♪ >> announcer: live in new york where business never sleeps, this is "squawk box." good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernin and andrew ross sorkin. and the markets, turning its focus back to oil prices as wti finally topped the $50 mark on supply concerns. you can see prices are sitting for wti at $50.82. brent actually sitting above that at $52 on the nose. we'll continue to watch this through the morning. in the meantime, let's also take a look at u.s. equity futures. once again, you're looking at green arrows. markets continue to march steadily high. dow futures up 18 points. s&p up by 1.5 and nasdaq up by

4.5. nikkei up by 1%. markets in china slightly lower with the hang seng down. european equities this morning, they send to be following along with what you saw in the chinese markets. dax down by half percentage point. cac is up by 0.4. the really story that you want to be watching is what's happening with the bond markets. check out the german ten-year. it's now yielding 0.53%. yesterday -- >> 0.055. >> yeah, 0.055%. it closed yesterday at the lowest level in history, at 0.055%. >> weighted average, average yield, minus 0.055.

gold is going higher. china exports declining. world bank cut the global outlook. >> and yesterday -- what was it, toyota? one of the japanese automakers issued long-term bonds. actually i don't know what the term was for the entire thing but it was essentially zero percent. >> this is -- we're not prepared for the global slowdown in terms of what we can do anywhere on the planet with monetary policy. here, negatively, how do we answer a slowdown or even if it's not a recession, how do we answer -- >> the negative interest rates. >> negative interest rates? >> no, just flat. how do we do it? >> is that explains why stock prices continue to tick higher when you look at the yields. >> yeah, didn't hold on yesterday. we're going to have troubles, don't you think? >> we're near the all-time high.

we don't think june is a live meeting but again, it's creating some chaos. and some of these markets, we'll continue to watch that. >> meantime, we're going to talk politics which, by the way, may be a great overhang on your quick situation. harrisbu hillary clinton claiming the democratic nomination but bernie sanders still feeling the bern. john harwood is here. >> bernie sanders is going to meet with president obama. i suspect he's going to get talked down a bit. certainly, he's going to get talked down on that plane ride last night, the california numbers not looking good. but it was a huge night for hillary clinton. she acknowledged that historic achievement. she reached out to bernie sanders voters, thanked him for what he contributed to the primary but also drew a contrast

to donald trump which she said was intent on putting salt in political wounds. here's hillary clinton. >> we believe that cooperation is better than conflict. unity is better than division. empowerment is better than resentment. and bridges are better than walls. >> a postscript to what i said just a moment ago, nbc news has called california for hillary clinton. that pretty much kicks out the last remaining prop under bernie sanders who will be arguing that he had a reason to keep on all the way to the convention. now donald trump last night, of course, was unopposed. he got more than 70% of the vote in california. and he, as well as hillary clinton, reached out to the bernie sanders voters saying come over to the republican side. in a speech he read from the teleprompter trying to calm the

furor that engulfed his campaign. >> i will work very hard to earn that support. to all of those bernie sanders voters who have been left out in the cold by a weak system of superdelegates, we welcome you with open arms. >> but, of course before he can reach out to democrats and pull them in, he's got to repair the damage within his own party. guys, i think you can see some of that damage set this morning in the form of tony fratwho is not on the thump train. >> you're got the red/blue mix. you're a purple state guy. >> yes, sir. >> and he's got the blue going. and that just describes -- >> excrement brown is how you felt, basically your mood. >> it's dark establishment. >> i think it's excrement brown, i do.

that describes just your overall feeling about this whole election. >> i think you're right. i don't disagree with that. >> i know. got to fight to the death, between these two, who can back hillary more? join us more. for the race for the white house, managing partner tony fratto, he's also a cnbc contributor and he's the guy supposed to be arguing with michael feldman. michael feldman is founder of global park group. and jenkins, i read him today i kept waiting for if trump can -- that never came. heyman jacobs is basically saying, this is what you get here, 40% of republican base. here's your guy, you made your bed, sleep in it it. >> did you read brent stevens, too? >> all of those voters need to

be -- learn their lesson. >> so, you're just -- 2020, you live in florida there? >> well, hold on to the senate. that's ma ywhat you said. >> hold on to the senate, that's what you have to focus on. the idea that you can make something out of trump, people are fooling themselves if that's what they think. he did a speech, used a teleproptel teleprompter, said okay things for a republican nominee. if markets hate uncertainty, it's not markets, it's people who hate uncertainty. they saw what he said a couple weeks ago. people are starting to say i am not going to invest my reputation and my money on this guy not necessarily because of what he said yesterday i have no idea what he's going to say tomorrow, too. >> it's been your story the whole time. it's staggering, on the flip

side, your guy, you worked for w. >> yeah, yeah. >> 5%, maybe he didn't get a majority, but it was like eight times the number of voters voting for trump versus -- >> here's the thing. >> no one knows the general and how this plays out yet. >> i think we kind of do. we kind of do. >> you thought you knew the primary. people said there's no way trump will be the nominee. there are guys eating paper. and putting salt -- you're puts salsa on the predictions they made about trump and eating them because they said i will eat my shoe. >> if we put the primary electorate -- >> do you have any comeuppance for the view of trump? >> if we laid the primary electorate and general electorate, do you think it would -- >> this is going to shock people

i'm actually tracking with joe this morning. here's why. here's why. there is nobody in the clinton campaign, not the least of which the candidate, who is looking at this and feeling comfortable about this election. they're not underestimating him. >> that's smart, right? >> i'm not saying that -- i'm not just saying that. it's true. this i election is going to be disorienting for the clinton campaign. it's going to be disorienting for people who have run elections. the map is going to look different. the cadence of the campaign is going to look good. >> by the way, there is no denying that what he has done to get here is nothing short of amazing. and his instincts in terms of how to project a broad message and reach and break through to voters i've never seen anything like that certainly with the

modern tools of campaigning. >> what do you think of his attack last night where he did try and tone things down? >> i think that is a sign that he realizes that he just wasted the last eight days of his campaign. and in fact dug a deeper hole. >> democrats know how to run against republicans. mitt romney he was a great candidate, beat him handily. they know how to run against the populist. >> there's no doubt that she's a established political brand in the most anti-established brand that we have seen. is this -- i think this is important -- there is no doubt that she represents a different version of change. okay. she will say -- she will talk about her vision for the country, and he will be i'm going to be just -- >> she is running against -- she is running against a guy who people in his own party on the day he's accepting the

nomination are calling him a racist and a bigot and withdrawing their nomination. if she can't pull this off, right -- then -- >> yeah. >> only one guy withdrew. that's a guy in illinois who is one of the tightest contests. >> senator kirk. >> yeah. >> the republican party, you have to understand this is a minority party. we have a hard time winning when we're unified. if we lose 2% or 3%. vote in a general election, it's a landslide. the map on this is not very hard. >> your party tried mccain, tried romney, tried to establish that and that didn't work either. >> we have exactly one popular vote in the national election since 1988. once. it's tough. >> i want to know where you find hillary's move last night to sort of played the female card which she's tried to avoid doing. >> yeah. >> is there a different name for

the woman card? >> i think it was the right time in the campaign to recognize the historic nature of what happened yesterday i think it was effective. she did three things last night, right? she did talk about the historic nature of the campaign. she talked about -- she drew contrast with trump. and she laid out what she saw are bridges to strand the electorate that she wants to bring in, including sanders voter, younger voters, and people the grown nonwhite percentage of the country. that was strategic. it was smart. campaigns for president are really hard. in order to win you got to make impact on the voters. she did. trump is not taking this seriously. he is not using all the tools of a modern presidential campaign. to the extent he has people working on this, they haven't do

done this before. people like tony are sitting on the sidelines. it's amazing what he's done to reach 32%, 42% of the electorate, he's not treating this right. >> policywise, we're going to start hearing about on the trump side, i'm not going to go through all of it, like a playbook, ten things he can talk about. on the clinton side, you are going to hear about private hedge fund, the clinton foundation for the enrichment of the clintons. >> big money speech? >> you're going to hear that the middle east -- that isis was created by the quick pullback from iraq. she was right there for all of it. you're going to hear about 75 years. do you guys -- you can -- why does it take 75 years to get the e-mails all out. that was the estimate yesterday from the state department how long it would take to summarize all the e-mails. >> i can't understand that.

>> why 75 years? >> how about reforming the process, by the way. >> a spokesperson came out and tried to explain it saying it's not an easy number. that it's going to take 75 years. i may not be there to see what actually went on with that private server, right you? may not be there. >> i hope i will be. >> there's a lot of there. >> look, in a way, it's the shame of this election. if we had had a candidate who could go out and attack on those things and do it credibly, then this actually should be an easy election for a normal republican candidate. i really think so. >> can i ask the former strategist for al gore as well as tony this question, who makes sense for hillary clinton as a running mate? and who makes sense for donald trump? >> oh, boy, for hillary, i would not be surprised if she goes to

someone like senator brown in ohio, even though that causes some complications in the senate. that deals with the elizabeth warren thing. it feels that -- >> she was coming from the left. >> if she's worried about unifying -- you have to remember, the democratic party is an elizabeth warren party right now. >> she's going to be more worried about uniting that party, rather than trying to take moderate voters -- >> if you put elizabeth warren on the ticket then it becomes divisive. >> michael, what do you think? >> i think sherrod brown or tim kaine are good picks for her. she's been through the process

before. she's seen how this has been done. and she's been in the white house and seen how the president and vice president work together. this is something that she's going to be thinking about who all can i work down the hall with. who can i collaborate with. and she's going to be thinking about this is less of a political pick for her. although she'll make sure she follows the golden rule. >> she won't try to go with the cory bookers? >> i don't think she's taking a risk. >> will it still be a risk in 2016 to have two women on the ticket? >> no, if that's who she felt -- i don't think that's likely. mostly because of her talking about senator warren. >> i don't think it's a woman, i think it's that particular person. >> is there anybody that trump could pick that would make you feel comfortable enough to actually vote for the ticket? >> no.

