it'smond, july 17th, and "squawk box" begins right now. >> live from new york where business nerve sleeps, this is "squawk box." >> good morning. i'm andrew ross sorkin along with joe kernen and michelle caruso cabrera. becky is off. before we do that, right now in france, they're observing a moment of silence for the victims of the terror attack in nice.

that was the moment of silence in nice for those victims that took place. what are we talking about? 72 hours ago. >> thursday night. >> thursday night. a little more than 72 hours ago. a terrible tragedy. we're going to talk of a number of tragedies this morning. before we do that, we want to take a look at the markets. it was a pretty spectacular week, the dow jones looks like it would open up higher this morning. our s&p 500 up about a point and the nasdaq up about a point and a half. overnight in asia. i think we're keying a little bit off of what's happening over there. european equities aet this hour before we get started this morning, you're looking at a bit of a mixed pitch. things have been marginally down

and finally we're going to look in the 8:00 hour. right now wti crude standing at 4899. japan softbank is buying the chip designer a.r.m. for $32 billion. softbank says it will double its ploemt head count in the uk over the next five years. a deadly military coup has failed. thousands have now been rounded up and arrested as alleged co-conspirat co-conspirators. more than 5,200 people killed since sunday. let's take a look at the weakened lira. right now 2.9 lira. when it looked like the coup was stifled it seemed to improve.

here at home an investigation under way this morning after three louisiana law enforcement officers were killed and three more injured during what officials are calling an ambush. a live report from baton rouge? just a few minutes. exxon's made a bid for more than $2 billion for interoil which may start a bidding war. oil search which is a company has already made an offer for the new guinea firm, so we'll see what happens there. joining us now bernard henkel, princeton university professor. thank you, professor, for joining us. depending on where you watch in this country on the attempted coup, we heard from most leaders that we need to back the democratically elected government of turkey, but there was a lot of talk that this has happened before with the

military, every 10, 15 years, to reassert some secularism and to prevent turkey from becoming an islamic state and some people were actually -- for -- for the united states or for how we go forward, it actually would be better if the coup had succeeded. i don't see a lot of that rhetoric, really, today. and even the idea that it's a democratically elected government, it calls into question since erdogan has kind of pushed down the opposition. how do we look at it? >> erdogan is a democratically elected pretty. >> is he though? is that quotation marks on democratically elected? >> he did win the vote. there's no question about that. the question is he want turn

them democratic? because he's pushing all his key people and getting rid of any form of opposition and i think the army wanted to block that process. the problem is it looks like something managed in the 1980s. they took over one of the main tv stations that no one watches. erdogan was able to speak to the public. it was very badly bungled and badly managed? >> would it have been different? he slipped through their fingers initially. >> there were reports they had f-16s with his plane in their sights. they could have shot him down. >> what happened? >> i don't know. >> there's a lot of people who believe he faked this. the fact that so many people could believe it, that he would be willing to kill several

hundred civilians just to make it look good. that's what you'd have to think. there are so many who believe that because he's grown so authoritarian. >> the question is did he actually, you know, plan this. i don't think so. it's a very complicated -- >> it's byzantine politics. >> the end result is the same. the last vestiges of secularism and institutions are probably gone. >> well, i mean he certainly has, you know, gotten rid of as many -- >> from here on out -- >> the interesting thing is there is an argument to be said that there's another group of islamists that he was initially in alliance with and they turned against each other. in fact, this other group, their leader lives in the united states. >> poconos. >> pennsylvania. >> this is surreal. hearing he lives in the poconos. >> it seems this alliance broke down. in the next few weeks he was

going to purge the military of these other islamists. they saw this coming and starting a cow against him. >> where do we go from here? what's going to happen next? >> first we have to deny the united states was involved in this in any way. he's trying to say because he lives here, this other leader, that the u.s. was part of this whole thing. we have to check his power and tell him not to overreach, tell him not to go overboard. >> and what kind of influence do we have at this point? >> well, john kerry made a few comments to that point a few moments ago, saying not to go too far. >> that's right. >> we haven't drawn any red lines yet. >> my question is what can we say? >> exactly. >> i mean the biggest influence in turkey is the european union. he's hurting. turk turkey's hurting. i was just in europe and there were no tourists going to turkey

at all. >> did you see how high up this went? there's this one piece. someone very close to him, so it once lower level. >> no, no. it wasn't a very high up thing, absolutely. >> doesn't he have more leverage over the eu than the eu has over him because he's the reason the migrants have stopped coming to europe. they give him 6 billion euros and he has put an end to that and supposedly is going to stop the movement of jihad its. they need him, right? that's the reason they reopened negotiations even though in theory, they don't qualify in many ways. >> that's right. i don't think they'll ever be allowed in, especially now, given what's happening. the bottom line as far as turkey's concerned, even though he's an authoritarian, it's better to deal with the democratically elected government than the military.

they don't want a military coup. the turks basically said, we don't like him but we don't want the military. >> it's amazing. it's different than here. because there were teenagers like confronting tanks after he asked the public -- i don't see our millennials getting that involved unless there were some pokemon people around in the place where the tanks were. all right, bernard. thanks. >> he's sticking with us for the hour. >> are you coming from somewhere or going somewhere? there's like -- >> you were going to be in the rnc. >> i was supposed to be in cleveland. >> there's six bags throughout. >> i know. >> where are you headed next? >> is it an entourage? >> it's not all going to cleveland. i was supposed to be in

cleveland. but since the turkey -- i text next stop is cleveland after the "power lunch." is that okay? >> yeah. >> i saw a lot of luggage. nice stuff. >> let's check on the market this morning, joe. futures suggested they would open higher by two. the s&p 500 by two. europe, show you what's going on across the pond. generally weaker. the ftse is higher by a third of a percent. germany, france, italy, spain, lower, but not by a whole lot. close to flat this morning. overnight in asia, nikkei was higher by two-thirds of a percent. the price of oil kept bumping up against 45. we're above it but down 10 cents this morning. $84 per barrel for delivery of august crude. $47.57 trading over in london. the ten-year, yield.

joseph, this has moved. look at this. holy smokes. 1.577. >> barely negative now. >> i know. the ten-year went positive if you went three points to the right of the decimal. germany's tenure was positive briefly on friday. >> it's surreal. >> it's absurd. it's crazy. >> almost came out from being negative. >> yep, yep. i'll show you what's going on with the dollar. it's weaker against the euro, stronger against the pen. the eurowill co will cost you a ten. and the praise of gold is unchanged. 13.27. there's been a drop, joseph. europe -- you're back close to your 13.10. >> you can get back in. >> it was 12.10. >> sorry. >> you could do bitcoin maybe. >> has it gotten cheaper? >> i think it's gotten cheaper.

>> if the end of the world is coming, you fundamentally -- >> you don't understand -- i wanted a make-believe. >> i could give you -- >> i don't want that. i don't want that. they're going to be down. i wouldn't buy utfs either. i can't show someone my paper and say, i got someone. i want something i can hold. i want a maple leaf. >> carry your iphone around. you can show your bitcoin. >> if there's no electricity -- andrew, andrew. you leave for two weeks. i thought you'd come back with some wisdom. >> very little. very lit >> but you did hit the ball far out. >> yes.

friday, three straight weeks for the nasdaq. we're going to try to understand whether the streak will continue. joining us is christina hooper. chris ruppky, musg. christina, i've seen two different things about this season that we're in, earnings season. one is that we finally come out of this weak period which is a weak session and i heard some say's going to be the fifth or sixth. which is it? >> our expectation is by the end o thf year, earnings are going to look better. it's just matter of time. >> is that the key to whether the market has legs? if we assume the multiple has no extension, if earnings go up year over year, you could see the market reflect that or at

least be -- have some type of underpinning rather than just cheap money from the banks. >> certainly. i mean fundamentals will help stock prices move up, but in the interim we've got something of a goldilocks period where the economy is improving. that seems clear through a lot of data points we even seen recently, but at the same time, there's a less of a chance that the fed's going to raise rates. that sets up a pretty nice environment for stocks to rise. at least u.s. stocks. >> chris, suddenly the economy seems like it's in one of the seasons of the -- of the calendar. this is a time every year when we say, hey, looks like the economy is going to get better, only to be disappointed in the first and second quarters of the next year. is this different? i mean how many years in a rojas it been?

>> every winter it comes off. you have to remember it comes off. >> you know junk science? >> oh, do i ever. >> we've got junk economics where people are looking at other indicators instead of the unemployment rates, you know, quite low right now. it's not 10%. it's 4.9%. people are fascinated by stats like how many people are on food stamps. the latest one is 45% of americans can't come up with $400 cash in the next two months. they have to sell something or borrow. i mean people look at those stats and say we're not doing so well. look at president -- president -- presidential candidate trump. he says i would not be getting these crowds if the unemployment rate -- >> how do you like that freudian slip? that was something special.

>> i have no political -- i'm not allowed to by management. >> so for trump, trump/pence, sounds like a currency. so we do have an end to the earnings recession this quarter or next quarter? >> i don't know. i mean it's kind of distressing to me. people are like, where's the earnings. you have heads of asset managers saying stocks can't continue to go up. it's like, no, don't say that. you're going to hurt my own portfolio. >> no, no. say that. because whenever you say it, it keeps going sn. >> it's 20. can it go to 24%? >> that's the s&p? >> i'm an economist. kind of fuzzy. it can move around. >> you can get higher multiples. >> i like to talk up the market.

anyway, if the p.e. went to 24, that would be another 2420-inch% higher. i mean we can't be overvalued yet, can we? >> with interest rates -- we've had this discussion. with interest rates so low -- >> i don't know. >> at this point we're not really sure the central bankers can really help that much anymore in terms of it. but we do think if they stay low, multiples can stay high. if we stay lower longer, than multiples are not at risk theoretically. >> theoretically, but we do have to worry about monetary policy exhaustion. >> that started three years ago, right? >> it seems like we're getting closer to the point of exhaustion and mario draghi the other day asking for some level of fiscal stimulus i think is emblematic of concerns of monetary policy exhaustion.

