caterpillar, that's an opportunity. that's related to china. maybe we should be selling caterpillar. intel, a chance to get out, because the p.c.s are weak. china truck orders were very bad

it is what i don't like. they sell sell sell. let's be careful. >> we'll get stock trading with jim in a moment. don't go too far. it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank.

take a look at the markets. holding on a 200-point gain. best day since may 8th. time for cramer in trading one of the most consistent is ul ta salon. if your stock doesn't go up you shouldn't own any of these. this is a sign that domestic retail is back. this is what people want. this is the fastest grower. insurance companies, ever since the chub deal, i said this travelers is not going to take over. travelers, by merrill lynch, this group is very strong. there is a lot of chatter there are more deals to come in the insurance endoes stri. thaflers, because they are doing a great buyback. i think it is a marvelous company, incredibly well-run.

david, you will agree with me. insurance is back and retail is back and i have to tell you ulta, i shuttered when they reported that quarter and went down eight. it is above where they reported. beauty parlors so important. >> cody is willing to pay for hair care and hair coloring. j.c. penny does the same thing. i would go to the beauty parlor and see what the heck it is like. >> we did get lb with june comps up three. if victoria's secret wasn't that good i may have to stop by. >> always worth a visit. >> a mental image i can do with that. >> what's on tonight? >> we are going to tell you the stocks that have held up and why. then we are switching

direction. during the show i switch direction. after you talked about cigna, i am putting together a piece about while these deals are occurring. literally, i said this is it. i have to explain why. you just dropped the bomb of cigna. the stock goes up four. >> it is not as though we didn't know. you dropped the bomb on me. >> we have a live interview with olivier blanchard. dow up 198. we're back in a minute.

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open an account and find more of the expertise you need to be a better investor. good morning. welcome back to "squawk on the street." i'm carl qintanilla. the nyse has tweeted that all systems are go. people are trying to make some positions work and oil helping matters trying to get back to

54. >> let's get to our road map for the next 60 minutes. a huge rally on wall street. art cashin will joint us imminently. >> the imf lowering its local growth path. the chief economist olivier blanchard joins us asian markets rebounding. china seeing its biggest gain in six years. we will talk to the chief asia strategist of goldman sachs about what lies ahead. coming up later, t-mobile's john legere joining us. that company adding more than 2 million customers. will it be enough to take the number three spot from sprint. coming up in half an hour. >> here at the nyse a normal beginning to the session. the dow up 203 points. bob pisani on the floor with more. >> we watched the open. the nyse said it would be smooth. it has been. the volume pretty good.

relatively heavy volume. we are not far from the same volume we had at 11:30 big day for pepsi. stocks up. a smooth open. going by glen's post here. he has some of the big names. twitter opened okay. under armour is okay. go daddy is up almost 2%. some of the energy stocks trade here like colombia pipeline. disney dew point, 3 m invesco. they are all trading fine. some of the big financial names traded around the corner here. citi has opened fine. no real issues there. by and large, we are looking fine. the nyse said a piece of

hardware wasn't correctly set up. it is no the a hardware problem but likely due to a software problem. they are updated and sometimes there are coding errors where you have a piece of code that causes a problem with interacting with the customers. sometimes it works. sometimes it doesn't. it is amazing this thing doesn't happy more oven. the big question for the nyse. did they follow the best practices in doing the update. i think the nyse needs to do a little damage control and insure the customers this is not a systemic problem and have them make sure it is in compliance with regulations. >> we'll come back to you soon, bob pisani. for more on yesterday's halt and today's rally. let's bring in art cashin director of floor operations with ubs. the conversation on the nightly

news and the front pages of the newspapers is a glitch versus a hack. >> are you convinced beyond reasonable doubt that a hack was not involved? >> i think it wassen ainternalan internal thing. they were doing a service upgrade and something was not reconnected properly. the good thing to point out, however, while it was not the finest moment to the new york stock exchange. it was the opposite of the flash crash. in the flash crash, the system ran amuck and orders were sent to places where people had stopped making markets. procter & gamble traded at a penny in some places. people lost money. what happened yesterday, they noticed a glitch in the system and they shut down. they isolated the new york stock exchange, shut it down so it couldn't infect anywhere else.

