>> good morning everyone. welcome to crosswa"squawk box." yesterday the market gains basically wiped out the losses from monday. you're still sitting on a loss from friday. you can see if morning the dow futures are up 57 points. s&p up 11. nasdaq up by 23. overnight we saw asia up higher. the composite also closing higher. and the early trading in europe today after the gains we saw yesterday. the gains are continuing this morning. the dax is 1.7 percent. the cac in france and in london the ftse. >> let's check your broader markets this morning. obviously currency a big shorter center of the brexit storm if you will.

we are seeing the euro at 110. things have appeared to calm down a bit. what about the oil markets. crude oil rising yesterday and looks like it will rise again today. we are seeing crude oil up 57 cents a barrel to 48. >> yield on the ten year treasury note unchanged at 1.45 percent. get ready for mortgage rates to fall again. if you're a metals investor, you're up slightly this horng. >> those explosions rocking turkey's largest airport last night. it appeared to be a coordinated attack with gunmen opening fire at turkey international airport in istanbul and detonating decides bombs. much of it kaugtd on video that has been seen since that point. turkey is blaming isis for the

attack. joining us now, it's great to see you this morning. good morning. >> it feels like we are talking to you more and more often about attacks that are taking place around the globe. what do you think is happening in turkey. >> in is the fourth or fifth attack in turkey just this year. there were others earlier. the earlier attacks were kurdish, but the latest string of attacks all of them have the hallmarks of isis. there are a couple of reasons for this. turkey, which has been kind of aloof from nato for a long period of time. pretty much a pop list and controlled airspace. didn't want to fly out to conduct attacks on iraq and syria now has started to let us do that so we're now flying

attacks out of turkey into iraq and syria. second, it looks like he is trying to straighten out the relationships with others in the region and a lot of it has to do with terrorism. apologized to russia for downing a war plane and perhaps most important mending fences with israel. all of us have security inter t interests revolving around siefs. they're going to continue to do this stuff. they're in the region. they're part of nato. they figure they can lever attacks on turkey to get the united states to quit bombing them in syria. >> turkey as you mentioned as seen its share of attacks from the kurdish, the pkk. that had seemed to be more of the focus. that's what the critics said. do you this the attacks like

this will sharpen the focus when it comes to the problems with isis. >> i think it will. test interesting we complain to turkey about it. it's refusal to engage and prevent syrians from crossing the border. one thing to keep in mind here is that turkey has got mandatory compulsory military service. i think turkey not is going to start deploying some of these people along the border to do what we have asked them to do and that is to stop the ingress of people from syria into turkey or at least to check them out when they get there. this is a very, very complicated issue and i think the leadership in turkey now is going to be much more focused on its responsibilities in the region.

it's interesting to know that next week there's a very big nato summit now. turkey milltarially has been a very close ally. except for some bumps we've had with them, we've been on the military channels alone with respect to trading intelligence information, we've been very close to them. i think there could be some very interesting outcomes of this summit that's next week. if there are public pronouncements, it will be interesting to see. if there aren't, there will be protocols that will be established to reimmigrate turkey to what appears to be a worldwide attempt to keep isis from morphing, from spreading and focusing its attention. if we have a minute or two more. there's one interesting thing that came up overnight and that

is isis apparently a number of sources have said there are something like 30 or 40 operatives that have been inside turkey for a month. this attack yesterday was obviously well-planned. two or perhaps three bombers. it was well-coordinated and there could be more of this unless turkey makes an effort to the stop the ingress of people from syria. there's one other thing to keep in mind. >> this actually had a lot of similarities to what we saw in brussels too. not just in turkey. >> yes, it does. keep in mind also that the toll would have been much higher had turkey not had very good security at the airport. their airport security is out away from the terminal. in the united states you walk right into the terminal. not so in turkey. the toll would have been higher had these guys been able to get

through the terminal area. >> thank you for joining us this morning. >> thank you again. >> bring you the story as well. senate democrats blocking the gop $1.1 billion to fight the zika virus. a hand full of provisions that had been added to win support. they added a number of things that had nothing though do with zika. these were grants, restrictions on federal grants. would provide birth control to women in puerto rico that were threatened by the virus as well as temporary lift of clean water that had been thrown in there as well. it falls short. neither side looking forward to leaving washington next month for a seven-week recess without addressing zika, but lawmakers will have two weeks now to

negotiate between the july 48 holiday. >> it's much more than that. part of it is they're taking the republican bill takes funding from ebola to move back through. neither side is bending. we have had the cdc telling us you can expect it here this summer. >> both sides are going to have to give on this. it's ridiculous to hear the stands back and forth and each side blaming the other side entirely for it. what you need is a clean bill that gets passed. both sides to instant up and say okay. >> what was the piece the democrats threw in that wasn't straight zika. >> there was stuff that goes into potentially for climate control issues. have been on the rise so there's

funding. >> fair enough. >> need more bats. >> there was a problem with bats. >> i'm not kidding. >> bats have been returning. >> bats eats thousands of mosques each per night. >> we need to be realistic about this and spray pesticides. we have not been doing a good job. >> how about bats that separate pesticide. >> i take this issue very serious as a pregnant woman. >> i train bats. >> in the meantime, we have some more zika news. the top golfer won't be competing because of the threat. he won't travel to the game because of the possible risk and danger it could pose to his wife. this announcements coming just after a rory mcilroy. leaders of canada and mexico

today to discuss importance of trade. formerly known as the three amigos will hold a komps in canada this afternoon, but a very different tone on trade than the campaign trail. donald trump has some harsh words for the tpp. a rally in ohio last night. blamed a wave of globalization for wiping out the middle class. promised to store lost factory jobs by backing away from trade deals and withdrawal the united states from the tpp once it is ratified. >> the trans-pacific partnership is another disaster done and pushed by special interests just to rape our country. it's a harsh word. it's a rape of our country. this is down by wealthy people that want to take advantage of us and that want to assign another partnership.

>> in the meantime democratic candidate hillary clinton advocated for tpp, but came out against it last fall because she said that once it was negotiated, it did not meet her standards. >> trade is an issue that both sides have run from, but donald trump's comments on this were quite a bit stronger. >> politicians don't have the power to impact where things are made. you know who does, consumers. if we choose to purchase u.s. made goods, spend a little more and see the demand -- i know it sounds simplistic. everything coming down to price. the reason that moves offshore is cost of production. why does cost of production matter because people don't want to spend money or they don't have the money to spend. because the jobs have moved offshore. it's a downward spiral. >> do you think we have the choice. >> theoretically we do.

>> theoretically, but most people can't really look at the label and are not always going to decide they can buy american and the numbers don't add. >> because the jobs have mooufds overseas because price matters so where does that chain end? i think there's a completely missing piece of this argument which is ultimately the technology has robbed this country of jobs, but the larger march here is technology. would argue even over the outsourcing of everything. even if you look at a town like pittsburgh, so many of those jobs became medical jobs. it's a much more complicated than what's being addressed. >> are you suggesting politicians are. >> news at 11. we have to get to wilfred. european gathering the uk.

frost joins us in brussels right now. he's got the latest. >> andrew, thank you very much. yes, indeed. late last night we had prime minister david cameron's final ever press conference. he's been kicked out today. the other 27 members are still meeting behind me. the prime minister was in a somber down beat mood, but the content of what he had to say was fairly constructive. here are his comments in terms of what he thought other leaders made of the uk's decision to pull out of the eu. >> there was universal respect for this decision and this decision will be carried through in britain and is understood it will be carried through here in the european union. the tone of the meeting was one of sadness and regret. >> reporter: now the president of the eu commission mr. juncker

struck a more critical note. >> i thought that if you want to leave, you have a plan. you have a project. you have a global picture. they don't have it. >> reporter: now, as i said, the other 27 members are continuing their meeting. they did however say a formal brexit meeting will take place in september once the new prime minister is in place. it's a sign of the extraordinary divisions and turmoil in uk politics in the moment that as david cameron went home early this morning, another uk politician arrived in brussels. taking meetings in the building just across the road of the european parliament to see what sort of special deal she could get out while scotland

overwellingly voted to remain. she will also take a meeting with mr. yunger today. >> all right. we'll see you again, i'm sure. thank you. let's get back now to your markets. stocks could look to add to yesterday's gains. now yesterday we jumped 270 pounts in the dow. we had buying into the close. that's usually a good sign for the next day. that's what we've got now. indicating a gain of 100 points at the hope. her is a global market strategist. along with david joy, chief market strategist at aher prize financial. for two days it was all doom. today appears everything is fine. please note a little bit of sarcasm at my point. what do you attribute yesterday's fwans and just the general rise of volatility.

>> sure. friday and monday were characterized by a risk offset element. peopling selling across the equity. now you have a little bit of people coming in looking for opportunity. realizing the rally of last week before friday was pretty significant. so to get back to some of those fair value levels that we're seeing today and yesterday as well. >> do you think there's a recognition that yes the brexit may have a monstrous impact, but if it does, it will likely be down the road. we don't know when it will be implemented or what will happen. everyone is just guessing. do you think stock prices are going to be unaffected by brexit for at least the next couple of quarters. >> it's a tough one to call. you make the right points. the uncertainty is not going to

go away. we have a few months before the government gets itself figured out. we have more months to see what an eu exit means for the uk. so the actual implications for the global economy are going to be muted and uncertain and drawn out. now a bit of that shock is being swallowed. let's look at where the fundamental is at. you're seeing that occur in the europe industries. for example, the ftse 100 which is comprised of multinationals that will benefit on a lower pound is doing better than the mid caps which have taken more of a beating. investors are starting to understand that differentiation and playing that the in the current market mood and looking forward for the uncertainty that will come for many months. >> you and i have been talking for a long time. sadly i think i've been doing this for a long time through multiple crises and i remember

the dow at 7,000 when i started my career. it's now at 17,000. we lurch from crisis to crisis. stocks do tend to go up. is a good piece of advice to keep calm and invest on. >> yes, for the long-term investor. this event is going to start to appear in the economic data over the next month and next couple of quarters and as a result, i think that we may have seen the near term highs for the global marketplace for a little bit of time here. so in the interim, i think you need to be a little bit cautious. longer term, i think we're going to be okay once this gets sorted out, but there's a good chance the uk goes into a recession and i do think that a big issue for the united states is going to be what is going to be the relative strength of the dollar here. you've seen the dollar move higher over the last couple of days. if that persists it's going to

be awfully tough for the u.s. to start producing positive earnings growth in the second half which was the. >> do you think we'll see an earnings contraction? not producing growth is different than a contraction. do you think corporate earnings will begin to contract? because that's means prices that means stock prices have to come down. >> certainly a chance the energy sector is going to be washing out negativity, but if the dollar persists then the energy sector and materials more broadly are going to struggle. not only that we know the export part of our economy has been weak going into this. this strength in the dollar is not going to help. the eu is an important trading partner of ours. i don't think we've seen the full story. it's going to unfold over time.

