megapop star releasing all her music now to streamers overnight. is it just an effort to sabotage katy perry's new album? think about that. friday, june 9th, 2017. "squawk box" begins right now. ♪ now we got bad blood we used to be mad love ♪ >> live from new york, where business never sleeps, this is "squawk box." >> good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick with joe kernen and andrew ross sorkin. u.s. equity futures, with all of the news that has been hitting the markets including the surprise uk elections, the testimony from comey, you are looking at the dow futures up another 45 points. this comes after the dow set a new session high yesterday during the trading day. s&p futures are up by 3, the nasdaq up by 6 1/2.

again, stocks marching higher despite any noise that is out there in the political world. overnight, you'll see what happened. the nikkei was up by half a percentage point. hang seng was slightly weaker. shanghai composite up by a quarter of a percentage point. in europe, the biggest surprise, even though the conservative party was not able to win back a majority, and even though there are all kinds of questions about theresa may and her government, you can see right now the ftse is trading higher. it is up by about three quarters of a percentage point. stocks in france up as well. germany, the dakotx is up. and the current sy market, you've seen more of a reaction. the pound is under pressure, the dollar pound is at 12736. dollar up against the yen and up against the euro as well. check out the ten year, the yield, at this point, looks like

it is trading at 2.199%. just below 2.2%. and if you look at crude oil prices this morning, crude oil is down yesterday. this morning, up by 15 cents to 4580. >> second election in a row where -- >> the consensus was wrong and polls were wrong. >> not just consensus, but the person didn't have to call the election. >> didn't have to do it. >> heard somebody describing it, a goal -- a soft scored goal. >> like david cameron said, oh, yeah, brexit, really, i'll put your money where your mouth is, let's see you vote for it and then they did and theresa may again, i'm going to bolster my -- and both times, but the english people, do they not like people that are running the country? just hand them -- like -- >> i think this is true in this country true that every time you win an election, you think it is a mandate on your agenda and it is not. it is often not. this may have been a mandate

against the previous person's agenda. >> the pound goes down when you vote for brexit, looks like brexit is in doubt and the pound goes down again. >> they're leaving. >> across the pond to the guy who knows what is goinging on. >> i don't think anybody knows what is going on. he's in british but i don't know anybody knows what is going on. >> the snap election gone wrong, back firing in this case. mr. frost. >> huge back fire indeed. the pound over the last 12 hours fell sharply as that exit poll came out. pointing to the likelihood of a hung parliament. that eventuality has since been confirmed. down 1.6% as we speak, 127.43. fell 2% at the moment the result came out. why did the found fall? it pointed to a weak government. last night, we weren't sure what color that government would be. we now know. it will still be a weaker government than we had before. so let's recap exactly what

happened with the results. theresa may is expected to end up with 318 seats. majority would require 326. where do we stand and what happens next? theresa may does not have enough to get an outright majority of her own, with the support of the dup, the democratic and ulster unionist party in northern ireland, won ten seats, she has enough to get over the line and have a working majority. sky is reporting that the dup will back theresa may. now, labour had huge gains but so far from a majority and with no coalition, why theresa may is able to go ahead and do this. we had confirmation from the government she'll go and see the queen at 12:30 local time. 7:30 your time. that's when she's asked to form a government yet again. a much weaker personal position, much weaker government position and therefore a much weaker pound this morning.

>> well, what do you think happened. i heard reports about a million people, younger voters registering when the snap election was called. what happened an how? >> how did it all go wrong for theresa may, an enormous poll lead. first and foremost suggested a turnout, turnout rose 3% compared to 2015 election to 69%. particularly young voters turning out that extra turnout went to labor and it delivered some stunning results in university towns and in london. seats that just haven't been labour since before the war. the second factor, the uk -- the brexit vote, which was expected to go unanimously to the conservatives, 12.4% they won in 2015, pretty evenly split between labour and the conservatives. that meant many seats in the north of england, expected to switch did not. it could have been a lot worse

for theresa may if not for her taking big gains in scotland. a bad night also for the scottish nationalist party, conservatives had the best result in scotland for over 20 years. sum total, theresa may is able to scrape herself over the line for a working majority, alliance with the dup. >> is it a millennial problem? we have that here. idealistic young millennials, we talk about it, if you're 20 and not a liberal progressive, you have no heart, if you're -- by the time you're 30, you haven't figured things out, you have no brain. this is what it is again. a millennial problem voting for the bearded guy, the socialist? >> well, there is an anti-establishment aspect to this vote. the labour party is not a new movement like macron or donald trump as a total outside erk but jeremy corbyn is an outsider himself.

and he's captured the imagination as you say of young voters. also of general dissatisfaction with politicians, the theresa may was a new prime minister, but her party, the conservatives have been in government for six years and jeremy corbyn benefitted from that as you say picking up a lot of the young vote. >> thank you very much. we'll check in with you again a little later this morning. right now, for more on the fallout from the uk election, let's bring in julian tet, the u.s. managing editor of the financial times. another election, another surprise. what do you think happened here? >> a lot of headline this morning about may day, mayhem, plenty of jokes out there. >> hard may's night. >> the footballer gary linniker said it is the biggest goal out there. >> soccer thing? >> soccer thing. exactly. two things have happened. or three things. firstly, there is a millennial

vote and, yes, jeremy corbyn in some ways is bernie sanders. that is not all of it. you have a lot of people who are very unhappy about the way theresa may has been essentially following the brexit track. a place like kensington, chelsea, not poor millennials, that's wealthy international people, right now it is too close to call whether it will be a conservative or labour victory there. >> is that because of the antagonistic tone she's taken? >> they're furious with what she's done on brexit. an absolute shambles. >> is that an area that voted for brexit or don't -- >> they don't want brexit. wealthy professionals are saying -- the other problem is that theresa may has run a really bad campaign. there are so many perils between hillary clinton and theresa may now. she basically tried to campaign on strong and stable. which sounds like the hillary

slogan of stronger together. basically status quote. she sold herself on the status quo and the one thing we have learned so clearly over the last year, right across the western world, is a vote of don't want the status quo. >> what does this mean for the brexit talks which are already on track, are already scheduled and something has to start happening. >> complete disaster in many ways because theresa may called this election because she wanted a stronger hand. she's emerged with a much weaker hand in negotiating and the problem is, and not the donald on this side of the atlantic, but the head of the uk tweeted we know when the brexit talks have to end, in two years time, nobody has a clue when they're going to begin. the danger is there is so much chaos and nothing happens for a while. >> there won't be time. >> not a very interesting wrinkle. if theresa may forms a government and she said she's go to. she'll do so with the dup.

they have come out and said they don't back theresa may, they said that yesterday night, they thought she resigned, they changed their position, but they are in favor of essentially an open border with the rest of ireland. and either that happens, the whole brexit negotiating stance is going to be even more confused. and maybe that means a very soft brexit, but also a chance that actually they'll have a muddle and nothing will happen. >> what does it mean to invest? one thing that is now in question, always in question with brexit, if you're a multinational company who is doing business in the uk, sort of trying to rethink what they're going to do, what do they do now? >> if you're an investor now you have to take a big leap of faith and believe in keep calm, carry on and have a cup of tea is going to work. reality is you have this -- you have to hope that somehow british people muddle through, the british government muddle through and find a solution. what you have is uncertainty on

top of uncertainty. >> stunning and chilling thing, not only for investors, but more importantly for business leaders. we hear ceos saying they're not investing now, they're waiting to see what the new tax plan is. is that what happens to a larger degree? freeze on capital investment? >> people are waiting to see what on earth happens in the next couple of years. as donald trump said, we know when brexit talks have to end, basically in less than two years, we don't know had they're going to start, and anybody who ever has seen trade negotiation process knows these are fantastically complicated. >> juncker says he hopes the results will cause no further delays in the brexit talks. so -- >> why does he want to get on with them? >> he's got a stronger hand now when they're in chaos. >> also he knows the actual logistics of trying to negotiate takes a long time. it will be a tight timetable. the danger is basically that the clock has started ticking, and that so much chaos and nothing happens for a very long time, and they simply run out of time

to try and renegotiate all the deals they need to do. >> no way there is another referendum about redoing the brexit vote. >> discussion overnight about the chance of trying to do some kind of, you know, another election to get more clarity, you know, the chance of having another brexit vote is not high. >> labour said they're behind this too, though. they're in favor of an exit, just a different type. >> the problem is, it is all very well saying -- >> great name, bojo. >> that's memorable, but, all the jokes about may, everything else, but the problem is, of course, that, you know, there is now chatter about pushing theresa may out. that chatter will make it very hard for negotiate. so yet more chaos, yet more surprises. >> thank you. always good to see you. >> great to see you, thank you. wow. i read that this was one of the longest stretches of no tweets since yesterday from the president. >> two hours? >> like a long time. he just tweeted.

president trump just tweeting, despite so many false statements and lies, total and complete vindication and, wow, comey is a leaker. leaker. lying ted, wasn't it? >> it was during the election. >> lying ted. john harwood joins us now with more. people had popcorn and lazy boy chairs and they -- that was -- going to be again, a press conference today that people will be tuned into. are the bars setting up another happy hour to watch this, john, down there? >> no question about it. and the chaos that gillian was just rougheferring to, we had a striking scene at the senate intelligence committee, where the former director of the fbi portrayed the president of the united states a liar who fired him to change the course of the russia investigation. now, interestingly, republicans as well as democrats on the

senate intelligence committee did not question james comey's voracity. what they tried to do instead was to paint his actions in the most favorable light, the republicans did, to president trump, there was this exchange between jim risch, senator from idaho, and james comey on whether the president's statement as reported by comey that he had said he hopes that james comey would be able to let the flynn investigation go, whether that was more innocuous than comey said. here is the exchange. >> i took it as a direction. the president of the united states, with me alone, saying i hope this, i took it as this is what he wants me to do. i didn't obey that. >> you may have taken it as a direction, that's not what he said. >> correct. >> he said i hope. >> exact words, correct. >> you don't know of anyone that ever has been charged for hoping something, is that a fair statement? >> i don't as i sit here. >> we didn't hear yesterday from president trump, himself, we did

hear from his lawyer, marc kasowitz, who said the president did not order james comey to end the flynn investigation. and he did not say i need loyalty from my fbi director, though kasowitz said the president did expect loyalty. >> the office of the president is entitled to expect loyalty from those who are serving the administration. it is overwhelmingly clear that there have been and continue to be those in government who are actively attempting to undermine this administration with selective and illegal leaks of classified information. >> now, james comey acknowledged that to kasowitz's point he did leak information about his conversations with the president in hopes of triggering the appointment of a special counsel. he in fact succeeded in that and now robert mueller, his long

time associate, former fbi director, is that special counsel and james comey significantly said he thought robert mueller was investigating obstruction of justice, so the president's tweet this morning about total and complete vindication appears to be pretty premature and that is a big cloud over this administration, going to be a rough ride for the next few months. >> john, thank you for that. we'll continue the conversation now on the comey/trump saga. pete hookster who served as chairman of the committee. thank you for joining us. >> good morning. >> your immediate reaction in terps terms of what you saw yesterday. >> i found it to be fascinating television to watch. and with the vote in the uk last night, you find out that maybe the comey story won't dominate the headlines, you know, for the

next few weeks and all that, that there is new news that comes out. in regards to yesterday, comey really threw four people or four groups under the bus, loretta lynch and the obama administration under the bus when he was talking about the direction that he received from loretta lynch in regards to the clinton e-mail investigation. he threw the media under the bus when he said, you know, some of the reporting that he sees is just flat out or dead wrong. obviously he threw the president under the bus when he continually called him a liar, but i think more importantly he called -- he threw james comey under the bus, going after his own credibility, acknowledging that he was not strong enough to stand up against loretta lynch, the president, and perhaps more importantly that, you know, he took the notes that he had and that the issues that he had and rather than going to other places, he could have gone to the senate intelligence committee, or the judiciary

committee, could have gone to the justice department, but what he decided to do was to give those notes to a friend, and direct that friend to give it to the media. >> were you troubled at all, either by the loretta lynch piece, or what he said about his conversations with the president? >> the -- yeah, you're troubled by it. with loretta lynch, there he was -- it appears to be more than willing to follow the political direction to align the statements of the fbi, to align those with the campaign of hillary clinton. that's not what an fbi director should be doing to use a term that is probably not in the vernacular of the fbi at all, to describe it as a matter, that's concerning. and, yeah, i do get concerned. i'm a supporter of donald trump to hear him consistently describing donald trump as being a liar which is an opinion, it is not a fact, you know, there were many others that -- especially in his opening

