"squawk box. >> good morning. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. if you look at the u.s. equity futures, they are indicated up once again even though the s&p, dow and nasdaq closed at record levels once again yesterday. the russell 2000 closed at a record high. the s&p 500 information technology index which we never talk about, is worth talking about today. yesterday it closed at the highest level it's closed at in 17 years you have to go all the way back to march of 2000 with technology crash, the tech bubble bursting. we have finally made it through the tech crash of 2000 overnight in asia, the nikkei closed higher. up by 0.6% the hang seng up by a quarter

percentage point the shanghai up by 0.4%. in europe in the early trading, you will see green arrows across most of the major indices. the dax is up by a half percentage point, the cac in france up by a quarter percentage point crude oil prices which were up sharply yesterday, are down by two cents. wti about $47. >> a couple big stories we're watching this morning. shares of t-mobile are moving higher the company reported earnings of 67 cents per share beating estimates of 29 cents. revenue beat estimates t-mobile added 1.9 million new cust nomers in the quarter. facebook confirming its working on a subscription feature to let publishers charge for stories on the social media site this could take pressure off of them in terms of the battle with the news industry. the pay wall will be available

through instant articles starting in october. it would likely kick in after a user reads ten articles in a month. facebook shares up 15%. on the wall street agenda another flood of earnings report abbott labs, travelers, union pacific, bank of new york melon and blackstone we'll lear from hear from ebay and microsoft after the close. and the ecb will announce the latest interest rate decision at 7:40 mario draghi will hold a news conference at 8:30 also at k 38:30, weekly jobless claims and the philly fed survey >> i'm surprised, andrew, you threw in the towel about your skepticism about the market. the train and all that stuff >> i didn't. >> yeah, exactly he has to act on it.

>> then you know it's over >> give us a heads up. >> my favorite thing now though is that this 20% gain since the election, he attributed it yesterday, very animated, to the fed. he did that. as opposed to the previous administration, where the sound policies of president obama -- >> andrew did that yesterday >> i wasn't here yesterday >> that's right. >> the previous gains were due to the sound policies of president obama and the global leadership, but now since president trump got in, it's the fed. even though the fed is in tightening mode. this is all fed induced now, sort of. >> you still think tina is going on >> you do. but the inflection point has been hit >> actually, i'll be more generous than that whoever the president is should get -- you can get the credit during that period

>> okay. now you're working on me i'll have to admit that. that might be your thing >> i'm just suggesting >> okay. >> who appoints these fed chairs that's the piece of it >> if you -- if you go to bed early -- i saw all this yesterday. things happen after 5:00 do they not? did you see the "new york times" interview? >> great interview fascinating. >> then this was sad news about -- not necessarily, because maybe they -- they said when they fixed the blood clot -- >> talking about john mccain >> they saw some of the affected area they thought they removed as much as they saw so who knows senator mccain, as you probably know, has been diagnosed with brain cancer it was at the mayo clinic. doctors removed that blood clot from above the senator's left eye on friday. then i guess you do a biopsy

at this point the mayo clinic learned yesterday, i think it took three, four days that subsequent tissue pathology revealed a brain tumor associated with the blood clot the senator is looking at perhaps a combination of chemotherapy and radiation meghan mccain said the cancer may inflict him in many ways, but it won't make him surrender. president trump tweeting melania and i send our thoughts and prayers to senator mccain, cindy and their entire family. get well soon. they expect him back in the senate soon. and hopefully that's true. we wish him a speedy recovery. >> gleoblastoma is tricky,

because there's microscopic pieces that can be attached to the nerves but he's a huge fighter, warrior. >> aggressive, i guess >> it is probably no better place to be than the mayo clinic >> different than president carter he seems to be -- >> he made a miraculous recovery >> yeah. let's talk about political news. president trump having some buyers remorse over his pick for attorney general criticizing jeff sessions in an interview with the "new york times. eamon javers joins us with more on this. good morning >> good morning. this is an astonishing interview the president gave to the "new york times." in it he talks about jeff sessions who he says gave bad answers in his confirmation hearings on whether or not he met with the russians, when he met with the ambassador to russia a number of times the president venting his

frustration. here is how he put it yesterday. >> sessions should have never recused himself. if he would, he should have told me before he took the job, i would have picked somebody else. >> the president saying she have told him before that he would be recusing himself and then he would have picked somebody else. the president also talked about com comey, the fbi director at the time, the meeting they had he said he felt comey brought up the dirty dossier inappropriately, and that it was done so that he would think -- sorry, he said in my opinion he shared it so i think he would have it out there. so he thinks comey used it as leverage against the president of the united states he also said that he described his dinner with vladimir putin, that undisclosed meeting session

that was reportedly up to an hour long with vladimir putin. here is how he described that meeting with vladimir putin in which the president said nothing inappropriate happened >> i went down to say hello to melania. while there i said hello to putin. really pleasantries more than anything else. was not a long conversation, but could be 15 minutes, just talked about things >> so the president saying it was not a long conversation, just pleasantries more than anything else. they just talked about things. he also suggested that the topic of adoption came up, that's a similar topic that came up with don junior and russians last year at trump power. that's one of the topics on the minds of russian officials as they met with trump. >> i thought it was in a separate room. watching some of the coverage. so all the people were still around it was at that big table, they

were all milling around. >> yeah. the way it's described is he and putin were sitting at a long table with lots of spouses, they were diagonally across from each other, at some point trump goes around and sits next to putin. that's when they have the face-to-face conversation. it was either up to an hour or 15 minutes depending on which account you believe. >> i was -- i can't -- i can't exist only in my bubble, my eco chamber. there's times i have to by accident, i see some of this other stuff. at the gym at the treadmill -- >> what were you reading >> i wasn't reading. i was looking up all the kcable channels are up there. i looked and said wow, they're -- they are -- they like this story at that point i guess i knew it wasn't in a private sound proof room, spy versus spy

it was -- just watching the coverage they love this story wow. a lot. >> do you have an opinion on it, joe? do you think this is the right call for the president >> i was thinking about the open today actually i was looking at that. we'll have -- no, i haven't been -- i don't have an opinion on it. it hasn't been a -- it's not like in the top ten for what i'm focusing on today. i saw padraig harings rington wo there last time is in the mix. ian poulter is 1 under >> eamon, i have one for you i was also at the gym, but i started reading "people" magazine >> you guys are regularly physically fit >> "people" magazine >> "people" magazine which has the trumps on the cover. fascinating story about the family >> mm-hmm. >> claiming that don jr. is miserable and can't wait for the

presidency to be over because he says this is like ruining his life i was curious as somebody who spends their day at the white house, how happy or unhappy you think the family is doing this >> it's hard to tell from inside the white house. you rarely see the family. i see ivanka trump frequently at various events, but we never see don jr. there. because obviously he's not involved in the way that ivanka is or jared kushner is there is a level of sort of royal family intrigue with this presidency that we have not had with other presidencies. we have not had all the children so deeply involved in the politics and business. >> we never had coverage like this of any other president. how would feel if you were a trump? >> you have to go back to the kennedys before you find a family that was this involved. >> michelle obama hated some of this stuff that went on. >> it's true >> being the child of a president is difficult it's hard to be in the fish bowl but this fish bowl, it just has

been a worse fish bowl to be in. you've seen it you watch. all right. i wouldn't want to be involved are you miserable, eamon are you good you all right? >> i'm good. i'll tell you what, it's a little hot out there on the north lawn these days. >> all right >> other than that, i'm good >> you're hot. you're hot >> thanks. >> i have a suggestion for you -- >> hit the jim >> seersucker. >> there you go it's big in washington this is an old southern town >> kyle, come over here and get his pants. >> what are you wearing? >> i want to make a recommendation see what's going on here we have seersucker >> not complete without the jacket >> the tennis shoes, that makes it >> no belt >> i figured it's the summer >> you are a vision of summer, a andrew >> underneath is a thong, i'm told >> i'm wearing a dark suit >> you walked in

>> it was more for joe joe and i were joking yesterday about seersucker >> you have to give people the whole look i have never seen anything like it who is that guy, the monkeys throw doo-doo at, tom wolf he walked around like that i couldn't even -- i couldn't go out in public, number one. i don't think i could walk by a mirror in my house >> i don't know how you make it past mirrors now >> good one. >> that was quick. >> actually, my image doesn't appear in mirrors. >> oh. major indexes coming off record closes. for more let's bring in jurian timer and andres garcia zamaya

jurien, earnings front and center, not bad. earnings growth not bad. a couple outliers, but in general the earnings we've seen have justified some of the move in the market, is that correct >> for sure. q1 earnings are up, q2 earnings being reported now the estimate was about 7.5 usually you get a downward drift into the earnings season that did not really happen with the q2 numbers there's a resilient tone to earnings now the same happens to the calendar year 2017. that's been steady at a 12% growth rate. clearly good tailwinds, not only in the u.s. but globally that allows the markets to keep valuations higher than maybe what i would like to see but without an earnings catalyst to the down side, valuations can stay up there. there's very little rocking the boat now for the markets >> shouldbe. you have not just the

possibility that tax reform is just as difficult as obamacare repeal, but you also got the specter of this whole mueller investigation and everything else it would seem there's things that a market that was less sanguine, that there's some things that they would be worried about. is tax reform not essential? is obama repeal and replacement not essential? >> for the markets they are not essential. they would be nice to have, if you will the key factor is the global cycle turned up about a year and three months ago. really led by china. china reflating again. the global underpinning is strong and that kind of removes the physical side in the u.s. as an veept initi event initissential thing we nee i think the market is driven by

the global cycle if you go underneath the market and look at small caps, small caps relative to large caps, you have a letter view of the domestic agenda versus the global cycle looking at the s&p 500, pretty much a global index, that's driving things what do you think shgyou think,r thoughts >> valuation, when you look at year out, it doesn't tell you anything about what will happen next five years out it predicts close to half of -- or explains half of what drives the market. looking year out, yes, the market is expensive. you have earnings momentum, you have price momentum, and you have a fed that's boring you were talking about policy in washington, but the fed is as boring as it could be now. that, the market loves >> the fed is in tightening mode, reduce the balance sheet

>> ever so slightly they might raise again. >> going the opposite of the way they were going for eight years. >> that's true, but starting from low levels. >> very low levels, which makes you wonder what is the terminal point where they stop raising rates. what is the new normal 3% >> good number we have two hours to discuss, that's a big one for sure lower than it used to be, but not a lot of people think 1% is the number closer to 2%, maybe 3% used to be between 3% and 4% we can discuss that range. but 1% still seems low, considering inflation is closer to 2%. >> you could argue that makes multiples maybe permanently -- if it used to be 16 to 20, maybe it's now 18 to 22? >> that's when you can get into trouble playing that game. even if it is above average, i don't think valuation tells me anything at this point

>> you were talking yesterday about -- some of our commercials, if you watch, the some thin sock thing >> the sock thing. >> and we have one where people say silver, it's my favorite if i had one thing to invest in, it's silver. silver is as dead as anything in the water, and the market is up 20%. why would i listen to you? >> not to knock our advisers >> that was on fox >> okay. >> bitcoin -- >> i don't watch us. kidding. >> i got a call for bitcoin ira. >> really? >> yeah. >> andrew already has that, don't you? >> jurrien, thanks when we come back, talks between december kovry and sdis,

we will talk about the industries likely to see merger activity in the second half. and the three of us too an emotional intelligence test that is used to determine leadership strengths and weaknesses we'll show you the results at the bottom of the hourand tell you how you can improve your emotional intelligence "squawk box" will be right back.