>> all right, david joy, thank you for your time this morning. we do appreciate it. coming up when we return, nike falling at premarket trade. we're going to talk about it. company reporting revenue and future orders that fell short of the estimate. we're going to get through it when we return. we got another one. i have an orc-o-gram for an "owen." that's me. ♪ you should hire stacy drew. ♪ ♪ she wants to change the world with you. ♪ ♪ she can program jet engines to talk and such. ♪ ♪ her biggest weakness is she cares too much. ♪ thank you. my friend really wants a job at ge. mine too. ♪ i'm a wise elf from a far off shire. ♪ and sanjay patel is who you should hire. ♪ thank you. seriously though, stacy went to a great school and she's really loyal. you should give her a shot. sanjay's a team player and uh...

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nike taking a big tumble. that's lower than the 8.28 billion they had expected. rising 11%. that was short of estimates as well. this number is closely watched by investors not just for nike, but a signal for everything. joining us right now is equity research analyst. are these nike specific issues, do you think. >> i think what you have is a choppy backdrop. not just here domestically, but globally. what nike needs to do is continue to show invasion.

the report last night was mixed. the revenues were soft like you talked about. gross margins are weaker. they need to show the invasion. particularly in north america. it's what's going to be separates. >> is this a story about the sell of apparel, slow down across the board. is this a story of competition. what's driving to the extent you think there's challenges? what's driving it? >> i think it's less commission. i think it's more broad based consumer being more picky in terms of what they're buying. holding back i think tourism, nike is not immune to it. i do think competition is something worth noting you do have under armor now, r, you ha adisagree das, you have nike. to me that's more than enough

growth. >> we've actually seen shares of under armor under pressure just like nike. is this a situation where you like one company over the other. >> i think the space is very's to be negative. you have the low gas prices. all of a sudden same store sells whether or not coming through. too many dollar stores in the u.s. dollar general now it's 20 times because things have normalized. inventory has been heavy in athletic. lieu lieu l lululemon was the first to say it was clean. >> you think this is a buying opportunity for all of these stocks. i think athletic, once the dust settles is a place to be. it's the invasion bucket that's really going to separate the companies. >> what are we about to see. what about the basketball schools, down. air jordans are the only thing

up. why is that. >> basketball as a hole is not the issue. i think it's signaturele basketball at nike that's been the issue. so if you see under armor put out the curry shoe. absolutely on fire. right price point, consumer flocked to it. if you look at nike, completely sold out this week with invasion bind it. lebron's shoe was off. more made for jeans than shorts. this to me is up to nike. if they put the invasion out there. they have the brand name and the quality. >> 12 months out what do you think the stock is worth. >> 12 months out we see 06s to 70s. i think that's fair value for nike. >> any brexit risk. >> we've been evaluating the brexit exposure to all of these names. >> how can you do that?

how does anybody analyze the brexit. we have no idea what's going to happen. >> all you can do is look at the europe exposure. take a look at how they hedge and for nike that's a tough bet to make. sometimes it's gains sometimes it's losses, but teacher i think it's what happened to consumer conferred over there and how does that spread potentially from a tourism impact over here. to me that's along the lines of luxury retailers that are going to be impacted. i think nike will be okay. >> thanks. when we come back if you are a visitor to the united states border agents may be asking for your twitter handle. take a look at winners and losers.

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good morning and welcome back to "squawk box." after ending session highs and basically wiping out monday's gains. it looks like the dow futures are up. things have been picking up in the morning. the nasdaq down by 42. still not back to where we were before the brexit vote. still hangs in there, but, again, you are looking at a

positive trend this morning. also take a look at the price of crude oil. as crude oil goes, so goes the equity markets and that is the case this morning. wti up .63. time now for the executive edge. board control agents could start asking to see your facebook page. part of the screening process for entry into america. the proposed change would add a line for that information for visitors planning to stay here up to 90 days without a visa. filling in the information would be optional. not sure what information you would be writing on a line, but. >> there have been incidents where they look at statements online and say there are issues where these things. >> given our prior conversation about technology, one would

assume a massive computer doing billions of word scans a second could probably do better than somebody filling in a form. >> probably. >> more than probably. we've got another story for you this morning. amazon debuting a new sight. launch pad. exclusively made by startups. eligible for amazon prime free two-day shipping and also available through the main site. >> listen to this, would you put up with a five hour wait for a five minute ride? that's what you need to do if you plan on riding the frozen themmed ride in orlando. it opened tuesday and still drawing fans willing to wait in the massive lines.

>> this is a real disney file. >> was the troll ride next to its a small world. >> no, different park. >> would seem so. it's a small world, trolls. no. >> no, no. >> it's all over my head. i'm sorry, but mark your calendar. if you haven't already. look back at this date in history. the first generation iphone went on sale today. steve jobs showed the phone at the show. it would go onto sell 6 million iphones alone in the first year. mark mobius will join us after the break. as we head to the break, a quick check in on what's happening

with the european markets right now. ftse regaining a bit of what it lost in the last session, you might have heard about it, brexit. we're back after this. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t.

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welcome back to "squawk box," everybody. speaking in chicago on tuesday says the referendum has shifted is global risk to the downside. >> we issued a statement last friday saying that the federal reserve is carefully monitoring. and that we're prepared to provide dollar liquidity with central banks as necessary to address pressures in global funding markets. >> powell says a brexit induced rise in the dollar would add to a steady tightening in u.s.

financial conditions. joining us right now to talk more about brexit impact on emerging markets. mark, you are somebody who is no stranger to black swans, who is no stranger to potential decline in the market, but you say the brexit vote caught you offguard. where is that? >> i think the brexit will be beneficial for eastern europe because of the manufacturing that's taking place in the uk will move to eastern europe. that depends if the countries step up to the plate and encourage investment in a more favorable way than they are now. i think the whole center of gravity for the financial markets is going to be moving into asia. the speed at which the chinese free up will be the determining factor as to whether more and

more trading moves to asia and particularly china and ipos move to that part of the world. >> you think this is happening, the speed of the move of trade to asia is being prompted in part by this brexit vote? >> yes, i believe that we're beginning to see people thinking in that direction. of course, nothing really has happened yet because people are sort of frozen. it's like a deer in the headlights. they don't know what's next and they don't want to make any decision. i believe that as we simmer down and begin to think about this future, that certainly will be in people's minds. >> but you were shocked yourself at the brexit vote. you thought that the way things lined up it would have made much more sense for the britains to stay in europe, right? >> absolutely. i was one of the people that was very wrong on what we had expected. it was an amazing event, and, i believe, now in england there

are second thoughts. some of the implications as you know, boris johnson has gone back on his saying that they would move forward with the separation and with trade, et cetera, et cetera, and now they're beginning to think twice. >> in terms of the emerging markets that you like as a result, where can you be more specific? where do you through the biggest beneficiaries are and how do you play that as a investor? >> biggest will be china because more and more trade will go in that direction. i believe that with the softening of the u.s. market and with what's happening in europe, people will begin to think more about diversification. they're very underweight in general. some of the frontier markets in africa, in the middle east and so forth will benefit with more floisover funds. >> have you moved any of your money yet or do you think it's too early to play some of this

stuff at this point? >> we haven't moved much. earlier this year we were moving more into brazil. i think latin america looks good in this scenario, but we haven't really done anything yet because we're still evaluating what are the impact. if we look at the list of stocks in our portfolio, there are not many that are going to have a big impact from uk holdings so that is the important factor. at least at this stage. >> mark, when you look at brazil and think it's a positive story, that is counter to what most people are thinking at this point. what do you see there that you like. >> consumer. any of the consumer plays in brazil look very, very cheep and look very interesting. brazil is a huge consumer market. they will recover. there will be a certain spirit of growth. next year where he believe and the consumer names will do very

well. >> what about the huge challenges we've seen in the currency markets over the last four trading sessions or so. how do you try and figure out how to play some of these international markets when currencies have been so volatile. >> i think one of the things that's clear is there's been a recovery of market currencies from the beginning of this year. they lost a lot oef the last few years, but now we've seen some recovery. with some recovery of commodity prices. so the rush out of emerging market currencies has slowed down and we are certainly looking at this very carefully. some of them are overvalued, but some or under valued. >> if you look at the tie baht

is under valued. korean yuan. >> although doing anything around the is no dependent on what china does from day-to-day. that can be a risky play anticipating what the government is going to do. >> yes, i think we have to look at that in the basket of currency. they moved away from looking at the u.s. dollar. >> right. >> explicitly and now the basket is what we have to concentrate on. that means their main trading partners. trading parter ins are going to be more and more the asian countries. we have to look at the yen, the baht. korean yuan, et cetera, et cetera. i believe the move will be very, very slight. very cautious. they will not allow big big

changes in the value. >> you just said something very interesting how chooip is going to be trading more with his asian partners. what do you think of tpp and is it a trade pact the united states should sign to prevent china from being the only player in the arena. >> there's no question that the u.s. has to wake up to what china is doing, and, i believe, the best path would be to cooperate and join with china. here you have two great nations. if they cooperate it could be beneficial to both. >> to the pacific partnership doesn't include kooin. >> that's a mistake. i think they've got to include china. china is the biggest entity in that part of the world and their biggest trade partners are the asian countries so really doesn't make sense to exclude them. >> mark, thank you for your time

today. it's great to see you, sir. >> thank you. coming up when we return, potential benefits and maybe no so many benefits. why the brexit vote could lead to better cyber security protections on the upside. there's another view as well. we're back in a moment. with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks.