statement, there were many that had expressed concern about his leadership at the fbi and when he said, you know, donald trump's characterization of the fbi and what was happening at the time when mr. comey was fired was just an outright lie, that's his opinion, obviously others had a different opinion. >> in terms of just the opinion, it seemed to me, and i'll tell you, we haven't really talked about it, i thought the loretta lynch stuff was very troubling. but i also thought if you think the loretta lynch stuff is troubling, which i think we talked about before, even before this, you also have to think that what was going on inside the white house is also troubling. very hard to look at this. >> i see why you bargain with me on that. hillary clinton is not president, won't hurt her. >> i'm saying if you -- >> about comey, and congressman, what i thought was a little weird was, you know, he's a

prosecutor, very smart, and he had answers to a lot of really hard questions because you look at his -- some of his actions and it is like how are you going to explain that? he had them all. why did you leak? i was leaking because i thought that that could bring in the special counsel. >> yesterday you made the point that maybe when it happened, the reason he didn't think it was obstruction was because nothing had happened. but once he got fired, he thought, okay, maybe this was obstruction. with me, it was like he was willing to overlook it as long as he could keep -- the other side is he was willing to overlook it -- can i finish for a second? he was willing to overlook it as long as co-keep the job. but hell hath no fury like an fbi director scorned. >> that may color your opinion of comey and what he's doing, but it doesn't change the circumstances of how you see

around it, he was willing to go along with stuff he shouldn't have been willing to go along with. >> and also the headline in a lot of these papers is about comey says trump lied about him and yet -- it seems like comey's main thing yesterday was what trump said to lester holt, that hurt him so much and the way he was fired on tv, he's, like, getting back at -- >> opening statement was all about -- >> the opinion about whether the fbi was in disarray or not. certain fbi agents that didn't like jim comey because of the hillary clinton, the way he didn't prosecute her. so to say that that was a total lie, that the fbi was in disarray, and he defamed me saying i was a nut job. >> opening statement was the weakest part. >> a lot of personal vendetta settled by him yesterday instead of, you know, the bigger picture. don't you think? >> i think that's exactly right. it appeared to be parts of it -- personal vendetta. some of the words that described his behavior, he said with

loretta lilohr receipt loretta lynch, he was queasy. he said i was stunned by what the president had to say. and i couldn't respond. when he said in terms of the leaks that he said, well, you know, i decided to leak the information for -- to give it to the law professor for a variety of reasons, without getting into what the reasons may be, you know, it is -- the bottom line is no one came out of yesterday a real winner. i think the american people are looking at washington and saying, you know, this is why we don't like washington. he exposed the swamp for what it was, and he exposed himself as being a part of the swamp. >> republicans -- >> i would agree with that. there are -- his opening statement, when he made it, i was, like, he's kidding me, he's mad. and he's trying to get back.

but then he went on, and threw himself under the bus, as a result, kind of opened up, things you probably suspect are happening in washington, administrations are trying to pressure people and the people who know they shouldn't be doing these things are going along with it, it was -- but it doesn't clear either one of these administrations. >> going back to yesterday, this was a -- this was a hostile witness to the prosecution, i call it this witness to the -- president trump's co-campaign chairman in michigan. i understand. we'll have -- you're going to be able to present your witnesses later during the show at some point, witnesses for the prosecution. just -- and i thought you did a good job highlighting the -- your areas and then i was -- i was just trying to go straight down the middle to be fair. >> as you always -- as your newspaper, the new york times always does. that came out smelling so -- like a rose yesterday as well. you have to thank the --

>> may need to thank you. always good it see you, sir. we appreciate it. >> let me know if you hear from -- >> see you soon. >> thanks. when we come back, fallout from the election, the pound getting slammed this morning. coming pack from the lows after conservatives failed to secure a majority, we'll talk currencies and market strategy right after this break. cles look good, but we should be seeing more range of motion. i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies lead with digital.

the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc.

live-streat the airport.e sport, read it carefully. binge dvr'd shows, while painting your toes. on demand laughs, during long bubble baths. tv on every screen is awesome. the all-new xfinity stream app. all your tv at home. the most on demand, your entire dvr, top networks, and live sports on the go. included with xfinity tv. xfinity the future of awesome.

a check on currencies in the broader market right now, following that shocking uk election outcome. joining us now, simeon heimen at pro shares advisers and wynn thin at brown brothers harriman. would either of you take something from yesterday to talk about this more important? what do you think is more important? the uk or the comey testimony? >> i think the ecb and comey were leaked. we had details that came out the day before. markets are prepared for what was going to come out from those two events. >> the markets, once comey left, the markets, finish testimony, they seemed to go up. nothing new or -- you say -- >> the big unknown, big known unknown was uk election, had the big brexit surprise a year ago.

the markets are taking this event much better this time. terrible for the uk, no doubt about it. the wider implications are quite limited. >> why is it terrible for the uk? weak government or brexit is weak, strong, unlikely, likely, quicker, sooner? >> i'll step back and say if nothing else, puts to ped tbed illusion they could get soft brexit. i thought brexit would be hard no matter what. they're not trying to punish uk, don't want to make it easy for anyone to leave the eu as well. hard brexit. this removes that sort of veiled illusion and going to be a tough negotiation, weak government, coming from a very weak position as it was. this is even weaker. >> just germany and france, i wonder whether they got the yoke of southern europe and all the problems down there around their neck and like misery loves company. the uk can get out from under

that and i think that's why the uk market has done so well. it is weird. they want to keep him in. misery loves company. >> i think i'm a firm believer that the uk is not what it used to be. it is a small island economy, i think the eu -- i think the uk needed the eu more than the eu needed the uk. >> really? >> i do. >> simeon, for u.s. markets, what does this mean? if you think comey is more important, talk about comey. >> i don't think comey was more important. i think what we found out in the uk is similar to what we're finding out in the u.s. that when people sort of romanticize the notion of more radical change, they don't want it, that's probably okay for markets. we have earnings, low interest rates. one thing i found interesting about the resilience of the uk market was that's in the face of weak energy prices. ftse is overweight energy. so i think valuations still important, i think the opportunity in both the europe and uk is not bad. those price to books are at a

40, 45% discount to the u.s. u.s. markets, valuation is okay. we won't see this level of extremely low volatile, but prices are well supported. >> i'm not sure it is the way you characterize it, that both places decide on one thing and then get buyer's remorse for what they decided on. in the uk, they were mad at cameron, throw those bums out, the authority. she comes in, they don't like what she's doing, go the other way. i don't think it was remorse. they don't like anyone in charge. >> right here. >> threw out w and we bring in obama, throw him out. >> always seen the best market returns when pretty much nothing happens. no changes happen to the economy or to even regulatory -- >> that was during a democratic administration, where anti-market forces were -- they're trying to do those, those get gridlocked. gridlock is not good if it hurts

growth initiative like tax reform. i don't think gridlock is good. it is only good had it is preventing anti-business legislation. >> that's true. but, look, we do need a little infrastructure spending. >> sure. >> and unwinding. don't need corporate tax cuts. we can live without any radical versions. >> does the comey testimony put off all the things we're supposed to be doing? >> fundamentals in the u.s. are strong. we started theier o year off thg there would be tax re form off the bat. now we're hering it is a 2018 story. as a result, had a little softening in the u.s. data, people pushing up the fed expectations. the interest rate outlook is benign. g but u.s. growth, i'm positive on the u.s., i think we need to see some signs of life, make sure

the q2 bounceback is going to be seen. >> assuming we get new highs, day after day, or close to the best levels of the year for equities? >> earnings growth is still stellar. we had almost 8% top line growth last quarter. that's big. in a low interest rate environment, couple of percent of earnings growth can support 22 time pe. there is upside in the market. >> the day the special prosecutor, not the prosecute, but counsel, mark went down 450 points. if another shoe drops that makes it worse than what we heard yesterday, what is the market? >> there is no question that we're waiting for some volatility. my view that the valuations is supported ten on the vix is a very unusual situation. so the odds that we'll have -- >> i meant if it looks like trump is in trouble, does the market go down? >> i'm not sure. in the short run, sure.

any instability of that level is going to close the market volatility. i don't think it is a long-term bearish signal. >> thanks. >> when we return, a roundup of this morning's big corporate stories, a couple for you. the stock you need to be watching in the trading session. plus, taylor swift releasing all of her music on streaming services. but is it a business strategy or some kind of sabotage strategy? we have the details behind that just a little bit. as we head to a break, a look at yesterday's s&p 500, winners and losers.

i can't wait for her to have that college experience that i had. the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant. ameriprise

> ♪ welcome to new york >> welcome back, you're watching "squawk box" live from the nasdaq market site in times square. >> good morning, welcome to "squawk box" here on cnbc. look at the u.s. equity futures at this hour after what was a surprising part of the election in the uk last night. things continue to look up. the dow looks like it will open higher 45 1/2 points, nasdaq up 6 points and s&p 500 up close to 4 points. let's show you currencies, especially the pound, taking a tumble in a serious way this morning. which we also have been watching. in the meantime, softbank said it will buy two firms that build walking robots from google. the google patierent alphabet.

they design and manufacture robots that simulate human movement. terms of the deal were not disclosed. shares of softbank rising sharply after the deal was announced. up 7.5%. >> remember we used to show the videos. >> would be out -- >> true rise of the machines, yes. >> i agree with that, but just having them walk, i don't want to own a robot because it can walk. has to do something. mow the grass or something. once it starts walking, can you send it to the store? what are the uses? why do i need a -- oh, geez. that had to hurt. why -- i like it. it is neat. but -- >> it makes sense, you think something like this, the robots they send for bomb squad, what if it would walk and not be on wheels getting stuck on -- >> my heel hurts. i got some kind of whatever it is called. i walk like that. in the middle of the night, trying to get to the -- with my heel, that's how i'm walking. >> two other pieces to me that are fascinating to me about

this. one, the idea that masasun is collecting up some of the most interesting technology around. and, two -- >> is it vanity stuff, though? >> no, he's somebody who really is -- talk about a long-term thinker and investor, he's buying the stuff thinking about what it means 20, 30 years from now. >> what does it mean? what do walking robots do? >> i don't know. >> why would anyone need a personal computer? that was my question in 1979. why would anyone need -- >> the second piece, though, what does it mean about what google is doing. they bought a lot of these things and a lot of them haven't worked out the way they expected. they haven't been able to make money off of them as quickly as they thought. and the second piece is, for so long, alphabet's business or google's business wasn't that transparent, the advertising business. once they -- we knew this was going to happen. once they broke up the business and made it more transparent, there were certain businesses that they weren't going to be able to keep and weren't going

to be able to invest in. what does that mean about the long-term innovation. >> google had all kinds of vanity projects. >> vanity projects, true long-term investments, and investors, of course, aren't willing to be patient enough potentially. we'll see. >> up 7.5% on this, their investors think they're getting a deal. >> if google is selling, should you be buying? if they really don't want to wait 20 -- i'm still -- someone wrote in yard work, but i'm trying to think of something better than that. send them to the store, get eggs. >> and by the way, very expensive yard work, these robots cost a fortune. >> but they walk. >> they do. >> they walk and they stand up. >> in the same context, autonomous vehicle today still costs you $350,000. >> back to joe's point. >> i just want one. >> eventually, we aren't going to talk about taylor swift.

>> right on his face. >> coming up, a new read on startups in america. we got the data from cnbc's first ever small business survey. and it reveals an interesting difference between male and female entrepreneurs. what about an offensive lineman? that might work. football. right? >> as a robot? >> yeah, can't get through them. what if he's like titanium. >> you're the guy who has to run up against him or the whole thing? >> the running back, run right behind him. then bank stocks rising, house votes to roll back dodd frank regulations. we'll talk about the bill's prospects in the senate with bank analyst chris waylon, stay tuned. you're watching "squawk box" on cnbc.