>> if david petraeus was the vice president -- >> david petraeus would never do it. there's this consensus view that he has a problem with women, that he should probably put a woman on the ticket. he could put wonderwoman on the ticket. it's not going to help with the problem. you don't vote for the ticket box of the vice president. >> we understand, we know where you stand. pretend you're michael fire second, a democrat, and pick which vice president. >> susan marcanes. >> you talked about rick scott before. >> i think rick scott is someone who would want to do it. >> and trump says he wants not a businessman. >> the newt relationship in the

last week seems to have deteriorates. he said he wants somebody who understands washington, that's smart for him. >> i don't thing it it necessarily moves the needle for him. >> he's moderating his comments on trump that he's signaling he can do it. >> do you think portman -- rob portman would run with trump? >> portman said he's got his own issues that he wants to face and deal with. >> jeff sessions would do it. >> jeff sessions would certainly do it. >> not lindsey graham and not -- >> that would be fun, right? >> lindsey -- >> if lindsey would do it, the vice presidential debates would be awesome. >> not kasich. >> no, kasich is the kind of person he's got a network, he helps with ohio and he's been in

washington. >> he could even say i said all of this stuff about trump, it's so important that we're going to do it. >> that would be powerful, if he could get john kasich to do that i'm skeptical of it, but if he could, that would be powerful. >> i'm skeptical of it, too. if your strategy is industrial, more east, kasich helps not just in ohio, pennsylvania, indiana, michigan, illinois as well. >> weird thing with kasich, we've got gary johnson, the libertarian. he takes from independents somehow in a three-way race, he thinks more of hillary. >> when you include gary johnson, trump goes ahead. i was talking to a democratic strategist yesterday about that. he said, well, the leading edge of the johnson campaign seems to have more to do with marijuana than the federal government.

>> you like that survey, monkey -- >> monkeys do disgusting things. survey monkey, is that a good name? >> i like survey monkey. >> you like the name? >> i'm not saying the name. >> you're taking the monkey survey. >> really? they're referring to the person? >> it's the nasty person in the computer doing the survey. >> gentlemen, thank you. great conversation. thanks for such a debate. coming up, the results are in your lululemon. that's next. there's something weird about it. and check out this date in history. i take prilosec otc each morning for my frequent heartburn

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welcome back to "squawk box." gym rats out there, lululemon shares under pressure. reporting a quarterly profit of 40 cents per share. that missed estimates by a penny above protections. the yoga wear maker.

the s&p closing at its highest level since july of last year. but the next guest says that the market will be flattest from here. joining us with more of the market's direction is steve wood, cheap strategist at russell investments. steve, thanks for being here today. >> thank you. >> so you think it's going to be flat markets. but anybody whose been watching this has been waiting and waiting for the markets to fall as a time to jump in and it hasn't happened recently? >> if we end here by the end of this year, i think you can take that as a win -- >> some people don't buy stocks there. >> i think you would want to sell the rallies. you'd take the movements upward. and use that to fund an overweight in europe are selective in japan would make a lot of sense. right now, i think it's more of a valuation game than anything else. we can talk about the fed if you like to, but valuations right

now in the short term, they look expensive. in the medium term, long term, they become positive. >> i think it's hard to take the fed out of the picture completely. >> oh, absolutely. >> we're talking about a trend of two years. >> five years. >> five years and that provides consolidation for another move up or do we ever go down 20%? >> i don't know that we're going down 20%. it could be more than that. >> you called the slow grind. >> i think we're going higher, right? >> yeah. >> when you look at three months, the easiest pick to make as a strategist is that it's going to continue to be flat. >> but that wasn't an easy strategy to pick in february. >> it's hard to remember. >> you see a lot of good looks guys. it happens all the time.

>> but using the volatility. in the u.s. equity space, using the volatility to trade around. >> meaning you would buy at 5% or 10% discount? >> if you get 7 to 10% that would be good opportunity like in february. but i think in the medium term, underweight u.s. equity, underweight japanese. >> when you look at what's happening with corporate bonds there's nowhere that you can find that in some of these places. a lot of people look at that and say, okay, this makes it all the more reason i would want to own stocks at this point and uggs stocks because i feel more confident. >> ultimately, for medium to long term you're going to to find out where valuations are your ally. you're going to have to consider emerging markets.

globally diversified multiasset strategy. there is high yield global credit currency strategies. i think it's going to be 5, 6, 8, 10, diverse sources of return that people are going to have to look at. i think it's going to be active, multiasset. it's going to be global. i just spent two weeks in australia and japan. i was in europe the month before. the central banks are conspiring but sympathetic. as our pockets get picked by central banks, what do you want to do. >> it's your valuation assumption that that could be flawed because it's not expensive if we're at zero and headed lower. i mean, no one thinks that rates are headed up to valuations will get squeeze -- or multiples will

get squeezed. what's the multiple now, 19? >> more than that. >> why is it at valuation if we're at zero and not heading on? >> then we get back to my original point if you look at japan and emerging markets, 15, 13, 14, 12 in terms of valuation, we're getting paid to take risks. i think it's a false choice a lot of people ask, if we don't like u.s. equities should they be in cash. >> i would think if we're overvalued now, you say we're a year and a half ago we were completely -- we've had a year and a half of turning and rolling corrections, a lot of stocks down 50%. if we're overvalued now, i would have made that call a year and a half ago. >> going into two years ago. >> maybe it's caught up for now. >> earnings are going to improve. >> i've been through that strong

dollar. we've been through the stronger oil headwind. >> we've been overvalued for a while. >> steve, thanks for coming in. >> thanks very much. >> buy. buy, buy, buy. coming up -- we don't do that -- just buy, just buy once. sneakers, dress sneakers, things like that, right? >> sneakers? >> yeah, you got those weird white soled things you wear once in a while. >> see what he's wearing now? no shoes. >> no shoes, wonderful. coming up, corporate leaders under scrutiny. secession issues, pressure to tell. and next, later, has apple lost its mojo?

a former insider tells us why he thinks the company may have lost its way. as we head to break, here's a look at yesterday's s&p 500's winners and losers. i asked my dentist if an electric toothbrush was

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welcome back to "squawk box" on cnbc, first business

worldwide. u.s. equity futures. up about 30 points right now, dow jones up 30. s&p indicated up about 3. nasdaq indicated up about 6 points. it was never a given that it was going to close higher yesterday. >> it's still amazing to me that the markets have managed to hang on in the green for all of this time. it's really when you look at other places your money can go. >> right. there's oil which is now solidly above 50 -- it's above 51 at this point. police in oklahoma city say that a probe has found no evidence suggesting former chesapeake energy ceo aubreay mcclendzen killed himself when he died in a fiery crash in march. mcclendon's truck slammed into a cement abuttment one day after he was charged with rigging oil bids. again, this is something that

we've known for a while, some of these issues but again -- >> no, if you talk to people and there's no note, and you talk to people, that say he didn't seem depressed. never gave any indication of this. the evidence i would look for would be in the drive train. you know, if there's any way you can tell -- >> they haven't released all of the information about actually the accident. >> but if it was a solid accelerating 90 miles an hour -- >> lack of skid marks. >> lack of skid marks. you have a reason for not wanting people to know you're going to take your own life, for whatever reason, insurance reasons, whatever. you don't write a note or any indication, just not finding a note or anything doesn't mean that it's not -- >> mind you, you should note most whole and term life policies if you're talking insurance you can get paid out as long as you haven't done it within two years of actually getting the policy.

>> with double indemnity -- >> do you know the answer? >> double indemnity, that was a great movie. >> let's just move off. >> and to raise the level of joy here, yale holding its annual ceo conference, all in attendance, this year's theme how to tackle this year, the theme tit ain't what it used to be. good to have you here. so many questions about what's happening here. what you guys are going to talk about. i imagine politics say huge part of it. and unmitigated disasters, things like yahoo! apple. >> that is the portfolio, we, of course, wanted this to coincide

with the great cnbc 50 disrupters. >> right. >> we theoretically have a lot of disruption teams. we've got the fintech teams. there's a lot going into fintech than others these days. that's traditionally disruption stuff. we do have disruption in politics. we had veins bulging in his neck last time. mark reed and mark penn going out with 25 u.s. mayors, half democrat, half republicans. we had the president, chairman and secretary of the mayor for sanders. there is only one, the mayor, of course, madison, wisconsin. it was pretty interesting, we continue on that debit with political disruption. secretary of health in this morning. we have the ceos of valeant.

>> talk to us about papa, do you think he can actually do the job. >> papa can, of course he was given a terrible, terrible hand. >> do you think he knew the terrible hand was he given? >> yeah. >> do you think he knew how bad it was going to be? >> stuff was coming out in the fall. if you'll forgive me, "the wall street journal" revelations were fantastic. as that stuff was pouring out we started to see there was real troubles out there, of course, bethany's piece was fantastic. it seems like misrepresentations of pharmacy licenses and what they should and shouldn't be doing, pushing certain drugs. >> is that a company that the stock is double? what's going to happen? >> he's going to be bringing in a lot of good executives that actually know what they're doing in pharma. the dirty secret is mike pearson

had a checkered reputation. he wasn't as beloved as some people on the shows have suggested he was. there were issues that came up, and bethany's article was good at raising issues either way. going for the monopoly placing as they did, there were companies investing in r & d. and doing very well in major drug companies that 50% of sales are indeed getting good returns. this place could do a little better. we're going to ask the ceos if he can stabilize it. >> yahoo! marissa mayer, how do you judge what she's doing. looks like the company is going to be sold. >> we have marissa mayer coming and adam coming. i made the foolish mistake of

being transparent. i talk about it on the show and sometimes i forget and model it. we had the ceo of your friend john ledger. they had all treasured each other. they saw that and everybody cancels. but it will be very interesting just to find out, i think, that aol could house google quite well. >> but marissa cancels on everybody. >> i think she's doing the right thing by focusing on short-term value. >> are you happy with this, if you can get 3 to 4 billion -- >> instead of the $8 billion? >> yeah. the activists saying this is the plan we're going ahead withy. >> the activists have so much egg on their face right now, valeant sold for more than it said. by pushing for the fire sale

auctions you've seen what the data has been and they're marenally better than the start of the year. activist are having such difficulties putting together their fraternity in washington, a lobby for these poor guys. but you know my point of view on that. so i don't think the activists goring to have a lot of credibility. they've had problems with fuel something of the problems. we've had activists on this board. of course, some of the biggest acquisitions that marissa mayer made were fueled by that. >> you're blaming the activists? >> well, just like with valeant, the activists were on the board. >> you're talking ackman now? >> well, ackman -- the real problems for valeant happened on that. >> that's one thing for bethany

mclane, her piece in "vanity fair" suggested that bill ackman was surprised by this. i think bill ackman had had a pretty good vision. if you're watching this show he had a pretty good idea how bad things were. >> and brought the ceo on long before he got involved on the board. >> and that crazy deal, of course, with allergen, and everything else. that was his doing. what's the dirty thing that we didn't talk about because you're out of time? >> it said the next time i see you donald trump will be 70 years old on flag day. it's going to be the oldest presidential candidate in american history. we have the oldest congress. one of the oldest supreme courts. it's pretty interesting. people made such a big deal about ronald reagan. nobody talks about he'll be 69. and sanders is not going to

concede even after hillary is elected. >> we'll see, jeff, have a great time at conference. appreciate you being here. quick programming note, you know, we're not kicking you out, amc entertainment ceo adam aron is going to be at the summit a little later. he's joining us first at 7:15 a.m. eastern time. when we come back, is apple too complicated? we'll ask the former ad guru how former founder steve jobs used the power of simplicity to advance the technology giant. "squawk box" will be back in just a moment. & in a world held back by compromise, businesses need the agility to do one thing & another.

