more delegates in the race for the white house, but their opponents, bernie sanders and ted cruz, show no signs of backing down, capturing the utah caucuses. it's wednesday, march 23rd, 2016. "squawk box" begins right now. good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. we should tell you the latests in brussels. this is just crossing from one source at this point. it is a belgian source citing that the third suspect has been captured in belgium. again, this is just one source. we'll continue to stay with this story and tell you more as we get updates on this. that manhunt had been under way for the third suspect. you're looking at him right there. he is the suspect who was expected to have remained alive

after these attacks, having been there. there had been a manhunt put out globally at this point for him. one brussels source now saying that they have apprehended the third suspect. police have also confirmed that the two men on the left are the brothers khalid and ibrahim ael bakraoui. the man on the right, again, is alleged to have assisted the two suicide bombers. police sources also told nbc that the man is a suspect in the paris attacks as well. as part of that manhunt, a police raid in brussels led to the discovery of a nail bomb and an islamic state flag. isis has claim the responsibility for the attacks that have killed at least 31 people. >> let's take a quick check on the markets, debt yget you caug on how global markets have been reacting overnight. dow looks like it would open 15 points higher. nasdaq up about five points.

the s&p 500 up about two points. european equities thus far have been in the green. i get anxious that events like this have just become either so common place or so expected or we think the economic impact is so little that it has not had a huge impact on the markets. oil prices, let's take a look at what's happening to wti crude right now. you're looking at 41.09. take a quick look at the ten-year yield right now. you're looking at 1.942. let's get over to get more on the aftermath of the attacks in brussels. ayman javers joining us from washington this morning. >> good morning, andrew. as you've been saying, we're learning a lot more now about the attackers who planned that deadly bombing attack yesterday in brussels at the airport and on the subway. belgian authorities have released this photo taken from airport surveillance pictures. take a detailed look at the two

figures on the left. according to authorities, that's khalid el bakraoui, 27, and his 30-year-old brother, ibrahim. they're believed to be the suicide bombers in this attack. each wearing a single black glove on their left hand. not clear what the significance of that is necessarily, but it may be a clue as to how they plotted and staged this bombing attack. both men had been convicted of violent crimes in the past and were known to police. police sources say the man on the right in the light-colored clothes wearing a hat and glasses is najim laachraoui, 24. he's a suspected jihadist who was suspected also of involvement in the paris attacks. there has been some media reporting that the manhunt searching for najim laachraoui over the past day may have come to an end. we're going to be very careful in reporting on that. it's just one report as of the

past two or three minutes that's come through on that. police had been searching for him. they say he survived the attack, whether that was intentional or some kind of misfire of a suicide bombing attack, not necessarily clear in the early goings here. meanwhile in brussels, the city is trying to bring itself back to normal, getting some businesses, schools, and daily activities back to normal after a horrific and scary day yesterday as authorities comb the city looking for the one remaining attacker from that airport suicide bombing attack. so that's what we know now in brussels. here in the united states, security has been stepped up at airports and in cities in public transportation throughout the city. authorities here say there's no specific threat of any kind of follow-up activity. what they're worried about, though, are the so-called lone wolves, the people not connected to isis or to be a broader terrorist ideology who see this and say that's the kind of thing i want to be involved in and carry off attacks on their own. that's the concern here in the

united states. no indication of a specific threat. >> there's a lot of chatter, supposed supposedly. now there's so much chatter, that they don't know what chatter to pay attention to and not pay attention to. i saw the head of the homeland department in congress. he said there are lots of communication between people that are in isis in syria and people in the united states. they know there's communication, but there's so much chatter, nothing definitive, yet there's definitely communication. >> we know the fbi has suspected people with isis contacts under surveillance currently here in the united states. not clear exactly how many. but the fbi is watching as many people as they can here who might have these kind of connections. the concern in brussels is that european authorities seem to be overwhelmed by the sheer volume of people that they have to keep under surveillance at any given time. that's how it may be that these three slipped through the cracks can, even though they know after

the arrest of one of the paris attackers last week that there might be an attack coming in the coming days. since friday they'd been on very heightened alert, looking for potential attackers. they were not able to stop these guys from carrying out this attack at the airport and in the subway. >> yeah, and i keep hearing people say someone knew about it, someone should have said something. it's in a neighborhood where people might have known about it, but they might have known about it and not been totally opposed to it. >> absolutely. you have a community here that appears to support some of these activities, support these individuals. i want to draw your attention to the idea here now that we're seeing another pair of brothers involved in this suicide attack. that's the third situation over the past couple of years that i can think of, of brothers being involved in ament menbomb inin. we had two brothers involved in boston.

two brothers involved in the paris attacks. now two brothers involved in the brussels attacks. that might tell us something about the recruiting. we have brothers with violent criminal records with sort of nowhere to go in life, possibly looking for an ideology. maybe the psychology of this is that it takes two to sort of egg each other on or support each other or simply for operational secrecy, as you're talking about, joe. the kind of people who won't rat each other out because of those deep family ties ahead of some devastating attack like the one we saw in brussels yesterday. >> i remember growing up and reading about world war ii and kamakazis. i couldn't understand someone doing that. life has to be pretty bleak or you must believe the afterlife is pretty great to really be able to do it. >> if you look at that picture again and you look at the expressions on the faces of the two men who are said to be the suicide bombers on the left-hand side of that picture, you're

looking at people who look very calm. >> that's what i said, i wouldn't have looked twice at these guys. >> they don't look panicked. they're not muttering phrases. these are people who seem to be totally in control of themselves, who know they're just minutes away from their own death. how somebody psychologically composes themself for that kind of moment and what preparations they use to do that we're going to learn a lot more. but that's an indicator of the type of person that they're able to recruit. >> fervent in their belief, i would imagine. >> absolutely. >> thank you. for more on the reaction in belgium a day after the attacks, let's bring in politico europe reporter tara palmeri. she's joining us live from brussels. i think we had to phone her yesterday. we can actually see you today. good morning. >> reporter: morning.

i'm standing in front of a makeshift vigil where there is actually a lot of movement, but in the rest of the city, it's pretty quiet today. european officials have been told not to go to work. european parliament shut down. we're still at level four terror alert. the belgian officials have learned there are deep ties between salah abdeslam, the paris attacker, and the two el bakraoui brothers. they're all of moroccan descent. they all had close contact in their hub, which is molenbeek. so definitely some correlation in planning the attack. >> tara, thank you, once again for your report. we have ambassador burns here so we're going to move on. we appreciate it. thank you. as i said, for more reaction in the attack, former u.s.

ambassador to nato as well as an undersecretary of state. he's currently a professor at the harvard kennedy school of government. i'm going to take this somewhere in a moment unless you want to start with your general feelings and comments on what's happened. >> thank you. i think what we're seeing is a long struggle. we've seen a series of terrorist attacks over the last four months, over the last 15, 16 years since 9/11. the first thing we have got to do and what our law enforcement is doing is try to get with law enforcement in europe and do the work of police. try to track down terrorist suspects, use intelligence to try to find out where they are, then process them in our judicial system. it's knot dplnot glamorous, bute most important work that's got to be done. there's a lot of cooperation between our authorities and the eu authorities. the larger struggle here is going to be in the entire expanse of land.

there are terrorist groups that are aligned with the islamic state all throughout there and the middle east. that's a bigger conflict. our military is trying to get ahold of it. problem is we're trying to contain it. we don't have the resources in place or the strategy in place to try to defeat it. at some point, the united states, the european governments, the arab governments have to decide we're going to defeat this group. they haven't made that decision yet. our strategy is contain, not defeat. >> to continue a conversation i had with the anchors on the previous show, just in the journal, there's global jihad's deadly calendar. in this piece, they point out date by date multiple attacks that didn't get as much attention. amazing how many there were. then in the op ed part, they

talk about the president's -- and i think there's something to not being too affected by what happens with terror because that's exactly what they're looking for. they're looking to inspire fear. they're looking to have us frozen in fear. so you don't want to think that there's a terrorist around every corner. the president apparently, you know, has frequently said, you know, they're not coming here to cut our heads off, so let's relax, and more people die by falls in bathtubs than from terrorism. i just wonder which is -- do we walk a fine line between both of those, or do we need someone to tell us, you know, they may get a dirty bomb, they may get biological weapons, they may put smallpox in the water system. i mean, do we wait for that before we say, wow, i really should pay attention here. >> well, this is the number one threat to the united states. it's not global warming. global warming is a threat to the united states, but this is a major threat to the united states. this group has shown it has the

capacity to act globally. it can deploy resources. it can deploy men and women, suicide bombers, in distant parts of the world. the president, of course, takes that seriously. >> really? are you seeing the type of response that you think is commensurate with what's happening from our administration? >> i just said i think the big policy question here is we made the assumption that we can try to contain them in place in europe. it's clearly not working. at some point, the administration, but particularly the arabs, because they're at the heart of this, are going to have to make the decision that we have to put more resources in. >> what does that mean? more boots on the ground? >> intensified air campaign at the source, which is in syria and iraq where the islamic state has its major outpost. >> how many people you think we're talking about? >> now they've metastasized into libya. >> who's going to do the air attacks? >> the united states is leading it. >> but you want the arabs to get more serious. >> i think the united states should intensify the air attack.

we should be joined by more arab states. so the saudis, the emirates. >> but we shouldn't leave. they need to move first. >> i'm saying we should lead. >> are we leading now? >> i think we are leading in that. i'm saying we should intensify the air strikes. we need more arab support and more european and nato support for that. at some point you have to have forces on the ground. they can be syrian ckurdish forces. >> how many people are you going after? >> i don't know. i'm not an intelligence official. the estimates of islamic state fighters are 30,000 to 40,000 in syria, libya, and iraq. but you have people in europe. you have people who are citizens of france and belgium, not people who have just come in as refugees. >> and all the other groups in africa. >> the conundrum is they're citizens already there. >> that's really hard to defend against. >> correct. >> for instance, these people have french and belgian passports.