it was a painful decision. >> would it surprise you that volume took a hit? >> i would hope not. you have to remember that there are still some things we do excel at. they are both the opening and closings. i think that will continue to attract volume. i like to think some of us old foeg gis can contribute something in the middle of the day. >> what about the real estate investor. clearly, things were still trading. whether they should or should not take from this the market is rigged or bad. do you think it will hit can have confidence? >> absolutely not. there was no major disruption. no one lost a lot of money. there were people pounding the table saying this is a

catastrophic failure. war was the catastrophe? nobody lost a great deal of money. >> why didn't they switch to the backup system in chicago? i would ask whether there is a conflict of interest in an exchange that wants to limit its liability and settle orders and start afresh rather than acting in the national and open as soon as possible so people would have access to the market? >> i think there were two things. the market tended to trade fluidly even after the shutdown. i am not happy about it. it is a fact of life. that put far less pressure on trying to snap back in. if there had been a major news event and people would need far more liquidity, there would have been great pressure. was it was, this he seemed to be satisfied that the sister

organization arkychipeligo was trading and people would get from that. the imf just releasing its update for its world to the weakest rate since the financial crisis. the chief economist olivia smith. >> it does feel we keep taking a few steps forward and one back. the global growth rate not as impressive as some would like to see at this stage in the recovery. what's the overarching problem? >> i don't think there is much of a step back. i think we are month are or lesson track. it is not a very exciting track. the revision to the forecast comes in large part from the terrible first quarter in the u.s. but, you know the more we

look at that quarter, it was an accident. it doesn't mean the u.s. recovery is weak. on that we are very much where we expected it to be. it is not great. the recovery in the economy is continuing. it could be stronger. it is continuing. emerging growth is slowing down. >> you are warning that the federal reserve should wait until 2016 to raise interest rates. if you see the u.s. economy doing well and the first quarter is a mistake, why wait? what's the holdup? >> again, it is happening. the question is when do you start increasing the technical interest rate. there is a technical discussion between us and the fed. they think they can wait longer. these are just details. the important thing is the recovery in the u.s. is largely happened.

we are not very far from the rate of unemployment. we are not very far. we want to be exactly where we are is the job of the fed. it is a technical thing. take one step back. the u.s. is doing fine. >> we haven't gotten to 3% growth yet. still waiting for that kind of year. i wanted to ask you about china. that is top of the mind for investors. clearly, the market swings are stomach churning to watch. do you think there is a disconnect between what's happening in the chinese economy and the chinese stock market? if so what is the stock market signaling to you? >> i think there has always been a disconnect between the chinese stock market and the chinese economy. the chinese stock market is not quite a casino but it is not very far from it. it goes up. it goes down. it had gone up much too much. 150% in the year far exceeds any realistic assessment that share

holders could hope for. still a long way down potentially. it doesn't have much effect on the chinese economy. it is much lower than say in the u.s. it had gone up so fast that people didn't have time to spend the capital gains. it may have an effect on capital gains. what is really happening in china, intentional slow down in growth, the end of a credit boom, the end of the housing boom. if you leave the stock market aside, china is doing okay. one should always worry about things getting worse. >> i wonder if you worry at all that the policy makers haven't been that effective when it comes to fighting the sharks

that we have seen over the last few weeks. there are some serious questions of credibility of what they are doing and whether it is working. >> i think it is always hard when you have an exchange rate which moves very quickly. it is not obvious how you handle it. when you have stock market prices moving have he quickly, not clear how you handle it. the complete hands off to see what happens may lead to enormous movements. in many cases, you want to intervene and slow down the adjustments. you use what you have. this is a story we have seen many many times in many markets. it is hard to slow down a burst. it can be done. so far. it took a while. looks like it is successful today. mr. blanchard, can i ask you about greece. you may have changed the course

of history with greece. can i ask you about the very important decision you made to public that report the thursday before the referendum stating that the greek dead was unsustainable without debt relief immediately taken up by the prime minister in a televised address. it may be why there was a "no" at the greek referendum? can you tell us why you decided not to public and why you decided to publish? >> i am not sure we had much impact on whether it led to a no or to a yes. people were for the yes but people that were for no could use the argument. we didn't do it to try to change the outcome of the referendum. we did it because we have been convinced for a while that any deal in greece has to have two parts. the greeks have to do something in terms of fiscal structural. the europeans have to recognize

