good morning welcome to "squawk box" on cnbc. look at u.s. equity futures. dow opens off 34 points, nasdaq looking to open down after the weekend. 8 points in the s&p 500 off close to 4 points. in asia, show you what's going on while most have been sleeping hang seng up a bit if you look at european equities now, i want to say mixed picture, that's all on the down side ftse 100 off 1%. breaking overnight, international monetary fund cutting u.s. economic growth

forecast to 2.1% in 2017, down two-tenths percent from earlier estimates. they're trimming next year's growth outlook as well fiscal policy will be less expansionary than expected they expect fwrogrowth in china, japan. happening now, opec and nonopec ministers gathered in russia to discuss global oil output speculation swirling they could ask libya and nigeria to join in on production cuts both those nations are exempt from a deal to cap output. we have much more on the meeting later in the show. not much movement in the energy markets. in corporate news, kkr nearing a deal for web md. they have had a five month auction to be bought they solicited bids interest more than 100 companies and

firms since february the price is unclear as of close, they had market cap $2.1 billion. >> put in some symptom you have, and then you find yourself falling into a web of web md >> leads to self medication, which is not good for anybody. >> it is good it is out there. before you couldn't find the stuff. >> you go to the doctor. >> friend of a friend would tell you some crazy story . >> it is probably good, you know what the down side is. you can diagnose yourself with the worst things from two symptoms that have nothing to do with -- so the fal negatives and false positives are impossible. >> everyone is a hypochondriac. >> $2.1 billion. >> what is propecia? that's my latest question.

>> you clearly don't have that >> you see, i am moving my hair. >> no, seriously, you don't have it >> if it is wet, it is thinning here >> can we try that >> minoxidil does not work except here. propecia works here. i think the president may have that it does something. you start messing with testosterone levels. when you get old, those levels are not what they used to be anyway and it can do some of the things that aren't great. may need to combine with something else >> this from web md? >> i was looking around google what pfizer makes. that's recently. is it viable, would you, i'll try it, i will give you a testimonial of how --

>> if it works on you. i'll need it we all are going to need it. >> you look great now. you look shiny gl that's because i didn't have makeup on. >> why not >> i wanted to go oh natural >> i had a sick image of you i can't unsee it in washington, president trump will meet with a group of people that the white house calls victims of obamacare sounds dramatic. he will then make a statement on health care. in a warning, the president tweeted if republicans don't repeal and replace the disastrous obamacare, repercussions will be far greater than any of them understand lot of news about jared kushner today, andrew. >> yes, sir. >> had to disclose a meeting again with the russians that hadn't been disclosed, but it wasn't a private meeting, it was at the mayflower, people were

around in other news, the president's son will sit out taechl intelligent committee will ask about his meeting with a rigs lawyer the appearance is not public, and kushner will not be under oath he has publicly issued a statement to the panel in which he says he did not collude with any foreign governments and has had no improper contacts and hasn't relied on any russian funds to finance any business activity. >> i understand it was done in private, i don't understand not under oath, means you can go and lie if you would like to >> i don't know. how often is it under oath in front of the senate. i don't think it is under oath when you go and talk he says he hopes to put matters to rest. the white house said yesterday that president trump is open to signing legislation that would toughen sanctions on russia.

senate and house leaders reached agreement on a bill saturday that would allow new sanctions targeting russia, iran, north korea. health vote expected tomorrow. european union warned the u.s. against unilateral sanctions and is willing to consider retaliation. eu officials concerned sanctions could target european companies doing legitimate business with russia in key industries, including gas pipelines and rail transport. democratic leadership rolling out a new economic platform we have some of the details. >> good morning. democrats are laying ground work for the message in 2018 and beyond this new campaign called a better deal. takes aim at big businesses and trug companies here is what it would do first, it would create a trust buster, a person focused solely on scrutinizing big corporate mergers that have enhanced enforcement authority and the power to review mergers after

they have been completed at&t pending acquisition of time warner is one deal in the democrats' cross hairs, telecon, beer industry and at sunglasses. the plan would create an independent agency to take on prescription drug prices that agency would be able to investigation pharmaceutical companies and drug makers that jack up prices it would allow businesses tax breaks if they train workers on the job and promote apprenticeship programs. top democratic lawmakers, including representative nancy pelosi, with chuck schumer, elizabeth warren, announcing this campaign in a virginia county that president trump won, but that democrats have long been trying to turn blue guys, we will be watching that and get back to you with more. >> thank you for that report

