"squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. it's just starting we have a long way before labor day. >> days are getting shorter. it's getting darker. >> i just the beginning of the summer welcome to "squawk box." we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew is out today. look at the u.s. equity futures. right now things are down with the dow futures down by 40 points s&p down by 8.5. nasdaq off by 38 yesterday the dow was down by 1 point. that was the smeallest decline since 2015 did you see gains for other markets. the transports posting new all-time highs the s&p broke a three-day losing

streak yesterday look at what's been happening with the markets you'll see overnight in asia, you can see what happened with japan. down by 0.4% hang seng slightly weaker. as the president is preparing to speak in poland, market there's are a bit weaker dax is down by 0.6%. the cac is the biggest decliner, down by 0. % the ftse is off by a half percent. crude oil prices, which yesterday fell for the first time after eight days in a row of gains are up once again a gain of 65 cents to 45.78. >> sorkin, is he back tomorrow >> no. he may be back on monday not sure >> i will tell you about the three big stories. i hit this up to see what three big stories. look how much i have to read look at that i'm looking on my machine about what is -- >> heavy duty lifting that you're feeling

>> i don't even have andrew -- i even want him to come back to take -- no i'll do this. i'll give it the royal treatment it deserves. the enthusiasm here are the big stories today tloos three of them. new this morning a crash test brings into question tesla's claim that the model s is the safest car in history. did you know they claimed that >> yes >> okay. i knew >> only because, you know, i talked to ron barron and other people about it. >> safest in history >> it has been to this point this model s is different. >> someone sent me something yesterday on twitter, i shouldn't mention it, but it's a place you can go where people are complaining about tesla cars have you seen that >> no. >> daily thing of my tesla blanks -- >> does this >> yeah. >> i don't know. i don't have one i'm old-fashioned, i have an internal combustion engine in my car.

do you >> yeah. i'm in trouble i'm almost out of gas i realized on the way here. idiot light went off 26r7b8g >> $2 a gallon >> i was away. >> you have to live in cleveland. i love cleveland >> nice park there >> the insurance institute for highway safety, this is the story, says the model s got merely an acceptable rating in a test that simulates what happens when the driver's side corner hits a tree. the report said that the seat belt was not effective and the head could strike the steering wheel. phil lebeau will have more on this story in the next hour. we said three dig stories. arts and crafts retailer hobby lobby agreed to forfeit thousands of illegally smuggled ancient mideastern artifacts that it obtained for a bible museum headed by the company's

president. bizarre story. the forfeiture includes 5500 artifacts that the company purchased there modern day iraq and shipped under false labels hobby lobby will pay $3 million to settle the charges. the company said it was new to the world of antiquing when it began acquiring the artifacts for the museum of the baseball and it made mistakes on relying on dealers and ships who didn't understand the way to document and ship them. and it is jobs week in america already again. the monthly adp employment report on private payrolls is out at 8:15 eastern. followed by weekly jobless claims and the trade deficit numbers at 8:30. 10:00 a.m., ism services index fed governor jerome powell is speaking about housing finance reform and stanley fischer will be talking about labor

productivity later this evening. >> you made it well done. >> i'm done. >> long day already? >> i'm leaving first i'm calling my agent then i'm leaving >> i'll give you a break here. let's talk about this. president trump is set to give a major speech in warsaw, poland at the top of the next hour. we'll bring you his comments live he wrapped up a news conference with poland's president within the last hour javers is in hamb has more on the story. >> it's a beautiful day here in hamburg. the president of the united states is in warsaw. he just wrapped up that presser with polish president duda within the past hour or so the president of the united states making a bunch of news today so far starting off with his comment about the relationship between the united states and poland in terms of russia. here's what he said. >> we're working with poland in response to russia's actions and destabilizing behavior

>> reporter: the president also talked about the stock market again, emphasizing just how well the economy is doing back in the united states. saying that's a plus in terms of international trade, encouraging the polish people to continue to do trade with the united states in terms of energy and lng here's what he said about the stock market >> when i say that the stock market is at an all-time high, we picked up in market value almost $4 trillion since november 8th $4 trillion. that's a lot of money. personally i picked up nothing that's all right everyone else is getting rich. that's okay. i'm very happy. >> reporter: the president saying he's very happy with his personal financial situation today. later the white house is billing this as a major address in poland the president will talk about the defense of western civilization he will talk about the poles as a role model in terms of their historic role they've played as a linchpin between russia and

the rest of western europe he will also talk about terrorism, and bring up bureaucracy as a challenge to doing business and growing the economies in poland and in the united states. a lot on the president's plate today. here to hamburg for the rest of the g20 meetings, including that meeting with vladimir putin of russia that comes up tomorrow >> eamon, the president received a warm welcome so far in poland a message that probably resonates very well there. what's the expectation in germany and with the g20 >> i think it will be a different picture from poland and germany. in poland, the president was talking about the anticipation for his crowd size today they are anticipating a large crowd, warm welcome for the president here in hamburg, a number of protesters were out on the streets yesterday when we got

here 10,000 to 15,000 anti-g20, anti-capitalist protesters on the streets. security presence is very high in the streets there will be an anti-trump tone. but in the executive suites maybe an anti-trump tone as well angela merkel will be talking to the president of the united states she has been critical of the president in terms of the paris accords, she's prepared to brace him on that decision by the united states. and just in general there's a sense here that america first does not leave the rest of europe in the loop with the united states. you can see behind me they have a banner at the port proclaiming the need for global trade. globalism is popular here in terms of the trade and politics of it. so clearly there's going to be some discontent with what the president is bringing from the united states. >> they hate that america first. germany first. it drives them nuts. it's germany first keep our currency low over here.

>> the anti bureaucracy message. >> what are those protesters -- >> that's an interesting message to include >> what's with the protesters? is there capitalism in europe? have you spotted any as you have been over there? what are they protesting in? >> we've been able to buy several products since we've been here. yes, there's capitalism here these protesters are the typical ones you see at any g20 meeting. anti-capitalist, anti west, anti-trump, anti u.s >> right right. >> they're protesting the message behind you keep global trade open >> they are. the port they're saying keep global trade open. they want -- this is a big port city on the river here you can see ships coming in and out all day long globalization is visible here. the protesters are also visible here their message is anti-globalization >> the enemy of my enemy works, they ought to be backing trump they ought to have

anti-globalization and go trump. >> the other thing to keep in mind as we watch the president of the united states navigate this, in poland this morning on for weign soil he was critical f the american media and american intelligence agencies. that's not something we've often seen from a president of the united states before this president very much aligning himself with the president of poland. we'll see how well that message is received here as well another possible point of tension when you talk about the russian interference in the 2016 u.s. elections and whether the president will bring that up at all with vladimir putin. that all is still unknown at this point we're waiting on guidance from the white house on how the president plans to handle that. >> i'm watching you, javers. just letting you know, if you keep -- >> i can't see you, joe. i'm glad you're watching >> toe the line or i'll out you. you won't be anonymous anymore just depends on whether you toe

the line >> not sure what you're saying there. >> that's a cnn reference. >> okay. >> if you apologize to me, stay in line, then maybe i won't -- >> i often don't do what you say, but i try to follow as best i can. >> it's obvious. thank you, eamon javers. this is happening while you're over there i was disturbed that congressman scalise has been readmitted to an intensive care unit he was shot and wounded during a baseball practice last month he had been improving following surgeries, but now they're worried about infection. surgeries were to repair i term organs, broken bones, but the d.c. hospital downgraded his condition to -- from fair to serious, back in intensive care on concerns about an infection another update is scheduled for later today. we wish him well that's always what you worry about. i think there's fragments left

i don't know how many different fragments they talked about they were looking for >> any time you get surgery and you're opened up like that >> it's all over, too, the bullet shattered >> hopefully he can speed along that recovery. >> yeah. hopefully we can get good news today. breaking early tomorrow, a 5.8 magnitude earthquake hit western montanmontana, strike fe miles southeast of lincoln tremors could be felt in washington state and canada. no immediate reports of damage or injuries. stocks to watch today. yum china reporting earnings this morning that were in line with analyst estimates the company's quarterly sales coming slightly below consensus, drug down by sluggish growth at pizza hut. shares of herman mill rer on the rise q4 earnings beat forecasts and offering upbeat guidance the market taking stock up 6% after that report.

>> back to the broader markets joining us is david lebowicz and phil orlando star of entoura"entourage." did you see this those are his handlers orlando has five of them do they all have different tasks? >> they do they work with different professionals. victoria is working directly with me. the other folks are working with other people >> do they carry your suitcase >> no, i don't make them do that >> you have a spare tie in case you drool on it? >> they were so excited with the opportunity to come meet you in the makeup room. >> they came with him last time. >> they did. >> they did? >> of course >> are you alone really >> 6:00 a.m. >> can you share one of your

handlers >> i got a couple to spare no problem >> are you still bullish >> we are. we're sticking with our 2500 full-year target you know, we're almost there we hit 2450. >> could you raise that? >> we could raise it as we look out through the cycle we think we'll hit 3,000 as we look out into 2019. it's a question of pace in terms of do we get movement in washington, do we start to accelerate gdp and earnings growth at what point does the market discount all that? >> so, that wouldn't be that big of a call, since it's only '17 that's even moderating in the advance that we saw if we only get to 3,000 by 2019 you're taking a stand saying there won'tab pube a pullback. >> the pullback we're expecting will be modest if we see a 2%, 3% correction, treading water, consolidating gains, then a move up towards the end of the year.

we think second quarter earnings will be good 6%, 7% up. we think we could be low double digit, 11% 12% first quarter was 15% year over year we think corporate earnings are in good shape. that will help to drive share prices higher. >> a lot of things all over the globe that are not a perfect storm but positive there are black swans out there. >> north korea >> we could all be obliterated in a nuclear holocaust tomorrow. other than that f that doesn't happen, stay long. >> europe is doing well. asla doing welia doing well. large cap u.s. based companies doing abroad are benefitting from that trend. >> europe is doing better, even though they have their own brand of capitalism over there >> right >> it seems to work for them >> right >> david, are you 2500 at your end? >> i think we'll be a little bit higher at year end >> higher than 2500 or higher than now >> higher than now

you pointed out the key drivers. earnings growth looks good activity outside the u.s. looks good 50% of s&p 500 revenues coming from abroad should be a tailwind for equities i wouldn't be surprised to see a pull back, perhaps some chop over the summer months there's still room for policy changes to play a role in driving markets higher the question is how long will investors be patient i would not be surprised to see over the course of the summer people start to get antsy in their seats and look for more progress out of washington >> let's say these guys snatch the republicans -- wonderful republicans, let's say they snatch defeat from the jaws of victory. they have both houses and a president who will sign what they give him. let's say they don't do anything market comes down or stay here >> i think the market is here for different reasons. if you look at earnings expectations around the time of the election for 2017 and 2018 they didn't budge that much. the individual names which moved

higher on deregulation or tax reform have come back down what was priced into the market has now been priced out. we're more focused on fundamentals and earningis growth >> so upside potential but not real downturn. >> icing on the cake >> there's no trump in the fu fundament fundamentals >> there's plenty of trumps, the policies have not been enacted yet. there's animal spirits and deregulation >> i'll go with the animal spirits. >> a lot happened since november 8th. >> no question when you look at the math, if the deregulation and the repatriation and tax reform all of that happens, you could make the kiss that we could look at $150 in earnings a couple years from now based on those structural fiscal policy reforms. the 130 this year is largely fundamentals >> the removal of some of the headwinds, and you're seeing

small business confidence, seeing it in a lot of different places we stopped using animal spirits. >> a number of metrics, you look at the ism manufacturing the other day at three-year high, lei at a high scale high chicago pmi at a cycle high. those metrics are strong >> but there are risks out there. if you look at the fed minutes yesterday, the conversation at the fed is clearly about more than just unemployment and inflation. they're clearly nervous about how far extended markets have become that's what investors need to pay attention to risk of recession in the next 12 months looks low still long equities here we like risk assets, if the fed turns more hawkish despite a change in market expectations -- >> more hawkish as a way to tamp down as what they see stock prices that are elevated >> their view is asset prices in general are elevated >> it's weird for them to start raising rates as a way to tamp

down asset prices. i guess it was weird for them to bring rates down to boost -- >> this is a different fed than the one we've grown up with. i wouldn't be surprised to see their focus broaden out when things in the rest of the word are looking good >> not the first or second manda mandate, but operating outside of that? >> i think the mandate is bigger than those two >> the key inflation metrics they have us focusing on, core pc inflation is going in the wrong direction. we have gone from 1.8 to 1.4 the fed is saying we recognize the numbers right now don't look very good in terms of supporting another rate hike or an unwinding of the balance sheet, our molds are suggesting if you look out a year, 18 months, things will be back on track i think to some degree this is more of a model-based thought process than what is going on in the economy right now. >> so what do you think? is there going to be a postmortem are they watching what you're saying will they say you did this good? this was good?

