center. >> checkers. >> i wonder if america is a different place today. both political parties seem like many institutions they've lost control. >> they have lost control and people are angry. people are voting for bernie and for donald trump because of an inherent anger. >> sam, thank you so much for being here. >> thank you. >> have a great weekend, everybody. make sure you join us on monday. "squawk on the street" begins right now. ♪ let's groove tonight, share the spice of life ♪ >> good friday morning. welcome to "squawk on the street. i'm carl quintanilla with jim cramer. brexit, bullard, viacom warnings all lead the headlines. our road map begins with viacom warning on q3.

as the board drama continues, we'll go live to paramount pictures for the future. and microsoft wasn't the only offer on the table for linkedin. how sales force missed out. viacom issuing a warning for the current warner. they cite weaker sales after redstone moved to oust five board members. this is a significant warning on estimates. >> yeah. they blame one movie. they claim the slate is going to be very good going forward. but they said the slate was going to be very good going backward. this is a company that's in disarray. if you buy the stock, it's a complete crap shoot. it's rare you are say do we know what's going on in the company? i think they don't. and i say in a vacuum, the stock's a poorer vacuum.

i think you buy it because you get a bid but that's just reckless. >> they're looking at $1 to $1.05. the street was at $1.38. a lot of people come in say a nice base had been set on this name. >> yeah. i just look at this situation and i just think that this is such a poorly run company that the earnings estimates mean nothing. there's a core value to it that we can't determine. i just think that this is a black box. but the stock is going up. it's been very hot. and it not going down big on this preannouncement, which tells me people feel like this company's in play. and i think that it's in play because no one can recall a company that doesn't have anybody running it that doesn't have somebody gunning for it. i wish i had a valuation for it. it ha it's hard to figure. >> some argue a great activist play turns out to be a duel stock like this one. >> you set up a dual class so

your family inherits and there isn't anyone who can come in. remember dow jones had a separate situation and the families broke and murdoch came in. look, to figure out what this company's worth on top of this preannouncement, why do they e preannounce? are they afraid people might be bidding on the stock and they're in possession of the that say, listen, our numbers are so much less than you think so before you take a shot at us, understand this is a material decline in our business. so at least there's someone issuing it. i mean, there's someone who pressed the button, right? >> i guess that's a positive. we'll get to a lot more media news today, including disney in a few moments. first up, though, st. louis fed president jim bullard cutting his economic outlook. he said under current conditions only one rate hike may be necessary over the next 30 months or more, barring unnecessary shocks, he sees gdp

around 2%. he continues to see unemployment around 4.7, inflation around 2, but he is clearly the outlier. we wondered who that was. >> yeah, he was a guy who last year in august was talking about how strong the economy was. he had to pull back, saw the data wasn't so hot. >> you two have a history. little bit. fair to say. >> came around to my view. he's not on the board of lululemon so we're okay there. chip wilson, i do want to speak to you later because i do have comments on the insurgent founder, who i kind of like. bullard is a guy letting the data determine it. i was surprised at this because when oil came up, he was using oil as a sign that the economy is weak and then oil doubles so i thought he might not go this way. you know, people change and i think bullard was a little

doctri doctrinearian and he's backed away from that. i want to hear it's the beginning of it's amazon doing it, it's digitization, it's disruptor. when is the real world going to intrude on the federal reserve's analysis. you're not going to have as many people do as many things. some of the people at sales force talking about how all the apps replace people. i need them to come out and say, listen, we are at a moment where the reason why we can't really grow jobs is because technology is just killing jobs. you could also do offshoring. i'm just saying i need them to understand what digitization means. they don't seem to get it. >> a lot of questions about the model that the st. louis fed is

switching to. housing, the mortgages are fixed, the lowest in a way. >> i will say this. i get the st. louis fed, i get everything the st. louis fed sends out. their data is so superb, even week to week. i worked with them in the 80s. they've been the most disciplined in terms of their analysis. we need housing to be stronger. we're talking about a housing start number that was the same as we were when we were a nation of 150 million people, we are 317 million people. rents are the cause of the cpi going up other than health care. diana ola talking this morning correctly about some of the obstacles. it's not a strong economy but there are pockets of the economy that are very strong and they're wiping out other pockets.

>> a week from today, jim, we're going to come in here and we should know the result of this brexit vote. this murder of jo cox is abhorrent. what happens if there's a remain? do we shoot to 2140? what? >> i have to tell you yesterday when oil was down a buck and a half and the market was looking bad, it really seemed like there was no way to come back. i'm going to hate what i say here, but and then she -- and then the -- wow, then the incident occurred, okay, and then the stock market flew up because the incident was viewed as something that said wait a second, we have to cool the rhetoric and maybe the stay wins. if you look at the s&p, it literally was right up when the murder occurred. >> you think it could change the trajectory of the vote? >> yeah. i mean, it certainly changed --

>> some people say betting lines not changed, jim. i say the s&p violated its ratio with oil and just turned up the moment she was murdered. it's rather remarkable to see that. these betting line, you have all these polls, but the s&p, you got a unique thing with the s&p if they stay and it's going to be pretty bad if you're short. >> they're suspending campaigns, both sides for today. we mentioned la guard. she said there hasn't been a meeting with anybody in the past few months with anybody in which brexit has not come up. take a listen. zit going to cost, it's going to be negative for imcome purposes, it's going to reduce trade due to uncertainty. those are blatant facts. >> and reuters quoting kbw that

u.s. banks could get a 6% hit on earnings. >> we did some yesterday and we went over different american companies that get hit. goldman sachs hit the most. do you have to move to paris? do you have to move to london? this is a job killer. it's so amazing. they're very -- the brexit group is very blithe about the jobs. they're not really talking about the jobs that will be lost but american companies, american banks may have to shift, they may have to go to another country, which is really pretty amazing. >> diamond has basically said as much to the u.k., our business model here is going to have to change. >> you were totally dominated by events. apple going down right now because of talk that the chinese are blocking the six. this country itself, it's so funny, i do all this work on the country itself and i just find it's hapless. i go why am i wasting my time? it's brexit.