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welcome back wait until you get these eq tests. spanish language broadcaster univision has held early stage talks with liberty media according to a reuters report that said there's no certainty that malone would pursue the talks further. this wouldn't be the first time univision has explored a sale. it's been in talks with cbs and time warner in the past. let's talk about some deal making and other potential media deals. discovery and scripps said to be in merger talks as the industry contends with rapid change jo as we look back on the past quarter and try to look forward, where do you think we are? the last time we were talking, we talked a little bit about

what seemed like political uncertainty. but you said you thought we would break through any way. >> well, yeah. i do because the fundamentals are very good. and the industries like telecom and media, what's tomorrow for those industries they have to do something. so, there will be a fair amount of activity. one thing about us is that we're looking at the president and saying things are down they're down compared to 2015 when they were extraordinary they're still very solid and the macro conditions are there. you got, you know, take media industry what is it where is it going? how long are we going to blockbuster? now you have amazon prime, you have everything. >> let me ask you, on the media front, do you think people feel like they need to wait to see what happens with time warner and at&t is that one of those dominos that you need to wait for the

regulators to approve it so you know whether these transactions of that size can get done? >> that's a different deal it's gigantic. it's not -- for most deals, it's not comparability. plus it's a vertical deal. not really just adding to what you got. malone and univision would be different. it's a horizontal deal univision is focused on a particular audience. i don't flow about that. at least in the deal community, maybe we're seeing what we want to see but there's a sense that the trump administration will be more accommodating on mergers. >> even in media the president himself -- >> as a candidate he made a comment about that during a pretty intense period in the campaign it's hard to see that being blocked. it's pretty unique i don't think it's going to -- >> let me ask you one pore questimore question about that.

there was a piece asking about whether cnn should get spun off because it ultimately would create headaches for a company like at&t. >> there's been rumors of a plan already in place for this. though it's gotten knocked down. >> well, it -- anything is possible when you mix-up all that many assets, you will realign things. that happens all the time. i don't really -- it's hard to speculate on that sort of thing. but when you think about the world today, and you got all of this pressure, whether it's in media or retail or all that sort of thing, you have to have consolidation. you have to have survival of the fittest. guessing where things are going is hard. but people have to consolidate if you don't consolidate in these businesses, you're standing still >> that's a pretty attractive asset to anybody >> yeah. >> cnn >> yeah. >> that's like a crown jewel >> no question >> very rare

any news s organization would n it i bet at&t, from what i gather, i think they would want to keep it. >> that's what i would think i wonder if in this political context, this world, in the same way -- i'm curious whether you think the politics of an amazon whole foods, given where jeff bezos is and where the president is and what he said, do you think these things matter? >> they do matter. it matters to some degree. politics ultimately doesn't really drive the regulatory train. yeah, people give speeches sometimes there's even hearings. to some degree we're honored when congress picks the topic up fundamentally regulators regulate >> one thing you hear from the bankers today is looking at transactions that would effectively eliminate major parts of the work force. the old synergy. you want a cost reduction number, that in that political

environment you can't do that. >> i don't agree with that >> you don't agree with that >> no plenty of deals have plenty of synergies as part of it very few dael deals are driveny synergies. you reduce costs by 100 billion and capitalize that, give it to shareholders very few deals are driven by synergies. they're part of it, though >> bob, appreciate it. always great to see you. >> recent coverage is infuriating. i will acknowledge, but birds got to fly they got to do what they got to do you can see them they can't help themselves coming up, delta air lines is using facial recognition to help speed up the bag check process. that's just one example of biometric security that's being used to protect your identity from hackers we'll tell you how your body could replace your password. as we head to break, here's

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welcome back you're watching "squawk box" live from the nasdaq market site in times square. welcome back to "squawk box. good morning u.s. equity futures at this hour, look at what's happening as we speak. looking at the dow jones, looks like it would open up higher again.

23 points higher nasdaq looks to open up higher s&p 500 about 2.5 points intel now reportedly axed the group working on fitness trackers and health wearables. it had been pulling back from that group after the basis fit watch had not panned out we used to talk about that watch. intel has notwearab wearables on its earnings calls since 2014 jawbone is in the process of liquidation. i used to wear one of those all the time pebble watch >> i have one i'm not wearing. >> fitbit stock itself has been declining, down 7 0% since the ipo in june of 2015. people are thinking these things are more like toys >> i liked it when i wore t bs ,

but it started irritating my skin >> i liked it until he figure out my sleep patterns. cybersecurity experts say security hyper vigilance can prevent hacks, but using your own body is the way to do it tom grissen is ceo of daon tom, explain what daon does. >> it's a software product company. woe use biometrics which are human factors uniquely you, your face, fingerprint, voice to establish trust. people have their finger points with them all the time, voice, face, nine out of ten consumers approve of it. >> what does experion do with

this information >> it helps protect against fraud, and for us we need to provide the best fraud protection we can for our clients and provide that seamless customer experience >> how long do you think it will be before passwords are a thing of the past? >> they will be around for a while. they're easy, cheap, inextensive inexpensive to use but they're frustrating for consumers. all the special rules, to use special characters or not. there's better ways to provide security protection. >> how many people at this table have a list of passwords because you can't remember them all? me too i have a list of hundreds of them you said cheaper how long before what you do gets to the point where it can sh readi readily used on just about everything >> very soon

we are meeting with banks, health, insurance, it will be adopted in other industries. the market force is that our customers love it. it starts as a way to combat fraud. but then what happens is if companies find out it makes it easier for consumers, consumer scores go up a third of shopping carts are filled online and then abandoned because people forget the password >> i still get frustrated sometimes. i love my iphone, but it doesn't always recognize my thumb print. what's wrong with that >> it's interesting. our philosophy would be that customers should be able to choose any biometric type, voice, face, fingerprint to get access.ations come into play with biometrics

>> how easily can you fool something, like voice recognition? joe does some good impressions >> it's very difficult what we've seen with millions of customers every day, near zero account or fraud takeover. so while passwords could be spoofed, the facts are in the market with biometrics you remember people used to say nobody hacks an apple, that's because they had such a small percentage of the marketplace. biometrics i'm sure are a small part of the marketplace. if you try to get into it, how easy or difficult it is? >> it is very difficult. what would it take to pry to impersonate somebody's biometrics would have to steal the device we create a double lock. then you would have to defeat

the locking mechanism, finger print, then you would have to you authenticate yourself again. >> so a fingerprint, eye or something? >> sure. those are something that companies could set. those are much more convenient than typing in small characters or passwords on a screen >> how long before we are using this for just about everything we do? like atms, how long before it gets to that point >> the marketplace is using a variety of different technologies to provide that securi security we wish there was a silver bullet that could solve fraud everywhere there isn't. so facial recognition, biometrics in combination with one-time passwords and e-mail notification, we think that layered approach works best. >> which sector will benefit the most is it banking? the atms, technology like the cell phone

>> certainly everything digital benefits from this the same way you want to be recognized when you walk into the coffee store, you want toshito b recognized online. that's getting a new cell phone, signing up for utilities any way you're interacting digitally, you need authentication >> thank you very much for coming in. >> great to be here. >> i don't think people could ever find out what my birthday is can they, sorkin guess, in your middle name >> are you joking? >> they could probably do it on google now >> you can you can. some of them have me as younger. i can't believe it >> you want me to say it out lo loud it's right there >> okay. stocks to watch today. unilever posting better than expected earnings and revenue. the consumer goods company lifting its full-year margin target after seeing a big improvement in the first half.

unilever's ceo spoke about the results this morning on cnbc >> a combination of our strong top line growth and the work we're doing behind the organizational chains, connected for growth which we already announced forever next fall, makes the company more agile, closer to th markets, better in innovation, and you see these effects coming through. we feel confident to say we will at least improve the operating margins as a result for the whole year by 100 basis points >> and qualcomm is warning that fourth quarter profits will come in below analyst estimates. the patent battle with apple is taking a toll on its licensing revenue. shares of american express are trading lower. the company's profit declining 33% in the latest quarter. that was hurt by higher expenses as the card company spent

heavily on what they are calling customer rewards coming up, we've been talking about this all morning hr managers use emotional intelligence tests to help identify leadership traits in employees. a ceo tested us this time. we'll break down our results and do it right after the break. the ceo of the american enterprise institute, arthur brooks, will be our guest host at the top of the hour you're watching "squawk box. our eq test results when we return your muscles look good, but we should be seeing more range of motion. i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients

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♪ welcome back to "squawk box. it's called eq or emotional intelligence experts say it can be more indicative of job successthan the better known iq. joe, becky and i took down the test here to break down the results is dr. steven stein.

i read about you and thought, wow, this could be fascinating and you sent this out to all of us >> mm-hmm. >> here we are tell us about ourselves. >> all right >> and what this means >> emotional intelligence is three things your ability to be aware of your own emotions, aware of other peoples emotions, manage your own emotions, manage people around you, and your ability to use emotions to get things done, to make decisions, to deal with stress that's kind of what it is in a nutshell >> you give this test to companies. >> yeah. around the world sure absolutely >> i'm curious before we begin, the best leaders that are famed, that we often talk about or may be guests on the show, do they all score high on this or no >> not all of them but most of the successful ones would score high on this >> okay. tell us, you know -- break it down >> how you did

who do you want to start with? >> i have a low emotional -- i don't care about people. what is -- i wanted nuance in some of the questions. they say do you care about yourself or other people if it's -- if it's my son, my daughter, my wife, something like that, i care deeply >> right less so about andrew or somebody >> exactly >> does that give me a low eq? >> it does lower your score. >> so i would be a better leader if i cared about andrew? >> you would becky cares about andrew, you don't. >> we never met dr. stein before >> read this, if you read this stuff, i thought it got all of us >> it does i tried to be honest, but i can see how a lot of people, i'm motioning towards andrew, might be able to tell what the right answer is to feel like you're a good person, and then they would say what they think they need to say. >> joe is questioning whether andrew answered right.

>> he thinks i gamed the test. >> when you answer at the end, how honestly did you answer this test did you say a couple times or -- >> no, always or often >> often was next to seldom. >> there are other items in there that catch you if you try to game the test >> let's go through each person. >> yes >> you can do me >> your strength, number one strength is assertiveness as you have just shown us you tell it like it is >> i was thinking about that it's good when subjective truth matches with objective truth that's me. everything i think is right any way, so what difference does it matter whether there's -- there's no difference between subjective and objective >> the next strength is optimism you look at the positive side of the things overall you tend to be a positive guy. you mentioned your challenge is

empathy. you care about certain people, but you don't care about other people >> i'm cold, doc i don't give a -- >> impulse control >> i don't give a crap what you think, no. >> thanks for validation >> exactly >> impulse control is another one -- >> oh bull -- bull shih-tzu. >> i have great impulse. >> what about flexibility for him? >> that's your lowest. your lowest is on flexibility. you tend to be a ridged guy. you don't like to change routine. you stay with the same thing >> i don't like change either. >> really? >> yeah. when we go to a new building >> becky now >> becky, you're number one on emotional expression we can read you. we know where you're coming from in terms of emotions that's a great skill to have >> however my weakness -- >> you want to do your weakness? >> might as well jump right in i'm not assertive enough

>> yeah. and that's something you can work on. you can always benefit that. that would be benefiting for you. >> i've been sitting next to these guys forever you might think i can learn. >> ask quayle who is over there. this test isn't worth a damn >> you can game these guys well if you're assertive. >> she's not assertive you would only have one pant leg. >> me. yes. >> number one is self actualization. you are really engaged in what you do you love the work that you're doing. >> that's true >> yeah. >> what else tell me some more good things. >> the good things >> that was it >> you're pretty emotionally self-aware you know what you're feeling, where it's coming from that's a good one. >> empathy >> pretty good for empathy you can read people, know where they're coming from. >> keep going. >> we were going to do your

weaknesses >> does his empathy rise to bleeding heart i think at -- in many cases it does >> can it? >> does it >> no. it's not really -- that's sympathy >> it's not sympathy, it's just knowing. >> knowing understanding where they're coming from. >> he thinks i'm overconfident you say i have low self regard >> yourself regard is low. you're not as confident as he thinks >> i don't believe that. >> he's sort of -- >> he's got billions, deal books, "new york times," "squawk box. >> that's what surprised me about the score. >> sits in for charlie rose. that's not true. east so confident. faux humility. you can't pick faux humility he knows he's playing you, doc. >> i don't think he is he's driven. >> that's true >> he doesn't reach -- >> to get ahead, that's true

on other peoples backs he's climbing. doesn't matter -- absolutely that's true. absolutely >> he thinks he has a long way to go. he loves the track he's on i'm amazed by what he accomplished >> i like this guy i like this guy more now >> telling it like it is >> you offer shrink services as well >> very limited. >> once people get this test, then what happens? >> they get a feedback session, an hour or so. we focus on strengths an challenges >> fixing your challenges, right? >> and improving your strengths. we find it leads to better leadership better work. >> do people take this test before they get a job? would a company use this as a gating factor? >> we have about 170 employees, everyone takes itas part of th on-boarding and selection process. >> so you can't get hired if you have a lousy eq score?