the fact that this means more financing and some form of debt relief. that's a discussion we have had with the europeans for a long time. you can probable will i trace it back to 2015. surely in the last few months as well. on the referendum, a document which was put there had the eu evaluation of that. we felt we could continue to debate by going public. that's what we did. on your last point, i must say that contrary to what the press reports have been there was no position that was supported by the executive directors at the board meeting at which this decision was taken to proceed and just put the information on the table. the reports have been completely wrong. >> owelivier, thanks for joining

us. congratulations on the announcement to be retiring. >> it may be the understatement of the week to say it has been quite volatile for china. they made their biggest daily gains closing almost up 6%. you just heard the chief economist, olivier blanchard commenting on that. joining us here on set is timothy moe. >> yesterday was encouraging. i think one day it is hard to state it is the bottom. it is encouraging to see green on the screen. we are starting to see some signs of clearing of the market. i am sure you are aware of this and discussed this. with a number of stocks being suspended, we have had 32% being

suspended. the deleveraging which has been going on hasn't yet fully purged. that's what we are looking for for the sign of a market bottom. we have seen some encouraging signs with companies coming out of suspension. we are sort of still in a fairly big battleground going on right now. >> we enjoyed having you on. the last time we had you on was april the 13th. >> it is a bubble that will crash the system. the answer is not yet. it went up 30%. up 30%. down 30%. when you look at a central bank that's acting as it is clearly the concern is that maybe broke

rinl has brokeridge has a market. >> the answer is, of course, there are two sides to this. it does require some nuance. very quickly, signs of speculation has been in the small and mid-cap part of the market. >> so far, yes. the sort of chang high hong kong connect. it is more the blue chip part of the market they have had access to. shenzhen hong kong will be announced soon but has not been made easy for foreigners to get to. let me give you a couple of numbers. it is always good to ground the conversation. going from cheapest to most expensive, offshore china, hong kong embassy index is trading at nine times six.

1.2 times book. 3.4% dividend yield. they are inexpensive in absolute terms and relative to range or region z do you believe the figures the chinese corporate affords? >> the hong kong environment is robust. the csi 300 is sort of the blue chip shanghai stocks as of last night's clothes, were trading at 13.6 times forward earnings. pretty reasonable in terms of its rain. where the speculative part is in the shenzhen exchange which is trading at 26 times earnings and the chinex 37 times earnings. the valuations are high there. the marchgin and frenetic trading

is canstrading there. >> if you are looking for a clearing of prices if i'm an insider, i can't sell for months. >> this is where there has been a dent to the credibility or the maturing of the market. for oversees investors opinions of china, there needs to be some there. in order to have a morrow bust stock. if price discovery to take place. that was not fully happening. by the way, that is separate from having circuit breakers in place, which are a natural phenomenon. we have them here. circuit breakers break the self-fueling, self-forential

spiraling of prices. >> do you believe the moves the government has made has instilled or broken confidence. >> up until two weeks ago, the view was there a beijing put akin to the fed put many were speaking of here. that was underpinning the market. now, i think the actions that took place were with the benefit of hindsight, somewhat more piecemeal and partial in their aggregate form so they didn't have the positive effect that was perhaps desired. when you combine that with a market that had gone up a lot, the need to delever overwhelmed the somewhat haphazard collection that had taken place. >> you haven't answered his question.

does it instill confidence or not? >> the last couple of weeks, i think confidence has been dented. as of last night. sentiment is definitely responsible for price. people feeling better today than yesterday. i was running around yesterday seeing investors around town. a lot more gloomy faces than there was this morning. the key point i was to make here. to ground the conversation at the peek retail was 2.3 trillion on july 8th. that has come down to 1.6 trillion as of last night. 36% decline in margin balances outstanding. we think the rough equilibrium level would be around 1 trillion. that would be commensurate with the level we have got here in the u.s. in round numbers, another 30% decline. given the rapidity with which that has happened, 2.3 to 1.4.