it's china. >> it's anything but home. >> it's going over kroger and kroger reversed yesterday. there wasn't anything that really reversed it. i stopped and said i must be the only person studying kroger, they're studying british polls and apple in china and i'm sitting here i like kroger, it's only the largest grocery chain in the country. forget that. i care about having will frost on about the sales for rbs, royal bank of scotland, for barclays. but that's right. that's right. that's not the wrong approach. you have to focus on international. those of us who have prided themselves of being able to do analysis of individual companies here, i accept the macro judgment. you have to accept the verdict. >> we're going to dig into that apple news. the journal saying beijing says the 6 and 6s violate a chinese patent, halting sales. >> tim cook was just there not that long ago so i don't know. china is -- i mean, look, obviously the stock's going to

head down more than $1.75. >> coming up, some tough talk from larry ellison. and the latest on the viacom board saga. he did show up for work today. here's some video him showing up this morning. take a look at the premarket. not much action in either direction. we'll see what the day brings. more "squawk on the street" from post nine in a minute. okay... what if a million people download the new app? we're good. five million? good. we scale on demand. hybrid infrastructure, boom. ok. what if 30 million people download the app? we're not good. we're total heroes. scale on demand with the number one company in cloud infrastructure. ♪

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salesforce confirming his company made a bid for linkedin before microsoft swooped in to buy it for $26.2 billion. salesforce will face increased competition in customer relationship management software. what did you think when you heard that? >> i'd gone over linkedin. they were surprised they had such macro weakness. he always felt it's a good social mobile cloud company. i'd like to hear more from mark about the actual details of what he intended to do because he does not talk about material nonpublic information to the press. but i know that he thought the

company is great and he was stymied by that previous quarter, as so many were. but even going over literally each paragraph of what was wrong. and i know that he was surprised. that next quarter made him feel better. when we asked him about demand wear, he said this is a deal we could get down. i kicked myself because that statement when he was right here and said it was kind of an admission that there were other deals i couldn't get done. it was right there and i just go over everything that i heard and i realize i screwed it up. i had that moment. i had that moment. >> let others do the monday morning quarterbacking. >> no, i watched the tape, i was wrong. i handed it to the wrong guy. >> who would have been the better story of linkedin? >> who would have been the better story? i think that the independence of linkedin is much better for

sacha because microsoft, they need the growth. salesforce does not need the growth. they would be buying a company growing roughly the same, maybe a little less. but you don't know because if you listen to the unbelievable oracle call last night, you're dealing with a company that says they're not growing that much at all. the oracle call, one of the great thing, larry ellisons three mentions salesforce negative, you always have to keep score of what they say because these guys are the fightiest guys evfight ie -- feistiest guys ever. at one point -- honestly, if marc benioff were an upset guy, he would have thrown his mouth guard at ellison instead of just steph curry.

>> let's listen to what ellison said last night. >> we'd like to accelerate our staff and past growth and make sure we're growing at least double the rate of our closest competitors. we think we have a fighting chance to be the first staffed company to make it to $10 billion in revenue. >> no. no. really, it's going to be -- look, this is a horse race but benioff is going to be their fast tracker. he's that close. he's that close. but they do a platform as a service. it could be a photo finish between these two. >> it's been an important benchmark for both companies. now, there is no shortage of promos on their conference call. safra katz, who i love, she starts of with we were thrilled and says the results for q4 were fantastic. they don't wait for you to tell

them it's fantastic, they tell you it's fantastic. we've seen our movie and it's fantastic. erye did that about star wars but -- they're competitors. it's the nfl. >> apple's down almost 2%. >> you got to get apple on the phone, guys, because the story, you know, china obviously so important. jay clearly said the numbers are pushed out. we're getting a number of soft downgrades. yesterday we had another. no one is downgrading. we reiterate buy and cut the price target. that's the soft downgrade. i can't get confirmation other than there's been two stories that said the 6 is pulled.

i need confirmation of that. beijing regulator orders apple to stop sales on two iphone m mode models. >> cook was just there. >> i know. >> they just invested a billion dollar in an important ride share company, which some say was an attempt to build goodwill. >> if this story is true, they did shut down the apple ibooks and itunes movie sight. if this is true, the stock will get hit with more than it has been. but this is not what's in the game plan. the 6 being pulled. and the china mission was a kind of a, please, we're working with you guys and this is not the reaction. it's a subpar situation. suboptimal clearly for apple. >> talk about difficulties in

doing business in that country. great example. >> yeah. the big growth came from china. it's one thing to say the growth is slowing. it's another thing to pull it as if it's just a box of secereal, there's something in the cereal, pull it. we act like it's a democratic china and now, it's a communist dictatorship and they control every aspect. there are a lot of people that criticized that thicahn -- thiss

no longer worrying. this is in your face. the 7 has to be for sale there. they have to get the 7 in order for them to make anywhere near numbers. >> does the fact that the 7 is around the corner take any of the sting out of this? this relates to the 6, which is in its twilight. >> they got to get to the beijing intellectual property bureau today. yeah, look, you can't be out of that market unless you want to be out of that market. google. it's bad. i'm going to say it's bad. i wish they'd check in and get some confirmation that this isn't a permanent ban or that they're in consultation with them because you can't lose china. you can't lose china. >> on that note, we will keep an eye on that. we'll get cramer's mad dash. we'll count down to the final opening bell of the week. one more look at the premarket and "squawk on the street" is

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>> with iphone sales, you saw other regulators suspending the company's movie and music business. there was a low-court ruling months ago that apple has infringed on those patent and immediately important all apple products are still on sale in china. >> any idea how this takes fire? we're not talking about a tech blog out of nowhere. this is the wall street journal. >> i can't say. i don't know what the journal's reporting was here, carl, what their sources were. i can only say who i'm talking to. maybe some confusion about the lower court ruling. there was a ruling.

i think what's important is that apple is now appealing that ruling so the injunction has been stayed, carl. >> thank you. meanwhile, jim cramer is with us who has been working the phones on this. >> on the record confirmation. absolutely not true. if it were true, it's only beijing. it's a lower court ruling. it is not true. the story as reported is not true. and if it were to affect china, it would only be beijing. i had it confirmed from the company. they don't expect it. they're saying it's minor, minor, okay? you can argue a lower court ruling is still stunning. but they are saying, listen, we're for sale and even if it did occur, it would only be beijing. obviously beijing a big city. you say only beijing, that's like saying only california. it's a minor court ruling and

they don't expect any interruptions. >> and on the record, no interruption in sales? >> on the record. >> talk about a big head fake on this. jim, i'm glad it's cleared up but it does, again, highlight concerns about doing business in a country where something like this even gets to this level. >> yeah. and remember again the chinese court system is controlled by the communist party. so in other words, it's not like the u.s. court system. that's a communist party ruling. you are not going to get a lower court to take a look at the facts and take each side. the communist party controls the courts there, so that's a communist party ruling. so let's not forget -- we make things up. we say was apple represented, fifth amendment, fifth amendment. communist party made its ruling bu it's selling. >> you mentioned other estimate cuts -- you don't call them soft

downgrade. >> the cuts were real. is it a value trap? a lot of my best guys are saying, jim, come on, it's like an airline. it's going to sell six times earnings, but i have to tell you that i still believe that this is an inexpensive stock and i do believe, as apple just put on the record for me, that this is a minor, minor matter and, again, i say it's a communist party. can you say i'm trying to put a little nuance on my own because i know the chinese system pretty well, but there is other issues involving the actual number and whether the 7 is not going to sell as well. i'm looking at the bill rate of within particular company, jbill, which is the principle according to jabil.