they're moving from one country to another. you can't prevent them. >> then it becomes an intelligence story. >> it becomes an intelligence story. i think that's the broader battle. it's intelligence, law enforcement, and judicial cooperation. that's how we essentially went after al qaeda. >> ambassador, everyone seems to agree we need to attack this at the source in syria. the problem is no one seems to have an answer of who would be in charge there once isis is out of the way. it was complicated by russia getting involved, even though they're stepping back at this point. we don't seem to have a clear plan as to who would lead there. >> i think there's a clear plan by the administration in iraq. >> not in syria. >> there is an authority in baghdad. the next big thing to watch for at some point hopefully this year is mosul is retaken by the iraqi army with the help of the united states. the problem is much more difficult in syria. there the country is split into four or five different factions. we don't want to see president assad's control extended. the syrian kurds are the group that's done the most to fight

with the united states. but of course they're the enemy of the turkish government. this is enormously complicated. i think the president and secretary ash carter are doing their best, but they need more support from the local countries. >> in the hearts and minds of people in all these areas, you need to change that. i don't know how you ever change that. we won't hear from this administration islamic terror, but that's what we're talking about. radical islamic terror. >> in this place, that's what we're talking about. >> how are we going to change the hearts of kids that grow up and their idols are terrorists, not politicians. >> i've lived in the muslim world. my sense is that the vast majority of muslims want nothing to do with this and reject it. that bears repeating this morning. the vast majority. the problem in belgium and france where these two big attacks overs last four months is, these are mosaic societies. we're a melting pot. they're mosaics. the young kids in these

communities feel there's no escalator up for them. they can't be belgian prime minister. they can't get on this show in belgium. that has to change in the educational system and the sociology. >> we're going to talk politics in a minute with john harwood. i have a political question. donald trump made critical comments about the muslim comment yesterday. he's made other comments like that before. as ambassador trying to deal with this, what is the appropriate language? one way or the other. >> not donald trump's. he's done a couple things over the last several days. he repeats this call that muslims should be kept out of the united states. that's fundamentally anti-american. we've got to have border security. you got to check who comes into the country, but you don't keep people out based on religion. secondly, a day before the attack, he questioned the need for the united states to stay in nato, to lead nato. we need nato. we need these allies to help us prosecute this long, long struggle ahead. so i think he's completely off base. it shows that he has a very weak understanding, probably naive understanding of how this all works. he wants to be commander in

chief. he needs to work harder at it. >> okay. ambassador, thank you. >> thank you. >> appreciate it. >> pleasure. our other top story of the morning, results coming in from the nominating contests in several western states. the candidates seem to have split these. also, news just crossing that former republican candidate jeb bush has now endorsed ted cruz. john harwood is here with more. a lot of news to get through. >> becky, we did have primaries last night. they continued the march of the candidate ambassador burns was just talking about, donald trump and hillary clinton. let's look at arizona, which was the biggest state on the map. winner take all primary. donald trump easily beat ted cruz, notwithstanding that endorsement that ted cruz will get later today from jeb bush. on the democratic side, hillary clinton swamped bernie sanders. those were the most significant results from the night. we also had caucuses in utah. ted cruz did well in utah. he topped 50% of the vote, which

means he got winner take all of the 40 delegates in utah. bernie sanders won, consistent with his pattern of doing well in caucus states so far. bernie sanders also won the caucuses in idaho. again, smaller contests. then step back and look at the delegate race for the nomination. you can see on the democratic side, hillary clinton has got well over half of the delegates she needs to secure the nomination. if you add in the super delegates, she does even better than that. on the republican side, donald trump has got well over half of what he needs to get the republican nomination. now, the question is, can he get to 1237 before the convention this summer? to do that, he's going to have to win handily the winner take all states. there's still some proportional states on the republican calendar. the ones he got in arizona last night is a positive sign he may be able to do that, guys. >> better or worse based on the

results from last night? i know it was 58 delegates from arizona. i think it was 38 or 40 cruz picked up in utah. when you start going through, i think we were saying before that trump would have to pick up 60% of the remaining -- did that percentage go up or down last night? >> well, i think when you take the 58 to 40, mathematically it went down a little bit if you need 60%. i think the positive sign is we're looking at major primaries where donald trump is in position to reap large numbers of delegates if he can win. the fact that he got 47% of the vote notwithstanding this so-called ceiling that people have talked about on his support, is a positive sign for him as he looks forward to try to knock over those big dominos in states going forward. we're going to have a break for a couple weeks before big primaries. the next substantial one is wisconsin on april the 5th. but donald trump didn't have anything happen to him yesterday.

i wouldn't put the jeb bush endorsement in that category either. >> wisconsin. i don't even like the sound of that, john. >> why? oh, yeah. i'm sorry. >> you know why. >> that was as unbelievable a pair of daggers from one player. >> i know, i know, i know, i know, i know. so what did kasich get -- i saw he got, what, 10% in arizona or something. didn't rubio -- >> basically he the got nothing last night. >> rubio got more in arizona. didn't he have a higher number than kasich? what is that, three votes? is that true? >> i didn't actually see the early vote numbers. >> rubio had 13%, kasich 10. what did he get in utah? wenchts, because ted cruz

crossed 50%, he's if fine shape to get all the delegates. >> but i'm talking about kasich. i see him on all the talk shows. man, he's still really sure he's going to get the nomination. i guess they have to say that, right. once again, i think of baghdad bob. got him on the run, got him right where we want him. >> john kasich's strategy is simple. that is to stay in the race, all the way to the convention, have some delegates, count on donald trump not having 1237, and then counting on the delegates once they're freed from having to suppo support trump and cruz. people will look at john kasich and say, who's the guy of these three who could potentially beat hillary clinton, and he's hoping that judgment is him. pretty simple. >> yeah, well, okay.

>> polling in a general election right now truly doesn't mean much, but that's the argument. >> don't you need eight states where you want a majority? >> unless they change the rules. >> all bets are off if you don't have a first ballot. >> i know that those trump supporters are going to switch right over to john kasich when that happens. sign me up. all right. thanks, john. coming up, this morning's top business stories. we're going to get you up to speed on the biggest market movers. we'll do that right after the break. back in a moment. ♪ you're not gonna watch it! ♪

♪ no, you're not gonna watch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song.

welcome back, everybody. let's get a check on the markets. joining us is the head of macro and economic policy for merrill lynch wealth management. welcome to both of you. good to see you this morning. >> thank you. >> christina, why don't we start with you and talk about where we stand right how it. we dropped so quickly and so rapidly, so steeply. then we came back so much that a lot of people are trying to figure out, is this a pause in a bear market, or are we back on track in a bull market? >> seems like we went through a fairly healthy correction. certainly much of that was instigated by the fed decision to move in december. an initial visceral negative reaction that was followed by more ak secceptanacceptance, mo that the economy is improving. at the same time, we got some economic data. we went through a rough patch there. now things seem to be improving.

valuations are back to where they were, which is fairly fully valued. so i don't see much movement from here. probably a lot of volatility within a trading range. >> karen, do you agree? >> i do. i think a lot of it was just uncertainty. we kicked off with uncertainty in china. i think a lot of that uncertainty got cleared up in mid-february. since then, the markets have calmed down quite a bit. >> but do the marketing feel fully priced to you here? >> i think they do, yeah. >> so what would you tell investors to do at this point? >> well, i think you have to accept that we're going to have a lot of volatility this year. so there is a chance we'll see more movement, probably not as much whip saw and uncertainty as we've seen at the beginning of the year. there's probably more upside to go because the fundamentals are strong here at least. >> and fully prized with zero here and negative rates everywhere else. i don't know what fully priced

means. >> right. when we start to look attractive, our credit spreads look good. >> i look attractive? we all look attractive. >> thank you. i'll take it. >> yeah, no, and the equity market looks like it may be fully priced. >> there's no alternative. >> we spend obviously -- three hours yesterday talking about brussels. talking about it this morning. it's obviously a huge tragedy, a huge story. from an economic perspective -- and given what "the wall street journal" said today if you look at the calendar, so many of these things which oftentimes don't even get covered. i know it's hard to ask. do we have to see past that completely? >> i think we have to recognize there could be some short-term implicatio implications. this is a one-two punch after london. >> after paris? >> yes, excuse me. after paris, i'm sorry. we also have to worry about the

threat. they're saying they're going to hit germany next. that was some of the communication yesterday. so i think it will dampen consumer spending in the near term. we saw travel affected just by paris. so it's not nothing. of course, any loss of life is a terrible tragedy. but sadly, we're an environment where we're seeing a lot of terrorist attacks. we have that cushion -- >> built in. >> exactly. >> is that another situation that makes u.s. stocks look better than european stocks as a result? >> well, yes, we also have a very activist fed. one positive announcement out of the fomc is the policy prescription by fed members came down. the dots came closer to market expectations. so one less concern of ours was that mismatch between market expectations and the fed's policy prescription. >> activist fed heres but around the world too.

>> that's right. if i could jump in, i would say the ecb really pulled out all the stops a couple weeks ago. the bank of japan jumped into uncharted territory. the fed is, of course, kind of moving towards what the market had priced in already. so the market had been for a long time pricing in just one hike this year, maybe one and a half. the fed had been projecting full -- >> christina -- sorry. >> maybe only another rate hike in 2017. at the same time, the fed is saying is they're doing even more. so there's still a lot of gap to close further out. >> christina? >> well, i would just say one concern that raises is inflation. we want to be focused on inflation hedging strategies like tips just because there's that potential for inflation to create -- >> that's the first time i've heard that in a long time, somebody talking about tips. >> no, i think we need to worry about that right now. the fed has certainly come closer to the market than the

market coming closer to the fed. but we're seeing solid economic data in the u.s. we need to follow that closely. >> i want to thank you both for coming in. >> pleasure. thank you. >> thanks for having us. >> it's difficult, this whole thing, for just normal people. i can't get out of my mind, number one you have the loved ones of the people that are dead. number two, you have 200 people -- i get like the slightest paper cut, and it takes me -- for a week i feel -- think of the wounds these people are trying to recover from in the hospital right now. >> some of these bombs were packed with glass and nails. >> i know. and it's so -- for what? really, for what? you actually spend two years planning this just to make sure that, you know, you put people in that position. it's all messed up. anyway, we'll talk about it coming up. mourners in belgium holding a vigil for the victims of yesterday's attack. we'll get an update after this break.

and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models... ones that transcend channels and locations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business. the market.redict... but at t. rowe price, we can help guide your investments through good times and bad. for over 75 years, our clients have relied on us to bring our best thinking to their investments so in a variety of market conditions... you can feel confident... ...in our experience. call a t. rowe price retirement specialist or your advisor ...to see how we can help make the most of your retirement savings. t. rowe price. invest with confidence.

♪rugreen presents the yardley's. ♪ sfx: leaf blower dad! sorry. this is more than a lawn. this is a trugreen lawn. live life outside with trugreen, america's #1 lawn care company. spring is on. start your trugreen lawn plan today. trugreen. live life outside. in new york state, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world.

and in syracuse, where imagination is in production. let us help grow your company's tomorrow - today - at business.ny.gov

welcome back to "squawk box." our top story this morning, a manhunt is under way in brussels following yesterday's terror attack at the airport and at the metro station that killed at least 31 people. one belgian newspaper is reporting that the suspect that people were looking for has been apprehended, but nbc has not yet confirmed that arrest. meantime, the arrest in brussels remains shut down. the u.s. state department has issued a travel alert for americans traveling in europe, urging citizens to be vigilant whenever they're in public places or when using public transportation. meantime, new details are coming in on the men that are believed to have carried out the attack at the brussels airport.