a lot going on >> a lot going on. talking about it the entire time back to wall street, heaviest week of earnings season 180 companies in the s&p 500 are set to report. alphabet after close today we will hear from 3 m, dupont, mcdonald's, boeing, coca-cola, facebook, intel, starbucks, chevron, exxonmobile to name a few. >> thought you were doing all 200. am i right on that, almost 40% of the s&p 500 >> yes. >> that would be 200 did you see me do that >> like lightning. >> exactly >> calculator. human calculator. >> had my coffee. economic data, existing home sales tomorrow home price index, consumer confidence, fed begins two day

meeting. wednesday, fed sales thursday, durable goods, jobless claims, and look at second quarter gdp and consumer sentiment. really going to do the market, not talk about jordan spieth >> because i knew you would want to talk jordan spieth, i had to get up on jordan spieth. >> did you see. >> i saw the clips. >> remember couple times tiger needed to do something, it is weird. almost like caddy shack. then like there's divine intervention that's what happened to spieth. >> comes back to "caddy shack. >> five under for four holes many times i have been five over i have been five over on two holes, never -- i haven't been five under on one hole, but this never happens. final round at the british open. jordan spieth yesterday, he was

kind of -- i tuned in at 14. didn't see the mess on 13 that took a half hour gave up a three shot lead on the front line, and on 13, hit it so far right. supposed to miss it right, but not that far right on the top of a bluff, later take a drop. took a half hour kutcher had to sit around waiting, had to be torture turned it on from there. hit a shot almost went in the hole on par 3. sunk a 50 foot putt for eagle. pointed out to the caddy, they're like a team. and never looked back. sunk another 30 footer, hit a perfect pitch shot birdied that unbelievable kutcher, it was heartbreaking.

great guy, had come over as surprise flew over from colorado. then was very emotional. >> you have been five over. >> i have been five over -- that's what i said, on one hole. >> my question, if it is par five and you are like ten over. >> on the hole or -- >> on the hole >> if you hit a 15 >> on the hole. >> yeah, yeah. >> what do you score it as >> if you really are playing to score. i would score it as a 7 x or 8 x. you put an x there but you have an excuse for the handicap, can't allow yourself to take 15 strokes, you'll be sandbagging, handicap goes too high. there's a certain number you're allowed to take. if you're playing, you have to put it in the hole, you need to count every single stroke which

can make it very scary, the real game. >> i just wanted to know his third major, second youngest player to get the third leg of a career grand slam. >> and then 8 guys that have done it, those three are like the greatest golfers you think about that have the three legs of the grand slam. anyway wow. do you remember what you were going to say about the markets at this point? you don't. we can skip it what's your handicap, really. >> four digits >> let's check the broader market joining us phil orlando, chief strategist at fed rated investors. and head of short term investment opportunities at ubs wealth management. i like that. it is short term

that's specific. tell us exactly what that means. >> we look at opportunities six months or less in terms of horizon. doesn't mean we ignore long term think about switching from golf to sailing for a second, more familiar to me if the best nation is there, you rarely go, you would pack. >> you don't go straight either. >> yeah. >> would it be fair to say you're friendly about equities in general >> yes. >> but think maybe u.s. kwekts won't perform as well as some other places >> longer term because of valuation difference, more attractive valuation abroad, and improvement in the political atmosphere, in europe, versus the u.s. i think it is time to diversify,

not going to make an argument to buy one market, then sell the u.s. market, that would be damaging to the performance. >> as short term guy, there are times you might recommend that >> absolutely. >> that would be aggressive. most people that watch aren't going to arbitrage different markets. you say stay long. if you're a person that stoedoe want to do research to go abroad, stay in the u.s. >> with the currency. >> in terms of staying long everywhere, including the u.s. >> i am a one and only guy not looking at derivative strategies. >> staying fully invested. >> we are fully in invested. have the 3,000 forecast we talked about a bunch of times in the early stages of 2019.

>> on the s & p. >> thought we would get to 2500 this year. we are 30 or 40 points from that in terms of the trajectory from the election to the 3,000 level. we are tracking along. >> we are kind of in another fit now. >> we had a phenomenal run, up 20% since the election getting into time of year that tend to be a little seasonally perilous to begin with could we see 3 to 5% correction through earnings season, past the gdp report, absolutely doesn't in any way inhibit our longer term optimism about where this is tracking. >> so everybody is calling for 3 to 5% correction because we haven't had one before how do you sort of prepare for that are you preparing for that do you not see it short term in.