>> i wouldn't say you can't get hired. we put you into training to improve your assertiveness if you are good at a specific gill and we wanted you -- we does a study with the air force. where that empathy for this job was really important. they got the people they wanted, trained them in empathy and saw a huge improvement in performance. >> maybe you don't want very high empathy or eq levels if you were a drone pilot. >> but that wasn't the position. >> but sometimesyou want low e scores. >> certain kinds of sales because you're getting rejected a lot. we did stuff on collection agents they don't have really high empathy. so the profiles depend on the occupation that we're looking at. >> this is fascinating. >> interesting. >> doctor, thank you. >> thank you. >> really, really appreciate this this is fascinating. >> great to be with you. >> thanks, doctor. >> thanks, doctor. coming up, big energy producer that's been under pressure this year analysts will closely watch the

quarterly reports and tell you what to expect next as we head to break here's a quick check on what's happening in the european markets right now. ray's always been different. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and. she can't become a guitar legend just by playing air guitar. the baby's room won't build itself. and her paw won't heal on its own.

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it's earnings season and some of the most anticipated results for the second quarter -- >> it didn't. >> no, it didn't. >> if it went out, it's true so it's not a lie. jackie deangelis is here with a look at what to expect. >> a difficult lead-in yeah, let's take a look at energy earnings. next week is the week and it's important. so far the s&p 500 energy sector is down about 13% year to date it's actually the second worst performing sector. so what big oil tells us will be crucial for the market to continue on this march higher. now, goldman sachs makes the point that the second quarter average price for brent was 8% higher than a year ago, so that's good. but when you take into account the most recent drop from 56 to 45 in june, companies could run into a little trouble, or at least it leaves the door open for some downside risk

because of that price drop, estimates for energy earnings have been cut. looking ahead we'll get halliburton and an dark owe on monday, conoco phillips, shell, marathon petroleum on thursday, we finish on friday with exxon and chevron. analysts are a little cautious there's a school of thought that we could see some surprises here that price drop to the $45 level while not ideal is not necessarily a danger zone for many companies if they continue to manage costs, they may beat expectations and certainly that would boost the stock market, guys >> yeah. i like -- i like that kind of analysis, though but i -- you know, the oil prices are dead in the water right now, aren't they >> right now they are. they have got a little support i still think there's going to be a little trouble going ahead, but we've had the conversation

that it may not have as much of an impact on the stock market as it once did, but certainly i think if energy companies come out with strong numbers it will be a boon and a boost to get us higher from here. >> the other day i was trying to park somewhere i parked in an open space and i had to move because it had a frickin' plug there for someone. >> for their tesla. >> yeah, so i wasn't allowed to park there because i wasn't plugging my -- >> there are people who say in ten years you'll see that everywhere and the price of oil will come down to 10 because we have so much of it and we're not going to need it that's a little bit of an argument that's a way out but something to think about. >> thank you. >> thank you. >> forget everything you heard before this segment. >> a little bit of entertainment news the creators of "game of thrones" have something new up their sleeves. they are teaming up once again to write and produce a new series called "confederate."

it takes place in an alternative timeline in which the south successively secedes from the union with a new american war looming. >> it looks like it should be interesting. >> should be fun. coming up, dow component travelers is set to report in the next few minutes we will bring you the numbers and the reaction on wall street. and our guest host for the next two hours is author brooks. eranntpre resident of the amic eerisinstitute. "squawk box" will be right back. the power of innovative thinking.

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new this morning, the cbo out with new numbers on the gop's latest plan to repeal obamacare. we have the details straight ahead. washington watch we'll talk to a congresswoman

that's responsible for helping set the gop agenda on capitol hill. plus markets now u.s. equity futures are point to a higher open as we wait for an ecb decision and more earnings reports. there's a big conversation taking place behind me the second hour of "squawk box" begins right now live from the beating heart of business, new york city, this is "squawk box." good morning, welcome back to "squawk box" right here on cnbc we're live at the nasdaq market center in times square rules of the eq test, we'll talk about that i'm sure more today checking out the futures, take a look at what is going on the dow looks like it would open up higher again, up 17 points, nasdaq up 4 points and the s&p 500 up about a point and a half. three dow components in the headlines to tell you about. earnings just coming in from

travellers they earn eed $1.92 a share revenue beat street forecast travelers was hurt by hotter weather, losses and lower results from underwriting. nike moving higher in premarket trading. the athletic footwear and apparel maker upgraded to equal weight meaning that growth has bottomed out we're also watching shares of american express they reported a profit of $1.47 per share. it beat estimates by four cents. the company saw a surge in expenses related to its rewards programs joseph. >> yes, andrew i want to start working on some of my shortfalls too after seeing that. >> yeah? >> you work on your confidence, i'll work on my empathy, you work on your assertiveness. >> liar. i'm working on my assertiveness right now. you're a liar.

>> believe it or not, how empathetic is this dude? >> very. >> more compassionate. >> for a right winger too, you are so compassionate. >> it's surprising, i have to say. it's counterintuitive. >> peter >> come on, peter. >> you have a great wife. >> i do. that's true. one redeeming quality. >> people say that a lot of times. you have a great wife. well, thank you. congressional budget office released its score of the republican plan to repeal many of the provisions of obamacare kayla tausche joins us now with more but it supposedly would put something else in within a couple years and this does not take that into account, right, kayla? >> yes, that's correct, joe. this is basically the score that's identical to the one that was produced in january on the repeal exercise that the senate did back in 2015 on this very

issue. the cbo found the deficit would fall $473 billion due to less money spent on medicaid expansion. 32 million people would have insurance. we believe the cbo's methodology is flawed but it continued the full-court press into the night. administration officials holding a three-hour meeting with gop senators, that did not include susan collins. but that meeting followed the president's lunch to sell republicans after which he told "the new york times" that health care is a brutal process and said he would prefer to do the replacement at the same time but that meeting late on capitol hill took a somber turn when senator john mccain's office said his surgery last week revealed a brain cancer diagnosis and that he is reviewing his treatment options, which may include chemotherapy and radiation. but they said that he was in amazing health and that is

underlying health is good. but leader mitch mcconnell said yesterday afternoon before that diagnosis there will be a vote next week, but last night on the hill senator bob corker told reuters that although their thoughts are with the mccain family, he had to acknowledge that the math on this, becky, is going to be difficult going forward. >> yeah, kayla, math is going to be difficult going forward it just adds to all kinds of confusion around this and i guess makes it that much tougher to figure out what happens next week and in the weeks to come. >> it does becky, it's unclear exactly what the president wants and what the leader feels that he is willing to put on the floor regardless of the outcome at this point you've now heard the president in the space of just a couple days say that if they can't get a replacement done, they ought to just repeal but then telling "the new york times" and telling senators yesterday we can't just repeal if we don't have a replacement that follows immediately behind it and leader mcconnell said yesterday outside the west wing that they had difficulty getting

to the votes on the replacement, but that he reserves the right to hold a vote on either if he feels he can get there. >> kayla, thank you very much. kayla will be with us a little later today as well. joining us right now is former omb director under president obama and now co-head of health care hour guest host for the rest of the morning is author brooks american enterprise institute's president. gentlemen, welcome to both of you. >> thank you. >> that is a big job that's nice. that's awesome congratulations. >> it keeps me busy. >> it does >> let's talk about health care, where things stand peter, at this point how would you game this out? what do you think is the most likely scenario? >> it seems unlikely but not impossible that we'll have any legislation pass the senate and that leaves us in this state of significant uncertainty because the question becomes what does the administration then do with a system that they didn't want

but i think will become their responsibility we have open season coming up for next year. there are a lot of other things that have to happen, so i think that's the most likely scenario, which is the administration is sort of stuck with this thing that they didn't want. >> right and as a result of the uncertainty, more things have played out there were pieces that were breaking before, there are pieces that became more broken as insurers waited to see what washington does with this. you actually analyzed the numbers and said that there are 40 counties right now out of about 3,000 in the country that have zero insurance options on these exchanges and a thousand of them, a third of them, only have one option. so what does that tell you about the state of the exchanges right now? >> that they need some support now, i do want to emphasize only 4% of americans under the age of 65 get their insurance through exchanges. >> that's so weird so this is basically senior citizens exchanges >> we spend half our time talking about the exchanges and that's important, but there's a lot going on in health care outside of that. but on the exchanges, yes, there

are issues we will make them worse by continuing to kind of dangle this question of whether we're going to make the so-called cost-sharing rebate payments to insurers there are issues that on the counties where there's either zero or only one insurer that should be addressed, so there are definitely issues that are out there. all of the uncertainty, including about the cost-sharing rebates and whether we're going to enforce the mandate just make that worse. >> so medicaid -- >> medicaid is -- medicaid is the biggest single insurer in the united states. >> yeah. so it's -- in some states it's one out of four people, so that's where you see the real -- the people that obamacare put on the insurance rolls, the lion's share are on -- >> more came from medicaid and i think one of the lessons from what we've just lived through is medicaid has proven to be more politically durable and popular, frankly, even among governors than you would have

thought 20 years ago. >> but they get 98% reimbursement. why wouldn't it be, peter? they had to take it. but it does get pared back eventually, doesn't it what are they going to do then. >> actually with no change to the law, it gets pared back slightly. >> to what >> to 90%. the expansion populations, if we leave this law in place, i would expect what you're going to see is more waiver authority -- >> but do we feel bad with doctors that don't do as well with medicaid? >> it's still better to have a patient insured than not insured. >> to get some money. >> insurance doesn't mean access, though, either. >> insurance doesn't mean access but being uninsured is the worst of all possible outcomes. >> arthur. >> the medicaid issue is always one that was going to be intractable. as soon as medicaid expansion started and republican governors felt like they had to take it, it was something we knew was

going to be a ratchet. there are a lot of poor people and working poor people that were not insured in places like ohio where john kasich has literally 20% of people in ohio are on medicaid, that's just not going to go backwards. you have to find a better way to streamline the system without pretending that we're going back to the way it was 15 years ago you have to live with reality at this point. >> not to be cynical, but did they know that that's what they were doing, that it was going to be something that you could never reverse? >> if you were looking at it logically, if they were listening to us at aei, sure. >> you say that as if that's a bad thing. >> what is the compassion and empathetic arthur brooks say >> look, we need a system in which -- look, from the very beginning the compassionate empathetic arthur brooks -- i'm more compassionate than empathetic. >> that's interesting. >> it gets back to more fundamentals we can talk about how we're trying to change the welfare