>> exactly we'll go to starbucks, get some coffee >> kick it around? >> muffins we'll dissect the segment. absolutely >> who's the most important one over there >> who is your favorite child? >> are they all important? who will yell at you if you did something they didn't like you don't need to be surrounded by yes people. >> we don't want yes people, they'll come back and give me constructive criticism >> i would hope so frnts answ >> absolutely. >> if not joe will >> yes >> david, i'm sorry, next time bring someone. >> i'll do my best >> ask someone to come in with you on the street. >> i'm not a popular guy times square, lots of people >> did you see the spread we have in there? >> i did >> a guy right out here who love one of those cinnamon rolls. >> thank you, gentlemen. >> thank you >> thank you guys for coming >> famous. >> when we come back, crude realities. the government's latest report

on oil and gasoline inventories is due out later today we'll tell you what to expect after the break. the power of innovative thinking. 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. can we at least analyze customer can we push the offer online? legacy technology can handcuff any company. but "yes" is here. you're saying the new app will go live monday? yeah. with help from hpe, we can finally work the way we want to. with the right mix of hybrid it, everything computes.

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. welcome back to "squawk box. stocks to watch, there are three of them. ford's china sales surging

not selling china, selling cars in china surging 15% in june. the automaker says it is optimistic about the outlook for the second half. as the industry moves on from a tax cut on small engine cars in china. that had been phased out they're going to deal with that, move on. share the of merck under pressure the fda putting a clinical hold on three studies involving a potential treatment for a type of blood cancer this comes after more deaths were reported in patience receiving the therapy and jana partners is criticizing eqt's deal to buy rice energy. they argue eqt could save $4 billion if they scrap the transaction and separate pipeline assets instead. the latest data on energy stockpiles pushed back a day because of the fourth of july holiday. jackie deangelis has more on what we can expect when we get those numbers today. >> the reports have been

influential the past few weeks, swinging the crude prices around dramatically the marketwas expecting draws in crude and products this week, conservative based on the trends we've seen this summer which have not been seasonal last night the api reported steeper draws, almost 6 million barrels in crude and gasoline which is supportive. the api is not always right, but in this case with the fourth of july demand factored in these numbers make sense and they are in line with seasonal trends key in the report, u.s. production numbers last week, we saw 100,000 barrels per day decline. also supportive, combine that with the first rig count drop we saw in 23 weeks, people suspect that the market is beginning to regulate itselfment there's some down side factors to consider. opec production up for the second month in a row. we have a production cut deal in place. also concerns that the russians could be less committed to a long-term production cut deal than we previously thought as always, there's two sides to

this story around $45 a barrel, today's report could be a swing factor we said after the holiday there would likely be a correction there was evidence of that yesterday. to see more support in prices, the data points need to start building to show trends. >> thewhole idea of self-regulating because prices came down so sharply, but then we saw eight days in a row of prices back up how quickly does price start to affect the shutdown of the rigs? how quickly do you think rigs will be brought back on? >> i think they take a wait and see approach to see what's happening. they're not like opec where they come to the market, promise a deal and announce. u.s. producers like to take their time i think it's a positive sign that we saw rig counts go down maybe they're starting to work it out and internalize the lower prices at the same time it doesn't mean they'll continue to. it's this kind of little dance, if you will. >> is there a price, like $45 a barrel, $48 a barrel, $50

barrel that makes it like okay, time to flip the switches back on. >> they all have different break even costs we know those have come down some producers are still making money around $35 a barrel. they all want to see it around 50 opec does, too that makes it profitable for everybody. as you saw, when prices are at 50, you start pumping more and you bring it back down it's a delicate balance. >> thank you very much >> great to be here. coming up, president trump is in europe for the g20 meeting this week. trade and security will be center stage coming up robert kimmitt will tell us what to expect. and president trump expected to speak in waawrs we'll bring you his comments live in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪

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♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning take a look at markets which are weak this morning. u.s. equity futures at this hour indicated lower, down 70 now on the dow. the s&p down 11. nasdaq taking a bit of a drubbing on the opening, down about 441 points overseas in europe, not quite as much going on over there actually, we are down 1% >> got worse >> worse than it was before. france down almost a percent there's the energy complex 45.73 for wti crude. at least four venezuelan law

blaeshgs inju lawmakers when malitilitias attd lawmakers during a special session. the lawmakers were taken to the hospital once the national guard secured the grounds. protesters have been battling with pro government forces for three months accusing the government of trying to establish a dictatorship by jailing foes, pushing aside the opposition controlled legislature and rewriting the constitution and somehow the guards were not there as the protesters stormed in. >> it's on the cover of -- unbelievable covered in blood these guys. spacex launched the falcon 9 rocket last night. two previously planned launches had been scrubbed in the final seconds. it's the third successful launch in total for spacex in the past 12 days. the tenth mission this year. the rocket is carrying a communications satellite weighing more than 13,000 pounds, one of the heaviest pay loads ever when we come back, we'll

talk about our guest host at the top of the hour, home depot's co-founder ken la flshgs ngone. it's jobs week in america, we will get the adp data at 8:15 and later this morning, senator bob corker will join us to give us his take on president trump's european trip, north korea and the gop healthcare bill. when we come back, robert kimmitt will be with us to talk about the g20.

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welcome back to "squawk box. global trade will be a central focus on the g20 summit taking place in hamburg joining us for more on what we can expect from the annual meeting is ambassador robert kimmitt, former american ambassador to germany. thank you for being here today >> thanks, becky good morning from london >> tell us what we can expect in terms of the trade message it has been one that has been a little more confusing to follow the ins and outs, where we stand. what do you think happens when everybody gets together this

week >> i think there will be a recommitment to free trade, but also an emphases on fair trade trade that is beneficial to all countries, that doesn't seek advantage of one country over another. there's been a lot of focus on trade and goods, that's important. we have a deficit there in the united states. i hope there will be more attention on trade in services, where we have a surplus, particularly financial services. >> in terms of financial services, how difficult will it be to set up some sort of meeting not only with what the u.s. wants but also with what the uk is doing given brexit talks and everything else happening? >> well, really good question. earlier we received the report of the financial stability board that was set up when leaders first met in washington in the g20 in 2008 at the height of the financial crisis the financial stability board has as a goal safer, simpler and

fairer regulation looking towards what they call dynamic resilience i think there's been good progress made. i'm not sure it's much simpler i think we need to find ways both in this large forum and then bilateral negotiations between the u.s. and europe to talk about ways to lower barriers to financial services and by the way particularly because of dramatic changes like brexit and other events on global economic agenda >> it sounds like a nice plan to have these talks, try to make things happen. but we know how tense some of these relationships have gotten. angela merkel planning on trying to make a big deal about the united states pulling out of the paris accord with messages like that being sent how much do you think will actually get accomplished here >> another great question. i think the real key thing on the g20 and other multilateral forums is to move away from rhetoric and communiques that

are dozens of pages long to results. let's come up with a one-page action plan that can be revi reviewab reviewable if you look at climate, though the u.s. was criticized years ago for not being a part of kyoto and now the paris accord, we're the only country in line with kyoto and paris agreement levels because we recommitted to the kind of clean energy ranging from shale to nuclear that others have abandoned. it's going to be an important issue on the table but at the end of the day let's focus on results, not rhetoric measure not how well we sound in the communique and in our press conferences, but what we do on a going forward basis to produce results. >> that's a great message, how likely do you think that's something that other nations will sign on to? i have not heard anybody lay out that we're the only ones in alliance or in line with what

kyoto lays out how do you think this will actually turn into something that we do see key results how likely is that >> i think that is both the challenge and the opportunity for the president. he'll be in the large group of 20 global leaders. i think they'll talk a range of issues that you mentioned, trade and i investment, climate, famine areas in africa, interestingly women's economic empowerment, broad range of issues it's important for the president and all the world leaders to move from that level of rhetorical flourish down to facts and details. at the end of the day, what is the g20 about? it's about jump starting the global economy, getting us and the u.s. growing back closer to 3% than 2% europe closer to 2% than 1%. japan moving up. china moving up. that's an important part of it the other thing that the g20 was set up to do 20 years ago was to look over the horizon.

what might be that next financial crisis and it's been 20 years, for example, since asia has had a financial crisis a lot of uncertainty and instability there including on the political side one of the things that the g20 can put in place now to anticipate and hopefully obviate that next crisis >> it is good to look at long-term goals, but we have immediate concerns with north korea and china and what they're doing to rein in north korat th what do we do right now about this very real security threat >> it is always the case that when the g7 meets, the g20 meets, whatever the agenda may be, there's always an overarching political challenge that we face you're right, this year it is north korea. in addition to the g20 meetings,

the president will be hosting a series of important bilateral meetings, obviously a lot of attention on his meeting with putin of russia, but also president xi of china. you remember when we had six-party talks on north korea, china and russia were at the table for those talks. they're crucial also in the u.n. permanent members of the security counsel i think that's going to be the centerpiece of discussions with china and russia the u.s. is also calling for an emergency meeting of the u.n. security council on this subject. you heard the u.s. military commander on the ground in korea state the high level of readiness our troops find themselves in right now. again, what i find at these summits, the work inside the big room is important. but you're right, it has an effect over time it is the subjects discussed in those bilateral meetings on the

periphery that are sometimes the most important in the near-term. we always have to separate the urgent from the important. right now north korea is urgent, global economic growth though remains important. >> where do we come down in terms of whether or not president trump will or should bring up the u.s. elections in his meeting with putin >> well, i saw some remarks the president made this morning in poland on that subject at the end of the day, i think that that is an issue that is clearly out there, exactly how, when it will be discussed in the meetings with president putin i don't have inside information on that i thought it was interesting that the president commented on that directly this morning in his press conference in warsaw >> ambassador kimmitt, thank you for your time. we appreciate seeing you today >> thank you, becky. good to see you.