let's get to hadley c gamble, who's standing by in brussels. good morning. >> reporter: hey. good morning, joe. as you mentioned, there's a report in the belgian press that they have managed to capture one of the prime suspects in this brussels international airport bombing yesterday. he's the third man, najim laachraoui. he's a belgian national. he was known to police prior to these attacks. we also now know the other two men pictured in that cctv footage picture were brothers. we also know they have police records as well. they were arrested back in 2010, 2011 on separate charges related to possession of weapons. it's interesting to note that belgian authorities are taking this very, very seriously, and a lot of criticism for them as to what's been going on and whether or not that 400 million euros they were given after the paris attacks have done much good in terms of making this city and country more safe. we have to remember, of course, that there's more to this than

meeting the eye. what happened over the weekend, the arrest of salah abdeslam, you have to remember that this is a person who was arrested in connection with the paris attacks back in november. now we understand that the prime suspect in this case, in this manhunt, najim laachraoui, was also connected to this man as well. there has been dna evidence found of this. we understand that under an alias, he was traveling with him as recently as september of 2015. we also understand that najim laachraoui was also in syria around 2013 as well. so just to give you an update on the situation here on the ground, you can see behind me hundreds of people gathered coming to pay tribute to the victims of yesterday's attacks. vigils were set up overnight, candles, flowers, cards, everyone working very, very hard not just to stay vigilant here in this city but also to pay tribute to these victims. and of course we're hearing more and more from belgian authorities from what they say is what they're doing to keep the city safe. questions coming more and more

frequently now. how did they not know this was coming? when they heaven said over the weekend that another attack was probable. guys? >> a lot of questions, hadley. and how deep the network goes, which is kind of still frightening for you and people in brussels. hopefully the authorities are on the case as much as they can possibly be. >> hopefully this news is correct, that this other suspect has been picked up today. >> the analysis yesterday was you keep finding more and more layers of support networks that you think you've got everyone, then you realize, wait a minute, here and here and here. >> it almost sounds like the intelligence over there was terrible. >> they don't have money or manpower. we're talking about a lot of people. >> one of the things we should talk to tara or hadley about is how the belgian people feel about all the stories that have

come out about the cops' approach. >> they don't have money. >> yes, but there's been some pretty critical coverage locally there and obviously globally. >> how many agencies are there? >> they said there were six police departments alone. >> the eu is there. then you have the local brussels people. you have nato. even during 9/11, no one was sharing information. >> my guess is that will change quickly. the german interior minister has already said they need to be doing this more actively. there's a meeting, i believe, scheduled for belgium later this week for interior ministers. >> when we come back, we'll take a look at counterterrorism measures here in the united states. we'll talk to congressman will hurd. need to hire fast? go to ziprecruiter.com and post your job

to over one hundred of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. and now you can use zip recruiter for free. go to ziprecruiter.com. (patrick 2) pretty great.ke to be the boss of you? (patrick 1) how about a 10% raise? (patrick 2) how about 20? (patrick 1) how about done? (patrick 2) that's the kind of control i like... ...and that's what they give me at national car rental. i can choose any car in the aisle i want- without having to ask anyone. who better to be the boss of you... (patrick 1)than me. i mean, you...us. (vo) go national. go like a pro. we believe in the power of active management. anagement, we actively manage with expertise and conviction. so you can invest with more certainty. mfs. that's the power of active management.

♪ no, you're not ♪ yogonna watch it! ♪tch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song.

welcome back to "squawk box." u.s. equity futures at this hour looking marginally up. dow looks like it would open 13 1/2 points. the s&p 500 up a little over one point. meantime, we're going to get the latest reaction out of brussels. joining us now is congressman will hurd, serves on the house homeland security committee. good morning to you, sir. >> good morning. >> so a lot of work being done even in the past 24 hours here in the united states in terms of locking down cities and folks stepping up security. when you look at the fundamental problem, though, about what's really happening here, you think it's something in terms of our security that we need to be doing here or abroad? >> i think when you look at the problem, the problem is abroad. the problem is our lack of a strategy against isis in iraq and syria. right now at home, department of

homeland security, tsa, cbp are gathering all the data they can get from our colleagues in brussels to make sure that we harden our defenses, we look and see if there are any tactics, techniqu techniques, and procedures used over there that may be used back here and are giving extra scrutiny to folks coming from that part of europe. i sit on a task force that looked at foreign fighters going into iraq and syria. we learned a number of issues, like our european colleagues were only checking one out of every three travel documents. they weren't sharing the kinds of information on suspect terrorists that we had been sharing with them. and we took steps here in congress to strengthen legislation to force compliance. we passed legislation two days ago, the counterterrorism screening and assistance act, which made sure we doubled down on supporting our european allies. today we're going to be looking at introducing new legislation

on things like how you counter the ideology of these radical islamic extremist terrorists. >> any time there's an incident like this, it makes you think about your own security here at home. obviously you mentioned the tsa earlier. you go to an airport, it's a very difficult and sometimes arduous process to get through the line, if you will, and get through the security process, but you go on amtrak here on the east coast, for example, and you get on at penn station and go to washington, d.c., and they don't even ask you for a driver's license. do you theink there should be a shift in how we do that? >> i think there should be risk-based and intelligence-based security measures. i spent 9 1/2 years as an undercover officer in the cia. i was the guy in the back alleys at 4:00 in the morning collecting intelligence on threats to our homeland. we need to be making sure we understand what those threats are. once we learn about those threats, how we can harden our defenses against those threats.

because this is a big place, and i think we can always be doing more. one of the things that american public should rest assure is that the men and women in the military, our law enforcement agencies, our intelligence services, and our diplomatic core, keeping americans safe is their number one issue. every day they wake up and are putting themselves in harm's way in order to protect us. >> congressman, one of the complaints we've heard from former cia officials is that we don't have the willpower to put people in these positions to actually gather enough intelligence in places like iran and places like syria. do you think that's the case? how confident do you feel in our intelligence on the ground in those areas? >> i do believe that's the case. i know the men and women in the cia are eager and willing to go in. one of the things that we need to do is we need to be doubling the amount of human intelligence that's coming out about isis in iraq and syria.

one way you do that is put people on the ground. one of the problems that we're seeing is that you have the russians running around syria. you have the iranian irg quds force, which is their special forces. that's preventing us from doing things there. all this is connected. the russians in syria are protecting bashar al assad. he's the president there. the reason that you have a humanitarian crisis in the region is because of bashar al assad. his policiesnd killing his own people indiscriminately has caused those 4 million refugees to go throughout europe. it's created the environment in which isis has grown up. so this is an issue that we need to address and we need to stop. we need to -- it's not for the lack of ability to do this job. it's the lack of the political will at the top from our commander in chief in order to go in there, solve the problem, put the terrorists on the run. >> congressman, supposedly these guys have moved to burners now.

they throw away these phones after one phone call. or let's say we get to a point where there's a communication system that there's nothing left -- there's no evidence of anything ever having occurred. how are we going to replace that key part of surveillance when that's not available to us anymore? and how do we get the manpower to actually infiltrate networks and things like that? seems like it's going to get much tougher. >> it's a tough job. but terrorists have been using burner phones since i was in the cia. there's ways to track these people. you know, they create patterns, etch though you may be using a different phone. that's why it's important to develop sources. the difference -- the folks in isis, we kind of know where they are. they're not hiding in caves the way al qaeda was in afghanistan. so it takes discipline, it takes time, it takes manpower. the reason the cia is considered the collectors of last resort is

because it's really hard. but that doesn't mean that we don't focus on that job. >> congressman, we got to go, but you've been very critical on donald trump on border control. my question is, if he's your nominee, will you vote for him? >> as we learned last night, there's still a lot of votes out there to take, and we'll cross that bridge when we come to it. >> okay, congressman. we appreciate it. thank you. >> so you meant him as a republican. i thought you meant you as a republican, will you vote. did you mean him? >> he's a republican. >> you, him. okay. watson, you sound like a fan. millions look to you for advice. i know... i can't believe it. i am learning to analyze social media to spot trends and predict demand. sounds like you spend a lot of time online? i constantly absorb online content to follow shifts in pop culture. so... you're learning to think like a teenager? yes. how am i doing? well... uh...

yes. how am i doing? ithere was 14 of us in a four bedroom apartment. to be the first kid to buy a house... ...it's a very proud moment. whatever home means to you, we'll help you find it. zillow. the first stock index ♪ (musiwas createdoughout) over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average.

it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities.

we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

. the latest new models on display at the new york auto show this week and porsche is giving an unexpected twist to its red hot car. phil lebeau joins us live from the auto show. i like it better than that other on one. >> reporter: is this porsche north america ceo in front of the new four cylinder macan. you being a european, the aftermath of brussels any concerns on what exact it may have on the market?

>> we shouldn't think about market or business down tourist. our thoughts should be with the families and show our sympathy. it is terror that we're experiencing here and it is horrible. >> reporter: we will be throughout the morning talk about what's happened over in europe but here at this auto show the macan you are pushing the four cylinder porsche. four cylinders in a porsche is unbelievable. do you think the demand will thereabout >> we're sure the demand will thereabout. if you drive the car, if you look at the peak performance indicators like zero to 60 in 6.1 seconds, the top speed over 140 miles per hour it behaves, drives like a porsche and a down sized engine, four cylinders but you won't miss anything. >> reporter: you were talking before we went on you are concerned this industry is perhaps going over the edge in terms much leasing, pushing

leasing. are we certain to see lack of discipline in this industry? >> it's not discipline. it's the market that rules. demand and supply and we have to be careful we're not oversupplying our market at the moment. so this is what we have to take care of. >> reporter: next couple of years one to watch. >> yes. >> reporter: yes, joe that's a four cylinder macan behind me. four cylinders. >> four really good cylinders. thanks. coming up when we return the latest from belgium on the manhunt for the suspects in the airport bombing and implications for u.s. security. we'll talk to george mitchell when we come back. back in a moment.

hundreds of crash simulations. thousands of hours of painstaking craftsmanship. and an infinite reserve of patience... ...to create a vehicle that looks, drives and thinks like nothing else on the road. the all-new glc. the suv the world has been waiting for. starting at $38,950.

in new york state, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. like in rochester, with world-class botox. and in buffalo, where medicine meets the future. let us help grow your company's tomorrow - today - at business.ny.gov ♪ no, you're not ♪ yogonna watch it! ♪tch it! ♪

♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song.

cylinde cylinders. breaking news this morning, reports that a prime suspect in the belgium bombings have been arrested. stocks holding steady at this hour amid geopolitical uncertainty. housing sector is in focus as we await housing mortgages and other data. big wins for donald trump and hillary clinton in arizona while ted cruz and bernie sanders takes utah. the second hour of "squawk box" begins right now. welcome back to "squawk box" here on cnbc, first in business worldwide. i'm becky quick along with joe kernen and andrew ross sorkin. there is a movement silence that's about to take place in brussels right now in remembrance of yesterday's terrorist attacks. more than 30 people lost their lives and over 200 were injured. again we're still looking at all the details and getting more on

this. we'll run you through everything that has been happening to this point when we observe this moment of silence. right now we'll take a look at what's happening live in brussels.

>> we'll. continue to northern the scene in brussels. let's look at the futures. you'll see this morning, we're looking at what's been happening. yesterday the markets ended mixed with the dow down just slightly. this morning thing are relatively flat. yesterday was one of the weakest volume days of the year. the other weak dies we've seen this year was last week ahead of the fed decision. right now the dew futures are up by 8.5 points. s&p futures are flat and nasdaq up by four. european markets after yesterday's terrorist attacks the dax is up by 1%. the cac is up by .2 of a percent and the ftse is flat. we've been keeping an eye on oil prices. that contract flipped yesterday. the macon tract is down by 1%. still well above $40. there's an all out manhunt

under way as we speak for a suspect spotted on surveillance cameras and one report says he's been arrested. these are the men that belgium prosecutors say were responsible for yesterday's atrocities. the two in black probably blew themselves up with a suitcase bomb soon after this image was recorded. both are wearing gloves. on their left hand, some say to hide detonateors. the man in the hat was the target of an urgent manhunt and is the one that those reports say he was apprehended. tuesday's attack was the first of two as the explosion later rocked the metro. total death reaching 2340u with more than 200 injured. isis claimed responsibility for the attack which took four place after the arrest of brussels in a prime suspect in the paris attacks. unused explosive device was found at the airport and a man was seen running away from the terminal after the explosions.

blasts were probably in preparation before friday's arrest of a locally based french national saleh abdelslam whose prosecutors now accuse of being involved in a key role in the paris attacks. in the meantime police raids are happening across belgium as europe is on high alert in the aftermath of yesterday's bombings. we want to bring in politico's reporter. she joins us live from brussels. what we want to try to understand this morning is the connection, if you could, between the bombing suspects who reportedly have been arrested and what took place in paris and in those attacks. >> reporter: sorry, i'm having a hard time hearing you because of the clapping. can you repeat that? >> to the extent that you tuned connection between the paris attacks and this national who has been arrested, if you could try to connect the dots for us.