>> do they make you at alanz have a year end target. >> we do. >> what is it? >> 2,100. >> it's 2160. >> are you bearish? >> what our expectation for the year is and what we said all long is we expect pretty low muted returns. that's why we -- we also argue that risk assets -- investors need to be in risk assets. they just need to be thoughtful about them. >> you can't have it both ways. it's only july. >> she could be right. >> i know that. if you come back in november and

you're at 2250 and you have an s&p target of 2275, with feerng be suspicious. >> you can certainly be tough on me. i wouldn't be alone, but -- >> he's at 21 hund too. if i were in that business right now. >> maybe if we met today, that's how it would be. >> thanks, guys. appreciate it. when we come back, donald trump and mike pence getting ready to take center stage at the republican national stage in cleveland. but first we are live this date in history.

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an investigation under way after three law enforcement officers were killed and three injured after what was called an ambush. jay gray has the latest. jay. >> reporter: this is where it all unfolded. this car wash into the

convenience store. three officers killed, three injured. one still in critical condition said to be fighting for his life. we're told that the suspect here gavin eugene long was the lone gunman. they're looking to see whether others may have been involved to help him plan or carry out the attack here yesterday. we also know that investigators are looking very closely at a social media footprint which is expanding. we know hours before the attack long posted a cryptic message on social media saying just because you wake up every morning doesn't mean you're living and just because you shed your living body doesn't mean your dead. all of this part of a grizzly puzzle. an investigation that they say will take quite some time. >> thanks. jay gray in baton rouge.

now in cleveland. john harwood joins us. he's got more on what's going on. john. >> andrew, hours from now republicans are going to gather for the event in cleveland, home of the cleveland cavaliers. do so in an uneasy move. hillary clinton leads by five percentage points. donald trump is leading only in the south among regions. but donald trump is hoping for a boost by the unrest at home. he's running as the law and order candidate and saying he's going to be the candidate of border security at a time when we're battling isis overseas and trying to fight it. here's the candidate and his running mate on "60 minutes" last night. >> it doesn't necessarily give us the right to commit suicide as a country, okay?

i'll tell you this. call it whatever you want, change territories but there are territories and tear roar nations that we're not going to allow people to come into our country an we're going have extreme vetting. there's going to be extreme vetting. with gear doing have extreme vetting. 're going to come in and we're going to know where they came from and who they are. >> this map is awed with the american people and he is not intimidated by the world. donald trump, this good man, i believe will be a great president of the united states. >> of course, that was mike pence, the governor of indiana who trump rolled out as his running mate over the weekend. mike pence is someone they're policed with, social conservative. he needs to convince people at this convention americans more broad li that he is up to the job as commander in chief. that's what will give him the hope if he has a successful

convention. >> john, i saw you tweet. you retweet a lot. wow, you retweet a lot of things. i'm afraid to retweet anything and i won't do it. >> okay. >> but the one that got me was trump with noncollege educated men up 31, noncollege educated women up 14. college educated men up 12. college educated women down 14. >> that's not a retweet. i tweeted that. that's white voters. >> okay. does trump have a problem with women or does hillary have a problem with men? >> well, both are true. look. >> i don't read anything -- >> have you written a piece on hillary's problem with men? i've seen a lot on trump with

women. why aren't you writing that story? >> i've -- >> hillary's always has a problem. >> no, no. the democratic party has a problem with mem. the gender gap is between men's support for democrats and women's support for democrats and republicans do much better among men, democrats do better among women. that's two sides of the coin. the problem is now on net, if you lay it all out, he's behind. thal's why it's a problem for him. college educated women voters have been a republican group. among white educated voters, mitt romney won them by 14 percentage points in 2012. in our poll, hillary clinton is leading by one. okay. that is a challenge for donald trump. he's gone backward from where

mitt romney was. >> but he didn't have the noncollege educated men and women to the extent either. >> donald trump won white noncollege voters, men and women, by 62/36. that's a margin of 26 points. >> all right. donald trump -- that was romney. donald trump has a slightly larger margin, but that increase is exceeded by what he is losing on the other end. >> okay, john. we're going to leash it there. of course, we're going to be seeing a lot from you throughout the day and week. so thanks for joining us this morning. >> you bet. >> in the meantime, more to talk about this, steve mcmahon, co-founder and ceo of purple strategies. also right here, susan del perc percio, a veteran of rudy

giuliani good morping. >> good morning. >> you watched the clips. you say there was something -- how -- >> he'll give his speech on wednesday. after that it will be donald trump all the time. >> it doesn't matter what their relationship is like or what weather they have in certain cases conflicting views which seems to be indicated during that interview. >>. no. i should say we'll see pence a couple of other times, as a surrogate and in the debate. >> steve, we talk about unfavorables. terrible unfavorables for trump but for hillary clinton too.

that somehow this is going to be a breeze, it doesn't look like a breeze at all. am i right? >> it doesn't look like a parise if you look at the poll numbers. donald trump is underperforming mitt romney in almost every category and if you want to win and not lose, then you actually need to outperform mitt romney in almost all of the category. the other thing about these poll numbers, trump is stuck. hillary clinton is starting to climb again and structurally the race is probably a five- or six-point advantage. >> five or six points. that's like brexit. the margin of error is small. i wanted to ask you about this. on friday she had a meeting with elizabeth warren.

do you think there's more of a chance than there used to be and if so, more or less more? >> the first choice is whether they're going mack it a base election or whether they're going to run to the middle and try to run in the middle which is where most presidentials are won. there's an advantage to doing that because he unifies the party, but he's made it a base election. i don't think donald trump grows. hillary clinton also needs to go to the middle. if she chooses elisabeth warren, it becomes deviivisivdivisive. >> do you think he's abandoning the middle? >> no.

he's saying they're not getting job done for you. 78% in the polls say they want change. that's what donald trump brings. the other thing is he's taking a hit on bill clinton. >> hillary or bill. >> he's taking a hit. >> he was teflon before. >> that's one of the things. when they take bill's numbers, they can't take it to the base election. they can't use bill because his numbers are so bad. that's going to be a problematic. >> i apologize. i'm sure we're going to talk more about this in the next couple of weeks. >> thanks so much. coming up, eu and tensions

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the prime minister speaking about the death toll in the wake of what they say was a failed coup. profe

professor, i'm sorry for mispronouncing your name. we will talk about turkey, but i want to talk about nice. very much related. the passage of jihadi through turkey into europe. your assessment of nice and what it means. >> over the past year and a half, isis has been losing territory in iraq, syria, and more recently syria. the attacks we receive in brussels and france and now nice, it's a desperation of isis because of its loss of territory but yet wanting to remain relevant and remain in the news. >> so when the intuition, when you see an attack like this

because they're going after innocent civilians, children, et cetera, and they can create so much carnage so quickly, the intuition is, oh, they're getting more powerful, they're reaching more of us, therefore, they're more dangerous. >> it's always been dangerous in terms of lone wolf attacks. where you see an attack like this where a guy takes a truck and rams people, isis is telling its followers, do exactly that on the internet. originally when isis was strong, isis was saying, come here, fight with us, don't do the lone wolf stuff but since they've lost the territory, they're much more on the lone wolf attacks. >> in turkey, we've seen

president erdogan come out. the economy in turkey, though, suffering pretty sharply. we were watching the lira today. they could have a currency crisis. there could be issues. >> absolutely. we have 80 million people, a very dynamic population. but the politics and instability, the terror attacks has led to a lot of tourism, risks, and people are wondering, if erdogan doesn't get the country back in order, you know, it's a risky place, and don't invest there. >> i doubt he realizes how dependent he is on low interest rates around the world. because if not for that, he could have capital outflows. you're sticking with us for the hour, correct? >> yes. >> terrific. professor haykel.

carl case, known as chip case passed away this weekend after battling a long illness. he was the case of case-shiller. he was a professor. he was one of my professors. >> no way. >> yep. he is survived by his wife susan, daughter kristin, two grandchildren. h was so fun. he will be missed. >> you're sad. hly made in the japanese tradition, each batch is small. special. unique... every bowl blurring the line between food...and art. when you cook with incredible ingredients... you make incredible meals. fresh ingredients. step-by-step-recipes. delivered to your door. get your first two meals free blueapron.com/cook.

welcome back to "squawk box." the republican national convention is kicking off today and among the speakers, peter thiel, harold hamm, he's going to be joining us in the 8:00 hour and tom barrack. joining us now spending time all over the world with lots of ceos. how you do think about it in terms of sort of -- i know it's an unofficial poll. but if you were taking a ceo poll yourself among your

clients, where does everybody land? >> first they land with tremendous frustration in what's going on right now. the discourse from both extremes, right and left, is a source of frustration. i think probably for most, donald trump's views on diversity, on trade, and just the uncertainty associated with it is probably the bigger concern. >> do you spend any time in china? >> i'll be there in a couple of weeks. >> one of the fascinating things, if you look at the polls there, despite what you say, oddly enough, there seems to be a sense he's a negotiator. they leak negotiators. for better or worse, they think he's just fine. >> and they don't like hillary clinton. >> and they don't like hillary clinton. have you heard that before? >> i haven't, but i'll be there and i'll test the hypothesis. >> test the high poypothesis.