♪ it's been over 100 years since the first stock index was created, as a benchmark for average. yet a lot of people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires

the art and expertise of high-conviction investing. translation? why invest in average?

cnbc and survey monkey teaming up to debut the small business confidence index for the second quarter of 2017. kate rogers joins us now from cnbc headquarters. >> good morning, joe. we watched small business optimism climb and hold by a variety of polls since the election of donald trump and data from our first ever cnbc survey monkey small business survey echoes that same trend. the overall index shows small business owners are undeniably

can confident in their prospects for the next year. small business owners are feeling more optimistic than pessimistic about the direction their business will head in over the next 12 months. index is scaled from zero, no confidence at all, to 100, indicating perfect confidence in a business owner's prospects. the most confident business owners, they're the ones with more employees. those with zero to four employees, confidence level of 38. those with 50 or more workers, they a higher read at 67. interesting split between male and female small business owners, males, higher confidence level at 62. versus female small business owners, lower confidence level at 56. the data collected in april from some 2,000 small business owners around the country. and up later today on squawk alley, how the small business commune communety it feeling about the job president trump has been doing so far. >> we don't have a lot of time.

>> we'll catch up later. >> done with season three or no? >> i didn't start. >> troubling. troubling. that's giving away too much already. thanks, kate. >> thank you. coming up when we return, regional bank stocks turning the best performance since march when the house passed a financial reform bill that would roll back much of the dodd frank regulations. chris waylon will join us next as we head to a break. a quick check on what is happening. european markets right now post this theresa may snap election. back in a moment. i put everything into my business. and i had all these points from my chase ink card. so i bought ingredients, utensils, even made custom donut cutters. wow! all with points. that's how i created the ripple: the doughnut in a doughnut in a doughnut. suddenly it's everywhere.

i mean, it really took off. what will you create with your points? learn more about the ink business preferred card.

what will you create with your points? over hereno!ver here! (dog barking) whoever threw it has to go get it. not me! somebody will get it... ♪ (dog barking) anyone can dream. making it a reality is the hard part. from the b-2 to the upcoming b-21, northrop grumman stealth bombers give america an advantage in a turbulent world. and we're looking for a few dreamers to join us. thithis is the new new york.e? think again. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships

to grow the businesses of tomorrow today. learn more at esd.ny.gov be backing him? >> how much does this matter for the market? >> is there going to be something that is judged by

investors as likely to derail legislation and initiatives in washington? >> the market really doesn't care about this as much as the media does. >> what trump needs to do is trn his fobbous exclufocus to refor stop time this morning for the executive edge. . the house voted to pass the financial choice act a bill that would scale back much of the dodd-frank legislation. joining us now is christopher whalen. good morning to you, sir. >> good morning, andrew. >> how much does this matter? >> matters a lot for small and midsize banks. everything below u.s. bancorp is good. >> good. >> but you know for the large guys, i think it's going to depend on which bits and pieces of the house legislation actually get passed. >> but so that was my -- let's just go there, which is to say, to the extent that this is an anchoring technique as part of a larger negotiation with the senate, what parts are we going

to even be talking about, you know, a couple months from now? >> the stuff that helps smaller banks with regulatory relief has bipartisan support. you have maxine waters behind it. so it's pretty clear that you're going to see something come out of the senate on this. then, you have to see where the pain points are for the industry. and on that basis, you may see things like the fiduciary rule which is driving all the asset managers crazy. that may get rolled back all by itself. resolution authority. a very obscure part of dodd-frank. >> which i would argue is maybe the most important. >> one of the most important. >> in the too big to fail. >> there's been work on that for the past couple of years to create a new chapter of bankruptcy for large financial institutions. and both sides have been working on that. so that may get done. and then the rest of it is a christmas tree and it really depends on whether or not you can get enough support behind one provision or the next, probably in a reconciliation bill. a little one-off. >> what do you imagine the timing is for the senate at this

point? now that you have this -- >> mike crapo is in charge. it depends on him. >> is there enough oxygen to get this passed? ben white laid out a couple of comments, one that this is like a potted plant, you put it in the senate where it gets no light and no water. another is this is a 600 page doorstop for the senate. is there any incentive or initiative with the senate, with all the other things they're going, and get this passed? >> other than the relief for small banks, no. that's got a lot of support. and they always have. there's a lot of politics there. small banks are extremely important to both parties. especially coming up on the midterm election. and the same thing with the fiduciary rule. financial advisers. there are a lot of them. the cfpb, changing that into a more traditional agency, i don't think that's going to be on the front burner because once the republicans take over they may like the idea of having a director. you know, things will flip over. in fact, i would tell you -- >> that's interesting. that's sort of counterintuitive

view of this. >> the single most important event this year will be when richard cordray leaves the cfpb because that will change that agency. they're going to defund it and turn it into -- >> banking stocks right now, given that they have come down? now they're reversing a little bit? >> look, there were two basic pillars for the bull trade on financials coming out of the election. one was deregulation. the second was rising interest rates. >> right. >> we don't have either. >> mm-hmm. >> in fact as i've said on this program, and before, look for two on the 10-year, right? and perhaps even lower. that's just the way the market's going. so one more fed rate cut, and i think that's it for this year. and then i think you know, financials hopefully will stabilize after second quarter earnings. kind of where they were in october. it's almost like the last six months didn't happen. >> christopher whalen. thank you. >> thank you. >> you are the warm-up act for our next piece of news. >> yeah. >> taylor swift. >> hey, big news.

>> big news. >> streaming. >> yep. it's a surprise move. i don't know if anyone knew this was coming, taylor swift has released her entire music catalog on all the major streaming services. as you know, most likely, she had been a high profile holdout since she removed all her music from streaming services back in 2014, and instagram posts from taylor nation said that the release was insel brags of her album 1989. and it sold over 10 million copies when that happened, but some internet pop fans suspect some ulterior motives. the rival pop star, there's been some bad blood between the two. >> craziest things i've ever heard. >> katie perry's new album witness being released today. and swift and pery have tweeted off since 2013 -- >> this is such a large economic piece of her life, to change everything to somehow undo katy

perry seems ludicrous. >> never saw trading spaces. >> it doesn't matter what they say. they just want to be in the news. >> but how important is finance to taylor swift when she makes $100 million in a year. i mean you get to a certain point where you start doing things just based on -- >> you believe this? >> i think it's a good time do do it. >> you think it's the timing? you think she was saying to herself i'm probably going to do this anyway, might as well go for it this week. >> my interest in the story was i wanted to play a different bad blood song. which i like. i don't -- ♪ >> but this is -- listen, you eat doughnuts and say woo, i mean this is -- >> we're already in stereo, my friend. >> this is much better than -- bad blood. that song is horrible. it's like, i've never, ever, ever, never, ever getting back together again. >> what about the tiger song? >> some of her songs are bad?

>> what about tiger song? >> i don't like that, either. do you know this song? >> i mean i know it. >> you like the back story more between this than any of their music. >> yes. >> christopher whalen was once in a band. were you ever in a band? >> no. i was a follower of the grateful dead like mr. liesman, though. >> okay. >> going to get to see him next month, finally. >> all right, everybody. when we come back, fallout from the british election. the conservative party failing to secure a majority in the pound plummeting against the dollar. we have a live report from london straight ahead. theresa may going to the queen to ask if she can form a government. plus reaction to james comey's testimony on capitol hill. "squawk box" will be right back. ray's always been different. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques.

remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and. the power of the nasdaq market. the power of 100 of the world's top companies. the power of an etf. the power of qqq. the thinking we put in, clients get out. power your client's portfolio at powershares.com/qqq. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. containing this information. read it carefully. at crowne plaza we know business travel isn't just business. there's this. 'a bit of this. why not? your hotel should make it easy to do all the things you do.

which is what we do. crowne plaza. we're all business, mostly. looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.

a uk election shocker, and the global market reaction. theresa may's gamble backfires. now she is heading to meet the queen. we will tell you why. plus the comey hearings still the buzz of washington and the world. president trump expected to hold a news conference later today. we will talk expectations. and the future of medicine and health care. obamacare architect zeke emmanuel will join us. the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york city, this is "squawk box." good morning, welcome back to "squawk box" right here on cnbc we're live at the nasdaq marketsite in times square i'm andrew ross sorkin along with becky quick and joe kernen. they told me i should say my name twice. but --

>> say it. >> separate issue. >> it takes longer because it's three names. that you -- >> let's take a quick look at the futures this morning. we have a lot going on this morning. especially when we talk about what's going on across the pond overnight and then of course the investigation and testimony we saw yesterday and some of the comments that president trump has already made today and what we're going to be hearing from him later today, as well. dow looks like it would open up higher right now. about 31.5 points higher. nasdaq up close to 2 points, and the s&p 500 close to 2 points, as well. joseph? >> yes, andrew? >> nice to see you. >> nice to see you. thanks for coming in today. >> i was sort of doing that -- >> so that i would -- >> okay. >> so you would -- >> i'm sorry. >> it's more of a joseph -- >> okay. i missed that. let me do this. >> becky's turn. >> do it again. >> joseph? joseph kernen. >> the big market more andrew this morning the british pound. uk prime minister theresa may's party losing its majority following yesterday's election. despite the tough loss she's going to head to buckingham

palace this hour to seek permission from the queen to form a government. i was going to do a snap election here wilfred on who should stay on the show, who should leave. you know, because i try to consolidate -- i'm going to put that on hold. the last two things, cameron -- doesn't work, does it? >> well, i mean, interesting you mention cameron because everyone was saying this will go down as the most stunningly bad political decision since -- or well two years before when david cameron decided to call a referendum. but certainly a bad decision. let's just sum up what it all means again. theresa may is expected to get 3188 seats. not enough for an overall majority, 326. yet with the support of the dup she's expected to scrape over the line for majority. as you said go to buckingham palace, be confirmed as prime minister again within the hour. despite that, is she under pressure? the answer, certainly yes. this is a stunning personal failure for her. particularly because she made the election about herself, also

she was very controlling about how the campaign was run. and the lead she lost. but, crucially, she will point to the fact that she increased her share of the vote. 37% to cameron, 42% for her, albeit fewer seats that resulted in, and conservative mps, who are now in focus given that the people have already voted, will want stability in the short-term. at least that's why they're not calling for her head. perhaps they will in months to come. now, what does all this mean for brexit? theresa may called this election to strengthen her hand in negotiations, instead her hand is significantly weaker. negotiations due to start in under two weeks time. but does it mean that possibly brexit could be overturned? almost certainly not. labor, of course, the second biggest party, still backs brexit. together the conservatives and labor got over 80% of the vote. so this was not a anti-brexit, or a pro-remain election.

and therefore brexit looks to be going ahead either way. i just want to end with this tweet from european council president donald tusk who said, i don't know when talks start, but i know when they end. he's of course referring to the fact that that two-year brexit clock has already started and that, again, shows the stunning scale of the gamble theresa may took. she invoked article 50 first, she then called this election, hoping it would force people to back her. instead, they haven't. she is weaker. the uk's hand ahead of brexit weaker, too. as is the british pound. >> all right, wilf, thank you very much. let's get a check on the markets this morning. the futures have been stronger. despite all of the headlines that have come out of washington. and come out of the uk. we've been watching all of this through the morning. join ugging us right now is oppenheim funds chief investment officer and karen kimbrough. and karen, what do you think is going on here?