this could be something that happens in the next five days or two weeks. we are in the phase where we are deleveraging and then a period of range trading and then back with the market. >> have a safe flight back. >> joining us there from goldman sax. >> greece has until the end of the day to submit concrete proposals. great banks remaining closed until monday. our chief international correspondent, michelle caruso-cabrera live in athens with the latest. it is crunch time, michelle. >> it certainly is sarah. the 60 euros per day, the greek banking association saying they have enough cash in the atms until monday. they don't suggest what happens after that. capital controls of all different forms are affecting all the different greek businesses that we have talked to. if there are importers or exporters. there are border controls that

greeks cannot take 1,000 euros out of the country if they leave the country. pretty tough for them because their xred it cards don't work overseas if it is from a greek bank. we spent a lot of time with a group of individuals running start-ups, doing things here. weather sites. a lot of greek entrepreneurs here. it is not quite silicon valley over at a place called technopolis. they admire the silicon valley start-up nature of the united states. the particular frustration for them is their inability to pay for their hosting on places the cloud services provide by amazon or microsoft google. the fact is they are so concerned about a grexit. take a listen to this guy. >> we have to see what will happen and carry on with our

lives with drachma or with nothing. we have nothing in our pockets right now. >> hopefully, we will make for our kids. he make a joke euro drama, feta we are going to survive. >> feta would be a good name for the creek currency. michelle joining us live. joining us the former u.s. ambassador to greece charlie reese, vice-president with the rand corporation. ambassador, good morning. >> good morning. we are up 159 points on the dow. it would seem the markets are fairly bullish even though we have this sunday deadline. why is that do you think?

>> there are a number of shoots that will not give you complete confident there will be a deal by sunday. on the greek side it appears the referendum outcome, the no the big no has actually seemed to have given the prime minister tsipras, some flexibility. the opposition has come around and is not opposing him quite so robustly and one can envisage a package they can support. he can be less concerned about his hard left flat form. you see the head of that part of the party in the financial terms announcing that as a good deal. the greeks have made several concessions from the position they took last week.

one says they had to have date sustainability up front. they are now willing to postpone that a little bit. there are some hopeful signs on the greek side. on the european side, the closer with he get to an actual grexit that is concentrated on the mind. you have seen the french come out quite strongly for an arrangement and the imf report last thursday saying the debt situation is unsustainable. it has given some cover to think clearly about what the next steps are. >> on the one hand you have greeks expecting and wanting a hair cut and then they need a hair cut and angela merkel the traditional hair cut is out of

the question for me, the same way as it was on tuesday. is that semantics on her part or a stumbling block in your view? >> i think obviously the final attitude of the german government is critical to the solution. it may not be a hair cut in the way that the 2012 deal that affected private creditors was. it may be a rescheduling of short-term obl gaegss putting them to the back end of these ecb and other obligations that the creaks have tole european union, effect of making the debt more sustainable. there are a number of ways this can be packaged. when i talked about that. in germany, i think that the situation has gotten tougher.

the social democrats have become more against new liberal conditions for the greeks. so she probably has the toughest political position. >> other sides are starting to talk about the value of the deal and avoiding a grexit. >> we are running short on time. i am just trying to game out what exactly will happen this weekend. what if the greeks do present, as we are led to believe, a credible working plan something that the european leaders can look at and discuss but it doesn't go far enough. then what happens? do you think they will give them extra time and have another deadline. they have nchluntil july 20th to pay back the ecb. >> when you look at deadlines, often a fudge is the best solution. it may be there is a fudge if there are serious conversations

going on. there may be a little bit of liberally liberalization. that would allow negotiations to continue for the best part of next week. probably they will require parliament to vote by the end of next week. >> thanks very much for joining us. t-mobile adding more than 2 million customers in q-2, announcing calls between the u.s., mexico and canada are included in t-mobile plans. we're going to talk to john legere. we are almost 100 points off the high. dow is up 158. we'll be right back.

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i'm jackie deangelis reporting. the natural gas storage report. an eninjection took us to 2.66 where we are trading now. to put it in perspective last

year 94 billion cubic feet. total stocks 34% more than last year. natural gas prices are low. last week demand fell because the east coast saw temperatures fall off a little bit. it was a little steam krer this week. it is that total stock traders are watching. >> here is your news update this morning. negotiations over iran's nuclear talks continue in vienna. an iranian official saying it is unlikely there will be an agreement today. >> commuters in london are facing travel misery as the city's entire underground network has been shut down by strikes. services were halted after a

walkout of staff about working conditions. south carolina's house has approved taking down the confederate flag from the capital grounds in columbia. the final 94-4 vote occurred this morning. the bill heads to governor nikki haley. she is expected to sign it quickly. new york sports fans are buzzing over new york giants jason pierre-paul, his decision to amputate his right index finger as a result of the fourth of july incident. he made that decision. he has yet to sign his contract from the team. back to squawk. u.s. stocks are in rebound this morning. the dow up about 150 points. here at the new york stock exchange, things are running smoothly less than 24 hours