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

welcome back, everyone, u.s. equity futures have been indicated higher. take a look at the dow futures indicated up by 30 points. s&p but by 2.5. nasdaq up by 6.5 as the market continues a slow but steady advance. a new book offering how to

create a great brand. keep it simple. it's a concept our next guest says steve jobs used to build a brand on the brink of extinction. joining us now, ken segall, author of the new book "think simple, out smart leaders." >> he did incredibly well. it's one of those things so obvious and everyone knows it's the right way to do business but yet, business is business, and things get dmrimplicated. and that's where a lot of companies stumble. steve was incredibly good because he can do things with force of will. >> meaning what, he could shut down projects that he thought

was extemporaneous. and focus on things that were good? >> they were working on 20 things at the time. he cut it down to four. >> most people thought he was crazy. >> a lot of people don't realize, internally, apple had dozens of projects going on and he killed a lot of those. there were a lot of people at apple at that time running around worried about their jobs for one thing. it was one thing to give everyone the focus so everyone at apple would know what the company stood for and every customer would look at what the company stood for. >> when you look at the future of apple, i'm rooting for them my great worry is they're still a great hardware company but they've never done software as well as everybody else. with the dat mining that google and others are doing. and the fact that apple has taken this position on privacy it becomes a tipping point and

becomes harder for them to actually compete on the actual software product. do you think that's a real problem? >> i think there's a problem based partially on reality that software has become an issue for apple. i'm not saying they never did software well. i think that was part of the allure that they did hardware and software and the two meshed very beautifully. but as the company has grown. as product lines have grown and as the software has become more sophisticated, it's happened. >> a more complicated piece. they're a gadget maker. in terms of keeping it simple. so, the privacy weighs into not being able to develop software and therefore -- you know what i'm saying? he's saying keep it simple. nothing grows to the sky. >> you finally turned bearish on apple based on --

>> what? >> bearish. i want them to succeed. i'm worried making them a fast follower. >> all of these other companies that are now leaping ahead on -- >> can i just say -- ken. you knew steve jobs. he kept it simple. what would apple do right now if tim cook could channel -- that's a hard thing to do and no one is asking him to do it. let's say you could talk to steve jobs' ghost. what would he tell tim cook to do to keep it simple and take it into the next five years? a car, tv, a what? >> there was a long time i thought a tv was coming and that kind of didn't happen. i do think the car is a very good next place for apple to go. it's one of those places that you couldn't imagine them going for such a -- when you first heard it because it seemed like someplace they had never been. they didn't know about that stuff. you stop and think and that's what they did with phones and

music players and all that stuff. so i think that is where they'll go. there is this thing that, no matter what apple does today, tim cook is not steve jobs. there will always be that feeling that they're somewhat lost until they have this next super-big -- >> nobody will be steve jobs. >> you could still come up with some simple -- at least an overriding mission at apple. >> what about the car. >> remember how many products sony had? they had 3,000 -- 50 different cameras you could get. >> that's one of the great things about apple, is that everything they make fits on one small table. they are so not blown out like all these other companies are. >> the keyboard -- >> they have a lot of stuff now. it's getting a little busier. you don't think? >> that's the problem. >> i still think it's way simpler than other -- markets

mature. there are tens of hundreds of millions of people buying the stuff now. and they have different needs. we have one iphone that sort of establishes the new category and now there are three iphones. >> tv is not going to do it. >> car. >> ken, thank you for coming in. >> self-driving car that's really fast. >> elong mu musk. something to be said for having a visionary the head of the company. that's part of tim's issue. coming back, tiger:

the cnbc disruptor 50 he list released moments ago.

welcome back to "squawk box." u.s. open golf tournament tees off next week but tiger woods will not be there. in a statement, the 14-time major winner says while he continues to get healthy he is not physically ready for professional competition. then there is the mental side of things. the 40-year-old woods had back surgery last year. he is 40 years old now, and these guys swing so hard. watch all the torque in the back. we wish him well. hopefully he gets back. the game loves it when he is there. it's kind of been moving on with some of these new guys like jason day and jordan spieth. when we return, our guest host for the next two hours, the one and only ken langone. no holds barred on the race for the white house. more on squawk in just a moment.

. uh, i live right over there actually. you've been to my place. no, i wasn't...oh look, you dropped something. it's your resume with a 20 dollar bill taped to it. that's weird. you want to work for ge too. hahaha, what? well we're always looking for developers who are up for big world changing challenges like making planes, trains and hospitals run better. why don't you check your new watch and tell me what time i should be there. oh, i don't hire people. i'm a developer. i'm gonna need monday off. again, not my call.

hillary celebrates history. >> the first time in our nation's history that a woman will be a major party's nominee for the president of the united states. >> donald trump, ready to take on the presumptive democratic nominee and urging voters to think about who should run the country. >> and now, i am going to fight for you, the american people. wall street legend and home depot founder ken langone is here to talk politics, business and the future of our country. a top cnbc disrupter is mixed up the world of perfumes and using microorganisms and create fragrances.

we'll talk to the ceo next. all that plus naked and hungry. a nudist restaurant set to debut in london promises to give your eyes something to really feast on. that story straight ahead as the second hour of "squawk box" begins right now. ♪ ♪ have some more chicken, have some more pie ♪ ♪ just eat it >> live from the beating heart of business, new york city, this is "squawk box." ♪ welcome back to "squawk box," everybody. this is cnbc, first in business worldwide. i am rebecca quick along with joe kernen and andrew ross sorkin. let's look at the futures this hour. you'll see right now green arrows continue. dow up 33 points. s&p futures up 2.5 and the nasdaq up by 5.5. take a look at oil prices this morning. above $50. at this point wti has moved above $51. $51.05, a gain of 69 cents. the brent is at $52.21.

here is what's happening in the headlines. nbc news projecting hillary clinton will be the winner of the california primary. the win adds to clinton's delegate count after she was already declared the presumptive nominee. she gave a victory speech in new jersey last night after winning in new jersey and new mexico. in the meantime. lululemon under pressure. quarterly earnings a penny short at 30 cents per share. full year forecast short of estimates due to high expenses. apple has raised $1.4 billion in its first bond sale in taiwan. home to many suppliers, the sale was 40% larger than expected. joe didn't want -- you want to take apple money for 30 years, ken langone? >> i would love to sell bonds on those terms. >> right. >> what a deal for them.

>> 30-year, 4%. >> he doesn't want to buy the bonds. >> i wouldn't buy the bonds. it's a guaranteed loss. you're going to lose money. 30 years? >> you get it back if you wait 30 years. >> you'll get the money. what about the money of the money. >> opportunity costs. >> better than the -- how long was the japanese -- >> i looked it up. it never said the term of it. there was a corporate bond. i think it was toyota. the lowest ever marked. >> we'll -- we have more work to do here. a few more headlines. then we have a lot of time to talk to ken. yahoo hiring an investment bank to sell 3,000 patents. the "wall street journal" say the patents date back to 1996. it includes the original search technology. in march yahoo announced it would explore the sale of $1 billion to $3 billion worth of patents, property and non-core assets. a new research report

predicts smartphone growth will only hit 7% this year. gartner notes that's down significantly from the 14.4% growth in 2015. among the reasons, slowing replacement in mature markets where smartphone penetration has hit 90%. in addition, gartner analysts suggest new model phones are not changing enough to make consumers want to upgrade. india's prime minister is on a visit to the u.s. he'll address a joint meeting of congress at 11:00 eastern time. prime minister modi met with president obama yesterday and also attended an event with amazon ceo jeff bezos. bezos announced the giant would invest an additional $3 billion in india bringing the total to $5 billion. bezos calling india amazon's fastest growing region. hillary declared victory

last night and rallied the troops for a battle against donald. here are some sound bites. watch this. >> when he says "let's make america great again," that is code for let's take america backwards. >> had to run that. meanwhile. no backing down from bernie sanders. he has vowed to continue his fight until july. he'll meet with president obama at the white house tomorrow. a meeting he requested. donald trump taking a victory lap. his speech last night looking to calm republicans after charges that his comments against a judge were racist. trump also spoke about the clintons which he says he'll discuss at length on monday in a speech. >> just remember this, i am going to be your champion. i am going to be america's champion because, you see, this election is not about republican or democrat. it's about who runs this country. the special interests or the

people, and i mean the american people. >> our guest host this morning ken langone. i want to frame the start of our discussion this way. we'll look at the politics with the economy as the backdrop and what we need for the united states to sort of get back on track. we had the gdp number. it was -- first look, .5. that was up to .8. then we had the jobs number that was supposed to be somewhere at about 150, and it was 38, which brought down the three-month average to a troubling number well below where we were. so here we are with the fed continuing to be basically at zero and we're just barely above stall speed. and we're going to go into an election where everybody -- most people don't think we need the election because they're just sure hillary will win. if we get another four or eight years of a third obama term would it be worse or better of what we've seen in the last

eight years. >> it can only get worse. >> worse than what we've seen? >> yes because you get further away from where you have to go. first, your opening comment using the economy as the background. twist it around. use politics as the background. use the economy as a principal issue. we are in trouble. serious trouble 71% of our federal budget are entitlements. interest rates are not only historically but unrealistically low. if the government were to end up paying, based on the almost $20 trillion in debt another 200 basis points more, which would not put it -- >> normalized rates. >> -- right. another $400 billion a year added to your deficit that you have no wiggle room at all. >> right. >> our educational system, i want to ask -- i want to challenge the president. show us where we were when you

started eight years ago and show us where we are today. it's getting worse in public schools. it's not getting better. these poor kids -- let me tell you something. the greatest thing that happened to me besides my parents and my wife, which are the most -- to get to a good public school and get a good education. i fought hard not to get an education. i was not a serious student. not at all. but when we take away that step, which gives the kids the shot at participating in a thriving, dynamic society, when we take that away, what's left? look at the qualifications of these kids that are coming out of high school today. by the way, dark secret, a lot of these two-year schools go to work instead. get a job of the learn a trade. >> you mean the two-year schools aren't worth it? >> the results are there. look what happens to the kids. they're working like hell,

holding down a job at night, going to school during the day. they have the right motive. they have the intention. they want to participate in this great thing called america and they should, but we're not giving these kids a shot. i don't care whether you are a communist like this guy or a reactionary like this guy. by the way, harwood, i tell you, he has seen the light. i got hope for that guy. i might even get this guy to vote or a republican one day. >> hold on. >> i am not betting on it. >> what's a reactionary? i don't even know -- what is a reactionary? i understand what a communist is. what's a reactionary? >> a guy who likes nothing. >> i disagree with that. >> you react negatively to everything. >> that's okay. >> last time you were here you said you were all in for donald trump. that was the phrase. you liked donald trump. >> what does "all in" mean? >> i am supporting him all in. he is my guy. that's what you said. >> let me lay it out. what he did last week in my mind is disgraceful.