we can see the uk vote not go as expected. you can hear all kinds of headlines coming out from comey and the rest. yet the market is continuing to set new highs. >> sure. i think, first of all, good morning. i think it's clearly a sign that a lot of the market is being driven by pretty good fundamentals. you have a consumer, housing continuing to improve. a lot of these things haven't changed. you have political risks that are going to get priced in. >> you think the market's kind of looking at this and saying, okay, there's not much to see here? >> i think the market -- >> looked into that abyss last year didn't they with the brexit vote? so they've sort of been here, seeing that it can go wrong. and they're probably going to price in some, you know, risk premiums around the pound. in the u.s., same thing. we've seen this kind of continuing, you know, what i would call unfortunate event going on in washington. so the market's seen that. and they're looking through it right now saying we do actually have pretty decent data. and we've talked about consumer, you know, optimism, business

optimism. so i think all of those things are supportive, in fact, the equity markets. >> krishna, it's the support that we've seen, the earnings have been strong, the global economy seems pretty strong, but we have seen a few wobbles when it comes to the u.s. job market and some questions about the stability or longevity of our potential economic gain. >> well, i wouldn't consider them wobbles. i think one of the things that could unwind the markets is if the all of a sudden the fed goes on a very different trajectory because inflation started picking up and replacing became an issue. the fact that inflation is still subdued, it's not deflation, but disinflation and rates remaining stable, and perhaps cutting off the future path of rate rise at a meaningful level, i think that's supportive of equity. we have global synchronized growth. policy relatively stable. that's a really good environment for equities to do well. >> maybe the more important news we saw yesterday of all the things that we were watching was

the ecb which didn't change rates as expected. but then the comments from mario draghi were yeah, don't expect us to be changing this any time soon which a lot of people read and said he's not going to be raising rates through his ten you're all the way through 2019. >> absolutely. inflation in europe which was looking to pick up in the same way was rolling over, same here in the u.s. as long as interest rate policies are relatively stable and perhaps gradual, up but very gradual, i think the markets are in pretty good shape. for the markets to sustain themselves, i think the synchronized global recovery has to kind of hold. for that, policymaking in china doesn't have to go above -- shouldn't go to an extreme. if they're tightened too hard that would be a problem. and if the u.s. economy, for whatever reason, rolls over in the second half, that would be a problem. i don't think that's in the cards at the moment. >> karen, obviously when we're talking about the markets here, what krishna is referring to are the equity markets. it's hard to find other places to put your money right now. where is the best place? >> you know, we still like the

equity markets. we like not just u.s., but we also happen to like europe and japan. and partly what we're doing is looking at not valuations, a lot of folks are worried about the valuation story. but, in fact, that's not a great predictor of where the market's going. if you look at just the flows. a lot of underbought areas are going to do quite well. we think that's going to continue. we see the markets going higher. and we still think that there's opportunities there. >> do you have a price target for the end of the year? >> our end of the year price target is 24.50. you could see it going further than that if things go further. >> you like europe irrespective -- does the uk situation matter to you in terms of what the rest of europe looks like? >> you know i don't think it does too much. i think it matters a lot for the uk. >> right. >> but i don't think it does. i think the story i'm telling with the fundamentals persists regardless of whether or not the uk has to walk out at some point, or, you know -- >> but if you had $100 to put in the u.s. or europe right now you'd go europe, no question? >> i would probably go europe. >> okay. >> krishna? >> i would probably go emerging market, actually. growth in emerging market is

significantly higher than growth in developed markets. and that's holding. and as long as that is the case, valuations are very attractive. i think actually both europe and emerging markets offer significantly better value than the u.s. >> but the emerging markets are the ones that are most reliant on federal reserve policy. on not raising rates too rapidly. >> to some extent. but i think they're reliant on the growth, the native growth, and as long as china doesn't make a policy mistake i think that will be relatively stable. so that's a pretty good environment. if you go back, in -- from in the first quarter of 2016, what changed was china dumping a lot of stimulus. that's what got us out of the funk. and as long as that is the case we are in good shape. >> neither of you are calling for a pullback in the u.s.? >> you know, i think you could see pullback. i don't think that episodic pullbacks are catastrophic. and i think if you're going to play in the market you have to expect at times it's going to be odd to be persistently low ball really elevated equity markets

and expect at some point you're going to get a 5% pullback. >> you think second quarter earnings are tough? >> i don't think you get it out of second quarter earnings, i think maybe in the second half of the year or if you continue to get disappointment out of washington there may be a vulnerability. >> i think a pullback really would be another buying opportunity. again as long as emerging market growth is relatively stable >> right. >> and as long as the fed doesn't go on a tear, i think equity markets are going higher. >> all right. >> folks, thank you both. when we come back this morning, fired fbi director james comey holding no punches back in his senate testimony. washington and the world reacting this morning. we have a live report from d.c. next. plus, political deadlock gripping the uk. theresa may heading to meet the queen this hour. we will tell you why this matters to global markets. and then later, obamacare architect zeke emmanuel will join us. we'll talk about the future of health care that's on the agenda. you are watching "squawk box" right here on cnbc. you know what's awesome?

gig-speed internet. you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids. and these guys. him. ah. oh hello- that lady. these houses! yes, yes and yes. and don't forget about them. uh huh. sure. still yes! you can get it too. welcome to the party. introducing gig-speed internet from xfinity. finally, gig for your neighborhood too. the mummy. mummy. mummy. you think that will work? >> yeah, i love mummy movies. >> you love mummy movies? >> i love mummy movies. >> welcome back to "squawk box." futures right now indicated up

31. nothing happened yesterday. just another run of the mill day. 30.5. s&p up 1.71. and -- 1.71. nasdaq up 2.20. oil prices, one of these days, one of these days something's going to be going on in oil. except, going down. we were ready for it to go up because they were going to cut back on supply. hit 45 again. >> yep. >> it's tough. >> we're producing a ton. usage has not been as strong as had been expected. >> tough business. >> it's good if you're a consumer. it's great at the gas pump. >> it is. we need gas tax. >> i'm actually in favor of this. >> i'm not. >> see, he can't be. >> how can you not be in favor of that? it's a tax -- not a tax in the world you haven't loved. >> infrastructure use tax so that we can actually get our roads back -- >> working people. what are we going to do about the working people -- >> you -- >> by the way, the gas tax as it

already exists was indexed to inflation 0 so we're charging people less and less and less. >> i'm talking about the families in middle america, who need to make it to work every day, joseph. >> we need our infrastructure. we need our infrastructure improve sod we can become a more productive soviet -- >> now you just know -- you know what the total liberal progressive take on everything is, and you just adopt it as your own even though you don't believe it. you're like turning into me. you're a sociopath. >> so you are for a gas tax? >> i'm sorry. >> you are for a gas tax? >> oil. we got to do it somehow. we've got to pay for it somehow. the only reason i'm not for it is because politicians are so dishonest, that they never use it for what it's earmarked for. >> ed rendell told us there are ways to put knit a lock box -- >> oh -- >> put it in a lock box and make sure that it's only used for transportation -- for infrastructure needs. >> al bore. >> in washington news, president trump tweeting this morning, after yesterday's james comey

hearing, the president saying, despite so many false statements and lies, total and complete vindication, and wow, comey is a leaker. john harwood joins frus washington with his take on this. john, good morning. >> good morning, becky. but just before i get to that report, i just want to make sure we don't bury the lead. the did joe kernen just admit that he was a sociopath? >> he's done that before. >> many times. >> many times? >> aren't we all? >> no. >> really? okay. that's -- you know, the first step out of the twelve is accepting that, you know, what you are and that there's a higher power and you have no control over it. you're not a sociopath? >> well, i -- i -- i admit that there's a higher -- no, no. i admit there's a higher power. >> i'm using it as a compliment. in this case. not as a pejorative. >> i admit there's a higher power. >> john, could you -- i can argue both sides of any issue. you're right, i don't think you are -- have that ability actually now that i think about

it. i can, you know, i can go -- you know, i can make -- i can present positive aspects of both sides. >> he's talking about from a debate perspective. >> which we have to do in this business. >> i agree with that. >> okay. >> we definitely have to do that in this business. >> okay. >> well, let me -- let's talk about what happened yesterday, as you indicated, becky, president trump is back on twitter after remaining silent yesterday. he claimed total and complete vindicati vindication. he suggested that james comey had made false statements and lied. his aides yesterday had said that james comey, or his son, donald trump jr., had said the president had been vindicated by james comey acknowledging publicly that he had told the president, as the president had claimed, that he was not under investigation at the time that james comey was heading the fbi. but james comey responded, during the hearing was, the

president's side can't have it both ways. they can't claim vindication from parts of his testimony, while disputing others. he said you have to take all of it as a whole. take a listen. >> i think people should look at the whole body of my testimony. because as i used to say to juries when i talked about a witness, you can't cherry pick it. you can't say i like these things he said, but on this he's a dirty rotten liar. you got to take it all together. and i've tried to be open and fair. and transparent and accurate. a really significant fact, to me, is so why did he kick everybody out of the oval office? why would you kick the attorney general, the president, the chief of staff, out, to talk to me, if it was about something else? and so that -- that, to me, as an investigator, is a very significant fact. >> and james comey went on to say during that testimony that he believes that robert mueller, who has now been appointed special counsel, is, in fact, investigating whether or not

president trump obstructed justice, and the state of mind that led the president to order others out of the oval for that conversation with james comey, is something that, as he just indicated, he thinks is relevant to that investigation, and it's a big problem for the white house, guys. >> okay. john, we appreciate it. always good to see you. we want to continue this conversation right now. joining us is john malcolm, former deputy assistant attorney general in the george w. bush administration. he's now with the heritage foundation. good morning to you. your reaction to having watched mr. comey yesterday. >> well, i think that there was something in this for everybody. so if you are a republican, or if you're the president, you're very happy with the fact that jim comey made it clear that he told you you were not under investigation. comey also said that he viewed the flynn investigation, the russia investigation, as separate. and that nobody, not the president, not anybody in the intelligence community, tried pressuring him to end the russian investigation. he also dinged up loretta lynch pretty badly in terms of saying that he was confused about her

wanting to use language that the clinton campaign was using to describe what was going on with respect to the e-mail server. and also i suppose you're happy at the fact that jim comey outed himself as the source of a leak of his memos to "the new york times." on the other hand, jim comey also said, look, i, for the first time in my career, i started taking notes, because i had doubts about this guy. and i thought that he might lie about our conversations in the future. he talked a lot about this valentine's day meeting in the oval office. he said, you know, i was left alone, and jared kushner and jeff sessions looked uncomfortable about leaving me alone and i walked in and i thought i was going to a job interview and i was asked about loyalty, and the president said, you know, look, i really hope you can see it in your heart to let flynn go, he's a really good guy. he thought that this was -- that this was pressure, and that later on, of course, he was fired. i will add one other thing that was good for the president, which is that after that meeting

comey said look, the president didn't contact me and talk about flynn again, and, in fact, in a later call, he said, look i want you to go out there and tell the public that i'm not under investigation. but of course if any of my satellite associates, were the president's words, satellite associates did something wrong, i want you to find that. so there was something in there for everybody in order to score their political points. >> john, this loretta lynch thing, does it make it better or worse for trump? some people who would say it makes it better because it deflects some of the attention, suggests that maybe this type of pressure, this is what goes on in the swamp all the time. there's others that would suggest this actually makes comey's testimony, oddly enough, even more truthful, which is to say if you thought he was being pressured in this instance, the idea that he was admitting also being pressured in this other instance, makes his testimony more powerful. >> you know, either one of those is plausible. i don't think -- i didn't hear him say yesterday that he thought that loretta lynch was pressuring him. but certainly she was, at the

time the decision maker, and it was clear that hillary clinton was under investigation. and he thought that he was confused and concerned at the fact that they were going to go testify. saying no, no, no, you shouldn't refer to this as an investigation. call this a matter. which is what the clinton campaign was using pip don't think he went so far as to say she was being pressured. >> john, as a former prosecutor, if you were in your -- in your former role, and you heard this testimony. >> right. >> and we weren't talking about the president. >> right. >> in which case you would be prosecuting in a court of law. >> right. >> and you heard what mr. comey had to say, would you continue your investigation? would you stop your investigation? would you indict immediately? what would you be doing? >> i certainly wouldn't indict immediately. i don't think there would be approvable case of obstruction of justice. at this point you never convince a jury beyond a reasonable doubt. if you were looking at these facts, and all the inferences totally against the president, i guess you would say this, this

is your boss. you are in front of your boss. your boss has told you you have job assurance. that he's now reinterviewing you and asking you questions. came to you, look loyalty is really important to me, and i'm really hoping that you do this thing. this is what i would like to have happen. one could argue that that is implied -- there's an implied threat there. that if you don't do it, something bad will happen. and, threats, obstruction of justice can be corruptly by threat or force. clearly no force. no corrupt intent as far as i can tell. but there are a lot of inferences there. you have to draw them all against the president. they're not there yet. not even close. >> okay, john. we will, of course, i imagine come back and talk more about this with you. of course the big question is whether americans, not just people in the justice world, but that americans are troubled or not by this, given that they -- that congress will ultimately be the judge and jury. coming up, these are live

pictures now, of me. oh, no, no, no. of no that's london, prime minister theresa may has left >> buckingham palace. >> 10 downing street and is on her way to meet the queen. i want to go into that garden. behind the palace. it's impossible to get in there. even wilf -- wilf has been there but he can't get me in there. a live report from there still ahead. want to take my wife and kids. as we head to break, check out the pound. check out the pound right now. still 16 ounces. stay tuned you're watching "squawk box" on cnbc. it's been over 100 years since the first stock index was created, as a benchmark for average. yet a lot of people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? why invest in average?