welcome back to "squawk box"

everybody. a pair of economic reports top today's agenda here in the united states. you get the made personal income and spending number. a little bit later on look for the may pending 10:00 a.m., watch for the pending home sales. that's after surging to more than decade high in april. as for earnings, monsanto and general mills report before the opening bell. here's how your futures look this morning. it could be another decent day for the stock market. we're up 270 yesterday. some buying into the close. now the dow jones indicating a jump of about 90 points, andrew, at the open. okay. let's talk tech right now. britain's decision to leave the eu has been met with mixed reviews of those in the uk. some think it means may need better tech security. why some think britain could benefit from the brexit. you think this is a good thing. when you came on the set i said

to you, google, facebook, a number of american companies think brexit is going to be terrible for them. there's going to be different rules and make things much more complicated. >> so it's interesting. i think that there's that perspective, for sure. the way we're looking at it is the things we've been doing in terms of protecting our borders, immigration control, literally every passenger that comes into the united states being processed on our systems, the demand for that has been growing in europe as well. you've heard about the migration issues and all of those. those are the trends we saw happening over the last six months. so we started talking to the eu about securing eu borders. now if you think about more borders being created within the european union with brexit, for example -- >> better for business. >> better for business. >> okay. so maybe better for business but let me ask you a separate question which is is it better

for the world? with multiple border controls will we be safer or less safe because then there's sharing information? >> clearly. i think the european union and the u.s. were in talks of the privacy shield as you know which allows for data sharing across the atlantic. with brexit, something similar has to be put in place between the uk and the european union. in the near term at least the privacy shield types of things will still apply to the uk. that won't break down. >> you think we'll be safer or less safe because of this? >> well, as we look at securing our national borders here in the u.s., it's all about understanding -- and you had a border security type of a story just earlier this morning. >> right. >> those types of technology solutions are the ones that we're depending on more and more. so we believe that securing physical boundaries by using analytics, biometrics, vascular

recognition, those are the types of solutions that we're offering. so -- >> is that in some way profiling though? there's a huge pushback against profiling. >> i think -- >> when you say biometrics. i mean, those are fancy sounding words, but in reality are we just talking about profiling? >> i think you're trying to identify those that are higher risk from those that are lower risk. i don't consider it profiling, per se. >> 18 to 25-year-old muslim men, statistically. >> clearly that's not the way we're looking at it. we look at it from a behavioral standpoint. what is your behavior and what are the things you might do. >> what are metrics that you look at a little bit different? >> we're integrating some of the different -- i'll call it data base of information around the world of what travelers are doing. we also look at new areas around integrating that into biometrics and facial recognition and so on.

it's more about identifying the individuals, land border crossings and vehicles going across the border. and then on the cyber side, securing financial institution transactions, for example. we have a product called stealth that actually cloaks networks in effect. >> what does that mean? cloaking networks? >> so it shrinks the attack surface. very new approach of security. enabling basically less and less and less to be accessed. >> right, sure. >> and then providing a shield around that our technology called stealth for a reason where it's hard to attack. we're the only on web services, microsoft and we think the next cloud builder will put it on there as well. >> one of the bigger issues is where all these cloud based operations are going to have to live. which is to say that in a fractured eu, right now nobody knows where these places are going to physically be.

where will you be? >> so, you know, we have 30% of our business in europe today. >> right. >> around 11% in the uk. so we're sort of on both sides of the channel. in a way, if you think about the eu wanting to have a national identity and the uk wanting a national identity, there might be this domicile thing that comes up and says data centers has to reside on both sides of the atlantic. we're positioned for that. will there be a lift and shift of data centers as a result of this? i think that'll play out over time. >> do you think the eu is going to become more about attacking or less friendly to american companies with the uk out? that is a prevailing view in the valley right now. that the uk in an odd way was a protector of the american relationship. on the margin. >> i think the relationship that the bilateral uk/u.s. relationship is strong if not

stronger. i don't think this necessarily breaks down that model. it's in nobody's interest to take an open market place and put economic and commercial boundaries around that this was about national identity. >> inder, thank you. >> thank you. when we return, we'll talk more about the attacks in turkey killing 41 people at this point. we will talk to security expert michael leiter. ♪

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the terrorism center about global security, the isis threat, and the war on terror. the calm after the storm. the global stocks bouncing back after the brexit shock. u.s. futures in the green. europe in rally mode. and the currency steadying. are the brexit fears fading or is there more fallout to come? donald trump doubles down on trade. >> just a continuing rape of our country. that's what it is too. it's a harsh word. it's a rape of our country. >> the gop nominee blasting the trade deal. the latest from the campaign trail straight ahead as the second hour of "squawk box" begins right now. live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" rugt here on cnbc first in business worldwide. i'm andrew ross sorkin with becky quick and brian in for joe

kernen. top story, terror in turkey. explosions rocking turkey's airport leaving 41 people dead and around 150 people wounded. that's according to the prime minister. blaming isis for the attack. we're going to talk counterterrorism with michael leiter in about 30 minutes. let's get to becky with the market's action. >> let's get a check on the markets. you're going to see the futures are higher. yesterday the markets closed gaining 269 points. picked up all the ground it lost on monday. but not the ground it lost on sunday after the brexit vote -- on friday after the brexit vote. the dow futures up now about 92 points. s&p up by 12.5. in europe those green arrows continue there as well. the dax is up by 1.75%. the cac up by 2.5%. and stocks ended higher in asia as well. the nikkei was up by 1.6%. the hang seng up by 1.3%.

a lot of this has been happening as oil continues to rise. wti up to 48.39. you see brent up at 49.08. check out the 10-year. yields still at the low level of 1.46%. we will continue to monitor treasuries not only here but around the globe where you've seen all kinds of crazy moves. right now if you look at currency, you'll see the pound is still stable at 1.3437. and check out gold prices which had risen so sharply on friday and monday. this morning they're relatively flat. also in your headlines this morning, a major energy industry emergencier is off at least for now. pipeline operator energy transfer equity has terminated its deal with williams. this follows a ruling by a judge last week that ete could pull out due to unexpected tax

consequences. williams obviously not happy. says it plans to appeal that decision. the deal was worth $33 billion when it was announced last year. meantime, honeywell is getting a new ceo although not until next year. the president and chief operating officer will take over from current ceo next march. cody will continue as executive chairman for an additional year after the transition. and you also have several economic reports ahead this morning. out at 8:30 a.m. eastern. then at 10:00 a.m., the national association of realtors out with its may pending home sales number. japanese prime minister shinzo abe is urging the boj to provide enough funds to the market to ensure liquidity in the wake of the brexit vote. abe met with bankers for a second straight day. there are worries that fallout from the brexit could trigger an unwelcome spike in the yen. we've already seen it.

of course there's always going to be that separation between central banks and politicians but abe says the government is ready to use all policy tools to support the economy and small business. let's get another check on the futures this morning. as we showed you dow's been up by triple digits earlier. right now sitting just below 100. s&p up by 13. nasdaq by 29. broader markets seeing their best day in about four months yesterday. so is the rally real or is there more fallout ahead? joining us now is david bianco from deutsche bank, paul hickey of spoken investment group, and guy adami. guy, you think this could be real. >> i think it's obviously for real. had a great bounce off lows. but i think there are headwinds. and the headwinds, some of the things you mentioned. global bond yields. a yield between 2 and 10, less than 90 basis points.

the last time we saw lels like that december 2007. and i think we all remember what happened from there. not to suggest we're on the precipice of something. with that said, here's a market being led by utilities and being led by telecom. you want to see what's going on? look no further than at&t and verizon last year and a half. and they're both broken out to the upside. to me that's not really a sign of a broader healthy market. >> it's not, but you think the rally's for real? >> i think this rally can last into this weekend. i think people are going to challenge and they are going to protect the s&p which is a critical level for a number of reasons. technicians will be looking at. do i think it's for real? i think this entire market, respectfully, is absolutely built on sand. you need strong revenue, strong revenue growth. in my opinion you have neither. >> let's look at the global

yields we've seen in treasuries. that has been kind of stunning. nornlly if you see the 10-year, you'd flip out and think the economy is going to hell. >> what we're seeing is what guy was saying. gold and yields haven't really moved upward or down. that's one thing just to watch here. but, you know -- the market was clearly positioned for the opposite outcome last thursday. so we'll see. are there any, you know, bodies to be uncovered in the market selloff? taking a step back, these types of selloffs, whenever we see an event like this. people start saying this is going to happen. this is going to happen. the reality is nobody knows what's going to happen. and these what if scenarios usually do not pan out. so you look historically at these types of selloffs and what we've seen is over a short

period of time, the market stabilizes. and you know, short to intermediate term, the market comes back to these pre-selloff levels. i think you've got to put it in perspective. >> keep putting it in perspective, david. we're talking about a market selloff of about 650 points right now. which is not massive. we're still above where we were in february on some of these trading positions. we've had a hard time getting stocks going. it's been a tough bed to make. but we're not looking at a massive selloff at least not at this point. >> well, so far from the top to the bottom of the market, it's been about a 5% decline. these things happen a couple times a year. but i am very concerned about the market for the summer. i think there's still significant downside risk for the s&p this summer. i think the s&p likely falls to something like 1950, perhaps lower. it is true that these low interest rates in the united states and around the world are supportive for p.e. multiples, i'd like to see higher p.e.s on health care and technology. but these are a massive challenge to the financial sector. we are back in the thick of

things when it comes to currency, uncertainty. >> that's the risk, isn't it? >> where it's pound. sterling has more downside, euro's got more downside. if we've got european currency downside. right this moment you see the stock market leading oil rather than oil leading the stock market. but i think the point is that if we've got too strong of a dollar again, it's going to be difficult for climbing to higher levels. >> i think that oil hasn't been -- i mean, oil's been pulled back but we haven't seen oil get crushed and i think that's a positive to look at here because the dollar has strengthened and we haven't seen oil get crushed. the fed is certainly going to be dovish going out forward. the u.s. has the potential to become a safe haven asset. seeing the currency drop like emerging market. people are going to shift capital out of those areas. it even makes relative attractiveness of markets because you're seeing this in developed economies.