everyone's kind of cutting their price target, everyone is cutting their price target or wants to cut their price target. at the same time, i generally have to say if you're going to panic on this particular aspect, i think you have to panic on other reasons. >> it does take a strange coat on a week, the car, everything we've been talking about that's promised in a long time. >> and ted leonsis. i do feel very strongly that the quarter seems soft. >> obviously the stock off the lows of the premarket. that was down about 1-7, it's

turn around somewhat with the concerns obviously about the overall quarter. let's get to the s&p at the bottom of your screen. final opening bell of the week at the big board. it is the new york city department of transportation highlighting the city's river-to-river festival over at the nasdaq, the -- >> no one has come out. i look at the number of people recommending the stock and it's not in sync with what happens at a bottom. a bottom is the stock trades in the mid 80s, everybody's downgrading it, there's no hope for the 7s and that's classically how a bottom would be formed. analysts are cutting price targets and they're sticking with the buy. that's not the way you get a bottom. that's why i can say apple is

going to be weak for a while. i have no edge about the quarter other than what jabil gave you and the analysts are saying. the ceo of verizon said it going to be big. i wouldn't dismiss what he has to say. but this quarter jabil made it clear that there was not the build that they thought they would have when they talked in the previous quarter. and is it a value trap? you have to make up your mind on that. i happen to believe in the company and have been recommending it since it was 5. so i guess i can change my mind right here right now but i'm not going to. >> we have to get on the record elizabeth arden and revlon. >> i think this is driven by ulta. >> really? >> if you go to ulta's web page, you'll see a huge elizabeth arden section. remember why people wear make-up. i went to polo last night. do you think i took my make-up

off before i went in there? geez! this is elizabeth arden. if you like the trend, it's el, estee lauder. you go to ulta's site and you'll understand why people have to do it. you have to wear make-up. carl, everyone has to wear make-up. make-up is an expression, too. i was watching the web site mike, trying to feel young, millennializing myself. they put make-up as a statement now. make-up, statement, selfie. sara eisen did not have a selfie stick yesterday she was talking about in china. make-up. if you go outside, you need elizabeth arden or estee lauder. mack, do you know mack? >> of course. >> i'm thinking about wearing mack this weekend. >> you're talking to a guy who

wears make-up almost every day. >> i'm anti-millennializing myself. but elizabeth arden, revlon, it's driven by the need to have make-up when you walk outside. >> we started talking about jim bullard. steve liesman has more. >> he says the mismatch between where the fed is and the market is, the idea that the fed has been above where the markets are on the fed funds rate is eroding credibility and causing market distortions. his conference call was about trying to get off the roller coaster ride. he said the long-run outlook for the u.s. economy is uncertain and the fed needs a way to express that uncertainty. he did not submit a long run forecast for the funds rate. he said we basically know what's going to happen the next couple

years, can't go beyond that. he did say the fed should do the final rate hike this year sometime but he prefers to wait and hike on good news. he said the jobs report was not the one to do it. he's supporting this 0.63 funds rate through 2018. that's just one hike. he was the on member of the fomc to be there. he's changing his outlook to a new regime. growth is going to be around 2%, he said, unemployment 4.7, inflation stays at 2% and the funds rate remains at 0.63, if you remember your old math that's 5/8 right there. >> we had a conversation a few minutes ago about the st. louis fed. what's different about their model in st. louis? is it clear what they've done? >> what they've done is said

let's stop forecasting that both rates are going to rise and growth is going to somehow accelerate. he thinks that basically we move from economic regime to economic regime and this current regime is one of low productivity, one of modest growth at 2% where inflation is going to be around 2%. kind of taking a step back. the fed had been forecasting this 3.5% growth rate, he said we don't know much about the long run, let's incorporate what we know and come to this desigts that, hey, this is pretty much where we're going to be and if we surprise to the up side, we can raise rates but it doesn't make sense for the fed to constantly be forecasting higher rate and an upper rate to the funds rate and keep coming down. he said it causes distortion and market volatility. >> how does it tie in what you said earlier in the week that markets are really holding the ball right now? >> i think the market has had

this more right this afternoon the federal reserve. the federal reserve, they have to think their funds rate. it's like you know what the weather is going to be tomorrow based on what up see you see in forecast. in a sense, the funds rate or you believe the funds rate can create the weather. that changes how you forecast. bullard is taking a step back from that saying we're not going to be able to change the current regime very much. it goes in line a little but goes further than janet yellen, which is sort of a capitulation speech she gave at least in response to my question, i said why did you bring that down so much for 2018, that 5/8 drop, she said because a lot of things that we thought were going to be temporary now look permanent. a capitulation that we're hearing from the fed right now. >> is he talking about

structural change to the economy, it's never going to come back no matter who wins in washington? or is he saying, listen, without any real help from washington or a major turn in the worldwide economy, he did not do it alone. >> he didn't say that, jim. but i could imagine that if you were to come forward with a big fiscal plan, big structural changes, or to the spending regime on the fiscal side, that would change it. but in a sense you make monetary policy with the fiscal policy you have, not the one that you want. and in a sense the fed cannot go out and say, well, we expect washington to do x, y and z. in a sense they're kind of throwing up their hand and saying, you know what, we don't think washington is going to do anything. >> thanks so much. >> fabulous reporting. >> between bullard and apple today, jim, it's been -- >> i feel like when i was covering stories, jim, there's

fire. i'm getting to everything, i'm getting to everything. a lot of news on a sleepy friday. >> i'm not sure we're going to get quiet fridays. >> that 1:00 train that you could add that g and t on, whatever happened to those days. >> before we get to the floor, coke and pepsi as they pass a soda tax. >> geno's, if you want to go there on twitter and confess that you agree with me. mexico had it. mexico put it on. there were several months that sales went down and then sales bounced back. now, it just important to keep that in mind. obviously the carbonated soft drink companies fought this tooth and nail. pepsico a little more diversified from soda than coca-cola. >> diet exempt?