>> i would personally see it as opportunity. you have to understand, equities are not like t-bills, you should compare them with 30 year bonds or longer. for them to move 5, 7% is normal it will be an opportunity which people are waiting for by the way. >> and the fed talking this week -- >> i think the next big thing to look at is jackson hole. >> big deal, tuesday and wednesday, aren't they >> this is a nonevent. next thing is jackson hole yell enmay use that as what is her vision how the fed will shrink the balance sheet in the next five years. then you've got september meeting, a couple weeks after that the fed will theoretically trigger what she and other governors talk bout. not expecting anything big this

week, jackson hole meeting end of august will be particularly important. >> what happened to the dollar >> bearish the dollar for some months now the reason is principally expected the growth gap to close. what we have not expected was shift in political risk being european to moving across the atlantic quickness of that move was unexpected >> coincident to the call for weaker dollar, weaker interest rates as well, lower rates >> no. >> slight weakness, underperformance of inflation for four consecutive months, these are not expected yeah, that's partly what had bonds and stocks rallying. what's interesting is in the face of a bond rally, we had a stock rally. even this year, stocks outperformed bonds by 3%

don't forget in 12 months, 20% performance. >> that dollar weakness to some degree is serving as positive backdrop for good earnings season thinking earnings up 6 or 7% in a year our view was maybe 10 to 13% we are only starting earnings season large cap companies doing half or more business overseas are benefitting from the weaker dollar given the trends, ought to benefit back half of the year as well >> gentlemen, thank you. thanks for putting up with the opening stuff. that will go down. there's golf lore and the open championship, things that happened in the u.s. that arnie and jack did, that tiger did

this is almost at least equal, no one has ever finished a major like that. five under for five holes. never been done. >> what happens is after that. is there more about what they're going to win in the future >> i'm saying you want to put together a career talked about in the same way as legends, 23 years old and done this, well on his way to doing some special things hopefully get him back you can't look at jordan spieth without seeing underarmor. i remember randall saying he has to win a major that was before he had won the first major. beyond anyone's wildest dreams it is great. this is the human -- this is it, andrew this is good for everybody positive

positive make golf great fwen coming up, we will tell you why german auto stocks are under pressure. the latest from opec meeting from russia. "squawk box" will be back. ♪ are you ok? what happened? dad kinda walked into my swing. huh? don't you mean dad kind of ruined our hawaii fund? i thud go to the thothpital. there goes the airfair. i don't think health insurance will cover all... of that. buth my fathe! without that cash from - aflac! - we might have to choose between hawaii or your face. hawaii! what? haha...hawaii! you might have less coverage than you think. visit aflac.com and keep your lifestyle healthy. aflac! ♪

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welcome back to "squawk box. look at shares of germany top automakers, they're sharply lower. alleging bmw, daimler and volkswagon. >> collusion. >> to fix prices of diesel emissions systems. european commission could step in to investigate possible -- >> collusion >> we know that word sounds familiar. >> bmw issued a statement saying its vehicles comply with all legal requirements. gas prices have been dropping for months. average price of a gallon of regular, up a penny. risen the past two weeks 2.32 ten cents higher than a year ago. survey predicts gas prices will rise by a few more cents i was pumping my own gas this weekend, i thought it was higher

than that. then i started using a debit card or credit card, i blew the whole thing. >> pennsylvania? >> no. >> new york, great state >> so is pennsylvania and i was trying to figure where you were. you were in new york thought your place was -- >> we were in long island. >> okay. >> you went out saturday friend >> friday. >> you went out friday >> and we went with friend, a couple, not a lot. we have some friends. >> how far out did you go? >> we went not all the way to montauk, end of the island, a little bit in from there sfwl which one >> multiple hamptons. >> you don't want to say fine. next time a crowd will be waiting. >> we have security issues as it is >> where were you this weekend

>> i'm trying to, trying to dodge the cameras. difficult. tmz people are waiting outside with cameras what am i supposed to do opec oil ministers meelt counterparts from nonopec countries at a meeting in russia jackie deang less joins us >> in russia >> good morning, guys. the meeting isn't official opec meeting but it is important. >> is this not a political segment? this is a russia. >> this is an energy segment the 1.8 million barrels a day, cut they promised that's been supporting prices, that's contingent on nonopec participation. russia of course being key they agreed to 300,000 barrel a day cut. despite that, they said the cuts have been made oil prices are closer to 50, but the market is cautious during the first half of the

