monday july 20th "squawk box" starts now. >> announcer: live from new york this is "squawk box." good morning, i'm andrew ross sorkin along with joe kernin kernin. before we begin, check out this story, exploding on social media. it's unbelievably terrifying. momentsal a pro surfing event yesterday. you're not going to believe this. in south africa it was caught on camera. a shark attacked one of the biggest sport's stars live on television. nick fanning, we saw it as the shark knocked him off his board. pulled him under by his leg rope. he ran away and swam for his life, more on this story in just a bit. my wife and i watched i think eye on youtube media ten times. >> it's unbelievable. first, before we get going,

let's take a quick look at the markets after a long weekend -- not after a long weekend. a week. nasdaq up 25 points and the s&p up. >> a longer weekend than usual. >> it was longer for me because i wasn't here friday. here are the big stories. greek banks reopening three weeks after they close. capital controls remain in place including limits on withdrawals and no word yet on when the stock market might reopen. although some are trying to play this with the etf and trades here. increases in value and a tax agreed to on the new bailout terms have now taken effect on things like coffee and tea. we'll hear more from michelle caruso-cabrera pulling double duty. let's take a look at asia. it was another volatile session.

the shanghai stocks closing higher. but closed up just shy of 1%. there have been a media report earlier in the session suggesting the government was studying how to end its bailout. we'll continue to watch the ongoing volatility in china. every day there seems to be a new story there. also check out gold. stunning action. trading below $1100, since the first time since 2010 joe, people were asking if there was a fast finger trade taking place. there were 5 tons put on the market at once. >> last week we said are we going to see below $1100? we already talked at possibility of seeing one zero. >> but to see that in such a

short period of time just looking at the fed chart -- >> and plus when you get to a certain level, that's when all of that has stopped. it's a hit and then down we go. but whether this is indicating a lower grid mark and tweeting this morning indicating deflationary figure re-emerging globally with a lot of comphodaut fot of commodity it's. >> some stocks to watch. barclays reportedly plans to cut more than 30,000 jobs in two years. is this according to the times of london. the bank fired the ceo. and then the deal lockheed martin is reportedly agreeing to buy united technologies kasikorsky business.

the price tag is 8 billion. sa korikorsky known for the black hawk helicopter. and lockheed makes a lot of things. and the ceo will talk about why sikorsky wasn't manage that utx wants to keep in its portfolio. how many companies are going to buy it. >> with the helicopter -- you saw -- you saw the rare metals i think it may have been -- i'm not sure lesley stahl on "60 minutes," anything you want to build, they already know all about, mostly defense stuff, but now they own the world here if the president sleeps -- >> that's the point, he probably wouldn't sleep very well there.

>> of course we never -- other deal news syngenta reportedly planning a series of meetings monsanto offering to buy sinyngenta $45 billion. ceo hugh grant, not the actor reports on it. >> i like friendly deals so you know, we need the collaboration. and there's a lot of miles to travel that this one. i'd like to talk to a real person across a real table. so we've got work to do. >> that is a strong accent. wow.

>> friday, i said -- when i was leaving, i said i hope you do the "squawk box" what you did for -- >> see, i had -- that's almost funny, almost. >> that is funny. what was the recession to that? >> he liked and he laughed and goes -- yeah, that's it. syngenta's board has posted -- in hollywood deal news owners of miramax reportedly exploring a sale of the company. the company include goodwill hunting and pulp fiction. reports say it could go for as much as $1 billion. we also have a busy week ahead in earnings central. morgan standingley is the company

to watch. this morning, we'll hear from ibm after the bell. hasbro and halliburton reporting as well. let's check the markets right now, we would have a positive open as indicated in earlier trading. s&p up by 3 points. down by 27. nasdaq up by 5, of course. that is coming on the back of a day on friday when we saw nasdaq hitting a record high. we'll see if that can continue. much of that will hinge on what we're seeing in europe. just positive today as we're getting comments out of german chancellor merkel or whether or not the deal will be successful. you can see what the comments are doing to the markets. largely in the green. in asia let's take a look at where we're trading there. we talked china earlier on.

hong kong and shanghai and australia up in the green. oil, as we should mention, wti has been neg negative. and brent is up. the ten-year we're seeing about a one basis point rise in the yield there to about 2.36. and the dollar actually has been up today. a fractionally we're watching the euro as well. 1.08 is where it is against the dollar. >> when i checked the ten-year this morning on the way in it has all the european sovereigns there as well. we're way above that. almost a point. i mean they're down in 1.6, 1.7 area which makes you wonder. this is all since september. so what's happening in gold today.

>> yeah. >> yellen said they are, basically. >> yeah, they are. they're doing a quarter, i don't care what -- >> we'll see her at sometime. she did argue for doing it sooner and more gradually is what she was saying. >> because i don't talk about what they're going to do. i talk about what they should do. >> okay. is there they should definitely do a quarter. >> a quarter is not going to kill you. >> get it started and they've even skipped some. let's see how it goes. get a positive month, something other than zero. >> eye werewith the imf and the word bank saying i told you so you don't think that's extra pressure until december at the very least? >> watching the imf and world bank i think we got to bring back my man, straus con. >> he was good.

>> thank you. why, what's going on in your -- greece continues to delineate the global market headlines. banks are opening today. very limited functionality. michelle caruso-cabrera is here. made her way back from athens in our washington bureau this morning. i was excited that you're going to be here -- aren't you going to be onsite with us? >> yes, i'm onsite with you. joe. looking forward to it. >> i don't know what's going behind the scenes. did you want to come home a little earlier, is there some things going on there? >> i have been away a month, joe. >> months go fast. i remember talking about when you were going to go. then you went and then you never came back? >> i know the boss was trying to get me to go two weeks earlier.

once we're there, we're going to be there a long time so let's hold up. >> right. you know all the kabuki dancing and here we are where we knew weed be most likely. >> and proof that all stories merge into one, joe, dominique strauss-kahn is going to influence the cuban government. >> love him or hate him, he was a good head of the imf. >> good at a lot of things. anyway what's the headlines? >> greece. >> you know we got to go you got to talk about this other stuff. did you ever have to wait in an atm line you couldn't tell us when i asked you from here? >> no we brought a lot of cash with us, knowing that. >> what in the lining of your suitcase or anything? >> no, just carrying it. we'd been in cyprus without cash

and it was a real problem. we weren't going to make that mistake. greece banks reopen today, the functionality of the banks is extremely crippled. it used to be you could take out 60 euros now 420 euros in a week. what's the difference if you can take out 420 at once if your account. the elderly we watch struggle with inputting pins in atms, et cetera. and also people who had kept cash inside the safety deposit boxes. but you're still not abe to transfer money overseas which is a dramatic thing for greece. if you're a company relying on imports as they do you can still not overpay your suppliers. all of that restriction continues. because of that inability to transfer money overseas that means that the greek stock market could not function as it should. stocks don't trade, bonds don't

trade. angela merkel before going on vacation was at the annual conference before doing the summer holiday. she indicated no haircut for greece although hinted at the possibility of extending maturities and lowering interest rates. only when greece negotiates the bailout to the first successful review with the apple mentioned imf, i want you to have one take away from this report. the minute angela merkel says it's okay for greece to get a haircut, greece is done for. greece will be leaving the euro. remember within the german mind-set, you cannot get a haircut. you cannot get debt forgiveness. you can take longer to pay your brethren back but a haircut is not permitted. the reason the finance minister is saying greece needs a haircut

is because he wants greece to leave the euro. so she's committed to keeping greece in the euro that's why she's say nothing classical haircut at this point. >> wow, we're going to talk to our news maker of the hour joining us former ecb president jean claus troshet. i think we thought this was the most likely outcome at this point, mr. president. and at this point, we don't need a haircut, but if you were to do some zero coupon 100-year extension, that the just like a haircut, isn't there? >> yes i think we're really contemplating on it. because it's not political reasons. it's extremely difficult. so many many government and

parliament in europe lose money. losing money. and how the imf is very keen on not losing money at all. so that does not prevent and having said that that you mention even more the duration of the loan. in that that would be considerable help. additional help. i think we should not contemplate too much on the issue which is of course very very, spicy. but the reality of the situation is to implement the task. and that is absolutely key. >> right. and might be the one positive outcome. do you think if some of the structural reforms are put in that greece will be in a better

position in the next couple of years? >> first of all, i hate to think that there are a lot of good things in what has been agreed upon. the idea that everything should be accelerated is of extreme importance. also let's remember before the change with the cause of action of greece the international community agreed upon the fact that greece was back to growth the imf established still in april projections that we're giving greece 2.5% of growth this year. and 2.7% next year. so a lot has been lost in the, say, hesitation of greece during the last six months. but i hope very much that if that is we could be become to present day figures, after

having really unfortunate time and also growth due to the adaptations. >> with now some of the comments mr. schauble and i just wonder if you think there were certain parts of the merkel administration that really didn't want an exit and thought that that was probably the best outcome? or was that in your view, i don't know if you use the term good cop/bad cop, was that just to prove the point that they were serious? or do you think there were certain contingencies that wanted greece out. >> first of all, in any democracy democracies, you have varying sensitivities. since the very beginning of the debt crisis i could see a number of countries including germany, you had the sentiment

that some countries should leave. and it was certainly not shared by the government. certainly not shared by president schauble but it was very much in the air of the parliament because it was very much in the air of public debate. not to mention the german party. of course you had this success of stage. and the successes and that we should think again that greece was the last one to succeed because it started from a low point. with sensitivity, coming from athens the kind all in a diplomatic situation. there were some that came from

athens and did an additional sensitivity. all taken into account, the position of the german government and the position that made sense. and in disguise and the decision which has been taken which is obviously a decision to maintain that in the euro. and to expect from these, that these would be back on its feet and back to growth and job creation which is the -- >> okay. mr. trichet, we appreciate your time today. we will continue to talk to you about this as this story never ends to some degree. thank you. when we come back donald trump making waves again this weekend. this time for comments about john mccain's war record and the backlash now coming from his own party. we're going to talk about it when we return. but first, here's a look