>> the millennials have decided diet is bad for you. diet is like the 80s ingredients in a bad burrito. >> you could have double digit declines in diet. diet mountain dew is one of the fastest growing soft drinks in the world. i used to drink it but -- >> at the same time take a look at monster beverage. they just had a big run up after a tenure offer. you buy the companies because they have great cash flow and good yield and the cash flow is not down. and pepsico, by the way, had the best organic growth of any of the consumer packages that follow. >> twitter now above 16. we know about the week-to-date gains. times today joins vanity fair in

saying doesn't get too excited about this. >> a fabulous story that calls into question the notion that people think this is going to be next. but this is such a crazy day, carl, i don't even know anymore. but jim's piece was fabulous as always. >> we're going to hear from him later as we always do on fridays. >> that will be great. >> dow down 47, oil hanging in there, up about a buck. let's get to bob pisani on the floor now. >> after a rough week, europe is much better today. perhaps there was some hopes the stay-in vote might prevail. you see modest gains here. europe is still down 2, 3, depending where you are percent for the week here. energy and mining stocks were higher and the bank sectors were -- remember how dramatically oversold the bank sectors.

those were at historic lows yesterday. you see them all bouncing back here today but big declines this week, still down 4, 5, 6% for the week. you want to see how confusing things are and what the moves in the currencies are doing to some of the markets, look at the confusion in oil. oil could not have been weaker yesterday. it was essentially 45. looked like it was heading to 40 at one point. turned around in the middle of the day as the dollar turned around and weakened and could not be stronger today. up see it hitting essentially at the high of the day, 47, and looks like it wants to move up. rather confusing trading patterns and this is also true as well in the stock market. you look at sectors today. energy, which has been under some pressure. on the up side as oil moved up. only modestly bank stocks have been under a lot of pressure.

as you see, this is pretty modest on either side of positive or negative. consumer discretionary on the weak side. you want some idea about the strange sector of the -- it was odd to have oil down 4% yesterday and exxon mobil hitting a 52-week high. 52-week high on exxon mobil yesterday. exxon has essentially become a defensive stock. that sounds strange. within the commodity space, they've become a defensive stock. a lot of investors apparently do believe them here. i hope you're all listening to

steve talk about mr. bullard. mr. bullard was not in the camp of lower rates for longer but now he's talking about only one rate hike through 2018. there is no alternative to stocks. some are again arguing what else do you have with bonds staying down for a very long time? we did see the dollar weaken a bit as some of his remarks came out. in the ipo space, we're still in another world of not trying to understand, not sure what's going to happen with the ipo space. one postponed. aud aud aud audio visual and equipment company. next week, twilio, it's a very,

very hot space, trying to consume all the other apps there. it's coming, essentially pricing on the night before brexit. wednesday night for trading on thursday here at the new york stock exchange. this is going to be a very big one to watch. demand is strong but, again, it's coming at a difficult time, apparently the morning of the brexit vote. we'll keep an eye on that. right now the dow down 34 points. back to you. >> let's go to rick santelli. high friday, rick. >> happy friday, carl. it wasn't a very happy thursday for most traders. you don't read this in the papers and we don't talk about this a lot, all my sources and i have a lot of them, all the traders i rub shoulders with and there's a lot of them, it want they were just questioning the fed, they were upset with the fed. and james bullard. remember the movie "whiplash," a great movie about a drummer.

you get whiplash with all the flip-flopping of james bullard. now like the old "saturday night live," they say "never mind." it's frustrating. let look at the charts. two day of 10. we went from 150 intra day yesterday to basically 160. there's a downward drift. if you want to see a chart that's hard for rates to go higher, look at a chart about a month before the all-time lows slightly below 140. and it looks like there's really no hope for yields to go up, maybe they will. one week of bunds, tap dancing right around zero after several historic closes below zero. bob nailed it, there was counterintuitive action during

the week, it was up and now giving some back. the last trade was around 94.40. it closed a little above 98 1/2 at the close of yesterday. and that's pretty much it. >> two big reasons for disney shareholders to smile this weekend. dow is down 36 points. more after a break.

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disney poised to have a bla blockbuster weekend. and we have a game seven on nbc. and we have the much awaited "finding dori." some of the reviews, "it can be touching, sweet and tender but it's compulsively and steadfastly funny." >> at the street.com, buster cohen, the best i've seen at

analyzing, he said it going to be a huge hit but warns that sea world, it's very critical aquatic captivity. for the sake of entertainment, sea world may not be something you want to be at over the weekend. it could be sea world's attendance and stock further in the tank. i happen to agree with that analysis. seas, sea world tant may not be what you want to be in if you watch "finding dory." is the movie right or wrong? i'm just saying that companies similar -- that it does take a stand on a sea world-like situation. >> we'll continue to watch the story in orlando with the alligator attack. >> oh, geez. >> apparently some talk they will be putting in new signage that tells people, look, we are

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♪ ♪ ♪ i work seven days a week to give you all i got ♪ time for cramer and stop trading. >> i never thought i'd say this but fang, facebook, amazon, netflix and google, my trust owns alpha bit, implying a slight deceleration. that stock has been acting very poorly. fang is fang and cereal is cereal. i want to report the reason why

alpha bits is going down is because there's talk of slowing. it's a very inexpensive stock, i think apple is a very inexpensive stock. this doesn't matter. stocks that miss the quarter go down. that's city's view. ruth porter, i would feel better if she says it and she hasn't. and apple told me that china -- the operative term of the story is not right as we first saw it. it doesn't matter. stocks go down. >> is it deceleration. is it eu overhang with google? >> i don't know. google is more of an international company. ebay, by the way, i with will frost, that's going to get hurt with brexit. but google is very european oriented. if you'd like to see the euro

great stronger for the dollar earning to go up. doesn't matter. >> what's on "mad" tonight? >> dominion. it's the cheapest power in the country and that's where the server farms are. and they also have an lng export terminal that they're building. sometimes you can learn a lot from utility companies, utilities being the strongest group in the market. it's not such a snoozer. you may think it is. i could use some rest. >> next week is going to be busy, for you and for everyone. >> we're going to have to skip sleep for the week. >> we'll see you tonight, "mad money" at 6 p.m. eastern. >> when we come back, the warning on viacom. dow with moderate losses, down 37. we're back in a minute. wow, that was random.