system such that the permanently poor will be taken care of. >> locking people in that position is not compassionate. >> medicaid is not locking people, though. >> there may be a better way to do it. >> they keep looking for that. >> then let's just do single payer medicaid for everybody and see if that's compassionate when our health care system ends up in what some people would say is not as responsive, there's not as much access, you wait much longer >> ironically, joe, i think if we went to -- >> you are probably a single payer guy. >> no, no, i'm not hold on, if we went to the per capita caps that are in the house and senate legislation, i think the result would be exactly what you fear, which is rationing and price controls at the state level because instead of having ten cents on the dollar -- when a newinnovation came along that was expensive,

they would not clamp down. >> because they would be looking at short-term issues, not long-term issues. >> you don't want it to get to the point where a state can't afford anything except medicaid. >> this is why the big agenda on hold for six months is a shame what we need to be doing is moving toward better delivery system, better care, higher value. there's a whole agenda that is just completely absent from this debate. >> arthur, you think -- you do think that there are ways to work across the aisle, that this does not have to be a one-party solution when you look at health care is there a way that you see democrats and republicans potentially getting together because to this point that has been a complete nonstarter. >> the really interesting political thing is the realization that having a 52-vote majority is weaker than having a 48-vote minority. >> because every senator holds the entire -- >> when you're 48, you're going to vote as a bloc. that's what the republicans did

and the charges peter was making to the obama administration and i understand that. the republicans are experiencing that in reverse. when they took the straight repeal vote in 2015 and the republicans passed that straight through, it's because it wasn't a reality, it was an expression of their discontent with obamacare. now when they're having to deal with it and it would affect people's lives, they're not so sure that's what happens when the majority is a multi-party democracy and the minority is a solid voting bloc. the democrats in the senate are more powerful than the republicans in the senate right now and that's a real challenge for a very good leader like mitch mcconnell who is dealing with this fragmented party. >> and the reason that's happening is because of pol polarization and the system becoming bimodal which means you don't get any cooperation from the other side it's going to happen on tax, maybe on the debt limit. we've got lots of other things coming up where this basic governing problem is going to manifest itself. >> let's get back to what you

think would fix the system and find out if you think republicans could support that peter, boil it down to the most vanilla sort of issue that's not a right or a left sort of solution that you can see that might actually draw support from both sides. >> this is where there is bipartisan support, which is coming back to the point of we need to get more for our dollars in health care, moving away from fee for service payment where we pay for each unit of care, and towards paying for quality and value. that's an idea that -- >> i suggest this on twitter the other day, that and transparency so people could price shop i've got so many people who fought back and said, wait a second, how can you pay for outcome? why would anybody ever choose to take on the toughest cancers >> you absolutely need to adjust for the severity of the patient and that's part of the system and it's imperfect but we're getting better at it i'll give you another thing over the next few years where there may be bipartisan support.

roughly a third of medicare beneficiaries currently get their care through private insurance plans, medicare advantage. that's been growing. i think that's an area there could be bipartisan agreement on how to further strengthen, improve -- >> beef up medicare advantage. >> modify. the whole system was supposed to be the tail. even the way we pay these plans. >> is that the doughnut hole >> no, that's a little different. that's part d. >> didn't the obama administration try to completely undercut medicare advantage? >> the criticisms of the congressional budget office are largely misplaced but the one area there was a very big prediction error was when the obamacare cut back payments to medicare advantage, everyone thought that was going to basically kill the sector. instead we've seen this massive rise. >> but there was a concerted effort to try to kill it >> there was a concerted effort to reduce overpayments. >> do you think that these are areas -- >> yeah, what i actually think is the most likely scenario.

if the republicans can't come together, and so far there's been no indication they're going to be able to come together. they met for three hours last night and perhaps the president of the united states can exert some executive authority and try to corral republicans. assuming they can't, they're going to take a vote so everybody is on record and go home to vacation, face voters and face their families and whatever you do during vacation, come back and then through regular order they're going to part out the different parts of obamacare to try to get fixes with some bipartisan support so you're going to start seeing it become a bunch of little problems and then we turning to other big things like the next big super easy thing, which is tax reform. >> it just gets easier and easier. >> arthur, this is one of andrew's questions, but what's your sense, that's a good one, it always works. but what's your sense, i'm curious, what's your sense when shelly moore capito goes back to west virginia. do people say i can't -- people are calling her -- i've seen the word traitor thrown around or do

they say thank you for standing firm, for not hurting people and protecting my family what do you think she hears more of >> both. republicans are really caught between a rock and a hard place. on the one hand they have a bloc of voters that's highly ideological. they're supporting the president and real stalwarts of president trump. on the other hand, you have people who don't see it. president trump's numbers in a place like west virginia are higher than other parts of the country. so you'll see town hall meetings where these politicians who have effectively exercised a veto on a lot of the health care legislation going through, they're not going to be able to make a large group of people happy. but hey, that's leadership that's the way it works. that's what you have to face she has to burn some capital by saying what she thinks is actually right and fighting for it, which is something we've gotten away from in the way we do politics these days >> arthur is going to be with us for the rest of the show peter, thank you so much for coming. >> thanks for having me. >> it's great to see you.

>> you're empathetic and compassionate and have a great wife. >> he got both >> you don't want to be empathetic, you just want to be compassionate. >> that's right. which are you? >> empathetic. >> that's the difference between right and left empathetic versus compassionate. i feel your pain versus i'm going to do the right thing for you. >> exactly >> we've got to talk about that. >> i just don't like the way you define that. coming up, when we returning we'll talk about a company that wants to turn every vehicle into a smart car. they think there could be a big business in the data it collects about drivers. first, though, as we head to a break take a look at futures this morning we're up again dow looks like it would open up 14 points higher stay tuned, you're watching "squawk box" right here on cnbc. ckn mont ork stat think again. this is the new new york. we are building new airports all across the state. new roads and bridges.

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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. welcome back to "squawk box," everybody. we are watching shares of blackstone economic net income, which is the preferred metric for blackstone came in at 59 cents a share. that was three cents below estimates. revenue was very slightly below forecasts, however, the chairman and ceo notes that assets under management are at an all-time high and results are up by

double digits. the stock is down by 2.25%. transforming your older car into a smart car may be as easy as a plug and play device made by auto brain. the tech company thinks the real value behind their product is the data it collects behind the wheel, phil lebeau joins us to explain. >> this is auto brain. you put this into the port that has all the diagnostic readouts for your vehicle right underneath the steering wheel and that allows you along with an app, you or a third party can then monitor how your vehicle is performing it can alert you if, for instance, the vehicle is idling and there's no responsiveness within the car, things like that you can also monitor where the vehicle is in realtime traffic now, the whole idea here when this goes on sale, and it's now going on sale for 20 bucks at walmart and then a monthly subscription fee of $9.97 allows you to get the data from the vehicle. the whole idea here is that this data allows the company as well

as third parties who have this app connected with their car to then say, okay, perhaps our car needs x, y and z and it will guide you to a particular retailer >> knowing the behavior and understanding what customers want, we could drive them back to the retailer. if we know when a car hits 10,000 miles and needs that oil change, we could offer them a discounting on an oil change or if their tires need to be changed, we could offer them a discounting on that as well. >> the whole idea here is also to make these older cars, and there are more than 265 million out on the road, they're essentially dumb cars. they don't have a whole lot of capability to share information either with their owners, third parties or with others, to give them a little bit of brains and perhaps allow parents or others to monitor how somebody is driving. think of this similar to what

verizon offers with its hum service which allows you to monitor how a vehicle is performing, where it's being driven, how that driver is handling that vehicle. we'll show you the chart of car max and the reason we're showing this is because the used market is rife with potential opportunities. you have autobrain and other companies saying if we could tap into the diagnostics of these vehicles and share that information, either with owners or the third party or collect that data, there's a real gold mine there so far, guys, nobody has been able to do that and that's really what a lot of companies, including autobrain are chasing, that information and that data and that connectivity with drivers of these older vehicles. >> yeah, okay, phil. phil lebeau, thank you good to see you again today. like that interview yesterday we had with munoz our guest host this morning,

arthur brooks. where to start you've made some great points already. didn't make me feel real good about a lot of the points. >> there's so much to be optimistic about in washington these days it's just going so well. >> thank god the market -- >> sarcasm. >> a little bit of that. >> not everything in the financial markets is dependent on these guys doing the right thing or doing their job. >> although i have to say, you saw the thing about the smart car just now do you have teenagers yet, joe >> i do. >> i have three teenage kids the idea of having a brain in the car when the car is being driven by a teenager, it's a crazy idea, right? >> yeah. to have at least one brain in the car. >> exactly >> no. age is -- or youth is a wonderful thing but, you know -- >> not behind the wheel, though. >> why waste it on the young for an aei person, in fact you're in charge -- >> i've been president for almost ten years now, as a matter of fact time flies.

>> what is trump in terms of how you view him as someone that obviously i'm sure the trade policies aren't something that the aei would endorse, but overall you've seen him govern now or attempt to for six months what is the aei -- what are your thoughts >> well, aei is a place that's not the weather of politics but more to the climate of ideas you don't need a think tank that actually does politics we're not an advocacy organization so whether a democrat or republican gets elected, we'll try to have good ideas and feet them to leaders in business and politics and media and academia and all that. >> is he open to new ideas >> the propensity of every president is different to this and there are different avenues to get to different presidents in different ways. we did not have that much in the obama administration but still we were able to have a lot of impact on the hill we do more congressional testimony than any think tank in the world and that hasn't

changed and that's good. during the time of trump, some people like him, some people don't like his policies. it's way more important to remember that where most people's lives are impacted are at the state and local level this is an intensity state and local country. right now we have 33 republica governors, for example, many of whom are pretty visionary and working really hard with good policies and are willing to experiment so when people are depressed about what's going on in washington, whether they don't like the republicans or wish the republicans were more successful, remember that in your own state, it can really make a big difference what's going on that's the way the founders set it up. >> it's very strange to have the president of aei talk about washington with a republican white house, republican senate, republican house and say you can look to the state level to get things done. are you dancing around whether you can count on traditional republican or conservative things happening in this washington >> i think that it's actually a reality check on everybody there's a tendency to say that when people more or less agree with me that you can get a ton

done the system was not designed to be able to massively change the country overnight because of where all the power resides in washington, d.c. anybody like me or anybody with strong ideology has to recognize that's not where we should -- >> because you have a strong ideology and because you talk about sort of a moral compass with which everything seems to be attached, how do you think about the white house for real on the moral front. >> so it's a complicated business to be sure. >> as opposed to the clinton white house. >> there are many policies that i disagreed with, for example, on trade and a lot of the way they talked about immigration. but let me tell you something i really like. for the first time in a long time there was an emphasis on the second income quintile the near poor, the working poor and these are the people most likely to be addicted to drugs, et cetera, we've got to be talking about them and they are. >> we'll continue this conversation in just a moment. still ahead we are waiting on a monetary policy decision from the ecb. we'll talk about the high stakes

for the markets. stick around, we'll be right back

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♪ gives you a front look of what's happening in times square as if you're walking through it yourself welcome back to "squawk box" here on cnbc among the stories that are front and center this morning, dow component travelers reporting quarterly profit of $1.92 a share. that missed estimates of $2.11

revenue did beat the estimates, however. travelers had record premiums and higher investment income but was hit by higher weather-related costs. there was a lot of bad weather throughout the midwest not all of it qualifying for catastrophic weather but it did make them pay out on a lot of issues we'll get ready for the initial read on jobless claims in about an hour. economists of expecting a total of 244,000 jobs. just a few minutes from now we will be hearing from the european central bank. it's expected to leave rates unchanged but lay the groundwork for possible policy shifts later this year. >> central banks and policymakers will take note of any action by mario draghi joining us right now is rick rieder she overs he oversees $1.3 trillion in assets i don't know how you sleep at night. >> i avoid it. >> you avoid sleeping at all times.