so you see a safe haven asset and maybe benefit in emerging markets, i think. >> if you could put money in one country, what would you do right now? >> i'm still waiting for there to be more downside on europe assets. right now i think cash is a great place to be to keep your options open. >> it's amazing how cordial this group is. what's missing? oh, i know what's missing. who's coming back tomorrow? j.k. with that said, you mentioned -- listen. i think you have tremendous risk in terms of what the chinese can do. they've tried to play nice in the sandbox now for a long time. sterling goes from 150 to 133 overnight and they have to say our currency is way too strong given this backdrop. you could walk in one day and they could have done something dramatic. >> i'd fight with you if i didn't agree with you. two days ago i wrote the biggest risk to the market was china. it was the brexit but because pounds, sterling up, china whoa.

the offshore yuan getting devalued. maybe they have to set off a -- when the market did have a massive hit, it was because of china. we're still above february levels. so is there a risk the brexit could sort of shape that china currency dragon which brought us down in february. those were to me more nerve-racking market days than we have right now. >> sterling could be the domino which causes currencies to fall. china is a big concern of mine for the near term and longer term. i'm very disappointed with this brexit situation. i'm very disappointed with the policy response so far. i feel like the bank of england's just willing to let sterling fall. i think that's bad. their overnight rate's 50 basis points. i think if anything they should be defending sterling to prevent uk assets like real estate from

falling further which would destabilize much of europe. and i don't like the response out of the eu so far. really feel like the eu should be saying, okay, we get it. this is a big message. they should be signaling willingness to negotiate. >> but that is exactly what the politicians don't want. they feel like we want to punish britain for voting to leave. >> i understand why they said that before the vote. at this stage they should say we get it. this is a loud and strong rebuke and they should be negotiating better terms. >> they're talking about dropping english as one of the englishs of europe. if you want a nice -- that's a guy adami type response right there. we ain't speaking english no more in here. >> i don't know if i should take that as a compliment or insult. >> it was like you're saying is hey, this show isn't as good because joe's not here. >> i love joe. i got to throw joe kernen --

come on. >> why don't you just wear a bengals jersey next time. >> if you invite me back, i will wear it on the show for joe kernen. if you would like me to, i would. >> and nothing else. >> you know joe's watching right now. it's all good. >> i want to know how the u.s. election is going to play into all of this. >> so do we. >> did that have an effect on your thinking? >> i think what this turnout and the reaction from it we're seeing, i think it's a much better outcome of outlook for clinton than trump. i think people are saying you have to think about what you're voting here and you have -- you're not just voting in emotion rather than vote for policy. whatever your opinions are, but -- >> you think the u.s. looks at brexit, thinks it's a mistake and goes -- what really? >> i think the quote, unquote chaos you're seeing right now is causing people to rethink their opinions on things. and things can change -- >> i was going to say we'll see

the level of chaos and whether it rises or drops over the next few months. >> politics changes from week to week. >> but in the meantime, the u.s. stock market hasn't made anybody any money in two years. up 2% over two years' time. all the other stuff, all the other noise, and if you just bought an index fund you've made -- >> even with interest rates almost at zero. >> people say stocks look like a good alternative and look at bond yields. yeah but why are bond yields so low? >> in my opinion don't look at it that way. you talk about the yields and s&p 500 companies largely being higher of that in the bond market. but you're comparing apples to oranges. you're not taking into consideration that the underlying asset could get obliterated in the global world we live in right now. >> that's what i'm saying. people are saying buy stocks just because of that. that's a false read, right, guy? because you have to look at why buying yields are so slow.

people say buy an index fund and let it ride. if you've done that in two years, you've made nothing. >> if you've done it over five years, you've done well. >> if you've done it over six years -- >> done even better. >> the question is why are yields where they are. i think janet yellen spoke to this. she danced around it. because i think the enemy has been the deflationary environment we're in and will remain in for a long period of time. >> okay. gentlemen, it is great to see all of you. >> it's been fun. >> i'll be back. >> with the bengals jersey. when we return, donald trump declaring a trade war. vowing to rip up a number of trade deals. we're going to head to the campaign trail. that's next right here on "squawk box." back in a moment.

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trump was looking back at the steel industry that's gone away saying he could bring it back. and denouncing trade deals in the most provocative terms. here's donald trump. >> the transpacific partnership is another disaster. done and pushed by special interests who want to rape our country, just a continuing rape of our country. that's what it is too. it's a harsh word. it's a rape of our country. this is done by wealthy people that want to take advantage of us and want to assign another partnership. >> i want america to get back in the future business. you know, saying that you want to make america great again is code for saying we want to go back to the way it used to be. forget about technology. forget about inclusivity, forget about everybody having an opportunity to have a best shot at the best possible future. >> you can't understate what a turnaround that is. 75% of republicans in the house and senate voted for the trade

deals that donald trump was denouncing yesterday. and just as he was speaking, the u.s. chamber, the business round table, the national association of manufacturers all set out tweets criticizing the message distancing themselves from it. the question is going to be could donald trump pick up enough white working class voters? he did well with that in the primary but enough of them who would otherwise vote democratic to offset erosion among republicans. free trade has been a staple of republican orthodoxy for decades. donald trump needs to unite his party. we'll see whether this tactic is successful for him, guys. >> john, when you think about, though, that issue and specifically also -- i mean, hillary clinton doesn't -- she didn't vote for this thing either. it becomes very complicated. >> well, yes. but hillary clinton has identified with the bush administration. in fact, that was the contrast that donald trump wanted to make

was that the bill clinton administration pushed through nafta, china's acceptance to the world trade organization. if he is going to run to the left of hillary clinton on trade, that leaves a lot of room in the center and in the business community for hillary clinton to appeal. don't know whether she will be able to do that, but it is a quite unusual alignment of forces. >> but do you think the support of the business community is now considered a good thing? that's become the ultimate question given brexit and the whole idea about elites, right? >> well, there are multiple dimensions to what the business community support means. there's financial support and donald trump is the doing very poorly in fund raising. she's doing a lot of fund raising in battle ground states. he's not. >> what's he up? he's doing a $10 million campaign. >> i think by thursday he's now hoping to raise $10 million just

in a couple of days. >> hoping. >> he's got 48 hours left or whatever it is. >> yeah. that's fine. but look, his campaign is dem minimis compared to hers. the signals that are sent by people like hank paulson who came out with an op-ed the other day and said he's endorsing hillary clinton to voters who don't look at business as toxic, who are suburban women, for example around major cities. he was appealing in steel country. but what about the suburbs where people think -- they don't think that the entire economy needs to be turned upside down. now, look. we're going to have proof as this campaign plays out as to whether he can pull that off. but most of what we've seen in the history of recent elections

is that mainstream economic and business support is not a bad thing. it's a good thing. >> okay. we're going to leave the conversation there. john, always great to see you, sir. thank you. when we return, are you heartbroken after the brexit vote? well, there is a dating app for that. we have the details next. and as we head to a break, david cameron is back in london this morning making his weekly appearance in front of parliament. "squawk box" will be back with details in just a bit.

welcome back to "squawk box," everybody. if you live in the united kingdom, voting to remain, and you are now looking for love, guess what. there's a new app for you. remainder is a dating and social platform for the 48%-ers that

voted to stay in the eu. it's developing technology to match up those who are broken by their -- brokenhearted by their country's brexit decision. that app is expected to launch very soon. >> they got to launch something very soon. like yesterday. >> to capitalize on this. >> they're developing technology to do this? i think they're probably just -- >> rewiring. >> the other side is not as good. the just leave app doesn't necessarily bring people together the same way. i don't understand. i've got no hits. now to sports, lebron james opting out of his contract with the cleveland cavaliers. his agent telling espn that james will not exercise a player option that would have paid him $24 million next season. that makes the mvp technically a free agent for the third straight summer. relax, though. although he has opted out, the 31-year-old can resign with the cavs. lebron saying last week he has no intention of leaving cleveland again. he could sign a deal to get him

a max salary of $30 million. not so much as an opt out as an opt in to more money. coming up, we're going to try to make some sense of this senseless situation. terror in turkey. coordinated suicide bombings at the airport in istanbul. we're going to talk to a counterterrorism expert about global security and the war or terror. take a look at equity futures at this hour. we're back in a moment.

welcome back, everybody. toyota is recalling nearly 3.4 million cars worldwide involving two different issues. some vehicles may have small cracks is air bag inflaters and others may have a problem elsewhere. meeting today to talk about international trade and the possible impact of the brexit vote. the three will be holding a joint news conference.

that's coming at 3:00 p.m. eastern time. and atlantic city could see strikes at casinos as one of the busiest gambling he ining holid approaches. and check this out. the colorado rockies game was delayed after heavy rain and hail brought floods to part of denver including inside the rockies dugout. a powerful storm pushed back the first pitch almost three hours. the home team ended up losing to the blue jays 14-9. more data this morning on housing market. mortgage applications dropping 2.6%. diana olick joining us. >> the application volumes are from last week so pre-brexit and the drop in mortgage rates. that said, total volume decreased 2.6% for the week

ending june 24th versus the previous week. they're up nearly 38% from one year ago when interest rates were higher. that annual gain is mostly by application to refinance home loans. they fell for the week seasonally adjusted but are 63% higher than the same week one year ago. mortgage applications to buy a home, they are 13% higher than one year ago. one more set of numbers. that's it. the average contract interest rate for 30-year fixed rate mortgages fell to its lowest level since may of 2013. 3.75% from 3.76%. of course they're a lot lower now. so a lot of folks are asking, should i lock in? or could rates go even lower? yesterday's rates were lower in the last three years. sop yes it's kind of a dicey play. you could wait a few more days to see how things shake out.

it's not like rates are going to spike up any time soon. >> and rates might actually come down. there's a lot of brexit stuff, it's more of a question to our viewers and listeners and maybe you've talked to people out there. i do wonder -- there may be a credit market impact. but is anybody in america really going to say, honey, i don't think we should buy a home because of the brexit? >> no. it's not that they're going to say we shouldn't buy a home because of the brexit. the question is going to be do they feel good about their financial situation? are they invested in the stock market and they've seen losses and that hits their consumer confidence in some level? it's not that they're not going to be able to get a loan because rates are so low. so it's a great time to buy. the bigger issue has nothing to do with brexit. there are so many fewer homes for sale on the market. >> i mean that with all sincerity. we are still above where we were in february. so the market is still up from those levels.