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eisen and simon hobbs. a week from today we're going to be talking about some brexit results. oil trying to recover, back above 47. the saga at viacom raging on as redmond moves for a major overhaul of the board. good morning, jane. >> is summer redstone really calling the shots? on the east coast, the ceo going to work today. but fired, board member fred salerno said hold on. he wants the court to look at whether sumner redstone is really in charge because his,

quote, physical andme mental conditions have declined and unsatisfied with sherry redstone. "unsatisfied with assets now worth more than $1 billion derived from gifts her father gave her." felipe dauman may be fired. he has a golden parachute of $50 million. something tom preston was asked about last night. >> one could argue about his contract. it was approved by the board, contractually he deserves it, yes. does he deserve it in the performance of the company? probably no. >> stock was up and viacom

upgraded to 25% below what the street was expecting, the current board blaming in part "teen-age ninja turtles" performance. carl, what to do about paramount is really at the core of the dispute in the board room. back to you. >> shares of viacom are up slightly this morning. guys, good to see you both. happy friday. james, is the rumor of dauman leaving or the hope of it worth the price appreciation we've seen? >> it probably is. i mean, again, at this point you have a little bit of the grass is always greener syndrome for why you would buy viacom shares. the performance has not been

what people wanted so they figure, well, what change wouldn't be bad? but you never know. >> does today's warning take you by surprise? and can they really blame it all on turtles? >> you know, a little bit. it seems harsh to blame it all on turtles. yeah, it seems like it's primarily the film segment. they gave an update on their advertising business, which seemed to be okay, in line with what people were looking for. it's primarily the film section affecting this quarter. >> aside from the board room drama, there are questions about the brand and assets in an industry that is facing some big changes and big challenges? >> there's no doubt that viacom has been an underperformer. but i think that's part of what people are seeing here, that you

can have a better performance i think with better management. certainly what's happening right now with the government dispute didn't help. they lost an s-pod deal and i think frankly a bigger part of the variance is affiliate piece and not getting that s-pod deal. it's having an impact on viacom now, all of this noise. this needs to end before the wheels fall further off the bus. i think the best thing we could hope for here is get this over with as quickly as possible. and i think in that there's real brands here that have been around for a long time. there's real cash flow here and i think there's an opportunity to extract a better value out of this if you get the better noise out of the way and maybe better management. >> how loud is that noise button? what is the likelihood this will fail in the court? i'm not a lawyer. if you look at the facts, the probability seems relatively high. this is not going to stand.

the court is not going to uphold this given the agreements and the plans that are in place, the longer-term plans for the boards. >> i think the way aization l s like this goes is it either improves or there's a change in management or ownership. we saw in the disclosure about essentially $4 billion for a value of a 49% stake in a money losing studio. there's real value here in these properties. so they either turn it around or there's a change. that can happen in a myriad of ways, whether what's happening in the courts or sumner redstone will not have control and there will be people that can negotiate what the proper control is at viacom. >> forgive me for drilling it down. but there are two parts. on one part she's already attempted to remove them from

the board of amusements and family trust. longer term does that mean they're out anyway presumably when redstone dies? is it only a matter of time? >> it seems if the moves are taking stand and that's a lot of what the litigation is about, that's why. >> but it's in two parts, the family trust and -- >> you have the control of the national amusements by the trust and control of viacom. so there's two front. >> we asked redstone if he would do it and he said no. who should? >> to tom extent it's who wants the job. that's always like a top question you ask a candidate, do you want this job. there's been a number of people speculated, les moonves at cbs

has been speculated. there's obviously a number of options. you know. >> it's somebody who wants to make a name for themselves. >> simon, it doesn't have to be one person. this is a company that if they can't make it as an integrated entity, it could be broken up. there are pieces that would fit very nicely with a lot of the other big media conglomerates out there. it doesn't have to be one white knight walking in turning it around. there's a lot of ways this could go. the reality is people are paying top dollar to buy big brands, even if they're not making big money. you've seen what they've done with dreamworks and legendary. you've seen in this environment

they've been able to leverage these things with theme parks and -- around the world. >> the same shareholder controlled both companies. that makes it a unique situation. it's a possibility. but once again you have to have management that wants to do that and management wants to go through that process and management that recommends that as the best strategy. part of that is you can look at viacom as a bunch of assets but you also need management that you have confidence to manage that, even if it is a partial breakup of the company. you need to look at thos things together. >> it's a fascinating story. james, appreciate it very much. >> investigators in the u.k. are

searching for answers a day after the murder of british lawmaker jo cox. bill neeley joins us now with the latest from london. good morning, bill. >> good morning. within the last hour, the british prime minister david cameron and jeremy corwyn made statements about tolerance. where we he hatred, cameron said, we have to drive it out of our politics and out of our community. it the first ever killing of a female member of parliament. jo cox was almost universally popular, elected just last year. she was murdered on the street by a man with a hunting knife. he also shot her three times. now, detectives are investigating whether this was a politically motivated killing

because there is a claim from the american civil rights group the southern poverty law center that the suspect was a long time supporter of a neonazi group, the national alliance, which incidentally used to be the leading american white supremacist and neonazi organization. there is also a claim that he bought a manual that included instructions on how to build a pistol. well, the gun the suspect used was said to be crude or homemade by witnesses and these detail are very important. because in politics, jo cox fought hard for the rights of immigrants. she represented an area where there are a lot of immigrants and the man suspected of killing her is tommy mair, according to his half brother, he's white, a 52-year-old englishman with mental health problems that police say his motives are unclear. but they are still questioning

him and looking into his background. back to you, guys. >> the allegation that he shouted "britain first" during the fray. bill neeley joining us from london. >> when we come back, much more out of europe as the brexit vote looms. donald trump looking for campaign cash to push him through to the general election. we'll speak to a major supporter who is actually throwing trump a fund-raiser tonight. much more ahead on "squawk on the street" with the dow down about 19 points.

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steve, i want to point out to people the relevance of this. this may be the most important thing that has happened this week when you couple it with your analysis that we got two days ago that they may be topping out on interest rate rises for this cycle. take it away. >> it's an interesting way to put it, simon. i wouldn't put what i had to say up there with what bullard is doing in terms of him being an fomc member saying only one rate hike is necessary for the next two and a half years. he said the fed should make that final move sometime this year, waiting for better economic data, saying the u.s. is now in

a new economic regime and had some harsh words for the way the fed has been conducting itself, talking about the mismatch where the fed has been and the outlook saying what we are doing is causing distortions in global financial markets. he says that through the gdp is going to be 2%, it's not going to be higher, the unemployment will be where it's going to be at 4.7, inflation at 2% and for all that all you need is a 5/8 or 0.63 funds rate. if the fed would go do that fund rate and i could go cut that album and -- >> it also did clear up the mystery of who didn't make the forecast, the missing dot.