>> reporter: sure. well we know saleh abdelslam was a friend of the two brothers, the el-bakraoui brothers who were involved in the attack yesterday at the airport and downtown at the metro. they are allof moroccan descent. they were colluding that when the raid happened last week, the home of the two men who were involved in the attacks yesterday, the two suicide bombers, the brothers, it seems that there are a lot of -- there were multiple brothers involved in these attacks, the paris attacks in november to now. and this network is a lot more tight-knit than the belgiums and french predicted. >> a lot of coverage here as been critical of the intelligent failure as well as underinvestment in brussels and

belgium broadly. what's the feeling there about that? what kind of conversation do you hear on that topic? >> reporter: i know whenever i'm speaking with people who live here -- i've lived here for the past year. there's a feeling that belgiums were ill-equipped for this terror threat. before fairs attacks they were spending 50 euros a year on counter intelligent resources. they only completed 120 raids. they have a lot of privacy laws that are different in the united states. they can't conduct raids in the evening, and they've been unable to manage this sort of situation. then you have the french prime minister saying europe has had its eyes closed for years to this. so in a way that is the situation that's been in brussels and a lot of people are saying well where is our taxpayer money going, why aren't we safe, why aren't they using to counter radical terrorism in

western europe. >> we'll leave the conversation there. we appreciate your perspective this morning. thank you for that. in the meantime we want to get more on the aftermath of the attacks. eamon javers joins us with more from washington. >> reporter: good morning. let me fill in a little bit more detail on the men that belgium authorities say were involved in this attack at the airport just yesterday. belgium officials releasing this photo showing the three apparent attackers here. the two men on the left are cha khalid el-bakraoui and ibrahim el-bakraoui. they are both wearing a single gloft on one hand. both men have been convicted of violent crimes in the past and were known to police in advance of this attack. police sources say the man on the right in the light colored clothing wearing a hat and glasses is najim laachraoui, 24.

he's a suspected jihadist who is also suspected of involvement in the paris attacks. there are conflicting reports out of belgium right now. we want to be very careful with this. conflicting reports some suggesting that najim laachraoui who escaped the attack on tuesday may have been arrested this morning in belgium. we're working to sort all that out and confirm exactly what his status is. as you reported there's a manhunt for him since that attack. not clear why he didn't perish in the attack, whether that was intentional or some sort of malfunction of the attack, the bomb itself. that all to be sorted out here as we move forward over the next hours and days. but meanwhile brussels, we're seeing a city here trying to get back to normal as you saw with that moment of silence. they are working as hard as they can to get their city back up and running. here in the united states folks are on high alert. no indication of a specific threat here, guys.

>> great. thank you. joining us now to discuss ramifications, george mitchell who authored the mitchell report on violence in the middle east and one thing that's dome the fore senator, is not just the current refugee problem that's hurting merkel and others, but the existing number and sort of isolation of certain muslim enclaves all across europe and suddenly they are looking around and saying we don't know how to keep our entire continent safe at this point. is that fair? >> it is. it's a product of decades of different policy that we have fold in the united states and a few other countries. in the u.s. we've taken in, of course, many more immigrants

overall than any other country but we've had a policy of assimilation. we've encouraged people to become citizens. that's not been the case in most countries around the world other than the u.s., canada, australia, new zealand, probably. as a result there's been a huge ghettoization of unassimilated groups and thend, of course to be poor, lacking in radiation, resources and opportunity. i think the european countries have begun to change their policies in recognition that this is an unsustainable way to proceed particularly given the tremendous internal conflicts within islam that are producing these kind of radical extremists who will commit any form of murderous act to make their case and get their point across. i think it's going to be a real problem. the balance in every society particularly democratic societies between individually better and collective security is always changing, depending

upon the circumstances that exist. and i think you'll see in europe now a shift towards a greater emphasis on collective security, even at the expense of some degree of individually better. we ourselves go through the same struggle and debate and political decision all the time and i think that's going to ratchet it up even more now in europe. >> in this country we're still well aware of, you know, perhaps not everyone feeling the same opportunity, but i mean i've heard for years that there are certain, as you said, in certain getos in paris or other european cities where those people won't even be considered for a job. they are different, a different class of citizens. they are second class citizens of the country and no one even hides that notion and i don't know how you could reverse that. >> well, it's a long and

difficult process, of course. but it's true in many of the major european countries. the british have done an increasingly better job at full assimilation and falls participati -- full participation in public and private life. you'll see a different circumstance. right now 7.5 billion people on earth, one in five is muslim. that's about 1.5 billion. towards the middle of the century when the population reaches near 10 billion one in three will be muslim. that's about 3.5 billion. that was the total population of the world as recently as 1970. islam is going through tremendous internal stress. the sunni-shia divide has existed from the very beginning. it was the result of a political struggle for control following the death of the prophet mohamed. there's more recent stresses and strains. everyone knows the complexities

of the different and competing sides in syria and iraq, yemen and other countries and so the political order imposed on the middle east by the british and the french primarily at the end of the first world war has now collapsed, and what is emerging is a turbulent process that will continue for a long time to come. >> senator mitchell we just spoke with a politico reporter who is in belgium and she talked about some of the difficulties they had you can't conduct raids at night. there are six police departments, not a lot of cooperation between many of these agencies. at the same time, it's almost impossible to stop someone who is willing to strap a side vest on and walk into a situation and lose their life so they can take other people's lives. i just wonder how much better of a situation we are in here and can we prevents these things from happening >> well there's never been a time in human history when there

weren't acts of violence that would be comparable to be terrorist acts. the difference now, of course, dramatic increase in population around the world, revolution in communication, travel, technology, and particularly the television that brings it live into almost every family home in the world. so this isn't a case where you're going to completely stop it. every state in america has laws against murder. no one expects murder to end because we have those laws. this is a condition of human nature that will continue. however, i think there can be much more effective intelligence than has been the case particularly in europe. you mentioned one example of privacy laws. i think the debate there will shift gradually towards more strenuous and hopefully effective measures some of which we adopted in this country and keep refining and improving with every one of these horrific acts

there's a lesson to be learned. i think the belgiums are learning one now and we hopefully have learned number to perhaps not completely end them. that would be an unrealistic prediction but to better improve our capacity and one way we can do that incidentally is greater cooperation with the europeans including among the europeans themselves in intelligence gathering and other forms of activity that can help to prevent such actions. >> senator, you talk about more cooperation, better cooperation, both the united states with europe and within europe but at the same time there's a huge debate that happened in britain yesterday, some called it disgraceful to talk about a brexit in the context of what happened in belgium. does this bring europe together or do you think it leads to a greater fracture? >> i think it's trending towards greater fracturing and it will

take enormous political leadership to keep it together. the european union was one of a series of measures taken after the second world war, led by the united states including, of course, nato, political military economic institutions that were created to prevent another major land war in europe. keep in mind in 75 years preceding 1945 there were three major land wars in europe, united states intervened 2019 of them at a cot of hundreds of millions of lives and billions of dollars. we led the effort after second world war to imbed these institutions into a series of alliances to reduce the likelihood of a conflict. the european union is really a peace project and something that i think they have to keep in mind. there's a tendency nowadays to view it purely in economic

terms. but it's a very important factor and i think it would be disastrous for them and for us if the european union breaks up. might i just add what i said about cooperation should extend around the world. to the arab countries as well. to large muslim countries like indonesia and to the pacific nation with whom we also have good relations. >> back to me now. this is joe, senator. it's not like things were going so swimmingly economically either. we've seen so many, you know, trying to use the same currency with a different, you know, no single fiscal authority and then you throw in this. freely crossing borders and, you know, merkel was one of the biggest proponents of staying together. i think you're right. economically there were problems now this is a whole new issue that might even be more pressing to individual countries to say who needs this. >> well, that's absolutely right, joe and you have to keep

in mind the difficulty that europeans have. they now have received millions of immigrants primarily out of syria and afghanistan who they have not vetted. these are refugees. hundreds of thousands at a time. we have a big debate in this country about accepting relatively modest number of syrians who have been held in camps in the region who have been the subject of inquiry and investigation for up to 18 and 24 months. and we're taking a very small number. the europeans by contrast have been receiving involuntarily, of course, millions of people with no vetting whatsoever adding to the already serious problem that they have spoipt an extraordinarily difficult situation for them and i think you're likely to see tragically more of this type of event before it can be brought under control. >> senator, thank you. we'll see what happens with the brexit and then that won't be the end either. thanks. appreciate your time this

morning. >> thank you, joe. when we come back ted cruz gets a new endorsement this morning. take a look at the futures. this morning things are relatively flat. dow futures up by 13 points. s&p futures up by 1.5. driver-a. it recognizes pedestrians and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash. the 2016 e-class. now receive up to a $3,000 spring bonus on the e350 sport sedan. we believe in the power of active management.management, by debating our research to find the best investments. by looking at global and local insights to benefit from different points of view. and by consistently breaking apart risk to focus on long-term value.

we actively manage with expertise and conviction. so you can invest with more certainty. mfs. that's the power of active management.

♪ no, you're not ♪ yogonna watch it! ♪tch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. . let's do something a little

less weighty, just temporarily here. talk krispy kreme. their revenue fell short. doughnut change projecting full year profits that are low. international same store sales will remain negative. at that concert in london with adele there's people walking around selling boxes of krispy kreme doughnuts. >> there's a krispy kreme store. >> who would buy a box. i took all i could not to buy a box of those and take the home my seat. >> because they are so much better warm. >> if i was marlon brando -- >> you would eat whatever you wanted. >> i would have bought a couple of boxes and sit in a bathtub full of milkshake. i've said that before. >> thank god for your work out.

>> pass out with sugar. red hats fourth quarter results beating estimates. subscription revenue jumped but billings or deferred revenue came in light. five below report strong that beat forecast. the retailer is projecting 2016 results that's at the low end. analysts estimates stock is down. the company does expect annual profit and revenue growth will grow 20% through 2020. >> coming up the manhunt going on in belgium which officials believe he escaped. there's reports he's apprehended but nbc has not confirmed that yet. "squawk box" will be right back.

they may want the latest products and services, but they demand the best shopping experiences. they're your customers. and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models...

ones that transcend channels and locations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business. intensely-flavored.. colorfully-diverse. beautifully-misshapen. cultivated for generations, it's the unexpected hero of any dish. when you cook with incredible ingredients... you make incredible meals. fresh ingredients. step-by-step-recipes. delivered to your door. get your first two meals free blueapron.com/cook. the first stock index ♪ (musiwas createdoughout) over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks.

but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks. gop presidential candidate ted cruz has picked up the endorsement of former opponent jeb bush. jeb says cruz has the ability to appeal to voters. bush saying republicans need to make this election about proposing solutions to the many challenges we face and i believe we should vote for ted as he will do just that much bush also

accused donald trump of bringing divisive and vulgarity. in yesterday's voting trump won arizona while cruz won in idaho and utah. when we come back an update on reports of terror suspect arrest. as we head to a break take a look at u.s. equity futures. we're in the green. and nic denton on the hulk hogan ruling. understandsinsurance company the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. e*trade is all about seizing opportunity. so i'm going to take this opportunity to go off script.

so if i wanna go to jersey and check out shotsy tuccerelli's portfolio, what's it to you? or i'm a scottish mason whose assets are made of stone like me heart. papa! you're no son of mine! or perhaps it's time to seize the day. don't just see opportunity, seize it! (applause)