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welcome backs to "squawk box" this morning. a major step forward in the fall in the relationship between the u.s. and cuba. the cuban mission in washington,

d.c. will officially become the embassy. the american embassy will also open today in havana. it will be the first time in 54 years that respective embassies have been reopened in either country. meantime to political news this morning. donald trump refusing to apologize for his comments that he made over the weekend about senator john mccain's military service. more from washington. good morning, john. >> good morning, andrew. >> you read it, you turn on the tv, you'd think it was over but some people would say it's over before it began. so where are we? >> well, look, donald trump has managed to seize the spotlight in the race for a few weeks now. he continues to do that with the comments he made about john mccain. and the question is whether he has jumped the shark and soen the seeds of his own.

if you ever thought that donald trump had a serious chance of winning the nomination. he's not a politician but he is a chairman who has a knack for drawing that and instinct to respond when he got to a forum in iowa. this is where the republican field which is going to hold him back in the form of alienating donald trump. >> now, you've got "the wall street journal," a terribly critical column this morning, trump and his apologists applauding him when the is death knell? if he's going to get out when would he get out? >> i suspect he would get out if he suspected the whole thing was futile. as long as his poll numbers are

where they are, which is second place nationally, i can't imagine that he would pause himself to leave the race. it's very small staff. he's doing it with his own money. he's got plenty of money going around. he's spending half the time on campaign, half the time on business. everybody else more than a full-time deal. if the numbers start going down -- you know, there usually is a moment in an a candidate like him, john mccain in the last cycle, where the celebrity and the attention sort of builds to a peak and then the air goes out of the balloon? is the balloon now hurt and the air is in the process of going out? we'll find that out in the next couple of weeks. >> john we were asking about his comments on immigration. you point out that his poll numbers, even given those comments were improbable. but when do we get an indication

that these comments have some sort of resonance outside the beltway? do you see it impactinging him inghim in the polls? >> well there's a segment of the republican party that does like very much the things that he was saying about immigrants. talking about, in the republican party, about john mccain not as john mccain the political figure but john mccain the veteran that spent five years in captivity, that's a different thing and has the potential for alienating some of those people who cheer him on immigration. we've got a couple weeks until the first debate which will take place on fox in early august. by all accounts donald trump would be in that debate. he qualifies for it bit poll standings. as he's not just within the top ten. he's within the top two.

so i suspect that moment might be the first time when a large audience sees him interacting on a big stage with other candidates. and how he treat them and will determine how voters react at least initially over the first month after these comments. >> there's plenty that you could have said probably about john mccain john about i don't know, about the way the election is going. he said some of that too. >> he did. but the weird -- i remember the selection, it was almost a selection that looked like he felt like he didn't have a chance and got elected on a hail mary pass. so you could do a lot of that stuff. >> right. >> and you could spend five hours in a political camp and --

did you serve, john? >> i did not. >> anybody that serves i can't even fathom that. so that's a tough one. >> well as bobby jindal said yesterday when donald trump spends five years in a camp he can comment. >> we're not going to cover this anymore and then he does that -- there it is, the second story in the huffington post. >> didn't he put it in the entertainment section again? i think they put it under the entertainment banner. >> that's so stupid. there's about three democrats -- >> bernie sanders shouldn't be under the entertainment section of "the new york times." coming up, getting ready for vacation thank you john but don't want to leave the four-legged members of the family home alone new york's jfk has a solution. details on a luxury animal

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ibm analytics helps one hundred thousand officers work smarter every day. welcome back to "squawk box." a couple years ago, you guys might remember this but at a benefit for a bunch of wall street people the robin hood foundation the comedian john oliver was said the single biggest middle finger to a weak

global economy is the fact that u.s. consumers spend over $4 million on costumes for their pets. >> for halloween. >> that was $48 million that jfk is reportedly spending on a luxury terminal for animals. it's going to be called the ark, after noah's ark, from the niebl. bible. oh, that's so cute. 20,000 square feet just for dogs. it's obviously going to have housing capabilities for cattle for birds, for horses. but for the dogs it's going to have flat scene tvs. going to be run by a company called paradise for cause. i don't know what zoa does when you travel -- >> zoa is the female german shepherd. plays a lot, dog parks.

congo, the designer dog, he's very smart. he is coming in august. he's under the seat. >> does have zahra go? >> zahra goes with a friend who loves dogs. >> and zahra is not going to the ark? >> well they don't stay at the ark. >> it sounds like it might be primarily for transportation of animals. or if you're coming from an international get nation. >> it's not a boarding place. >> i don't know. i don't know. and i -- what's with the flat screen? i've never seen either dog watch the tv. >> there are channels for -- >> yeah but do they watch? >> supposedly.

>> it's an unused cargo terminal that's being demolished. >> but the not a kennel. you just don't leave them. >> it sounds like something you drop the animals that are riding in other parts of planes than a consumer plane. >> all right. i'm talking about under armour we're going to talk to dave gibbs about the british open. the final round is today. jordan spieth kind of cool jordan spieth who is already a veteran of two majors. you know he wears like 18 under arm our logos. study suddenly the guy in the lead at minus 12 is an amateur. and he was mistaken again and again for jordan spieth by a lot of the fans over in scotland because -- >> because he has had all the under armour on. >> he doesn't look like jordan spieth. but people not that familiar saw

under armour you got at guy at minus 12 he's 22. how can an amateur do this at 22? we'll talk about this. so just doubled the number on this. kevin plank, why do you sponsor this kid when he wasn't even the number one player? >> but that's been under arm ahour's whole strategy to do more sponsorships. >> i don't know how you figure out to make it -- how do you figure out, you couldn't even tell, the man that was leading the -- >> that's right. >> do you know who the last amateur to be leading, or maybe to win, i think, was bobby jones in the '20s. and the last person to win the first three majors too, i think

was hogan. so this is so awesome what's happening at the open. it's nothing that's really going to like 9:00. so don't change the channel now. >> a havei have a quick story. a great new study came out yesterday from johns hopkins, there may be markers. looks like there are actually markers they have discovered six years out there to tell you in advance that you have this. and maybe get you on drugs earlier. some people did not even know it. but to the extent that we now have -- >> how much of a difference does six years -- >> six years? believe it i've seen it a

couple times in our family if you could get out six years ahead. even if you could get an extra two or three years if you have a better sense of what's going on. >> it's a lot different than for somebody in their 90s that gets alzheimer's. like parkinson's, the heartbreaking. >> would you want to know? >> if i was going to be how old? if i was going to be 60 or 70 yeah? >> let's say late 60s, somebody says to you, you know what this is going to happen? >> i think by then by the time i'm in my late 60s, i think we'll be much better at understanding -- >> what about today? >> would i want to know today? yeah, i'd want to know. i think there are things that you can do just -- you know a

lot of word games. >> probably would do a lot of word games. >> spar with you, yeah. >> in the meantime when we come back a game of ceo says. new finds in a major survey of corporate leaders with everything from firing finance to expectations. we'll talk about that in just a moment. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long

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xçó0 a new survey of ceos just out this morning. talking to more than 1200 executives on economic outlook, growth and concerns. and the global chairman of cpmg.