sflo time for t amazon's plan to acquire whole foods could change the landscape for real estate. diana olick has that story. this is a real estate story. the value of the strip mall centers with the whole foods just shot up and competitors are facing a big challenge centers with whole foods will see more foot traffic. especially by those who may have stayed away because of higher prices, now they have a reason to go if prices are lower and maybe picking up some bedding they may have ordered on amazon. other centers with competing grocers will likely see less foot traffic while this will hit the grocer chain and connected stores, it will hit the real estate underneath even harder >> you might see a degradation, you might see situations where rent growth stagnates, at the end of the day that's happening because the best retailers are likely to desire being near the whole foods center >> so let's talk the reits that could take a big hit

regency, roic, and weingarden. those were called out in a recent note as most exposed to the whole foods competition. on the plus side, reits that own strips with whole foods, also regency and american assets. one exception to this is ethnic centers or value oriented centers. they are still doing quite well. back to you guys >> didn't think about that would have been -- you're like going through the weeds, i think, to find -- >> you got to f you'shg f you'ro invest in these reit stocks. >> that's that guy's job so you're going to be able to pick up bedding at the brick-and-mortar whole foods >> i'm just saying, isn't that part of the whole deal amazon will use whole foods as distribution centers >> i haven't thought it through.

i guess that's possible. i guess that's possible. all right. thanks, diana. united airlines is apologizing for giving a 2-year-old boy's seat away to a stand-by passenger look at some pictures that we have that show the boy sitting on his mother's lap on a united flight from houston to boston. the mother was forced to hold her son for the 3 1/2 hour flight the woman says she bought the ticket for her 27-month-old son months ago but a stand-by passenger came on board telling her her son was in her seat when she complained to a flight attendant the woman shrugged saying the flight was full united say the gate agents scanned the boy's boarding pass saying he was not on the flight. they apologized to her and her son for the experience they are refunding the ticket he didn't use and are providing a travel voucher and working with

gate staff to prevent this from happening again. >> long flight -- >> houston to boston >> the first part of it. >> that's a long flight to hold a 2-year-old in your lap >> yeah. that's not a baby. babies you hold. >> babies you can. actually if you're 2 and older, the planes have requirements forcing you to buy a ticket. you're not allowed to sit on a lap if you're over 2 coming up, we're in peak vacation season. a record number of americans are expected to fly this summer. the ed toitor and chief of kone nast traveler joins us next. first a quick check of european markets. when this bell rings...

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summer is a hot time for travelers. joining us now is pilar guzman from condi flae nast traveler. i was annoyed when i read it everybody wants experiential things >> you just want massages? >> i saw something a couple weeks ago that said the number one thing people want to do on vacatio

vacations, nothing i kept telling my wife that. we were going through our daily schedule of things that were on the list that we absolutely had to do, we had to be up, go here, go there i said the number one thing thee thing is nothing, and i got nowhere with that. so you're telling me it's all about -- >> well, at least for a certain kind of traveler. >> airbnb too, right >> you said something about hyperlocalized -- did you make this up? >> i swear i didn't. >> there really are trends like this >> well, i think the mindset has shifted a little bit i think certainly there's always a place where you go, you sit on a beach, you sit on a mountaintop, you go and relax. of course there's always a time and place for that i think increasingly, and i think social media is really fueling this, i think there is -- you know, people see this beautiful dish that they must have they must go to talume to

experience the pop-up restaurant, they relocated, they're using all local ingredients, so that's the hyperlocal thing. >> and airbnb has these ads saying don't just visit a place, live there be in the moment. >> exactly right and they're sort of -- and i think hospitality is following suit people want to experience a neighborhood you're seeing hotels go up in neighborhoods that have never seen hotels before they're smaller hotels they're more connected to the neighborhood they're sourcing locally whether it's local gin from nearby distilleries or coffee or a mixologist that's using local ingredients or seafood, anything that connects you to a place so you're not just at an anonymous business hotel >> there are some places i don't think i'd want to live like the locals, plenty of places. >> where >> take your pick, there's

plenty of places where i'm glad i'm in a nicer sort of western hotel. >> that's true and i think -- and that's always the debate i think that if you're staying in a luxury resort in a place that has sort of, you know, the sort of haves and have not situations, certainly. >> if you're going abroad. >> absolutely. >> how do the international hotel chains fare in this world? >> i think they're responding. the ones who are doing well are the ones who are even at the very, very high end, certain hotel chains that are not just doing their cookie cutter design across just, you know, from a purely aesthetic standpoint. you know, the air is still different air that gets -- so it's sort of -- i think that this trend is not just at that kind of millenial i want to get down and dirty in the share

economy level. >> it sounds like you're talking about a certain demo i'm thinking andrew. like andrew -- >> he's a guy. >> not everybody is going to botswana. >> but i think for an experience like that, botswana is a perfect example because, yes, it's a very, very high entry point. it's a very expensive safari and they have done it that way by design for conservation reasons. i think people who are doing those kinds of trips are actually -- they tend to mix things up. they'll sort of get down and dirty. they'll do a little bit more sort of community driven kind of travel and then end up at something that is extremely high end. but also, again, these things are not necessarily mutually exclusive and i think that's the

thing to keep in mind. you can be somebody who gets your hands dirty and feels a place and you can be a person who will then go have -- >> so the fears of the laptop or travel ban, none of that has been -- have you seen any -- >> of course people are talking about it i don't know that it's affecting that much travel i think particularly at the high end. >> yeah. >> we're not going to yemen. >> you've been to bermuda, right? >> oh, because of the cup? >> it's like an hour and a half away the most beautiful beaches. >> it's beautiful, yeah. it's actually kind of -- you know, it's been there for forever and everybody has known about it but it gets overlooked. also because it's not in the dead of winter, you're not going there. it's not far enough away but, you know, if you sail, if you golf, you know, then it's great and it's beautiful there it's having a bit of a resurgence they're doing it in a very nice way. they're not overdeveloping they have gotten an infusion and

of course they're in the press right now. >> you are in tune with the -- she's got her finger right on the pulse of everything. >> of travelers. >> oh, that's right, that's what you do. >> that's what i do for a living. >> just wondering. anyway, it's good. thank you. >> absolutely. thank you for having me. >> andrew should have been here. he goes on like -- >> he's a great traveler. >> he prays with monks he sits there. he doesn't eat for four days he does. >> that's how he survives the show >> he's like an experiential millenial type. >> we're seeing this more and more at the high end that's what's happening. you know, everybody else at the high end, the millenial end. >> nothing that's what you want to do. >> i believe in a nothing vacation at least once a year. >> alcohol. >> joe is waiting for his. >> with swizzles.

it is getting more expensive to live in new york city a new report out today shows prices for apartments in manhattan have hit new all-time highs in the second quarter, selling for an average of $2.19 million. douglas elliott says the total sales rose 15% the average sale price was up 8% the strong sales and prices were driven by two factors, more realistic sellers and continued pent-up demand from buyers who held off making purchases last year. in sports news, facebook, twitter and snap are going to be your home for the world cup soccer reports say that the companies are in talks with 21st century fox to get the online rights, the video highlights for next year's tournament which is being held in russia they have reportedly offered tens of millions of dollars. fox will retain the rights to use game highlights across the shows. last month fox sports announced it's teaming up with facebook to live stream european champions

league matches during the upcoming season. nothing i would like more than watching no one score any goals on like a small screen, like an iphone. >> you said you like nothing you wanted a vacation where you do nothing. >> guys faking injuries and then getting up again. >> those are pretty hilarious. they're great actors. >> i know, they are. i don't know i think they should be able to use their hands, like the goalie. >> the goalie can. >> i think everybody should. there would be a lot more scoring. >> then you could call it basketball. >> have you ever tried to do anything with just your feet >> yeah, i played soccer for a long time. >> it's impossible. >> it's possible when we come back, our guest host is ken langone. we'll get his take next. plus president trump is said to speak in poland in the next few minutes. ve will bring you his comments li "squawk box" will be right back.

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good morning happening now, president trump is in europe preparing to address the polish people before heading to a g20 summit in germany. his live comments are straight ahead. and then, global reaction. retired four-star army general and former nato commander, wesley clark, will join us to break down the president's trip. politics, business and your money. legendary corporate leader ken langone is our special guest host he's here, he's ready to go. he's on set ready to sound off on today's biggest stories the second hour of "squawk box" begins right now live from the beating heart of business, new york city, this is "squawk box."

>> scarsdale i'm starving >> stop it, you look good. >> i'm going on the scarsdale diet ken langone is here. welcome back to "squawk box" here on cnbc our guest host is ken langone. he started some hardware company, i don't know. >> home depot. >> oh, yeah. yeah, yeah that one and i'm looking for a diet and i'm doing the scarsdale diet because i want to be like andrew, but i'm hungry. >> my friend, let his soul rest in piece, he said if you don't put it in your mouth, it won't stick on your butt >> what time is it >> on the lips, a lifetime on the hips. >> don't put it in your mouth and it won't stick to your butt. >> i got it, i got it.

>> that's my pearl of wisdom for the morning, okay? >> people -- headline writers take things out of context, ken. >> let them do whatever they want you know what i meant and i know what i meant to me you look good. >> that's also got me a little bit worried. >> my eyes are still good. >> look at the monitor fix the monitor. >> we're off to a good start. >> ocd guy over here needs it straight before he can read. >> president trump is in poland right now and is scheduled to deliver what the white house is calling a major speech to the polish people. we're expecting that just a little bit later and we'll take it live. early this morning president trump held a joint news conference with the polish president and then participated in the three seas summit that was focused on improving trade and energy connections among the 12 nations, between the baltic, the black and the adriatic seas. among the headlines out of

president trump so far, how the u.s. plans to handle north korea. >> we must also confront the threat from north korea, and that's what it is, it's a threat and we will confront it very strongly we call on all nations to confront this global threat and publicly demonstrate to north korea that there are consequences for their very, very bad behavior. >> in our headlines this morning, we are just over an hour away from the adp june report on private sector employment economists think that it will show that the u.s. economy added 180,000 new private sector jobs during the month that was down from 253,000 in may. tesla's model s failed to achieve a top score in one of the crash tests run by the insurance institute for highway safety it only got an acceptable rating in a simulation of a crash where the front driver's side corner hits a tree or other vehicle

tesla is responding by saying the most objective tests are done by the government, which found tesla vehicles carry an extremely low risk of injury intel has settled a legal dispute with john mcafee over the use of his name. the chip maker bought mcafee associates for $7.7 billion back in 2010. the dispute arose when mcafee tried to use his name for a new company. he's now agreed not to use his name in connection with any cyber security products or services. let's get to our guest host this morning, ken langone, home depot co-founder since the last time -- i think about the news cycle, ken. since the last time you've been on, i guess we'll keep it fresh. god, if we went back two weeks, it would be something totally different that we'd be talking about a wrestling video or we'd be talking about -- i mean so many different things on a 24-hour basis. what's most important in your mind right now >> oh, the most important -- >> tax reform?