year, everyone was cooperating libya and nigeria have been increasing output, so have saudis who are the linchpin of the deal 18 months is a long time to sustain this type of cut, especially for countries that sustain themselves on oil revenue. saudis cheat, can you blame weaker countries for doing it. td saudi minister met with representatives from libya and nigeria to discuss the challenges they're facing. those conversations will continue today what happens in st. petersburg may be less important than what's happening at home u.s. production is steadily rising to 9.4 million barrels after having fallen a million barrels. that's what players in russia can't control. that may change dynamics of where we see prices going. it is impacting the market they supported it, can't get it back over 50 at this point and it is not just libya and also nigeria, worried about ecuador, uae as well

a lot of players here. some say the russians may say they're cutting 300,000 barrels, we don't know if they're doing it this is an honor system and that's questionable much. >> one of the most amazing things from five years ago remember last time we were stuck above 100, never thought it would -- never coming again. now we think it may never go above 50 again. >> that's the thing. people say we will rebound, but it keeps extending longer and longer this rebalance may never happen. the secretary general saying it is slower, we will see it second half. >> you said 232. higher than last year. that's music to my ears. >> some are paying $2. for gas, not bad >> confused about russia were there meetings in russia?

>> we might do fake news and we didn't we will do some later. 85% of financial advisers are men. shannon mclay started a financial gym to help women be more comfortable uses principles psiofhycal fitness. she joins us next. most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory.

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welcome back you're watching "squawk box," live from nasdaq market site in times square good morning u.s. equity futures at this hour are mirroring what we see in

global markets down, in the red. had a pretty good run. is it july, am i wrong on that >> still july. >> one month you were off by ten days just a couple weeks ago. >> it was may. i said it was june i think >> i think it was the other way. >> it was like not a week. you were off by more than -- it just happens >> it happens. >> not often >> it happens, i am familiar stocks to watch today. shares of takata, australia consumer watchdog is joining investigation into the company massive air bag recall comes a day after australian police said a deadly car crash was due to one of takata's faulty devices this could be the 18th linked specifically to the air bags worldwide. ryanair second quarter

profit rose 55%. the irish discount carrier warns it may cut rates by as much as 9% rivals may struggle to compete with those cuts. american, delta, frontier agreed to pay hundreds of thousands each in fines to settle u.s. government claims they violated rules aimed at protecting consumers regulators say they failed to make timely refunds to passengers delta with complaints about mishandled bags. frontier involuntary booked passengers from overbooked flights. they all have a lot of little things that make it -- i had a ticket i didn't use and to try and get, there's no way you're getting the money back. >> you get a credit. you have to use it in the next

year >> but you can't use it for anyone else in your family. >> that's true >> if you book a family ticket, not just your own, you can't use it the clock is ticking tried to use it three times, they said oh, no, there's fine print, can't use it because of this or that i'm getting it back, if i have to fly somewhere and just go there and back to get my $600, i am doing it. >> did you see what hotels are doing? >> what hotels >> used to be if you had to cancel a hotel, you had about 24 hours, 48 hours to do, really overpriced place, a week or two out. now they are eliminating this system so when you book up front with marriott and others, you're done >> you own it. >> you own it. you book a week out, if you have to cancel, it is all on you. >> that's impossible you lose -- it's gone? >> gone. >> not refundable?

>> nonrefundable >> swap hotel rooms, something else will come out to get rid of the hotel room you booked with marriott. >> some of these are 1%er problems we have a lot of -- >> i was going to call them road warriors, business folks running the country getting to different places, booking hotels having to cancel because someone cancels on them. >> you say this won't last, i don't think. maybe luxury people can do it. >> marriott is really doing that >> not all hotels. some of the chains the next guest company offers tools to financial health that are often associated with physical fitness bring in author of train your way to financial fitness good morning to you. >> good morning. thanks for having me >> how does the financial gym

work >> the financial gym started four years ago when working as a financial adviser at merrill lynch. i became a financial adviser because i was looking for one at the time working at bank of america, merrill lynch next door, i needed a financial adviser i realized 85% are men, not that there's anything wrong, married a man, birthed a man, but if somebody was looking for something different, it was difficult to find. i became a financial adviser, building a practice of high network individuals and doing great. but i was developing this side business with pro bono clients, people that didn't have $250,000, wanted to speak with a financial adviser, wanted to pay for it i laugh thinking about it, i never would have created my business if i listened to mentors that told me prescreen all your always, make sure they have at least 250,000 in assets