john, you do the study every year. how is this year's finding different than last year? >> well we can two things differently, we broadened not just ceos, but ceos around the world. we have short-term outlook. confidence is up looking around the world, compared to last year, sing the strength and increased confidence of ceos around the world is really interesting. >> but what's interesting to me is that when you look at the optimists on the economy, on growth, on hiring you see 69% of ceos in europe optimistic 66% in asia. only 52% in the u.s. why do you think the u.s. executives are less optimistic than those abroad? >> well we've got to be careful with that what we're really asking is compared to a year ago, are you more confident on

where the economy is going. frankly, the optimism in the u.s. has been up for a couple of years. i think what we're seeing in those percentages is just a bigger jump outside of the u.s. we have europe, a year ago, when you look back, kraefceos were despondent of what it used to be. >> and what about concerns? cybersecurity just mentioned, but the dollar is what we care most about. >> it's interesting when you ask ceos what are the biggest concerns that they're focused on it's growth. it's geographic expansion. and certainly, regulatory which we talked about before is high on ceos lists. i think the surprising thing is how strongly this concern about

competition in the market place is escalating right now. with ceos ranking as some of the highest concerns about losing countries to other competitors. whether my products are going to be relevant three years from now. and the things that we can do to invest over that period if we're going to stay in the strong position that we are today. that's what they're concerned with talks to ceos in the market. >> how does this had manifest in the market? we can say ceos are optimistic about growth but actually at the level where seeing people do acquisitions because they can't get revenue growth. so how does the optimism actually manifest itself in day to day? >> make no mistake, this is still a really challenging economy to realize both in. while people are confident that the world is getting better growth is hard to come by in a

lot of sectors. so i think when you look at the survey findings ceos are talking about doing certain things but manifest itself. talked about increasing activity. >> do you not think that's an increase in that? >> i think definitely outside of the united states, that's the case. from the u.s. standpoint companies are getting more bullish over the last couple of years and feeling that there are still opportunity to be had. >> if they're as bullish as you're talking about, wouldn't they be making big capital for home business as opposed to the buyout? >> i think that's reflective of how tough it is to realize organic growth. >> is that the reason why kpmg is doing those deals -- you're

speaking of a ceo that's doing a deal now? >> listen i think that was more about expanding in a particular niche area it wasn't as much about expanding revenue. >> they've got revenue coming out of their ears. you don't even need this. >> but, you know andrew to your point, i think what's really heartening about this is the highering. that's projected in this this. it's leading to ceos saying over the next seven or eight year 78% expect to increase hiring most of it significant. half are saying all hiring is 6% to 10%. >> is that going to happen here? >> that's pretty much consistent across the globe. >> can you come up with kpmg stands for? >> it's 6:30 in the morning, i

can still do it. they're the founding partners. coming up dave griggs of the british open is coming up. as we head to break, check out the futures as we lins to bcsc coming to the garden. we've got ticks. be right back.

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wild weather conditions forced the first monday finish since 1988. >> r it was good for me this monday finish. >> this is outstanding. not good for the rest of the country, though. you have to call in sibling. it provided a sick note for all the folks that needed to call in sick today on their own twitter. there it is actually. this is a classic final round in the making. not just jordan spieth. i'm picking him, obviously, i wore him down for today and brought you on the show. >> you did. >> you got an am cure t. first amateur couldn't win since 1930 with it. is unbelievable. fine 27 the last time somebody led after three rounds also bobby jones an amateur. >> watching jordan spieth at

this point. i'm not going to say it's boring. but he hits the drives so consistently. he hits his irons so consistently well. it makes the course look almost like it's not difficult. you see phil tiger. >> what you are seeing there is the difference two spieth right now the puter. he had ten fewer putts in round 38 hand the 2. he got mad and birdied, birdied, birdied. a lot of players get mad, they do the opposite. he plays well angry and gets bettered and better as the pressure comes on. >> tom watson plays angry? >> he admitted that. i never seen a golfer like ha. >> have you seen a millisecond of this tournament? >> i have. >> will you go home and sigh the leaders tee off at 9:20? >> we saw a summary on sports

center. >> does that count? >> no. >> again, i like spieth. but there is louis oosthuizen who won at st. andrews, he has been unbelievable. jason day was the 54 leader at the u.s. open and the british open. >> he's so cool. >> if jordan doesn't pull it out. i'd like to see jason day. >> 27-years-old suffered from vertigo at the open. >> he had an inner ear thing. >> an interesting financial note on this one you could have steve day, oosthuizen finishing second because an am cure cannot win the money. so if wall dunn this am cure wins, the money goes to the second place golfer for $1.78 million. >> you heard a statistic at uab. he was sort of average. >> the best round is 67. he posted a 66 in the third round of the open.

again, you look at the difference between this kid who is actually older than spieth and dustin johnson. it's the mental edge this kid has, he's comfortable. confident. he wasn't panicked. >> you see the greats. how does this young am cure do it? he is going up against the likes of jordan spieth. who is younger? >> unbelievable. >> and you know, there are bunkers in the middle of the fairway. terrible. or you got to play it backwards. >> look the smythe slam is coming into focus. he could be the first to ever win the grand slam, ben hogan won in '53, didn't play because the timing didn't work out in that era. >> you want to talk about david, who is one of my part first at the 18th this year. david did you value, the nicest. >> he had a reputation at one point. i didn't know him ten. the greatest guy to play with

nicest guy. >> outstanding. >> to put himself if contention at one point until everyone went out there and put up low numbers him speaking of low numbers, there are big scores the day before, didn't he have to birdie 18 to make the cut? >> he did. he did. >> i cannot recall that one. >> you have to get your eyes a little lower on the leader board. >> that's the story. >> easy guy to root for. >> i think he boeing did 17 or suspect, had to come back and dig beep. >> he was off the radar, he was thought to be done in the game of golf. now he's back. >> there are five guys right now fior six under on the course or in the clubhouse. it will take a low number. >> how's the weather? >> it's cool rainy, a little windy, still low scores softening up the green, it will be awesome. >> thank you. >> you look good. >> you didn't shave.

>> coming up when we return we got the top stories, quarter results from morgan stanley, the numbers and instant reaction.

greek banks are back after a three-week shutdown. robert hormack joins us. the return ocuba. diplomatic reeces officially restored. michelle caruso cabrera is there with a live update. lockheed martin agreeing to buy scorecy buycy /* buysikors can i

helicopters. live from the beat of new york city this isin this is "squawk box. >> today becky quick has the day off t. dow opens higher about 17-and-a-half points higher. s&p 500 opens a point-and-a-half higher and nasdaq a point higher. we are watching gold dropping to a five-84 low earlier this morning. it traded below $11 humidity an ounce for the first time since march of 2010. in the meantime, jc morgan? >> morgan stanley coming out with earnings sample the comparable number is 79 cents per share, estimates from analysts were for $74 cents a share. this looks like a beat on the bottom line. on the top line the company is reporting revenues excludeing

adjustments made for debt securities of $9.6 billion. compared to about $9.1 billion. when you look at revenues the only did at that time beat was wealth management. it was inline. can you see morgan standly shares in the premarket up 28 and a third percent. echoing the large cap banks. so far this earnings season, which is better than-than-expected earnings. today, greek banks opening, closed three weeks ago to prevent a financial collapse. limits on withdrawals will remain in place up to 4820 euros in greece they can withdraw. that's in addition to restrictions and wire payments abroad and taxes also take an effect today. duties on food and public transport in greece jumping from 13% to 23%, that of course was a condition of the bailout, with

i is still being negotiated. poly, the u.s. and cuba are formally restoreing ties they will raise over a mansion that will serve as the country's embassy in washington, d.c. that happens around 10:30 a.m. eastern time. a cuban flack was added to the display, just after 48:00 this morning t. u.s. embassy in havana will also open today, john kerry visits next month. >> that is the first time diplomatic relations have been restored. michelle caruso-cabrera is joining us with more on this. lockheed martin has agreed to buy sikroski for more than $8 billion. it's expected to make lockheed

better and expand the sales. the deal is expected to be entered today. they watch for a cash deal if it involves stock, it could be a little more complicated to actually get improved. diplomacy in the headlines drops on iran's nuclear program and a third growing bailout in the next week he is the vice chairman at kissinger associates and former goldman sachs vice chair. he is also a former state department under secretary for economic growth energy and the environment. we can take on a lot of things here. >> let's do greece first. there is a piece in the financial times the past three days talking about the relationship between germany and everybody else now and how much france is upset and portugal is upset and italy is upset just about how this all has gone down, what do you think it means? >> i do think there is a big division if new york germany

and other countries on the same side as german, finland, so vacia. >> they're worse than finland. >> tougher. they're certainly more assertive. they want a tougher deal t. reason is many feel there there is a difficulty they're not getting a lot of money and they want a tough deal t. germans believe in rules. they believe, effect far what's happened is the greeks have constantly gotten money and really fought done what they say they're going to do. on the other hand, they care about portugal? >> they do and i think they should care about france and i think that there is now a real divide between those two countries. >> germany has the stronger voice but they can fought have europe working well if they don't have a seasonal relationship with the french. i think they want europe to hang

towing. other countries following, they don't want a deteriorating europe. they need it it's helpful for them. if you get social deter youration in greece it strengthens the role of russia. it's an unstable part of the world yaempbway when you look at the eastern nation. they want tougher measures on the part of the greece. some of the things they're asking the gross to do like regulatory reform actually benefit the average growing. so i think the germans are trying to play both ends against the middle. they want to have stronger rules. they don't want the growings to leave or to deteriorates. >> now you have the lines both saying maybe it would be a good idea to have a euro zone finance minister does that add a layer of complexity or is that a layer of outcome? >> if you don't have a common fiscal policy which they don't, it's hard to have a single european financing. on the other hand, a greater degree, which the germans and

the french did try to do have a greater degree of fiscal consistency, that is to say you have a budget deficit above 38% of the gdp. it didn't work the french and the germans, themselves weren't always able adhere to that. i think america el have done their best to take the german position but not to appreciative to the extreme out of europe. >> can we switch gears and talk about iran? when we sat down we started a little debate ourselves, with i is you look at the deal at least within 108 to 15 years, we've decide they could become a nuclear power. would you agree with that statement. >> they could, if they knack, do move after ten or european years, the united states still would have many options and it said it is going to be vigilant if they decide to break out afterwards. there is nothing in this agree emthat prevents the united states and other countries from