>> the judge's comment. >> absolutely disgraceful, okay. i am very disappointed. a lot of people that said give him time, he'll blow up, well, if he hasn't blown up, he came as close as he can to blowing up without blowing up. how do i feel? i think what happened last week is 100% wrong. it's destructive. it's divisive, it's bad, okay. i still don't like hillary for one reason. i think this is a woman who cares of one thing and one thing alone. herself and power. i don't think she gives a hoot. these people walking down the street here going to work at 7:00 in the morning, i think she could care less. show me one effort on her part personally where she has gone to a school and helped a kid learn how to read or gone to a hospital and read a book to a kid that's dying of cancer. by the way, not just her. none of them do it. >> i imagine we all want examples of those. >> there aren't many of them.

>> given now principled a man i know you are and the fact that you seem to have such a problem with what trump just said. >> big time. >> big time. >> it could have been an italian. how do you think i felt when people were saying in the early days of my career, well, don't mess with that guy, you screw around with him, you might need a couple pairs of crutches to walk around. these guys settle things their own -- i heard it. i felt it. it's terrible. and it's wrong. it was wrong. >> so how could you support a man that was that wrong? >> i am -- hold it. hold it. hold it. i am not raising a nickel for him. i tell you one thing i give this guy a lot of credit for. he's got a hell of a family. i know his son-in-law. he is a wonderful, wonderful guy. in fact, i am in business with his brother in an insurance operation over in jersey. look at his family. look at his family. where i am with trump right now is i am terribly, terribly upset

and disturbed, as i said, for a simple reason. i know what it feels like, okay, to be slotted. it isn't pretty and it isn't nice, and it hurts. it really hurts. >> could he make things right for you? >> he could start by going on television and saying, i want to say something. i am so sorry from the bottom of my heart that, if i -- if i offended one single person by what i said, i apologize. my intent was my interest in this court case, and what i did is 100% wrong, and i can't give any excuse for why i did it. i just hope you'll forgive me. saul became paul in the bible. don't forget that. a guy who was purse cutiersecut crucifying, doing everything you could to christians. all of a sudden becomes a great force, a great character in my

spirituality. redemption is for everybody. he has to start, in my opinion. i will feel a whole lot better if he says, you know what, i really blew that one. remember that eisenhower said when somebody asked if he ever made a mistake. he said, yeah, when i make them they're really beauts. it was around the gary francis powers u-2 plane. people like people who are human enough to say, i blew it. show me that, donald. start with that. that's the road to redemption. >> where would he start with -- he has 30 things to apologize for. >> pardon me. this one here bothers me more than all the others put together. as i said, because i can empathize here very easily. believe me. you have no idea -- particularly a rough around the edges italian kid going to wall street when it was all white-shoe 50 years ago.

i will tell you a story. a man that tried to help me get a job on wall street. good friend of my father-in-law's. my father-in-law was wonderful. he got me interviews. he helped me. he said, kid, you got a problem. i said what's the matter? he said, we got jewish firms for the jews and protestant firms for the protestants. the irish go on the floor of the stock exchange as clerks but the only place we put italians is in the back office as runners. that's where it was 59 years ago. we've come a long way. i haven't been held back by my ethnicity. not at all. it still doesn't obliterate from my mind the memory of people slotting me. i am serious. if your name ended in a vowel, don't mess with that guy. he has a heater someplace on his body. he'll take care of you. >> so a reactionary is opposing political liberalization.

or -- so your point is i have opposed things in the last eight years that have happened politically. is that your point? >> no. >> i have reacted negatively to a lot of what's happened -- >> no. obama, everybody is speculating obama is going to campaign like hell. >> you know he is. >> as a reactionary should i be positive or negative. >> don't be like harwood. i apologize. if i offended you -- harwood is in there sucking his thumb by the thing i said the last time i was here. this guy here, he never gets over it. >> he is -- >> he doesn't care. >> he goes out of his way when he sees me, wherever we are, to assure me we're a lot closer than i agree we are. i am trying to help you now. >> the response to the initiatives and what i have seen happen every the past eight years, i could not have taken them in a positive way. i'm sorry. if i took those in a negative way. >> let's focus on what we need to do. we need jobs.

>> in the first year of the obama presidency when he was working on obamacare, we went down and met with valerie jarrett. you know what her answer was? they had a jobs fairs. do you remember? >> i remember. >> we're going to have a jobs fair on friday. nog about corporate taxes. nothing about regulation. nothing about not focusing on obamacare in the first year and a half. in the middle of a recession they were going to have a jobs fair. that i reacted negatively to. i continue to because it is all about jobs. >> joe, i react negatively too. grant park, speech election night '08. he said and followed through for eight years and said, i am going to make people remember me for one thing and one thing alone. helping every kid that goes to a public school get a better education. if that -- if he had been myopic and if that's all he had done, he would go down in history as one of the greatest presidents we ever had, in my opinion.

education is the way out for all of us. every single one of us. education in one form -- home depot knows that, if we don't help our kids learn about what we have in our stores -- >> i believe the "new york times" magazine did call him the greatest president in history in the article you wrote. wasn't that phrase very close? maybe just below lincoln. >> i know one thing. >> at least you dispelled the reagan myth. >> how long his legs are -- the "new york times" is, in my opinion, on its last legs. technology will take the "new york times" out. >> is that good or bad? >> i'm not sure. >> i'll take the other side of that. >> as long as the "times" does what it does and confuses the editorial page with the front page -- >> confuses? >> we'll take the other side of that after this break. ken is with us for the rest of the program. when we come back, take your seat, the show is about to begin. we make a ceo call to amc

theater and talk about theater trends. the futures have been picking up. dow futures up 36 points. s&p futures up 2.5. nasdaq up close to 7. "squawk box" will be right back. [phone buzzing]

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back to "squawk box" this morning. summer movie season officially here. with it comes the battle for the

big screens. for more on the future of film and how theater is staying ahead of the competition we bring in adam aron. in town for yale's ceo conference. in the midst of a potential deal in europe. >> you never know. i saw the press reports. >> you saw the press reports. >> saw the press reports. >> are you trying to buy those companies in europe? >> you know i can't talk about that. but i will tell you that amc has a very clearly articulated goal, to be the biggest, best movie chain theater in the world. our purchase of carmike, if approved, will make us the biggest in the world. we're renovating our theaters and making them spectacular for guests. >> for those playing at home. i know you don't want to comment, in terms of the capital you have to put to work to redo the theaters, what do you amortize that over? in terms of being able to make a

profit off the expenditures? >> we're talking about soup to nuts redoing the theaters. beautiful new lobbies. reclining seats. quite luxurious. much better food opportunities. much bigger screens. more imax screens and dolby cinema screens. we are seeing great response. our roi's are above 30%. this is good for us, good for consumers, go for movie goers. it's a happy story. >> when we talk about the emergence of amazon prime, netflix and people getting bigger and better tvs at home does it not impact your business? >> no. we're making our theaters so attractive to consumers that we'll get them off their sofas and into the theaters. we put them on reserved,

reclining seats. >> do you have seats for two? >> in addition to that, there are technologies in which we can participate that are out there being contemplated that, if first-run movies ever get broadcast to home, we might be a participant in that revenue stream as well. >> like sean parker's program? >> that's the most prominent one right now. technology moves quickly -- >> this is the idea that you pay $50 for a first-run movie at home. >> for a couple. >> that's okay to you? you would be okay with that? >> we haven't made any formal comment but i have had lots of contact with sean paer, the screener people. it's an interesting concept to amc. >> what do you think is going on in terms of straight box office? kids' programming is doing well. a lot the superhero. but adult films -- i'm not talking about adult films, joe. i want to be clear. >> not this time. >> adult drama.

>> this is a tough table to be at. >> adult drama, this past year and a half has not fared nearly as well. there is a view that maybe the adult dramas are working better at home. going back to the sort of netflix idea. than in the theaters. >> that's a current view. the block busters, the spectaculars have certainly racked up enormous box office grosses. but things change in hollywood, and consumer tastes change in the united states. amc is in this for the long haul. we'll see it change. it will change again and back again. >> the 70 inch high def was going to put you guys out of business. then we had the guy on monday with the vr. >> if it got so good with the glasses where you are immersed in the virtual reality experience and you can watch a full -- it would be weird sitting there with your -- hey, honey, let's go to the movie and you're both sitting there with the glasses. that would be weird. >> i'm sure amc would be an

innovator in the virtual technology. >> if you're right here and it's right on your forehead, why would you need to go to the theater? >> we'll figure out a way. >> that's the reason i go, because you have the new releases. >> plus the popcorn is pretty good. >> that's the current plan. to show you that sometimes oldies but goodies are important. at amc when prince died we did something quite novel and brought back "purple rain." it was sold out for weeks. i am announcing actually on your program -- we'll put out a press release later today -- on friday we'll open up "ali," the 2001 film, oscar-nominated, will smith as muhammad ali. it will play all over the country. it will be a wonderful tribute to him and something that movie-goers will enjoy. >> and the type of thing people want to have -- to share and experience with other people.

>> going to theater is a communal experience. >> how do you market that? most people market the movie. people want to see the movie, but there is something to be said about the experience. so many film makers say what they really want is people to actually want to watch it in the movie theater and part of the process is being able to hear others laugh or cry. >> in this day and age you can get your word out as a marketer immediately. social media has changed the way that happens. all the channels you would expect. but at the end of the day, it's not what we communicate. it's what our product is. that's why i am convinced that big screens, luxurious seats. >> la-z-boys. >> the best way to watch a movie. >> isn't your profit stream largely impacted by the $9 buckets of popcorn? >> we actually make, as -- an equal amount of profits between selling movies on the one hand and the food and beverage offerings on the other. by the way, we are putting full

alcoholic bars -- >> what about the customers who get the candy and hide it in their bags and walk in with it? >> they're going to start frisking them. they'll have a machine. >> do you have a view? >> i am supposed to be opposed but it's a great country and people have been doing what they've been doing for 228 years. as long as they come to our theaters i'm a happy man. >> thank you for being here i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business.