>> i didn't report that. he did not submit a long-run forecast. get the fed out of the business of doing long-run forecasting. >> i thought it could have by la layal. >> vince, janet yellen received a lot of heat for changing her view this week when we heard from her in the news conference. this shift from jim bullard who is a voting member, i believe, this year seems even more significant when it comes to changing your mind about an outlook. >> it's two parts. one is an admission that the fed is not particularly good at forecasting. drawing a straight lyine from where we are now is not a bad call. it's a different world view from

the conventional thinking that dominates monetary policy. he's basically saying we're living in a world of multiple equilibria could matter for -- if you think inflati-- >> with a change in forecast and world view and everything, you know, vince, how important and how precious fed credibility is. do you have to question it? >> what you have to question is the cohesion of the group. we're beginning to see a little bit of fraying, fraying both in terms of what the right setting of policy is and the right way to think about the world. >> i guess the question for markets and for investors is there was already this idea that the fed would be on hold for a

long time. do you now have to price in it's going to be on hold for an even longer long time? >> i think -- so the fed i think has done the right thing by it's sort of a do no harm approach of letting the market basically have a veto over what the fed does because the fed does, whether it likes it or not, kind of set policy for the entire global system and not just the u.s. because what the fed does affects the dollar which affects everything else, affects financial conditions. if the bullard approach is correct and i do think it's correct because it highlights the whole stock versus flow debate of level versus rate of change and i would argue as others have that maybe the fed has already tightened the full cycle just by getting out of qe. the atlanta fed has a shadow rate that's gone from minus 3 basically to zero. so the fed has already tightened

basis points so it should be already done. i think there is merit there. if the bullard approach is correct, we would be at the end of the tightening cycles and that would be positive for the dollar and liquidity sessions. >> so the real interest rate long term in this country won't be negative either. do you think the next chapter will be to admit actually that low interest rates a this the level may not work? mervin king from the bank of england said what economists haven't realized is the behavioral effects. can you slash interest rates to negative 10% and it won't enliven the economy because you worry people so much. what would you say to that argument? >> i think you should just follow that logic and ask president bullard two questions. the one is if the fed is so

influential in shaping longer term expectations, wouldn't a higher nominal interest rate perhaps encourage for nominal growth? if it's all a world of self-fulfilling expectations, then why is the fed stuck so low? the second question to ask is and what do you do if anything goes wrong? if the nominal federal funds rate is not much above a half percent and the real federal fund rate is negative, what happens if we get an adverse shock that basically refine the play pretty low and pretty slow and we'll be vulnerable to wind sheer. >> one question the fed is grappling with as yellen herself mentioned is the brexit vote, which is rapidly approaching next thursday. in case there was any doubt about what the economic heavyweights are saying about the way the vote should go, here's imf director christine lagarde speaking about a

possible brexit exit. >> it's going to be negative for income purposes, will reduce trade most likely as a result of uncertainty. i mean, those are blatant facts. >> so at this point what does the positioning look like? how much is priced in ahead of next week if in fact it does come to a leave vote and what managing director lagarde just spelled out actually comes to fruition? >> certainly it looks right now like it's a coin toss and that of course is not very helpful for either side because if we're somewhere muddling through in the middle, then there won't really be a mandate for either the remain side or leave side. from my perch as a strategist, i always ask this question, is this systemic. i've asked this many times with greece and other developments and the two ways this could potentially become systemic is that if the u.k. goes, and i read somewhere that if the u.k.

goes, scotland will have a new referendum, maybe france or finland or some other country in the euro will have a new referendum or a referendum and it could possibly lead to the end of the euro basically. so that would be one systemic risk. and i'm not saying that it's going to happen but it's a risk. the other one is that if you look at kind of this referendum as one theater if you will of a series of rererenda, they're really on globalization or anti-globalization and i think it's a backlash against a long period of very low growing nominal gdp growth. the rising tide lifts all boats, but when growth ends, i think that's what this is about. the end of globalization would be obviously bad for growth and bad for profit margins. >> and a big idea is going to factor into this election, too. yes, we have to thank you both.

>> when we come back, the so-called self-funded campaign of donald trump now looking for some cash. texas attorney tony buzbee is throwing a fund-raiser tonight. dow down about 13 points. real is making new friends. amazing is getting this close. real is an animal rescue. amazing is over twenty-seven thousand of them. there is only one place where real and amazing live. seaworld. real. amazing

. the 2016 general election campaign was expected to cost upwards of $1 billion for each campaign, but the once so-called self-funded campaign of donald trump is now playing catch up to meet that figure, which hillary clinton looks likely to meet from her massive donor network. trump kicking off a three-city texas blitz in dallas last night tamed at tapping some of the lone star state's top gop backers. joining us now is the host of tonight's fund-raiser in houston. former ted cruz supporter tony buzbee. welcome to the program, sir. >> good morning. >> donald trump was not your first choice of gop nominee here. what journey have you been on? >> well, he's our nominee now or will be soon, and i think he's going to beat hillary clinton. so i'm asking everyone to get

behind him and let's make sure that he has enough money to compete. >> what sort of reception is there. i think the tickets have been sent out by the rnc. what's happening in texas at the moment with regard to the fund-raising effort? how easy is it for you? >> honestly, it's been very easy. we're well over 2.5 million money raised. that's probably going to be a record for houston for one event. i think mr. trump's going to be in my home for probably an hour and a half and then he's going to go do a rally. so we're very pleased with the response. >> in the wake of course of sunday's mass shooting in orlando, he's decided to jump into the gun debate and is meeting with the nra and raising with lawmakers the idea it should be more difficult for suspected terrorists to get their hands on guns. how is that playing in texas? how will that play tonight, do you think?

>> i don't think it's going to have any impact on what we're doing tonight but i think somebody like donald trump has the gravitas to make that case to the nra. i'm a heavy nra supporter. i'm a former marine. i've never been in favor of gun control. but it seems crazy that anyone on a no-fly list or who has been investigated by the fbi could get a gun. so i think we need somebody like donald trump who is not a packaged candidate like hillary clinton to make that case. >> you see, that's very interesting because texas senator jeff flake has suggested you've got 13 million votes there already in the can. as you switch from the primaries to the general, an aim at 65 million, you're going to have to changes way in which you approach a number of issues. what you're saying is that the freshness that trump may bring

can challenge some of the preconceptions that the campaign has about where the campaign should go. >> that's right. donald trump, like him or hate him, has tapped into something in this country. he has a freshness. we all know who donald trump is. he's been around a long time. but he has the gravitas to say things that a lot of the packaged candidates can't say and it's refreshing. i mean, he is a refreshing voice in american politics. >> nonetheless, there are many particularly gop members of course in both houses that are seeking reelection who are concerned that continuously they're asked to react to already what trump has said that day on the hustings. where do you think this takes the rest of the party and therefore the fund-raising. how close to a billion can you get? >> well, i don't speak for the trump campaign. i'm doing one event here in houston, and my concern is to

make sure this event is successful and i think we're going to be very successful and it's going to be a -- i can tell you my children are looking forward to meeting donald and his family. so i'll leave that answer to that question to the trump campaign. but can i tell you having done many fund-raisers in this city, i've had no problems whatsoever. i've had to turn people away. we're going to have a great event for donald trump. >> good to meet you, sir. tony buzbee joining us from houston in advance of tonight's donald trump fund-raiser. >> coming up, jim stewart join us on this friday. his take on a twitter takeover and of course the latest viacom drama. "squawk on the street" will be right back. [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvus when you trade. fidelity's active trader pro can help you find

smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.