rumor confirmed. they're playing. -what? -we gotta go. -where? -san francisco. -when? -friday. we gotta go. [ tires screech ] any airline. any hotel. any time. go where you want, when you want with no blackout dates. [ muffled music coming from club. "blue monday" by new order. cheers. ] ♪ how does it feel the travel rewards credit card from bank of america. it's travel, better connected.

the travel rewards credit card from bank of america. say carl, we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $4.95 per trade? uhhh. and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.

coming up, the uk prime minister theresa may arriving at buckingham palace. she's going to meet with the queen and ask for permission to form a government following yesterday's shocking election. stay tuned you're watching "squawk box" right here on cnbc. . i count on my dell small business advisor for tech advice. with one phone call, i get products that suit my needs, and i get back to business. ♪ at crowne plaza we know business travel isn't just business. there's this. 'a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do.

crowne plaza. we're all business, mostly.

but we've got the get tdigital tools to help. now with xfinity's my account, you can figure things out easily, so you won't even have to call us. change your wifi password to something you can actually remember, instantly.

add that premium channel, and watch the show everyone's talking about, tonight. and the bill you need to pay? do it in seconds. because we should fit into your life, not the other way around. go to xfinity.com/myaccount ♪ good morning, everybody. welcome back to "squawk box" here on cnbc. we are live from the nasdaq marketsite in times square. british prime minister theresa may arriving at buckingham palace to speak with the queen. wilford frost joins us from london with a look at what's happening right now. wilf, we've been expecting theresa may essentially to

address the cameras before she headed there. not sure what happened. >> exactly. we're expecting her to do that shortly after now. as you said the prime minister is in there with her majesty, the queen. what exactly is going on? a quick reminder that the roles of head of government and head of state are split here in the united kingdom. a politician can only become prime minister once invited to do so by the monarchs. and by convention, the queen always invites the leader of the party with the most seats in parliament to form that government. that is why theresa may is the one at buckingham palace right now. of course the crucial thing there is all she needs to get that invitation is to have a plurality of seats. so the fact she lost the majority itself doesn't preclude her from getting the first right to form a government. that said, she will still need to explain to the queen how she intends to govern effectively. that's when she's expected to say that she plans to form a coalition, whether formal or tactic with the dup, the democratic and ultraunionist party in northern ireland who got ten seats.

when she returns, freshly reconfirmed as prime minister, she is expected to finally make that speech in 10 downing street. it is going to be fascinating to hear how she tries to frame this re-election when she does address the public, and of course, as she returns we'll be glued to that speech, probably now in around about 30 minutes' time. guys? >> wilf -- >> just look at him. the double decker bus. he's got, you know, parliament -- and just, you know look like, like mr. -- wilf, you've been in the garden behind buckingham palace. but i've asked you to get me in and you've said no. you'd be unable to do that. >> i mean, yes, i'm not sure i want to go -- no, i just can't do it. it's not out of dislike, joseph. it's just the intention, but it's how on earth am i meant to do that? >> you know what? i would, if i were you, i would take a different tack, i'd say yeah, i can get you in there because i've got a lot of juice

but i just don't want to get you in there. admitting that you can't get me in there is not the right -- but i've seen documentaries on it. is it not one of the most beautiful places in all of england, in the way they keep it, and the staff, i mean it's really -- it's beautiful. well i think it should be shared with the public. >> it is open occasionally for certain events if you get invited. but actually, as you said, it's kind of like an oasis in the center of london. you forget this is in the very heart of a massive city. huge garden. often missed is the point that the back side of buckingham palace is many things more beautiful than the front side, which is usually the side that everybody sees in pictures, and behind the back of the mountains. what a beautiful live shot. in fact it stopped raining as it was earlier. but it's now a beautiful day. the sun will be shining. >> somehow. >> in reality that's just a metaphor. >> somehow the sun comes up. and the great things about the uk, will always, you know, we go through all this stuff, but

nothing's going to change about that buckingham palace and that beautiful garden hopefully. >> wilf, has the queen ever said no to somebody who's come and asked if they could start a new coalition government? >> well, the queen, by convention invites the leader of the party to form a coalition government. if she ever tries to do something else it would probably lead to some constitutional crisis. that's where her majesty has some position of statesman, stateswoman, position like that. no real power just sort of soft power. likewise the prime minister has an audience with the queen every single week when she's in government. but the queen is not allowed to give political advice or opinion. so the answer to that is no, she wouldn't ever choose to invite the smaller party to form a government. but, the possibility of that there when it's incredibly close such that there's a tie, assume that that was the case, then the right would -- fall on the former prime minister to make an attempt to form the government

first, albeit, once the queen asked them to do so. despite convention she does it. if she ever didn't then you'd have some form of constitutional crisis and the risk of people asking the monarchy to be abolished. >> all right, wilf, thank you very much. we'll see you again later this morning. >> okay. back here in the united states, there's some corporate news catching our attention. this one is pretty interesting. a 2013 letter that came from uber's city to employees advising them on what he called party rules for a miami celebration. getting a lot of attention because two law firms that are investigating corporate misbehavior at uber have that letter and looking at whether it helped create the party atmosphere that led to cultural problems at uber. the letter to employees begins with a warning quote, you better read this or i'll kick you -- can i say this on tv? you better read this or i'll kick your ass is what it says. quote, we do not have a budget to bail anyone out of jail, don't be that guy. and, quote, do not throw large kegs off of tall buildings, unquote.

quote, do not have sex with another employee unless "a," you've asked that person for that privilege and they've responded with an emphatic, yes, i will have sex with you. i can't believe we're talking about this. and "b," this is all in quotes, by the way, "b," the two or more of you -- two or more of you do not work in the same chain of command, yes that means that travis will be celibate on this trip. also, quote, there will be a $200 puke charge. >> what? >> someone wrote that -- >> all of that. >> let's use this story, and give it to andrew. that's what they -- they really did. it was like -- >> yeah. just to make me feel as about as uncomfortable as possible. >> would you do it again? would you read that again -- >> which part? >> all of it. >> yeah. >> you had to say puke. >> how did david moor do it? >> oh, my good. the person that wrote it would

be fired right now. >> let's get back to other political news this morning. puerto ricans heading to the polls. we should tell you that that's going to happen on sunday. to determine the future of how the island is going tend up being governored. now, here's the story. leslie picker has more from san juan this morning. leslie? >> hey, guys. that's right. there are three things on the ballot this sunday. one is of course statehood, becoming the 51st u.s. state. another is sovereignty. becoming completely separated from the united states. and of course, maintaining that commonwealth status, which is something in between and going to the polls this weekend, it's a particularly interesting time given that the island is currently undergoing restructuring. it's bankrupt. and so we've spoken with a variety of residents here on island to get their take ahead of the vote. and some see sovereignty as the best way because they blame the u.s. for some of the economic malaise they're currently experiencing. while others say that the u.s. could be the best way out of

this economic mess. >> we would want, you know, a bailout i'm not saying very much. i think we need to assume responsibility for what's going on here. statehood is an equal playing field for u.s. citizens that reside on the island. >> the topic is so important to elected officials that they've spent $7 million on the election this weekend. even though they're bankrupt. they were expecting $2.5 million to come from the justice department in washington in exchange for a say over what exactly was on the ballot. but that money has yet to arrive. >> this is not about the money. i mean, it's more than that. keep the money. let us express ourselves. and that's what we're going to have on sunday. >> gonzalez is confident that residents will, indeed, vote for statehood. but it wouldn't be the first time. they actually voted for statehood five years ago when they had a similar vote but of course it requires congress

buy-in to actually become a state. and so far there seems to be little willingness on the part of washington to do that. guys? >> thank you, leslie picker. seems like you got a pretty good assignment there, right? like hardship duty? look at the weather. >> no complaints. >> exactly. see you soon. vice president mike pence helping to wrap up the white house infrastructure week. pence meeting with mayors, governors, and other officials and making the case that no one knows infrastructure better than those at the state and local level. joining us now is one of those local views mike cornet is the mayor of oklahoma city and the current president of the u.s. conference of mayors. great to see you. >> good morning. good to be back. >> we've been going back and forth all week on who knows best how to -- how to approach this. and all politics is local. i would think all infrastructure is local, too. but you need some help from the federal government, certainly funding helps, but maybe it

should be in governor's and mayor's hands. >> i think you're right. local officials are best to know what the needs are of their specific localities but we had a chance to talk to the president yesterday. he said an infrastructure proposal was going to take off like a rocket ship. and of course, mayors and governors want to be on board if that happens. >> then again, i guess some of the really big infrastructure plans, whether it's, i don't know, amtrak rail or something like that, it's between cities. so maybe the mayors just have to be a part of it, not necessarily sphereheading it. >> i would think a state would take care of intergovernmental transportation and local government would take care of inside the city limits. >> okay. so the purview of a mayor is what in terms of, different than a governor or similar? >> different in that the states and the governors are taking care of transportation between one city and town or another. we have 8,000 lane miles of road, and you know, that's a lot of inventory to try to keep up

on. we're also the launching a street car system that we're paying cash but we're talking about some of the transformational projects with the trump administration. which they're looking for, about trying to make it autonomous. and you know, one city invests in a new technology that other cities could latch onto. >> are you a democrat or republican? >> i'm a republican. >> not a lot of mayors back here that are republicans. >> i've noticed that. i keep looking for republican mayors. and i wander the streets aimlessly. >> oklahoma is okay. that's your motto. >> that's right. >> i've lived there for eight years in broken arrow. >> becky's from oklahoma, indiana, new jersey. >> the guy who is from ohio, colorado, massachusetts. >> she -- >> and new jersey. >> everything bogged down, mayor. and are you hopeful something happens with infrastructure? the rocket ship is sitting on the launch pad? >> well i'm not sure that congress is going to prioritize infrastructure to the top of the list and let the dollars come out. they have so many social

programs they're trying to fund. they can't find the responsible party -- >> where do you think we should get the money? >> well, i think they need to reorganize. they have way too many social programs on their plate. they're trying to fund all of those things you're never going to take care of the infrastructure needs. >> meaning it should come from the federal government and not so much the local and state? >> more is going to have to come from all of those segments. but there's a ticking time bomb under the east coast cities of america with the water systems that were designed in some cases 200 years ago, deferred maintenance continues to pile up. so it's a problem. >> the president's budget was looking for this trillion dollars to be spent, 200 billion of it coming from the federal government. and the rest of it coming from the private sector, and the states and local governments. does that make sense to you? >> city like oklahoma city, we've got some matching money. and we're ready to compete. for projects if that's the -- if that's the agenda. we can handle that. there's some cities out there, though, that just don't have the political capital to be able to fund their own needs. and that's going to be a different problem. >> probably a lot of them in blue states.

infrastructure on the east coast and things like that. >> that's right. >> is lefrak around in all this or mostly just the vice president for the -- >> the vice president dwrused it, and then they had cabinet officials to talk to us in breakout sessions and then the president welcomed us in, and there was about 25 governors and mayors and we had a roundtable discussion. the president stayed for about 45 minutes. >> we hear again and again that it's the permitting process which has gotten so onerous that might be an easy way to fix without necessarily money coming in. would that help things in a formal setting? >> it would help. and i think that was the trump administration's main message yesterday. was that they want to remove some of the red tape. in some cases permitting can take 10 and 12 years and they want to get that down to two. which could be a big help for a lot of projects. >> thank you. mayor, appreciate it. >> good to see you guys. >> i like oklahoma. i do. >> okay, coming up when we return, doctor zeke emanuel is going to join us. he's out with a new book focusing on medical organizations that are transforming health care.

lots to talk to him about. stay tuned you're watching "squawk box" right here on cnbc. we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

welcome back, everybody. the senate is working on a bill that would replace obamacare but our next guest says not so fast.

joining us right now is university of pennsylvania vice provost for global initiatives zeke emanuel. his new book is called "prescription for the future: the 12 transformational practices of highly effective medical organizations." and doctor, thank you for being with us this morning. >> it's great to be here again. >> let's talk a little bit about obamacare and the new american health care plan or whatever it's called, the two things that are coming together. you were one of the architects for putting together obamacare. we are seeing some big problems, even just this week with anthem announcing that it's going to be pulling out of ohio. in 2018. that's going to leave something like 18 counties without an insurer there. what's happening? >> well, you have uncertainty created by the republicans and president trump around what is going to happen with the cost sharing stuff, with enforcement of the mandate, and uncertainty means that the insurance companies don't know which way to turn, what the actual financial future is going to be, and to protect themselves.