>> nobody knows where she's going to land. elizabeth warren, if that's the pick, i know there's people that don't think that will be the case, where what does that do in. >> i think business leaders are looking for more in the center than on the extremes right now. they're looking for pragmatic -- >> on the trump side? >> perhaps on some dimensions. i think on the diversity side of things, which has, of course, been one of the biggest areas of controversy, i think probably not. but i think -- that on the diversity side, elizabeth warren would be great for you. >> no. what i said was -- >> never mind. >> -- most ceos are looking for pragmatic focus on infrastructure, education, trade, and those elements. so i think that would be a very hard pick. >> can we talk about the implications of brexit? >> i was just coming back from london. >> one of the things that's

interesting, coming across the tape was the big headline, some of bank buying a.r.m. that had been briefly delayed in part by brexit. do you think that says anything about the health of brexit or do you put that as an idiosyncratic -- >> i wouldn't look at one deal. it's the massive concern. i hear it in virtual ly. it's a huge concern right now. >> sorry. you were just sort of make a chart, winners and losers. >> i think -- well, look. the biggest challenge is for everyone, the amount of uncertainty to work this through. i mean -- >> uk or for europe? >> uk particularly. uk. >> but to joe's point, how do you square the circle of the uk

being new highs? >> new highs -- >> in term os testify stockmarket. >> in poujds, which are 10% lower in dollars some of if you're going to measure it, the currency drops 10%. you measure in that currency. i don't think you can use that measure as basis for saying this isn't a source of concern. >> it's greatly exaggerated. i've notice thad since the brexit. what was supposed to happen according to the hundred experts that christine lagarde talked about it. >> i'm not arguing the demise of the uk. i think they'll come through this. i'm arguing this will be a drag for a while with a lot of uncertainty starting with the banks who don't know what environment they're going to be operating in and other businesses. what i've heard from uk government leaders is they're going to do whatever they can to provide assurance and tax issues. >> we've had six straight new highs. >> yeah, i don't think this is from the u.s. standpoint. >> okay. but that and the uk because it's

pounds, but even though we're at new highs here. >> no, no. my point is for the uk and for businesses trying to sort out, it's quite a lot of uncertainty in the months ahead and potentially the years ahead. once they trigger article 50, it could be a two-year negotiation process, and in that period, making sinvestment decisions, i becomes a scenario approach. >> rich, before you go, real quick, jamie dimon with the op-ed out last week raising the minimum wage. do you see this becoming a trend -- first of all, in the banking business and beyond before and after the regulation? is that what this is really about? >> i think it's a broader point, which is ceos are looking to take a stronger view of moving the economy forward and finding pragmatic solutions and pushing forward. we think in a ceo world where

politics have gotten so extreme and in many cases dysfunctional, ceos will take a stronger voice and it will be on topics of education and wages, which is what jay mie dimon and others he spoken to. they may need to play a more prominent role. >> rich, thanks for coming in. >> my pleasure. i will test your hypothesis in china. i'll be there in two weeks. fwrt. thank you. coming up, the battle of the box office. did the ghostbusters scare off the pests. find out next. 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

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the various different ways the state can be competitive. this is our tenth year for top states for businesses. it's hard numbers, not a survey. people get into this. it all takes off like a shot. we also let the winning state governor know about it. they are sworn to secrecy. america's top state for business, utah, we had donny osmond, which was terrific. it's about your money, your future, where you live, where that data turns into reality. welcome back to "squawk box." earnings news bank of america this monday morning. earnings per share $0.30 per share. revenues beating forecasts. we'll have more on b of a in a few minutes. that up. the reboot of "ghostbusters" couldn't scare its way to the top of the box office this

weekend. the comedy starred melissa mccarthy and kristen wiig. cost $144 to make, came in second place with $46 million. few had this much buzz. the animated secret life of pets, sorkin boys have now seen came in at the top. taking in another $50 million for a two-week total of $203 million. joe, at some point we're going to have to talk about the other big media story of the weekend. have you been watching kim kardashian, kanye west thing -- >> what happened? >> with your favorite singer. >> golf tournament. >> taylor, with taylor swift. >> what's happening? snapchat? >> apparently she took a voicemail, kim kardashian has a voicemail from her and they played it online. it shows one of them is lying

and they are posting all these things back and forth. this is a big business story. >> taylor has a ring apparently. >> what kind of ring. >> from what's his face. >> another situation. >> i want to know about the prenup. i do want to know about the prenup. does this guy have two nickels to rub together? >> looks like he should. he may be the next bond. >> maybe now. she made $170 million last year. >> no, the prenup -- it's the other way. >> like johnny depp, amber -- she made like $300,000 and he made $80 million. >> this is real business news. >> i don't follow that. henrik stenson, do you know any? >> i heard about that. >> 63, phil shot 65, his lowest round ever in the major, still finished three back. we'll do bank of america, they beat expectations by $0.03.

we'll do more at 7:00. the stock indicated unchanged. we want to thank our guest host for coming in this morning, princeton university of near eastern studies. >> thank you. >> thank you very much. appreciate you coming in to talk about all things geopolitical including turkey. coming up, one of our headliners in the morning, marc lasry, we'll get his read on the market, including opportunities opening up for brexit, not all gloom and doom. "squawk box" in a moment. but however loud the loudness gets. however many cheese puffs may fly. you're the driver. the one in control. stand firm. just wait. [click] and move only when you hear the click that says they're buckled in for the drive. never give up till they buckle up.

the dow riding a six-day winning streak into a new week of trading here but plenty for

the market to be worried about. a failed coup attempt in turkey, the ripple effects from last week's terror attack in france and a flood of earnings on tap here in state. we'll break it all down with marc lasry straight ahead. republican convention kicks off in cleveland. the day's theme, keeping america safe. this as the country moushs another deadly shooting of police officers. plus security planned for cleveland minutes away. stenson sets the record straight. the swede outshines phil mickelson at the british open as the second hour of "squawk box" begins right now. >> announcer: live from the beating heart of business, new york city, this is "squawk box." welcome back to "squawk box"

on cnbc. the futures at this hour first thing in the morning on the way in they were up about 40 and europe was up at that point. then europe got a little mixed, dow futures back off. there have been two or three pretty solid weeks for the bulls, especially post brexit, six straight highs, five or six straight closing highs on the s&p 500 and andrew, now fresh new record all-time highs that have never been seen before. we're really -- >> does that make any sense? >> new high is enough. doesn't have to be fresh. >> talking about language. >> ways new writers -- >> yes he is. >> tell you about corporate headlines and i'll try to watch my language this morning.

bank of america beating latest earnings, per share profits .03 above systems. also forecast this morning toymaker hasbro, $0.41. "frozen" dollars helped. chip designer arm holdings this morning. you wish you would have owned that on friday. it's been bought by softbank in a deal $32 billion in cash on holdings, a key supplier to apple, also samsung. if you're wondering why neither of them bought it, that's the reason. one owned it, the view was the other wouldn't sell their license there. by the way, they don't really make chips. people don't really understand arm. the brilliance of this business, it's an ip business. the chips ultimately get made by others. this does not bode well for

intel. there was a view intel might try to buy arm. intel has struggled to get into the mobile business. arm owns most of the patterns in this case. >> they could make a competing bid. >> they could but unlikely at this point. >> turkey still reeling from what the leadership said was a failed coup attempt that triggered violence and death in ankara friday night. yesterday a day of funerals for victims and authorities now arrested thousands of alleged coup supporters within the miller and judiciary system raising concerns that the leadership of the country, erdogan, is going to use this to increase his authoritarian power over the country. authorities say 30 turkish governors and more than 50 high-ranking civil servants have been removed from their post. an investigation under way this morning in louisiana and baton rouge after three livermore officers were killed, three more injured during what officials are calling an ambush. the alleged shooter, gavin long from kansas city, missouri, and

and to have no link to the baton rouge area whatsoever. officials confirmed long was a marine who had actually -- a vet who had served in iraq in 2008. we'll have more on this story in just a bit. okay. recent killing of police officers seting a tense atmosphere for the start of the republican national convention. eamon javers live. >> reporter: i've covered a lot of conventions and the security is as tight as i have ever seen. you can understand what happened in baton rouge over the weekend and dallas before that. all of the tension and angst this season provided on the campaign trail. all of that coming to cleveland now. they say they are ready for the onslaught starting today. take a look at some of the fundraising numbers, just what's being spent here. they have got a $50 million federal security grant. that's just part of the overall spending. of that $30 million for employees, $20 million for

equipment and $5,500 total officers are assigned to republican national convention security team. 10,000 extra handcuffs purchased and 1,000 beds cleared in local jails. take a look at some of the scenes yesterday around cleveland starting with some of these coast guard votes out on lake erie on the harbor side. they had boats on patrol, machine guns bristling, ready to defend from the water, the city here. u.s. military-style heavy machine guns being brought in in suburbans. the kind of machine guns you don't normally see at a political event, tripod mounted equipment. they are really ready for just about anything here. big police presence on the street. we've got gates up all around this convention center where i'm standing right now. it is going to be a very, very secure environment here, guys. we're hoping all goes well

through the week. >> all right, eamon, we certainly are -- so many parallel to 68, i hope they are not all parallel to 1968, eamon. >> we saw some protests beginning over the weekend but nothing major here on the streets so far. >> you were a glimmer in your mother's eye? >> i was not actually alive in 1968. >> you weren't even a glimmer. >> wasn't even a glimmer. >> maybe your father was starting a glimmer looking at your mother. i don't think -- >> i'm not even going to go there. my mother might be watching this program. >> eamon, did you see the moon landing at least? >> no, didn't see that either. my parents i think were in spain on their honeymoon during the moon landing. >> the supposed moon landing. joining us conspiracy theory -- joining us to talk markets, economy and more cnbc exclusive marc lasry, global investment firm avenue capital, has over $11 billion in assets under

management, also newly appointed board member of the big movie house weinstein. >> yes. >> that's all you need is more glitz in your life, more hollywood stars. >> so they show up at your parties, movie stars? >> no, actually, harvey lives next door. we got to know each other and then we started working together and giving advice and he asked me to join the board. >> so the world has been characterized as spinning out of control at this point. when that happens, is it better or worse for avenue capital, do you think? >> i think short-term it's a little bit worse and long-term it's very, very good. what you're doing as things get more difficult, you buy as everyone else sells. that makes it very hard. when you've got a lot of sellers

and very few buyers, prices go down. that's what we're seeing in europe right now. if you've got cash, cash is king. so it's actually a pretty difficult time in europe today. but for someone like us, we're able to take advantage of that. >> is it simplistic to look at what happened and say it almost looks like the uk, in terms of the ftse and other metrics, better in the pounds now, seemed like it fared better than the rest of the eu on this, maybe get out while the getting is good, first rat leave a sinking ship, goes down, right? >> i actually think it is better for the uk, because when you take a look at what's going on in europe, the rest of europe, there's going to be more issues. everybody is going to look at it and say, okay, should we now leave. they are doing a lot of business with the uk. >> how would you play that, marc? are you looking how to do that? if you were going to do that, would you assume someone else is going to leave?