obamacare? >> i typically say don't sell america short. in the next 25 years let me tell you why i feel that way. we have a home in the mountains in western north carolina and it's a magnificent -- we love it and every fourth of july a wonderful family, betty higgins and her sons, john and robert, have a ceremony at 11:30 in the morning. this is something the family has been doing for almost 60 years they have a flag pole which is a tree trunk, a small about like -- with all the branches cut off and at 11:30 they hoist the flag and they have a little cannon that booms and then we all say the pledge of allegiance. they must invite hundreds of people and they have these little cucumber sandwiches and this wonderful southern barbecue. with the vinegar sauce here are all these people. they bring their children and their grandchildren.

and in fact john higgins -- by the way, he and his brother wear white suits with red and blue paraphernalia, ties and stuff, and john gets up and conducts the ceremony you look around and you say, you know what, this is the part of america that gives us our spirit, that gives us our backbone, that gives us our courage. these are the good people, okay? and they're all over they're in new york city tragically that poor cop, that woman with three children. these are what america is all about. it's not us, it's them and guess what, they have spoken they have spoken loud and clear. so i am very, very excited and you know, let me say this about our president. somebody told me in november don't listen to what he says, watch what he does what he has done so far in lifting these onerous and burdensome, needless regulations is absolutely incredible there's been nothing done so far

that in any way, shape or form threatens us or puts us in a dangerous environment. the results are already starting to show up i also had -- just finished this book about the lacrosse players at -- you read that book >> i haven't read the book. >> how tragic. these poor kids could have ended up in prison for 30 years and everybody jumped on them the faculty, the administration of duke university by the way, they all ought to be ashamed of themselves. they're into truth, they didn't want to hear the truth they made assumptions. these kids had the guts to fight. and in a very small way, my fight with spitzer, where these absurd regulators and government officials decided they're going to take names down for their own political gain i think we're in the best shape we've been in as a nation right now. that's why i feel good about america. >> this is expected to be part

of the president's speech today in poland, this idea of pushing back on large bureaucracies. that's a message that he is expected in this speech to kind of bring us. ken, we should say you are somebody who's come around to this point of view this is not always your take in the election leading up to it. >> no. look, trump was my third choice. i went through christie and he flamed out. >> and then hillary. >> no, no, i'm not hillary, stop that then i went to john kasich. >> oh, okay. >> and finally trump. >> and at one point you said you wouldn't support trump because of -- it was those comments that he had made against the mexican judge, i believe >> check that out. >> it was on our show. it was on our show. >> i don't like what he did with that. >> i don't remember him saying that. >> maybe you didn't say you wouldn't support him, you were very bothered by what he said. >> we have to assume -- sometimes erroneously, if you read this case at duke university, you have every right to believe that prosecutors are bad people when you see what this guy did

this guy -- i mean he falsified information, he held back exculpatory -- this is horrible stuff. >> while you're down there and people are saying the pledge of allegiance, i've got a neighbor that won't take down an upside down flag in his yard. >> because -- >> because of trump. to this day. and i see stuff on social media. i saw that there are people that won't celebrate july 4th anymore because they don't feel that they have independence and they substituted malia bama's birthday to celebrate on july 4th. this is the most divided the country has ever been. i'm not saying it's trump's fault, but i don't know how we ever bridge the gap. >> it's been going on forever. >> but it's gotten worse the stuff i see -- do you have a twitter account? do you see social media? >> remember newt gingrich? when he mobilized the republicans to make him speaker of the house and all the things

he did, that nonsense, contract with america. >> do you think trump is right about mainstream media do you think he gets a fair shake? >> i think the media ought to be ashamed of itself. the media has lost its independence the media is no longer independent. there is pockets, okay, of objectivity. but for the most part i think people have a right to question the objectivity. the whole idea of a newspaper to me is give me the facts. the guy friday on dragnet, just the facts, ma'am "the new york times" front page is the equivalent of their editorial page now. >> you're sitting in andrew's chair. >> fine. where is andrew? he knew i was coming so he didn't show up he knew i'd beat up on him he is my commie but he's my commie >> you said the people have spoken by that, you mean by electing donald trump. >> absolutely. and let me tell you the thing that's really wrong with what's going on right now

the minute we encourage people to believe that our process is bad, we don't have a process democracy works. >> what do you mean our process being bad. >> the election -- people are challenging -- first of all, i asked a woman at dinner at couple of weeks ago. i said do me a favor you're talking about these russians did they screw around with the totals did they manipulate the machines tell me what they did. oh, no, you don't get it, it's bad. >> well, the president himself has said that the russians may have tried to interfere by the release of the wikileaks information. >> well, guess what, we're into openness as a society. what's wrong if somebody said all that stuff and how they got it do me a favor, you better be careful how you transmit information because it's out there. >> right the idea that these things were happening, they weren't making up some of the things. >> well, if they got -- however they got the information and they revealed it publicly -- >> but do you think the president should take a stance

with putin when he meets with him tomorrow just in terms of making sure that other nations know that they can't come here and i'm not questioning the election results by any stretch, but do we make a stance by saying, hey, this is our territory we don't want you here, you've got to stay out of it this is our -- >> you know what, when i used to sell securities a long time ago, i wanted to make sure of one thing. i went after the most exactly important thing i was trying to sell i think right now the thing trump ought to be doing tomorrow with putin is talking about north korea and nothing else absolutely nothing -- this is an extremely dangerous situation. all this other crap, and that's what it is all this other crap, we better figure out what we're going to do with this guy, because if he's got the delivery power that he says he does, and which we seem to indicate, all it's going to take -- we'll survive as a society and a nation he'll hit us once. we'll obliterate him but look at what's happened to the world when you do that so if i'm trump --

>> and south korea. >> i'm ken langone walking into general electric pension fund. i've got one shot at selling them something, i'm going to sell them the most important thing and best thing i've got in my bag right now the thing we have to be focused on is north korea it is dangerous. it is very, very dangerous i'm on the board of an organization called csis, the center for strategic international studies. rex was on the board until he became secretary of state. it's a wonderful organization, they do fabulous work. i was talking to john hamry. he was the guy that gates wanted to be his successor as secretary of defense i was talking yesterday to john about korea. this is a very ominous situation. this is a very dangerous situation. >> even if he explodes it above the -- the grid goes down. >> this is the trigger, okay this could be the trigger of a calamity in the world. >> folks, we're just taking a look right now the president is about to lay a

wreath at one of the memorial areas where they have been earlier today. this is a warsaw memorial. the first lady will be speaking introducing her husband to the crowd. when the president begins speaking we will of course bring this to you live ken langone is our guest host and we'll have more from him as well. >> are we going to break we're going to stay here with ken, all right was that csis that you were talking about, was that csis new york or csis miami or -- >> no, stop that >> it's different then >> are you sure you went to m.i.t. >> people don't know people don't know that i'm kidding a lot of the time. >> by the way, you're smart too. >> thank you. >> i have to give you a lot of credit. >> thank you. >> so we're going to slowly -- it looks like there's no reason to go to break, we just have to break out of break and it looks like it's going to have -- there's -- you know, i've seen it characterized that he got a

warm welcome in poland it's a hero's welcome that they wanted to give him there, ken. >> they should. >> but they have a lot of similar concerns they think that germany is obviously -- that the eu is too german centric. >> understand something. >> yep. >> when you respect him, you respect our process and you respect our way of governing he won an election fair and square. >> that's what gets me is when people just say it's illegitimate or that he doesn't represent the united states or he's embarrassing the united states, and they say it to me very loudly in my face but people -- they're not just talking about him, they're not just criticizing him, they're criticizing everybody that voted for him, in pennsylvania, michigan, north carolina, ohio, florida. >> they're criticizing the process. >> right. >> they say the process is wrong because this is the result. >> and they're never going to come around, though. >> leave them alone. let them stew in their own juice. leave them alone

look, let's be honest, they thought they had a shoo-in. >> the wreath that's being laid here at the warsaw memorial, this is the memorial honoring the 150,000 poles who lost their lives back in 1944 when they stepped up to try to prevent the soviets from stepping back in. again, this is a very solemn ceremony that's taking place right now. >> it sure is. >> then we're headed off to probably -- it's all-important obviously, but the more important part is the whole g20 and the meeting with putin, which you think should be all about north korea.

>> the meeting -- the whole discussion ought to be fellas, let's push everything aside. let's not talk about trade, let's talk about a common problem we all have. >> hello, poland. >> here's the first lady thank you very much. >> we're not taking the first lady all right. as far as china, that's deep too in terms of trade, ken you heard things had been improving it looked like with china until the last couple of days. >> i agree, this is a situation where you have to focus entirely on korea at this point, north korea, because it's stepped up to a level -- >> but that relates to china too. he was saying they're trying to do things. the tweets in the last couple of days were china is unable to do anything. >> china has enormous power. all the coal, all the iron ore, all that north korea exports is minerals for the most part

china goes to another source for those minerals, north korea collapses. those rocket tests, they cost a lot of money >> right and at this point to see something that was up in the air for 37 minutes, a very different type of missile than we've seen to this point, all of those lead to some huge issues. joining us right now is david bailen, he is citi's global head of managed investments david, let's talk about this backdrop as you sit and try and figure out what to do with the markets. the markets have continued to climb in the face of all of these concerns is that justified and warranted in your view >> yeah, i think that the markets, you know, are very bad at pricing in binary outcomes, zeros and ones, what you're talking about from a policy standpoint is something that the market can't price extraordinarily well and so what it's looking to is the actual data of what's taking place in the global economy. when you look around the world, you see a pretty significant

simultaneous growth that's taking place in china, in japan, across asia, across europe and in the united states so i think it's a combination of those factors that are causing the markets -- >> here comes the president. >> david, stay with us president trump taking the stage right now. >> thank you very much that's so nice the united states has many great diplomats, but there is truly no better ambassador for our country than our beautiful first lady, melania. thank you, melania, that was very nice. we've come to your nation to deliver a very important

message. america loves poland, and america loves the polish people. thank you. the poles have not only greatly enriched this region, but polish americans have also greatly enriched the united states, and i was truly proud to have their support in the 2016 election it is a profound honor to stand in this city by this monument, to the warsaw uprising, and to address the polish nation that so many generations have dreamed of a poland that is safe, strong and free president duda and your

wonderful first lady have welcomed us with a tremendous warmth and kindness for which poland is known around the world. thank you. my sincere, and i mean sincerely, thank both of them and the prime minister shedwell, a very special thanks also we are pleased that former president lek walensa has joined us today also. thank you, thank you thank you. on behalf of all americans, let me also thank the entire polish

people for the generosity you have shown in welcoming our soldiers to your country these soldiers are not only brave defenders of freedom, but also symbols of america's commitment to your security and your place in a strong and democratic europe. we are proudly joined on stage by american, polish, british, and romanian soldiers. thank you. thank you. great job. president duda and i have just come from an incredibly successful meeting with the leaders participating in the three seas initiative. to the citizens of this great region, america is eager to expand our partnership with you.

we welcome stronger ties of trade and commerce as you grow your economies, and we are committed to securing your access to alternate sources of energy, so poland and its 98 po - neighbors are never again held hostage to a single supplier of energy mr. president, i congratulate you along with the president of croatia on your leadership of this historic three seas initiative thank you. this is my first visit to central europe as president, and i am thrilled that it could be right here at this magnificent, beautiful piece of land. it is beautiful.

poland is the geographic heart of europe, but more importantly in the polish people, we see the soul of europe your nation is great because your spirit is great and your spirit is strong for two centuries, poland suffered constant and brutal attacks, but while poland could be invaded and occupied and its borders even erased from the map, it could never be erased from history or from your hearts in those dark days, you have lost your land but you never lost your pride.