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. welcome back to squawk. mortgage applications rising 9% last week. both new purchase applications and refinancing activity rose. all this as average 30-year mortgage rates fell slightly to 3.83%. a milestone for online shopping according to a ups survey. consumers say they bought more than half their purchases online rather than in a brick-and-mortar store. that's the first time the 50% mark has been crossed in the survey. quick check on crude this morning. highest point in eight months. prices could further see upside later on depending on how the energy department's weekly report on crude inventories

turns out. we'll get the numbers at 10:30 eastern time. wti trading at $51.01. it was the smoking gun of the housing crisis. now it is making a comeback. die anna olick joins us with more. good morning. >> remember the stated income loans, you could tell the bank where you worked, what you made. they called them no doc or low doc during the crashing boom and after the crash they called them liar loans. now there is the light doc program. you need 40%. a minimum 700 fico credit score and you have to occupy the home. but all you need on the document side is verification of employment, two months of bank statements and enough cash in a checking account at quantic to cover the costs of the loan for six months. for those of you who know

today's tight mortgage rules, you know this doesn't comply with new federal regulations. so how is this legal? it's designated as a cdfi, which is part of a treasury program from 1994 designed to revitalize low-income areas. that said. it can make the loans to anyone, anywhere. so far they're doing it in new york and miami. i spoke with the bank's ceo. he said, quote, i see them as extraordinarily low risk. they're mission oriented. worst case scenario is the buyer goes delinquent and you have to foreclose. there is nothing to keep bore we w -- borrowers to wllie on the loans. >> you have to be kidding. >> the borrower needs a 40% down payment. that's huge. that's a lot of skin in the game. and during the housing boom, the

last no-doc loans, you didn't need anything to get the loans. it's big down payment. >> the ability to repay? in all of his screaming. all of his screaming, he never once said anything about the ability to repay. it was, quote, a right of every american to own a house. here is the -- joe, here is an example. >> mm-hmm. >> these demagogues like barney frank who were pushing for everybody to have access to mortgage money, for everybody to own a home, whether they could pay or not. where is he now? why doesn't somebody come forward and say i blew that one. >> i give you 40% is a big number to put down, but it sounds like the beginning of a slippery slope. >> it could be. this is obviously designed to help lower to middle income people. the ceo said it's designed for a different group of borrower.

maybe a large family. >> it seems odd that that will help low to middle income people. >> who in the low to middle income sphere will have 40%. especially new york city. even queens which they say is the new brooklyn. it's not really going to get to the true low-income borrower or someone who is single and trying to put down the down payment on their own. it could be dangerous. it could be helpful. right now it's pretty well known that the mortgage market is very tight. and it is hard for first-time borrowers to get a loan. >> thank you. >> that's the way it was supposed to be. that was the intent of dodd-frank. now we have a real adult story for you this morning. talking about adult films earlier. this a different. a clothing-optional restaurant is opening for business in london this weekend. the restaurant is in an undisclosed central-south london location, joseph. it has bamboo partitions and

candle-light to make the restaurant, quote, discreet, with a capacity of 42 patrons at a time. the restaurant already has a waiting list apparently of 40,000 people. >> we talked about this probably three months ago at least. >> i would lose my appetite. >> here are the pictures. >> do you know when -- we have done this in the news business. do you remember when naked news? we were way ahead of this. naked news was 1999. 17 years later they come up with a restaurant. i don't think it's that innovative. i'm with ken. my dad said that long ago. most nude -- the people who love to be nude are the ones you don't want to see nude, typically. for some reason. >> what do you say is the graveyard of love? nudity? [ laughing ] >> okay. coming up, more from this guy, ken langone. on nudity, the economy and

markets. later, ginkgo's bioworks disrupting the world of fragrances. the ceo joins us to discuss how they're using microorganisms to recreate the sweet smell of roses. squawk returns with that in a little bit. actions speak louder.

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

see. you're young and politically correct. dow opens about 40 points higher. nasdaq up and the s&p 500 up as well about three points. coming up when we return, we'll talk about cultivated foods. it's been around for hundreds of years. beer, wine. cheese, yogurt. what about fragrances? another disruptor looking to use the magic of organisms. the ceo of ginkgo bioworks joins us on "squawk box" in just a moment. ♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring

take the roar out of snore. yet another innovation only at a sleep number store.

welcome back to "squawk box" this morning. all week we are talking to risk takers, inventors and disruptors. jason kelly is the ceo of ginkgo bioworks which develops organisms in a lab. announcing news today about the company's financing and funding. we are happy to have you here. you want to go with the funding first? i want to get into what the company actually does. >> i'll briefly mention. announced closing a $100 million

financing around the company. announced today. >> this gentleman was trying to get to that. why don't you explain what you do and how it works. >> ginkgo is an organism design company. customers come with a microbe they want to genetically engineer to do something and we do it. it's different to think you can design biology. it's basically one fact about biology you need to know to understand that. that's at the heart of biology is digital code in the form of dna. it's like 0s and 1s. >> make it practical for us. in the tease we talked about recreating the smell of a rose. without actually having to use a rose petal which is something that fragrance companies have had to use forever to do that.

how does it work? >> a lot of the new fund-raising is driven by near-term commercial traction. where we are using the technology today is, for example, in a partnership with a french fragrance company. they've been selling rose oil for 150 years. you press rose petals and roses come out. we look at the roses and understand the dna and move it into brewer's yeast and in a process that looks like beer brewing out comes rose oil. >> it's cheaper than taking and pressing roses? >> less land use and labor. you go from a two-year growth cycle to a two-week. >> everything you do is a gmo. if anyone speaks the truth about gmos, it should be you. >> wrote an op-ed about it. >> gmos are fine but i want to do all the labeling. you're throwing a bone to the

junk science left that doesn't understand it. you said it's transparency. you say transparency is always good. but that's just -- >> what is the junk science left? >> saying that anything that has a gmo in it i want to know and i'm not going to touch it. if meat is fed with a crop that's genetically modified there are people who won't eat that meat. >> that's right. >> insanity. >> the only thing that bothers me with gmo is the stuff they're doing with soybeans and other crops that make it more resistant to pesticides. i am not more resistant to pesticides. >> what we've done with breeding and crops over the last 500 years. you are doing the same thing. you're just doing it in a more rational way and in a quicker way. >> not all gmo is equal. that's the one issue. >> but there is a knee-jerk reaction against gmos is

unwarranted. >> what are people saying about these issues. >> i have a ph.d. in biological engineering from m.i.t. i am a true biological scientist. there is no evidence that gmos are unsafe. at the same time by not being transparent about how we make things, it just makes people distrust the technology. >> and add to the conspiracy theory. >> it does. we should be proud of it. we are at ginkgo. we have great designers. we are proud of what we're doing. >> what about organic in the food space? make sense to you or not? >> any focus on how we make things makes sense to me. >> it's a semantic argument as well. >> he is replicating nature. >> everything is a chemical. >> i'm trying to understand. >> we don't want anything with chemicals in it. we don't want anything with chemicals in it. >> as a consumer who has watched a lot of consumers go into whole foods and pay extreme premiums for quote-unquote organic food

i'm trying to understand from a guy in the business how we should think about that. >> i think we're getting taken. >> i know what you think about it. >> it's pointing out how this thing was produced. there are rules about how to make stuff that make it organic. that's a good thing. >> where do you shop? >> i live a block from whole foods in cambridge. we're only allowed to shop at whole foods in cambridge. >> how about the cost per ounce of rose oil off the leaf, the petal, versus -- >> yeah. at least a 50% cost reduction to go to the fermented product. >> what other -- >> this is a modern therapeutic? >> no compromise in effect? >> you can get the same product, or you can also work with their perfumers to make new products. what's really exciting is -- you want to breed a new rose, that takes years. you want to make a new yeast, it takes weeks. this is a product that hasn't been innovated on in hundreds of years. we're getting into cosmetics.

sweeteners. >> i did work at the same place too. i didn't get a ph.d. but -- all modern therapeutics will eventually be genetically modified therapeutics. who doesn't want something that cure lymphoma. oh, no! is that a gmo? all the new therapeutics are genetically modified substances. >> my father is a -- >> someone has got to -- you need to be a -- a -- a mega phone for this. >> my father had juvenile buy beet diabetes. he has been taking insulin -- >> the patents? >> it's the scale. we have a foundry at ginkgo. he want a ph.d. from m.i.t. it's five years of moving things around a bench. as we do more of it it becomes

less expensive. >> you want to become a publicly traded company. >> yes. >> stand alone company. >> does the plant have flexibility to go from one scent, for example, to another? >> yes. with the same yeast, just different reprogramming of it, it can make different things. >> until you get to the yeast it's the same process? it's when you take it from the yeast to where you want the effect that it becomes -- >> different yeast are different fragrances? >> all the yeast can come out of the same plant. >> from our facility, yeah. >> how many fragrances are single loci codes? >> they're multi-gene, some of them. >> that must be hard to figure out. >> i like to think we're the best engineers in the world. >> what's the minimum and maximum amount of genes you would need. >> ordinary designers are doing two to ten. >> as many as ten. >> the second thing we announced today was an order for 600

million base pairs of gene length synthesis. 60% of the market. >> i would think there will be post transcriptional things you would need to do to -- >> wow. >> look at this. >> aren't this post transcriptional things you need to do to get the actual -- >> what does that mean? >> it's the things that happen to the rna rather than the dna. >> right. >> what do you mean "right"? >> i am impressed. >> aren't there things you would have to do -- >> do a translation for the viewers. >> translation is the next step. message from the protein. >> when you make a protein therapeutic like insulin for a drug there are certain modifications that happen. the dna is read. >> the cytoplasm. >> it's turned into this protein in the cell. things happen that modify that. >> to get the right gene product. >> if you move it into a new species it may not happen correctly. what we're doing is --

>> your plant has flexibility. >> yeah. our facility, our factory. >> what are you doing with $100 million? >> building a bigger one? >> it costs that much? >> part will go to that. 25,000 square feet that we have right now. we're adding 75,000 square feet. >> how much will that cost? >> 20 million. >> what about the other? >> using it. >> nobody is taking it home. >> for customers. >> taking it home? where is the fun in that? >> just asking. great to see you. later on disrupting the music industry we have the ceo of the streaming service deezer joining us at 8:40 this morning. when we come back, we have stocks to watch, plus check out the futures. they have been higher all morning long. right now, you'll see that they have actually picked up more steam. dow futures up 42 points. s&p up 3.5. nasdaq up by ten. stick around. "squawk box" will be right back.

uh, maybe we should call i.t.

welcome back to "squawk box," everyone. the world bank cutting its 2016 global growth forecast today to 2.4% from 2.9% citing sluggish growth in advanced economies. stubbornly low commodity prices. weak global trade and diminishing capital flows. looking at a couple stocks to watch this morning. lending club shares rising, the online lender's former ceo

reportedly speaking with private equity firms about a potential takeover. the ceo left lending club last month after a probe in falsified loan documents by the company. the name was there, andrew. i just skipped it. then i called him the ceo. that's what we do. it's okay, right? >> good. >> i can do it. watching voice and video conferencing company polycom received a takeover bid from an unnamed private equity suitor. already has a deal in place to be bought by my-tel. southwest airlines rooeporting 6.4% increase. it continues to expect a modest increase in operating revenue for the current quarter. when we return, hillary

makes hitter but bernie vowing to fight on. later, libbertarian presidential candidate gary johnson will join us. "squawk box" will be right back. every year, the amount of data your enterprise uses goes up. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow on the network of yesterday.