is that your forecast, someone else leaves? this is a domino thing? >> i wouldn't be a buyer of the euro going forward, but i think it's going to take time. i'd rather be invested right now, if i'm going to be investing in europe, really sort of three or four regions, uk, germany, switzerland, nordic regions. i don't want to be -- >> the uk is still on your list? >> yes. from what we're doing, 15, 20%. >> that's a microcosm of the whole problem, the country weighed down by countries that probably shouldn't have been in the eu in the first place or didn't have the economic stability or debt gdp or any numbers in the eu, dependent have them. >> for someone like us you've got to invest in strong countries, countries with the best legal system. you're going to see us still investing in northern europe. >> you like the idea of investing in the uk. will be there be the perception

that certain areas are going to not do well, which creates opportunity for you? >> yeah. >> we just heard a guy say stuff is going to hit the fan over the next couple of years in the uk, so much uncertainty in the banks. that would create opportunity. >> it does. the uncertainty is what creates the opportunity. the fact nobody knows what's going on. so our view is things will be fine. it's going to get a little bit worse but you want to take advantage of that today when there's great uncertainty. >> everything has gotten much cheaper in the uk. >> it has. it's gotten cheaper. everybody nervous wants out. so you can take advantage of that fact. >> when you say it's going to get worse before it gets better what is the inflection point of getting worse and why aren't you waiting for that moment. >> you need to take advantage. >> now. >> if all of a sudden people realize it's only 5% worse, today the perception is it's going to get a lot worse, you heard that -- >> i know i saw you the night

before brexit. we both thought there was no way? >> yeah. i didn't think it was going to happen? >> were you positioned that way? >> for us in our fund we're about 30% invested, about 70% cash, so either one will be fine. we don't really go short or lock. long. we're not going to hedge the market on that. >> were you hanging out? where were you? >> doing charity. >> a good cause. >> no. we were raising money for a great cause. you think, that's what it was that night. >> okay. have you ever made an investment? >> no. that was part of the world spinning out of control. the news cycle is about 36 hours right now it seems like. >> look, we were surprised. i think everybody was surprised.

at the end of the day, part of the reason we're not investing in turkey is you want to invest in a region where the legal system is actually pretty strong and where you really don't have a lot -- you don't have a lot of worries. so i think if you're going to invest in turkey, you'd want to be an equity player. if you're right, you want to do extremely well. you don't want to be a debt player. for someone like us, we're going to stay in northern europe. >> we talked about sea island, my favorite place, obviously, probably still is your favorite place, is it not? >> uh-huh. >> i wish i could buy my favorite place sometime but i don't see that happening. a part of it maybe. you owned it for a while. you did harvest that investment with a great return obviously. >> yes. >> that's not indicative of your feeling overall about the specific situation. you're not selling other things? >> i think part of it we view the u.s. economy as doing fine. it will grow 1 or 2% a year. really what you're trying to do

is find specific investments that you think over time are going to work out when somebody has got to sell. there's always a problem. that's really what's going on. all you've got to do is wait, take your time. there's always somebody who has made a mistake or always a company overlevered. what we try to do is wait for those moments in time where we can invest. >> what about oil, do you have enough expertise there? >> i think last time i was on i thought it was one of the greatest opportunities. >> did you act on it? >> we did. i think it's worked out very well. we're continuing to invest in that space right now. >> how? equities? debt? >> debt. the vast majority of everything we do is debt. we're able to buy debt somewhere between $0.40 and $0.60 on the dollar. >> have you ended up inadvertently owned oil fields? >> no. we've on purpose bought energy companies.

when oil is at $25, there were a number of people who wanted to sell. we took advantage of that. >> you just said u.s. market growing 1 to 2% and that's just fine. is that fine? >> it's fine if you're a debt investor. it's not fine if you're an equity investor. if you're equity investor you need 2 to 3%. >> middle class america. >> the other thing i was going to ask, when you look at the unrest, what happens in turkey or nice or baton rouge or what's happening around the world, does any of that give you pause or you look at that and say that creates opportunity as an investor? it's terrible to say. >> it gives you a little pause. there's a lot more exogenous events around the world. you get surprised by everything going on. you'd rather have everything be more stable. so it does give you pause and you do wait. >> what is italian debt going for? do you look at it? >> it's really pretty low. we're not that focused on it,

mainly because the italian bank system has issues right now. >> resolved, three times your money -- leverage, make ten times your money. >> yes. >> or it can go the other way. you can short that. >> it's hard to analyze. it's much easier for us to analyze a specific company. to try to analyze a bank, what's leveraging a bank you have to be right. it creates too many issues. >> you look houcw many people g wiped out in greece, capitalized. >> it's not something we do. >> investing in coal, not quite as sunny. >> we're investing where you're not that eager to visit. >> which is counter to what -- you put italy and greece and some of those places where

tourism is just a given, if you just don't mess it up, the future should be so bright, but they messed it up. >> they borrowed so much money and structural issues. >> why do you have so much cash. >> because he's smart. >> 70% cash. sounds high. >> well, mainly because we had just raised the funds to take advantage of the opportunity. so as luck would have it, we ended up timing it pretty well. >> you meant of the money he does have. >> why does he have so much to cash and how quickly do you expect to put it to work. >> i think over the course of the next year. >> about politics, really necessarily -- i don't want to talk about things that might -- but when is the last time you spoke to secretary clinton. recently? >> probably a couple weeks ago. >> any fundraisers coming up? >> no.

i'm going to go to the convention. >> did she do a connie chung whis ter in your ear and tell you who the veep is going to be? >> confidentially yes. it's going to be you, joe, she's going out of the box. >> he recently posed with a picture with elizabeth warren. >> wouldn't you like to be vp? >> i would like to talk to her, sway her -- i think she's swayable. i want to get her back to -- >> the center. >> i think she'll get there. >> better hope so. >> i think she will be there. >> good to have you on. >> always a pleasure. thank you. coming up, a preview of the republican convention from both sides of the aisle. former presidential candidate howard dean and judd gregg will join us. henrik stenson outshines phil mickelson at the british open, also set records. details after the break.

"squawk box" will be right back. that's also true of a good car company. people have always bought cars. but we saw an opportunity in sharing cars. so we moved fast and launched car2go in 29 cities, all around the world. doing that required dozens of data centers, designed for speed and performance. we built our business on the ibm cloud. because that's what the ibm cloud is built for.

. sweden's own henrik stenson won 2016 british open. he did it in record fashion. it was a back and forth affair between mr. stenson and phil mickelson. he birdied five of the last holes to outlast phil who birdied two.

the record books, became the oldest first time major winner at the age of 40. he joined the 63 club by shooting 264 for the lowest score ever shot in a major and in each of his nine hole scores under par to cap it off. he became the first swede to ever win a golf major championship and both a couple of times. just topped it off. supposedly best ball striker. entire turrell never missed the center of his club. that's why you have these big drivers, right, sorkin? >> excuse me. >> is he speaking english. >> big driver matters. anyway, coming up, phil, 65, nobody backed off. you shoot 63 you're going to win, especially if you start the day up one. street's reaction bank of

america analyst after the break. take a look at the shares now. up fractionally.

coming up, what to expect this week from cleveland as the republican national convention kicks off. howard dean and judd gregg join us after the break to discuss. "squawk box" will be right back.

stories front and center, one economic report on the day's calendar. the national association of home builders is out with its monthly sentiment index for july. is that monthly? comes out every month. >> apparently. >> hence, monthly. congress think it will be unchanged from june when it came in at 60. notable earnings after the closing bell getting the latest numbers from ibm, yahoo! and netflix. we'll get a better idea how earning season will go. analysts don't appear hopeful. thomson reuters say it will likely fall 7% second quarter from a year ago. that will be the fourth straight quarter of declines. >> i'm not sure. >> we have marc lasry here. >> and he's staying.

>> we didn't say he's staying. the question i want to ask you, talking about bank of america just a little bit, now call you a private equity fund more than a hedge fund. dare i ask about markets in the u.s. which have been on a tear over the past weeks. does that make any sense to you and are you doing anything about it? >> no, doesn't really make that much sense. they are setting new records and ended up having something that just the fourth consecutive decline. i think everybody is a big surprise yet the market is going to tell us what's happening next year, supposed to be a little in advance. so for us i think that's all good simply because if you're a debt player you want the markets to be doing well. >> leading economic indicator. >> it is. >> do you say to your self, okay, maybe things are better than we thought they are or this is crazy, things will come down again. >> i think we look at it and are surprised by it.

maybe the economy does grow a little larger than we thought. if it does, it's great. ultimately what you would love to have is 2 to 3% growth. i think the markets are telling you you're going to have that growth. >> you see it as a forecasting or discounting mechanism. >> yes. >> we were all surprised talking about bank of mechanic's earnings, which are better than expected, frankly on relative basis year to year obviously down. are you surprised the stock hasn't moved more? >> i am. i'm surprised somebody beats us by 10 or 20%, you would assume positive for the stock, not that it remains unchanged. >> is that a function of a little bit of whispering. >> i think definitely a function of whether the street says you better beat your estimates but you didn't beat them by enough. seems everything is an expectation game. >> we spent a lot of time talking about turkey, europe, are you making investments in the u.s. right now. >> sneh, we are. >> what are you doing? >> much more in oil services and in special situations.