they're either raising premiums, a lot, or they're exiting markets where they don't think they can play. or there won't be very many participants. and so it's the uncertainty that the republicans themselves have created as really the source of the problem here. -- >>dy did cite the uncertainty as one of the reasons -- >> yeah. >> but said it was the shrinking pool in terms of -- >> but the shrinking pool is also part of the uncertainty. as everyone knows, you need to inform people. you need to advertise people. you need to tell them we're enforcing the mandate, you have to have health care. if you have uncertainty around those, you don't have a lot of advertising to remind people they need to select insurance. not many people are going to go in, or future people are going to go in, so you're not going to have insurance companies wanting to sell to an ever shrinking market. this is all part of the republicans' problem. this is a problem they created, and they are going to have to be responsible for it. they cannot blame president trump anymore. >> of course, the republicans will say, look, this is a

problem that was set in notion by the democrats. this thing was collapsing on itself. and these two narratives are the ones that are going to get out there and people are going to have to decide which side of things they believe. in the meantime, the health care -- the health care overall situation is one that's a bit of a mess. what do you tell doctors, what do you tell hospitals? what do you tell patients? >> well, first of all, we should separate financing from actually delivery of care to patients, and on the delivery of care side, i'm actually optimistic, i was just in a big insurer and everyone is talking about changing how we're paying doctors and changing how they're delivering care. we're in the early stages of that transformation, and what i did in my book is to go around to places that have been doing this for awhile, and do deliver very high quality trumpcare and at a lower cost -- >> but they're actually -- >> that those kind of highly effective organizations adopt. >> and those organizations would

be -- >> just so people know what you're talking about, are you talking about the cleveland clinic? which of these big institutions? >> yes, well, some of them are small practices of just 16 doctors. some of them are bigger institutions, like part of kaiser, or in new york west med, or in chicago, advocate health. and some of them are new, novel companies that are working in particular areas like primary care, or mental health care. >> i've spoken with my doctors about this, and the one thing that i hear from just about every one of them is that it's so confusing. there were so many changes put in place the last eight years it's the uncertainty now we don't know what the new changes are going to be, there's a bit of exhaustion and real concern about where we're headed. how do you fire off those truths, those people on the front line who are dealing with this? >> well what's interesting is that over the last few years before president trump took office doctors were beginning -- and hospitals were beginning to be comfortable. they knew which way the system

was going. they knew that payment was going to change and they were going to have to change and really focus on people with chronic illness and keep them healthy. now, with the uncertainty, no one is sure, you know, 23 million people lose coverage it really changes your game plan. and, you know, what are you going to do to provide coverage to those uninsured people? so i think that is a problem. but we also have to remember, as i point out in the book, there has been payment change put into law. the law called macra that was passed with overwhelming majorities in both the house and senate. it changes how doctors are paid. and this is going to be the driving force to incentivize doctors to deliver higher quality, lower cost care, and the key issue is to try to help doctors understand what changes they need to make to do that. one of the important things i think we're doing more of in the system is very important is we're actually doing performance assessment. how well is a doctor and a hospital performing? and, giving that back to the doctors, and giving that back to people. we've seen a big migration for

example in medicare to much better performing health systems when patients have a choice in like medicare managed care plans. they go to the four and five star plans, not the two and three star plans. and that's incentivizing changes in practices. >> doctor emanuel, thank you very much. we are taking some breaking news, theresa may is speaking right now in london. >> this government will guide the country through the crucial brexit talks that again in just ten days. and deliver on the will of the british people by taking the united kingdom out of the european union. it will work to keep our nation safe and secure. by delivering the change that i've set out, following the appalling attacks in manchester, and london. cracking down on the ideology of islamic extremism and all those who support it. and getting the police and the authorities the powers they need to keep our country safe.

the government i lead will put fairness and opportunity at the heart of everything we do. so that we will fulfill the promise of brexit together. and over the next five years, build a country in which no one and no community is left behind. a country in which prosperity and opportunity are shared right across this united kingdom. what the country needs more than ever is certainty. and having secured the largest number of votes, and the greatest number of seats in the general election, it is clear that only the conservative and unionist party has the legitimacy and ability to provide that certainty by commanding a majority in the house of commons. as we do, we will continue to work with our friends and allies

in the democratic unionist party in particular. our two parties have enjoyed a strong relationship over many years and this gives me the confidence to believe that we will be able to work together in the interests of the whole united kingdom. this will allow us to come together as a country, and channel our energies towards the successful brexit deal that works for everyone in this country. securing a new partnership with the eu, which guarantees our long-term prosperity. that's what people voted for last june. that's what we will deliver. now let's get to work. >> again that's theresa may. again that's theresa may just making her comments after meeting with the queen. and talking to her about forming a new government.

she says that they're going to be moving forward with these same steps that the government -- that the uk voted for last june. coming up with these issues. we will continue to follow this. she says the new government will provide certainty, but obviously, a party much weakened by the results of those elections. when we come back, complete coverage of the global markets, after those comments from theresa may. stay tuned, you will watching "squawk box" right here on cnbc.

this is where i trade andrs. manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.

hey you've gotta see this. cno.n. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote.

the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. a shocker in the uk. british prime minister theresa may fails to secure a majority for the party but this morning she's looking to form a coalition government.

a live report from london straight ahead. comey aftermath. president trump takes to twitter just one day after the ex-fbi chief's senate testimony. plus the ceo of uber in the hot seat once again. details about the wild letter he sent to employees as the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york, this is "squawk box." good morning and welcome back to "squawk box" here on cnbc live from the nasdaq marketsite in longacre square. what it used to be called before -- >> before it was called times square? >> times square. >> for "the new york times." >> yes, sir. >> you hijacked a name for, you know, i just -- i don't need to go along with that just because you -- >> it's been called times square for about a century now. >> longacre square. i'm joe kernen along with becky

quick. i remember when i was called longacre -- >> just waiting for that. >> becky quick and andrew ross sorkin. the futures right now, after all was said and done, i mean, the sun had to come up after what happened in the uk. the sun had to come up after what happened with comey. so the sun, it came up again in that 47 points. the nasdaq indicated up six. and the s&p up about 4. let's get a check on currencies. that's where some of the action was following the surprise vote yesterday. there won't be a third time when someone over in the uk says, you know what? i'm going to try and consolidate dsht >> i don't understand the psychological -- i get the psychology but after watching it the first time, why would you even try it? >> and believe the polls don't matter. >> i'm sick of this brexit talk i'm going to put it to rest and take a vote so once and for all and then they do it and same thing -- >> they did put it through. >> they did. >> anyway, the pound got hurt. but remember when brexit was

first, when it happened it was down at 120. almost 130, and now pulling back a little bit. but there's the european markets all green. so go figure. >> as we mentioned, british prime minister theresa may just announcing her intention to form a government, just minutes after the meeting with the queen at buckingham palace. wilfred frost is live in london he has more on this story and joins us right now. hello again, wilf. >> hello again, becky. yes, indeed, so the freshly reconfirmed prime minister theresa may just speaking at 10 towning street. let's take a listen. >> i will now form a government. a government that can provide certainty and lead britain forward at this critical time for our country. this government will guide the country through the crucial brexit talks that begin in just ten days. and deliver on the will of the british people by taking the united kingdom out of the european union.

crucial bit of news, saying that the brexit talks will start as planned in ten days' time. but this was a lot briefer than her speech eleven months ago when she became prime minister for the first time and a lot less convincing with a very similar set of objectives, despite this stunning failure of her campaign recently. no one should be left behind. prosperity and opportunity shared across the country. the country needs certainty. we've heard that before. she hasn't changed her tune. and most importantly, she's delivered that message today, with far less authority behind her than when she stood there eleven months ago. of course, the reason for that lack of authority, or falling authority is that she narrowed the support of the dup something she did acknowledge saying she's confident that they can work together. the other thing she said at the top there, she'll now form a government to be focused now on how the cabinet comes together around her. whether that's this afternoon, or over the weekend. couple of months ago when people thought she did a 100 point lead

were expecting a big reshuffle promoting the loyalists in her cabinet and getting rid of those. in fact the chancellor was rumored, philip hammond to be on that list that challenged her a lot. but the expectation now is that she does not have the authority to massively change the cabinet around her so we'll be surprised if some of those big figures weren't returned to their jobs. stability is what she has to go for from here. >> which brings us to the question of how stable she is. you pinned it several times. she's speaking with less authority. she's not going to have the power to do some of the things she wanted to do to shake things up but wilf we're still trying to get our head around how your politics work on some of these issues. overnight the new was maybe she would be gone by the time you woke up and read some of these things. how stable is she at this moment? and what kind of twists and turns could we see from here? >> the most important to remember is she is prime minister again. and of course, that's just been confirmed. whereas before people were wondering how many seats they'd

end up getting and whether she could get over the line, whether it requires support of another party or not. all of the other leaders have called for her resignation. jeremy corbyn has. nicolas sturgeon who came third but they don't really matter anymore. with the dup she has got over the line and the queen has asked her to become prime minister again. so her strength from here really relies on her own mps. do they want her to continue to lead them, or are they really frustrated with the campaign she's led and will they look for her resignation in due course? that's going to be the question. but today, clearly, they've decided they also want to go for stability and they don't want to rock the ship further than they need. we'll have to wait and see now whether that lasts for a full parliament, five years, or perhaps a matter of months. >> okay, wilf thank you very much. >> let's bring you up to date on some of the big stories of the day. sachs fifth avenue company

hudson bay says they're going to be cutting around 2,000 jobs. the canadian department store operator posted a steeper than expected drop in retail sales. just the latest example of one of the retailers in this country, and across north america that has struggled. softbank announcing it will buy two firms that will build walking robots from google's parent alphabet. the firm's boston dine 578ics, and design robots to stimulate human movement. terms of the deal were not disclosed. just in terms of what it means both in terms of what google was doing, and softbank making a real long-term investment on all sorts of things and new technology. also, cloudera shares down sharply. top and bottom line results better than expected but the company's operating expenses more than tripled, and sales in marketing also doubled. now to politics. our next guest is part of a small group of republican congressmen who dined with

president trump at the white house this week. representative lee zeldin, welcome. that's ancient history. what day was it? >> right. that was way back on like tuesday night. that was a lifetime ago. >> that was. that's a couple of lifetimes, they -- did you talk about the upcoming comey testimony? did the president talk about it at dinner? >> no. not at all. didn't come up. >> didn't come up? what was the main topic of conversation in -- did it make you optimistic that a republican controlled house and senate can ever actually do anything? >> well, the conversation focused primarily on foreign affairs. almost entirely, not entirely, but as the president returned from his most recent trip abroad he had a lot to talk about. we were talking about dozens of different countries, primarily middle east, asia, and i was

really impressed with seeing over the course of the last few months he certainly absorbed just all -- so much information about foreign leaders, economy, trade, leverage, the principles that we operate under here in our country, diplomacy information, military economics. so that was what the conversation focused most heavily on. but we got a little bit into domestic issues, as well. >> what do you -- that's what i'm getting at. i mean i don't, as a business channel, thought, you know, that the foreign trip went well and it's always interesting to talk about all of this. we're really more focused on, you know, the growth initiatives that have added -- some people said helped to add $3 trillion to the stock market. it needs to be followed through. also 2018, you guys got to do this every two years. some think it's crucial that you guys can demonstrate the ability to govern, not the ability just to obstruct. that's why i want to focus on

domestic initiatives. can you give me a chronology of how it's going to work? does anybody know? is tax reform going to be just a tax cut without obamacare repeal? or do you think the senate can get its october together and do something before next year? so coming back closer to home we did spend a little bit of time talking about health care. that dominated the domestic part of the conversation. right now, the senate is ledge lating or trying to come up with an agreement on their side where they could get 51 votes in the senate through budget reconciliation. there are reports out this week that those conversations are going well in the senate and they believe that they're getting closer to having 51 votes. so whatever the difference is between the house and the senate we'll have to go to conference. but i would love to see the senate be able to pass a bill as early as this month. go to conference, and put something on the president's desk, as i'm sure you're very well aware of passing health care can give us additional