after the technical glitch halted trading. joining us now, harvey pit, founder and ceo of calorama partners. good morning harvey. >> good morning. >> technical glitches happen. obviously, it is a more interconnected, complex system when it comes to exchanges. was there anything the sec could have done to he prevent this from happening? >> i don't think the ish crew is with the regulators but with the exchanges. my mother had a mantra. she said sometimes even the inevitable occurs. in this case it proofs that fact. exchanges have to be prepared for this. the real issue is how prepared was the nyse and how effective were the steps they took. that's the issue. >> based on what you can tell

and we heard from thomas barley a few times on cnbc how did the nyse handle the problem? >> i don't think they handled tas well as they should have been able to. they didn't put out immediate information about what the probable causes were of the outage. that led people to speculate that maybe there was terrorist activity involved. this deprives the markets of confidence and has to be avoided. >> when they finally did tell people the markets would be up they announced everything on twitter. a rather curious choice for a public company. twitter is fine. there needed to be a much broader dim sem nation and release of information. >> they did signal they were in touch with the sec and the white house and a number of other regulatory agencies about the problem to clear up any

speculation about nefarious activity or hacks. >> there is usually and i had this experience in 2001 when the terrorist attacks took down the new york stock exchange. there is usually immediate contact and then continuous contact. what is most important is to alay the concerns for the investing public. to tell them the situation is under control. it will be normalized and to keep them informed. that was somewhat lacking in this situation. >> one of the basic problems we have here is that exchanges are really nowhere as near profitable as they used to be. the new york stock exchange has a profile and an importance in this country. the public belies the underlying profitable. the sec's rule that allows others to set up. many of them primarily to pay

for the order flow that they want to take away from other changes so the high frequency traders can dance all over the model. as volumes decline generally, we double down on those exchanges in terms of profitability and funding and perhaps best practice. >> i think there are a couple of points that you raise which are worth really focusing on. the first is that the exchanges are now for profit has changed the dynamic, that is of concern. the sec has taken what i consider to be a very constructive step and has announced a thorough review of the markets and how stocks are being traded. that's very valuable. up to now, things have progressed sort of ad hoc and piecemeal without any

overarching plan. finally, i would say the problems here aren't with regulations or regulators. boeing the regulated, the exchanges, and the regulator, have the same outlook here. no one wants to see a shutdown of trading. >> when you have a relatively not terribly profitable exchange with a problem like this immediately, management is going to look to its own liability. it is more easy to shut down the exchange and delay it and look at the orders and make sure nobody is going to sue you to high heaven and resume trade down the lib. in years gone by they would open it and let the system what it has to do in the national interest. >> here the issue really is what steps did the new york stocks exchange take to minimize the damage. how well did they test their software updates, which is what they attribute all of this to

and what steps should have been taken to preserve public confidence. those are the relevant issues. the issues aren't whether we need more regulation but whether the regulations that exist in common business sense were applied here. it doesn't appear that they were. >> is the message that the trading was safe and that people could go about their business and continue trading and there was other ways to do that and the fragmentation has been a positive where as ten years ago, that might not have happened. >> i think it is not an answer to say, there are other venues in which the same shares could have been traded. investors put trades in and many of them specified a predominant market to which they want their trades routed. the fact that there are other venues doesn't detract from the

fact that this deprives the market marketplace as a whole of public confidence. >> got it. harvey thank you very much. coming up the t-mobile ceo, john legere, will be live to talk about those new big subscribe numbers. "squawk on the street" will be right back.

we are lucky to have john legere here. the t-mobile ceo is here. john, i have to ask you. where are all these people flocking from? i have seen some verizon ads that say the great migration is away from you. >> those birds were flying from verizon and they were landing in sprint and their little tiny bird phones weren't working. because we announced 2.1 million net customers additions. what that is nine quarters in a row. nine in a row over 1 million. four of the last six over 2 million. we had 1 million post paid subscriber additions and 760,000 post-paid nets. churn was 1.3% announced our record high. i didn't announce with you ibut i will announce here. they stayed the same 1.9 with