>> special situations defined as in this in stance? >> just companies in trouble. you've got a number of large cap companies going through either a bankruptcy or restructuring so we end up buying that debt. >> profits of bank of america, $0.33, but $0.45 last year so a 20% drop in earnings. >> it is, but the stock has already gone down because of that. >> we have people that argue both sides. who cares about -- i think somebody, remember, who cares about beating expectations. >> down from last year. >> right. >> so i mean, you know, revenue, i don't know how revenue was. it is very strange you can't ever before hand know how a stock is going to react. there are smart people who follow it closely that might see something in the fine print that got there from a lower tax rate. who knows? >> marc, you're mentioning special situations. can you name a name? >> sure. i mean, you know, i think

caesar's is one. when you take a look at caesars, we've been buying that debt. you're sort of following the bankruptcy, restructuring, everything that's going on. that would be one. another one would be puerto rico. those types of investments. >> do you think puerto rico is going to come back? what's the gamble there? >> they own what we own. i've been told i'm not supposed to go into specific detail so i apologize. i think that will be fine because of the price we bought it at. >> did your boss tell you that? >> no, i think the lawyers. >> i thought it was your sister. >> no, i think it's the lawyers. >> frustrated with the way puerto rico would like to do this massive restructuring, put it in a pile where a lot of bond holders said you can't restructure the water company the same way you structure this, that, the other. a greek diner of debt, so many different things. >> let me ask you a political

thing, artistic discussion. caesars, top name. almighty caesars, even in the casino business, big problems. you've had opportunities with bankruptcies in the past as well, too. so when you hear hillary or the left talk about trump's mixed business record with bankruptcies, he says everyone knows how to do this. you've got 500 different businesses, four go bankrupt, one in atlantic city, that that's just business as usual. there's some truth to that, isn't there? >> i think he simplifies things quite a bit. i think it's far, far more complicated than it really ends up being, but it's not as simple as you put a bunch of people out of business with your reckless -- risk/reward in any business, there's no reward -- there's always potential a business will fail, that doesn't mean you shouldn't start the business 100%. >> you've got to sort of go for it. >> how do you measure -- let's do it this way, since you own

caesar's. how would you look at the management of caesar's, looking at what's happened there and what happened in atlantic city for trump, trump specific businesses. >> i think it's a little different. i think with trump businesses, ac is an industry going down. i think you got caught a bit in a situation that no matter what there was less and less -- >> the city made some bad -- >> the question, are we supposed to sympathize with trump in atlantic city and say, look, the head winds there are too great. or are we supposed to say operationally there was a problem there different fundamentally than elsewhere? >> look, i think it's a mixture of both over there. but i think the head winds in ac were pretty big. >> romney, our friend bill said his business was stellar.

at the time even newt gingrich was saying he outsourced jobs. whoever, there's going to be a target on all ends. >> the meantime we should say it's the week of trump, kicking off republican national convention. we're just one week out from the democratic national convention where hillary clinton is taking center stage. joining us now this morning to take a look at what's ahead u.s. senator judd gregg, also served as governor of new hampshire and former vermont governor howard dean, also served as dnc chairman. good morning to you both. i want to hear first about the pence deciding, senator gregg. you endorse that? >> yes. i think mike is a good guy doing well in congress. i was in the senate when he was in the house. he was leader in the house. very solid, thoughtful individual, has done a good job in indiana, fiscally conservative, committed to giving people the opportunity to

create jobs. >> does he drag trump to the center in some way, or do you think -- does he disappear from the scene? what influence does he have on this campaign? >> i think he'll be a person people will look to as the quality individual who could succeed in the presidency. that's what you want for vice president. moving trump to the center, trump is not that far off the center if you're honest about it. he comes on a lot of different issues, a lot of different directions the i don't think you could pigeonhole him to be far left, far right. he has opinions on the issues and very vary across the spectrum. >> do you think expect hillary to come out with vp pick this week and try to jump on what's going on in cleveland? >> i don't think so. i think the smart thing to do is to do it after the convention is over. it's unlikely you're going to

upstage the republican national convention with vp pick and we want the vp pick to have maximum exposure. my guess is it's either over the weekend or early in the convention week next week. >> will it be howard dean? >> no, it definitely won't be howard dean. you know, there's a lot of good people she can choose from. i lobbied for somebody under 50. i think it's time we turn the country over to the next generation, but that's not going to happen this election but i think we can prepare for the future. again, there are a lot of really good candidates. a lot of them are over 50. she has a terrific team working on this. i think whoever she picks will be fine. >> do you want to name names? >> no. >> any chance it's still elizabeth warren? >> i'll tell you the tea leaves -- here are the tea leaves on this, which are so interesting. so the speaker's list was released sometime this week, and it had a lot of the vice presidential candidates --

potential vice presidential candidates on it. two people who were not on it were tim kaine and elizabeth warren, which means they haven't been given speaker slots because they may be saved for a much bigger speaker slot on wednesday. basically who the hell knows but it is interesting playing the tea leaves game. >> does it matter trumped and pence seem to disagree historically on so many issues? >> i actually think it's constructive because it shows trump is willing to listen to other viewpoints. from my standpoint it's a big plus he's got somebody standing beside him with a different viewpoint on trade and a variety of issues. that's helpful i think. >> from consistency perspective, did you witch the "60 minutes" piece last night? >> i didn't see that. >> it was interesting to see them side by side trying to agree on issues they ultimately disagreed on. >> well, i'm sure that's going to be the case throughout their career as he becomes president.

>> have we seen this historically? not that there's anything not historical about this situation. >> it's safe to say john kennedy and lyndon johnson didn't have a whole lot in common on a lot of different issues, if you want to pick a duo where you had two strong personalities that came from different directions. >> gentlemen, we've got to leave it there. we appreciate both your time, senator gregg and governor dean, i'm sure we'll talk to both of you during the week as these things take place. france under state of emergency after last week's deadly attacks. turkey's government vowing a crackdown on those behind the attempted coup. what should america's response be in both cases? we'll talk terror. top of the howard billionaire harold hamm will join us from cleveland. he's speaking at this weeked republican convention. "squawk box" will be right back.

france remains national state of emergency following deadly terror attack in nice. in turkey about 6,000 people have now been arrested following friday's failed coup attempt. turkey's president erdogan has

vowed to cleanse the state of the virus that he says caused the revolt. for more let's bring in former nato ally commander, fletcher school of law at tufts university, also on the short list of potential running mates for hillary clinton. admiral, thanks for joining us. >> what a pleasure to be on "squawk box." >> do you want the job? >> look, my basic here are that a name like stavridis is too long to fit on a bumper sticker. beyond that i think you ought to check with the clinton campaign. >> turkey, what do you make of it and how should the u.s. react diplomatically. >> let's break those numbers down a second. you're a numbers show. 6,000 people rounded up, put that on population adjusted basis, that's a day in the united states for 25,000 judges, prosecutors, and senior military

are rounded up, put under arrest. it's unmabimaginable. i don't see that because i'm an admiral but 200 have been arrested. that's 60% of the officers in turkey. >> going too far? >> it's obviously too far, starting to be reminiscent of french revolution or casablanca, round up the usual suspects and a few more. the problem is it's going to make turkey dysfunctional both in terms of the syrian problems, the islamic state, and also in negotiation and alignment with the european union. it's an enormous problem. >> andrew sorkin, help us understand from a u.s. perspective, what is it we can do and do we have any influence on what's happening there? >> andrew, i think we do have a fair amount of influence still, although that's been degraded over the last, say, eight to ten years. what we can do is send our

senior military over to work with the remaining senator turkish military. secretary kerry should visit soon. we should be supportive of turkey where we can but we have to confront where we must in terms of what increasingly is going to look like the roundup of suspects, violations of human rights, bringing back the death penalty. we need to call them on it. i think the carrot we can put with this is their engagement with nato, the security issues they face, and a general economic kind of alignment with us. >> it's an increasing problem we see in the world, admiral. somebody gets elected and they use their election, the democracy to justify dismantling democracy. latin america has gotten very familiar with it with hugo chavez, created the model. what do you do when this happened. the u.s., foreign policy, we support democracy. the boilerplate statement that

came out over the weekend was we, of course, support the democratically elected government, except that it acts every day less democratic. yeah. you know who has written about this very powerfully, fareed zakaria, distinction between democracy and liberty. there's a narrative we need to seize upon. democracy is necessary but it's not sufficient. you have to add to it liberty, freedom of speech, freedom of religion, freedom of expression, freedom of assembly, all the things we cherish here that europe generally cher issuishes. i think the way to approach it use international system as effectively as we can, use economic levers, sanctions. we don't use military side, that's the hard power side. we need to use the soft power side combining those two into smart power. we have to make that distinction. >> when you watched this unfold

friday night, what were you thinking? in retrospect, a lot of people said this was a pretty ham handed coup, so weak in certain circumstances that twitter is filled with this idea perhaps it was actually created by erdogan to actually cement his position, which speaks to what people think about his ability to be machiavellian? >> i think as always with international relations, if you're given a choice of describing events as a result of some extremely clever machiavellian scheme or a series of ham handed defeats, always go with number two. i don't think erdogan is that clever. i think he, however, is an opportunist and will seize this opportunity in the spirit of adopt let a good crisis go to wast -- don't let a good crisis go to waste. as i look at senior turkish

officials, i have no doubt a coup, beer pooch as opposed to geopolitical shift. erdogan will take full advantage of it. >> talk about that moment where he says there were fighter jets in the air escorting or near his plane. that could have gone -- shot him down and that would have been a cataclysmic event. >> absolutely. if you really want to know the answer to erdogan behind this, look at his body language, the way he's speaking. he was a man that felt his life deeply, deeply threatened. i have no doubt of that. i have the unfortunate feeling he's going to go after everybody of that's going to be a dark period for turkey's military, dark period for judiciary. the only winner in this whole thing is the so-called islamic state because turkey will become very distract freddie those problems. >> sir, i think you'd be a great vp, admiral.

>> got to work on that bumper sticker. >> thanks for being with us. >> thanks a lot. >> when we return, stocks to watch, including bank of america which just reported earlier this morning. we'll tell you about those earnings. two speakers at the republican national conversation harold hamm, charlie and ceo of continental resources and senator john barrasso will join us, senate republican policy committee. we'll hear from both of them when "squawk" returns. you'

marc lasry continues here. someone wrote in and wanted me to ask about carried interest. we've talked to you about that before, haven't we? >> yes. >> you're okay if that goes away. >> i have no problem with it going away. the issues tax capital gains ordinary income. i think at the end of the day if it's ordinary income it's fine. >> we talked about whether -- is there something called bfo -- would that be best friend of bill or just friends of bill. you remember he moved to the center after the mid materials and second term. you know them well. you seem to have the feeling that govern from the center if she becomes president. if she didn't, if she governed from where bernie sanders is,

would that be okay with you as a businessman? >> i was never a supporter of bernie sanders. i don't think i could support bernie. but again, i've got the highest confidence hillary will end up doing the right thing. >> so if she did -- so a lot of people say that. they see this platform, the rhetoric, and they say oh, yeah. in campaign mode. >> can we do this? >> yes, you may. apologize to him. >> i'm sorry, deputy prime minister of turkey on the phone. >> far more important. >> after the leadership called the failed coup on friday night, triggering violence and death in istanbul, funerals held for victims, authorities arrested thousands of coup supporters with systems. authorities say 30 governors and high-ranking civil servants