so it is with this true admiration that i can say today that from the farms and villages of your countryside to the cathedrals and squares of your great cities, poland lives, poland prospers, and poland prevails despite every effort to transform you, owe press you or destroy you, you endured and overcame you are the proud nation of capernicus think of that. ch chopin, st. john paul ii, poland is a land of great heroes. and you are a people who know

the true value of what you defend the triumph of the polish spirit over centuries of hardship gives us all hope for a future in which good conquers evil and peace achieves victory over war. for americans, poland has been a symbol of hope since the beginning of our nation. polish heroes and american patriots fought side by side in our war of independence and in many wars that followed. our soldiers still serve together today in afghanistan and iraq, combatting the enemies of all civilization. for america's part, we have never given up on freedom and independence as the right and destiny of the polish people, and we never, ever will.

our two countries share a special bond forged by unique histories and national characters it's a fellowship that exists only among people who have fought and bled and died for freedom. the signs of this friendship stand in our nation's capital. just steps from the white house, we've raised statues of men with names like polaski and cosiosco. the same is true in warsaw where street signs carry the name of george washington and a monument stands to one of the world's greatest heroes, ronald reagan

and so i am here today not just to visit an old ally, but to hold it up as an example for others who seek freedom and who wish to summon the courage and the will to defend our civilization the story of poland is the story of a people who have never lost hope, who have never been broken, and who have never, ever forgotten who they are [ crowd chanting ] thank you so much. thank you.

thank you so much, such a great honor. this is a nation more than 1,000 years old. your borders were erased for more than a century and only restored just one century ago. in 1920 in the miracle of visula, poland stopped the soviet army bent on european conquest then 19 years later in 1939, you were invaded yet again this time by nazi germany from the west and the soviet union from the east. that's trouble that's tough under a double occupation, the polish people endured evils

beyond description the massacre, the occupations, the holocaust, the warsaw ghetto and the warsaw ghetto uprising the destruction of this beautiful capital city and the deaths of nearly one in five polish people. a vibrant jewish population, the largest in europe, was reduced to almost nothing after the nazis systematically murdered millions of jewish citizens, along with countless others during that brutal occupation. in the summer of 1944, the nazi and soviet armies were preparing for a terrible and bloody battle right here in warsaw amid that hell on earth, the citizens of poland rose up to defend their homeland.

i am deeply honored to be joined on stage today by veterans and heroes of the warsaw uprising. what great spirit. we salute your noble sacrifice and we pledge to always remember your fight for poland and for freedom. thank you. thank you. this monument reminds us that more than 150,000 poles died during that desperate struggle to overthrow oppression.

from the other side of the river, the soviet armed forces stopped and waited they watched as the nazis ruthlessly destroyed the city, viciously murdering men, women and children they tried to destroy this nation forever by shattering its will to survive. but there is a courage and a strength deep in the polish character that no one could destroy. the polish martyr, bishop michael cozil said it well more horrifying than a defeat of arms is a collapse of the human spirit through four decades of communist rule, poland and the other captive nations of europe endured a brutal campaign to demolish freedom, your faith, your laws, your history, your identity indeed the very essence of your

culture and your humanity. yet through it all, you never lost that spirit your oppressors tried to break you, but poland could not be broken and when the day came on june 2nd, 1979, and one million poles gathered around victory square for their very first mass with their polish pope, that day every communist in warsaw must have known that their oppressive system would soon come crashing down they must have known it at the exact moment during pope john paul ii's sermon when a million polish men, women and children

suddenly raised their voices in a single prayer. a million polish people did not ask for wealth, they did not ask for privilege, instead one million poles saying three simple words we want god. and those words, the polish people recalled the promise of a better future. they found new courage to face down their oppressors and they found the words to declare that poland would be poland once again. as i stand here today before this incredible crowd, this faithful nation, we can still hear those voices that echo through history. their message is as true today

as ever. the people of poland, the people of america and the people of europe still cry out we want god. together with pope john paul ii, the poles reasserted their identity as a nation devoted to god. and with that powerful declaration of who you are, you came to understand what to do and how to live. you stood in solidarity against oppression, against a lawless secret police, against a cruel and wicked system that impoverished your cities and your souls, and you won. poland prevailed poland will always prevail.you

you were supported in that victory over communism boy a strong alliance of free nations in the west that divide tyranny. now among the most committed members of the nato alliance, poland has resumed its place as a leading nation of a europe that is strong, whole and free a strong poland is a blessing to the nations of europe, and they know that. a strong europe is a blessing to the west, and to the world

100 years after the entry of american forces into world war i, the transatlantic bond between the united states and europe is as strong as ever and maybe in many ways even stronger this continent no longer confronts the specter of communism. but today we're in the west and we have to say there are dire threats to our security and to our way of life. you see what's happening out there, they are threats. we will confront them, we will win, but they are threats.

we are confronted by another oppressive ideology, one that seeks to export terrorism and extremism all around the globe america and europe have suffered one terror attack after another. we're going to get it to stop. during a historic gathering in saudi arabia, i called on the leaders of more than 50 muslim nations to join together to drive out this menace which threatens all of humanity. we must stand united against these shared enemies to strip them of their territory and their funding and their networks and any form of ideological support that they may have while we will always welcome new

citizens who share our values and love our people, our borders will always be closed to terrorism and extremism of any kind we are fighting hard against radical islamic terrorism and we will prevail we cannot accept those who reject our values and who use hatred to justify violence against the innocent today the west is also confronted by the powers that seek to test our will, undermine

our confidence and challenge our interests to meet new forms of aggression, including propaganda, financial crimes and cyber warfare, we must adapt our alliance to compete effectively in new ways and on all new battlefields we urge russia to cease its destabilizing activities in ukraine and elsewhere and its support for hostile regimes, including syria and iran and to instead join the community of responsible nations in our fight against common enemies and in defense of civilization itself. finally, on both sides of the atlantic our citizens are confronted by yet another danger, one firmly within our control. this danger is invisible to

some, but familiar to the poles. the steady creep of government bureaucracy that drains the vitality and wealth of the people the west became great not because of paperwork and regulations but because people were allowed to chase their dreams and pursue their destinies. americans, poles and nations of europe value individual freedom and sovereignty. we must work together to confront forces, whether they come from inside our out, from the south or the east, that threaten over time to undermine these values and to erase the bonds of culture, faith and tradition that make us who we are. if left unchecked, these forces will undermine our courage, sap

our spirit and weaken our will to defend ourselves and our societies. but just as our adversaries and enemies of the past learned here in poland, we know that these forces too are doomed to fail if we want them to fail and we do indeed want them to fail they are doomed not only because our alliance is strong, our countries are resilient and our power is unmatched through all of that, you have to say everything is true our adversaries, however, are doomed because we will never forget who we are. if we don't forget who we are, we just can't be beaten. americans will never forget. the nations of europe will never forget we are the fastest and the

greatest community there is nothing like our community of nations the world has never known anything like our community of nations. we write symphonies, we pursue innovation, we celebrate our ancient heroes, embrace our timeless traditions and customs and always seek to explore and discover brand new frontiers we reward brilliance we strive for excellence, and cherish inspiring works of art we treasure the rule of law and protect the right to free speech and free expression. we empower women as pillars of our society and of our success we put faith and family, not government and bureaucracy, at

the center of our lives, and we debate everything. we challenge everything. we seek to know everything so that we can better know ourselves. and above all, we value the dignity of every human life, protect the rights of every person and share the hope of every soul to live in freedom. that is who we are those are the priceless ties that bind us together as nations, as allies, and as a civilizati civilization what we have, what we inherited from our -- and you know this better than anybody and you see it today with this incredible group of people. what we've inherited from our ancestors has never existed to this extent before and if we fail to preserve it, it will never, ever exist again

so we cannot fail. this great community of nations has something else in common in every one of them, it is the people not the powerful who have always formed the foundation of freedom and the cornerstone of our defense. the people have been that foundation here in poland as they were right here in warsaw, and they were the foundation from the very, very beginning in america. our citizens did not win freedom together, did not survive horrors together, did not face down evil together, only to lose our freedom to a lack of pride and confidence in our values we did not and we will not, we will never pack down -- back down

as long as we know our history, we will know how to build our future americans know that a strong alliance of free, sovereignand independent nations is the best defense for our freedoms and for our interests. that is why my administration has demanded that all members of nato finally meet their full and fair financial obligation. as a result of this insistence, billions of dollars more have begun to pour into nato. in fact people are shocked, but billions and billions of dollars

more coming in from countries that in my opinion would not have been paying so quickly. to those who would criticize our tough stance, i would point out that the united states has demonstrated not merely with words but with its actions that we stand firmly behind article five, the mutual defense commitment words are easy, but actions are what matters and for its own protection, and you know this, everybody knows this, everybody has to know this, europe must do more. europe must demonstrate that it believes in its future by investing its money to secure that future. that is why we applaud poland for its decision to move forward this week on acquiring from the united states the battle tested patriot air and missile defense system, the best anywhere in the

world. that is also why we salute the polish people for being one of the nato countries that has actually achieved the benchmark for investment in our common defense. thank you, thank you poland. i must tell you, the example you set is truly magnificent and we applaud poland thank you. we have to remember that our defense is not just a commitment of money, it is a commitment of will because as the polish experience reminds us, the defense of the west ultimately rests not only on means but also on the will of its people to prevail and be successful and get what you have to have. the fundamental question of our time is whether the west has the will to survive.

do we have the confidence in our values to defend them at any cost do we have enough respect for our citizens to protect our borders? do we have the desire and the courage to preserve our civilization in the face of those who would subvert and destroy it we can have the largest economies and the most lethal weapons anywhere on earth, but if we do not have strong families and strong values, then we will be weak and we will not survive. if anyone forgets the critical importance of these things, let them come to one country that never has. let them come to poland.

and let them come here to warsaw and learn the story of the warsaw uprising. when they do, they should learn about jerusalem avenue in august of 1944, jerusalem avenue was one of the main roads running east and west through this city just as it is today. control of that road was crucially important to both sides in the battle for warsaw the german military wanted it as their most direct route to move troops and to form a very strong front. and for the polish home army, the ability to pass north and south across that street was critical to keep the center of the city and the uprising itself from being split apart and destroyed. every night the poles put up sandbags amid machine gunfire

and it was horrendous fire, to protect a narrow passage across jerusalem avenue every day the enemy forces knocked them down again and again and again. then the poles dug a trench. finally they built a barricade and the brave polish fighters began to flow across jerusalem avenue that narrow passageway just a few feet wide was the fragile link that kept the uprising alive. between its walls a constant stream of citizens and freedom fighters made their perilous, just perilous sprints. they ran across that street. they ran through that street they ran under that street all to defend the city the far side was several yards away recalled one young polish woman named greta.