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new this morning, clinton takes california, and the title as presumptive democratic nominee. now hillary versus donald is set for a november showdown. but what about gary johnson? the libertarian presidential candidate joins us live to make his case. the cnbc disruptor 50, the list of private companies revolutionizing the game. watch out spotify and apple music. deezer has its sights set on the unicorn. could the smartphone soon be a thing of the past? a troubling new report for device makers as the final hour of "squawk box" begins right now. ♪ ♪ running down a dream ♪ >> live from the most powerful city in the world, new york. this is "squawk box." ♪ running down a dream welcome back to "squawk

box." here on cnbc, first in business worldwide. i'm joe kernen along with rebecca quick and andrew ross sorkin. and our guest host, my i guess friend, ken langone. less than 90 minutes away from the opening bell on wall street. futures right now have been pretty good all day long. they have been slowly -- it's -- we've said melt up. kind of a melt-up since we got in at 6:00. 17 to start on the dow. now up almost 50. almost 4 on the s&p. nasdaq up about 11. see what's happening over in socialism land. germany down .24%. france just off a little bit. the ftse is marginally higher. headlines taking place at this hour. oil prices rising today hitting eight-month highs. among the reason. supply disruptions in nigeria and strong japanese demand data.

wti crude at $51.13. mortgage applications rising more than 9% as the 30-year rate declined. india's prime minister modi will address a joint meeting of congress today. he met with president obama yesterday at a meeting with modi amazon ceo jeff bezos announced the ecommerce giant would invest an additional $3 billion in india bringing that company's investment to more than $5 billion. let's start off with something hitting the wires. target corporation announcing a quarterly dividend of 60 cents a share, a 7.1% increase from the prior quarter. it had a dividend of 5.6%. the stock already yielding 3.2% even before the news. you can see this morning -- this is just coming out -- the stock looks to be down by nine cents. we'll see what happens as the news hits the wires. lululemon. earnings missing estimates by a

penny. the yogawear maker raising its full-year revenue view. still below the current street consensus. stock up 3.5%. dave and buster's beating the street and raising its full-year guidance. it says it did well despite challenges affecting many of its casual dining rivals. that stock is up over 4.5%. veriphone cutting annual outlook after weak second quarter results. that stock down by 30%. shares of panasonic rising after tesla ceo elon musk said his electric car maker is working exclusively with the company to supply batteries for the model 3. varrant systems reporting a loss. it makes security, risk and compliance software. polycom receiving a buyout offer from a private equity firm

for $12.25 a share. the provider of voice and video conferencing solutions already has a deal in place to be acquired by mattel and continues to support that deal. still you can see the shares trading even above the latest offer price at $12.41. joe. stocks marching higher. the s&p seeing its highest close since last july, despite receipt gains stocks relatively flat over the last year. there have been some bright spots. dom chu joins us with a look at some of those bright spots. >> if you pulled a rip van winkle, you know that if you fell asleep during last may and just woke up, the market hasn't done much. if you look at the volatility. we've seen quite a bit of it. we still know that utilities have been huge standouts. energy the laggards sector-wise.

since may 20th, five stocks in the s&p 500 have posted gains of at least 50% or more since that time. so real, real upside winners despite the flat market. look at some of the names. we picked out a few to give you an idea of the kinds of names we're talking about. first of all, big moves here, the likes of ulta salon and beauty. that stock up 59% since we saw the record highs last may. another one. amazon.com. andrew was talking about this idea that jeff bezos announced a huge intention to invest in india. amazon shares up 71% since the last record high. the best performing stock in the entire s&p 500 since we saw the record highs last may, nvidia, a semi conductor maker. computer chips that power graphics for high-performance computer machines. these three stocks have done really well. if we see the record highs again, will it be the same stocks that take us there is the big question. >> leadership always matters.

now to the race for the white house. hillary clinton officially clinching the democratic nomination. but bernie sanders is not backing down, vowing to continue his fight until july. donald trump also sharpening his attacks against the presumptive democratic nominee. joining us is democratic strategist and the senior vice president at skd knickerbocker. he served as an aide to kir stin gillibrand. thank you for joining us. >> thank you for having me. >> what do you think happens next? you think the healing process -- this is the time for it to begin? >> sure. i think secretary clinton, presumptive nominee clinton, made a very clear case for unity in her speech last night. there was a wonderful moment where the crowd was just cheering. and she had her arms wide open, and she just let it all wash over her. it was this very unguarded moment on her face when she knew it was real and it happened.

>> it takes two to tango. bernie sanders is not backing down. he said he plans to go all the way -- >> he is letting a lot of his staff go. i think that's a very big sign of a campaign logistically starting to shut down. he was holding out for california. ap called it with a 13-point spread this morning. there is no path forward to him. i think that he knows that. he has unfortunately -- and this has been very self-directed as politico revealed and a couple other folks have revealed -- it's a very self-directed campaign the last couple of months have been very bitter. hopefully he sees that she -- she is the only wall, so to speak, between the united states and donald trump as president. so if he cares about progressive governance and creating a movement that doesn't just have to do with him but has to do with a real broad vision he'll do what's right and get behind her. >> they don't agree on a lot of issues and he's made it very

clear that he wants to influence the party and the platform. how much will hillary clinton bend to that? the lead article in the "wall street journal" this morning is about how far left she has moved from where she was 16 years ago. >> sure. i think she knows that the base of the party has become far more progressive. but way beyond that, sanders has already influenced the party. sanders has already influenced the platform. he has many more folks who are named to the rules committee who decide the platform, i believe. he is going to be very reflected there. those quote-unquote concessions have already happened. the inclusion is already happening. which leads me to say, why are you still bitterly firing away? it doesn't make sense. >> is it the right move for the party to move that direction left? is that where you think america is today? >> we have some people at the table who care deeply about progressive policies. you have no idea -- >> two out of five so far. >> you have no idea how deeply i

care about progressive policies. they scare the daylights out of me. >> i thought you loved them, joe. >> you'll have to concede this about this election. you talked about letting it wash over her with her arms like that. so, consider what percentage of the country sees donald trump letting it wash all over him -- what is their feeling, in terms of the visceral feeling, and then what is the people on the other side watching that happen to hillary? now, who wins on terms of the number of people -- that's what this election is going to come down, the number of people that aren't viscerally absolutely disgusted by one or the other. >> i think there will always be people who are hard-nosed when it comes to hillary clinton. i think there are many, many more, because of what he says and what he stands for, his instability, for donald trump. >> the drama will play out for 75 years, the drama of the email. >> those are office rules. she is not running for president of --

>> take your pick. clinton foundation. middle east problems. >> use the drudge report talking points as much as you want. >> you can use "the huffington post" talking points as much as you want. it's tit for tat on all these issues. >> forget the nuances and the noise. is the average american better off today than he was eight years ago or not? >> yes. >> then why are they so angry? what do you think this election is about? >> i have been asking why the republican base is so angry besides being frothed up by fox news and talk radio for so long. >> the republican -- >> you know what, the one thing -- >> i think -- go ahead. >> guys in your business know less about what's going on in your market, which are these people out there that vote. i'm thrilled with all of the consultants and the advisors and all these. they completely missed this mood. completely. >> i don't think that that's true when you can say that --

>> your job is at risk. you better hope it's not true. because if it is true, you're obsolete. >> i don't think that that's accurate at all. i think i'm going to have a job tomorrow -- >> because you know what, there is some fool out there that always wants to get elected to something. after this fight you show up at his doorstep and say, let me help you win. >> i don't think, whether it's a consultant or a voter, are backing a fool. hillary clinton has gotten 3 million more votes than bernie sanders and 2 million more than donald trump. that's winning. that's backing the strongest candidate out there. >> why is her approval rating so bad? >> because she has been knocked around and knocked around -- >> it's the other guy's fault. nothing she did. >> it's hard in politics to maintain a sky-high positivity rating. >> she could have helped the poor people in benghazi who were killed. oh, she had nothing to do about it. >> that's what every house committee has found. she had nothing to do with it. are we really going to talk

benghazi? >> let's forget benghazi. why does she have a foundation in canada? >> why does she have a foundation in canada. >> the hilton foundation has a -- i don't know. >> it's hers. >> oh, the clinton foundation. >> has a canadian arm. >> i actually don't know about the work they do in canada. >> the despots want money. >> the clinton foundation has img proved and saves millions of lives through education, work with women and aids and hiv work in framework aafrica and around. you can't deny that. >> go out and sell that whatever you want to call it. the clinton foundation has done one thing, served as a place to park people until they're ready to use them in politics. >> absolutely inaccurate. >> like blumenthal. he didn't work for the foundation? >> he's done work for the foundation absolutely.

>> where is he now? >> you mean at this moment in time? >> don't be a wise-ass. >> do you think they've done any good work. >> why are you focusing on negative rumors rather than the good they've done? >> you've given a lot of money away -- >> the results. >> you -- >> you read the article. you know what the percentage is. >> i admire -- >> i don't have a foundation. >> you can't deny that they have done wonderful work with theirs too. just because you don't agree with them, you can't minimize the work they've done. >> help me out. >> you said i was going to get finished. >> may i ask my question? >> of course. >> how many people are now in the clinton campaign that worked for the foundation before she declared she was running for president? >> if you're going to run a presidential campaign you want -- >> please answer my question.