removed from the post. joining us on the phone, mehmet simsek, deputy finance minister. thank you so much for joining us before the market opens. the lira recovered somewhat but there's a lot of questions about turkey's fox stability in the wake of what happened over the weekend. what would you say to markets this morning before they open in the united states? >> good morning. yes, we had an extraordinary night on friday. it was like a nightmare, an awful dream. it is behind us we're back to some sort of normalcy quickly. domestic markets function pretty efficiently. we are here and taking all the measures necessary. as far as the fallout from these failed coup attempt is concerned, would argue that turkish democracy is probably

much stronger than it was. certainly there's room for domestic reconciliation as all political parties have rallied against the attempted coup. >> sir. >> yes. >> former supreme commander of nato joined us as a guest. he's very concerned that the level of arrests suggest president erdogan is going too far rounding up suspects an it raises questions about whether or not there's truly freedom there, even though you've had an election. >> well, let's put it this way. those who attempted the coup -- tried to basically de-seat or butcher turkish democracy and get rid of a legitimately elected government, they had a

massive list of post-coup appointments from all-pro convenience -- these are people with mid-ranging, some ranking of generals. so clearly if this event had happened anywhere else, there would be obviously -- turkey is a rule of law country. they have to face the full force of the justice. so judiciary will decide what happens next. but i think both politically and economically, the fallout is likely to be relatively short. >> sir? >> yeah. >> the central bank does not appear to be independent. are they going to have the ability to do what it takes if you suffer outflows in the face of more stability? >> well, central bank in the

past despite those concerns you've raised have done whatever is necessary in the past. when they needed to raise rates they did. when they needed to intervene, they did. i think this time around it will be different. it is true we're going through an extraordinary period. and of course we have to let markets to adjust but we're watching very closely. >> deputy prime minister mehmet simsek, thank you so much for joining us. we really appreciate you calling in. >> marc, we want to thank you for sticking around this hour. we appreciate it. we didn't get a chance to talk at the end. we'll have you back soon. in the meantime take a look at futures. looking at things, switch it there. dow open up about 28 points higher, s&p 500 up bochlt how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road,

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. a resilient rally, stocks climbing despite a failed coup in turkey, terror in france and political uncertainty here at home. >> cleveland set for donald trump show. the republican national convention kicks off today. the big event fueling concerns about security and party unity. we'll talk to trump backer and

billionaire hamm. >> apple holdings $32 billion. monday july 18th. the final hour of "squawk box" begins right now. >> announcer: live from the most powerful city in new york, this is "squawk box." welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen with andrew sorkin and michelle caruso-cabrera. stocks higher, up 29 on the dow, up 4 on the s&p nasdaq, european equities this hour were positive then in the red. now they are flat for the most part. capital believe it's july 18th. see that and it seems like a mistake. isn't it? i love summer. slow down. >> news cycle is not slowing down. >> the world is spinning too

quickly. >> do you know how hot it's going to be today? >> great. >> how hot will it be? >> 97 or 98 degrees. >> mr. weather man, you don't have a joke on that. >> how hot is it? >> is it humid, too. >> some of the language that's used in "good morning, vietnam" is unacceptable on the show. >> dan rather would have one for how hot? >> he had a few. >> he's more nervous than a long tailed cat in a room full of rocking chairs. >> rolex. >> do they do that anymore? >> i don't know. >> rent has gotten a lot more expensive in times square. among today's top stories, uk buys chip designer. >> hotter than a laredo parking lot when we had him on. those were two. you should have had those ready.

>> yes. >> japan's softbank buying chip designer arm for $32 million located in uk. the all cash deal approved by both companies boards. we had them on and they were talking about how everything had gotten cheaper and they were trying to take advantage of the decline in currency. in turkey thousands arrested as co-conspirators. an investigation under way after three police officers killed, three more injured after what officials are calling an ambush. officials say the official was a marine sergeant who served in iraq and had no known ties to extremist groups. >> switching back to wall street. bank of america beating estimates. dropped from a year ago low

interest rates continued to attack the bottom line. long lost judgment that is really what's taking place. quarter over quarter, mostly analysts saying strong because operating businesses up. net net pretty good. meantime republican national convention kicking off in cleveland today. joining us now to talk about it. founder of continental research, he'll be talking -- taking the stage to talk at the convention later this week. good morning to you, harold. give us a little preview. i assume you're still working on a little of the speech but what do you want to say? >> well, i'm glad to be here. thank you, andrew. i see a couple things going on that perhaps a lot of people haven't seen up to this point. we've seen about 1400 point rally recently. i think you could, you know, say that's a trump rally, people across the world seeing the possibility of donald trump

being president. this is a big thing that's inspiring people to put money in america instead of germany or other places where we have a lot of things going on. this is the safest place, believe it or not in the world. it's an investment point for a lot of people, trump rally. >> i appreciate the point you're making. let me put a couple of other points on the board to talk about it. one, brexit, a lot of money out of europe, a lot elsewhere looking for safe haven. you could argue that is the u.s. the second piece is there's an argument to be made the better the stock market is and better economy is, we did have jobs numbers, the tougher it is for the trump campaign. am i wrong? >> well, you know, jobs -- it's all about jobs. i think the promise of jobs and less regulation on business, i think that's what everybody is looking to. so the biggest job creator is

going to be donald trump. and so that's what turned this market around. >> put it on the market -- put trump and the market together. it's an interesting point i'm not going to take away from you, just some other factors that might be at play. >> kind of rich saying brexit is going to be a positive for u.s. stock market because that's kind of not what you were thinking before. >> not what i was thinking before. i'm just suggesting there's a lot of things that have happened in the world over the past two weeks that have nothing, i would argue, have very little to do with trump. to suggest trump rally, trying to take the other side, or a piece of it. harold hamm, help us on this, your take on pence and the fact his views on a lot of issues are very, very different than donald trump's. >> i think mike pence is a great addition to this ticket. he brings a lot of soleariidario

the party, certainly uniting. we have a lot of division in the country today. you can call it the washington disconnect and everything that's doing on. you talk about brexit, you know, i think that's the root of a lot of problems around the world. islamic terrorism that's gone on, particularly in europe, you know. need to control the borders, need to know who is here in america, who is coming into america. the immigration policy that's been outlined by this party is tremendous. i think mike pence is a great addition to the ticket. >> were you advised by the ticket? did you know anybody in the uk voting to leave? >> i thought there was a hand full, maybe more, that was in the very close running for the slot. but i don't think anybody could have picked anybody better.

i think mike pence is just the greatest pick that donald could have made and it's going to help the party tremendously. it's a great unifying factor. >> the other thing we wanted to talk about was crude and the price and where you think things are headed given what the price is right now, i think the last time we had you on, you thought it was going to go higher. are you still expecting it to go higher? >> we look at the supply and demand fundamentals. that's what guides us. we don't chase prices up or down. you know, you have to look at the broad picture of supply and demand and base fundamentals and that's what we tend to look at. yes, it will go higher. demand is back where we thought it would be, 1.3 million barrels. new oil demand this year 2016 right on track to get there. we still see falling production.

it's heading toward -- i said 60 by year end. might have been a little bit conservative. i think still there in that camp. we fell back a little bit, had to do with basically too much product refined. refiners wanted to refine cheap product. they saw that oil price going higher. they took more inventory in than they needed and refined some more product than was called for. >> we've seen a couple of present day victory laps about whatever the economy, stock market, jobs, but also about low gas prices, which a lot of people thought that was a little bit rich in taking credit for lower oil, because most people in the business have said that what has happened has been in spite of the obama administration and not because of the obama administration. if you did get -- let's say trump was friendlier to the

industry, offshore drilling and public plans and everything else, would we want even more supply coming on extreme from this country? you could be talking about oil going back down to tesla lows and go even lower, i mean, would you actually want a chief executive, commander in chief that was actually more friendly to the oil industry? >> absolutely. you know, we've suffered death by 1,000 cuts we've called it. overregulation, particularly in this industry, designed to put us out of business. that's what we've endured for the past eight years, seven plus years. so that's what we've endured. and you know, it's been a tough deal out there, as we all know in this business. >> joe's point is that if there were less regulation, there would be more oil produced in the united states at a time when there teams to be plenty if the world and it could hurt prices.

you're willing to accept that tradeoff? >> yes, that's a good point. sure. we need federal lands opened up for exploration in the future. we're going to need this oil coming to america for national security reasons. we've done a great job, your gasoline down to $2. it's been a great job this supply that's been brought on by independent oil and gas producers. we've done a tremendous job. we will need this production in the future, certainly will. >> all right, harold. appreciate your time today. we'll be looking forward to your speech at the convention. >> yes. >> just go for it. just kidding around a little. larry fink last week said nothing justifies these stock prices trading at highs, this high.

i don't think that he was considering that the possibility -- >> i've never heard of this before. >> listen, there's a lot of people looking at this thing. >> breaking new ground on "squawk box." >> earnings don't just -- it seems very hard to explain, unless, perhaps harold could be onto something here, sorkin. just put it in the back of your quiver. >> in your column tomorrow. >> trump rally. >> trump rally. i'm going to have to sleep on that one. >> could not explain it. >> he also dependent know anybody -- colleagues. >> stock prices great on the brexit thing, before and after they were great. >> among today's stocks to watch, bank of america, just off a call with the company joining

us with the highlights, kaley. >> interest rate again in focus, bank of marc reporting income interest it makes off yields, that actually went down. it went up but below what analysts expected. cfo was talking about there are real tradeoff, longer dated secures brings security risks to the country so margins could be under pressure for the near future because of that. some upside to the quarter. the bond trading revenues, up 22%. narcotics really seeing a lot of volatility, a lot of trading activity on the back of that brexit vote which you guys were just talking about. he said june 24th was actually the biggest day, busiest days for equities trading since the financial crisis, despite revenues down 8% because they had such a strong second quarter last year. he said too early to make a call about london operations bank of america after brexit vote and the vote itself has no impact currently on how the bank is

operating. quickly i want to close with comments about the u.s. economy. he said expansion for business and consumer spending is still ongoing here. the bank is focused on prime and super prime borrowers but looking at weakness, companies, energies, watching for credit risk there. he does say u.s. is very strong and the recovery is still ongoing. guys, back to you. >> okay. kayla, thank you. we're going to have much more from cleveland still to come this morning. republican national convention is getting under way. we're going to talk to co-chair of the convention platform economy senator john barrasso. you are watching cnbc, first in business worldwide. ♪ ♪ for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities that traditional assets can't. and even though they're called alternatives,

they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20. hey kevin. hey, fancy seeing you here. uh, i live right over there actually. you've been to my place. no, i wasn't...oh look, you dropped something. it's your resume with a 20 dollar bill taped to it. that's weird. you want to work for ge too. hahaha, what? well we're always looking for developers who are up for big world changing challenges like making planes, trains and hospitals run better. why don't you check your new watch and tell me what time i should be there.