and also covering the equities angle is chris hize from merrill lynch management and u.s. trust. we're going to hear from draghi. we keep watching the equity market go up but what do you think the bond market says about the equity market right now? >> by the way, i think they're completely interrelated. the fact is we have -- whether he plays out his plan, we're going to have low interest rates for a long time. the dynamic and why the equity market will drift higher is the discount rate in the world will be held down by the central banks, even while the ecb normalizes we hear from the bank of japan today. it's going to be a very long time before they normalize we'll be in a low interest rates for a long time. >> therefore, fundamentals don't

matter >> fundamentals certainly matter you need to have the fundamental base there, but at the end of the day if liquidity is there, if valuations are decent, not out of whack, and at the end of the day if you have profits as your base still rising, you get a long and very large huge bull marathon and that's what we're in. >> what's so surprising about this particular rally is that everything is rallying it's not -- it's not -- we talk about like the fang stocks that's one thing but when clorox and p & g are trading at 24 and 26 times multiples, that's a different world. >> there's a couple of reasons for why certain stocks or certain sectors of the actual market get overvalued. there's something called atfs that have a lot of these large cap names in them that get an overwhelmingly large flow of money coming into them and it's indiscriminate so those valuations go up not saying that that's right, wrong or indifferent but that's just happening

if you dig through the overall market itself, the good news about what's going on this last couple of weeks is the fact you're seeing new highs across the board in the russell 2, you're seeing it in nasdaq, the suspected, the dow, et cetera. you've got weak dollar, you've got easy financial conditions, a lot of liquidity and valuations are decent. >> can i throw one additional point. there's a stat that i think blows people away. if you think about where interest rates are today, if you take the top five companies in the s&p and take their cash from operations, it equals all the coupon flow, treasuries, bunds, jgbs globally. demographics are driving a demand for income and the equity market has the income today, so you see this unbelievable -- people think valuations are full by the way, i don't think on a free cash flow basis the equity market is too high, but you're not getting any cash flow in the fixed income market so it's got to flow into equities. >> how much are you watching what is going to happen at the

fed in the next, what are we at now, we only have about six months for janet yellen to -- who do you want to see in that role and how much ask that matter i'm curious. >> a couple of thing we talked about this last time we were on it's unclear at this point who that's going to be but i will say one thing whoever it is, the dynamic around the institution of the fed, it's different than when somebody comes in, a new president, new senator it tends to be a normal transition quite frankly part of why the fed is executing this reduction of the balance, you're getting ready for the new fed chair. i also think whoever is appointed, the dynamic of if you're going to execute fiscal policy, you need to keep rates low for a long time. so this fed is going to keep it consistent in terms of the path that they're on and you're not going to see a tangible change, significant change, certainly over the first few months. >> you know, rick is dead on central bankers want that window half open. they don't want it all the open

and they certainly don't want it closed they want it half open so they can slowly remove the great experiment around the world and possibly over a very long time not this year, not next year, but over years >> did you want to get in there and say something? >> just wondering whether rick has met his artificial intelligence replacement yet do the robots actually walk through the office yet >> we have a few no, i mean the dynamic, we are on an extraordinary path towards making sure technology is a full part of your investment process. larry talked about big data. we are going down the road of big data efficient portfolio construction, how you think about diversifying your portfolios, technology will be incredibly incorporate in that rega -- important in that regard. >> you're good but you're human. a computer has to be a lot smarter than you eventually. five years from now. >> there are a lot of humans a lot smarter than me as well.

listen, i think that there are -- when you talk about parts of the fixed income markets, it's an extraordinarily heterogenous market. when you can about gm, they have over 400 different securities. it's hard to figure out whether it's a securisecuretized produc. >> rick, chris, thank you. >> blackrock, gotta talk -- >> robots. >> robots. what was it yesterday? oh, the senator with the accent. >> never gets old. >> it does actually. coming up, the washington agenda from health care to tax reform we'll talk about the issues that are most important to your money. congresswoman cathy mcmorris rodgers helps us decide on gop

priorities she will join us next. then at the top of the hour, the democratic perspective house minority whip steny hoyer will join us at 8:00 eastern stay tuned, you're watching "squawk box" on cnbc hey you've gotta see this. c'mon.

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welcome back to "squawk box," we are right here on cnbc in times square. take a look at the futures right now, they are up again it just continues. the dow looks like it would open up about 12 points higher, nasdaq up 6 points and the s&p 500 looking to open up close to 2 points higher. cardinal health reportedly put its china business up for sale the potential deal could be worth up to $1.5 billion the stock right now unchanged. now to washington news democrats and republicans are both calling for an end to the political stalemate on capitol hill joining us now republican conference chair congresswoman cathy mcmorris rodgers i wish you had been here earlier, congresswoman, because arthur, i think, made some points that were accurate but a

little bit, i don't know, didn't make me feel real optimistic about the split in the republican party right now and how it can actually be more -- you can be more powerful at 48 as far as the democrats go in the senate than even if you're 52 because they'll stay together with 52, you've got all these other factions is there any reason for optimism anywhere in your view? >> yes republicans have an amazing moment we recognize that. we have the majorities in the house and the senate and the presidency it's a time for action and from the beginning of the year, we laid out a very ambitious agenda we wanted to offer relief to americans that are seeing a failed health care system. we want tax reform we think it's one of the best things that we can do to get our economy growing, improve people's lives, give them greater opportunity. the regulatory relief. we've been working hard. there's a lot of work to be done and we're committed to getting things done, getting results. >> you're in the house the house was finally able by hook or crook or whatever it

was, wranglingand it finally happened there in health care. >> yes. >> do you think that's it -- right now even an optimist would say that in the senate it's either dead or on life support or you don't view it that way? >> people recognize that we must take action. that's where i would encourage people -- people that are even watching right now across the country that live in some of these key senate states to reach out to their senators, implore them to take action. you know, people that are seeing them lose their choices, people that have come down to one plan available in their counties are facing the double-digit premium increases. i think they need to be reaching out and impressing upon senators the importance of taking action. we need a better health care future in this country for everyone. >> you're saying that people see that we need to do that. there's eight to ten senators that do not see at this point that we need to do that it seems like. >> the senate -- what i hear is that people recognize that we

need to take action. it's a matter of agreeing on the details and doing the big things are always -- is always tough. this is part of the legislative process. but i do believe that at the end of the day we will come up with a legislative fix. because the future that the democrats are offering, what they want is single payer where the federal government is the one that's actually making medical decisions and the republicans, we can agree around some foundational principles where we want freedom, opportunity, innovation in our health care system and it may take a little bit longer, but we must get this done >> hey, cathy, it's arthur brooks, i'm guest hosting my favorite show today. i wanted to ask you a question about how you see the conversation in washington, d.c. one of the things i really admire about you is the fact that you have a strong ideology, just like i do you see free markets in american leadership just the way i do, but you don't talk hatefully about people who disagree with you. you don't talk hatefully about

democrats or riepublicans that disagree with you either you're so important as a voice in leadership. what can we do to cure this contempt in washington we see today. >> i think we need to respect each other, take the time to listen i believe we get a better outcome when we take that time, gain an understanding from people from different perspectives, different parts of this country but at the end of the day we must act we are leaders we are sent here to get things done this is a tremendous opportunity to tackle some of the biggest issues that impact people's lives, give them more opportunity, more freedom to even dream bigger in this country and that's my goal. >> very briefly, everybody, the ecb has decided to leave rates unchanged, not a huge surprise but just making note of that news >> cathy, i really appreciate your comments about that a lot,

but i think that there's a real danger in the way this health care legislation is going and a way that a lot of the policy is going that people feel that they're kind of empowered to talk about their fellow citizens, their fellow americans in a way that's very contemptuous and i'm wondering if there's a way that you can have influence on not just your fellow republicans but democrats as well and maybe on the white house. is there some suggestion you could make about some big change we could make in this country today. >> i appreciate the efforts of the white house to reach out to republicans and democrats, the president, the vice president. i'm reaching out i've reached out to some democrat colleagues of mine even on monday night. we're bringing a group together, it's going to be women for dinner republicans and democrats. debbie dingell, democrat in michigan and i, are bringing that together to talk about how we come together, how we as leaders in congress tackle some of these most difficult issues i've been doing this as home since the beginning of the year, recognizing that people, you

know, are very concerned about the divisiveness and so i've hosted unity dinners all along this year. we have a community roundtable coming together to talk about spokane, our priorities. what kind of a community we want i think we have a responsibility each one of us to be doing our part, to be a part of a constructive solution and not just talking about what's wrong, but to be really bringing people together to say, okay, we're going to take care of our own house. >> the unity efforts, i'm sure it was well received unfortunately, it was all republicans trying to unify republicans. the idea that any democrats would show you've got -- let's work on republicans to start, get them unified. and then maybe, i don't know if you ever think about trying to get the trump derangement syndrome types they're never coming around. there's only one option and that's impeachment this guy is -- that's why i've never seen anything like this before

people hated george bush, w., but not to this extent and there's enablers in the media and everywhere else and it's just getting worse, so i don't know how that -- >> i hear what you are saying. on health care, we have a very different vision for this future the conversations that i have with democrats here on capitol hill, democrats back home, is that, you know, we need to keep talking about health care, we need to figure out how to move forward, but there's a whole host of other issues you think about our issues on tax reform, on the budget. you know, we have some big issues that are going to require 60 votes in the senate we will have to come together. and a lot of times we get a better outcome when we do so. >> i just wonder whether tax reform, whether you have the same problem in the senate with the conservatives on one side and the moderates on the other and we could end up bogged down in the same mess, whether it's paid for or whether it's dynamic. let's hope not. >> why wouldn't people want tax reform in this country

>> i can name a couple andrew why wouldn't they want -- anyway, congresswoman, thank you. i've got a list, a long list of why they wouldn't. anyw anyway, we appreciate it thank you. coming up, two decades ago jane wells spent months covering the o.j. trial fast forward to today and we find that she is in a small nevada town talking about the former nfl star once again jane. >> reporter: i haven't changed a bit, becky o.j. simpson could find out today whether he will be a free man in october if he is, he will walk out into america which is suddenly reinterested in his story. up next, the business of the simpson saga when we returning where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't.