that mortality and that life was so important to her. in fact she said the mortally dangerous sector of the street was soaked in blood. it was the blood of messengers, liaison girls and couriers, nazi snipers shot at anybody who crossed. anybody who crossed, they were being shot at. their soldiers burned every building on the street and they used the poles as human shields for their tanks in their effort to capture jerusalem avenue. the enemy never ceased its relentless assault on that small outpost of civilization. and the poles never ceased its defense. the jerusalem avenue passage required constant protection, repair and reinforcement, but the will of its defenders did not waiver even in the face of

death. and to the last days of the uprising, the fragile crossing never, ever failed it was never, ever forgotten it was kept open by the polish people the memories of those who perished in the warsaw uprising cry out across the decades and few are clearer than the memories of those who died to build and defend the jerusalem avenue crossing. those heroesremind us that the west was saved with the blood of patriots that each generation must rise up and play their part in its defense. and that every foot of ground and every last inch of civilization is worth defending with your life our own fight for the west does

not begin on the battlefield, it begins with our minds, our wills and our souls. today the ties that unite our civilization are no less vital and demand no less defense than that bare shred of land on which the hope of poland once totally rested our freedom, our civilization and our survival depend on these bonds of history, culture and memory and today as ever, poland is in our heart and its people are in that fight just as poland could not be broken, i declared today for the world to hear that the west will never, ever be broken. our values will prevail. our people will thrive and our civilization will triumph.

thank you. so together let us all fight like the poles for family, for freedom, for country and for god. thank you, god bless you, god bless the polish people. god bless our allies and god bless the united states of america. thank you. god bless you. thank you very much. >> president trump in a speech obviously very well received where he was in warsaw, poland we were told by the white house

it was going to be about 20 minutes. it ran closer to almost a half hour, i think. >> he started at 21 or 22, i think. >> a little bit after that and stayed on script for the most part, but it was interrupted by some interesting moments of chants of usa and something i couldn't quite make out that sounded like it ended in trump we'll find out later exactly i don't speak polish, but ending with maybe it was viva trump or up with trump. >> it's probably why the speech took longer is he paused so many times for the applause that was there. >> it was -- it has been pointed out quite a bit of history there, going back centuries with the history of poland. called poland the geographic center and spiritual center of europe. >> cited john paul ii, the pope. >> didn't necessarily make any news with article five but that

was probably the most strident he'd been in saying that we will support article five, a commitment to article five of nato. >> we canonized a pope for what his part was in poland that's only about 30 years ago so this guy, he's pope, he then comes and he now becomes a saint. that's pretty impressive. >> and he called out lek walesa who was there in the audience. >> a union, a union. this is -- he headed up a union. >> an anti-communist union. >> an anti-communist union. >> and by the way, a former leader who has been very critical of the current government of poland, there were some people that would question whether he would bring him up today and he did in the speech. >> let me tell you right now, here is a real great moment for him. he ought to capitalize on it by

not demeaning it look, i think the guy is doing a lot of great stuff and i'm very pleased. i just wish he'd -- he keeps saying he's president. guess what, he is president. he won fair and square act like it, okay? and i have enormous respect for him as a person. i believe -- i believe as president, don't misunderstand me, as president i think he's making a lot of moves that are very important for our future. >> general clark joining us, wesley clark, retired four-star army general, former nato commander. he's now chairman and ceo of a global consulting firm general, you said probably talk a little bit about nato but in general terms was this -- was there more there than you expected talking about nato? >> i think he covered the base on nato, on article five he put out a marker to russia, but i particularly loved his focus on poland. i thought what he said about poland and the polish people was

absolutely wonderful and i think it will go a long, long way to strengthening american-polish bonds. i thought the speech was extremely well crafted i thought the president got across his own points on immigration and bureaucracy that are important to his domestic constituency at home, but i thought he also said he wants a strong and free europe, and that's a very important phrase, very important statement i thought the mention of the three seas group was also significant. so in a way he's trying to put the united states back in a leadership role in europe. angela merkel, macron in france have got to take note of his remarks, and i think that this is a speech which will help the united states reassert its leadership role that it must have in europe and strengthening the transatlantic bonds.

>> i'm a little surprised. general, you sound like it really exceeded your expectations, looking at your comments about what to expect. it sounds like you were pleasantly surprised by both the content and the delivery of the speech >> well, i think it was a real presidential address and i think it was well crafted. i think he delivered it well and i'm very glad that he did. >> i have a question for the general. >> go ahead. >> general, ken langone. how are you today? >> hi, ken good to see you. >> nice to see you again i feel, and i'm curious how you react, i feel strongly that this korean situation is a lot more serious than all of us are recognizing, and i'm wondering, shouldn't -- how do you feel about the president coming back and convening a special session of congress to speak to them and to effectively put us on notice to the rest of the world that this is extremely dangerous and we're going to assume a war footing because of the risk it

is to this nation? you know, i think that the more i think about korea and its capabilities and its capacity to do damage in the world, especially to us, i think it's time for the world to know that unlike when we had that vicious gas attack in syria where we drew a line in the sand and did nothing about it, i think it's very important for us to assert ourselves as leaders because keep in mind if, god forbid, korea were to attack us, this would invoke the charter of nato that those nato countries would have to come to our aid. because it's mutual defense. so i'm wondering how do you feel about us heightening the seriousness of the situation in korea? >> well, i think we have to look at what our objective there is, an i think we have to have a plan on what we want to do moving forward with korea. so we've looked at the military options. there really are no good military options with korea. in other words, it's not that you can do a disarming first

strike and take out all of its nuclear weapons, take out the missiles and say, okay, here, there you are. because if you do that strike, what you do is you invite the retaliation on korea and possibly on japan. you're going to end up with a war that causes tens of thousands of deaths. if there's no good military option, then you have to have diplomacy. so we've tried to ask china to help but in reality, china's long-term objective is to get us out of korea and out of the western pacific. they don't want us there anymore than we would want china in cuba with a couple of divisions of chinese forces we would be uncomfortable about that they feel uncomfortable and have for a long time since we were adversaries in the korean war in the 1950s. so we have to keep in mind china's long-term objective. before the president comes back and puts us on a war footing,

the administration needs to have a real policy and a plan on how to move forward. i don't see that as having emerged yet. what i see is rhetoric i see concerns and i think we're at the end of the line at which you can simply fly a couple of b-2 bombers over and threaten north korea we've done that in the past, it hasn't worked. we can't buy them off. we've done that in the past also we have to recognize that it's going to be very difficult to eliminate the north korean missile and nuclear capabilities so how do we contain it? how do we live with it how do we move forward with our american commitments in this part of the world? there's some solid thinking to be done. i think until that's done and we have the plan inside the administration, then i think we've got to be careful about getting too much public fervor out there and raising fear and anxiety. you know, we did this before,

before the invasion of iraq. i remember the statements about, gee, what if there's a mushroom cloud and that's our first warning. and so we invaded iraq it hasn't gone that well and we're still working it so before we launch on a military objective, i think we've got to think through how to use all of the tools of u.s. power, our economic power, our diplomacy, international law, and bring together a coalition of nations that will help us stabilize and prevent conflict on the korean peninsula. that's the goal. >> general, i hear your concerns and understand what that would mean for south korea if something were to happen, but our attempts at diplomacy to this point haven't worked either we've allowed them to get much closer to the potential of developing an icbm what do we do? do we rely entirely on china and hope for the best? >> well, i don't think you can rely entirely on china but i think you also have to look at what the u.s. objectives

are. we've maintained peace and security on the korean peninsula since 1953 without a peace agreement. we've kept u.s. forces there we've had deterrents in place. south korea has emerged from a country that was overrun in 1950 by north korean forces, by communism. and it's emerged as a vibrant economy. more than 50 million people, more than $50 million a year in gdp. it's a great country it's got an important role on the world stage. and we're their allies and we've helped them achieve this so how do we protect our gains there? so i think you have to look at the positives. yes, north korea has continued to develop its military potential, but if you look at what's happened in the world, we went after countries that we named that we didn't like, like iraq, because they were trying to develop that potential. we knew that korea was actually

the furthest ahead, so we put them aside so if you were north korea, the lesson you would take is the only way you could be safe if the united states doesn't like you is to get nuclear weapons, and that's what they have tried to do. so we have to step back from this and before we put ourselves in a position of seeking conflict, we have to use all the tools that are at our disposal to obtain our objectives our objective is stable northeast asia, freedom. it's what donald trump said about poland we don't want war. what we want is peace. we want our values out there so how do we do that that's the question. >> general -- >> that's what the administration needs to help us think through. >> general, let me push back a little bit i agree with you, iraq was a horrible mistake, horrible okay but iraq didn't have the potential for an icbm or at least they didn't demonstrate

it unfortunately, we relied on information that turned out to be wrong, which was they had weapons of mass destruction or whatever the hell they had that gave us the reason to go in. we've tried diplomacy. i think it's -- i'm sorry, i'm not an alarmist, but i believe it's time for the american people to understand as a nation that we're probably looking at the single greatest threat since world war ii with this nut, this leader of north korea, having this capability, which gets better every time he tries and with all due respect, i don't want to make americans become paranoid, but on the other hand i think it's important for all of us to understand that this has the potential to trigger off conflict like we've never seen before on this earth i respect all the things you say about diplomacy, but think of all the things we've done. we've talked to china, we've talked to russia

in fact before you came on i said that if i was the president of the united states, the only thing i'd be talking to putin about or china about is korea right now because that is the single biggest risk we have as a society, the world i'm talking about the global society, not america because once you trigger off something like this, lord knows where it ends and who becomes hurt by it so with all due respect, it's all well and good to talk about diplomacy, but i think we need specific actions to decide what we're going to do and let our -- at this point in time, not our adversaries but hopefully our partners, russia and china, because they have got skin in the game as well i think it's time for us to sit down with them and say this is getting to the point where we all have to worry about this nut, and i use this word advisedly, this nut having this kind of power, calling us as a nation bastards the other day and saying he could get us. >> yeah, i'm concerned too, and i do think we ought to sit down

with russia and china, don't get me wrong, but that is diplomacy. >> i agree with you. >> let's don't get the nation on a war footing. let's don't talk about military options that will really cause terrible damage if we can avoid those military options. >> i agree. >> just think back to the early 1950s. the united states was fighting in the korean war. the soviet union had just gotten nuclear weapons. we were developing an h-bomb there was talk in this country that how could we live with the soviet union if it had an h-bomb because our expectation coming out of world war ii was we were the only nation in the world that had nuclear weapons in 1949 then, the soviets exploded the a-bomb. then there was an invasion of korea. people in this country were frightened general eisenhower became president of the united states he solved the problem in korea we did not go to war with the soviet union he knew war was something to be avoided if at all possible

and i think we've got to think our way through this and not fall back on the sort of reflex that says we've got the greatest military in the world. look, i was part of that military, i love them. b >> a military resolution doesn't work in this case, okay? there's no more land wars, they're gone. >> exactly and what we also have to realize is -- ken, we have to realize russia and china, they don't have the same interests and objectives as values that we do. so yes, we have to talk to them, but we're not going to get a magic solution out of china. we have to work that solution. we have to put our chips on the table. we have to have maybe a few more chips. we've got to talk about the whole thing. you know, there's a lot of issues between us and china. there's trade, there's the south china sea, there's taiwan, there's those japanese islands that the chinese claim the chinese would like to have

okinawa. we have marines stationed on okinawa. and since the late 19th century it's been part of japan. so there are many issues between the united states and china. this is one of them. but i think if we put the diplomats together, we keep military force in the background, that we can find ways to stabilize the situation and move it forward. ultimately the korean people have to resolve this. >> sir, i think we've been doing this all along, before president trump by the way >> right. >> look, every time this guy takes his sword out of his holder, what has he got? he's got something far more devastating. i mean the guy is moving in a direction that we have to be concerned. with all due respect, i'm an optimist believe me, i'm an optimist. i think our best days are ahead of us -- as a nation are ahead of us. but i also feel strongly that we've got to understand this is

a very serious existential threat to our society and our way of life and this includes china and russia and poland and everybody else. >> ken, hold on there. general, hold on we've got hard news actually hitting. it's the adp employment report as a business network we've got the big jobs report on friday. so coming up, we'll take a quick break. we'll have that adp employment report right when it breaks. there's the estimate for june adp, 180k ive ctpratseor payrolls stay with us, we'll be right back w vinvesting 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.