>> i am doing that. >> all right. don't give me an explanation. >> you want people you've known for years and trusted. >> how are they being paid by a foundation for charitable purposes. the minute she declares, boom, they move to the camp. we call that parking. >> i call it a human resources question. >> forget it. >> jon, thank you. >> you're very welcome. >> nice to see you. >> i'm over here. >> dude, this was great. >> i did start it, though. >> it's nice. >> it was fun. >> yeah, it was fun. >> my adrenaline is up, my friends. when we come back. >> use your fact checker. questions. 7% growth sound good? if you're not talking about smartphones. details on a troubling new report. we're going to tell you about it when we return. frsh.

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welcome back to "squawk box," everybody. in our headlines this morning a new research report today predicts that smartphone growth will only hit 7% this year. gartner notes this is down significantly from the 14.4% growth we saw last year. among the reasons, slowing replacement in mature markets

where smartphone penetration has hit 90%. gartner suggests new models are not changing enough to make consumers want to upgrade. dow flirting with 18,000. s&p within 1% of its all-time high. our next guest says we're still in a buffalo market. cautions we could see a summer pull-back of 5%. joining us chris heisey. buffalo market. what's going to be the tipping point? >> there are a lot of tipping points. we're stuck in a range right now. a buffalo market is one that's in the bull family but tends to roam for a long period of time. you're mid-cycle. confusing data coming out. it's mixed. the fed is data-dependent. the window opens. the window closes. u.k. referendum. spanish elections. our own elections and we're waiting for positive earnings

momentum. we're stuck. it's mud, not quick stand. a buffalo market can roam for a while and runs the other way at the first sight of something very negative. >> if your expectation is we go down 5%, are you saying get out of the market? or stay where you are and do nothing? >> you can't do nothing. if you do nothing and don't accumulate cash flows you're losing your status. you have to be more active now in this part of the cycle. you cannot be as passive as you were. it's not a directional market. stock correlations are coming down. we're risk neutral across the board. it's difficult on an absolute basis to be aggressively overweight equities, but you can't be out. when you look at accumulating cash flows it's difficult at the fixed income level. you have to go into dividend growth areas. you still should be there. to accumulate cash flows in dividend-paying companies that benefit from the expansion of

this cycle is really the area that's most efficient with your capital. >> ken, are you buying any of this? >> one question. if you are a long-term investor, are you a buyer or seller. >> still buyers. >> you do your fundamental work. basic business. you are a buyer. >> absolutely. >> why do we try to persuade more people to become long-term investors and explain to them the benefits over the long term of where -- how they get to where they want to get more likely than -- than these market-timing analyses and projections. people don't understand that. >> no. most people don't. at the high-end worth level a lot of folks have taken profits, a lot of folks who have been over their budgets in terms of investment policies on equities. with the political spectrum that's something on this summer some are taking profits. we are advocating some profits, getting down to your stated policy objectives for the long term.

on a tactical basis it's not mossack fonsecaing -- it's making sure you are as tax efficient as you possibly can. >> the best tax efficiency is when you have gains don't sell. you don't pay taxes. >> for the areas you continue to like, that's right. >> if you own great stocks, look, what's the number -- if you miss eight days in the market in a given security in 12 months, you missed 90% of the play? who is smart enough -- >> compounded too. >> who is smart enough to know which eight days are the right eight days to be out? if you have good stocks and your affairs are in order, you can live within your means. >> that's the key right there. your affairs are in order. >> the argument is don't screw around in the market if you need the money to live on. >> that's right. >> if you have a little bit of cash on the sidelines, do you hold on waiting for the 5% pull-back moment? >> if you are a top-line market

investor and you're only invested in the market and you want to wait out the political maelstrom that we're going into, that's fine. as ken was saying, you own good cubic inch companies. there are very good companies on sale. across technology, across energy, across a am number of the cyclical areas. it's shifting from growth to value and from defensive to cyclicals. if you own good dividend paying companies that are on sale that you can accumulate through a potential pull-back that's how you do it. >> we'll leave it there. still to come this morning. libertarian presidential candidate gary johnson. streaming music service and cnbc disruptor 50 member deezer. and much more from our guest host ken langone. we'll be right back. ♪

welcome back, everybody. keurig's cold plants have been cold. the coffee machine maker pulling the plug on the cold drink machine after it failed to win over customers. the pod-based appliance would have allowed users to make chilled beverages at home. it's offering refunds to those who bought the machines. it retailed for over $350.

>> good move. >> offering money back to the customer. >> very smart. calling all harry potter fans. there is a message for you. keep your mouth shut. harry potter and the cursed child had its first preview in london. theater-goers have been urged not to reveal details. rowling said there will be no new book. scripts will be available to buy worldwide next month. coming up, trump and clinton. on the way to a november showdown. gary johnson wants the american people to give him a look and a shot at the job too. the libertarian candidate for president will join us live next. first, as we head to break. a look at u.s. equity futures up 38 or so on the dow. 3 on the s&p. just under 10 on the nasdaq. we'll be right back. thank you. ordering chinese food is a very predictable experience.

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♪ i found out that everybody talks, everybody talks, everybody talks -- it started it a whisper ♪ ♪

welcome back to "squawk box," here is what is in our headlines this morning. watching shares of retailer target after the company announced a 7.1% increase in quarterly dividend. it raised it to 60 cents a share from 56. the stock now up just over 1%. president obama meets with senator bernie sanders at the white house tomorrow, a meeting requested by sanders. he has vowed to fight on even as hillary clinton declared victory in the democratic presidential race after yesterday's primaries. apple raised nearly $1.4 billion in its first-ever bond sale in taiwan, home to many apple suppliers. the 30-year bond was priced with a yield of 4.15%. snapchat putting a greater focus on publishers. given them the ability to show the feeds. new designs swaps the original round icons with the company's logo for square icons containing an image and a headline.

you are snapchat yet? langone? >> wha is it? >> during the break we'll do a little -- >> all right. now that hillary clinton has clinched the democratic party's domination, the presidential race is now officially clinton versus trump. our next guest says it's actually a three-person race. clinton versus trump, both against gary johnson. he is the libertarian presidential candidate who served two terms as a republican governor of new mexico. governor, it's good to see you. >> great to be with you. just starting off with full disclosure. ken langone, i contribute to a couple vacation days for you every year because of the amount of money that i spend at home depot. >> wonderful. you can never spend enough money at home depot. >> you can't! it's impossible. >> tell me which store you go to and i'll put a bed in there for you. i'll make sure you never have to leave. >> they treat me well all the time. no need. >> the company is all about the kids that work with you in that

store. that's the success of the home depot. >> i agree. >> seeing kids. thank you very much. you made my day. you made my week. you might have made my life, okay? >> governor, i have been watching you make some round and getting more familiar with who you are and where you stand on these things. i try to figure out people and start of who to expect. i am a little bit confused as to what type of libertarian you are. because i have seen that you have got some -- either -- either bernie sanders' supporters kind of like you or you think that you have some -- some similar things as bernie sanders. you have some empathy for where sanders is on some of his positions. >> sure! >> i don't understand how a libertarian who doesn't want any government involvement and wants small government can have something in common with a guy who wants the government to do everything. that's -- so i don't understand the disconnect there. >> so, joe, there is a website called "i side with.com."

i would love everybody in the country to go onto the website, take the political quiz and see who they pair up with politically. >> you might be surprised. >> easy to get on, you know. but anyway, outside of siding with myself, amazingly i side with bernie sanders. obviously, we come to a t in the road when it comes to economics. we come to a t in the road when it comes to big government versus small government. me being the small-government guy. >> pretty important issues. >> oh, yeah. >> that's the whole crux of this election, though. >> i think so. i think -- i think the biggest issue is big government versus small government. >> right. >> but then there is the whole personal liberty and freedom and choice part of this. >> true. >> that comes with being an american and shouldn't you have the ability to make choice -- always come down on the side of choice as long as the choices don't put others in harm's way. then i do think military interventions have had the

unintended consequence of making the world less safe, not more safe. and hey, an invincible national defense involving congress and these declarations of war, look, i think we can do a better job. >> governor, i have a question for you. and i appreciate your kind words about depot. i think the people in our stores deserve it. question. my partner, bernie marcus wrote an op-ed piece last week where he pointed out that largely because of regulations we would not be able to start a home depot today. this is only 30 -- 37 years ago. we right now have over 450,000 wonderful, hard-working people none of whom are paid minimum wage. in fact, all of them are paid significantly more than minimum wage. my question is, libertarian, republican or democrat, how do

we get this capitalistic engine back that we can do the things we do well, three of us. bernie, arthur and myself? $2 million that we begged for. here we are with 450,000 people, every single day, having a job. by the way, i am inflating the number a bit because this includes part-time. but based -- we have about 380,000 full-time people. when do we get back to doing what this country needs to get done, which is the biggest challenge we have is creating jobs for everybody to wants to work. help us. how do we do it? >> i am looking to get elected president of the united states. so just count on me to reduce the size and scope of government. just count on me to do that. when it comes to taxation, count on me to sign on to anything that simplifies our tax system, that lowers corporate tax, but if i were to wave a magic wand,

i would eliminate income tax, i would eliminate corporate tax. i would abolish the irs and replace it all with one single federal consumption tax. i suggest that you look at the fair tax as a way to dot the is and cross the ts on making that happen. if by eliminating corporate tax, tens of millions of jobs are not created in this country for no other reason than zero corporate tax, i don't know what else we could do. ken, i grew a handyman business from one person to 1,000 people in new mexico. i would not be able to start that business today for all those same reasons that you talk about. government can play a role in leveling this playing field to make it easier to be in business. entrepreneurship, nobody is really talking about entrepreneurship and how people can be empowered to create their

own jobs or to create many, many other jobs. it's becoming more and more difficult. regulation benefits those that are in business. ken, you would probably also admit that, because you are established, because you are in business, in many ways you are excluding those people -- you couldn't get in business today, well, competitors can't get in business today because of just how difficult it is. >> by the way, take the banking industry. the enormous regulations that have been put on banks today. it's unlikely small banks can get started because regulations -- regulatory costs are the equivalent of a regressive tax, whether you make money or not, you have the cost of regulation. >> yesterday, because of the ballot access rules that exist in this country, we had to cut an immediate $250 cashier's check. i could not get a cashier's check in bank of america -- by

the way, i do business with merrill lynch. i couldn't get a cashier's check by presenting $250 cash. apparently that had to do with dodd-frank. >> you got it. >> this is where we've gotten to? >> 250 bucks. >> cash. give me a cashier's check. sorry. that's regulations don't allow us to do that. how about my merrill lynch debit card? and merrill lynch, you're connected with bank of america. no. who can tell you whether or not that is part of dodd-frank because dodd-frank is so gigantic. >> we have to leave, but the last thing that is also part of my, you know, not understanding exactly who you are. in a three-way race hillary clinton loses to trump. she wins the two-way race but the one i saw recently, trump was 40, she was 39, and you were like 9 or 10. so you are taking -- most people

think a third-party candidate takes away from trump, but you -- >> joe, the idea here is to actually win. but the only way that a third party has a winning is to be in the presidential debates. i think, by being in the polls that it's really possible to be at 15%. and look, if i am in the presidential debates and i'm representing 25 million people, the eventual winner will have to do more than just pay lip service to the things i'm saying. i will be talking about smaller government, regulation that benefits all not a few. and for the most part, look, i vetoed more legislation as governor of new mexico than arguably the other 49 governors in the country combined. so i am a real skeptic when it comes to government and laws and regulation. >> governor, help me out. where were you during the republican -- you would have been great in the republican primaries. why didn't we have a chance to have you then? >> ken, i was in the republican primaries in 2012.