sprint for eight quarters in a row, over 2.1. they are coming from everybody. >> it is hard to get an exact number from sprint. are you the third largest carrier now? >> sprint we passed them four quarters ago if you don't count the customers that aren't customers anymore. >> nine quarters in a row, we add 1 million. either we pass them or we don't pass them which they do really well not at our expense. i'm cool with that. i'm pretty sure the yellow school bus is in the back. >> school bus. >> what we did today, guys is the reason i release subs in march of 2013 i announced the first of nine carrier moves. i said i'm going to amp them up this summer. last week, i amped up on carrier two. i announced a jump on demand

program. for $15 a month, you can get an iphone 6 and upgrade three times a day. today, i umped and made canada mexico and the u.s. all the same as going from new york to new jersey, everything. if you have an unlimited data plan here you get unlimited data in lte, mexico and canada. why did i do this? do you have at&t. >> we have verizon. you talked about at&t. they were talking about a mexico u.s. >> when i go to my mexican house, it is nice and hot. if you currently have at&t you have to think about it pay $35 to get the right to pay $280 to use your phone the same and pay 10,000 if you don't. what #randall he took $4

billion to buy loser cell and nextel and he announced once these acquisitions are done he will be the first to have seamless calling between mexico and the united states. my message for randall is you are not the first. you are not the only. i threw canada in. most importantly, when president trump puts up that wall blocking mexico you might not be able to go back and forth but your phones are going to work flawlessly. >> you have spent a little time talking about sprent as a competitor. i did want to get back to something that occurred recent will i dlly. he said your cheap misleading imitation is a joke. you trick people to believe they have a $15 iphone lease payment when it is not true. they can upgrade to 3 x but the price goes up $27 when you do.

he said you say one thing and behave completely differently. >> my response to marcelo claure, this is diving in the deep end of the pool. marcelo should stay in the deep end of the kiddy pool. my response is are you mad, bro? to which i was called ingenious. the past two weeks, marcelo has done away with iphone. he has launched in with david beckham, did an imitation two for 100. july 1st, another quarter. i tli it was 2:00hink it was 2:00 in the morning. he might have been on the twitter when he shouldn't have.

i did respond to him. my responses were first of all, i think it is cute you follow me on twitter and that you are trying to use some of the approaches i do but there are no misleading items. what he was really missed about is i announced jump on demand and had a lease component in it. people loved the offer. marcelo said come on i announced that a while ago, me me me. customers don't care. they like what we are doing. >> you come on our air last time we were out in san francisco. you call verizon and at&t dumb and dumber. is there a point which you degrade the role of the ceo? >> hold on. find anybody that questions my operational ability to run a company. i have a 96% rating in the favor ability of ceos. don't be confused. this appearance means i know how to run a business and align people and execute.

i am fighting. i talk speak, and behave like my customers, and employees. if i am degrading the weddings and funerals down into more aggressive speak on behalf of your company. i don't want to be that. >> your social media strategy as we know has also been extraordinary. i watched your video this morning. i did notice during the course of it you were talking about dumb and dumber again. then, you mentioned something that jumped out at me. you said competitors can partner up. why did you say that? >> here is what happened. at&t wanted to ultimately do something in mexico. they did what monolithic companies do. they take tons of money off the balance sheet, try to do something exclusive. the second they did that all i did was fly to mexico and canada and ask the biggest companies

there, hey, what do you say we do that? why don't you and i do that together, tomorrow before they do. that's the same idea. many times when world of content goes to the internet. the internet is going mobile. which means that everybody in any piece of that spectrum is going to have to figure out how to get all of their content media, video, to subscribers. i do a piece of that very well. if somebody uses their balance sheet to try to do the whole thing, it opens up all the innovation space to the others to come together. >> we're dancing around one issue and think we all have problems with. i want to clarify the problems i know typically i would say how about the food fight, is it becoming, not becoming? here we've got another guy, ceo criticizing but in the end, t-mobile is up 44%. the rest are down or flat. and i regard that as proof of what you're doing because that's the world i'm in it's proof.

i don't want to say, i saw you coming and i want to say i'm excited to see john ledger if your stock with down 40%, i would say get the heck off the show. my degrading comment was this i want to give marcello credit for swinging the bat. but it was a swing and a miss and i attached a re/code article that said it was the dumbest thing that happened. >> john before we let you go we need to ask you about charlieringen andcharlie ering ergen. "the wall street journal" reported that were you deep in the talks. i walked that back but you know in there have been conversations between your majority-owned deutsche-tel and charlie ergen. content going to the internet the internet going mobile.