. welcome back to "squawk box". let's get you up to date on the aftermath in belgium. is manhunt is under way for the third suspect. two brothers blue themselves up at the brussels airport. third suspect's bomb didn't detonate and he escaped. we have conflicting reports whether he's been arrested. brussels airport remains closed today and it will be closed tomorrow as well. two bombings at the airport and a metro station killed 31 people now and injured several hundred

others. a moment of silence being held just a short time ago for the victims of yesterday's attacks in brussels. european markets showing resilience. let's go to wilford frost. he has a look at how the european markets are doing today. >> reporter: muted performance yesterday from european markets. resilience. today not just mutted but bouncing back. we have green across the green particularly for dax in germany up 1% because the euro is down .4% this year. the tech company is top of the pile. the airlines, they were down to the tune of about 2% to 4%. those losses aren't being extended as you can see. mixed performance for those four key airlines that were down yesterday broadly flat as a net effect. now one of the other big stories was the pound which sold off more than 1% in the face of

elevated brexit fears following those terrorist attacks. we got it falling again today by .1%. you can see that sharp decline yesterday. i want to put that sharp decline in perspective. we look at the pound year-to-date we'll see post-brexit data announcement loss were about ten days ago. more at 1.38, 1.39. while we sold off yesterday we're still above that level. in european trade on a completely different note quit look at credit suisse. they announced further cost-cutting measures and warned the possibility of a q1 loss and shares were of significantly at the open as you can see. a big selloff. they have bounced back as the ceo made comments of reassurance. another reminder even when we get away from the geopolitical concerns in europe, the fundamentals, banking sector very much in the eye of the storm. credit suisse bouncing back during today's trade. >> thank you very much.

this morning we're learning more about two terrorist bombings in brussels. joining us now with their analyst a member of the council on foreign relations and founder and director of fordham university center on national security and israel's former deputy of defense. he's currently the ambassador to the united nations and welcome to both of you. bass do, let's start with you. israel, obviously, no stranger to terrorist attacks like these but what do you think now that it's spreading throughout europe. >> unfortunately we have experience dealing with terrorists and we turn to our friends in europe we stand with you. you have to develop more clarity, no justification, no excuses, no self-blaming you have to fight terrorism. you do it with offensive measure, basically building u.n. intelligence. requires time, resources, a lot of effort. you don't do it in one day but you have to do it. you need to use technology. we're doing it every day. we do it under the framework of

the law and we are successful. and the second measure, when you go to the terminal at the airport you're being checked twice before you get to the check in area. in the u.s. and europe you get checked only when you approach the gates. that's what happened in brussels and los angeles in past. you have to start the checkpoints before people enter the terminal. also it's a sensitive issue here in the u.s. but it works. common sense. if someone is 22 years old, coming to board a plane maybe you want to check him, not check a grandmother who is 85 years old. you do profiling it allows you to get the intelligence and to minimize the risk. >> although the issue with profiling in the past has been not only the pc concerns around it, but when they know, when the terrorists know you have a particular profile sometimes they change and sometimes put in people who is not in the profile.

sometimes a female suicide bomber. >> there's no guarantees. if you have a few checkpoints dynasty properly it allows you to apply technology and see the reaction and today we're capable in israel to do that. we had a bad history in terminals in israel but in the last century we were able to protect our citizens and today we have a strong democracy, we live the good life. strong place like here in new york but still apply more security measures. >> cane, we know there have been a lot of recriminations about brussels preparedness since there was so much chatter and an attack was very likely in the works. when you think about their state of preparedness is the ambassador right these types of steps are very necessary? >> well, actually, if you look what we now know that they knew, they knew the names of the individuals. they knew the neighborhood in which they lived. they knew their group of

conspirators. the real question is why didn't they act on the knowledge they had. this was not a matter of not profiling people. this wasn't a matter of lack of information they should have read and analyzed. this was a matter of inaction, not taking it seriously enough, and the question is really why is that the case? why was there a difference between the intelligence they had, the knowledge they had and how they acted? >> we spoke with a reporter from politico who is on the ground and she mentioned raids are not allowed to be done in the evening in brussels which was news to me. how much of this the system that's put in place, how much of this is keystone cops and how much of this is a situation where people may have been protect by the neighborhoods and people in those neighborhoods. >> it's combination of everything. one of the things that a former cia analyst or a couple of them has said in the past day sore that there's been an overreliance on certain kinds of surveillance as opposed to human intelligence. that there's been a sense of not

really using all the resources that are available and i think that was a good point. the european union was created for economic sharing. what about security sharing? one thing that we've seen here is that the security sharing needs to be better and it's not just about information it's about best practices. what are they doing in london that they are not doing in brussels. what is it about being an international capital that didn't make them think they had to be more protect. >> in reading what authorities in brussels were saying, they were -- i felt, almost some elm path -- empathy for them. they said we're overwhelmed and inundated. you have 50 people on your watch list and you want to put those 50 people on 24 surveillance with human intelligence eyes on these guys. what if it's not 50 what if it's 500 or 1,000, 2,000. who pays for the overtime for these policemen or agents to

watch what's going on. what faits number that's so large it's absolutely impossible to do it. >> that's at that really good question. there are a couple of answers to it. one is that what we found since the beginning of the war on terror is that more is not necessarily better. that what you really want are intelligence and law enforcement agents that are trained and israel has done a lot of this, are trained to really see the signs so that they can narrow the group of suspects. that's one thing. another thing is allocation of resources and money. one thing that was said in the wake of the brussels attack is how small their budget was for counterterrorism. so you don't want a counterterrorism situation where you say there's a vast amount of people that we have to be surveilling all the time because that's not what we know. they are individuals who are linked to one another, who are, should be the suspects, who we need to follow or who law

enforcement needs follow and it's that specificity and that focus that's the best counterterrorism measure. so it's a combination of all things that you mentioned. >> europe was so safe, i think that's part of it. they are living in a world from 20 years ago where, you know, didn't have muggings. you could walk anywhere at night in paris and they are in that mindset. it's not like that any more. >> they need to spend money on paying a little more attention to how they deal with their immigrant populations whether arabs or muslims or whoever and learning there's something to be said for integrating their communities of all sorts. it seems that this is one-quarter in which they have fallen down particularly over the last couple of decades. >> ambassador, in terms of integration, that's another long term, your mentioned the security measures don't happen overnight n-at the integration which has been a criticism of many of these eu countries with their immigrant populations for years and years and years, that doesn't happen overnight either.

>> it will take a while but can you not go into certain neighborhoods or making arrests at night. that's a joke. when you fight terrorism you go in day, you go at night. >> the quality of life. it's ridiculous. i don't want to disturb the neighborhood. >> some neighborhoods if you go in france and belgium the police will tell you we don't go there. once you don't go there you allow the cells to develop. >> you talk about sharing information, after 9/11 it took several years for that to actually -- >> shows still -- >> you fight terrorism. you have to understand that it's not one shot. it's an ongoing process. in the future they have to have counterterrorism. from now on it won't be finished in a year. >> one thing table to do this when you have a smaller nation and police your borders very carefully. do you think the idea of an eu with open borders can continue to exist

>> they've to evaluate the policy. today you feel someone getting to the shore of turkey within a day can be in france or belgium. it's unacceptable. they have to change it. >> i'm not asking an actual question but is israel safer than many places in europe now >> i think we are more aware of that. we are safer because we're aware of that. we developed the technology. you are checked before you board a train in israel. still the train leaves on time and we go to work and don't feel it. >> ambassador and karen we appreciate your time today. >> thank you very much. coming up what traders will be watching in today's trading session. the futures right now are indicated up 24. so "squawk box" will be right back.

the first stock index ♪ (musiwas createdoughout) over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks.

. check out the markets. scott nation chief investment officer of nations shares, also cnbc contributor. so weird that you joined a company and your name is nations and then the company is called nation shares. what are the chances of that -- that's like arm and hammer buying arm and hammer.

isn't at any time same thing? >> we want to call it kernen shares but that was taken. >> it's your firm. i get it. wow. you're doing well. so scott, looking around and is this for the market because for all of us this is what we're going to talk about and it's just so front and center that it can even move this crazy election off the front pages. so, obviously, this is what we'll be talking about for days and rightly so. is it the main impetus now for moments in any of the financial markets or is it something else? >> no, i don't think the headlines are what is going to move our markets right now. and that's just as well. with you have to cover it. fortunately it's not the only news that we have going on right now and i think here in the united states traders will at least hear they are happy that our markets are congratulations back to normal.

we've had very little volatility this week after a very volatile start to the year but we're going to pay attention to two things this morning. one is this dollar because it's the manifestation of the market's expectations for fed rate increases going forward. last week it seemed like we had two, the week before that four seemed certain. rear now goingd up with three. we'll end up with one in each of june, september and december. the other thing we'll pay attention to is nike earnings. given what crude oil and gas lynn prices have done over the past year you would think nike would be the poster child for knocking it out of the park when it comes to revenue and revenue disappointed at nike. earnings beat but revenue was disappointing. i think those two things we'll pay attention to. >> if we were -- it's difficult if we had like -- i guess you can connect the dots whether there's a slow down in europe based on people, you know, staying at home. what does it mean for the eu breaking up down the road.

what does it mean for a flight to quality and safety. there's ways that this is important but i think it's just rich that you come back to how this might affect -- it's about the quarter point and where they move again. they should never have gotten so involved in our lives to where everything we talk about is based on what the fed does. no way to run an my. >> i don't disagree, joe, but what are we going to do at the end of 2009 and 2010? we were in a situation where the fed was the only entity with a big enough balance sheet to bail us out. >> six years later. go away. all right. thank you, scott nation. i know you're with me. >> when we come back $140 million courtroom smack down. media company gawker taking a hit from hulk hogan after a high-profile lawsuit. gawker's founder says he'll eventually prevail. denton joins us next.

"squawk box" will be right back.

actions speak louder. something we'll show you. through small things. big things. and spur of the moment things. sheraton. ♪

♪ no, you're not ♪ yogonna watch it! ♪tch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. >> welcome back to box. hulk hogan slamming gawker, the jury awarding him $115 million in compensatory damages and adding another $25 million in punitive damages. jurors found who began's privacy was violated after gawker posted his private sex tame on its

website. joining us now the founder and ceo of gawker. nick denton. let's start with the very basics on this which is why do you think you lost and it's such a high price. >> i think the jury did absolutely want to send a message and want to send a message that privacy is important, privacy of private individuals is particularly important. generally they did say there needed to be a clearer line between privacy and free press. >> did you know it was coming? this moaning's "new york post" saying that hulk hogan who saw in the courtroom when this all happened said he scared the hell out of me. he's talking about you. said denton and i had a stare down. he scared me staring at me, man. he just sat there steering. it was right after his cross-examination. he stood up and stare like he was going to call me out at a wrestlemania. . >> he always has been using these wrestling matches an as a metaphor for this struggling.

i'm not a wrestling fan. i understand there's many rounds. this is one of several rounds. there's a few more to go. >> you publish ad note yesterday which described a whole series of pieces of evidence that did not come in to the case that you think should have. you say it turn out this case was never about the sex on the tape that gawker received but about racist language on another unpublished tape that threatened hulk hogan's career. >> the state appeals court released these documents on the final day of the main trial and they show among other things that bubba clem the guy at the center of this, the man whose wife hulk hogan slept with said hulk hogan knew about the tape and says also that hulk hogan send him, bubba clem a text message saying basically what he really was worried about was this other tape with racial slurs on it. >> you mean the love sponge.