before you meet with them. >> what is this notion of the gym, training for financial fitness. >> we take the concept of physical fitness, apply it to financial fitness. the people that wanted help, they don't have the tools, at merrill i didn't have the tools, doing a wealth management analysis to help them. we work with clients just like a regular trainer would work with you. we have financial fitness trainers, you pay like a regular gym. you get a trainer that helps with budgeting to saving to expense management to credit cards, student loan debt, your whole financial health. >> seems like there are a lot of resources online that are offered for free if i want to learn about credit scores, i can go on bank rate and pull up information there. how do you get people to pay for $85 a month. that seems like it could be a lot, especially for 99%ers >> we say if you have a problem living paycheck to paycheck,

can't afford $85 a month, you need to join the gym there are plenty of online resources, but they're not getting it done. we have a financial epidemic in this country average client that makes $60,000 a year, first three months of working with us will have saved $1500 they paid us 250over three months and made $1500. so we have the results i have been building this model the last four years since i left merrill lynch. always joke as financial trainers, if we are not doing our job, first ones to tell you to cut this expense. we feel like everybody could be a gym member. >> does this mean i get personal service, how much of this, is there a robo element >> you're more than welcome to use the robo we send clients to those they're great for one part of your financial life. talking about your question, there are so many websites and apps but only solve one part of

the problem. betterment helps with investsing, mint helps you with budgeting. they all figure out one part of the problem. we figure out the whole puzzle, put it dogt. it is a human being. we have one location in manhattan, work with people virtually as well. you have a physical human being who knows your problems, knows your challenges. and is available to you. >> you could bike and talk at the same time. >> talk about the budget. >> quite a coincidence if i called her on the one time i was on that thing in the last four months could you give me all of the information i needed it is downstairs you can't go on in normal clothes, you sweat >> you're not hanging clothes on it that's when you know it is over. >> you've given up other people use it.

>> what's the most amount of money a client may have. >> we have clients that started with zero in the bank and clients that started with $2 million in the bank. we feel like it is not to be -- everybody should join the gym. always ways to enhance your financial health people are in the gyms, we feel everybody should be in the financial gym. >> thanks for coming in. hedge fund, hedge hunters. sasha will bring us pulse of hiring going on in the second half of the year it is better than it happen. ridesharing service lyft getting into the self driving competition. chief strategy officer joins usual 8:40 a.m this is "squawk box" on cnbc back in a moment ♪ at fidelity, trades are now just $4.95.

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dunkirk total up to 106 million worldwide. warner brothers movie getting

boost from i max screenings. "girls road trip" brought in 30 million. sci-fi epic valerian got $17 million this weekend cost $180 million to make. it is dribd in the u.s. president trump just tweeting drain the swamp, should be changed to drain the sewer. it's actually much worse than anyone thought and it begins with the fake news once he starts, a lot of times, we get a series of these we'll see what's next. coming up, we're going to talk now the executive edge. first time since 2015, hedge funds have a reason to celebrate. the industry ended record six quarters of investor outflows

after raising more than $6 million. what does this mean for hiring in the second half one of the most successful headhunters joining us we talked about how everybody and their brother ran from hedge funds a year ago was that just about the worse time to leave? >> i don't think it was the worst time to leave. there was anticipation there was trouble to come. i think what's happening now is thankfully everything is coming back in favor of hedge funds tracking that we nltsed in terms of hiring has gone up, over 25% on last year $6 billion that's been raised we track the asset raising highs in the industry and 6 million raised is a great number >> how many have you put in place. >> it has been the busiest

quarter since launched, placed ten people in asset raising. >> traditionally how senior. >> global heads to sbps. >> anyone still want a job in hedge funds? >> they do indeed. not an area or sector people are jumping out of at all. we get demand from candidates on a weekly basis >> in terms of hiring, is it coincidence with return of hedge funds? what can this hiring cycle tell us about where hedge funds are in the cycle. >> we spotted last year when ctas were about to make a mark, noticed in tracking there is c trk a distribution highs, up 20% in one month only, for example >> what's a cta? >> basically like commodities. commodity trading adviser. >> a lot are risk parody

strategies >> in my day, all you did was just sign up to be one is it different now? nothing. then there are associated persons that needed to actually have training, but a cta, this is like 25 years ago i was one. all i did was sign up. it was perfect for commodities you need to know nothing to be a commodity trading adviser. is it sill like that >> it is >> seriously >> it is a different market now. there's expertise in asset raising. >> weary volume ving in that business >> i want to know about the money. what kind of salaries, comp. what's the comp. not that you're giving out. >> secret source question. >> yes. >> so it ranges from minimum for a senior asset raiser is around

$500,000 and it will go up north of that, anything to 2 to $3 million depending which seat you're sitting in, what size fund you're working with. >> what about a more junior person. >> anything from 100 to 300. >> not bad >> what do you think it was? >> how does it compare to the peak >> we saw larger salaries, guaranteed and secured over two to three years sometimes now there's been a shift, there's been adjustment in the market in terms of compensation. but still a lucrative industry to go into >> these are money raisers >> these are people that speak to the lps on a daily, weekly, monthly basis, understand allocations, know when to make the phone call for next reup on an allocation.