taking action against them after this period. >> you made the argument over the next five ten years, they can actually the u.s. that is and everybody else will be able to monitor what's going on. >> that's my biggest worry, we will not be able to monitor. >> i would say the monitoring program seems like a whole lot of bunk. >> anywhere anytime. >> it's not -- it may be anywhere but fought any time. >> if i want to inject what they're doing, i have to call you up say, hello, they can appeal this this can go on 20 30 day surface. >> at least. that's my concern is the monitoring process, the access process process. our secretary can change the configuration of your centrifuges, frevenlgs you can't do that quickly. >> even if they play by the rules, haven't we -- are we

delighted? >> none of the guys none of the americans are coming home. not one word about changing their behavior in terms of funding terrorism. >> there are two issues that i have. one is the monitoring issue. i think we're going to have to senator corcoran will have hearings, those hearings americans should listen to and just particularly on the question of monitoring. >> besides a legacy for carrying and -- >> we got, what we did was, they were moving despite all the sanctions, much more closely to a nuclear breakout. >> do you believe that? for years the obama administration said they weren't there. it wasn't going to happen. now all of a sudden they said oh my goodness if two months, if we don't do this. >> i don't know if it's two months or not. they certainly will have less capacity for a period of time than they would have had there been no afwreemt. the second is i worked on the sanctions, it was very hard to get countries to adhere to those

sanctions. at the current moment if the deal doesn't go through, a lot of countries are simply not going to adhere to the sanctions and the sanctions will likely fall apart. the other thing to remember is that the sanctions that enable them to get their $100 billion, they will be able to get the worst is 00 become t. united states will have sanctions except agricultural products and medicine will find it difficult to play with iran. >> they will have $150 billion more they can use to fund terrorists. >> to do a lot of things. to port the revolutionary guard the cud's forms. i have two major concerns. >> to support the assad regime and all the other -- >> this is the question what they have done is strengthen tear role as a regional power because tail have more money to utilize for all things they're doing in the region and the supreme leader kho mr.meney.

>> you got a better deal. >> i don't know if i got a better deal. we're dealing with the five plus one. >> is it worth souring relations with key allies like this in saudi arabia? >> this is where we're going to have to do a lot better not just with israel which we certainly have to do a lot more. ash carter is there today. saudi arabia, the gull countries, this is the big worry i have that is that our allies in the gull the israelis and the other arabs will feel more put upon because they think we have done something without consulting them fully and they think now iran will be in a stronger position. i think it would have been harder to get a better deal at this point. and it juz set back the iranian program. are they properly monitored? i want to see in the hearings. >> are you sure there won't be

67? >> 67? >> you sure there won't be an override, 67? >> i'm not sure. i'm not sure. i think you got two very good senator was will be conducting these hearings. >> what is schumer going to do? >> i suspect he'll be very skeptical of the deal. >> i just wonder if it is -- >> it may not be. i can tell you, though, if it's not approved for congress in effect overrides the president, the other countries are going to go ahead anyway and trade with iran and they will not interfere with sanctions. they will say a deal is reached t. americans didn't adhere. so we're in a difficult position now. all the other countries will move ahead one way or another. we can veto a resolution if we win. >> that will come up before. >> it's like negotiation, selling a house or something and we arrive at a deal and the other family is dancing in the streets, shooting out fire crackers, i know i messed up. someone is that happy about it.

>> let me make a point about that. you see these people in the streets, these are 20 25 30-year-old people. they're not necessarily. >> the whole political gamut. the whole spectrum in iran. too conservatives. >> their hope. >> they're happy here. >> the conservatives. >> who is dancing in israel and saudi arabia. >> let me tell you a point if tehran t. conservatives were not necessarily happy the extreme leader told them go along with the deal. the people in the streets are mostly younger people. they were celebrating largely because they thought this would bring iran back into the global community. these are mostly younger people who want to be a part of the civilized international world. that's what they're hoping for. >> it would be nice if they were to extract it. actually the behavior to make the regime itself civilized in the real world? >> they unfortunately don't have control over the systems. so the demonstrations don't

indicate they made a big victory over the united states in the minds of the young people. they are pro average iranian. the people are deeply passion natalie anti-american, anti-israel. >> the president has a nobel prize every third weekend like visitation rights wouldn't that have been easier? >> we are dealing with a complicated situation here. the question is not getting a perfect deal. we never get a perfect deal. >> your answers are serious. anyway, thank you, bob. a good party alliance. i don't understand. >> i'm waiting. >> i have a kissinger connection him does he just fought watch? >> i don't know. >> you guys have discussed this right? he's on the other side of this? >> he's skeptical. i must say, there are a lot of points i still am fought clear about. >> you wouldn't know it from that interview. >> i told you, exactly, monitoring is the single biggest

problem, if we can't get clear ideas with a high level of ashurngs i feel less confident about the deem. i think we need to have everything hashed out. >> arafat, jimmy carter, right? i'd rather get a real win. >> a golf tournament. >> like a physics. not in economics, god, that's even worse. let's get some news on horizon pharmaceuticals. no one is going to associate you with all that. >> it was fascinating, sitting here. i discovered -- yeah. so horizon is in this unrequieted $3 billion bid. they're coming across with the second quarter results, coming in with revenue at $1872 million for the second quarter, topping analysts estimates of $1838 m raising their full year guidance

for both sales and adjusted ebitda sales up to $6860 to $680 million. so a bid for depo med. they're not interested in. a company saying they are hoping this will give shareholders confidence in the deal. we'll be talking with ceo tim walburt later on with jaim jim cramer. up about 58 on that sekd second quarter preannounced. hoping it gives the shareholders a willing inned to jump in. >> depo med has not only rejected prior overture they put a poison pill in. >> yes, they are stiff arming horizon, saying they are completely not interested and verizon saying they got an overlap in shareholders. people should be interested in this. >> meg, we appreciate you bringing those footballs this morning. we will tune into your interview later on. coming up, the economic data a busy one for earnings whark to watch in the markets this week that's coming up next.

then a live report from walk where the cuban embassy will ap for the first time in decades. and the money mistakes millennials are making the author has financial tips for the young generation. stay tuned. .

stocks coming off a strong week, the nasdaq posting its best week since october thanks, to performance from google. here to weigh in on the marks is anastasia amroso. it's good to see you. we have europe up today, coin up today does that mean the markets can focus on earnings? >> last week was a celebratory week for the market. greece is hopefully behind us. coin which is really important. we seen a turn around in chinese data at least for the month of june. it's now back to janet yellen the feds financial earnings were quite solid last week. >> what was your take away from janet yellen's take away if that is focused on the feds?

joe seems to think a rate hike of 25 basis points is coming in definitely. >> that's what i want i say what i want not what i want to do. >> she did say a rate hike that comes sooner but is more gradual will be understandable. >> i think december is very much on the table. i think what is happening with the economy right now. its not it's lacking strength. there is all the fundamentals sustainable in the u.s., what is fought there is momentum. there is not this simple this acceleration in the economic growth a. perfect example of that is retail sales football last week. retail sales disappointed and if you look at the growth of retail sales with gasoline prices low or unemployment lower, the growth rate is lower than last year. so i think that's the reason why she is saying she has to lift off. the economy is doing better.

>> where do you think that momentum will come from? there are a lot of signs that maybe june was a more positive blitz, that's an indicator in a different direction. >> yeah. >> that is the crucial question you think it's lower in gasoline prices and foreign rates, higher housing, higher stock prices it boils down to wages. if we look at wages over the last ten years, actually inflation adjusted medium wage has not risen. it's fallen. >> that is what is missing in this piece of the puzzle. >> so final take away at going into this week we have earnings from coca-cola, morgan stanley. >> i do want to add to the u.s. equities this year. i think what you have to

consider is that the aggregate value on the market is fought there, right? the stockmarket is not so cheap. i think the value reside underneath that aggregate. you have to look at individual stocks and sectors. if. >> if you see revenue growth it will be under that stock? >> revenue and earnings group. >> coming up gaugeing the economic plan tea face off on the best and worst proposals on jobs and taxes. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and

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cheaters beware hackers have released large hunks of user data from the website ashley madison, promising discreet encounters for married people. the company's slogan is quote life is short, have an affair. they hacked into the parent company to shut down the service permanently, if they don't comply or continues releasing records for approximately 37 million users, between profiles

customers and several fantasies, they say they are working to contain that week but den call your spouse. >> 37 million who are on the site. >> i don't believe it. >>. i don't believe it. when you said that you wanted to do the ashley madison story earlier, i thought i said why does he want to do something on a retailer on the littles. >> that is like with just the end of days. >> it's like this is very popular, so you have a million

married people going on to have affairs. now it's going to leak out. >> they're supposed to slip. they're not supposed to decide to go to a website to pursue one. >> why get married then. why get married? >> i'm not discreet. i have never been to the site. i just want to be on record. >> you just got married i. >> i have never been to this site either. is that what you want me to say? >> why get married? get divorced. knock yourself out. go crazy. go to pla to's retreat. there are people trying to get crazy without getting divorced. >> they might be. >> i hope they do get out. >> we can tell you about diplomatic ties with cuba set to be restored into washington, d.c. we got michelle caruso cabrera live with a report when we come back. urance policy has a number. but not every insurance company understands the life behind it. those who have served our nation. have earned the very best service in return. ♪