good morning, everyone. i'm sue herrera.

here's your cnbc news update. british prime minister david cameron and labor party leader jeremy corwyn paid their respects to jo cox who was slain on wednesday. russian president vladimir putin says russian seeks compromises and doesn't want to return to the cold war era. this after the eu extended sanctions against russia after annexing crimea for one year. >> dry brush and high winds continue to fuel the sherpa fire in southern california. the out of control blaze has grown to more than 1,400 acres and forced evacuations. for the second night in a row, the 101 highway was closed in that area. >> rock singer meatloaf

collapsed on stage last night. the singer had cancelled two other concerts in recent days because of ill health. we wish him the best. that is the cnbc news update this hour. i'll send it back downtown. carl, back to you. >> sue, thank you very much. in the wake of this week's mega deal between microsoft and linkedin, could twitter be the next company on the shopping block? our next guest says it needs to attract a suitor being overtaken by it's competitors. good to have you back, jim. >> nice to be here. >> you talk to users who aren't checking in as much. you say you're not tweeting as much. you say there's a lack of logical buyers essentially. >> i'm probably not the best example here, i'm not the demographic of the future. but i did seek out some of the ever sobering mill eniaennials.

one of them did say there's just too much typing. they're so visual. they just want to get the images, and move on. to me, what does linkedin that twitter doesn't? twitter has kind of got it all, a huge discount to where it was trading. it's trading at barely half the ipo price. as these social media companies go, that's a bargain. it's got revenue growth, advertiser growth. not what wall vestreet was lookg for. >> influence. relevance. >> we saw in the orlando thing this week it's right in the center of the conversation. but the flip side of it is the

engagement thing, the time spent. the big threat to twitter seems to me facebook. facebook is like mowing everybody down in its path. first of all, it has instagram, which the millennials seem to love. it has the capacity to disseminate news in realtime, and it's doing it. and it's got people spending they said 50 minutes a day on it. twitter has people spending one minute a day. >> i thought the comment you made about too much typing was perhaps a bit silly but i remembered the vice president in facebook in london suggested in five years facebook will be all video. if you move to a situation where you're simply forwarding video, you don't necessarily need the platform as twitter presents it at the moment. everything goes up into the air. it just about making that single connection. >> i think you're absolutely right. look, i'm a writer and steeped in print so it's a little

sobering. >> and you're on tv right now. >> i'm on tv. thank god i've diversified here. >> and carl's tweeting what you're saying. >> it's not going to go around tomorrow but the whole idea that the written word is not going to be the primary means of communication for future generations is to me a really sobering thought but i don't think we can rule it out as just a crazy idea as you say. words have been so important to humanity but images now are playing an extremely important role. >> you look at the potential buyers of who could step in and make sense, alphabet at the top of the list. >> twitter and alphabet already have pretty deep ties. the twitter tweets are showing up in the google search. twitter is using the double click ad service of google alphabet to help advertise. that's shown some progress.

twitter was stressing to me that they doubled the number of actual advertisers they've attracted to the platform. >> so cross poll enation. >> a lot of cross pollenation. >> twitter is being increasingly seen as a kind of realtime news and information site and less of social media. it's not that people are using it to communicate for their friends, they're going there for the orlando situation, the la latest updates on crises. if it's a content site, that really doesn't make any sense for google. they're already getting what they need out of these partnerships. >> are you doing any work on viacom? it seems like it's a well-plowed lane but there's so much being added every day. >> of course i am. >> both because of the personalities involved, the family dramas involved but also

these fascinating corporate governance issues. i can't remember a situation like this where you have a sort of 93-year-old patriarch, highly respected independent directors and thinking about the various directors being ousted, it's not just dauman who is a close friend but there are four or five others, the people closest to him in his life. can we believe overnight they've lost trust, confidence and they're all being thrown out? >> he's persuaded by sherry perhaps. >> well, that's the alternative hypothes hypothesis, she's calling the shots. this is going to be a fascinating court proceeding in massachusetts, in delaware, in california. there's going to be a lot of laundry coming out into the open in the next few weeks and month.

>> i wanted to ask you about disney. you're an expert on that. what a week it has been. that spectacular, flashy ceremony in shanghai overshadowed -- >> i found myself waking up in the middle of the night flashing of an alligator grabbing my child. it's a horrible freak accident. i've been at that beach and it's the last thing you would ever think of. i do think it's a freakishly tragic accident. obviously disney is going to have to step up and make these -- do what they can. i'm sure they will. but i don't want to read too much into it. it's just one of those horrible tragedies that could have happened.

the timing is freakishly bad. >> when we come back, marr is investing more than a billion dollar in u.s. manufacturers. ♪

down 69 points on the dow, it's the end of a very long week. rick santelli is live in chicago. >> thank you and good morning, simon. i'd like to welcome the chief economist of the national association of manufacturers. thanks for taking the time this morning, chad. >> thanks, jim. >> before we get to your survey and index, which was released yesterday, industrial production capacity utilization were out this week and 8 out of 12 of the last 12 months, so if you look at the last year, 8 out of 12 months were negative for industrial production. capacity utilization is a

whisker away from the lowest utilization rate in six years. having said that, how did your survey stack up? gives the second quarter versus first quarters and any other subindices that are relevant? >> manufacturing production has been essentially flat over the last 12 months. as we talked about last time i was on this program, rick, in general you've seen a lot of challenges from the dollar, from rising -- lower commodity prices and other issues. i think from our perspective, i think overall manufacturers are a little bit more upbeat this time than they were three months ago. >> now, your index moved higher. it was 42.2 in the second quarter versus 38.7, right? >> right. the fact that it's below 50 means it's below average. 57% of our members were positive about their company's outlook.