money that's needed for tax reform. we want to be able to reduce the corporate income tax rate. we saved several hundred billion dollars towards a tax reform effort to help pay for it. so in order to reduce the corporate income tax rates about one point for every $100 billion. tax reform right now is in the house ways and means committee. they're doing hearings, getting ready for markups. i love to see the house pass tax reform by sometime this summer. be great to see the senate pass tax reform before the end of the year. in order to increase gdp, to help encourage american businesses to grow, to stay here, we need to improve our tax policy, regulatory policy, trade policy, tax reform, it's all going to be huge. it's going to be huge for not just on the corporate income tax rate and simplifying our tax code, but also for, you know, average everyday, middle income hard working americans who need tax relief. so on all fronts, that's key to

being able to improve our economy. it would be great to see it done as far as tax reform by end of the year. as you know, we passed choice act yesterday in the house. to improve the manner in which the financial industry is regulated to provide more access to capital, better financial products to consumers. >> congressman let me ask you something that, you know, that the cable news network, something with a little meat, little sizzle, that we need to do. so you saw the testimony yesterday, or at least have heard about it. it's the fervent hope, supposedly an objective question about whether certain wishy-washy members of congress abandon the president some day. but that's what we're hearing. i think mostly from democrats. that at 2018 gets closer and the lebz gets closer, that if it gets bad enough a lot of these guys that are in, you know, purple states, or blue states are going to start distancing themselves from the president. have you heard -- from what

happened yesterday, and you know, comey's calling the president a liar, and you know, there's obstruction of justice charges, do you think it's likely that you will see members of congress start to distance themselves from president trump at any time soon? are you hearing that? are you feeling it? >> i think it's very important for us to be working closely with the -- not just with our colleagues in congress, but with the president of the united states to accomplish our legislative agenda. whether it's appropriations, it's getting tax reform done, health care reform. it should be full steam -- >> i've got to turn it over to my -- the prosecuting attorney. >> no, no, no, no, no. i just want to know, congressman, given what you heard yesterday, was there anything that troubled you -- >> that's not -- it's just -- >> you did it in a different way. was there anything that troubled you about the conversations that the president had with the former director now of the fbi?

>> i think it's very important for there to be independence for the department of justice, for the fbi, when ever they need to pursue anything on any investigation. and protect the independence is important. so, where you see that in any way adversely impacted that's always going to be cause for concern. listen, there's -- for anyone who watched yesterday's hearing, especially for someone who might be most partisan on one side or the other, there's plenty to dissect with yesterday's testimony. >> did you believe him when he suggested that he was directed or he didn't use the word ordered but he cheerly felt that even the phrase i hope when the president tells you something to do, that he hopes something is going to happen that he thinks he's being told this is what i'm supposed to go do. did that trouble you? >> this president is certainly not a politician. that's not the way that i would have worded it.

you know, fbi director comey clearly, you know, he still stayed on course. he didn't at the time find it important enough to report it. but you know, when you get several months later, after the director is removed and is testifying before a senate committee. >> right >> 234e7b they start trying to analyze what the word hope meant and what the emotion was that was being felt, but well i could say, you know, the choice of words might concern me that it's different than a legal analysis. >> right. we've got to go, but were you troubled by clearly whatever conversation may have taken place between comey and loretta lynch? absolutely. you know, loretta lynch put herself in a difficult position when she had that heating with president clinton, as far as -- >> can i ask you how you could be troubled by one and not the other? >> i was going to say, where was that question? >> it was like -- >> no -- >> you should have been watching

the show earlier. this is the fifth time -- >> no, again, i just spoke to you about, you know, what i saw wasn't the words that i would have used in the oval office, and we need to have independence. and as far as what happened back then we need to have independence. and that's as it relates to the investigation with heldry clinton as well. i also don't believe the director hud have been, you know, going to, you know, "the new york times" to an end ter immediate year with regards to his -- there's plenty to be upset about. >> thank you. >> if we hadn't had the election and hillary was still in the game. you would not be -- of course you'll throw her under the bus now with loretta lynch. they're gone. you have a sitting president -- >> no, no. principles. >> oh, principles -- >> i don't like -- >> they're terrible. >> it's principles. >> thank you, congressman. we're going to talk more about --

welcome back to "squawk box" everybody. let's take a look at shares of snap this morning. citi downgrading the parent company to buy from neutral. among the reasons they're saying that the pace of growth and monetization may not be as fast as they had thought because in

part slower than expected rollouts of new channels for platforms. that stock is off by just over 1.8%. rico has released a 2013 letter that's getting a lot of play. a lot of people sending it around to everybody this morning. if you haven't gotten it, recode, i'm going to tell you about it. it's probably not work safe for some of the things i'm about to say. if you've got kids around. here we go. coming from unceo travis colinic sent to employees advising them on party rules. the e-mail getting attention because two law firms are investigating corporate misbehavior at uber. they're looking at whether it helped create the party atmosphere. the letter to employees begins with this warning, quote, you better read this or i'm going to kick your ass. among the warnings in the letter, quote, we do not have a budget to bail anyone out of jail, don't be that guy. quote do not throw large kegs off of tall buildings. quote, do not have sex with another employee unless, "a,"

you've asked that person for the privilege, and they've responded with an emphatic yes, i will have sex with you. and "b," the two or more of you do not work in the same chain of command, yes, that means that travis will be celibate on this trip. also, quote, there will be a $200 puke charge. some people might be getting charged right now after reading the letter. anyway, it's sort of remarkable for a company in this day and age that this is going on. but here we are. >> your read on this the second time was far superior to the first time. >> i appreciate it -- >> you were very hesitant to even read it. this time it was ambitious. >> i was a little anxious the first time around. >> this was -- this was good. >> well, thank you. i -- i appreciate that very much. >> so that's the kind of a reminds me of a boom-boom room time mentality from a few years ago? >> but this was a start-up. i'm not -- i don't want to, you know -- >> i'm trying to say that i'm

not -- i mean, i'm -- you know, i've seen worse. you know. >> right. >> and my sensibilities aren't totally, i'm not like oh, that's horrible. necessarily. >> no, and by the way, this back then was a small little company. like was starting up. they were all young people in their early 20s. i understand that. >> it's the sort of thing now because of the issues that they've been going through over the last year. >> but now it's a big enterprise. big valuation. big investors. so, a lot more. >> i wonder if he's ever seen someone throw a keg off a tall building. >> i suspect he has. >> that is a bad idea. very bad idea. >> when i was in college i saw a keg go off a short building. not a tall building. but i've seen things -- >> you don't want to hit someone with it. >> i know. you have to be very careful. i didn't throw the keg myself. >> i didn't say -- >> i just -- >> all right, coming up, more fallout, more on the fallout from comey's testimony. jim comey's testimony on the hill. plus a piece of apple history is

on the auction block but it's not a phone or a computer. it's a pair of sneakers. we're going to tell you how much it will cost you if you want to buy those. "squawk box" will be right back.

welcome back to "squawk box," everyone. we have the first reaction from president trump after yesterday's james comey hearing. the president tweeting earlier

this morning, just like so many false statements and lice, total and complete vindication. and wow, comey is a leaker. joining us right now is graham allison who served as assistant secretary of defense during the clinton administration. he's currently the center of harvard's center for science and international affairs and also on the advisory boards of the secretary of state, the secretary of defense, and the director of the cia and sir thank you for being with us today. >> thank you for having me. >> you've been around all of these areas in the intelligence community for a very long time. what did you think of james comey's testimony yesterday? >> well, it's still -- i think you can see it all playing out a little bit like a theater. i think in the backdrop of everybody's mind, including comey's, is watergate, and i suspect that he reversed very, you know, more than once for his presentation. i thought he passed. but, there were a few moments

there where you could see him wondering whether he had stated a matter just right. he certainly worked very hard on that letter that he presented in advance. but i didn't -- don't think i learned much from it. >> for those of us who are not as steeped in washington experience, it was a little eye-opening. the idea that he was kind of throwing shade not only at the current administration under donald trump but also the previous administration with candidate clinton and with president obama and some of his people in play. is that really the way things work? that politicians everywhere are trying to spin you, those who are political appointees are trying to spin you and it's your job to try and filter it all? >> a little bit, yes. i think that one shouldn't take anything at face value and i think comey's largely trying to protect his own reputation. i mean, he was fired. he feels very badly about it. he didn't speak up previously. he didn't speak up, or he found himself conflicted after the clinton/loretta lynch bit. that's a very difficult job.

extremely difficult job. but -- so i think we should, each of the parties, think of them as advocates as opposed to telling the truth. >> does this lead to any changes on any of these relationships, any showing effect on how those political appointees might treat people in these positions? or is this just going to be business as usual after this? >> well, i think unfortunately, part of the dysfunctionality of washington today, that was a fact long before donald trump showed up, but that's now gotten more extreme. and i think unfortunately, it's just terrible for us as a country, and for the way that the country governs itself. so i think there's some deep problems here. but i think these are symptomatic. >> the intelligence community is under assault to a certain extent. a lot of their ways of doing sbris been questioned. has that had an impact on how

they go about their business? >> well, part of the dynamic between the president, and the intelligence community now is that he came in and started by being extremely critical of the intelligence community, and of the fbi. and surprise, agencies, and people that are spending most of their time trying to protect the country, doing their jobs, sometimes well, sometimes poorly, they certainly deserve to be criticized in some domains but they don't like being criticized, especially by somebody who's just arriving. so you can see some of that in the back and forth. i think the president ought to, and he's beginning to understand, he's dependent upon, as we all are as citizens, upon most of these people who are serious professionals doing their job every day, doing their jobs to the best of their ability, and part of the job of the president is to appreciate what they're doing. criticize them where they make mistakes, which of course they do, as the leaders of their own

agencies do. but i think some part of what you're seeing in the dynamic is a president who didn't really understand the situation when he came in, was highly critical at the beginning, and you're seeing some pushback. >> part of what comey said yesterday was very rapid fire. he took questions and answered questions about what the russians have done with this last election. that he believes they were involved. yes. does he believe that they will be involved in the next elections that are coming up, in the midterm elections. he said yes. he is certain, based on what he's seen, that that is the case. are you convinced of the same based on what you've seen? i haven't seen the secret information about this. i certainly know a lot of people in the intelligence community, including jim clapper who is the director of national intelligence, and i think the fact that both comey, when he was in the job, not, you know, in his current role, but when he was doing the job as fbi director, and jim clapper, and

mike rogers, the head of nsa, the fact that all of them say they were highly confident that the russians were meddling in the american election leads me to conabsolute that's the way, and i would say that's 99% plus the case. >> what have you been surprised by in terms of our alliances, or our relationships with other nations just over the last few months? anything that caught you off guard? or have things gone as you had anticipated? >> no, i think that there's a lot -- there are surprises every day. donald trump ran a campaign basically making china the boogeyman for everything. so basically demonizing china. we have a good relationship with china. i like the second position a little better than the first. neither one of them is very nuanced. and the russian story, which is more complicated, the trump instinct that says that he said during the campaign, we need to have a working relationship with

russia, because russia has a nuclear arsenal and we need to worry about every day. if we get in a war with russia we could all be dead. so that's the kind of issue i worry about a lot. here's the case that our relationship with russia deteriorated seriously after ukraine. and after, in the area of nuclear security, which is what i care about the most. president obama's decision to cut off cooperation with russia as a way of punishing russia, even in the nuclear domain, and even in military conversations, i think was a big mistake. trump's instinct to try to improve that i think was correct. but the way in which the russian meddling in the american election, plus the way that's interacted in our politics has prompted the new guy in town trying to find his way i think has made that more difficult than actually that's a disappointment for me. >> all right. mr. allison, want to thank you for your time today. >> thank you for having me.