and you just wonder if somebody in dallas or cleveland or boise or whatever it is says, you know, we shouldn't buy a house because i'm worried about the brexit. i don't see that happening. >> i don't see that happening either. especially with low mortgage rates that you're going to get from the low mortgage rates. >> if you want brexit upside, it's going to be rates are going to go down again. >> rates could go down a small bit again. they could go lower. the question again is -- and we have to remember most americans are not as heavily invested in the stock market as we think they are on cnbc. the vast majority of people buying entry level homes are not that invested in the stock market. it's just a question of can they save for the down payment, do they see the economy as improving and their jobs improving and does that give them the confidence to buy a home right now. >> could you find me a mortgage

in german bunds? >> i don't work there. not my area. >> well get on it. >> some people were faking mortgage out in yen a few years ago. you wonder if you could take it out in bunds, now, that would be great. the new count in turkey, 41 people dead. turkey is blaming isis for the attack. joining us is michael leiter who was director of the national counterterrorism center. it's -- what do you say? this is becoming sadly a monthly or bimonthly occurrence. they seem to be growing in scope. literally they don't make all headlines. we've got hundreds around the world. this is the fifth major attack in turkey alone this year. why does it seem to be getting worse, not better despite

billions of dollars being spent on this problem? >> well, it is getting worse right now fundamentally from turkey to western europe. that's because we have a message for isis which is resonating. an ability to use social media. and truthfully, playing counterterrorism on defense is a really tough way to do it. especially if you're in turkey with the porousness of the borders and weapons, it makes these attacks very, very difficult to stop. regardless of how many rings of security you have in an airport which the turks had. for all these reasons the resonance of the message, the fact we're still on defense more than offense. and the availability of weapons in relatively free societies, it's very hard. >> so you're not painting an optimistic picture for the future. despite politicians talks, hundreds of billions being spent. you're saying social media and the way we are structured is not going to make this go away any

time soon? >> well, i think there are real steps we can take. first of all, i say we have to be more aggressive in iraq and syria than we've been. and i think we are still slow in accelerating what the president has intended to do. so i think we have to be more aggressive there. second, we do have to make sure even as the eu makes challenges, that nato remains strong. we have to use nato to protect the rigidity. our aviation security is good. it can be strengthened. we can push these security perimeters out from airports. and fourth, contrary to what some have been argued for, we have to be deeply engaged with this part of the world and our own muslim populations. without security in places like turkey and brussels and paris and the united states, as you all know well, it's a lot harder to have anything else go well.

economically, politically. so security is that precursor. it's the oxygen we breathe to allow the rest to be effective. >> here's the terrible/selfish question. when you look at what happened in turkey and so many of these situations, we still haven't had -- well, some people might say we did have it here on our own shores here. but we haven't had a major attack yet in a meaningful way, in that way. do you expect one? >> well, we have been -- because of the billion dollars spent and talent of a lot of people, we've been very, very good at stopping large scale attacks like we saw on 9/11. we stopped things like that in 2006 and 2009 and beyond. but we have had real tragedies whether it's ft. hood, orlando, san bernardino. and the threat has really changed. >> should we stop saying it's not here then? >> we shouldn't say it's not here. it's different than in other parts of the world.

we don't have the same threat as in turkey but we do have the threat. because a tiny percentage of muslims in the united states are susceptible to isis. we have to change our activities here. but do i think we're going to see daily, monthly attacks like in turkey? no. do i think we have to be deeply engaged and have a partnership between law enforcement in those communities as we have built up since 9/11? absolutely. but i will tell you one thing. there is no silver bullet on this front. there are no walls to be built. there is no instant change that we will do on any front. this is a multifaceted problem. and like most hard problems, it requires a lot of focused effort on a lot of different fronts. >> all right, michael. we're going to leave it there. thank you very much. do appreciate it. >> thank you. when we return, those who don't learn from history, they are said to be doomed to repeat it. so what do european leaders take away from the brexit?

holman jenkins has some advice coming up. but first here's what the ecb's vice president said about the plan to leave the eu. >> in terms of market developments, i think the comparison does not apply. because the reaction as you may recall was that several markets froze. ceased to work. no price formation, no buyers and sellers. and the big impact all over the world, that was not the case this time.

welcome back to "squawk box," everybody. take a look at what's been happening with the stock market. we're going to start with the european markets because that's where so much of the damage was done over the last several trading sessions. yesterday was a different story and so was today. you can see the dax is higher. still up by 1.13%. and the ftse up by 2%. here in the united states we've been following that. we've been following crude and the dow futures up by 76 points. the nasdaq up by 22. eu leadership divided over how to respond to the brexit. holman jenkins is here. he hopes they're going to see the recent vote as a wakeup

call. jenkins writes the twice-weekly column business world and a member of the wsj editorial board. thanks for coming in. so help us here with this. first of all, are you surprised that markets are actually where they are today? that this is almost appears to be like a blip in the world? >> i think it's an overreaction at the time. for the reasons everybody knows. you know, the markets were wrong footed. they thought remain was going to win. the entire british ruling class and political establishment was wrong footed. there was immediate chaos. i don't think it was meant to last. >> and the fear mongering was just that? >> i think there's a lot in europe right now because they wanted this idea that they have to frighten other countries into not leaving. most countries can't do what they did because they're stuck with the euro. a vote to leave would be destroying your savings and having your government default. if you could leave, greece and

spain and portugal would have done it already. the idea other countries are ready to go, is not. >> did you see the nigel farage video yesterday? >> it was hilarious. very entertaining. >> and so how do you think the eu should handle this now? what is the right answer? >> sit and wait. we're going to have a british election in few months. it's quite possible that both major parties will have a leader who's committed to staying. >> you think that's possible? do you think that's legitimately on the table? >> an exit from brexit i think is completely on the table. >> angela merkel said herself yesterday that she thinks any british politician will be in the position of having to follow what their voters have told them. she's taken a hard line stance on it. >> she can't do anything about it. the brits have to file to leave. what's she going to do? kick them out? she can't. >> and when you think about the rest of the uk or whether you think the uk remains united scotland, et cetera, do you think we're in far complete

breakup? >> we're going to vo more terrorist attacks, more elections in europe, more chaos in the eurozone. i think we'll forget about all of that. >> while we have you here, i wanted your thoughts on donald trump's comments on ttp. >> yeah. that was one of the great protectionist speeches in american history. obviously he's playing for ohio and pennsylvania and the midwest. that's his scheme to compete -- >> two major swing states, by the way. ohio and pennsylvania are key to the election. he goes up and says i'm going to put the miners back to work and the steel workers back to work. and if you're a scared unemployed or underemployed person, that message can resonate. >> that's his scheme to compete with hillary. i think it's going to lose to many republicans and republican donors over that stance. i still don't really know what donald trump would do in office. i have no idea. i think he's just playing an election game here. i don't think he has a vision. he just wants to win, win, win. >> there are times you have these weird things happen, right? and i think yesterday we saw one of these weird things happen.

because the u.s. chamber of commerce two organizations both tweeting out literally back-to-back just ironically that donald trump's trade policies will effectively -- and i'm going to summarize here -- destroy the united states. have we seen a time when the aflcio labor union and chamber of commerce agrees on something. and what does that tell you about the state of politics right now. >> you can also see the coal miners and steel workers going to trump. you know, for these protectionist people to be in the republican party for a lot of liberal economic republicans to be in the same party with social conservatives maybe just doesn't make that much sense. maybe we need a realignment of both parties. and trump, he's setting off this explosion. >> do you think it's a wakeup call to our politicians here and

to the way -- the mood of this country? >> well, i think our politicians here already know that there is that great amount of dissatisfaction among working american who is haven't seen their wages go up and who feel a little bit under threat from new groups of americans. i don't think that's news to anybody here. >> i thought it was remarkable to see hank paulson come out with the op-ed in "the washington post" saying he was going to be supportive of hillary clinton. but then the flip side being that i imagine donald trump will take that and there's certain people in the public who will look at that and say he's another member of the elite. >> 55 million people to get elected and donald trump only has 14 million. i don't think he can fight this election without money. >> his point is he doesn't need it. it's unconventional candidate whereas other candidates run from being in the media. >> and speeches like yesterday's will start a prairie fire that will through free media rally

the country. there are people with a lot to lose in the economy and they are not lining up behind trump. >> this is about the people who have something to lose and people who don't. and there are just more. >> i think that's a lot of it. trump really doesn't want to spend money so he needs a strategy like this. >> i want to go back to one issue. we talked about this a couple times since you've been here. i've asked you are you supportive of trump and you've said that you haven't thought that he really wants the job but that if he did, you might -- you could be -- you're open to it. >> he's not me hero. he's not my role model. i have written the convention would replace him. but suggest donald trump was willing to serve as the messenger of the republican set of ideas. he would be an interesting president to have because of his mouth and his ability to slap people around. >> i don't know what you guys talk about at parties and whatever, but what does it mean to be republican or democrat?

is political party affiliation just mean almost nothing this year? because we can point to the paulson who have access to the media saying we're voting for clinton. the union will say we support clinton and this guy will be at a bar saying the hell i am. >> it's always -- each party is a coalition of incompatibles. you've got to get in bed with people you don't agree with in order to get anything done in this country. those coalitions have to rearrange themselves. i think it can still mean something and be a republican and democrat. >> holman jenkins, thank you. when we come back, an iconic breakfast sandwich turns 45 years old. it may be small, but the mighty mcmuffin plays a big role in mcdonald's turnaround that's been fueled by the all-daybreak fast. "squawk box" will be right back. used a 60/40 stock and bond model,

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mcmuffin came in 1971 in california. invented by herb peterson. he was inspired by the idea of a hand held eggs benedict. today the egg mcmuffin and other breakfast items account for a quarter of all sales. back in october they saw their sales jump globally and while the egg mcmuffin recipe hasn't changed much, its ingredients are getting upgrades. we're talking about real butter instead of margarine. and a move towards cage free eggs by 2025. analysts say mcdonald's can afford to make these and still keep profits up because protein prices are relatively cheap and a move towards fresh items will pay dividends. >> the most important thing is that they look progressive. there's a whole other generation going to these fast food restaurants. they need to have the right ingredients. quality of ingredients is the key driver, is the number one thing driving consumers to restaurants. >> and looking progressive

appears to be working. mcdonald's same store sales in the first quarter of this year saw the biggest increase in four years. >> susan, thank you. got all of us hungry this morning. sausage muffins. i like those too. we have earnings out just for cereal and food maker general mills. the bottom line coming in 6 cents above estimates. revenue also topped forecasts and projected annual savings of various cost reduction moves. when we return, we will have this morning's top stories. plus we will welcome special guest host glenn hutchins. we'll get his take on the brexit breakup. the winners, losers, and implication for the u.s. economy. take a look at the u.s. futures this morning. markets rallied as we headed into the close. up once again. dow futures up by 95 points. s&p futures up by 13. the nasdaq up by 28. "squawk box" will be right back.