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welcome back to "squawk box. don't be surprised if a lot of people at the office are talking about o.j. simpson at the water cooler today he has a parole hearing today where he's going to ask for an early release from prison, jane wells joins us now. >> reporter: yes, camp o.j. has moved to northern nevada o.j. simpson will learn whether he could be paroled as soon as october 1st. that would be the day before the 22nd anniversary of when a los

angeles jury acquitted him of murder and the suit he wore that day in court is one of the objects he was trying to take back by force in las vegas a decade ago, which sent him to this prison, something he spoke about in his first parole hearing four years ago. >> my crime was trying to retrieve for my family my own property, property that had been stolen from me and property that since i've been here, the state of california judiciary has ruled was my stuff and i have it back now. >> reporter: now that hearing was barely covered so why has the business of covering the saga gone into overdrive? because simpson is hot again after fx won an emmy for "the people versus o.j. simpson" followed by an oscar for espn's incredibly successful and lucrative 30 for 30 documentary, o.j., made in america. here there isn't a hotel room to be had and both the prison and

the community have tried to prepare and possibly profit. >> it gives us an opportunity to promote our town and make people realize there are small towns like this all across the country really there's a reason to get off the freeway. >> reporter: if simpson is freed, does he have any juice left well, pensions total about $300,000 a year. that's money the goldman and brown families cannot touch by law. his debts may now top $80 million for the civil judgment which has doubled with interest plus tax liens and attorney's fees the hearing is at 10:00 a.m. local. it's going to be streamed and aired live by several networks and outlets. the parole board expects to make a decision today, guys we could get that decisionas soon as 11:00 a.m. local back to you. >> if he is paroled, can he leave the state? where would he normally be living at this point i know he had that home in florida because of the bankruptcy laws. >> right and also because a home in

florida cannot be attached to a civil judgment that's another reason he moved there. he lost that home in foreclosure. friends reportedly say he'd like to move back to florida, but that would have to be approved by the parole board here. >> and in terms of work that he can do, there was -- remember, there was a moment in which he was going to write a book that then got pulled. >> reporter: yes, the goldmans went to court to get the rights to that. >> would any profits from anything like that, he would not be able to keep at this point? >> reporter: if he was -- unless he was able to hide them you know what's very interesting, andrew, is he says he has gotten that memorabilia back you heard him in that parole hearing saying he has that suit back that is exactly the sort of thing that the goldman and brown families could go after to try to attach and then sell. not because they wanted to make money off this but kim goldman told me they just don't want him to have anything until her dying breath, she will try to grab every penny he tries

to make once he leaves prison. >> jane, it's a story that always seems to continue we appreciate it this morning. thanks so much. coming up later this morning, we've got today's top stories, plus house minority whip steny hoyer will join us. we're going to talk about health care, tax reform, get his take on the washington stories most important to wall street right now. first as we head to break, check out the euro following the ecb decision stay tuned, you're watching "squawk box" right here on cnbc.

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by the gig or unlimited. call, or go to xfinitymobile.com. xfinity mobile. it's a new kind of network designed to save you money. breaking news. ecb president mario draghi holds a news conference after the central bank's latest rate decision we bring you the highlights and the market reaction. the numbers are in the cbo estimates the impact of repealing obamacare, lawmakers from both sides of the aisle weigh in on the next step. that is straight ahead. plus is marissa mayer dusting off her resume the former yahoo! ceo wants a new corporate gig. details about where she's looking to land as the final hour of "squawk box" begins right now. ♪ >> announcer: live from the most powerful city in the world, new york this is "squawk box.

good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kern an along with becky quick and andrew ross sorkin our guest host this morning, arthur brooks. we'll have more from him in a couple of minutes. the futures most of the morning have been up again across the board, but just a little dow jones up 14 now, 14.25 points s&p indicated up 3, the nasdaq indicated up 12. >> news out just in the last couple of minutes, the ecb leaving rates unchanged. it expects to hold rates steady for an extended period if the outlook becomes less favorable, they stand ready to increase quantitative easing we saw a drop in the german ten-year bund after that announcement and the euro dipping to a two-day low against the dollar mario draghi will hold a news conference in 30 minutes we will monitor that and bring you the highlights couple of earnings news to bring you as well. dow component travelers reported this morning

the insurance company missed on the bottom line. revenue beat forecasts the company did see record premiums and higher investment income also blackstone came in three cents below estimates with economic -- with new income of 59 cents per share the asset management's revenue also shy of forecasts. assets under management are at an all-time high. senator john mccain has been diagnosed with brain cancer. doctors at the mayo clinic removed a blood clot from above mccain's left eye on friday. the mayo clinic releasing a statement saying subsequent tissue pathology revealed that a primary brain tumor known as a glioblastoma was associated with that blood clot. the senator is reviewing further treatment options with the medical team which include a combination of chemotherapy and radiation. president trump tweeting melania and i send our thoughts to

senator mccain, cindy and their entire family. get well soon. it's been something people have been talking about, just what a warrior he is, what a fighter he is and how many good wishes are being sent to him from around the country. president trump also speaking out about attorney general jeff sessions in a wide-ranging interview with "the new york times." the president said he would never have appointed sessions as attorney general had he known that sessions would recuse himself from the russia investigation. >> gets the job. right after he gets the job, he recuses himself. >> was that a mistake? >> well, sessions should have never recused himself. and if he would -- if he was going to recuse himself, he should have told me before he took the job and i would have picked somebody else. >> he gave you no heads up at all? >> zero. so jeff sessions takes the job, gets into the job, recuses

himse himself. i then have -- which, frankly, i think is very unfair to the president. how do you take a job and then recuse yourself? if he would have recused himself before the job, i would have said thanks, jeff, but i can't -- i'm not going to take you. it's extremely unfair, and that's a mild word, to the president. so he recuses himself. i then end up with a second man, who's a deputy >> president trump also described a newly disclosed informal conversation he had with putin at the g20 summit this month he said the two leaders spoke for about 15 minutes about pleasantries and adoption. steve, if we were going to do an interview, we'd probably bring a camera "the new york times," they have this crappy audio. is it that bad over there? how much does a camera cost. would you have one of those -- do you have a reel tape recorder, one of those things that still has --

>> hold on >> let me say this i think that they get -- >> where's the camera. >> i think that maggie haberman and that team get more out of him than most people on tv ever do i would make him the argument one of the reasons -- >> he speaks mow openly. >> was it surreptitious? >> everybody is more straight up when there's no camera. >> eisenberg theory. >> you could have -- "the new york times" could have afforded a camera, so it's not as bad as people say okay >> look at how well the stock is doing? touche. >> almost a billion dollar company. >> closer to a $2 billion company. >> microcap. >> this guy is unbelievable. unbelievable >> you've got comcast now, don't you? >> yeah. >> you're happy. >> stock, i'm talking about.

or we can convert that to "the new york times" stock if you want to keep that. >> i'm happy to hold on to both. >> see, we have cameras. >> we do have cameras. >> which is why we're so stilted. >> congressional budget office out with new numbers on the impact of the gop's plan to repeal obamacare while the party works out a replacement. the nonpartisan group estimates that it would reduce the deficit by $473 billion over the next nine years not $474 billion or $472 billion. the cbo has been very accurate the number of uninsured -- >> do you want them to round up to $500 billion? >> they have no idea this is like liesman's work. >> he's been pretty close. >> he's been close because he used to be far enough. anyway, the uninsured would increase by 32 million during that same time frame and premiums would double by 2026. responding to those new projections, the white house

told cnbc that it continues to believe that the methodology of the cbo is flawed. >> let's bring in congressman steny hoyer of maryland. he is the house minority whip and a member of the democratic steering committee congressman, thank you for being here today. >> good to be with you. >> all right so let's say where you think we stand on health care, where you think we could actually get if the two sides were to work together let me throw that out saying be as realistic as possible what's a plan that you think both sides could actually try and work together on >> well, i think it's difficult to know that because i'm not sure exactly what the republicans are willing to do. but senator mcconnell made it clear that if in fact they fail to pass a replacement bill, that he thought the alternative was to work together with democrats. i think that's the right way to go i don't think it was a bad alternative. i think it's the preferable alternative. i think we need to deal with the small markets, we need to deal with costs we need to make sure that counties everywhere throughout

america have access to an insurance policy so i think all of those things ought to be on the table i think we ought to make sure that we can stabilize the market reinsurance provisions that we undercut because the republicans wouldn't appropriate the money that was set forth in the bill to do and undermined -- increased prices an undermined the market stability i think we could accomplish all of those things if we work together that's what we ought to do we'll see whether or not the republicans will either next week or sometime in the future repeal i think the cbo is right on target with what the ramifications of that would be when i talk to my small hospitals or i talk to other providers or i talk to docs, frankly you talk to insurance companies, if they repeal, the market will be substantially disrupted and millions and millions of people, far more than repeal and replace, would be adversely affected. >> congressman, we were speaking with peter orszag an hour ago

and he pointed out a statistical analysis of these things he pointed out there are 40 out of 3,000 counties that have zero providers for the exchanges. there are 1,000 out of the 3,000 that have only one and obviously that needs to be addressed but he also said when you really start talking about the exchanges, only 4% of the exchanges are for people who are under the age of 65. so mostly it's a senior citizen plan that you have there really he said the huge issue is the medicaid expansion. >> right. >> that is the issue that needs to be tackled in one form or another, that needs to be discussed, that needs to come around to. is there any sort of middle ground that you can find when it comes to just the medicaid expansion, because that has the potential to really be a massive bill but at the same time if you don't have that, you are not going to have nearly as many americans covered? >> i think that's absolutely correct. of course the cbo said if you eliminate the medicaid expansion, 15 million people lose their insurance in 2018 alone and more going forward so clearly you've got to deal

with that and that's, for instance, what republican governor sandoval in nevada, kasich in ohio, other republican governors have expressed such deep concern about, that they have got to find a way to deal with those people and make sure they have access to health care insurance. what we ought to do responsibly is sit down at the table you and i both know that there were no hearings, no witnesses, no amendments to anyof these bills and there has not even been a chance for republicans in a committee setting to have hearings or offer amendments so if we start to do that, i think good ideas will percolate up we'll see whether or not there is common ground if there is common ground, and hopefully there would be, then we can move forward. that's what we ought to do that's the legislative process i think that's what americans expect us to do. >> congressman hoyer, this is arthur brooks from aei. >> hi, how are you, sir? >> good. how are you? >> good, thanks. >> you and i are both residents of the great state of maryland we have a big problem in

maryland so i want to take you in a slightly different health care direction you know we have a very good governor in larry hogan, a republican who's able to work across party lines very successfully one of the things that's most keeping him up at night is the fact that maryland has the highest percentage of people dying of opiate overdoses of any state in the country per capita. >> right. >> but this is a nationwide problem. 60,000 americans will die of drug overdoses this year it's a real epidemic i would love to hear what's on your mind in the congress and just you personally, what you think some of the things we could do to try to get our minds around this problem and start passing lentiligislation that w save some lives. >> we put some funds toward it in the last congress governor hogan and all maryland policy makers and all marylanders are concerned about the opioid crisis, which is very, very substantial, as you point out in our state that's one of the reasons governor hogan, as you know, has

opposed the repeal of the affordable care act in the forms that the republicans have so far put on the table because he believes it would substantially undermine maryland's ability to respond to the crisis. but we need legislation going forward, we need to have a bipartisan agreement on how we work with the medical community on the overprescription of opioids, access to opioids, and education for the public but clearly it is an epidemic in every part of the country, so it's not just maryland you talk to -- anybody i talk to of my colleagues, whatever state they come from, they are very worried about the opioid epidemic that is occurring and the deaths that are occurring at such high levels so again, this is an issue that cries out for bipartisan response >> congressman hoyer, majority leader mccarthy just said last night that the house is going to go ahead with the budget but look at just four areas of the

budget because they couldn'tge enough support within the gop for all 12 areas. >> i think he's talking about the appropriations as opposed to the budget. >> you're right. what do you think about this progression, doing things piecemeal like this? >> i think it's unfortunate. i think that the budget that is being proposed is unfortunate, but the appropriations process, they have had months to markup bills. they have spent the last three days working well past midnight to pass their bills in a real hurry. they're probably going to finish i think all 12 of the appropriation bills but they're only going to push forward with four the reason they're only going to push forward with four, they don't have the votes to do the omnibus that they were talking about with all 12 appropriation bills. as a matter of fact, nor should they move forward. we ought to consider these bills individually so members have the opportunity to review them, digest them and make rational decisions on them.

i frankly think that the numbers that are in these bills are unrealistic, but what is really unrealistic is there is no budget yet, which says what our discretionary number is going to be, how much we can spend discretionary dollars, so that when you vote for four bills and they are substantially over those dollars, it means the remaining eight bills will be cut very, very substantially in fact it's a plan for disinvestment in the domestic side of our budget we think that's bad policy and bad for our national security. you need to deal both with our defense capabilities, our homeland protection capabilities but also deal with education, transportation, infrastructure investment and other parts of our society. >> leader hoyer, if you keep asking kind of the latest gotcha question they ask any democrat they can who the leader of the party is and no one ever says anyone. >> i've been asking that for the past three days. >> it's a gotcha question.