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welcome back to "squawk box" on this morning. u.s. employers are having trouble finding skilled workers according to a survey out this

morning from the national association for business economics. 35% of economists said they are experiencing shortages of skilled labor in the most recent quarter. grocery chain ac filed for bankruptcy the owner of path mark listed assets and liables of more than $18 billion. amp has been in bankruptcy before. at the box os par vel'santman taking the top spot with a $58 million debut. universal's "train wreck" with amy schumer also turning in a strong open $32 million in tick sales. that makes it one of the biggest comedy successes this summer. and also we should note a company deal that we have been talking about all morning, lockheed do you el to buy sikorski is official. it's buying it and has been undergoing a revealing of the

assets. buyers say that price tag could be closer to $9 billion. we will get you that release as soon as we have it. >> it's on the universal? i did not forget. the "jurassic" 5 manyle. >> and "mignons. >> they will probably do well. >> the car point of view and then "jurassic world." >> the question of course whether analysts and investors start to look at jurassic world and say it's a repeatable event. that's the big complication. >> this guy will be back. >> we had a bubba gumpf. diplomatic relations between the u.s. and cuba officially

restored today with the opening of the cuban embassy in washington, d.c. michelle caruso bab rer ra joins us. are you going back when this is all over michelle? >> reporter: maybe. you are right, angie, today it is official. this is the day that the u.s. and cuba reestablished relations for the first time in 50 years. behind me is what used to be the cuban intersection, as of today, it is now the cuban embassy, there will be a flag raising later this morning him as for the united states the state department is trying to be as unceremonious today as possible it seems the raising of the cuban flag happened at 48:00 a.m. this morning shall we say there is no ceremony happening at what is now the u.s. embassy in havana. so today is the day. here's what's crucial now. this is just the first step. if cuba is going to re-enter the

world economy there is a lot or hurdle to go through t. cuban government owes a lot of people a lot of money. let's go through some of it. first of all, 5811 certified american planes back which fidel castro took over in the early 'stikts 60s. wars full of dusty old flames. there are certified claims coca-cola, major corporations and the out standing face value add to that something called the paris club debt. money that the cuban government owes to oths cuban governments. that's $15 billion and there is hond club debt. debt that cube owes on defaulted bond they issued in the early

with '80s and paid almost nothing on. there is a lot of debate a. lot of london hedge funds own that 8 cents on the dollar then already the exiles that left cuba and had tear family assets seized. we spoke to the gaut po sugar factory. they stock traded and the daughter to the founder still remembers the day they got the call and that their father had lost everything. >> he got this phone call and he just turned around. he said they've taken over and we were like what do we do now? >> reporter: how much those exile claims are worth? in the billions. there are many in miami who expect if they don't get their houses back they expect to have some money. who will help?

dominique straus con, one and two. megan only one. now he's actually going to advise on the negotiations of the paris club and the london club guys back to you. >> thank you, michelle. we appreciate it. >> in three months cnbc will be hosting its third debate. with so many candidates it comes with a variety. joining me to navigate these is tony frado and gerard bernstein, a senior fellow on budget and policies and priority and both are contributors to cnbc. so all of their economic woes are a thing of the past. given the, i don't know generous relations. >> not really why they're both smiling. tony we've talked in the past

and i mean i just look at an overall issue, my point is you can get over around some of these social divisive issues that the republicans seem to they get that in their way a lot. they should own economic. jared would say, no no we can talk about middle wage and a champion of the middle class. it would be nice to deliver on prosperity for people and republicans should own that. they don't, i don't know. they need to read arrer chur brooke's new book. >> i think everyone should read his back. it's a trick book. are you right. there is a great opportunity to talk about you know pro growth economic policies, obviously, what are we up to 19 voices on the republican side with differing takes on it. but there are some good ideas out there i think there is wages

and employment. it's a good opportunity. we will hear from jeb and scott walker. rubio they all have a lot of ideas out there and its going to be a good debate. i can't wait to see who prevails. you know i'm supporting jeb i think it will be a really good debate. >> i don't want to be mean but the tank is empty. you've had six years of trying to do redistribution to help people in need they're worse off. you need growth something more. wages will go up. the disparity will pharaoh again. you need growth. you need 38 or 48% gdp t. tank is empty. >> here's the thing, here's the thing, i agree with you that growth is key. but i also think it's important for all of us to recognize that accordingto non-partisan analysis, the potential growth rate is something around 28%. if you look at the growth rate

of productivity and the labor force, that gets you to around 2 maybe 2 first half if you push it. that's about where we are. what has to happen to achieve more growth. i don't disagree with you or tony on this point. i think distribution is key. growth is critical. you have to think what will help the economy grow faster? there are two bake ideas. one is investment. the other is increased labor supplies. one of the things i like about hillary clinton's platform is she is drilling down on both of those. she has an idea of capitalize gains. she also has a lot of ideas of breaking down barriers to labor forced entries for women. that will help increase the supply side oft the economy and it could push you up growth. it's absolutely necessary. it's not sufficient to reach the middle class. therefore, i would disagree that somehow we don't have to worry

about that. inequality is alive and well. >> how would you tinker tony with the growth ideas of the republicans to try to maybe, i don't know at least give sol not lip service, is there a way that you can adjust the dials of supply side growth to make sure more trickled down because i don't have a better word for it? >> yeah. >> that's been a great program. >> republicans are, you like trickled down government. you got your choice trickled down government or trickled down i don't think it's that dirty of a word go ahead, tony. >> i think the way is two ways. we want to talk about how to increasing investment in r&d, bake research increasing investment in firms, right, that's where we will see the greatest generation of productivity. we need to reverse this recent trend that we've seen in work force participation.

there's ways we can increase potential growth t. other thing, tow, a lot of their candidates are talking about this is increasing the competitiveness of individuals. that's really something we need to think about. education, skills, because if you think about what americans are worried about, they're worried what their kids will do how they will compete in the future when the robots take over, the chinese take over. what other jobs will be there for my kids? so education and how they acquire the skills to compete in a global economy. >> jared, let's redistribute opportunity. why don't you come up with stuff there? what's your best idea? >> i don't know if we have to redistribute productivity. tony frado is making me nervous. he makes a lot more sense than the candidates. the idea there is that -- >> it wouldn't take much. >> i agree t. idea is you are

talking triple down economics. that's what mitt romney ran on and people before him. the idea is if you give tax cuts to rich and hope it works. what tony is talking about and i talk about as well great investments, i agree, it's better to invest in opportunity. you have to precisely through the education and ideas you heard about. that takes resources that doesn't come for free. it's not going to be -- >> if you weren't in bed with the teachers union, the democrats can't do anything. >> sex education. too many sacred cows. >> we saw the conflict with secretary clinton's speech the other day. she was talking about uber and the sharing economy and attack on uber. >> i don't think they were unionized -- >> i don't think hillary clinton suffers from the kind of disease you are talking about. one of the things she has

consistently done is positioned herself not unlike her husband, in a way that she's willing to talk about anything she is putting all kind of things on the table. so i think keep your eyes on that. >> it seems like she is trying to position herself definitely to the left. if we look at what bill clinton talked about. spousal reform welfare reform balancing the buck pro trade. she cannot run on those things. >> i don't know. look, the economy has changed since the days of bill clinton. we had numerous growth cycles. we saw on this show earlier, we saw them struggling to get ahead. i don't think you can run on a bill clinton platform say today is 1992 it's not. >> you want to comment on donald trump? >> john mccain's heroism. i have disagreements with john

mccain. the guy -- >> what do you want him to do? >> he's dead. he's out. he will not win the nomination. he can only be interruptive. >> should they let him in the debate? >> they should not let him in the debate. >> some think of a democrats for trump foundation getting started. >> it will go hand-in-hand with the rape fant sidesing bern fisanders? >> this guy is bad news. >> okay. yes, bernie is a real role model for a lot of candidates. >> you may not love bernie bernie is better than trump. democrats can police democrats. i don't want to see donald trump vying for my party's nomination. >> i agree. >> both parties have their problems. >> thank you guys. >> when we come back financial advice for millennials. the money mistakes the young generation is making john spooner explains how to fix

them. "squawk box" will be right back. '08 .

welcome block to "squawk box" millennials have gotten a bad rep.