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global market alert.

green arrows around the world as bulls get their mojo back. but is this brexit bounceback a real rally? we'll let you know what janet yellen will be watching today. glenn hutchins is here with his take on the brexit breakup. the winners, the losers, and the implications for the u.s. economy. plus the road to rio. michael phelps begins his quest for a fifth olympic team. one stroke at a time. as the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york, this is "squawk box." welcome back to "squawk box" here on cnbc. joe is off today. our guest host this hour is north island chairman glenn hutchins. it's great to see you. >> nice to be here. >> thank you for coming in. we have a lot to talk about in

the markets. we are less than 90 minutes away from the opening bell on wall street. check out the futures. they have been higher this morning. dow up now triple digits. gain up by 14. the nasdaq up by 31. that is following the trend in europe. european markets have been higher all morning long. the dax up by 1.6%. the cac in france up 2.4%. and ftse up 2%. terror in turkey. explosions rocking istanbul's airport last night leaving 41 people dead and 140 wounded. u.s. flights have resumed from the u.s. to istanbul. also european officials are gathering in brussels for the second straight day. this follows the vote to leave the eu. today they talked without david cameron. here's the european commission president. >> i thought that if you want to leave you have a plan. you have a project.

you have a global picture. >> meantime in america president obama and the leaders of canada and mexico discussing international trade and the impact of the brexit vote. the three will hold a joint news conference at 3:00 p.m. eastern time today. let's look at other stocks you need to watch this morning. nike under pressure. now, earnings did beat expectations, but it is guidance that matters. and nike warned that future orders may, indeed, slow. general mills earnings and revenues topped estimates. company also increased its projected annual savings. if you have shopped or eaten at noodles and company lately, pay attention. they're saying their credit card information, you guessed it, may have been compromised by malicious software. the software was found at payment terminals with possible data theft occurring over a four-month period.

noodles & co. sony cutting output of sensors for smartphones. are we at peak smartphone? >> it just depends on how quickly you're going to get a new one. >> which is ironic because today back in 2007 the first iphone was released. >> we had a tech guy -- >> what did you get me? >> we have peak phones? >> in the united states the distribution of smartphones is pretty much completed especially at apple. there are still some lower priced android devices that have penetration opportunity. but now that growth will slow down a bit. and it will be driven more by the pace of innovation. >> glenn hutchins as we mentioned is our guest host today. we've been trying to get our hands around what's been happening with the brexit market reaction. today the reaction's a little more muted. a lot of these things are going

to play out over weeks, months, and even years. who do you think wins and loses in this scenario? >> in this situation it's helpful to have architecture with the way to think about it. the way i think about it, it's extra bad for london. it's very bad for the uk. it's bad for europe and interestingly enough for japan. it's a mild negative for the united states. it's a big strategic win for russia. potentially a big strategic win for china. and there are some vulnerables around some countries. and around potential, i think, a low potential for con today gin. and the weakness right now. >> let's go through that wun by one. bad for london because of the financials that are based there. >> it reduces the global reach of london meaningfully.

as well as the -- it's a city that's benefitted from immigration. but if i was -- by the way, if i was mayor of london i'd make a trip to singapore and hong kong -- >> try to get other trading part inners? >> no. look at models for other big cities. that's one of the -- >> why is the sky not falling in europe in particular in the uk the way people thought last week? >> these are longer term implications. this is not short-term dislocations. >> you think they'll get priced in? >> yeah. but -- it should be being priced in. and it will be over time as we understand its implications. but the longer term question for the uk is -- you know, without -- what's really bad for london is bad for uk because london is the economic engine of the uk. and then the economic uncertainty and political uncertainty is going to be reflected in hiring and investment for sure. and then europe, imagine, you

know, if you had kept greece and lost britain, that's kind of the economic adverse selection kind of problem. and then you've got sort of the knock on effects. potential knock on effects politically of other countries who are thinking about this and dealing politically with the contaigent. >> they are very worried about other countries deciding that they want to pull out too. that's probably why we're seeg this sort of punitive reactions. >> i think cooler heads will prevail. but there's no incentive for europe to make this easy for the reasons you've talked about. and ironically for great britain if they want to stay in, they're going to have to conform to all the rules about trading with europe that they thought they were getting themselves out of.

>> like norway does. >> exactly. it's not a win there. and for the united states, really only major impact is so far absent contagion is come to transmission. which has been largely around interest rates in the dollar and might eventually if these lower stock prices sustain, might have a small wealth effect. but i think that will be transitory. >> we look at our financials that have been under pressure. ours have been forced to recapitalize heavily. >> right. >> you're looking where interest rates may not rise for a long time to come. >> that's right. one of the longer term implications -- by the way, one of the real measures of kind of what the vulnerability in bank stocks, i think. the miners here and the london banks have been the ones most significantly hit. i think that cascade tell yous how people are starting to think about this. the london banks have an

immediate problem. the u.s. banks, much more just about the financial transmissions. >> if you're a company on corporate boards and you've been on many corporate boards. we're always trying to figure out on cnbc what does it mean for stock prices and companies and sales and earnings. is brexit is material event for most companies? do you call an emergency board meeting saying what are we going to do about the brexit? >> depends on how you're exposed to the items i laid out. if you're a company that does business primarily in the united states or if you're primarily in a growth industry like technology -- >> you're watching it. >> but you're not that concerned about it. if you're really exposed to london, you're tfocused. and if you're -- your second biggest market is in china, you might feel good about it. >> if you're a company that -- i'm going to make one up.

becky quick corps. >> i'm an investor. i'm in. >> i've got options going on, the whole thing. if you're becky quick corp. and get 70% of your revenue from england and uk, do you bring down your guidance now? >> depends on what you're selling. right? so if you're selling -- you know, when you talk about the iphone being introduced. >> you're selling smiles. >> when apple introduced the ipad at the depth of the global crisis, it was the best selling product of all time. if you're selling that, you can burn your way through this. if you're dependent on -- let's say you're an office services company focused on the financial services community in the city of london. you better think hard of migration of your customer base. >> under armour marched through the last recession too. >> sure. >> you've always been a tech guy. what do you think about the big tech companies and their relationship with europe? if you're a google or facebook

that has big business in the uk but also has a very complicated relationship with brussels. >> really interesting question. i'd say twofold. one is the big tech companies typically have 20% to 30% of their revenue in europe. to the extent that europe is -- you know, the likely outcome here for most economists think for great britain is a recession. you're planning a mild recession for your british business. and probably stasis for your european business. you've got to plan on that. if you are -- if you have a regulatory matter in front of the european union -- >> this is where it gets interesting. >> my guess would be you have to expect greater protectivism. >> uk is no longer at the table. >> uk no longer at the table. that means -- that's one of the bad parts for europe, becky. really good point. both politically and economically uk has always been a rational voice at that table. and now they're gone. >> they're not gone though.

>> they're going to be. >> they weren't even there today. >> but we believe it's going, however. scotland act and some talk that maybe scotland can veto the whole process. >> but if eu leaders are already mad at the british leaders, anything they say isn't going to carry. >> if you're in a long-term relationship and you go to that person saying i'm going to break up with you. i'm still here. but i'm going to break up -- >> yes. but i don't want you speaking on my behalf to the person you're breaking up with. >> do we need relationship management here, guys? >> i just shorted becky quick corp. >> i think the divorce is a good analogy for what's going on here. it's -- >> it's going to be nasty. >> lots of unintended and unfortunate consequences for innocent bystanders. >> glenn's going to be with us for the rest of the show. we have a lot more with him on. fortunately we get to keep him. coming up, border wars, neighboring states like kansas and missouri are duking it out

for business. we'll tell you about the economic tug of war when we return.

welcome back to "squawk box." 8:13 here in the east. good morning. toyota recalling nearly 3.5 million cars and trucks worldwide. at issue, possible defects

involving the air bag inflater, cracks and emissions control units. prius hybrid models may contain both problems. if you own a prius, contact your local toyota dealer. we are just weeks away from the top states for biss rankings where we rate all 50 states for business competitiveness. as we get set to unveil, scott cohen is in kansas city, missouri. >> good morning. i am in kansas city, missouri. right over there kansas city, kansas. now in top states we give points to the states for their insentive programs. both of these states have them. in missouri it's called the missouri works program. you create as few as two jobs and you can keep the withholding tax you'd otherwise pay to the state for up to six years. in kansas they have p.e.a.k.

promoting employment across kansas. you have to create ten jobs but you might be able to keep the withholding tax for as long as ten years. so what does a company do? i'm in missouri, lease some office space in kansas, move employees over there. then i switch it back up. i lease some office space here in missouri, move the employees back here. collect the incentives again. a lot of money spent, no jobs create. even some local companies think this is kind of stupid. >> nobody's saying we should dismantle the programs, but there's a growing need that we should try to agree to a strategy, a regional strategy that would use these tools to attract businesses to this region to be more effective. >> now, there is talk repeatedly about changing this. and a little bit of progress this year, kansas which is facing a budget crisis has offered to cut back some of its incentives. they did that at the end of the

legislative session. had put an offer on the table for kansas which kansas hasn't picked up yet. so at least they're talking about it. still it continues. it may continue for awhile. we've got more about this and all things about competitiveness at our special site topstates.cnbc.com. >> okay. scott cohn and i like to play the game i don't know where he's going to be. so we will follow all that. thanks, scott. trade obviously taking center stage on the campaign trail. gop candidate donald trump had some harsh words at a rally last night in ohio. >> the transpacific partnership is another disaster. done and pushed by special interests who want to rape our country, just a continuing rape of our country. that's what it is too. it's a harsh word. it's a rape of our country.