it's pretty clear that those numbers are below where we'd like them to be and that speaks to the challenges we've had. >> challenges, let me stop you there, chad. there's a list of challenges your respondents had. i like the first two. why don't you tell us what they were. >> three quarters of our members said business conditions and health care costs are the top challenge. over the last few years, more than 80% of our members said they've seen their state and federal regulatory compliance costs pick up. keep in mind manufacturers are not anty regulation. we all want clear water, we all want clean air but we've seen a pretty significant uptick in regulations coming out of washington over the last few years. this year alone a lot of regulations on state -- on both air and also on water and labor conditions. i think in general we want to make sure that we're smarter about the regulations that we're

pushing out there. and on tax reform -- >> chad, let me stop you again. so yesterday and the day before was all about the fed. and one thing we learned, what had been, in their opinion, cyclical issues that policy would cure, now they're saying structural. it seems to me if your number one problem was red tape/regulation and the number two was tax reform, those are structural. i guess in your final comments, you know, many i talk to say manufacturing's dead, it's losing everything to technology. your respondents are somewhat upbeat outside structural issues. what do you think manufacturing looks like two, three, four years down the road, sir? >> it's not hard to be bullish about manufacturing in the long term. we've seen more exports in terms of our overall growth as a spector, yet it's clear uncertainty has continued to hurt us. we clearly need comprehensive tabs reform so we can better

compete in a world market and the constant onslaught of regulations hitting us is very destructive. we need to do much more to grow our u.s. economy, make sure we're much more competitive globally. those are structural issues washington can address and unfortunately they're not doing enough to do that. >> chad, thank you so much. let's go back to sara and the gang. once again, we'll see you next read on your index, chad. thank you. >> speaking of manufacturing, when we come back, wrigley is making a major investment in u.s. manufacturing. we'll talk to the president, casey keller, when "squawk on the street" comes back with the dow down 57 points. now you can. when you lease the 2016 es 350 for $329 a month for 36 months. see your lexus dealer. because you can't beat zero heartburn! i take prilosec otc each morning for my frequent heartburn

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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. well, it is certain ly a ho topic on the campaign trail, and for all of the talk of companies moving manufacturing overseas, candymaker mars is bucking the trend. they are spending $50 million to open up a new factory outside of chicago, and they have invested more than $1 billion in manufacturing operations over the past six years, and here to discuss it from chicago is casey keller, president of wrigley u.s.

>> thank you. >> and so why are you bringing jobs here when mondelez is moving the manufacturing to place s ths that are cheaper li mexico and many to asia? >> well, first and foremost we have seen the up precedented growth on the skittles brand which is what we are building the new production capabilities on. and five years of growth and the number one non-chocolate candy in the u.s., and we are on a tear, and we need more skittles, and the first answer is that we need to produce more skittles candy and meet the demand for it out there, and we have at mars a core philosophy of investing and reinvesting in the communities that we sell. we believe in investing in the u.s., and we believe in making sure that we are putting the facilities in the u.s., and creating jobs in the u.s., and with this particular $50 billion investment, we have added 75 b jobs in illinois, and we are proud. we are proud to do that >> and i guess that is great, and it sounds good, but the question economically is does it make sense?

what are you finding in terms of the costs, labor costs, equipment costs, plant cost, and manufacturing here versus some of the factories overseas? >> yes. i mean, we are competitive producing in the united states, and skit sls a complicated manufacturing process. we need high-skilled labor and technically trained labor and we want to build in places to source that, and we have been successful in investing and building facilities here. last year, we opened up a new facility for the chocolate business, and our chocolate business in topeka, kansas, and so this is a successful strategy, and we have a core ophilosophy of producing and investing in where we sell the products ash and this is something that is good business for us, and we will keep on doing. >> mr. keller, can you give us the insight of how technology has changed your industry, and you said just now that you are creating 75 jobs in illinois. if you had built this candy factory ten years ago or 20 year

years ago, how many jobs would it have created then? in other words, to what extent have machines taken the place of even skilled labor? >> you know, i think that one of the things that has happened in all of the manufacturing that we have seen technology improving and the ability to manufacturing the product, and the high quality standards, and with this product product in skittles, the process has been relatively the same for the last five to ten years, and so we haven't seen many changes in the manufacturing or the labor rekwird, but it is -- required, but it is a very sophisticated product that requires temperature control, and other things. >> and i think that you said that skit sls the fastest growing candy product, non-chocolate at a time when the increases of the consumeerers moving away from the sugary packaged food, and the players are having to change the

ingredients, and taking tout artificial flavoring and why is sditl skittles doing so well? >> well, skiel -- with well, sk a treat, and we are up front about that, and it is a high quality treat out thereon market. and we ve seen a lot of growth for skittles for a number of reasons, and we have great in-store activity and displays behind events like the super bowl promotion, and the big summer movie releases in-store, and we have had a successful marketing and advertising campaign called taste the ra rainbow, and it is the most e e cent example of a spot with steven tyler and the skittles portrait, and last, great innovation on the skittles brand. most recently we launched america's mix, red, white and blue for fourth of july and independence day and out there

in the stores and out there through july and tried to make it relevant and fun for the season, but it is obviously, part of the philosophy is that we want to be up front with people, and tell them what is in there and it is a treat, and know what is in there and we are clear on the label and try to comply with the fda and the world health organization guideline guidelines for less than 10% of the calories from added sugars and we talk about that on the label. >> and we have 30 seconds so i wanted to get a comment on you about the calorie and the sugar count, because now there is a tax in philadelphia on the soda company, and the first like this in a major u.s. city, and are you worried about the backlash, and the regulations like this coming to your industry? >> well, i think that we always look at this and monitor it, but again, we are a treat. we are not, and we are clear with the consumers that there is sugar in that and we believe that they should use them in moderation. we try to make sure that the portions have the appropriate calorie count, and added sugars in it as part of the diet. and honestly, do we worry about

it? no, because as long as we are up front and clear with the consumers what it is, they know and they will use it appropriate. >> casey, thank you for joining us today. casey keller, the north american president of wrigley out of chicago. >> up next on the program, it is "squawk alley" on cnbc.

good morning. it is 8:00 a.m. in netflix headquarters in los gatos, california and it is 1 11:00 a. on "squawk." ♪ ♪ the cable is full, and everybody is waiting on you ♪ ♪ and waiting on you ♪ ♪ and you have got time ♪ our tribute to orange is the new black with season four premiering today. and good morning. kayla tausche, and jon fortt with me at post 9, and joining us is kara fisher. >> that is creepy. >> and su