they may have better financial habits than older generation, john spooner is here to discuss this. he's an investor at morgan stanley. he has a new book out "no one ever told us that. money and life lessons for young adults" it helps young millennials to grow up and be more book smart. we were discussing during the commercial blake, sometimes millennials, i want to say, i'm not going to paint a huge brush, a broad brush here there is stuff that can be annoying there is an annoying factor to some of the pillmillennials that don't want to take advice? >> it's a huge problem. >> what is that about? >> this is the most challenged generations in many way, almost a clueless generation in so many ways. for instance, there is a huge advertising agency in my

building downtown boston and going up on the elevator and down there are 5800 young people employed there. four get on the elevator on one floor, each individually on their smartphones and fought talking to each other. so i started to ask them about a year ago where do you see yourselves in five years? around i get two answers. one is i see me working for myself. they have no idea how that's going to take shape. it's kind of a knee jerk answer. the second answer is where am i going to be in five years? i don't know where i'm going to be next week. this is typical. i talk to dozens of young people every week. i get totes across the country. they all say, hepp help me can you help me with my pitiful life in the future? and it's an education problem it's clueless in reality. i hear from people all over the

country. what do you want to teach them if all of a sudden it's at the same time? >> every corporation in america has almost at the top of their list this subject. how do we engage millennials and get them to buy our products and services. this is a book that educates millennials in a society of 3800 million americans, 78 billion people on the planet. you do you separate yourself from the crowd, make yourselves a little different? so the education problem, it's the schools are not teaching young people practical solutions to think. second the problem is the home where parents want to be buddies with their kids not teach them the eternal lessons about what they will have to cope with the bumps on the road and the tough stuff when they get out into the world. and i find that these kids are desperate or find counsel, i'm

hooked on my show silly con valley. have you all these brilliant nerds entitled and but as brilliant as they, are if you watch the show they're clues will about how to operate in the real world. >> we have a not so clueless millennial on the set here. i'm not a posed. >> people still think. >> they do think joe is a millennial. i have to say you have a lot of good advice in this book about building relationships, culling people that have been there for a long time about being more humble. >> right. >> about your job. i have to say as a millennial mile the single most common question i get from people is should i go to afternoon old lying company with a lucrative long match or look for a job at a company that will give me equities? what advice would you give them? >> well when you are young you have to think about getting to

the f word eventually which is financial security and freedom how you do you get to the f-word? i was taught by my mentor in the business years ago, if you want to really create net worth and you don't own the business concentrate, don't diversify, a different concept and a lot of modern portfolio therapy. so along with your 4081k, with young people 25 to 40-plus, you should go for long-term growth of your capital. it should include diversifying your 4081-k plan. my concept in addition to this is find something you call your stake in life company. something you believe is going to be around for the next 20 years that you can accumulate slowly and every single time you get bad markets, add to it. it should be something you believe in. >> congratulations on the book. we got to run. it's called no one ever told us

that. we appreciate you joen spooner coming on today. >> thank you. >> coming up big movers, the stocks to watch coming up next. well, because it tells us something powerful about progress: that whether times are good or bad, people and their ideas will continue to move the world forward. as long as they have someone to believe in them. citi financed the transatlantic cable that connected continents. and the panama canal, that made our world a smaller place. we backed the marshall plan that helped europe regain its strength. and pioneered the atm, for cash, anytime. for over two centuries we've supported dreams like these, and the people and companies behind them. so why should that matter to you? because, today, we are still helping progress makers turn their ideas into reality. and the next great idea could be yours.

seven out of ten power outages in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day.

coming up. toy wars, hasbro' earnings out. the ceo brian goulder will join us next to break down the company's quarter. we'll be back if a moment.

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a big week for the markets. earnings hit high fear with nearly a quarter of the s&p reporting. the strategist sets up the week

ahead on wall street. donald trump stirring the pot yet again, targeting john mccain. they talk presidential politics and trash talking as the republican nomination race heats up. and a city full of self driving cars a. multi-million dollar experiment about to open its roads for the first time. a look at how car companies like ford and gm will use the autonomous city to improve road safety t. final hour of "squawk box" begins right now. >> live from the most powerful city new york this is "squawk box." >> welcome back to "squawk box" on cnbc. becky is off today. she's back later this week. we are less than 90 minutes away from the opening bell on wall street t. futures up 25 points. they haven't done anything. they haven't moved. it's interesting watching the

nasdaq last week. google was unbelievable as it got closer to apple, one two, three, now, apple, google. microsoft. >> adding $65 billion in market cap in one da i. >> on that one day. amazing. check out the markets in europe this hour which more tends good things for us. -- portends good things for us. italy up almost 28%, positive arrows everywhere. asia was not bad. we'll see some of the other stories investors will be talking about. greek banks are reopening. putting limits on a ban of wire transfers abroad. no date though on when the stockmarket might reopen. meantime increases if value-added tax agreed to under the bailout have taken effect.

lockheed martin buying the sikorski aircraft. tax benefits result from the deal. utx thorgz a repurchase of up to 75 million shares this morning. barclays reportedly plans to cut more than 30,000 jobs in two years, this according to "time's" of london. they fired a ceo earlier this month. the replacement, who wants that job. who would want to run a big british investment bank anymore? >> bill winters. >> bill winters might. >> i would not want that. >> that is a company in an identity crisis. >> you'd have to take a pay cut. >> exactly. >> among other things and are you not that popular in the u.k. if you are running a bank. >> no. >> should we talk about other stocks this morning, what do you

think? >> he wants to talk about my popularity. a few stocks on the move morgan stanley posting better tan expected earnings and revenues. sales have risen sharply on the news, they have done something no other bank reported so far, they managed to see revenues rise in equity and fixed physical trading. amazon upraided to outperform from market perform. the analyst says the company has gained traction in a number of retail markets. it will be the number one u.s. apparel retailer by 2017 on the back of that upgrade. it looks like shares are up shy of 28%. >> front and center for investors, earnings a quarter of the s&p 5800. tail be in focus for investors this week. let's bring in jamie paulsen at wells capital management this morning. ahead oof these earnings reports, would you put money down, jim, today on the

assumption we will actually see top line and bottom line growth this week? >> well, you know i think the earnings season, andrew so far has kind of gone like it has in the past here where everyone you know advises down on earnings and come into this season expecting a 38,% decline. we will have another outperforming quarter with slightly low single digit rise in earnings results. so far, that's kind of been the case. most companies again outpacing. >> that means you want money down? >> well we might go up a little bit here in the interim on better earnings reports, maybe better economic reports here. i'm still concerned, though about the big event which is still hanging out there. i think we have been through these warm-up acts with china

and greece and puerto rico and the like. the big event is yet to come. that's the fed. i think it will happen yet this year. >> even if it hasn't we're talking september or december at this point? >> oh well we'll see. i lean more towards september. >> you think that will knock all these gains offer? that's going to be a one-two punch? >> well the history of first fed tightenings. it's been 150. it hasn't been a good record. the market did well in the 84 following the '50s. since fine 60 it's gone down four of the seven years since then. in the next 12 months. it's only managed a 58% gain six out of the seven times. so it doesn't do well we're going to the mother of all monetary using cycles. we are finally going to take the

vote and skate right through that. seems unrealistic. the fed will start this cycle because they've waited so long at one of the highest values. >> if you are right. and investors are watching you this morning speaking what are they supposed to do and just to put it in perspective, you had this view now for several months. to some extent the market was sideways you would have missed these dpans in the past couple weeks. >> absolutely. i have kind of been more cautious since late last year. i still a. that's kind of my play. i'm not saying it couldn't go higher in the intricate i think we might get a full blown correction yet. i think the main catalyst to my concern is the fed changing its stripes, we finally move to an upward rate cycle in this country. i think you move to the rest of the world. i think most of the rest of the world is not in a situation the united states is in. most of the rest of the world has not reached full employment. they do not need to start raising rates, moving towards

more hostile policies towards the financial markets. most of them are much earlier in their earnings cycle. they have much more earnings upside because the profit margins aren't maximized already. the earnings growth hasn't slowed down. most perform in the occupation in the last three years. so i think europe and japan are the merging worked. the commodity countries they had in australia. they got pound last year 'inflation kernlts all offer you to hide out if you will. >> you want her to go in september or you think she goes in september in now i think she will. and i want her to. >> that's where i'm at. >> me too. >> just to show she can. >> she wants to. >> she nodes to. agree.

>> joe we will tighten from the lowest unemployment rate. >> quarter point. ouch it's too tight. 25 basis points. no that hurts. that's ridiculous. >> we don't call it tight. we need another word. >> i agree, normalization. >> still not normal. >> it's a c change from what this market leads to. >> i don't think you have been wrong either. >> if you are timing every 5% move you have been wrong. you have been saying sideways what are we up a point, a percentage point? >> yeah. >> you will leave it there. >> i wish they would have started it earlier, which is good. we will go into it with vulnerabilitys, the longest period without a correction. there is vulnerabilitys the feds

will start this process with. >> they're not around anymore. then you got jobs. you got john hank. you know. you got to get a lot of love. jim, thank you for joining us. we appreciate it. >> a toy story. >> i will talk to brian goulder. hasbro' revenue, benefiting from its boys in the preschool division the ceo joins us on the "squawk" news line. we were talking to you in relation last week. we had a side-by-side of hasbrought vs. matel. we have the point they have tie-ins with other popular media connection and whether its movies or something else.

barbie is sort of stuck out there. it's barbie you even have "jurassic world" coming up. >> as a company, we are trying to focus on stories and merchant experiences, that's true for our franchise brand. you are right. we have lots of great entertainment partners walt disney universal "jurassic world" and performing very well above our expectations. >> is there anything you have introduced not tied to something's like that or a videogame? i said i would hate to try to attract the ascension e tension of kids that can have an unbelievable experience mesmerizeing with video games? tom hanks in "big" would have a

real problem coming up with something that kids would want to play with. >> one of the biggest growth peers for the quarter is play dough. it's growing globally. >> how'd you get that going again? last two years it's about creating diversity, kids love it. kids have done a great job. we had great growth this past quarter. nerf is another brand, there is a certain amount of story telling and innovative product. >> with nerf you got guns. >> those are blasters. >> what are you doing with nerf? >> follows in football and stuff like that. >> you have blasters. >> exactly. >> days are numbered. >> hey, brian, obviously, the

dis fipartnership with "frozen," "jurassic world" is great. do you think that being an independent toy maker is what made those deals possible? issight 20-20? >> we have focused on rebuilding partnerships and our partnership came as a result of our building our girl's business north of a billion over the last decade. we started ten years ago building girls, our expertise. we had the opportunity to do some business with them prior to "frozen" we are launching disney decentants. it comes out in the next couple of weeks. we had an opportunity to show them our expertise and we built our expertise. so worry very much looking forward to launching the princess and "frozen" doll lines in january, 2016. >> did i see mr. potatohead? you still got him? >> of course. i love him. >> yu to put a finer point on

friday's, is there any reason you think you need to own an entertainment company? >> we are creating our own content right now. we relit our 1250th half hour of kids programing. our programing is on the air all around the world. "transformers" is on the air in more than 1850 geographys so ourer merging market business was up 89%. shows were on the air in all those countries. >> you are a grown-up. >> brian, before we go play dough, i get you got a lot of things you squeeze it through and make things with it. >> play sets are great. if you haven't played with playdough lately. >> it comes out. >> we do a lot of playdoughs in the house. >> with the kids? >> sometimes. >> i won't do it on my own.