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competition is mounting in the din tal streaming space. amazon netflix and apple are all ramping up spending, on original content. but, just who is watching? joining us now is andre swanson, ceo of true optic which measures audiences watching shows on over-the-top platforms true optics just announced a partnership to provide data to advertisers. welcome. it's good to see you is comscore the right partner for you to get this info and are you at this point, nielsen does not compete with

you in terms of the information you can provide? >> so, to answer your first question, yes, we're really excited about the partnership with comscore. >> new, right? >> i think this is the first time anybody is hearing of it. tru optik positioned itself as the leader of any data driven capabilities -- we pride ourselves on helping people transact off of whatever their truth is if that is their own first party data from crm or branded data, and what you see with the billions of dollars shifting from linear television and old school digital to connected tv people wanted a source of truth on demographics and comscore allowed us to help people use the same data that they're using across linear television and digital. desktop and mobile and use that and connect to tv. >> how is the data gathered? >> so comscore obviously has their panels, they have across millions and millions of digital

devices they have other data that they source from their partners and where tru optik works is we have the kind of only sdk list or layman's term the only software solution that's not really cumbersome to leverage across all the different connected tv devices and we're able to anonymously sync the comscore data back to any of those devices. when you're talking about an xbox or smarttv, really doesn't matter >> the value could potentially be in two parts. i imagine for an advertiser they get a better read on who exactly is watching what but also from the standpoint of netflix and hulu in the original contend game could you leverage that data to better produce shows that would cater more towards your audience? >> yeah, absolutely. absolutely so i mean, most of the immediate benefit is going to be on the ad supported side >> sure. >> right and so you have the audience that's shifting. but sometimes advertisers are apprehensive to maybe shift their dollars in a conventional

proportion to the audience because they don't have the certainty about exactly who they're reaching so that's where the immediate, you know, impact will be felt. but in terms of the even in the nonasset environments that are now doing more things like branded content, or brand sponsorship, this could also be very helpful for that, as well >> hmm i'm just wondering, you know, down the road, nielsen at this point has a lot of shortcomings in what they do. i don't know -- and, scary to say that, isn't it you have a high degree of confidence in the numbers that comscore is providing in the first place? >> so, when we say numbers, across connected tv, it's less of a ratings situation, we're saying how many people approximately watched this show. it's specifically how many at census level so across connected tv you really don't need a

rating because that's not how the advertising block is sold. you're really looking at more audience based individual household based buying similar to how you would buy social media advertising on facebook you're not waiting for a nielsen rating for that. right? you want to know exactly how many phones it's reached, how many females, and that's what we're seeing across connected tv our relationship with comscore or any of our partners is more about the data and the understanding they have on the audience we're not beholden to anybody to get a specific number. >> how many are you collecting for? >> so on a daily basis we're updating data in our data marketplace for about 91 million homes in the united states >> but where are you getting all the data from? >> yeah, so we've announced partnerships with lodamay marketplace, experian, comscore, we have over 100 branded third party data marketers in our class. that gives us more data than

adobe and oracle combined for connected tv so what this transition has been for us is really, you know, three years ago, and i think we spoke about this quite some time ago is really going all-in on connected tv and trying to not reinvent the wheel, but the same solutions that people kind of relied upon across digital and linear kind of bring back that into a new environment. >> are there any surprises in terms of the data that you collected in terms of who is the most watched and things that maybe decide investor sort of just assumptions about netflix or hulu or whatnot >> yeah, so definitely we can talk about kind of from the content standpoint and maybe what i think is going to be a little bit surprising to people from a content but i think even more so from the audience one of the biggest misnomers is that over-the-top or connected tv is just millennials that's just a fallacy. right? >> i was going to ask you that whether all your data leads to like the parents' basement that's not -- >> no.