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adp employment report just hitting the wires. june payrolls are up by 158,000. adp may payrolls revised down to 230,000 so the number coming in a little light of expectations the estimate was for 180,000 the actual number, 158,000 joining us right now is mark zandy. mark, what do you think of the number >> a solid number. you know, we've been creating 150,000 to 200k per month consistently for the last almost seven years. this is just another month of 150, 200k. so the economy is doing what it's been doing for a long time.

>> a strong job market and the fed has started to raise some questions about inflation. why are we not seeing more inflation when you're seeing such a strong jobs market? >> i think we're impatient it takes time. there's a lot of moving parts here you get a tight labor market, it takes a while for labor to figure this out. demand higher wages, wage growth begins to pick up, that takes time translating stronger wage growth into higher rates of inflation takes time, particularly after a long period of an economy that's been struggling. we're only now back to full employment ten years since the last time we were here, so given that, i think businesses are very cautious about raising prices more quickly. workers are more cautious about asking for bigger wage increases, so i think it's just going to take time, but it's going to happen. 4.3 unemployment rate that's falling. we're going to fall through 4% we are going to get those wage and price pressures, it's just down the road. >> how much time would you think? is this something that you think

becomes a bigger issue a year from now >> yeah. to just give you a number, so the core consumer expenditure deflator, that's the key inflation measure the fed focuses on is 1.4, 1.5%. a year from now if we're sitting in this room having a conversation, i think it's clos to the fed's target of 2 two years from now it will probably be 2.5, even at some points we may approach 3%. i think the fed is just going to be slow here in normalizing interest rates that means we're going to have really a very, very tight labor market in fact businesses number one problem will be i can't find workers and they'll have to raise wages and prices more quickly. >> mark, i want to thank you for joining us again the adp employment report, looking at the market reaction it still looks like futures are down by about 70 points for the dow. mos mark, thank you very much. david bailen is still with us you've seen a lot of stuff not

directly related to whether you're buying or selling today. >> that's right. >> your overall feelings about the environment we're in right now? >> i think it's a continuation of very positive news for the u.s. if you put that in the context as an investor and you think about what you should do, the fact is you're going to maintain your confidence in our economy you're going to see the consumers are going to spend when we talk about unemployment going below 4%, the number of people who will be able to have meaningful jobs, meaningful wages, the number of people brought back into the labor force in the u.s. who were previously unemployed is very strong this is very positive for the end of 2017 and into '18 and reflects citi's view that we'll have a very good backdrop for the next 24 months what i was saying before is the global economy is similarly doing very well. it's growth across the emerging and developed markets that's the backdrop for these equity markets and that's very positive as long as the fed and central government don't get involved

and interfere, we're in a good place. >> we appreciate your patience sticking around, but the news keeps happening. >> no problem, thank you. >> thanks david bailin. president trump wrapping up a speech in poland just about 20 minutes ago. he's going to be heading to the g20 summit later today joining us right now to talk about all of this is max bachus, the former u.s. ambassador to china, former senator from montana. ambassador, thank you for being with us this morning i'm assuming that you saw the president's speech we were looking at it an thinking this is something where he's reasserting america's leadership on the global stage what did you think of the speech >> well, i thought it was good i think it's an example of the opportunity he can take advantage of, namely here he is over at the g20 and it's an opportunity to show american strength, to show that he is a very strong president. he's presidential, and gain the

respect of all the participants in the world it's a great opportunity i hope he follows up with the rest of the g20. >> what would you like to see him say at the g20 already at this speech this morning he reasserted our defense of article five of nato, that if anyone is attacked we will stand behind them what is the important message you'd like to see coming out of the g20 >> first of all, i think he should basically stay to script. that is well prepared -- i hope he's well prepared going into it, at least the bilateral with president putin. if he does a really good job, sticks with the message that the united states has, then he will earn much greater respect. my personal view, he has to bring up the subject of russian intervention in the elections. he may or may not, i don't know, but i think he should. he enclosure lclearly has to brt korea because it's becoming an existential threat and sanctions on ukraine possibly and syria as

well certainly russian intervention as well as the north korean threat. >> let's talk a little bit more about the north korean threat. we just had a conversation with general wesley clark about what you can do with that situation obviously a lot of the military positionings look very problematic, but what do we do when diplomacy has not worked for years and years and years? >> well, i listened to general clark on your program and i thought he did -- he's right basically spot-on. military option is probably the very, very last option it's not going to work it is true, diplomacy has not worked, but has not worked thus far. there's a lot more we can do in exercising the diplomacy card. get other countries much more closely together, unified against kim jong-un, finding new ways to leverage china there's a lot we can do here but it takes a strong, thoughtful

plan, as general clark says, that has not yet emerged we need that and to pursue it. >> senator, what would be some of the things you would do specifically in terms of diplomacy that we haven't done yet? if you suggest this is the only way -- >> well, first -- >> yes, sir. >> well, first i would -- i'm sorry. first i would get other countries much more together and make it very clear, as i think you and others have, that, hey, this is a world problem. it's not just the united states. >> exactly. >> south korea and japanese problem, it's a world problem. and make that very -- and put pressure on other countries, countries as small as the netherlands, because netherlands is in it just as much as all the other countries are. we need to pressure them, pressure them, leverage them, exercise leadership. the united states is the only country in the world that has the ability to provide leadership to solve a problem like this.

other countries won't. they're waiting for us they're waiting for us to provide the leadership this is why presidents run for these jobs, to provide leadership of america for the rest of the world. this is an opportunity we've got to double down and provide it. >> senator baucus, thank you for joining us this morning, we appreciate your time >> you bet thank you. >> we're just days away from cnbc's annual top states for business i thought we had gary cohn on, so it's scott cohn >> the other famous cohn. >> he is in mountain view, california hey, scott. >> i don't know how to take that i'm not that much -- i think gary cohn and i are probably about the same age anyway -- >> don't feel bad. >> no, not at all. we rate the states as you may know on 66 metrics across ten categories of competitiveness. they include things like workforce, infrastructure, cost

of doing business and quality of life and that's where the issue of inclusiveness comes in it keeps popping up in our studies. states are kicking in and talking about it california has just banned state-funded travel to four states that it says have laws that discriminate against lgbt people alabama, kentucky, south dakota and texas. those on top of already band states, north carolina, kansas, mississippi and tennessee. >> to travel to these states at state expense would mean that we would be using taxpayer dollars to support these states and we think it would bean offense to all those individuals in america who feel the scourge of discrimination. >> so are these states changing their laws no, not yet. the governor of texas said california may be able to stop its state employees but it can't

stop all the businesses that are floeing to texas but the mayors of lexington and louisville, kentucky, both asked for exemptions from the ban, talking about their local protections, but california has said no to that. now, inclusive laws alone are not enough to make a state a top state for business, but lack of inclusiveness can make a difference we found that last year just based on the math. north carolina and texas might both have been at or near the top of our rankings last year instead of just in the top five if they had been a little bit more welcoming to workers. but again, that's not the only way to be a top state. our rankings coming out on tuesday, you can see how all of this shakes out, how your state stacks up and where i will be in america's top states for business lots more about all of this, topstates.cnbc.com. >> have you got any clues for us >> the clues will come next week but, you know, you might -- >> give us a freebie. >> you guessed last week, you

guessed texas. are you sticking with that >> yes >> okay. all right. anybody else >> till i get other clues that tell me otherwise, i'm sticking with texas. >> all right and there will be -- they will be as diabolical as ever, i promise you. we've got a lot of fun planned next week. >> scott, thank you very much. scott cohn. when we come back, weekly jobless claims are about to hit the tape we will bring you those numbers. plus we'll talk to senator bob ayefm. about health care ror st tuned, "squawk box" will be right back your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember.

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xfinity. the future of awesome. good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square among the stories front and center, mortgage applications rose 1.4% last week according to new figures. the increase was driven entirely by new home purchase applications refinancing activity actually fell the average 30-year mortgage rose seven basis points to 4.2%. liberty interactive has struck a deal to buy 62% of hsn that it doesn't already own. liberty's acquisition of the home shopping channel is valued

at 41 a share. costco reported a 6% jump in same-store sales and that was well above forecast. >> we are just a few seconds away from the weekly jobless claims and trade deficit numbers. let's get to jim at the cme in chicago. jim, take it away. >> guys, we've seen the adp numbers which were very disappointing. these numbers come out for jobless claims we see 248, which is a little worse than expected, 243 for continuing claims we see 1956, again a little worse than expected the adp number came out and was worse than expected. that is the one number that has been trending better than expected over the last three releases the stock market stays put, down 8.5 at 2419 and the s&p ten-year has gone down a little bit it was 2.38, now it's 2.378.

this is fascinating, particularly when it comes in light of the fact that yesterday the fed was talking hawkish. now, nfp is tomorrow, which is hugely significant because the last three have all been disappointing ranging from very disappointing three months ago to just mildly disappointing last time. back to you, guys. >> all right, thanks for standing in today. we appreciate it we'll see you next time. let's get to senator corker. lawmakers will be heading back to work on monday. the health care bill will be front and center joining us from his home state of tennessee, senator bob corker senator, it's good to see you. i don't know if you had a chance to see dan heninger's op-ed piece today. i wouldn't want to read it if i were you you're well aware of the problems hurting the senate but they do point out that the moderate gop senators, especially in states that have medicaid, you know, you've got

those guys on one side and you've got rand paul and others on the other side that want to get rid of all entitlements. what the heck is going to happen how do you bridge that divide? okay senator -- sorry, senator, start over they didn't have your mike on. start from the very beginning because we didn't hear the first part. >> am i on now >> yes. >> am i on now >> yes, sir. >> so look, look, it's tough bringing everybody together. let me just start with the greatest threat to our nation is the fiscal crisis in front of us, and it's coming closer and closer we have got to deal with the mandatory spending issues. we have to deal with them. it's 70% of our spending medicaid reform has to occur there are a few states around our country that in essence are holding us hostage but look, for us to say to

states, look, we'll continue to have themedicaid expansion and here's the deal, we'll pay two-thirds of the cost if y'all will pay yone-third of the cost. we'll give you the flexibilities that you need to make it work. and for them to say, no, we would throw everybody off the rolls and for people then to say we are heartless to me is a ridiculous proposition joe, we have got to deal with medicaid i'm way on the toomey side of medicaid reform. there are some issues with the exchange that we need to deal with i think everybody recognizes in our caucus that if somebody is making $12,000 a year and you only give them enough of a subsidy to buy a $6,000 deductible policy, that's not really health care and so we do need to deal with this but joe, this has been something that we've been counting as a $2 trillion fiscal savings. right now we're sitting at about $320 billion that's going to be reduced some