>> even andrew asks it so i called you leader hoyer why don't -- just raise your hand and say i am the leader, i'm in charge, like hague. you're the leader. >> you just keep calling me leader and i'll keep responding, thank you very much. >> fine. so now we have an answer steny hoyer. >> there you go. >> all right thank you. thank you, leader. >> thank you, leader still ahead, we just wrapped up our conversation with house minority whip steny hoyer. up next, we will hear from the other side of the aisle. congressman dave brat will join us right after the break back in a moment 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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welcome back to "squawk box. stocks to watch this morning, abbott labs is trading higher in premarket trading. the drug maker beat estimates by a penny, earned profits of 62 cents a share and raised its forecast on that success and the integration of st. jude medical, which as i recall it bought, but maybe you don't, bought back in january.

and a big premarket jump for sears who struck an agreement with amazon to sell its kenmore line of products as well as integrating alexa into kenmore smart appliances. pepisco has filled the role of president which ramon laguarta who runs the european and african businesses he did tell dow jones despite filling that number two role she intends to run the firm for the foreseeable future and there is for heir apparent. hmm. they need to know -- yesterday was like the last day of that diet and they never sent any chili cheese fritos. >> how's the scarsdale diet

going, okay? how's the grapefruit >> diuretics are something but as far as i can tell they never cause any diarrhea. >> they cut your appetite. >> grapefruit cuts your appetite >> it tastes so terrible, your entire mouth puckers up and you can't eat anything for the rest of the day. >> you put sweet and low on it. >> or just brown sugar and honey. >> never take antibiotics and drink grapefruit juice. >> why, what happens >> it -- >> cancels -- >> it does a very bad thing. >> good to know. >> you're kidding. >> so if you have z-pack, if you think grapefruit juice would be good to drink like orange juice, not. >> hopefully congressman brat is listening because that's news everybody could use. >> i learned it the hard way. >> we just had congressman steny hoyer a few minutes ago. let's go to the other side of the aisle, dave brat, member of

the budget committee and house freedom caucus you made a mental note, congressman? >> yeah, you had me laughing early, i needed that that was funny. >> you know what, i bet you do need a laugh once in a while. >> i do need one. >> whenever we have either side on, it's just nuts down there. so i hate to keep -- you're in the house. i hate to keep asking you about the senate, but that's what we're talking about lately i guess my first question just to get right to it, do you think the factions that we saw in this obamacare debacle, are there going to be factions like that in tax reform that pit the moderates against the conservatives and get it all bogged down? is that what we're looking at? >> i don't think so on the tax reform there's just one major piece, it's that border adjustable piece. the white house has signalled they're no on it, the senate has signalled no on it and half the house is against it. that's the major piece

so i want to settle that right now. that's a trillion dollars. if you don't sort that out, you're not going to get tax rates down as far as we need to get them, right? the white house yesterday put out a note the corporate rate might not be going down to 15 after all, it might be going up to the 20, 25% range in my view that's not optimal. so that's the major piece in dispute. then there's a few other trillion dollar problems there's a trillion dollars locked up in the senate health care piece and so we've got to resolve that one i think it's going to be more unifying most everybody wants to get taxes low and get the business incentives going and get everybody jobs coming out of high school and college and wage rates up again the whole country is a little cranky right now because wages have been flat for 40 years. steny hoyer had the filet knife out on the last segment a little bit. i like him, but they don't have any policy alternatives to increase productivity. so we've got some good policies to incentivize business and get

this economy revved up and the market is already up on just the expectations of that announcement so hopefully we get that momentum going right now. >> do you think that the president got anywhere yesterday? i guess if he got anywhere, it would have to be -- i don't know if he's trying to get anywhere with the straight repeal we heard -- you know, we heard from -- anecdotally that there's not even 40 there so i guess he's back to repeal and replace, which is what he wanted to do in the first place. do you think that -- what does that have as far as chances go right now, 10% of being back on track? >> i think a little higher than that when the president puts on the full sales mode, he's pretty good, so he came over to the house and met with us individually and said, hey, what do we have to do to get this done i heard mike lee on some of the shows this morning he's got some practical stuff. there's just a philosophical divide some of these republicans in the republican platform, it's very

clear we're for repeal when they're running for office, all these senators put it in their clip so they get elected, they want repeal an then when the vote comes, they're hiding under their desk. so that is -- it's not really about factions, it's just pretty simple you've got to do what you told the american people you're going to do. >> but is the public changed -- you saw some of the -- obamacare has never been so popular. >> yeah. >> now that it might get taken away is it now that a lot of the constituents that voted for these people because they were going to repeal, have those constituents now changed their mind and now have they said we want you -- do they want obamacare fixed now? >> not really. you've got a smart guy, art brooks is on the show, the grand inquisitor what do people wanting, freedom or security. you've got china and india going from a thousand bucks a year to 10,000 bucks a year in the last 20 years because they chose free markets, right so that's the most massive human welfare gain in all of human

history by far and now you think they're going to turn around and say, hey, government, please run things for us again no they have finally been liberated. so the u.s., we know better than to put the federal government in charge of our lives. that's what you get. all of human history is that tragedy. we finally got freedom and now we're saying, oh, i might want a little more security please run my life for me. well, you go back down that road, it's all reversible and that's not a good story in the history of nations. >> hey, dave, i've got a quick question for you this is arthur brooks. thanks for the shoutout. i'm going to ask you an economics question because you've got a ph.d. in economics. we both suffered through that in a similar way and we've got that in common. when we talk about economic growth, and you're a real hawk on economic growth and i appreciate that a lot. it's terrific. the big problem that we have in this country is not slow growth per se, it's uneven growth the top 20% has appropriated 100% of the growth and the bottom 80% has seen north pone t

what's the best idea that you can come up with for that second income quintile, the working poor and people really getting hammered by not having insurance and have basically seen no income growth in 25 years. so what can we do about that, starting right now >> well, i'll confuse everybody listening, but you'll know this. deidre mccloskey are values are what matter. you're working on that issue we don't teach ethics and morality and being pro business and pro work in the schools. the kids graduate, they don't know what a profit or a revenue or a price is. and they don't know any system of ethics. and so i mean my answer is at that very deep cultural level, we've got to turn around that around give the kids some hope and tell them business is a good worthwhile endeavor for their lives. that is the solution but fortunately, that's a 10 or 20-year lag probably so in the meantime, hopefully we

do these tax cuts and just get some short run, 4% growth again and get us out of the ditch. just the regulatory burden has been lifted somewhat a lot of businesses back home are saying the government is not coming after me at least so they're feeling much better. >> congress n mman, i just wantt go back to the health care for one second those congressmen that ran on repealing and replacing obamacare, that then ultimately have not supported it, do you think they will be held accountable in the next election >> yeah. no, i mean -- that's for sure. but it's going to be too late if we don't get this straight an our leadership, we had seven years to line this up. so we got fancy white papers but nobody asked anybody how they're going to vote. so that's the problem. you've got to line up those ducks ahead of time. that's what i want to do on taxes now as well. we've got to make sure we ask where are you at on this border adjustable piece, what's going to happen on health care

we're $2 trillion short. that's 2,000 billion and we're debating 20 billion dollar plus-ups it's not the relevant range. so we've got to get those big trillion dollar pieces in order and then move. we get tax relief through and that's the prize, right? everybody is happy if we do that one. >> thank you for your time today, we appreciate it. >> you bet thank you, guys. >> we'll talk more about grapefruit jui, drceanew is right. jobless claims are about to hit the table. we'll bring you those number chances are, the last time you got a home loan,

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we are just seconds away from weekly jobless claims rick santelli is standing by at the cme in chicago rick >> well, numbers will be out shortly. mario draghi probably not excited about making the market ever get a little unruly, which means there's an issue their rates went down, our rates went down, jobless claims went down 233,000, the most recent read, and that's from a slightly revised 248,000. so we're down 15, 1-5-k. 977 milli 9.77 million on continuing claims philly fed index will be coming out today at some point in time. we also want to draw everybody's attention to the euro currency i'll tell you what, 114.91

sounds like a big break to me. 19.5 on the july read on philly. it's light based on the 23 we were expecting, sequentially lower than the unrevised 27.6. you think durable goods is volatile, this number really is volatile not a great read, we've been lower. the dollar index is up a third of a cent because the euro is taking a few steps backward, but all in all the euro currency is probably the epicenter of all of your trading you should keep a close eye on it it's kind of like the oil of the financial markets. andrew, back to you. >> thank you, rick, appreciate it very much. media mogul jeffrey katzenberg launching his new venture called new tv. joining us is the co-editor in chief of "variety" magazine and he wrote the story about it. good morning. >> good morning. >> so tell us about this and what jeffrey is up to.

>> well, let's start with what short form entertainment is on mobile screens we all watch the proverbial cats on skateboards, last night's baseball highlights. what jeffrey katzenberg is doing is let's take the production value, stars, writers, that do 30-minute, 60-minute tv shows and let's make two-minute, five-minute, ten-minute tv shows that are more conducive to that on-the-go, snackable way that we all conduct ourselves with mobile video. >> and so when you think about that, i mean you can handicap it right here, what do you think the prospect is for success? >> i think jeffrey faces some tough headwinds here if you think about the fact that the creative community has never done this kind of content before, that he's going to be calling on madison avenue to not deliver the usual 30-second spots but customized integrations and the fact that the audience has never seen this kind of content before, i think those are odds

but let's also not forget this is jeffrey katzenberg. this guy has a track record in this business that is second to none and he's always been about mainstreaming innovation. >> you read through the article. some remarkable quotes from bob eiger, les moonves, a lot of people looking at perhaps doing production deals with him. what has to happen for this to work >> i think they have got to get the right deal and i think from what i've heard from jeffrey directly, he's ready to not only pay the per-minute rate that would be on par with what the best people would make in television and film, but here's something extra. he is going to give these people ownership of their content and in this very fast-moving ott world, that is something that leading producers and creators are looking for. >> so this is to a large degree a big bet on mobile. could you see people watching this in any context on the big

screen or rather, i should say, on tv? >> yeah, that is the big question i'm sure katzenberg would love nothing more than for these videos to have a second life in other media, other regions but i think first and foremost it's about delivering on a kind of consumption that just isn't there. >> he's trying to raise $2 billion? >> yeah. he's looking to get that much money because he's trying to get the best creators, writers and talent he's looking for a distribution partner to deliver that money. so whether that's a facebook or one of the telcos. yes, a whole lot of money. >> he's compared this to james patterson, the idea in terms of how james patterson writes a novel these days, which is to say that the chapters are very short. that people want to sort of watch tv in this sort of snackable format do you think from a story-telling perspective that can work >> well, look, it's not as if

this has not been tried before certainly at different budget levels i think at the end of the day if he can find the creators who are going to be able to crack the code on a new form of entertainment, you know, the quality will speak for itself. the audience will come if they are delivered something that is good. >> andrew, we thank you for waking up early. you have a great name. >> you too. >> and a great magazine. thanks, appreciate it. let's get back to our guest host today, aei's president, arthur brooks. arthur, we've talked a lot about a lot of different issues. you're an optimistic person. what is it that draws that optimism >> i'm hopeful the united states has gone through really tough times and bitter political polarization and getting bogged down when it looks like there's no hope in policy in the united states. never bet against the country. the thing that i'm most worried about right now is the fact that we're talking about sort of big issues, not focusing on why is