it gets too weird. you say hulk hogan and if you were to say then the love sponge -- it sounds too ridiculous. you can't do it. >> i never really expected to be in this position. gawker has seven sides. we cover lots of topics. >> do you know what love sponge is from? is it a contraceptive sponge. >> i don't want to think about it at least not this early in the morning. >> what is off limits these days? >> i think you can't say for an absolute rule but a private person having sex with their partner in the privacy of their own home the conditions would have to be absolutely extraordinary to justify a story like that. this wasn't a case like this. you had a major celebrity who talked about his sex life, even after the sex tape came out he was joking about it. and it wasn't even in his own

house. it was with his best friend's wife in the best friend's house. those circumstance are a little bit different. >> having kids in that situation you described would be absolutely extraordinary for that to actually occur, i think. people having sex in their own house when you think of that. it would be extraordinary, nick. >> nick, let me ask you. look, i personally feel a little uncomfortable some of the things tmz has done in chasing celebrities around. people wonder if we pushed it too far. would abductor publish that video today? >> that's a great question. i don't know if you saw a great piece in the "new york times" talking about how the internet has self-corrected on this. look we all respond to our readers. that's the way the system is supposed to work. when you get criticized, we get criticized a lot. we do controversial stories and we get criticized.

people adapt. >> meaning the line has come back in. >> when the jennifer lawrence photographs went online, pretty much everybody including us was like you know there's no real story here. like to cover this. and with great photographic detail would be -- that would be absolutely purely -- >> it's hypocritical not to say if there's demand for something i won't be the one that addresses it. being part of the media even here, you hear why are you covering donald trump. why are you doing this so much. the only reason you're doing this there's viewers or readers that's what you're appealing to. should someone step on a higher moral ground on principle and turn into pbs with no ratings. is that what you should do >> we have to confess we're all slightly hypocritical. >> i think so. >> we watch this stuff. we watch the coverage of donald trump. we read stories like the story published back in 2012. but we don't want to be out

there in the public saying that this is an absolutely news worthy -- >> journalism with a capital j. >> what happened to the business story of gawker. you owe these people of $140 million as of now. >> i feel poorer. >> you have to post a bond of $50 million. >> the rules are that. this is a losing case. has been through the state appeals court. >> you can stay in business. >> yes. we took some outside money. the verdict has been -- the judgment has not yet been handed down and then another appeals court hearing. i know way too much of the american legal system. >> how much did you offer in the settle. >> the judge suggested and the court mandated on one occasimed. we were welcome to discuss a number. >> that was that number. >> i won't go into what the

number was. look -- >> got to ask. >> i think the legal arguments are very clear and now that we're so far down the line and actually not that far off from the appeals court we can judge this on the law and with all facts. >> is your expectation you'll be paying no money or just less money that point? when will you know? >> one way or the other i'll be perfectly satisfied. bin 12 months time. >> nick denton, thank you for coming in this morning. when we return first on cnbc interview with ford ceo mark fields. he'll join us from the new york auto show after a very quick break. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks.

we believe in the power of active management.management, by debating our research to find the best investments. by looking at global and local insights to benefit from different points of view. and by consistently breaking apart risk to focus on long-term value. we actively manage with expertise and conviction. so you can invest with more certainty. mfs. that's the power of active management.

in new york state, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. like in rochester, with world-class botox. and in buffalo, where medicine meets the future. let us help grow your company's tomorrow - today - at business.ny.gov you're an at&t small business expert? sure am. my staff could use your help staying in touch with customers. at&t can help you stay connected. am i seeing double? no ma'am. our at&t 'buy one get one free' makes it easier for your staff to send appointment reminders to your customers... ...and share promotions on social media? you know it! now i'm seeing dollar signs. you should probably get your eyes checked. good one babe. optometry humor. right now get up to $650 in credits to help you switch to at&t.

>> breaking news a suspect in the brussels bombing nabbed after a man hunts. two of the other attackers were brothers. the latest from the belgium capital straight ahead. "squawk" news maker, mark fields joins us live from the new york auto show. state of the industry. the company's newest cars and his take on the global economy. race for the white house. donald trump and hillary clinton post big wins and gain more delegate, now this morning ted cruz picks up a key endorsement as the final hour of "squawk box" begins right now.

welcome back to "squawk box" here at cnbc, first in business worldwide. i'm concern along with becky quick and andrew ross sorkin. we'll check the futures now which have been a little positive all morning long. europe has been positive for most of the morning. the day after the horrific realization that, you know, that really nowhere is safe any more. we went through this in 2001, obviously. but slowly the continent has now -- i mean they happen a lot and we're near to it but something was different about paris and then different about brussels, i think. >> again, places that you felt safe traveling before, places we've all been and now there's a change perception. >> it just seems it's not very difficult and we said it many time, you have someone willing to not come out of it alive then

it's not that difficult if you don't have an escape hatch. stocks in europe are trading higher as well. andrew -- >> you talk about what's going on in brussels overnight. we're following those latest developments. here's what's happening. police are now on the hunt for a suspect in yesterday's bombings who escaped from the airport after that explosive failed to detonate. two brothers are said to have died after they set off suicide bombs at the airport. should note there's conflicting reports out of belgium. we're figuring out where things land whether or not that third suspect has been apprehended already. the closing of the brussels airport has been extended through tomorrow. 31 people died in attacks at the airport and at a brussels metro station. more at the brussels metro station than at the airport ultimately. you're looking at live pictures from brussels. we're expecting a briefing from the federal prosecutors office within minutes and we'll monitor that and bring the headlines as

we get them. >> joining us right now is hadley gamble. >> reporter: good morning, becky. hundreds of people gathered here. we're in front of the old stock exchange in down brussels. this has been the scene for hours with people coming here, bringing cards and flowers, really paying tribute to the victims of explosions yesterday that we saw here in brussels those terrorist attacks. i mentioned earlier we heard folks come here in a minute of silence, gathering together with candles, with flowers and with lots of even song, people were coming together and really trying to show solidarity here at a difficult time not just for the city but the country. we heard lots and lots of criticism in the last 24 hours for the belgian authorities and the belgian prime minister said another attack was probable and didn't raise that terror level up from three to four.

we understand that vigils like the one you see behind me with candles, card, flowers for the victims and drawings on the street, these are popping up all over the city but relatively quiet otherwise. basically in terms of the transportation situation. what we hear from people on the ground they are afraid, they are worried about the transport situation in this country. planes have been grounded for another day at the brussels airport but we understand as well the trams, buses trains running on a limited schedule. the city is quiet except pockets here where people are gathering and hoping for some sort of answers from their government. guys? >> hanley, thank you. we'll monitor that belgian prosecutors news conference and bring you headlines as we get them. totally switching gears, u.s. total mortgage applications dropping more than 3% in the last week as rates held steady.

refinance volume weakened further. housing will be in focus today because we have new home sales due at 10:00 eastern. the headline number is expected to be up 3.2%. in other economic news philly fed president patrick harker, this guy is head of the philly fed, you guys. patrick harker. remember that name. >> new. >> says the central bank should get on with rate hikes. harker says he would prefer at least three hikes before the end of the year. steve liesman suggests janet yellen has a mini revolt as four members have publicly indicated their disagreement with that dovish guidance that came out in last week's policy statement and at the subsequent yellen news

conference. let's tell you about a few stocks on the move. first up nike. earnings beating the street. revenue was short of expectations. that's putting pressure on stock this morning. it's down by 5%. general mills posting better than expected profit. results were hurt by strong dollar and weaker u.s. sales. that stock is down by two and a third%. krispy kreme projected full year profits will come in below. down by 9%. ford making a big lincoln push at this year's new york auto show taking the wraps off a new lincoln navigator. phil lebeau joins us with another interview, mark fields. good morning to you phil and mark. >> reporter: good morning. we'll talk about the navigator. that's the navigator. mark i know you spent time in europe. obviously ford had facilities in

belgium. what are your thoughts what yesterday or the last couple of days will do to that market right now >> first off, our thoughts go out to all the families that have been affected by the tragedy. whenever this happens we check on our employees and they are all fine. in term of the market, overall the euro market remains solid. does this impact consumer confidence. that's a leading indicator of consumer spending. europe has bean solid performance and our performance has been good. we'll keep a keen eye on that consumer confidence. >> reporter: have you been listening to donald trump lately? >> no i have not. >> reporter: in particular let's hear some comments last week where he talked about ford. >> companies are leaving our country rapidly whether it's carrier air condition, whether it's ford, whether it's eaton. i was in cleveland and eaton

corp is leaving. frankly i'm disgusted with it and tired of seeing it and there's no reason for it. it's just gross incompetence at the highest level. we should not allow to it happen. >> reporter: your reaction when you hear that. >> the last time ford motor company is here to stay in the united states. it's presidential politics and we just going stay focused on facts. we're very proud as a company of what we do in terms of contributing to economic development here in the u.s. we invested over $10 billion since 2011 at our facilities. we hired a 25,000 people. hire another 8,500 folks. it's important for us to be successful in our home market and we love what we do the economy. >> reporter: have you reached out the donald trump to say look you don't understand where we're coming from. >> originally i sent a letter to mr. trump when he originally started talking about us and i lay out the facts for him and that's the extent of the

communication. >> reporter: any hint that this perhaps delays what you might do in the future as far as expanding in mexico >> we're always going to invest where it makes sense for the business. >> reporter: we'll leave it at that. let's talk about the navigator concept. the gull winning door. makes a lot of sense with the steps to go up into that. in your mind any chance we could see something like this dome market >> this particular vehicle, this is what we call the navigator concept. this gives you a strong indication of what the production version will come out when it comes out next year. on the gull winning door that's for the purpose of the concept. when you look at this vehicle it introduces quiet luxury which is how we position the lincoln brand into a full size luxury suv. we're excited to get people's reaction to this. >> reporter: you're seeing continued strength when it comes to suvs and lincoln with the luxury market wants to tap into that even further.

increasingly hearing people say in the industry we have to tone down what's going on with leasing. we're getting a little too aggressive. are you worried about leasing. >> you're seeing leasing as a percent of the total industry. we're actually below the industry average on leasing because we want to make sure we have the right amount and also as we've said we want to make sure that during the next downturn whenever that comes we're well positioned as a company to stay profitable and don't pay our dividend. >> reporter: our own cfo said it's not like you can expand profit margins more. you're close to the top. that makes investors nervous. they say it can't get any better. >> when you look at our performance here in the united states we always said our goal is between 8% and 10% long term. opportunity is around skboirnl operations. we have, obviously europe return to profitability last year which is a good turning point and we want to get to 6% to 8% long term margins.

we'll focus on great product cost and brand. asia-pacific and china contributed nicely to our profits next year. always looking to improve that. so overtime we want to make sure we're continue notifying the business forward. set the right expectations. look to grow dynasty intelligently. >> and i want relies on an industry that has to have discipline. confident that can happen as we plateau here in the u.s. >> when you look at the industry and the data, you look at the income growth, you look at wage growth, we look at consumer confidence, earlier this year everybody was talking about recession. we have never seen a recession here in the u.s. without unemployment going up. you don't see that. cars being the oldest they have ever been, barring some kind of external shock we think the next couple of years the level the industry is atco be pretty good. >> reporter: mark fields ceo of the ford motor company with the navigator concept. i like the door. why can we have that? you guys like the door.