so you're seeing the average age of connected tv home increasing dramatically you're seeing the average household incomethat streams connected tv older, actually more affluent than maybe -- >> would you ever see partner to provide a total number of dealership or that's not your thing >> well, i mean, the partnership with comscore today pretty much accomplishes that. >> that's one of the same things >> whereas comscore can just source the truth across linear and digital and -- the partnership today kind of makes that possible at a very large scale. >> all right >> thanks, andre >> i told you there would be another tweet. president says after one year of investigation with zero evidence being found, that's capital "z," chuck schumer just stated, and these are in quote indications, democrats should blame ourselves, not russia. so that's the latest if you're following that >> coming up, shake-up at the white house. press secretary sean spicer is out, anthony scaramucci has

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earnings overflow. nearly 200 companies in the s&p 500 will unleash quarterly results this week. we'll get you ready for the earnings parade. what's on tap in washington? president trump is set to speak about health care. plus a new communications chief steps in and he's a familiar the details straight ahead and energy in focus as oil ministers are meeting. a look at where prices could be headed in the second half of the year as 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 near on cnbc we're live at the nasdaq marketsite in times square i'm andrew ross sorkin along with joe kernen, melissa lee is hanging out with us today. becky quick is off take a quick look at the futures right now the dow looks like it would open off about 22 points down nasdaq off about 5.5 points and the s&p 500 looking to open off a little over two points got a couple headlines to tell you about this morning making headlines right at this hour, shares of webmd have been halted pending news and the news is out here's what's happening webmd will be acquired by kkr. transaction valued at about $2.8 billion or 66.56 per share talked about in the last hour. so many of us go on to self-diagnose. >> yes >> unfortunately >> and then self-medicate. >> well hopefully they're not doing the self-medicating problem. but the self-diagnosis --

>> isn't self-medicate with over-the-counter stuff you can. >> of course >> it's bad. >> yeah. >> crude prices, crude oil prices have moved higher in the last hour or so. opec ministers meeting today to try and stem an oversupply problem that's weighed heavily on crude prices and nigeria has agreed to cut production cartel wants libya to do the same no dwreemt has been reached. gasoline prices rose a penny over the last two weeks. average price now is $2 -- $2.32 per gallon the first rise in eleven weeks melissa? you saw some move this morning, blackstone's reportedly in talks to buy 40% of nso for $400 million nso is a privately held israeli cybersecurity firm that makes spy ware for mobile devices. american and sun tier airlines have agreed to pay hundreds of thousands of dollars each in fines to settle claims they violated rules

american failed to make timely refunds to passengers. delta underreported complaints about mishandled bags and frontier involuntarily bumped passengers from overbooked flights. and blue apron getting some love this morning from wall street after a rough week at least five firms have upbeat ratings. that stock is up 8.4%. >> it's a big week for economic data it's still july. maybe wait -- quite as much anticipation as when we're sitting inside in the snow outside. but we will be watching. june existing home sales today tomorrow, the s&p case-shiller home price index and consumer confidence plus, plus, yeah, plus, get ready, get excited the fed is going to continue a two-day meeting. then on wednesday look for new home sales and then the fed decision at 2:00 eastern thursday we get durable goods and jobless claims and then friday the first look at second quarter gdp.

and then consumer sentiment. first and second and then a second and second and then a third at first and then followed by a second add third and who's on first and what's on second. is that all straight second? >> what would the mooch say? >> scaramucci? i don't know did you see -- anthony now said there's any leaks, they'll -- they're going to get these guys. it's a communications -- i mean, you remember -- >> he's not the chief of staff he's the communication -- >> yet may be the operative word >> you remember dallas >> i do. >> the show? >> yeah. >> uh-huh. >> jock ewing, a lot of great -- nobody gives it bobby, you got to take it right? if there's a vacuum, you just -- what i mean -- >> maybe there's a leaker. >> talking about taking. democrats on capitol hill will unveil a new economic plan today. >> did you see dallas? >> years ago

in repeats when i was a child. >> you remember jim davis? >> no. >> you don't remember jock ewing? >> no. jack ewing >> jock. you remember jock? jock ewing >> no. >> bobby's dad >> no. >> jvlt r.'s father? charlene tilton. >> okay. >> the democrats new economic plan has a new slogan called a better deal and takes aim at big business and drug companies. house democrats leader nancy pelosi offered a few details in a "washington post" op-ed this morning. she promises three new proposals creating jobs, cracking down on monopolies and big corporate mergers. and lowering the cost of prescription drugs the plan would create a trust buster, a person focused solely on scrutinizing big corporate mergers with enhanced enforcement authority who would even have the power to review americaners after they've been completed. the plan also creates an independent agency to take on prescription drug prices, investigate pharmaceutical companies and drugmakers that jack up prices the proposal would also give