it that donald trump was elected president of the united states and the answer is that there are huge parts of the -- >> the russians. >> huge parts of the country that are suffering real despair. there's a really wonderful study that came out of two economic professor professs at princeton showed everybody is living longer with better health. except one group has been in decline. and that's white men, 45 to 54 without a college education. well, guess what, that was the heart and soul of the voter base that elected donald trump president of the united states the reason they're dying younger is 50% increase in cirrhosis of the liver, 80% increase in suicide and 325% increase in deaths from drug overdoses these are guys that look like me and joe and they're dying around this country it's really an economy of despair out there. until policy makers think what are we going to do to replace that with dignity, vocational and technical education and jobs

in the second income quintile and drug rehabilitation that takes this on its face, family life, criminal justice reform, we're not going to solve the problem. >> you've been talking about this for as long as i've known you. are we making any progress are we doing anything right? these are not fixes that can be put in place overnight. >> right now we're spinning our wheels we talk simply about trying to get some economic growth number at the macro level under the current structure of the economy, all of that growth will go to the four of us and that's not right i mean we've had -- look, all the way through the obama years, a lot of our viewers think obama was great, others think not so much i can tell you through the obama years, 80% of the income distribution saw no income growth it was asymmetric the entire time and that's what led to this desperation. >> he cared a lot about those people. >> let me go to the tax debate if you look at the way the tax cuts may or may not happen, but way they may be proposed, we all

here would be the grand beneficiaries of that for the most part. >> you have to pay taxes to get a tax cut, andrew. >> i'm not being dismissive of that. >> but those taxes are going to pay for things to help people you were talking with. >> we need to create incentives so there will be economic growth for people that are not on the coast and not the high income earners. there's a lot of good regulatory going on, dave brat mentioned this this is under the radar because a lot of this can happen by presidential decree and it's actually going on and that's really good. what we need the most right now is corporate tax reform in this country that will create more incentives for advanced and flexible manufacturing. >> i want to know -- >> the world can't agree on that. >> i just want to understand where you stand on individual tax reform. >> individual, i think that it's a really bad idea to show -- >> that's where the money is, by

the way. >> let's be honest, the corporate tax issue is marginal on a relative basis. >> so the money is in the top 10%. >> individual tax reform, we need deduction reform in this country and we're probably going to get it. i think that we have to close loopholes, lower the rates, we have to broaden the base and move from -- >> when you say broaden the base, does that then include some of the people who are not paying taxes right now who you also argue you want to protect >> yeah, i do. there's a reason i don't think that people should have a punitive tax rate that are poor but i do believe everybody shuffle they have some skin in the game 50% of people have no tax liability other than payroll tax. i think we could cut payroll taxes but have -- >> cutting payroll taxes, that's interesting. would you expand the earned income credit? >> the dumbest thing that politicians are talking about is increasing the minimum wage. that will price poor people out of the market, it will be great for my teenage kids and horrible for the people that for three

generations in their families have not seen work if anything, lower the minimum wage, but increase the earn income tax credit, spend even more money than that to actually give people -- to make work pay. >> by the way, both sides say that's something where you can find common ground. >> but you would lower the individual tax rate and allo pass-throughs for corporations >> payroll taxes. >> what about pass through. >> pass through to what? >> you own a small business or, by the way, you own a private equity firm. should they pay 15%? should they pay the same income rate that you do. >> my view is that income is income income is income we have to treat -- we have to treat income alike or we're actually going to get into disparities and distortions in the american economy that have been creating problems all this time. up next, golf's original major, the open, teed off this morning. we'll tell you about the leaderboard with golf channel analyst brandel chamblee i know some of you are checking

so you know jordan is tied for the lead, right afr e eatethbrk. it's all yours. wow! record time. ♪ at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. ♪ get ready, because we're helping leading companies lead with digital. it's so... quiet. is it, too quiet? it's awful. yeah. feel at home, pretty much wherever you are. t-mobile is america's best unlimited network. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits.

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811 is available to any business our or homeownerfe. to make sure that you identify where your utilities are if you are gonna do any kind of excavation no matter how small or large before you dig, call 811. keep yourself safe. golf's original major, the open, teeing off earlier this morning at royal birkdale in northwest england.

joining us now from the course, golf channel analyst brandel chamblee i'd like to tell you that i've just been reading some summaries of what's going on and i don't have any of it live on my screen here because i'm watching the markets, but i can't say that. you've seen jordan, the stroke that may have been not quite what it was a couple years ago, it looks like it's back today, does it not, or adoes it? >> i think the business world will forgive you for being interested because jordan spieth does that to all of us jordan spieth has sort of had that walk-off hole out at travelers. maybe that was the spark because he hasn't had a top ten in a major championship since the masters last year, but he's in brilliant form right here. a lot of people picked him to win this event because it didn't put a lot of emphasis on the driver off the tee he is by far the best iron player on the pga tour and he is looking very much like that right now. >> i was just saying, let me

just ask you this. now, he hasn't played since, but if brooks koepka has the same game he had at erin hills, can anyone keep up with him? >> no. no, they cannot. brooks koepka is, again, one of those monumental stories maybe that's the biggest story here in the history of the u.s. open and the open championship, there has only been five men to win the u.s. open and the open in the same year. of course those are the mt. everest basically of golf. tiger woods did it in 2000, tom watson did it in 1982, lee trevino did it in 1972 with back-to-back wins, ben hogan in that great season in '53 and bobby jones did it twice so you're looking at a guy, brooks koepka, who was flying under the radar, what, a month and a half ago and right now the whole world is abuzz with, my goodness, what can this guy do. >> brandel, i played that course, erin hills, and watching brooks koepka play that course, it's like i didn't recognize

anything that i went through with what went on there with him. it looked like a par 3 course to him. and it wasn't. >> i couldn't agree more with you. you know, statistically, and they have only been keeping statistics since 1980 in the u.s. open, what he did there had never been done, not by jack nicklaus, not by tiger woods it was that impressive and i sat there on the set and thought, my goodness, golf is not supposed to be this easy he was hitting 370-yard drives right on the button. of course just had pitch shots left to those greens he made what is meant to be the most difficult test in golf look like just a ho-hum pga tour event. >> what else is on your mind what's the weather supposed to be like? i see jordan has a big under armour vest on, so it's 60 degrees? >> and he'll need it if you were out here this morning, you would have seen the beanies and the bonnets and the woollies and the wellies and just about everything else but mother nature has been a little bit more agreeable here this afternoon but the weather forecast tomorrow is exactly what you'd expect at an open championship

it's going to be wet and windy and so forth but the players going off this afternoon, and again some exceptional players going off in the afternoon here jon rahm, rickie fowler just teed off, sergio garcia, phil mickelson, dustin johnson, they'll all be out on the golf course today golf channel, nbc from the first tee shot today to the final putt on sunday will have it covered oh, yeah, a little bonus extra coverage because we will show the claret jug being given out to the champion golfer of the year. >> excellent, brandel, thanks again. thanks for coming on and updating us. it's an nbc -- see, i didn't realize that. >> back to the markets. >> i didn't realize this was on nbc so this actually helped. no, i did know that. brandel, thank you >> there you go. we're here for you. >> i might not miss a swing all weekend, but that doesn't make me very popular with the family. anyway, thanks, see you. ecb president mario draghi has been speaking right now and steve liesman has a few of the highlights steve. >> good morning, andrew.

ecb president mario draghi not giving an inch on his accommodative or highly accommodative policy saying a highly accommodative policy is necessary, remains necessary, sees no signs of inflation picking up and expects headline inflation to remain subdued in the coming months. he just said this in answer to a question first of all, they did not discuss the idea of when they would reduce their stimulus. he said we discussed no precise date for when to discuss the change and, quote, we aren't there yet. so while the u.s. federal reserve seems to be moving towards a tightening policy, mario draghi not giving an inch. there's an expectation out there that perhaps in september they'll announce what they'll do after december, 2017, when their qe is supposed to run out. right now he is saying it is full steam ahead on qe and maintaining this bias towards essentially doing more if the situation turns badly for them

not saying, hey, we'd do less if it goes good so it's a symmetrical bias they're calling it. when we come back, folks, appear 'le is teaming up with a high-end designer for some new beats headphones. plus jim cramer will join us chge from the new york stock exan "squawk box" will be right back. ♪

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welcome back looking for or at least interested in a new gig. the former yahoo! ceo telling business insider she wants another ceo role as far as the rumors that she's in the running to fill the vacant chief executive spot at uber she would not comment on whether or not she wanted to tackle the challenge she did say the ride sharing company had not reached out to her yet. >> what was the headline marissa mayer likes to strangle cats how did they get it going? >> well, the quick bait in this case would be she wants a job. >> i just wonder how they distorted and completely turned around whatever was in the body of it. >> they do a good job. >> all right apple. >> he's done a good job. >> god bless the man. >> apple, an american come back story right there.

>> or a sociopath. >> i love henry. >> apple is gearing it's newest lines of beats. >> takes one to know one. >> i took the test and it says i'm not optimistic and you're optimistic. >> i'm optimistic about life in america and the american dream. >> i want to be optimistic about people. >> i can take it or leave it. >> at least he's honest. >> the tech giant, naked emperors i will call out that they have no clothes. >> they keep trying to roll this video. >> the special edition head phone price starting at $250 goes as high as 600 depending on the style and the color. >> okay we're going to the new york stock exchange. who is the naked temperature

error today. this is for real at 50 they start selling it again. they have to have cash flow to be able to do the drilling if you go back there was almost nobody that said that this could happen and this is a sign once again that whether it be retail because of amazon, whether it be oil because of the technicians and the commodity guys and the analysts you can't write off any sector in this market. the sectors just keep coming back. >> would you hire marissa mayer

to run yahoo! or uber. >> i wouldn't hire her to run anything i think she should go spend much more time with her family. extended period. honestly. >> never holding back. >> where's your optimism and empathy. >> everyone should spend more time with their family maybe she should garden. i garden it's very ghandi-like. is there something wrong with that >> jim let's host the show from your garden. >> well, i would love that you should see the zuccinis they're going nuts killing the piece. >> we'll see you later on the closing bell you don't want to miss this. mole has an interview with t-bi ceo at 4:00 p.m.

eastern time we'll be back in a moment. (baby crying) (slow jazz music) ♪ fly me to the moon ♪ and let me play (bell ring)

what are you going to leave with us with >> we were just listening to cramer and investing again and, you know, it's an interesting thing.

and can all weld on an oil pipeline and the biggest problem in american communities today is we're going to leave this place in west virginia and go to north dakota and weld an oil pipeline and they don't have the skills to do it the real solution that we need is not just tax reform although that's important it's actually the education system in this country although locational and technical in trade. >> not even part of the conversation right now. >> president trump does that then i'm hopeful in the next five years we won't be having the same stupid discussion about people being permanantly on welfare and people left behind and we'll have dignity that comes from hard work when is that conversation going to happen? >> i hope it happens now my buddies and me were beating this drum as hard as we can. we can look at the current environment whether you like

what's going on politically or not this is an tount start talking about dignity in the country. >> dwroud have to have half of the country admit that trump serves his entire term they're not there yet. a lot of people just say look, this has got to end. we're not doing anything until we get rid of this guy. >> we had a decade and a half now of one side always resisting the president in the white house. >> thank you so much great to see you. >> thank you. >> right now it's time for squawk on the street >> the premarket is packed with news whether it's earning from amex, qualcomm,