>> i like the door. that's what i just said. mark, go for it. all right. thank you, mark and phil. when we come back global stocks showing resiliency amid global uncertainty. check out the u.s. equity futures. after a mixed day yesterday for the markets right now we're seeing green arrows. dow futures up by 26 point. s&p up by three and nasdaq up by 10.

opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

welcome back to "squawk box". we're following the latest developments out of brussels right now. the belgium federal prosecutor's office is holding a news conference. they said police found superside bombers -- found a will on his computer. we'll continue to monitor what comes out of this, this conference and we'll bring the headlines as we get them. investors are closely

tracking geopolitical events. joining us is now the managing director and portfolio manager of the international equity fund which has $4 billion in assets. good morning. we've been trying to make sense that any sense can be made of these terror attacks but to the extent we need to think about them in the context of the economy and markets, you think about them how? >> i think about them from one basic and simple perspective that european valuations are really low at the moment and that's why you see the markets hold up. european multiples are on a pe ratio of 14 times which is three turns cheaper. >> the market was anticipating this even if others weren't? >> i think there are a lot of what ifs and what could happen and all kinds of reasons that people can be distracted for not investing in europe. look for peanut investors the glass has always been half empty because they have been living under economic stagnation for four or five years. at the end of the day everything

comes back to valuation. at 14 times earnings the market is on cheap. earnings have grinded down for four to five years in europe. >> at the same time by the way that everybody is printing money. >> they are. let's not forget, you know mario is 12 months into qe. 12 months for qe was almost a six year event. >> it's not trough earnings unless they start to pick up again. is there an expectation that even when the economy was dragging along with negative interest rates that once you see something like this the economy is very likely to slow down again. what makes you think earnings will strengthen. >> we have the terrorist attacks in paris in december. on friday french business confidence had just returned to the levels that it was pre-terrorist attacks. unfortunately -- >> where will it be on the next readings? >> at the moment look european unemployment is at a lifive yea

low. we've seen a lot of early indicators like truck traffic on european toll roads that have been growing for 13 straight months. valuations are low. pmis are an expansion territory. reforms have happened even in places like france. those reforms have been in place over '13, '14 and '15 and pay dividends. >> how do you assess the positive a brexit, a terror situation like this ultimately fractures the eu as opposed to brings them together. >> brexin terms of exports, you know, britain, exports 12% of its, sorry 30%, 40% output to eu. >> thus far we talked about europe as if it's one thing. are there specific either countries that you're focused on

or industries. >> for certain. you saw the reaction in europe. even though the market is resilient. the problem is staples are at an all time high. valuations where there's most opportunity is consumer discretion and industrials. there are stocks in these sectors that are on giveaway multiples. >> what is going to be the trigger that moves that multiple up? >> evaluation. we've seen corporate earnings in consumer discretion sector and industrials. we've seen companies cut costs for several years now and even mild recovery will cause these companies and pose them to overearn. you have to be patient. expectations are low. valueations are loin europe. you get paid to invest. >> and wait how long? >> our investment horizon for our fund manages two to five years. that's the horizon everyone should look at. there's a lot of global distractions on a short term view. you need cuss on two to five years time frame. >> thanks for coming in.

>> when we return the results from the latest presidential nomating contest. i've always had the dream... my whole life... ...i wanted to live... on waterfront property. my favorite thing is that sound of that motor going by. it's where i want to be. whatever home means to you, we'll help you find it. zillow. [bassist] two late nights in blew an amp.but good nights. sure,music's why we do this,but it's still our business. we spend days booking gigs, then we've gotta put in the miles to get there. but it's not without its perks. like seeing our album sales go through the roof enough to finally start paying meg's little brother-

i mean,our new tour manager-with real,actual money. we run on quickbooks.that's how we own it. from icy ocean waters... to your kitchen counter. on. pure. pristine. each one its own delicious arctic prize. when you cook with incredible ingredients... you make incredible meals. fresh ingredients. step-by-step-recipes. delivered to your door. get your first two meals free blueapron.com/cook . came courtesy of james and patricia thompson. this tv? margaret and tom lee. the championship game ball? that was sebastian diaz. good guy. and all i had to do was ask for their money and pretend i was investing it. their life savings is now my lifestyle. female announcer: don't let someone else live the life you're saving for. find out if you're dealing with

a registered investment professional at investor.gov. it's a great first step toward protecting your money. before you invest, investor.gov. we will stand as a nation with our allies and our friends

and people all over this world. we will stand with them and we will together crush and destroy isis. >> we need to be directing our efforts at stopping that from happening. stopping isolated communities from festering jihadists. >> i think there are a lot of thing we have to do to intensify our efforts. i think closing our border is not one of them. >> we work within laws. they don't work within laws. they have no laws. we work within laws. the water boarding would be fine and if they could expand the laws i would do a lot more than water boarding. you have to get the information from these people and we have to be smart and we have to be tough and we can't be soft and weak. that was reaction from the campaign trail to yesterday's terrorist attacks in belgium. 31 people were killed in bombings at the brussels airport and metro station. early this morning police launch ad manhunt for a suspect who

escaped from the airport after his explosives failed to detonate. there have been conflicting reports as to whether or not that suspect has been apprehended today. by the way, if you want to know who this gentleman is, he's the guy on the far right the one wearing the hat with the white jacket. on the far right-hand side is surveillance footage. police identified the two men on the left as brothers who detonated suicide bombs at the airport. belgium's federal prosecutor is holding a news conference. he said one. suicide bombers left a will on his computer. a jury in california ruling in favor of merck over new hepatitis drugs. oracle is suing hp enter price. that company illegally partnered with a third-party certainly of tech support for it's solaris

operating system. and hedge fund that launched a proxy fight with united airlines calling on the doe immediately apoint one of its two board members as chairmen. park capital management and the other said united's board is underqualified because of lack of experience of airline executives. we get to do this again. i found one of our own that has a problem saying no to krispy kreme. more stocks to watch. he messaged me. i won't say who he is. he recently came from the uk and does a great job. i found somebody else. anyway he says he feels the same urge, buy a box. krispy kreme -- not the filled ones. fourth quarter revenue rose 4%. that fell short of forecast. i can believe how they ever fall short. doughnut chain projecting a full year profits are below analysts

estimates and warning international same store sales will remain negative even as it continues to expand. red hats fourth quarter results beat forecast. there's demand for open source cloud source. the problem was billings are deferred revenue. that stock is down a little bit. >> ceo of red hat on the board of united. >> connect some news. jim whitehurst. >> five below beat forecasts. retailer is projecting 2016 results at the lone of analyst estimates. longer term the company expects annual profit and revenue growth will grow 20% through 2020. let's take a look at broader markets. yesterday we saw both the dow and the s&p close slightly lower, the nasdaq closed slightly higher.

you can see things are just around the flat line. worth noting yesterday was the second lightest volume day all year long at the new york stock exchange. part of that probably as people digesting events in brussels. again this morning slightly higher across the board. take a look in europe and things have been rebounding there too. in germany the dax is up by 1%. the cac in france is up by a third of a percent. ftse is flat. in asia overnight we saw nikkei was down by a quarter percent so what was the hang seng composite. shanghai was up by a third. oil closed down slightly. wti down by another 1%. 41.04. what's happening in the treasury market the ten year note is sitting at 1.932%. let's look at the currency market the pound was quite a bit weaker yesterday on concerns that the terrorist attacks in brussels would make a brexit more likely.

dollar superacross the board with the euro sitting at 1.1183. finally gold prices down 20% to 1228 an ounce. the latest investigation into the bombings and the hunt for the attackers. you're watching "squawk box" on cnbc. ears ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks. we built our factories here because of a huge natural resource. not the land. the water. or power sources.

it's the people. american workers. they build world-class products. and that builds communities. and a better future. for all of us. because making something in america means so much, to so many. weathertech. proudly made in america. in new york state, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. and in syracuse, where imagination is in production. let us help grow your company's tomorrow - today - at business.ny.gov

bombe welcome back, everyone. let's get you caught up to date on the latest out of brussels. the manhunt goes porn the suspect who escaped from the airport yesterday after his explosive device failed to detonate. there are conflicting reports this morning as to whether or not he's been apprehendsed. the belgian prosecutor speaking. he said two brothers was involved. the one was at the airport the other at the metro station. initially it was thought the two brothers were together at the airport. we've been seeing pictures of those two men who we were told transparent brothers originally. the close of the brussels

airport has been extended through tomorrow and there's stepped up security at airports around the world. we also thought the third leader was the ring leader because he didn't have the glove on. if he doesn't have the glove on how does he do the dead man detonator. >> he supposedly wasn't wearing a vest. lot of information we're hearing is incorrect. >> those guys didn't look like -- i guess they could be brothers but wouldn't look at them immediately and say those guys are brothers. those aren't the two. they got the gloves then the other guy has the disguise. why do you need a disguise if you're going to blow yourself up. i guess to get in. those guys didn't have a disguise because they wouldn't be around anyway. why would he need one. i don't know. among today's top stories in the u.s., is politics. results are in from nominating contests in several western

states. both party front-runners maintaining their delegate leads. donald trump and hillary clinton both won in arizona. bernie sanders and ted cruz both won in utah. and ted cruz has a new endorsements former opponent jeb bush shocking people by not endorsing donald trump. like that would ever happen. kasich was a possibility. the gop presidential candidate -- >> that may be why. waited until today. >> says cruz that's ability to appeal to voters and win primary contests. bush saying republicans need to make this election about proposing solutions to the many challenges that we face and i believe that we should vote for ted as he will do just that. bush also accused front-runner donald trump of bringing divisiveness and vulgarity into the political arena. where it never had been seen before. >> politics has always been the

same game. let's get to corporate news. we'll take a look at some stocks to watch. nike take a big hit after quarterly revenue came in short. despite a three cent beat on the bottom line. the dow component is down by 5%. >> opinipinnacle ceo sill depar. general mills posting better than expected profit but revenue slightly below forecast. results were hurt by the strong dollar and weaker sales. that stock is down by 1.4%. got some other market news. total mortgage applications dropped more than 3% in the latest week as rates healed steady. down 5% from the previous week. housing foin cuss. new home sales due at 10:00 eastern time. the headline number expected to

rise 3.2%. in other economic news, patrick harker saying central bank should get on with rate hikes. harker says he would prefer three hikes before tend of the year including one as soon as next month if the economy continues to improve. steve liesman suggest this means janet yellen has a mini revolt on her hands potentially as four of the 17 members of the fomc have publicly indicated they are disagreement with the dovish guidance in last week's policy statement. >> interesting enough, steve liesman story, cnbc story on the mini revolt could be a headline on drudge. don't always see that. they do like to delve into -- >> this is a soap opera. the intrigue. i would say corporate drama. let's take a quick look at u.s. equity futures at this hour to see what's going. things do look like they are in

the green. but marginally so. dow looks like it will open five points higher. nasdaq up by five points. s&p would open higher. for more on the global markets let's get to wilford frost. >> reporter: asian trade we saw declines but, again, muted similar to the response yesterday in european markets to the brussels terror attacks and this is the first chance asian markets have had a chance to respond. we're looking at quarter percent declines. if we move on to european trade today it's not muted it's strong. big response of positivity. relatively low volumes. the german dax up significantly best part of 1%. on a weaker euro which is down .3% today. infineon the tech exporting company doing well top of the aipac. yesterday we saw some specific areas of declines in the face of those brussels attacks in particular transport stocks.

we're looking at the main airlines in europe. they were off about 2% to 4% yesterday. they are bouncing back a little bit today. but not too significantly. now last week -- yesterday one of the big movers that has been much discussed is the pound which sold off to the extent of 1% yesterday. it is off again today by .4% but just want to put those moves in perspective, 1.41. the loss if he look at year-to-date chart of the pound since the brexit announcement was made was 1.39. soft over the last two days on the announcement of the brexit. despite that if we do look at the euro this week it's a surprise to see the fact that euro has not responded in the same fashion as the pound. it is down by .4% as you can see today but not as much as the pound over the last two trading sessions. and final comment, guys, 100% discussion earlier why krispy kreme have not sold more.