your comments about us and dish were that john and charlie didn't say anything negative about each other. >> we played the tape from both of you. >> here's what i say -- this guy has the mother lode of spectrum. i run a wireless company, that guy is holding a pile of spectrum. am i interested? yeah. he's also got a dying satellite business that would need to be fixed or moved. he's got some rights to content. think it's okay. is it the only thing i could do? no come on that's whole spectrum of partnerships in that array of what can take place. >> you need the spectrum you know you do. >> how about the 700-band spectrum i got that covers 190 million pops i covered 187, between now and the end of the year i'm going to add a million square miles of coverage in those square states in the middle and i'll have 300 million pops of lte. when you get to the medium term david, we awe need spectrum. i've got good spectrum mid-band i need the low band. the auctions are coming. you go out five years, everybody

needs spectrum. you got to skate to where the puck is going. i need more than just spectrum. do i like that? yeah, but we could keep doing other things after as well. >> we're out of time we could go forever. >> charlie ergen -- >> a small bottle of poland spring water. >> the dead satellite business, a lot of spectrum. >> knows, that's why he's bought all the spectrum. >> john, thaurj. please come back. >> john legere t-mobile. the dow is up 157, we have a although to make up from yesterday's decline of 260 points. the financials best performer in the s&p. >> a top gainer walgreen's in the wake of the beat and raise as they start the cost-cutting operation that could close up to 200 stores. hanging on to their ceo, the guy that came in as a temporary now being made permanent. >> pepsi reported earnings early

in the earnings season. this morning with a beat on the bottom line a beat on the top line. raising earnings per share guidance losing most of the gains, we saw it up 2.5%. with that we'll send it over to rick santelli in chicago at the cme group. >> good morning, thank you, sarah, i'd like to welcome my thursday morning guest, andy brenner. >> rick, thanks for having me a pleasure to see you. >> listen don't hold back now, i'm going to give you a paraphrased quote that i've read on numerous blogs over the next 24-36 hours. secretary of the treasury jack lew, christine lagarde from the imf saying basically they think the best way to proceed here would be to grant meaningful debt relief to greece. do you have any comments on that? >> well rick i think what's

going to happen is angela merkel doesn't have the ability to get the debt relief similar to what they had in 2012. with the private debt. i think what you're going to see is you're going to see an extension of the payments of greece. i think you've got about a 15% chance of getting a deal done this sunday 35% chance of getting it done by july 20th. and a 50% chance by august 3rd when all the european bankers want to go on vacation. i think a deal going to happen. i think, i agree with everything you just said i didn't mean to interrupt. here's more of the direction i was thinking of going. you remember the familiarous quote about running out of other people's money. hasn't this take an pickety-split rise up to the notion it's not even about spending other people's money any more. in essence, it's about giving it away to some extent. i understand the treasury secretary wants things to go on smoothly. but shouldn't this be a choice

for the german people? all of this seems to be dealing with bureaucrats and government officials. i liked when greece had a referendum. think the people need to speak. is there ever any talk about meaningful solutions? >> well i think the first thing you have to do is get the greeks back. get their economy operational. get them back to the banks. think the reason the u.s. and the secretary of treasury are so involved has to do with nato and keeping the russians at bay. think there's a lot that hasn't been said and that's why the u.s. is so involved here. so -- >> they're going to draw much thicker line between greece and putin than the ukraine and puten? >> that's correct. i think the other thing is they're very concerned about opening up pandora's box. we've talked about a lehman moment. we haven't seen it. then again, we haven't seen the exit of greece either. it looks like greece is going to stay in you knock greece out, portugal can't be far behind and

then spain and italy. once you have a turmoil in the euro, you open up a lot of wounds that you do not know how it's going to end. so i think they want to keep greece in. >> 15 seconds, answer the following, if the united states never did any qe at all, do you think we'd have the same impression of what's going on with china, trying to control their markets, japan trying to control their markets and some of the issues in europe? final answer. >> china is an interesting situation, they've lost a lot of money the last three weeks. i think the qe in china than qe in the u.s. but at end of the day, the think the feds are going to raise rates in september. i think it's 100%. it's a slam-dunk deal. even though it's only 20% in the cards right now. >> got you, andy thank you for taking the time. post 9, it's all yours. >> thank you very much rick santelli in chicago. coming up on cnbc could adam bain be the next ceo of twitter? "squawk alley" discuss it is after this break.

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