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rnc against in cleveland. committee will present the platform or full committee for a vote. senator john barrasso is chairing convention platform committee. he met with donald trump and strongly urged him to support the final platform, senator. good morning. it's good to see you. >> thanks for having me, joe. >> we've heard the platform on both sides, it's kind of, i guess, a wish list. we understand the process. but you know, on both sides you

wonder, being totally serious, you wonder how much will be proposed much less get done over the next four years. >> a lot is going to get done. we're focusing on jobs, the economy and national security. that's our focus. we know we need to fundamentally change the direction of the country and take it in a direction that helps put people back to work. it's an optimistic document, attract others to vote for it. the whole key is to win the election. we cannot afford in this country to have the next four years be like the last eight years. they have been terrible. this is what we're doing, focusing on the future. it's a statement, basically, of our views, vision and hope for the future for a successful america, which is a strong and safe america. >> senator in terms of the convention itself, i was laughing about a "washington post" front page lead story last week that the democrats really have a glitzy roster coming up.

they have got a president, a vice president, a first lady. actually somehow they got a former president showing up. i don't know how -- what strings they had to pull him in but it's very glitzy, glitzy, glitzy. of course the democrats are in power and we're talking about the sitting president, his wife, joe biden and then the candidate's husband. but on the other side, it does make the pointish senator, there's only a couple of republican presidents alive, the two bushes, nets one is coming at this point. it's weird kasich, governor of ohio in achieved is not showing up at the convention. that is kind of bizarre, is it not? >> i'm not sure what the entire speaker list looks like for the republican convention but the list you come up with for democrats is a list of failure. take a look where we've come in

the last eight years, this is an economy that continue to struggle. our friends around the world no longer trust us. our enemies don't fear us. we're in worse shape. jimmy carter said it best, he can't think of any place in the world where united states had better relations with people than they did when barack obama came to power. you see what's happening with national security, what's happening with security overall, with isis. who brought us isis, it's that whole group that's going to be speaking at the democratic convention. >> i think joe's question speaks to what, we have to admit, divisions in the republican party. even the way we introduced you, you met with donald trump, strongly urged him to support the final platform. i don't think that would have been a question in times past. do you have any doubts that donald trump will support the platform? >> i've asked him to embrace it, i believe he will. there's probably no presidential candidate of either ticket through the years who completely supported everything in the platform. the platform is 112 people to

come together, two from each state as well as territories to craft a document that talks about our vision for the future, our views, values as republicans. it's a very conservative document focused on jobs, the economy, and national security. i think we're strongest when we talk about the things that unite us. those are things that unite all of us and donald trump is ready to lead that charge. with the republican senate and house, we'll make sure we put those things on his desk. >> i'm sure you're aware mainstream media has gotten on this uponography as health care, trying to raise social issues to the top again. was that a misstatement? you talk about all those issues, yet the focus on the platform inevitably goes to the social issues? >> the media can pull out a line here or a line there. the great majority of this platform is about a strong, prosperous, successful america with a strong and healthy economy, getting people back to work, changing the fundamental

direction that barack obama has taken this country and where two-thirds of the company think it's heading in the wrong direction and i agree with him. where our heck has been hija-- has been hijacked to a system too complicated. we know what american people want because we listen to them. that's why platform committee had 112 people representing all the states and territories. this is grassroots platform as opposed to democrats who had 15 people meeting behind closed doors. >> senator, i will be the mainstream media i suspect with this question. do you believe donald trump will stick to whatever commitments he makes about this particular platform? >> i don't know any presidential candidate does that. they do what they need to do in the moment. i believe donald trump is absolutely united with this platform on jobs, national security, health care. we talk about security, you just had harold hamm on, this is a lot about energy security, too,

which is part of our economic security. say that again? >> donald is anything but predictable. he'll make a deal with you today and make another deal tomorrow? >> he's fundamentally focused on making america grow again as he makes america great again. this is a platform to grot economy. you read the democrat's platform. it's about redistribution of wealth. they are much more concerned about income inequality than they are about economic growth. it's almost a misguided obsession they have in terms of taking away the right to work law. they want to remove that. they want to empower more bureaucrats. it's much more liberal than either barack obama or bill clinton has ever done. hillary clinton on energy said she's going to put coal miners out of work. it's not just about coal but construction workers, engineers, welders, many jobs related to the energy industry. >> all right, senator. i just you had more hollywood

stars. those are the people that i look to for guidance on all things political. >> this is a convention of substance, joe. you should love it. >> where is george clooney or tim robbins or babs. those are people i listen to. senator, thank you. >> thanks, joe. thank you. >> touche. coming up -- there you go, joe. scary opening weekend for "ghostbusters" reboot will we'll tell you why those numbers from the box office right after the break. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line. what's in your wallet?

announcer: when they test you, stand firm and move only when you hear the seatbelt click that says they're buckled in for the drive. never give up till they buckle up.

coming up bank of america beats the streets with results. reaction next. plus instability in turkey. thousands arrested after deadly coup attempt. talk about u.s. relations with the key ally next. ♪ ♪ for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities that traditional assets can't. and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20.

welcome back to "squawk box." bank of america beating top and bottom lines with latest results. profit did fall from a year ago. low interest rates and provisions continue to impact bottom line. hasbro recorded quarterly profit $0.02 a share revenues above forecast with hasbro seeing strong sales of "frozen"-themed dolls and "star wars" action figures. coach was upgraded.

not the tv show. >> leather goods. >> easy. >> aspirational luxury. >> what? >> i'm thinking of luxury leather goods. >> they can be luxury. >> wow, collars and stuff. >> upgraded. >> my. >> i don't think they sell spike collars there. >> please. >> outperformed neutral, based on stronger sales trends for the handbag maker. >> family program. >> it's for your dog. >> hawaii-based utility. >> i bet you they make a leash. >> hawaiian electric has ended its deal to be bought by nextera energy. this after he rejected the deal for not being in the state's interest. >> i want you to know coach does make a dog leash. >> i didn't know that. >> they make a pink one, too.

>> that would be the default color. animated secret life of pets winning box office for second straight week. taking in $50 million for two-week total of $203 million dollars. in second place reboot of "ghostbusters," comedy starring melissa mccarthy and kristen wiig brought in $46 million. it costs $144 million to make. >> $78 for pink dog collar leash. you have several dogs. >> i do. we have one female. weighs about 110 pounds. >> joe would want an armais dog leash. >> big in france. a little elon musk news space ex launching critical cargo including docking port to international space station this morning allowing commercial space ships to ferry astronauts.

also able falcon 9 booster rocket back at the launch site at cape canaveral in florida. space ex is owned by elon musk, developing rockets to be reused, potentially slashing launch costs hugely. no word whether space ex can emerge with a tesla in the end. >> no-brainer. eu foreign ministers gathering in brussels amid political tensions. they are urging erdogan to use restraint after coup attempt. erdogan vowing to cleanse the virus that started the revolt. ambassador, good to have you here. >> thank you. good to be here. >> we had supreme commander on, he thinks the arrests, thousands and thousands and thousands of them, he thinks erdogan is going too far?

>> i would agree we're seeing the beginning of a more substantial crackdown rather than the end of it. it is reasonable for the president of a country to arrest the coup plotters and reestablish order, but we've seen now in excess of 6,000 arrests. we've seen dismissals of judges, police, people from the armed forces. it appears to be this is erdogan taking advantage of the fact of this coup to then go even further in his establishing very, very authoritarian rule. >> do we have any leverage over him? i feel like we need him to help stop the movement of jihadists coming out of syria. eu made a deal with him so that way they don't have more migrants flooding into europe. who has the upper hand here? >> well, i think we should have some leverage with turkey. but the fact is, as you say, we don't. the reason is because we have not been engaged over the past several years in helping turkey deal with some of its strategic concerns in the region in ways they care about.

we've had our own interest. we've been fighting isis in syria, for example, worried about refugees. turkey had some of its own interests. if we had been investing in those relationships over the past few years, we'd be in a better position with erdogan now. the reality is those relationships have already broken down and he's feeling very isolated, very strong right now inside the country and he's just going to move ahead. we don't have a whole lot of leverage over putting pressure on him either. frankly, as you say, we also need turkey to take care of some of these issues jointly with us. it's going to be a very, very difficult, intense road ahead. what we need is some consistency both in talking about values and talking about interests. >> mr. ambassador, when it was occurring, a lot of -- a lot was made of the history of turkey and that previous coups have actually kept the country

secular, almost in a self-correcting way. and you know, this one didn't succeed, which would tend to make you think the possibility of turkey becoming an islamist state is more likely. what would an islamist turkey look like? full on, if it went that route. would it be a nato member? what would happen? >> so iran is just one model of an islamic state and it's a shia model. afghanistan actually calls it's self the islamic state of afghanistan. so there's a whole variety of ways you can imagine islam being incorporated into laws of a country. turkey has a very strong secular tradition among a large portion of population. it is not a radicalized population. erdogan has acted more as a traditional authoritarian electronic man like mubarak in

egypt rather than acting as an islamic extremist, even though he's more islamist in miss views than any other leader. as far as military coups go, you never want to change government with a military coup in the sense that's not the way politics should be worked out in a country. i don't think any of us should be saying, gee, we wish this coup would have succeeded. at the same time what we're seeing from erdogan now is a desire to take advantage of that, to crack down and establish authoritarian rule even more. what it would look like to bring more islam into turkey with that kind of strong hand rule, it will be a turkish-swede, what's it going to look like in turkey versus iran, afghanistan. turkey has potential. >> i know diplomatically all the focus is on when it comes to freedom of the press, when it comes to imprisoning a political opposition, they also -- erdogan also highly interventionist in

the central bank. they can't conduct monetary policy in a normal way. he consistently refers to interest rate lobby. he likes low interest rates. he's a very, very lucky man interest rates are so low all over the world because if and when they start to go up, he could have a currency crisis, because they are so dependent on foreign capital. do you think there's enough focus on that as well? could the economy be his ultimate undoing? >> well, that's coming. what it means about undoing, i wouldn't be so sure. turkey had been a very strong position economically and financially several years ago and that position has eroded over the last, say, six, seven years, eight years. and from there, you have the currency issues, you have the debt issues, dependence on foreign capital and massive corruption. one of the things we've seen that is characteristic of this

government in turkey is increasingly difficult for private business to act normally in turkey without pressure of some kind to do business deals that are not necessarily good business interest in order to provide a little grease back to the government or back to people connected to erdogan or his family members. that's the thing that's going to hurt turkey the most over time is a weak business climate. that does not necessarily mean it's going to be bad for erdogan, just like with putin russia. sometimes strife is something they can use, leaders like that to blame others, to blame outsiders and say they are defending the great nation against all these external influences. so we'll see how this plays out. >> we see that in venezuela as well. mr. ambassador, thanks so much for joining us. >> thank you. coming up, that truck rampage in east france leaving 84 people dead. isis claiming responsibility for the attack. we're going to talk to counter-terrorism analyst.