and bill weld, my running mate, succumbed to the same thing. i am physically conservative and socially liberal. well, republicans have pushed out those who are socially liberal. i have always thought the republican party was all about smaller government. >> you're right. >> myself and bill weld have delivered on that in spades but really pushed out because of our views on abortion and a woman's right to choose. marriage equality. legalizing marijuana. look, we have the highest incarceration rate of any country in the world. i think republicans have some responsibility in that. >> all right. governor, thank you. >> hey, hey, watched your show a thousand times at least. i was on. thank you! >> great to have you. and thanks for watching. who is your favorite? becky? >> of course. >> thanks, gary. >> what about me? >> am i chopped liver? >> andrew, i think you have been a great addition.

you're going up against the icons there. eventually you'll emerge. >> wow. can you come back tomorrow? >> thanks for shopping home depot. >> okay. >> thanks for that. when we come back, facing the music. deezer shaking up the streaming industry, taking on the likes of pandora, spotify and tlapple.

continuing with our coverage of the cnbc disruptor 50, our list of the world's most innovative and ambitious companies. deezer has unveiled in 180 countries around the globe. the ceo joins us from paris where the company is based. good morning and congratulations on making the list. you're all over the world with millions of users, yet here in the united states not a lot of people know about you. what is it that you do and how is it different than spotify and apple music and everybody else playing in this space? >> i think the main reason is we build a business in france and europe in the first place. the u.s. has been a big focus

for us. we have good partnerships there with sonas and cricket. i think the unique point with deezer is we have a product called flow. we are giving the consumer a unique listening experience based on where he is, what he is doing. it's a part of discovery, part of the music he likes. we try to kind a unique moment for the people to listen to the tune or the sound they want to listen to. that's pretty unique for us. >> are hit musicians changing this business, which is to say, still holding back some songs? right now you have this fight going on. you guys, tidal trying to get tracks early. apple music trying to get tracks early. spotify. it often feels, as a user, that we're all sort of second fiddle, which is to say you're paying a subscription fee and you don't actually have the hottest music necessarily. >> i think it's a very small

amount of artists which goes out exclusive. normally it's very time limited as well. just two weeks. i don't think it makes a big difference for the end consumer. i think we all need to understand and the artists understand more and more as well it's a gigantic opportunity in terms of building a market. more than half the revenues are coming from digital. bigger in streaming than physical. and we're starting to conquer new markets like asia and south africa. we need to find a good value proposition for the artists as well, which is a fair point. before we start to get too complicated what songs goes where, i think we should share the great opportunity which is ahead of us. >> do you think we'll ever get to the point where this is exclusive music to the services and they stay there? like a netflix situation where you actually have originals, if you will?

a netflix original or a deezer original and it's just -- it's only available on one service? >> i don't think so. i think it's dangerous for the industry as such. music experience is very unique. every consumer has different tastes and different genres. you can't cluster that easy. consumers don't go to several distribution platforms just to find the right tune. we shouldn't make it too complicated. we did in the past and piracy was the biggest winner. we should avoid this and make the access to the music easy and distinguish ourselves in how the consumer consume the music. like with our flow products. >> real quickly before you go, you had an ipo on the table and you pulled it given the market. when does it come back and do you need it to come back? >> we just raised a hundred million euros.

over $110 million from many private investors. we have the cash in the bank to fulfill our plans. and everything else we decide when we have to decide it. there is no need for us to go for an ipo at this stage. >> we'll leave it there. congratulations on making the list. we appreciate it. our cnbc disruptor 50 coverage will continue. coming up at 11:00 a.m. eastern an "squawk alley." ezetap ceo will be on the show. when we return jim cramer joins us live from the new york stock exchange. first, check out the markets in europe. mixed picture there. ftse holding on to slight gains. dax and cac are down. stick around. you're watching "squawk box." first in business worldwide.

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let's get to the new york stock exchange. jim cramer joins us now. for a while, jim, i was saying here we are looking at oil every day after we do the markets. you know what, now i'm back to thinking we probably should. because it's still working, isn't it? >> yeah, it is.

i don't know how much is nigeria offline, i don't know hoich is libya offline. demand in india, demand in china. i know in china some people saying imports didn't show big oil numbers for china. just been taking oil back and forth to china and i would tell you that the demand there is incredibly strong. and a lot of that is because the car registrations are up big. so there is actual demand for oil, which means there's actual demand for goods around the world, commodity prices been up now for six straight days. so i do think there's -- the complex is better. natural gas was a buck 90 not that long ago, now you could say it's because it got hot. i don't care. the fact is there's more demand. >> hey, jim. >> oh, yeah, ken. >> hi. >> how are you doing? >> thanks for the alumni gathering, you were a home run. >> well, thank you. you inspire me to be able to give money to colleges and do the right thing. i wish people knew how much you do, but i know that's not your style. so i'll say it. you are amazing.

>> no, i'm not. i'm blessed. >> no, you do it -- jim, last but not least, i think your guy -- you see the nike news with ben simmons, he's going to be a 76er, i think. >> no, we got a 2018 plan. we can lose another two years. as long as we keep the 2018 plan, we're fine. >> it's fun to watch the nike/under armour battle, seriously. >> oh, my god, steph curry. i've been saying if foot locker gets more steph curry, then foot locker goes higher. >> yeah, but every time someone comes up and you can see these athletes, you got kevin plank bidding on one side and nike on the other, it's great for those athletes too. >> what happens at the golf tournament? do you get to go for pga? >> i could volunteer. but you know what, jim, i'm not going to be in town but i like it better on tv. i just do. >> do you? >> i do. because it's hard to get around there to see exactly, you know,

what you're trying -- >> the most exciting thing in the world though. you got to admit it's the most exciting thing in the world. >> what's neat is i've been playing out there and they're starting early on the rough. right now if you're in the rough you got to go sideways, come right out. >> by the way, play at oakmont on monday. >> that's a great course. >> so tough. >> u.s. open. >> at least six inches high, right? >> you call six inches or an actual six inches. let's go. coming up political -- >> bye, jim. >> wow. thank you, ken. thank you for the nice words. >> see. >> coming up -- >> awkward moment. >> oh, joe's on? >> joe's on. >> more musings from today -- we're going to bring that democrat back for a little longer that everyone enjoyed as much.

our guest host this morning is ken langone. we have a few minutes here just to kick a few more things around. >> yeah. >> i don't know who the best candidate would be for school reform, i don't know who the best candidate necessarily would be in your view for what you think we need to do -- it's a

weird choice facing a lot of americans in that they're voting against someone instead of voting for someone. >> there are three or four issues that matter to me. first and foremost is education. >> okay. >> that's a steppingstone. >> who do you give that to? all right -- >> right now i don't see either one of them putting a stake in that. >> what's the second one? >> generational theft, this is theft -- >> who would do a better job of that? trump doesn't want to reform entitlements. >> i think they're both equally bad. >> on that. what's three? >> old people having to eat their seed corn to live. that's sad. these reverse mortgages, that's exactly what they are. that's all they are. >> yeah. >> and, you know, there's a winner and loser every time -- for example, low interest rates are horrible for the older retired people. who's the winner? the federal government. >> government's everywhere.

>> government gets the benefit of the lower taxes at the expense of the people -- >> you might need policies that ramp up growth before you get away from -- >> i can tell you right now. >> yeah. >> a million things that are bad. i still believe in my heart of hearts we live in the greatest country on earth. we've got serious issues we have to address. eventually one way or the other we will address them. and coming out the other end we're going to be stronger and better with a rosy future. i believe that. now, maybe i'm an old man like these guys say that twitter me. >> one person, everybody else loved you. we read from anders account. >> they don't understand i'm insecure. i'm not going to sleep for a week on that one person. thank god for my wife she builds me up. she says, ken -- >> she's stuck with you through thick and thin. >> she is the absolute best. okay. and i'm blessed. >> who's she voting for? >> i'll let her tell you that. it isn't hillary, i can tell you

that. >> it's gary johnson. >> look, let's get back to what's great about america. and there's a lot of great things about america. we've got to bring these kids to the party. we've got to give these kids a shot at a future. they're not getting it now. this is to me what a tragedy, i remember getting out of a public school as a bad student but having enough to get -- >> nothing gets done. you got one side that wants to spend more money but wants to do it through teachers unions and then the other side doesn't want to spend money wants to break the unions. who's right? >> you know what america's theme should be? >> what? >> don't give up on me, baby. that's what our theme song should be. we're the greatest nation on earth. i got my -- i wore my american flag. >> cuff links. >> today. there's nothing like america. if an idiot like me can do as well as i did, that tells you just the potential of america for the little people. tell my wife that somebody --

why it is i lost weight. >> you look great. >> you hear that, sweetheart? >> that guy wants you as a fourth co-anchor too. >> okay. >> we could replace someone. >> listen, nice to have me. have a great summer. >> make sure you join us tomorrow. "squawk on the street" begins right now. thank you, ken. >> thank you. ♪ good wednesday morning. welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. the s&p within a percentage point of an all-time closing high. a lot to watch. we've got the table set for the election as clinton climpbls a majority of delegates. ecb begins buying corporate bonds as the german tenure nearing the zero bound. oil supported by a drawdown in api but d.o.e. in about 90 minutes. road map begins with amazon