>> god knows with you. i don't know how you keep it fresh. i don't want to know. anyway, brian, thank you. i appreciate it. good luck. he's doing well. unbelievable matel. >> 46% over the last year. when we come back. donald trump setting off another firestorm, politico's ben white will join us after this break. center stage quarterly results. ibm, microsoft, apple. the names you need to watch just ahead. "squawk box" will be right back. nz you've always wanted. but you better get here fast... yay, daddy's here! here you go, honey. thank you. ...because a good thing like this won't last forever. see your authorized dealer for an incredible offer on the exhilarating c300 sport sedan. but hurry, offers end soon. share your summer moments in your

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on to politics now. the big story over the weekend, of course, donald trump's attack on senator john mccain. trump said on saturday quote, he's not a war hero he was a war hero because he was captured. i like people who weren't captured. donald trump on the "today" show this morning, had this to say about that comment. >> we talk about john mccain. i think it's great. he is a brave man him all of that, we don't talk about the people that weren't cap cured. that itself what i was trying to refer to and i think i did. and by the way, few see the news conference, right afterwards a

few minutes afterwards, everyone was perfect. i never to the this was an issue. >> senator john mccain on msnbc's "morning joe". the question should mr. trump apologize? >> i think he may owe an apology to the family of those who having ary piesed in conflict and those who have undergone the prison experience in serving tear country. >> your reaction to all this. why the political contributor cnbc and mr. morning money himself? is it over? >> i can't believe donald trump calling john mccain not a war hero. is it over for donald trump? >> yeah. >> i don't think so no. >> "wall street journal" has a harsh piece out this morning, suggesting that republicans should be distancing himself if

they haven't already. >> most of them are some saying he needs to apologize. >> ted cruz not so much. >> he wants trumps voters. cruz is a guy that is anti-immigration, has similar views to trump. he crashes, he wants to take the journal. >> they call out the conservative media elite. for letting this happen. >> right. >> i am pribl for the radio people and stuff that have been pumping him up. >> yeah that could be. but he registers in the polls. therefore, he has to be covered. anybody leading the republican presidential poll. >> the ling i thing, god bless you and the media. but bern fisanders, 25% from you know raped by three men as

a fantasy. you get ovarian cancer from fought having an orgasm. wants to change our system of economic what we've used and change to socialism and yet prepath r pass. >> what does he the huffington post, what section of media would you put them in? >> i have many good friends. >> could we put it in the parity section of journal i.rism? >> it's not covered far left. all these horrible republicans. 17%, they give him 23 or 24 hour%. >> what's the chance that fox decides, we're not going to have a debate? >> there is a chance i think,

if the outcry continues to ride i think it will be very hard for him to do that because of the numbers where he is. if we had a pullout tomorrow that was 5% and plunging they will have a way to get him out of the debate. >> you want him in that debate? >> yeah. >> the only thing is if the elders say it's an embarrassment. ratings wise he's in there in the polls. >> usa today among the post-read newspapers in this country above the fold today he is polk so well after all of these. >> we are waiting to see if this knocks him in. >> is to the media talking in

severals? >> what about polling well? >> it's a fractured race right now. he's number 28. >> he is not above 28. >> if you aren't in the 20s? >> let me say one thing each party with the establishment, with traditional establishment. >> i may not have a thousand words words. >> both are satisfied, talking straight to people they come home to jeb bush or marco rubio or scott walker one of the more traditional candidates. this will be a funny story. trump is leading the polls.

he gets big crowds he will not beat hillary clinton. >> the comparison has been made a lot. >> they both have not well thought out particulars on policies other than everybody is a dumb my and an idiot and says things he doesn't agree with and build a big fence to keep the immigrants out and he will press china and take the oil. as they fire people up they are not people who will lead the country. country. >> he does not want to be treasury 2nd either. >> true. >> ben white, a real journalist coming up, so you want to be a millionaire? we are looking to help you out. we have details after the break.

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welcome back to "squawk box." who wants to be a millionaire? online service redditments to convince 18 million users to do fate a dollar to a randomly selected user. you must be a user for longer than 30 days a history of activity on the site. to enter, you post a comment on the millionaire makers. the drawing takes place on the third friday of every month. each previous attempt has fallen

sort with the luckiest winner having just over $11 billion. when we come back next morgan stanley cfo speaking to cnbc about the bank's quarterly results in the financials. that stock is trading off it's 52-week high. first, though, take a look at u.s. equities futures. s&p 500 up about 2-and-a-half points. we are back in a moment. it's a fact. kind of like shopping hungry equals overshopping. .

welcome back do "squawk box" paypal begins trading as an independent public company today following its separation from ebay trading on the fax under the ticker cypl. they will have the lower gas tax, alaska has the lowest then topping the weekend box afc, north american ticket sales the

best to debut. >> morgan stanley's latest quarterly results, mary thompson just got off the phone and joins us with details. >> john cruzan holding the first conference call this week. morgan stanley delivering better-than-expected revenue and earnings. they say they saw client flows. lower volumes and a steady performance a standout revenue rising 30%. calling it a balanced quarter. he downplayed reports that morgan is looking to expand this business after years of downsizing. while advisory fees were relatively flat cruiseen say morgan stanley's backlock remains strong and they are encouraged by the strategic level its seen. they managed to deliver improved

pre-tax margins of 23% in the quarter. morgan continues to build the loading business in this brokerage business. a trend he called cyclical than secular. compensation rose and the comp ratio came in below the target terms in the first quarter. if wealth management, that target remains above the target of 55%. but it did decline in the quarter 57%. joe, back to you. >> mary, thank you apple, ibm, a few to report tech stocks. >> all right. joe, we have a situation where the tech companies have influence on the overall mark. if you take a look at ibm and apple. the stock over the past year brought in different directions

ibm has been a lager. apple up by nearly 40. let's take a look. because they ran the number and how the stocks performed. ibm we had a number of reports. they beat earnings estimates 19 out of the last 22 times. what happened is interesting. it's down 1.5% after regardless whether it beats or not then it's traded negative after earnings two-third of the time. now, apple, a different story here with regard to the averages historically at least over the last five years. it as seen earnings estimates 19 of the last 22 times.

it's averaged a half a percent gain. now, the interesting part about this is it's a bit of a coin toss positive 55% of the time all tow, over the course of the last two years we have seen apple trade more positively than not. again, the numbers to set the stage. this is not a predictor of what will happen here. just an idea of what these guys typically do over time. so joe, interesting moves here both stocks are in need of a bit of a sat a list. ibm this afternoon and apple later on this week. back over to you, joe. >> i'd like to see that ibm report on revenues not earnings. >> and service contract signings. there are so many metrics. >> the revenue is down from where it was five years ago? >>ened it declined year over year. remember, buy backs will us as be a part of the discussion. >> when you buy back stock, that's how you are beating

earnings every time i don't know it hasn't hurt the stock prices either? >> here's the interesting part. a lot of people say now, it's been a while since she's taken over. the question then becomes whether or not the initiative that she's putting in place are going to give ibm that catalyst to move forward. okay we know it's been the worst performer on the dow for the last two years, now people are looking at this company saying if there is a positive revenue catalyst. if they can show some signs, it might be a value place. you have it up there on ibm. >> i don't know if you call it tech. it's $1860 billion. look at google and amazon facebook and take your pick of who is left apple $7850 billion. this is a $169 billion company now. i don't know if you call it a giant anymore. >> yes, you are right. >> maybe not yet. >> when you compare it to those guys for sure. remember sentiment changes in the marketplace every once in a

while. ibm has that track record of reinventing it. it's just about whether that company shows signs of life. >> right. let's hear more on what investors should expect from the likes of apple and microsoft. market managing director and senior analyst and fun to watch ibm in light of buffet too. because he moves in. he says he finds more. six shares. >> i don't know whether, do you think he is grad he made that initial purchase? he hasn't made money yet? >> this happen a battle. at this point. >> you got the number for him. >> on revenue. >> 13 out of 15. >> ginny's argument on all this why do we want it? >> they were so on cloud. they missed the boat. it's climbing up mount ever estest

in terms of the acquisitions on the horizon? that's why you compare this to a microsoft. >> what company would be a catalyst? >> i think it's big data cyber security and cloud. >> they have a fame like splumpg or tableox? it fits the bill. they need to make changes, otherwise, like joe said we'll sit here continue to look at sort of this thing meander, really comes down to the only way you put fuel in the enj inin terms of growth is big data cyber security and cloud. >> the question from investors is, what is ibm's history of successfully integrating businesses what is the history of doing that and doing it well?