>> all right. one of the stories front and center, british prime minister theresa may announcing that she's going to form a government with the support of northern ireland. democratic unionist party, dup speaking outside 10 downing street in the last 30 minutes she confirmed brexit talks about begin in ten days and she intends to lead the uk out of the european union. now the pound is down about 1.5%. and you can see where it's been ever since we heard the news or found out what happened. in corporate news shares of lexicon pharma are rising this morning. the company announcing its diabetes drug has succeeded in a third late stage study. endo shares are getting hit after the fda instructed the drug company to remove pain reliever oponair -- andrew i need help. seems like they split it up on the teleprompter. opanaer from the markets. this is the first time --

>> oh -- >> oh, so it's a dash. it's a dash. it's not part of the word. put a little dash in there. the regulatory agency has asked the company to pull an opioid medication from the market. >> okay. you may not remember this, but apple dabbled in retail once upon a time. one of the most coveted items the tech giant ever produced were these vintage sneakers, check them out right now, featuring a rainbow apple logo. this is totally old school. here is your chance right now to take a walk in some of that apple memorabilia. there will be auctions on ebay, with a cool starting price of $15,000. you could buy these or the easy sneaks. the private vendor behind the auction says they may be valued closer to $30,000 actually. the sneakers never left the prototype stage. were only given to employees. so if you are a sneaker head this morning, this is your big chance. you've got to be a tech head and a sneaker head i think. >> when we come back we're going

to talk market strategy after the uk snap election and prime minister theresa may's speech. right now, though, as we head to a break, take a look at what's been happening with u.s. equity futures. it's been green all morning long. this comes after the dow set a new record during the trading day yesterday. right now dow futures indicated up by another 42 points. the s&p up by 3. the nasdaq up by 5. stick around. you are watching "squawk box."

good morning, everybody. welcome back to skwk here on cnbc. we are live from the nasdaq marketsite in times square. we're watching shares of pandora this morning which have been trading higher in the premarket after sirius xm said it will make a $480 million strategic investment. sirius will get three seats on pandora's board including a chair. kkr will terminate its investment agreement with pandora. that stock is up by 1.6% right now. >> let's get back to the markets. joining us now chief fixed income strategist at janney, montgomery scott looking over here so i get this right, cinch

and covering currencies, bob cinch. you know, i'm such a global type guy and i'm so parisian i was going to say cinch but i asked the producer and it's cinch i'm just going to leave it at that. global strategist at amherst pierpont securities. guy, like a lot of people who keep telling me that inflation is not going to be a problem you think it's a temporary respite and we shouldn't get too complacent about things so the fed is on the right track? generally speaking, yeah. the truth is in the last seven or eight years all of the statistical models, all of the economic models have done a horrific job of predicting inflation. so, most likely, the best way to statement where it's going to hit over one or two or three-year time frame is take a straight line from where we are today, which is called about 1.5-ish percent on the pce, all the way up to 2% and draw in that straight line. we've had a couple of bad months in terms of downside inflation

risk. but these data in the short term tend to ebb and flow. there's a lot of one-time items in there. that could essentially drift higher. that said, a lot of that is already priced into the market. the markets are not projecting 1% inflation years from now. >> bob, we're talking rates but you like currencies, as well. and you at this point you think the dollar is headed higher not lower anymore. even though we've had a nice -- for exporters it's been not a horrible three to six months for the dollar, right? it was the worst case didn't happen with the dollar strengthening. >> absolutely. you know, i think that one of the things we've seen in some of the hedge fund returns, the market was very bulled up on the dollar late last year. the inflation numbers weren't picking up. there were expectations of a lot of fed tightening, strong growth, and a very bullish market that was very heavily tilted towards long dollar positions. and as we know markets like to wash out positions and that's been one of the big washouts i

think in the first half of the year. but i think we rehearsed that now. the markets have been bearish on the dollar, positioning has shifted and we think the fed is going to follow through with rate hikes, growth is better, so we think the foundation is much better for the dollar in the second half of the year. not dramatic but probably regaining much of what it lost in the first half. >> what's your favorite trade? what did you make of what happened to the pound yesterday? did that get your attention? >> you know a couple weeks ago i was talking with some folks and said that short pound was my favorite at the time against the dollar. not so much because of the election outcome, which certainly contribute to that. but i do think the uk economy is beginning to struggle pretty significantly. the inflation numbers are picking up. real wages are stagnating. so i think the uk is going to have a tough economic slog in the second half of the year. at the same time that the u.s. looks better and i think at one, you know, close to 1:30 it was a

good sale of the pound. i think given the uncertainties now, we would continue to be short the pound against the dollar. >> all right. so, guy we've got a little time left. in summary, i mean how would you position yourself in terms of fixed income right now? if you were -- if you had to have that -- if you had to have that as an asset, where would you go? >> i'd be a little bit shorter on the curve generally speaking because i think there's some upside risk to the long end of the yield curve sort of echoing that stronger dollar in the back half of the year. i'd be very, very cautious on the u.s. high yield markets right now. spreads are very tight and at these levels you tend to see a high probability of negative returns 12 or 24 months down the road. not because it's going to be some day default blowups but more likely just because valuations shift. it's kind of an echo to what we're seeing in equities as well. >> so you know, whenever we price moves in the fed, we do terminal pricing for where they're eventually headed.

in this -- the different arena that we're in right now, what's the terminal pricing for fed funds this cycle do you think, guy? >> so this cycle my best guest for what terminal pricing is is going to be about 150 or so. that's just a handful of more rate hikes. i expect some of the outer period rate hikes and what would be hikes in 2018 are replaced by slightly faster pace of balance sheet shrinkage built in right now. one note about that, that theme if the federal reserve is successfully able to execute that balance sheet might cause a yield curve to remain steeper than it has historically, right when the economy is slowing down. >> okay. that could make both of you guys french. are you french bob? guy lebas is a cool -- >> of course. >> that's a cool name. what about cinch? >> yeah, that's a derivative, actually of a german name. >> oh. >> those things happened at governor's island. >> i could make you french. >> yeah. >> but next time we may do that

just to make you a little more cosmopolitan. anyway, thank you, gentlemen. >> thank you, joe. >> okay still ahead this morning, will the trump/comey saga derail the president's agenda. former u.s. trade rep michael froman is a confidant, and confidence that nafta renegotiations could happen as soon as next year. he's going to join us. >> he's not a confident -- >> he's my confidant.

so you miss the big city? i don't miss much... definitely not the traffic. excuse me, doctor... the genomic data came in. thank you. you can do that kind of analysis? yeah, watson. i can quickly analyze millions of clinical and scientific reports to help you tailor treatment options for the patient's genomic profile. you can do that? even way out here? yes. even way out here.

welcome back to "squawk box." nafta negotiations set to get under way in the coming weeks with the hope of having something on the table before 2018. joining us is former u.s. trade representative under president obama ambassador michael froman. good morning to you, sir. >> good morning. i thought you were speaking french there for awhile. >> you know, we're all trying -- i called you a confidant. so we have a bug by the way in the studio? i apologize about this. and i'm waving it away. i'm not waving you away. >> there, it's right on you. >> there it is. >> anyway, back to nafta. help us understand what you think is going to happen over the next couple weeks? >> well, the trump administration has told congress that they want to renegotiate nafta. and sometime in the next month or two, they will lay out their precise objectives for that negotiation. so that will be our first important data point. i think the question in terms of

how fast this will go really depends on how ambitious they are and what they're asking for. if they are seeking to negotiate basically what we got from mexico and canada in the context of the trans-pacific partnership, i think this could go pretty quickly and get it done before the mexicans, in particular, find themselves wrapped up in their election campaign next year. if they're asking for a lot more or fundamentally restructuring nafta or our trading relationship, then it seems very doubtful that they'll get it done this year. >> ambassador, read the tea leaves in terms of what we've heard both from the president and people like wilbur ross and others in terms of how big a restructuring you think that they have in their minds? >> well, secretary ross and others in the administration have said that they see the trans-pacific partnership as being a baseline, a foundation, from which to build, and they released a paper a few months ago that looks very much like that. but it's been pretty quiet since then. and the president himself has not been terribly specific about what it is he thinks is wrong with nafta or tpp and what he is

to do to go beyond that. >> ambassador, one thing wilbur ross told us on this program is that he would like to see a change in the rules of origin, to tighten things up so it doesn't look like things are coming from china, getting dumped in mexico and then brought across the border under nafta. is that a doable change? >> you know, i think it may be doable. but you have to be careful not to have unintended consequences. if you say that a product has to be made 80% in the united states, or in north america, to count under nafta, the companies will say, well, since the tariffs into the united states are so low, i'll just avoid nafta altogether. i don't have to live with the 80%. and i'm happy to pay the 2.5% tariff on automobiles, for example. if you make it so expensive for them to produce a product in north america, in order to take advantage of it, they may just skip the tariff relief altogether and export to the united states even with the tariff. >> could we ever change that 2.5%? because that's something the secretary from mexico pointed out to us earlier this week that

they would use that as leverage against us. you know if we change things, they'll change things. can we change that 2.5% tariff >> we can't change it without running afoul of the w.t.o. if we raise tariffs it gives other countries an excuse to retaliate against to retaliate . or to immitate us and raise tariffs as well. >> ambassador, i'm just curious, your take on all of the comey stuff, all of the russia stuff and whether you think that's going to hamper or slow down the conversation we're having here about nafta or frankly anything else? >> well, look, all i would say is legislation -- difficult legislation is hard to get through congress under the best of times when everyone is pulling in the same direction. when you have other distractions out there it's much more difficult to get things own. >> a member of the previous administration what did you think of loretta lynch/comey stuff? >> you know, i don't have any

insights into that, i'm afraid. >> okay. i thought i'd try. >> you tried. >> good to see you. >> thanks for having me. >> insight, obviously, what you thought about it. he probably didn't think it was great. right? >> it's hard to think either of those things are great. >> when we come back, jim cramer will join us live from the new york stock exchange. in the meantime, check out the futures. the markets have been indicated higher. the dow is up by 37 points and the nasdaq is up by 4 1/2. "squawk box" look right back. -w? -we gotta go. -where? -san francisco. -when? -friday. we gotta go. [ tires screech ] any airline. any hotel. any time. go where you want, when you want with no blackout dates. [ muffled music coming from club. "blue monday" by new order. cheers. ] ♪ how does it feel the travel rewards credit card from bank of america.

it's travel, better connected. i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound) i won't. ♪ to err is human. i won't. to anticipate is lexus. experience the lexus rx with advanced safety standard. experience amazing. it's been over 100 years since the first stock index was created, as a benchmark for average. yet a lot of people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? why invest in average?

down to the new york stock exchange, jim cramer joining us now. i never know with you, jim. it's usually something that i have missed and it's about an individual issue because you follow 18,000 individual stocks and you know exactly what's happening. so is that where you are today? should i bother to ask you about comey or brexit or theresa may? >> well, look, i take my cue, theresa may, theresa may not. comey comatose right now. nvidia, stock going up.

>> that's what i meant. >> data center. then we have that incredible deal. the dupont fieb rose deal is a big deal. this is the change of how we get our information. you have to be -- you're going to get everything from the data center and cloud. get off my cloud, comey. >> and i was watching last night, candies. >> yeah, the growth is king. and graham ellison, still the best book about foreign policy i ever read. >> all right, jim, it's friday, you know. >> i know. i know. >> the sun came out. >> that means it might not rain as much this weekend. life is good. we're good. the world's still spinning. >> exact amunn doe. perfect. i'm going on my peloton today. >> i have one of those. which of the people do you like best? i like that one -- there's a couple of people that i like more than the others.

she plays music. >> it would be sexist for me to talk about who i liked. >> no, i meant as a -- as someone who motivates me. she says i do a great job. i'm really cooking and stuff. >> well, you have to move up. you have to move up. my wife moves up. me, i leave myself up. peloton is incredible. >> all right, jim, see you in a couple of minutes. "squawk box" will be right back. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

welcome back, everybody. today is your last chance to bid on a power lunch with warren buffett. the proceeds will go to benefit glide to try to alleviate suffering. the winner can invite up to seven friends. & 13 hours left to go find the auction on ebay. let's get a final check of the markets. yesterday in the stock market -- wow. sounds like an alarm going off hire. a lot of calm in the stock market. the dow futures are up by another 35 points after they hit another high yesterday. s&p futures right now indicated up by 2 1/2. and the nasdaq by over four.

the currency market is where a lot of the turmoil has played out in terms of that surprise uk election. the results with the conservative party losing the majority. right now the pound is till still down by 1.7%. all right, andrew. that's it. good job this week. good job. becky, have a great weekend. >> see you on monday. >> i think we're all here on monday. >> thank you. "squawk on the street" is next. ♪ good friday morning. welcome to "squawk on the street" i'm carl quintanilla with jim cramer and david faber. two big clouds of uncertainty, the ongoing russian investigation in the u.s. and now theresa may trying to plow ahead with a minority government. the brexit talks will kick off