this is done by wealthy people that want to take advantage of us and that want to assign another partnership. >> our guest host this morning is glenn hutchins. glenn, this is the type of populist argument that concerns the establishment in a big way. it's what we saw play out in brexit. how do you think this is going to play out this fall? >> well, it shouldn't just concern the establishment. but i think what we need to do across leadership in the united states is to avoid the chaos and uncertainty that accompany brexit in the united states. united states has been indispensable nation to the world for over a hundred years. everything something like this occurred we've stepped in and been the bull work of stability. i think his election would be the equivalent of brexit in the united states. >> but donald trump's language was very harsh. but hillary clinton has not come out in favor of free trade. >> very good question. here's how i think about it. this has been the most

information-rich election in i think since ronald reagan's election. >> how so? >> we've learned that the deal on offer to the american electorate from globalization is no longer acceptable. >> from the electorate -- >> from the electorate itself. so we have to respond to that in a very profound way. when i say we, i mean the business community in particular. what i would argue is that we need to sort of send a very clear message that we listen, understand, care. i call that kind of a fairness agenda. >> the reason this has come up is middle class jobs have been chipped away at. we lost manufacturing jobs that used to pay well, pay strong benefits that would come along with good pay. you didn't necessarily have to have a college degree and those jobs have gotten harder to come by. that's why people are pointing their fingers. >> we can't reverse time. the business community needs to move beyond ideology. needs to move beyond party. needs to move beyond narrowly

corporate self-interests and understand that we've got to create a foundation of social stability in which to build our businesses. >> why do you think that's going to happen? >> i think it has to happen. it can happen. you talked earlier about hank paulson endorsing hillary clinton. things like that have to happen. the business leaders need to reach across lines to the liberal part of the american political process and embrace an agenda that addresses the interest of the poor, minimum wage, expanded eitc, all those sorts of things. the middle class, securing and guaranteeing things like social security and medicare for the future. and longer term issue like investing and infrastructure and education. these are things we can't squabble about anymore. the only way we're going to get to future trade agreements and tax reform is if the business community enables these things to happen first. you send a message to people, we care, we hear you, we're having

equality. zblit comes down to jobs, education and training. we have seen companies that have stepped in and tried to increase their programs. companies like at&t to make sure they get engineers and help get people these degrees that will then create jobs for them down the road. do you expect to see more of that though? >> i expect to see a lot more of that. and i'm intending in the coming weeks and months to call on the american business community to do much more of that. >> how so? >> by coming here today and talking about it. i think it's a really were really important thing for us to do. because we can't allow the disintegration and polarization and uncertainty and resulting negative implications for our country. >> there is a trade message that does resonate. trump has never said he's anti-trade. he says the deals we have are bad. he's saying i want to redo some of the trade deals. so that's -- there's a

difference. is there anything he's got where he says, listen, china they don't play fair with currencies. their labor laws aren't as strict so they can pay people almost nothing. there's not a lot of worker protections in china. the average income is $5,000 u.s. a year. yet we have to compete with this for manufacturing and that's not possible because they're playing on a different level the way they treat their people. any part of that message that does resonate. >> just like demagogues of past, he's struck a nerve. it doesn't mean he's got the right answers. and so the right answer -- the way to think about is i think -- >> i'm not talking about answers. i'm talking about the nerve part. that's what people are going to vote on. we won't know the answer for years, decades. >> i'm hoping americans can do what we've done in the past which is be a stabilizing force in the world. and there are pads to that. >> why have both democrats and republican who is have been supportive of free trade done such a horrible job of

articulating the benefits to the public? and if you were going to articulate the benefits to the public, how would you do it? >> first, it's interesting. every four years we learn something from this complicated highly dynamic country called america. every 15 to 20 years we learn something really important in our elections. so what we've learned is that we haven't communicated this very well. we'll have to change the way we think about it. how do you do that? i think you need to say we hear you and we care. and here's what we're prepared to do. i tried to outline some of this a second ago. put that on the table, get leaders at a round table to say we're for that. let's go change the way -- >> can i answer your question? because i'm the only one here from a rural area. although you're born in oklahoma, i think. i'll give you a real life example. >> indiana. >> so my parents, their neighbor ran a light bulb factory in

virginia. and they decided they were going to move them. they were going to close the incandescent light bulb factory and move it to china to make green l.e.d. bulbs. so everybody at the factory lost his job. that's globalization. right? so to make green light bulbs, they moved the manufacturing 11,000 miles to the center of china while almost 300 people in my hometown of winchester, virginia, with not a lot of job opportunities lost their jobs. explain free trade to those people. and i'm not saying trump's right or trump's wrong or this is not a political statement. it's that's why free trade is hard to explain, andrew. because don't worry, we're going to make something else elsewhere but don't worry because it's cheaper for you to buy. >> hold your answer because we've got to go to a break. >> we're going to a break after that? i quit. that's all i have. >> you're out. >> all right. coming up, breaking economic data. minutes away from personal income and spending numbers from

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not just insured. chubb insured. welcome back to "squawk box," everybody. let's take a look at oil prices. they have been higher once again this morning. you can see this morning wti up by about 42 cents. back above 48 at $48.27 a

barrel. brent sitting just under $49 at $48.94. when we come back, we'll look at breaking economic news. we are a few minutes away from personal income spending. and later post-brexit technology plays. glenn hutchins will weigh in on the best opportunities in that sector. as we head to break, look at the u.s. equity futures. dow up by triple digits. s&p up by 13. the nasdaq up by 26. we'll be back. ♪ before the band separated over unknown creative differences. [ crash ] and reunited three decades later for a tour that sold out in three minutes. and your cisco hybrid cloud handled millions of ticket orders without breaking a sweat. before all of this, [ crash ] the experts at cdw orchestrated a cisco hybrid cloud solution. scalability by cisco. orchestration by cdw.

welcome back, "squawk box." live breaking news. may read on income and spending. income up .2. spending up .4. both of those are darn close to expectations. a little light on income. you could argue maybe a little heavy on spending. but it's never too heavy on spending. we have a consumption economy, right? if we look at spending, real personal spending is up .3 month over month up .2. no revisions to our last look. and boy, these are solid numbers especially on the income side. up .2 is pretty good. and we did gather an extra tenth

up to half of 1% on our last look. which make this upper half 1% one of the better numbers since april. of course what's the response in the market place? you are getting, you know, just a mild sell in the treasuries. nothing huge. maybe a half a basis point or so. the real issue is still under 1%. two days in a row of stable if not higher equities and fairly global. and of course the notion of what's going to happen with brexit. i'll tell you what, it was interesting reading all the different meetings that occurred yesterday between the nations and the parliament and the leaders and farage. i'll tell you what. this is going to be one heck of an interesting soap opera. how it turns out in the details, nobody knows. but one thing i think is for sure, many in the camp oversold some of the rambunctiousness was

to follow in the market place. not that it's over, but thus far it's been volatile but orderly. i've lived and traded through many crashes. this doesn't resemble one, in my opinion. back to you. >> okay. and your opinion is worth a lot, rick, because you have been doing it a long time. noted. rick santelli, thank you very much. let's bring back our guest host for the hour glenn hutchins. the previous point i was trying to make was i'm not agreeing or disagreeing on trade, i'm just saying for many people globalization is a hard sell. >> right. and we have to sell it. because the uk leaders who didn't get out a sufficiently strong and clear and empathetic matter are now regretting that in a significant way. the problem with globalization is it's spread like a thin layer of peanut butter a little bit over a lot of people. but that's not sufficiently offset narrowly defined

devastation to industries, communities, certain demographic groups. we have to do a much better job of addressing those people's concerns without creating the impression we could go back to the past. but with creating the impression we care and could do something with their futures. i think that's an important thing. if we don't do that, we're going to end up with something like brexit in this country which we can't afford and can't avoid. >> the problem you're talking about is it will take years to lay the ground work for something like that, to get people into jobs programs, to get them into training programs. to make sure that they see that their children have a future. >> there are things you can do today, things that take a medium amount of time and long period of time. today you can go right after things like expanding the eitc, increasing the minimum wage. you can move pretty quickly, i think, to send a message to social security and medicare is going to be there. so you don't need to worry about your retirement. then you have longer term issues

that you need to deal with like redoing the unemployment programs to get more training. things like wage assistance. trying to get companies to adopt profit sharing. so workers can share in the benefits of the company. then longer term things like, all right, let's invest in infrastructure. let's really go after the education system and get it right. not just for kids but for adults. >> it seems like a quick fix, seems like something you can do rapidly. >> it's wrong to think about infrastructure as a quick fix. this shovel ready concept in 2009, proved to be -- >> i think you and i don't mean to speak for you, becky, but i think you mean it's something we should agree on. let's have crappy roads or good roads. why is that a discussion? >> but i know what glenn is talking about. having the projects rea to go. >> a 10 to 15 year investment in jobs program. so there's this long-term thing you can be employed by and it will improve your community.

it's going to be ongoing that you can observe for a long period. >> but when we've talked about it, you're a technologist. >> thank you. i'll take that as a compliment. >> yes. but we've also talked about how over the next 20 years, if you really start look out 10, 15, 20, 30 years how many jobs ultimately get taken by technology. and what that conversation really means. and what all of this outsourcing is really about. because people talk about bringing manufacturing back to the united states. i could argue to you bring back manufacturing, it's almost irrelevant. the idea of manufacturing is almost an irrelevant issue when it comes to straight up jobs because so much of manufacturing is now going to ultimately be done by robots and technology. >> but in addition to being a technologist i'm a tech techno-optimist which is i think the -- we don't have people using typewriters anymore. we don't have operates sitting at a desk pulling plugs and p putting them in again. but we have women in workplace, those were typically women's

job, and with a lot of opportunity. you would say the typewriter is going to -- the word process is going to make it obsolete. we've actually seen progress. so i think we can do that. but we do need a new kind of safety net to deal with the work. you want to head in the direction with a higher minimum wage. one of the things we miss with a higher minimum wage is that the low minimum wage is the taxpayer subsidies to businesses. we all pay our taxes to do things like have the eitc. have, you know, housing subsidies for people who can't afford. so why not put that cost on the actual businesses and create -- compel them to create a living wage for people and on and on.