>> it's been a checkered past. i think now really there is challenges in terms of what it can do. it all comes down to that you mow the cloud and some of the newer growth areas to show some sort of traction there. but really you can cut your way for growth. that's what investors have focused on. are you starting to see glimmer on cloud? >> are you seeing glimmers in terms of what they are trying to build on not the low calorie revenue, what you would call? >> i think on some of those, have you seen some green shoots. the issue is the meat and potatoes have major overhang. it comes down to a lot of the other companies, emc, oracle. ibm is not alone. they have moved much more towards cloud. now the companies have to make a big decision. >> how about microsoft?

>> they've got that great annuity business that the amount of revenues that occur for that company is unbelievable. >> it's been impressive per share relative to the bomber. he has ripped the band jade off realizing microsoft needs to get there on cloud. investors haveer cloo cheered it. i call eight picasso, going relative to all the other large happenings. that's why investors leak what they see in terms of the growth on cloud. now you got windows 10 coming out next week you gottesman the catalyst. the big difference between microsoft and ibm. microsoft they feel like they've taken off the rose-colored class ifs. they see themselves ibm came into oracle emc, they think they're the company they were five-to-seven years ago, which they're not. >> i'm wondering what you think

about apple. obviously, it's going to be a quarter will iphones again will be the standout. we hope to get some sort of numbers on apple watch deliveries in the quarter. then there is the iwad in some ways that is they singe the hope on this idea that enterprises would start to buy them once they had the apps develop to help them. that hasn't panned out either. >> the message on the street has been waiting for a new ipad. it comes out later this year. the big issue into apple earnings is that 58-o number. can they have that shipment above 50 million? china has been a little overhang. you are seeing more optimism hang into tomorrow night you will start to see those iphone legs on iphone 6. china, we believe is the high octane fuel and it breaks above highs with a good print. you go into next year with the watch, with apple pay, with a

lot of the other group areas. that's the third leg of the stool. that's what investors will want to see. >> so europe up pre-growth in the sky with apple? >> i view this. we talked about before this has been the stuck in the mud period since the developer conference. this is going to be really approve me quarter. ultimately, that's how we get to that trillion dollar mark. >> we'll get there. >> can they show that coin continues to be that fuel? can iphone 68 continue to have the legs? then you have 6s later this year. >> that could give you the growth. that's key to cash. >> no other phone maker will be smart enough to leapfrog? >> i mean, annualpple continues to be the gold standard. i think the issue that they have to continue to innovate. also, what they have done in carolina is a huge game changer. that's really the growth market.

a lot of skeptics will say that will never be 20% revenue. we ultimately need 40% revenue by 2015. >> my daughter is doing the radio thing. you put in who you like. it does it for you. i download ten rems. i'm in an rem phase. >> assets. >> he's just discovered streaming music. >> and this is only the appetizer. screaming tv. >> you think that comes in the fall? >> later this fall we will have streaming tv. the cord cutter. another adding to it that we are seeing. >> thank you, sir. when we return we got a fun story the jettisons have landed in michigan. we got a look at the city. self driving cars. what makes auto makers and scientists there, what they're looking to accomplish. fril lebeau joins us from the grand opening of m city next. the only difference: that little blue thingy. you see it?

using ge software, the light can .

welcome back to "squawk box" the dow is set to open higher. the s&p up a point-and-a-half. the fax up ten points. check out shares of vivint solar. it is being acquired by sunedison. it's the second largest installer of solar panels.

>> it's up about 43% in the pre-market tradeing on that news. m-city is a 23-acre mini metropolis in michigan. auto makers can test cars. it opens for business today. >> that is where we find our phil lebeau. i imagine you got a first look at this. what does it look like? >> reporter: imagine a hollywood set. that's the best analogy i have kayla. thank you as we pull out a little bit here. it looks like a regular suburban street behind me. maybe people at sidewalk cafes. that's a facade it's not real. it puts them in certain six and seeing how they react again in a controlled environment. this is closed off to the public. here's what m city really is it's an attempt to do more. to be at the forefront when it comes to autonomous drive

vehicle research. the university of michigan is at the heart of this doing the work here. the question is how soon will we see self riding cars? folks, that technology is being tested. tesla is a good example. auto pilot will likely be in the model f here. you will have fully you a on the pus models on highways between 2020 and 2025. closer to 2030 that's when we are likely to see fully autonomous cars and trucks on the road on the highway and the city drivingful self driving cars are already on the road being tested. primarily in the silicon valley. that's one reason why a number of the auto makers and auto executives in this area said wait a second let's see what kind of research can be done in

southeastern michigan. the future of the autos is not all in the silicon valley despite the fact many people believe that's the case. what believes that more than others? investors. take a look at shares with tesla and gm. no comparison at all. a lot of this has to do guys we talked about this for sometime. when you talk with an a lists and big institutional investors, almost all of them say the same thing. where's the future? what is going on with tesla? i rarely hear people say what is going on with gm with ford even tow they are on the putting edge when it comes to autonomous drive vehicles. m-city will be opening for business today and guys some of this stuff is very very cool. it will be interesting to see how it develops over the next couple of years? thank you, phil. when we return we will head down to the new york stock exchange and check in with jim cramer for the week ahead on wall street. futures still in the green.

we are back in a moment.

stocks on the move this morning. andrew? >> yeah.

>> what stocks are on the move thing? you tell me. >> exelixis. >> where do you imp fiez the syllable? >> it's a small market cap but a big winner. the company, that's the symbol f.. it's a kidney cancer treatment that has shown survival in studies meeting the primary end point. >> lovely. let's get down to jim crimer at the new york stock exchange. >> how do you pronounce it? >> this drug had been a failure a couple of times. that's why it went down. the renal cancer most people had hopes for it. most people on wall street didn't. this is a stunning development. the stock will go back up. this was not supposed to happen. >> gymwe have a big week of

earnings, ibm and many others this week. >> ibm you talked correctly about it. fast-growing stuff has to grow faster and slower stuff not drop off. we started to seeing this whole quarter, guys going up right in front of the quarter, netflix being the best example. google the next best example. amazon, two example vs show me blow out. >> the upgrades don't mention this quarter. they say watch for 2017 for the number one apparel retailer it's walmart and target. do you buy it? >> they're all like that. none of them say listen this is the blowout. they've all been very focussed on 2020 because no one wants to say buy it ahead of this quarter. then it sounds like they got a

call. what they have is they've done models that shows a breakout of the cloud business being good. when i read it they say buy ahead of the quarter. we want >> what about papal. >> the numbers that i have been using for a little bit lower than with the sun king was going over at sun trust. he's been the best guy, peck. $1.47 means you could get to $50 with a multiple. it should trade higher than visa and mastercard. it's a must own. it's the fastest growing credit card company with no risk. >> because it becomes a takeover target? >> no. it's not tremendous earnings power. we also know it was give an lot of membership.oney. it has been hidden within a company that the ceo is really smart. the numbers are going to be

raised over and over again. the targets being used are very low. i've been using a $45 targets, when i read the reports, it's going to go to $50. >> we'll see you in a couple of minutes. >> up next an intense moment for a pro surfer over the weekend that was captured on video. we'll show you what happened again and what he had to say about the incident after the break.

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check this out. an amazing escape for a surfer and it was all caught an tape. professional surfer mick fanning came face to face with a shark and got out of the water unharmed. it was a terrifying encounter, and it all unfolded on live tv. hopefully with a delay, you would hope. the surfer fighting back after the shark knocked him off his board. >> he supposedly hit him. >> i was waiting for the teeth to come out there. i was swimming. i was like oh. >> did you get a couple punches in in. >> i punched it in the back yeah. >> wow, he's quite composed. >> i would not be composed. >> they shared the first place

because neither guy went back in. they tied. >> i don't blame them. needless to say they did not get back in the water. incredible footage. >> we have some other news. it's a bid of what we're calling nerd news. an australian teen felix, winning the 2015 rubix cube championship. the 19-year-old averaged 19 seconds. the first competition was held in budapest and how it's held every two years. people used to take the stickers off and -- >> that was obvious, though. >> have do you do it? >> i've never solved one. there must be some trick to do

it that fast. >> i'll bet there's some sort of instructional. >> just leave it the way you bought it. >> look at the dexterity. that's unbelievable. >> not even breaking a suite.weat. >> thank you for being here. "squawk on the street" begins right now. >> good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and jim faber. the peak of earnings season arrives this week, everything from amazon to apple, ibm to gm. s&p is four points below the record close. we're around 2.37 or so. oil is key after dipping below 50 for the first time since april.