because of the subsidies i just mentioned. and we're doing away in this bill with all of the revenues which were a part of the $2 trillion in savings. so we've got a lot of work to do to save our nation i believe it's almost inevitable without abrupt changes that we're going to have a fiscal calamity in our country and we've got to quickly move to a place where we resolve this issue. >> i worry that some senators are too sensitive or too worried, you know, about criticism from the left, which is hyperbolic about people dying. i understand the issues here, but let's -- you see california was looking at single payer. they wouldn't have been able to do one other thing roads, schools, fire department -- one other thing. in some states that have medicaid where it's gotten so many people are using it now as health care, a lot of other

programs really -- programs that are much needed and very beneficial to people's lives in those states, there's no room for those anymore. so sometimes medicine is tough, but these guys don't seem to have the backbone to realize that sometimes it is tough to do what's necessary to preserve a program or to preserve solvency. you can't -- you know, there's no free lunches. >> you know, joe -- >> go ahead, ken. >> ken langone. >> ken's got a medical center so he knows a lot about this, langone medical sglercenter. >> and your point, the federal government pays two-thirds, however it's divided up, the fact is at the end of the day it all comes from the taxpayers and we have to make a decision we're going to spend less or tax more. but you're right about the problem. and i think what we need to do is to address the issues in terms of what can we afford as a

society. and that's not a pretty picture because what we're effectively going to say is there are a lot of things that the government can't be responsible for we're broke. and we are broke we're $20 trillion in debt going up every single day. so i think we need to get more specific about exactly what we can do and what we can't do. and i understand this is a very thorny political issue you take obamacare, for example. we've put 25 million people on a health care basis that weren't there before you can't take it away we have to be realistic. we can't take it back, it's too late once you give it, you know this better than me, senator, once you give these entitlements out, it's awfully hard to say to people we've got to take them back from you. so i don't know the answer, but it's a serious challenge >> yeah. if i could -- look, there's no

question the meetings we've had, for what it's worth, have been very substantial and they have not been the way it's been portrayed where there's been a lot of infighting people have been expressing themselves strongly. ken, let me get to your point. cnbc, joe, becky, everyone for two or three years ago focused on, you know, trying to fix the debt i think it was called rise above. let me tell you what's happening right now in this bill so you're right, we've given these benefits, it's hard to take them away we are trying to make it work better we're giving flexibilities, waivers to governors we think these things are best done by governors. so there was $2 trillion in savings projected in all of the ryan budgets and all the senate republican budgets if we did this the right way what we're also doing, ken, as part of this is we're doing away with all of the revenues let me say that one more time. we're doing away with all of the

revenues, which is about $750 billion of this. so not only are we beginning to spend more money on the medicaid side because -- and now we're getting ready to flood the zone with opioid treatments look, it is an epidemic. i think we need to be prudent as to how we deal with it but this bill the way it's now being crafted also does away with all the revenues. and so, you know, the ryan budget had those revenues continuing that's the way we balanced the budget over a ten-year period. now $750 billion will be coming out of the revenue side. so not only are we spending more here, we're reducing the amount of revenues that are coming in again, hastening the fiscal demise that we're going to be facing as a nation >> then -- i don't know. in the heninger piece it talks

about the opioid situation that's convenient, senator, to not do anything again. i mean it's a terrible epidemic. that's not what we were talking about during obamacare that's not what we've been talking about for the past seven years. suddenly here it is an we can't move forward on repeal and replace because of this new thing for some moderate senators to complain about. it's frustrating to a lot of americans because we don't see anything happening should we be optimistic? >> no, i don't think -- look, joe, i'm sorry, i'm watching the fiscal side of this and 90% of the time i've been on your program it's been about the fiscal issues. i am more concerned than i've ever been that our nation -- we've got all these threats around the world and appreciated the very well delivered speech

today the president gave and sort of resetting the way we're going to focus on europe i appreciated that very much but right now our greatest threat is ourselves. we have $20 trillion in debt and we're continuing to do things that make that worse every day and i believe unless something abruptly changes very soon, we will have a fiscal calamity and it's going to make all the other ills that we're dealing with in the nation pale. and who gets hurt the most the lowest income citizens get crushed. so, no, i'm not hopeful. i still want to fight to save our nation but as i watched what's taking place right now, we're doing the worst of everything. and again, 17 or 18% of our revenues, by the way, will be done away with in this current bill so we're moving further away

from balancing our budgets by virtue of the way it's being laid out now so both sides. i mean, you know, joe, fiscal conservative -- well, conservatives now define themselves as spending the same amount of money but if you don't pay for it, if you don't force people to pay for it, that is -- as a conservative worries me a lot more than north korea, a lot more than china, a lot more than isis as ken mentioned, we've given a lot away we don't really want to raise revenues right now we're acting like we're going to lower revenues 17% or 18%, but we just haven't as a nation been able to face these tough issues in a way that any of you would face your own family issues. >> it's a big philosophical question about whether we end up with a entitlement state like

some countries over in europe but the growth is much slower. that was the genius that was pointed out by heninger too, the genius of obamacare in getting it to be a program that you can't get rid of is the medicaid expansion because now it's very, very difficult and heninger points out maybe gruber was behind -- the guy who said how stupid the american people are this is almost like the trojan horse that made it so it's basically not repealable. >> i don't think it is repealable. >> so it was a great piece this morning, very great piece. as a matter of fact, what we're finding, and we realize this privately, the obama exchange piece, forget the medicaid piece which is where most of the additional coverage takes place. >> right. >> the obama exchange piece is almost unsolvable now. it really is i mean i'm just being honest, because what you're doing is you're saying you're going to cover all pre-existing

conditions you've got a small pool. and so it's going to continue to run out of control it is. i mean there's almost no way of solving it and so people are beginning to realize, well, i mean the way to resolve it would be to move them into some other government pool. but what you're doing is actually expanding what's already been put in place. so you're right. it's a very -- it's a lose-lose proposition at the present and that's why you're seeing so many people having difficulty coming together with this and a few states, i believe, i'm sorry, i hate to be -- but are somewhat holding us hostage from doing some of the things that ought to be done on medicaid reforms. anyway -- >> senator, thanks for the frank discussion good to be with you. it was a pretty good speech. i don't know, it's nice to hear the west talked about in such glowing terms rather than sort of feeling bad about being the

west i don't know, it just had a different tone than a lot of the speeches we've seen lately that have been made over in europe. anyway, not mentioning any names. >> we're the greatest nation on earth. we're the greatest nation on earth, we just need to make sure that we keep ourselves that way. >> you bet, senator. >> thank you, senator. see you. >> thank you. >> tennessee is great too. love nashville up next, "squawk box" hits the road in a very rare ride robert frank, what do you have for us today >> reporter: well, becky, we're going to show you an exclusive look at the most expensive, fastest production car on the planet i'll tell you what it costs, who's buying it and how fast it goes and how fast i might go later toda cinrit y,omg ghup

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over the past 20 years, the biggest laggards in the second half are materials, utilitie these days families want to be connected 24/7. that's why at comcast, we're always working to make our services more reliable. with technology that can update itself. and advanced fiber network infrastructure.

new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most. >> each day it's a little weird because averages erupt and the others are down and the transportation average did hit an all time high does that give it more legs do you think? >> i think yes i look at the transports as being a good indicator of commerce and the world is pretty good i'm totally mindful about what is really a crisis with north korea where people are very

worried but regular people it doesn't seem like the politicians. many of us are scared but it's hard to factor that in on the basis of howell our companies are doing and i don't want to give those companies a hair cut given the fact that the numbers are there. >> jim, i agree with that. the concern i have is that our politicians aren't aware of the dangers of both situations korea and the fiscal issue in america at the same time think about us as a society not having the financial wherewithal to do what we have to do defensively with something as bad as korea that's the worst situation in the world. >> you know my wife. at the dirn table i sit there and i say how far with k those icbm goes good-byes? we understand there was an article of survival in the new york times and you say is anyone else thinking about this i think the regular people are i think the politicians are and

even general wesley clark they seem to think there's diplomacy with a crazy man this man is a crazy man. >> we've talked to korea, we talked to russia, we talked to china. we tried diplomacy and where are we he demonstrates more and more his capacity >> he's asking for it i think. but what do we give him? we have 20,000 troops in south korea. it's our guys. our guys are there this is not some abstract thing. i wish this were different footing. how about a footing that recognizes some what like the chinese are not our friends. we used to think that with mr. trump when he was running. they're not our friends and they're not going to intermediate for us. they're the only real trade leverage out there they're not our friends. >> china desperately needs us as

a market you take away america as an outlet for what china produces and china has their own serious problem. these are the things maybe we don't put the country on a war footing per say but the american people ought to be made aware of the serious dangers that stair us in the face right now. >> yes. >> that's all. >> i think you're right. the chinese get free reign i thought when president trump came in there would be a shutdown of all the give aways to china it hasn't happened yet and i keep expecting it to happen but it hasn't gone our way. >> all right we're going to -- we have one more thing here. the most expensive and fastest auto on the planet and do they generate the ones we use.

>> we're getting a little french on you >> this is a car that defies the laws of both physics and economics. it is the fastest production car on the planet right now is limited for only 26 miles per hour the top speed is secret for the next year. you stick a price on this. the starting price is $3 million. that's before any of the options that people get like this incredible exposed carbon fiber wrer he they get their name on the seats and check this out, even the door has a little projector and reminds you what you're driving when you pull into your garage under 2.5 seconds. it's a 16 cylinder quad turbo.

it would train the gas tank in nine minutes >> 42 vehicles, three private jets and a yacht back in 2015 during the whole emissions scandal they were considering killing the program but the president came to the board and said we have to keep this going there's so much demand and we see that if you order this car today there say two year wait. i'm going to drive this and give you the results after runlunch.

>> wait two years, pay all that money and you end up driving a volkswagen. >> it's a bugatti. not a voswenlkag. >> semantics thanks robert. we'll be right back. just like the marines did. at one point, i did change to a different company with car insurance, and i was not happy with the customer service. we have switched back over and we feel like we're back home now. the process through usaa is so effortless, that you feel like you're a part of the family. i love that i can pass the membership to my children, and that they can be protected. we're the williams family, and we're usaa members for life. call usaa today to talk about your insurance needs.

you still have huge faith in the problems but there's big problems we need to solve. >> we're seeing the $3 million oil deal in the same segment we talk about not being able to pay our bills to help poor people have better health care we have some serious social issues here we have to address all that said, i still believe if you look at the world, we're the best place to be and more importantly, i think if we come to grips, if we can get everybody to lower the rhetoric and say all right these are issues we got. you're going to give up a little bit, i'm going to give up a little bit but this is going to be the way forward i think question do it i think we will do it. why? because if we don't do it the alternative is ugly for everybody. all of us. so when you're in that position you say got no choice.

i got to make -- so i'm very optimistic i continue to be optimistic. recognizing there are serious issues that we have to address in a very constructive and positive way. >> i wish we had more time today. the president's speech was almost 40 minutes. we appreciate having you here for all of this time we always love seeing you. >> i love being with you and all i can say to the american people love us as we are. there's nothing better on this earth. >> next time you come in andrew will be here. >> good. we'll have philosophical discussion. >> that does it today. make sure you join us tomorrow right now it's time for squawk on the street. ♪ welcome to squawk on the street you'll see some red on your screen this morning at the open. futures down on a weak adp number markets watching the president in warsaw now heading to