stay tuned "squawk box" returns in just a moment. you know what, guys? there's a lot of tree branches and dry brush over here. we should probably move the bonfire over there. [smokey whistling a tune] i'm guessing smokey liked that idea.

france, leaving nearly 90 people dead. countries around the globe stepping up their counter-terror efforts. joining us now michael ohanlin, a senior fellow at the brookings institution. in hindsight, michael, in listening to some of the french authorities, doesn't seem like

they were up for the task again. i know it's hindsight, 2020. much harder to pull this off in the united states, would it not? >> far fewer people trying. i'm not sure we would -- now that it happened once in france, i think all law enforcement agencies will be thinking about this particular tactic. i think it's hard in any kind of quasi military, heavy policing operation to expect people to be really good the first time they have seen a major new tactic. we have seen a little ramming, bulldozing in the middle east before but not much, not on this scale. so i guess if there's a hopeful lesson, everybody is thinking hard now, around the world, not just in france, how to stop the vehicle. certainly our troops got used to it a lot in iraq and

afghanistan. this kind of tactic was used there. i should say truck bombs. >> michael, you saw "60 minutes" last night. the mayor of nice said he begged the federal level in france for the same type of security during soccer. paris said his request was not granted. you're talking about 30,000 people in a small area. that's the ultimate soft target. by definition, there was not the kind of thing there that would have prevented this. >> that's a valid critique. you know, there was a big mistake made, very tragic outcome as a result. there is room for finger pointing, there should be some accountability. all i'm trying to say is tactic of truck ramming of a crowd is not something i would expect a typical policeman to be ready to address. you could say in theory they should have been, but in

practice these things tend to have to happen once before everybody -- >> tactically you think about different things that go on in the united states, macy's day parade, new year's eve, whatever, do you think we will be prepared? do you think there's steps tactically we can take? >> to a certain extent, certainly that scale of tragedy, 84 people killed. i think there's a much higher likelihood in the future the truck tires would be shot out much sooner. it doesn't necessarily prevent five or ten casualties but in general people will be thinking hard about how to stop a runaway truck and it won't just be military officers or enlisted personnel on patrol in afghanistan but police departments around the world that think about this now, too, that practice shooting. they figure out the way in which you would stop this. maybe one person shoots the tires, one person shoots the driver. you don't have a lot of time to just go for the tires and be cute. you've got to go after the driver right away as well. these are the kind of tactics we

thought about in war zones, we're going to have to think about them as well at home. >> we had a guest on earlier that said he thought this was a symbol that, in fact, isis was more desperate because they were losing ground war in southern sir yarks losing territory. before they were advertising please come to syria, help us fight here. now they are exhorting individuals around the world to do these kinds of attacks. do you agree with that? disagree? >> there could be some truth to that. of course we still don't know what motivated or who is in contact with the nice bomber or driver. clearly personal troubles and his own deranged mentality seem to be the main causes here. isis is taking credit. it may or may not have had much role in inspiring him. we don't know that for sure. i think it's true at some point isis was going to lash out at the west. i think it was inevitable they would do it even if they are winning. their whole outlook, their whole

vision as my colleague wrote pout in his book "the isis apocalyp apocalypse." they were planning a showdown in syria and iraq and establish a caliphate throughout the region including places like israel and maybe even spain, where as you know muslims are ruled back in sort of medieval times. ultimately they would have run into opposition from us and would have decided to come after us at one point or another. it may be happening now because of desperation but it was inevitable at some point. >> totally different, baton rouge, dallas, how do you see this playing out? what should and can people be doing? >> i don't claim any great expertise here. i think it would be good if certainly we could find a way in these two weeks of political conventions for both parties to come together, a lot of show of support for police would be nice, also a lot of show of support for the kinds of legitimate grievances of

populations that have caused tension, obviously not excusing any of the shootings. i think these two weeks of political conventions are crucial and let's see if the republicans can get us off to a good start this week in sort of coming together rather than dividing our selves from each other. >> istanbul is all running together now. they seem to be coming with more frequency. i wonder what it says about eu and immigration policy. the whole brexit had to do with sovereignty and economic things. i don't know if it was immigration. they say jeannie out of the bottle in europe, it's not that way here, far fewer perpetrators but i wonder what it does to the whole psyche in europe in terms of immigration. it's probably too late to even stop it over there. >> yeah, i don't have any great insight there, but i will say one thing, whether you like president erdogan or not and even those of us who don't love him were probably against the

coup last weekend, we have to give credit to turkey as a nation. turkey as a nation is the real shock absorber for europe, as you know with the refugee flows. they are suffering. they are suffering more than other european countries, even though we get more attention to attacks in places in the east other than istanbul or ankara. we have to hope turkish people can hold it together. they are frankly doing us a service even where we disagree how to handle syrian conflicts within syria it's self. michael ohan loan. >> coming up, from the stock exchange, top stories. .

big deal this morning japan's softbank buying chip designer arm holdings for more than $32 billion we should tell you a 43% premium. you would have liked to own those shares on friday. the all cash deal approved by both companies. big move for softbank and what they're doing over there. down to the new york stock exchange where jim cramer joins us now. mr. cramer, what are you looking at? >> i think that you say that you wish you owned it. someone who bought a lot of calls at the end of the day. that guy must have been very smart and thinking how well

mobile semiconductor stocks are doing because that's quite a buy there some of the money calls, quite simply brilliant. >> you think intel should have bought it today? >> i wanted intel to buy it when it was about $12 billion and they were like come on we can build it. almost everybody believes they can build something better than what someone is selling for. this was a great buy. sara was doing the calculations how great it was with the yener are sus the pound. the country put stuff on sale. will the british government like it? the canadian government was not allowed to see its crown jewel be sold. this is the crown jewel of technology for england. interesting what they do. >> does it say anything about post-brexit england? >> just that you're going to put stuff on sale. not unlike what happened here in 1987 after the great crash of '87. we had the japanese come in and buy lot of companies because they felt that crash was artificial and that companies themselves were doing well.

they were quite right and it stirred up trouble here in congress because the japanese were so aggressive. here we are again. fast forward to 2016 and they're being aggressive taking advantage of a decline that is not really -- it's artificial. arm holdings is doing well. great franchise. >> you applauding brian moynihan. >> the book value is incredibly high, good job on efficiency, in trading. tomorrow they can start buyback stock. i thought it was a very good quarter and "the wall street journal" had an article this morning expect the earnings to be not so good and looking at last week thinking earnings are pretty good. i don't know where you get the negativity. not hitting my radar screen. >> okay. we're going to see you in a couple minutes, jim. >> good to see you. >> thank you, sir. >> we have sad news. economist carl case known to his friends and students as chip case, passed away this weekend after battling a long illness. he is the case in the case-shiller home price index. he was a pioneer in housing-related economic

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holdings. welcome back. to "squawk box." perfect casting here. jeff bezos living out a sci-fi fantasy playing an alien in the "star trek" movie. he will need very little makeup. >> oh. >> comes out on friday. >> oh, my goodness. >> i like jeff. >> producer -- did i say i don't like him? producer j.j. abrams confirmed bezos' cameo appearance. bezos spoken about his passion for star trek and his childhood dreams of space led to the founding of his private space travel company, blue origin. chris pine who plays captain kirk admits he has no -- he had no idea who bezos was. >> what? >> he's an actor. >> oh. >> but they know politics. but says he was, obviously, very important. >> and policy. >> politics and policy and climate change. >> uh-huh. >> you guys play pokemon go? >> have you played it? >> i haven't. >> oh. >> on my list of things to do. if you had trouble logging into

pokemon go you were not alone. the hacking group claiming responsibility for hitting the game's servers. the group saying it won't stop disrupting the game until the makers of pokemon go contact them. armine has made a name by hacking twitter accounts of tech leaders and other celebrities using the opportunity to sell its security services. >> i've got people playing -- >> marketing strategy. >> people playing? my house. >> they are? >> one of them asked me, can we go here, it was nowhere near where we were going, why would we go there? >> miles out of the way. >> more worthy, more points driven, higher rated poke mon. >> a gift of a mob scene in a park where a very rare character was. people are like -- >> can only one person get it? >> on twitter people were falling over themselves. it was almost -- >> can we get one here. >> that would be cool. >> pokemon. you have to get the points -- >> a beacon. >> people could come here, win a

point. >> you should be the attraction. >> right. okay. final check on the markets. let's see where the futures are trading at this point. in the u.s. flat now. they've given back some of the gains. european equities part of that reason they've mod rated as well. >> okay. >> make sure you join us tomorrow. "squawk on the street" begins right now. good monday morning. welcome to "squawk on the street." carl quintanilla with jim cramer and david faber at the new york stock exchange. we set up for a pivotal week in politics and the markets. earnings season kicks into second gear. gop convention kicks off president the ecb meets and we watch baton rouge, nice and turkey as well. europe is mixed not reacting much to chinese housing data overnight. macro data back here going to take a back seat to corporate profits. road map begins with b of a beating the street this morning,