i think you move in those directions. >> now bearing the cost of the business. not the taxpayers. then you can shift those resources. take social security. reconceptualize it as the insurance program that pays out to people who need it. paid in by people who have the resources. that's another part of the social complex. you say, we get it. >> if you make above a certain amount, you're not going to get social security because you won't need it. >> or if you have a wealth level -- so it's a means test on steroids. reconceptualizing things. saying we care, we're going to do something about it. >> okay. >> glenn is our guest host and we will have more with him in a moment. in the meantime, the eu summit just wrapping up in brussels. we're getting comments from

european leaders and wilfred frost is there. he joins us from brussels with more on this. >> yes. we have the closing statements. president of the european commission, mr. donald tusk saying the eu leaders are going to be on september 16th without the uk to continue these talks. of course by then we expect the uk prime minister to be in place. he said all eu leaders agree access to the single market requires accepting freedom of movement. that's one of those areas who wants the free trade. but maybe put curves on continuation. saying that's not possible. the president of the european commission added eu leaders will accept no nuances on freedom of movement. so making that view very clear, indeed. we also heard from angela merkel of germany saying the uncertainty about britain's

future the better. also saying that no one wanted treaty change which would be a bigger, more formal change of reform amongst the rest of the eu. so clearly some hard words coming from european leaders here towards whoever is going to be the next uk prime minister about how tough this negotiation is going to be for the uk. the only other point i would just add which may be a silver lining for the uk is it's been confirmed that the european council, the individual country leaders will have the political power of this renegotiation. not institutions like the european commission. so it would be individual nation state heads of government like merkel, renzi, hollande that will decide things. guys? >> all right, wilfred frost in brussels. thank you. coming up, brexit and beyond. former congresswoman jane harmon will join us. she recently sat down with the imf managing director christine

lagarde. we'll ask about anything we want because it's an unscripted show. "squawk box" will be right back.

welcome back to "squawk box." british politics in turmoil after the brexit vote and the fallout could have big consequences for the political race here at home. joining us now is jane harmon, current president and ceo of the woodrow wilson center in washington. she recently sat down with christine lagarde.

good morning. >> good morning from glorious aspen. >> when you think about the implications of brexit and what's going on there, we've had lots of conversations this morning about the feelings around the world about the elites. how do you think it will impact the conversation in the election year? >> well, it'll impact the conversation. how it impacts the election will require some time. in political time, a day is a week and a week is a year. so there's a long time to go before november. short-term i'm very worried about a tax on airports. let's think istanbul and devastation there. as john kerry said at aspen yesterday, that could be the new normal. and i would fear and i think it's possible that airport attacks come to europe now while europe is distracted. certainly there'll be an effort in the united states. and that will throw, it seems to me, a big wrench around all this. so the goal has to be steady hand, long-term vision. that's what christine lagarde said on sunday in aspen.

and angela merkel from the reports i was just hearing sounds like she's the leader who's stepping up along with a couple others in europe and boy, is that welcome. >> before i forget, on the issue of christine lagarde, there were a couple of mentions, critiques of her performance in aspen suggesting why is she in aspen given what seemed like a crisis. given the stock market had not fallen the way some people suspected. what did you think of that criticism? >> well, her appearance was set a year ago. and it was supposed to be for today. what she did was come over the weekend, speak on sunday, and go back to washington where she is now. i think she's headed to europe later today. so i think speaking to this audience made a lot of sense and i think what she said made a lot of sense. and i -- john kerry stopped here yesterday after seeing -- after being in three countries on his way to canada.

this is a form that a lot of people want to take advantage of and i thought she did it brilliantly. >> fair enough. help us with this. when it comes to the election, there's been a lot of comparisons made between boris johnson and donald trump. are those fair? and do you think that his success in the uk portends donald trump's success here? >> well, i think both of them seem similar in terms of personality. i don't know if the -- if the connection goes farther than that. they're different from each other. johnson has a record in government which trump does not have. i don't know yet. johnson, it seems to me, is going to be blamed by the remorse campaign. the remorse campaign is e spshlly millennials who are upset with what just happened. and i think if david cameron plays this carefully, johnson's going to have a big rock to push up a big hill.

and i don't know how that works. in terms of trump, his arrival in -- this is just my observation in my non-partisan role of the woodrow wilson center. his arrival in scotland did not go so well. so ges we'll have to hear more from him. but again, this election season is a long, long time and a lot could happen. >> right. on the topic of the election, when you think about hillary clinton teaming up recently -- we were actually just looking at a picture with elizabeth warren. does that help or hurt her in all of this? >> well, i think it's a piece of a puzzle she's trying to put together. warren is a very important factor to the sanders voters. and to have warren side by side speaks to them and says get in this. it's going to be important for many of them. i'm assuming not all of them will do it. but hopefully for many of them to move over to support her. then it will be important, too,

it seems to me, for moderate republicans disenchanted with trump to support her as well. that's a straddle act she's going to have to do. i had to do it as a member of congress as a democrat who was very progressive on social issues but much more moderate on defense and economic issue. and i think that's basically who she is. she's also going to have to show more empathy. that was just used in your prior segment about this wakeup call on globalization. and there are people hurting in the democratic and republican parties. and it took us too long to figure this out. and that's going to be her biggest challenge. >> congresswoman, it seems she is kind of walking a fine line trying to straddle things by teaming up with elizabeth warren like that. many think she's looking at her as a vice presidential candidate. if she doesn't, is she alienating the bernie sanders voters? if she does, does it sway

moderate voters? >> i don't presume to know who she will choose. i'm reading the same tea leaves you're reading and there are other people in contention like julio castro and others all of whom are impressive. i think she will probably pick someone she's very comfortable with. i don't know if that's warren or not. but i do think she has to think about both pieces. the moderates who don't want to vote for trump. and the more left people in the democratic party who are having a hard time warming up to her. and she's trying to build a bigger tent. i think it's great that warren has embraced her. let's say something nice about warren moving out quickly after it was clear sanders couldn't win and embracing hillary clinton. and really going after trump and making clear that hillary's her candidate. so that's good news. i mean, the democratic party has to pull together. trump is obviously trying to get the republican party to pull together. both candidates are going to have a hard time with this.

but the candidate who can get a big portion of the other party is the one that's on a better glide path. >> glenn, real quick. if elizabeth warren became the vice presidential candidate for hillary clinton, would that change your views of hillary clinton? >> i'm not licensed to practice politics. >> what did joe say? i don't know if viewers saw joe's twitter account. >> joe kernen -- yes. >> i don't know if we have it ready. she was staying in the same hotel in cincinnati as senator warren and they took this lovey dovy picture together. >> one for the ages. congresswoman harman, thank you. >> can i put in one plug? that's for potholes. you were just talking about infrastructure. i don't think it's just a long-term problem. there are potholes and road paving that kids, unemployed kids could do this summer. the infrastructure bank idea has been around a long time. it could include private

investment, even foreign investment. and i think if we roll out something like the civilian conservation corps updated for the 21st century right now, we'll send a message to all these alienated spectrum we car in fact, we'll actually improve our sagging pathetic third-world infrastructure in this country. >> are you stating on the record you are against potholes? >> yes. i am. against potholes. >> we will try to fill those. appreciate your time this morning. thank you. >> jim cramer from the new york stock exchange will join us and get his take on the markets ahead of the open. back in a moment. . getting faster. huh? detecting threats faster, responding faster, recovering faster. when your security's built in not just bolted on, and you protect the data and not just the perimeter, you get faster. wow, speed kills.

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because you've been the voice of reason saying we were lower in february, not the end of the world, we had a nice rally yesterday. today we're indicated up open about 100. do you think the world is coming to xwrips political fallout aside the brexit may not be doom? >> well, i have -- >> right now. >> that could be. the main thing i look at is the credit side. while there was a panic in deutsche bank and credit suisse stock, barclays and lloyds, geez, the paper, the real senior debt and some of the junior debt traded fantastically. it was if the common stocks were an aberration. the government does own some rbs, sold to you, and they own some lloyds not much left, but there was a panic in the common stocks but not in the credit sf stocks where there's smarter money. chinese market is good, copper market has been good, oil market has been good. a lot of stuff away from europe that's not as bad. you have to stop just totally focusing on what's happened in,

you know, where shakespeare the globe theater. time to end the globe theater analysis. >> hutchins is here and has a question for you. >> how have you been? >> how are you? >> all right. >> what do you think about honeywell? >> i love dave cody so much. you can't be a ceo forever. what a remarkable job he's done. he's been a great neighbor. he's quiet and the kids like him. >> shout out to cave thdave tha announced he's stepping down. >> he's staying on as chairman until 2018. >> he's been the best and, you know, maybe -- i hope he sticks around. too young to be able it to do any -- he has to go down to washington and make things better. >> that would be good. >> wouldn't that be great. >> yeah. >> nice way toenz it there. all right -- way to end it there. see you in a bit. our final hang with our guest host glen hutchins. stick around. >> later today microsoft ceo satya nadella will join "closing bell," lot to talk about there,

the linkedin deal. we're back with more on "squawk box" after this.

let's get final thoughts from our guest host glen hutchins. the question for you, you're a tech guy. we've watched the tech world sort of live in a bit of a

bubble and get a little bit deflatsds. how much more do you think it has to go? >> you know, if you had bought the best internet 1.0 stocks, google, amazon, ebay, before the tech crash and held them to today you would have made a lot of money. i would get less concerned about day-to-day valuations of stocks like that and think more about long-term opportunities for them to create real value. right now, the -- there's a huge opportunity in building out the mobile internet which were just the early days of. the biggest investment trend in my lifetime. the combination of voice recognition with artificial intelligence is going to create a whole new way and maybe virtual reality on top of that, going to create a way we interact with our technology. these are massive waves. the other is the creation of a new internet capability around payments which is in the digital currency world, the most

well-known technology -- >> new guys -- >> it will be both. >> and that's find people who can win in those trends buy the stocks hold them and forget about day-to-day ups and downs. >> always fun. >> thank you. >> thank you. >> that does it for us today. make sure you join us tomorrow. time for "squawk on the stree.". . welcome to "squawk on the street." i'm david faber along with jim cramer, carl is off today. we've got breaking news to get you started so let's get right to mary thompson who has got that for us. mary? >> thank you very much, david. this concerns general electric. the financial stability oversight council voting to remove ge capital's nonbank designation or as a systemically important financial institution. ge applied to have it -- ge capital dedesignated in the first quarter of this year. in a