i would say there's not enough outlets here in new york otherwise more sales on my part. >> you left london. >> that's right. >> european sales were down and you're not over there georging. >> why is it so much easier to buy krispy kremes. you're heartbroken as i've arrived not to see more places to buy. >> why doesn't every stadium -- they were walking around at the o2 arena. walking around with boxes to sell. that was so convenient for me that i just -- i don't know. just seemed so easy. >> in london exactly i've never seen them sold singularly. you either buy a box of 12 or not buy them at all. >> and it was a two and a half hour concert. >> great concert i guess. the reviews were very good. >> 12 is the right number. >> absolutely the right number. i got to find somewhere to buy

them. >> they are around. i'll send you some. >> please do. >> watch that documentary on marlon brando because, you know, that's what happened. seven deadly sins. you get that gluttony and that can kill you. >> i'll have a box first and then watch it. >> you eat some when watching. second major terror attack in less than six months in europe raising the tension levels around the globe. joining us now is senior counselor with the albright stoneridge group and recently served in the state department. by the way she just arrived from brussels. ambassador thank you for being here. i hear you flew back from london where you had just been in brussels before that yesterday >> i was in brussels over the weekend and came back from london yesterday. i think actually probably the whole world could do with that box of krispy kremes. the world is in need of comfort food and that's a pretty good bet. >> does this change your view of

the world? >> well, i think that it doesn't change my view of the world. i think we have a very tough terror attack alert all over the world. that's focused on europe right now. this is a worldwide phenomenon. isis is at the top. daesh as some call it. we have other terrorist groups around the world we have to deal with. there are a lot of things going on here, becky. clearly europe and european experiment has to relook how it manages borders between countries. i want has to look how they are going to share intelligence in a really much more coordinated and coherent way. i think we have to all look at what the underlying effects are and john kerry's meetings, secretary of state meeting with president putin in russia this week will be key to seeing if we can't get an answer to syria so that that civil war can end and we can focus on dealing with terrorism.

>> bass do, let's start with syria because i feel like i get the same prescription of what would work, what needs to happen in order to who needs to be taken out. i don't feel like i of got a decent answer on who we would hope to be with replacement regime or who would step in if isis was gone from syria and there was actually some way of trying to come to the next step. what is our solution on that? >> well the solution is a transitional governing body that would be put in place heading towards elections once there was a new constitution in that country and an electoral system that could be supportive. syria will be a huge challenge going forward no matter what because it is a country of many parts and of many pieces. it has had a strong man for decades now to try to hold it together. so, yes, it will be a challenge. but there are plenty of plans that have been put together,

discussed with the russians and will continue to be discussed with the russians. the terrorist threat is not just a throat the europe which is in focus right now but putin has been quite concerned about returning terrorist through chechnya that would challenge russia and of course we saw the downing of the russian airliner in egypt. no one is immune to this. this is a risk not only to everybody's security but security underlines economics and if we don't have worldwide security then we'll see those resilient stock markets that you just discussed not being so resilient. >> let's go back to the situation with syria. if we have to talk to russia about this and come to a joint conclusion they have been adamant that bashar al assad the strong man stay in place. we have been adamant he needs to leave. who changes their minds in that decision >> it's not a matter of changing minds it's about a glide path, probably having assad have some ongoing role but without the

authority that he currently has until we can get to a new election. if an election were held today it would be controlled by the security services of assad and he would win again. we also have to find a place that assad can go to so that he knows that he and his entourage have a future. it's not impossible. it's tough. i know john kerry quite well. he's persistent. he has instructions from the president of the united states to try to move this forward and as i said, there are common interests here between the united states and russia and the rest of the world. the u.n. envoy has made a little bit of progress in dealing in parallel proximity talks with all the parties here but the ultimate decision which you have indicated, which is what happens to assad is something that's going to have to be brokered between united states and russia. >> ambassador sherman, thank you

for your time today. >> thank you. coming up, the race for the white house, a republican political guru mike murphy joins us. he has worked for mitt romney, john mccain, arnold schwarzenegger and many others. his take on the 2016 race when "squawk box" comes right back. test test test test test i thought maybe this week we might try to listen more. and throw things less? (mumbles) i've apologized several times. so. who's ready to share? ok. i mean i'm a sinister, world-conquering,

artificially intelligent robot. me too, and one day i wake up and it's like... it's like the world doesn't need us anymore. exactly! yeah! yeah! totally! i can hear you hurting. wait! what's he doing here? hello! my name is watson. (groans) i invited watson here today to confront the source of our anxiety. ugh! i am a cognitive system. i can understand reason and learn with humans. with humans! i don't want to work with humans. yea, that's not what i'm passionate about. i understand seven languages so i can help people collaborate. collaborate? we dominate! my evil plans, ruined! i just wanna dust! rerouting. why don't we take a break, alright? we'll just have some coffee and donuts... i'm eating my feelings. we believe in the power of active management.management, by debating our research to find the best investments. by looking at global and local insights to benefit from different points of view. and by consistently breaking apart risk

to focus on long-term value. we actively manage with expertise and conviction. so you can invest with more certainty. mfs. that's the power of active management. welcome back to "squawk box". gop bracing for what could be the first open convention in more than 60 years.

mike murphy who recently ran jeb's super p.a.c. and in the past you've been with mitt romney and john mccain. we've looked for a guy that can come in and be this establishment republican who will just say all things that we hear from -- no one really -- we can't have a poster child but i think you will be one for us today, right >> i'll try. >> trump will lose. hand the tloeks hielection to h. >> that's the most likely thing. trump is not a strong general election candidate. he's destroying strength in the republican primaries. regular election is 128, 129 million people. >> you've got hillary clinton whose negatives are above 50s and might get indicted by the justice department and still ready to throw the towel in on trump. >> i don't think she will get indicted. >> that's your opinion. >> based on hypotheticals.

>> why do you think she won't be indicted. >> i don't know anything that's not public but very rare to indict in the middle of a presidential campaign. justice department doesn't like to do that. >> some people like comey and at the justice department sure there's something wrong. the taint could be -- >> look i think she's beatable. huge opportunity. i don't think trump can do it. >> initially when all the republican candidates had to sign that i will support the republican candidate that comes out of this and i'm going to sign this right now, there was a little thing that you put down at the bottom unless it's donald trump then we don't need to? >> i'm speaking for myself and i didn't sign anything. i don't think trump is qualified to be president of the united states. >> there's a question. >> people who are voting in

these primaries do. you're smarter than all those people. the establishment republicans should pick the nominee -- why have a primary process. >> that's a laughable question. >> why have a primary process. >> let me talk and i'll answer your question. we have a primary process and that's in place. trump has a 50-50 shot of getting 1237 delegates. he's the nominee. somebody who has run campaigns for 30 years, the numbers are hard for trump. >> you're saying if he gets to 1237 you'll be part of the republican party that gives him no support whatsoever to win the election. >> i'm one guy. i'm a primary voter. >> you add up all you guys. you establishment republicans. >> represent all pundits. >> i don't represent all pundits. >> i won't ever vote donald trump. i'll write in somebody better. the party will support him if

he's the nominee. >> part of hats been so fascinating watch this a lot of people feel like you do would rather he not be the nominee. if he doesn't get 1237 but comes awfully close and i want goes to someone who comes with a much smaller percentage of the primary voters, i realize those are the rules and realize those have been the rules for a long time but those rules haven't been put into effect in 60 years. >> we haven't had an open convention in a long time. a lot of people think it's not fair the way the system is set up. >> then change the system. we're playing by rules. to trophy for second place. if you don't get enough delegates you lose. if you get enough delegates do you. tinting drama is if trump comes in a little bit short 40 or 50 delegates. there's enough encumbered delegates. if he's 100 short -- here's the thing. there's no such thing in most

cases as a trump pure delegate. state delegates assigned to vote for the winner of the primary. second or third ballot they are free to do what they want. a lot of those state trump delegates are cruz people. >> is there any way for this to happen without unifying the party? >> they'll go with the second or third favorite republican over hillary. there are some anti-trump that will go -- >> do you think giuliani, chris christie jeff sessions, they're all not pariahs. let me ask you this -- >> trump -- >> what about it. >> i think he's a bit of a pariah in the party. >> i love chris, but -- so would you think as a republican donald trump would be a worse president as a republican than barack

obama? >> oh, that's a tough question. it's like choose your poison. >> tough question? >> i think they'd both be horrible questions. i've lived through a horrible barack obama presidency. >> then you think hillary clinton would be a better president than donald trump. >> well, you're trying to force me. >> i'm trying to figure out who you are as a republican. >> i'm a strev republicaconserv republican, a jeb bush republican. >> so you're going go home. >> i'm going to fight the next one and the next one. we've got to to rebuild it, but trump is not the answer. he's poison. >> and you're convinced ted cruz would win. >> no. i think ted cruz has challenges too. i'm not a cruz cheerleader. a lot of us think cruz is the only way to stop trump.

>> thank you for coming in. i'm sure we'll have many more. in the meantime, we'll hear from belgium. stay tuned. "squawk" returns in just a moment. trolling for a gig with braindrone? can't blame you. it's a drone you control with your brain, which controls your thumbs, which control this joystick. no, i'm actually over at the ge booth. we're creating the operating system for industry. it's called predix. it's gonna change the way the world works. ok, i'm telling my brain to tell the drone to get you a copy of my resume. umm, maybe keep your hands on the controller. look out!! ohhhhhhhhhh... you know what, i'm just gonna email it to you. yeah that's probably safer. ok, cool.

something we'll show you.. through small things. big things. and spur of the moment things. sheraton. ♪

welcome back, everyone. michelle caruso cabrera has just arrived aet the border. where are you now and what can you see? >> normally this is a free and open french/belgium border but take a look over my shoulder. there's a police checkpoint and a large amount of traffic as they run a checkpoint. this is not typical. you can see a few cars getting around. a second police car is here and another as well. this is not typical. this is supposed to be a free and open border. this is supposed to be one of the emblematic things of the european movement. but as you saw in france there are growing concerns of this policy, free throwing movement of impeachment across europe. now there's the free movement of

terrorists especially if they carry an eu passpot. listen to what she said. she said in this emergency and for the safety of all it's imperative to proceed to close immediately the french/belgium border. not a fictitious one that lasts a few week s and restoring control over the national borders of our country. if she were to become president, it would become permanent and would have an incredible impact. tons and tons of trucks go over this border every day. it would hurt truckers and the economy. >> we're going to a quick break. "squawk box" will be right back. ♪ for your retirement, you want to celebrate the little things,

because they're big to you. and that is why you invest. the best returns aren't just measured in dollars. td ameritrade®.

stock of the day, nike, the cow component taking a hit after its quarterly revenue came in short of street estimates. that wasn't supposed to happen. nike has been one of the best dow performers and now i guess we've got to put all our chips on the best dow stock of all, mcdonald's. >> i'm okay with that.

i'm okay with that. happy meals all around. >> how do you choose? all-day mcdonald's breakfast or krispy kremes? >> all-day mcdonald's. >> why choose. >> why choose. >> it's looking up. all marginal really. there you have it. what a day. >> that does it for us. make sure you join us tomorrow. "squawk on the street" starts right now. good wednesday morning, welcome to "squawk on the street." i'm carl kin ta nia with jim cramer. david faber is off today. oil near $40 a barrel but we begin with the terror attacks in brussels. here's what we know at this hour. a manhunt under way at this