businesses tax breaks for training workers on the job, and promote apprenticeship programs. what do you think of that? i'm not sure that -- this approach is where the country is right now. >> that's what matters you're right >> i hate to say that. that's not what i hate to say, i just don't think it is >> you don't like to say it. >> no, no, no, i just think this approach is given where the country's head seems to be, i'm not sure the winning formula >> all right >> at the moment >> all right >> in other washington news the president's son-in-law jared kushner will sit down today with the senate intelligence committee. i like saying that senate intelligence. what are those called? >> oxymoron. >> yeah. he's expected to be questioned about his relationships with russian officials and his meeting last year with a russian lawyer the appearance won't be public and kushner will not be under oath kushner has, however, just publicly issued his statement to the panel on which he says he

did not collude with any foreign governments. he has had no improper contact and has relied on any russian funds to finance any business activities, and he says he hopes that this puts the matter to rest >> he also blamed his assistant for filing a version of the security clearance questionnaire that was -- >> yes, exactly. >> so the best part of it, though, just in case anyone was wondering and you should use this in future meetings, he said during one of the russia meetings that was he thought too boring that he thought was a big waste of his time, did you see this, he sent an e-mail to his assistant saying, please call my cell phone so that i can get out of the meeting you know >> like a bad date >> exactly like a bad date. >> yeah. >> so he sent the note saying, you know, call me to get out of the meeting. so that's -- >> right >> and they now have that on record >> right >> and it's easy to do that now, if you've got -- in the old days if you just had a flip phone you really couldn't -- >> flip phone? >> you couldn't really do that

>> or no phone >> you could send a text then answer, what? oh, my god and then out of the room >> right >> there should be a service for that where you just call a service that will ring your cell phone. >> how about we build an app >> build an app. >> just have our own app >> and have it on planet of the yaps >> we could do that too. >> did you watch that? >> i have not watched it >> surprising. >> i was looking right at him when i said it because i thought it just was your thing >> planet of the apps. >> it's all about -- >> yeah, i know. i will then be judged -- >> how come you haven't watched it >> i haven't had a chance -- you can only watch it on your iphone, right? you have to download it? >> i don't know. >> and -- >> way out over my head on this. >> back to the markets now this is the heaviest week of earnings season. 13 dow components, 180 companies in the s&p 500 are set to report alphabet is after the close

today. we'll also hear this week from 3m, caterpillar, dupont, eli lilly, general motors, mcdonald's, boeing, coca-cola, facebook, amazon, intel, share bucks, chevron and exxonmobil. joe? >> all right let's bring in barbara reinhart, head of asset allocations of voya investment management and karen kimbrough head of investment strategy at merrill lynch wealth management. i started reading some of your comments you are interested in tomorrow and wednesday and very interested, right? >> yes >> tell me -- i want you to imbue some on me, some interest in the fed, in fed speak >> well, when you think about central bank activity you have to put it all into context normally, it takes a multiyear period of heightened interest rates in order to fight insubstantial conditions and cause some types of problems, and expose where the issues are for the equity markets we're still very early in this tightening cycle and the announcement on rolling back the balance sheet, is it going to run in the background,

as janet yellen has said but we would note that there's been 100 basis point over the past year. earnings in the u.s. is relatively strong. guidance has been a little bit light this quarter but we also know that corporate ceos tend to slow down when they don't know what the future really looks like. and they're waiting a lot on potential tax legislation and what their tax rate's going to be so it puts the fed into a place where they probably have to tread a little bit lightly because the inflation data has gone to the downside however, growth is going to be relatively strong. you know, global gdp this quarter is likely to be 3.6% that's as fast as it's been -- >> why do you say we're right at the beginning? maybe we're near the end of the tightening >> look, again, this is going to be a multiyear period of raising interest rates globally. right? so, while yellen may be coming into midcycle pause, right, the expansion -- >> so, then the terminal end

point long-term is not a couple of points lower than it would have been ten years ago? >> yeah. of course it is. >> it is how much lower >> it pebds. our productivity measures tell us we're not reverting into a factor for activity cycle which means the terminal rate on the short end may be something, you know, closer to zero and in the long end it's probably not three like the fed is saying, probably something closer to two. >> karen, you make one of my favorite points here, and that is that quietescent inflation is not a curse but a gift you thinkwith this fed they should try to get -- they ca micromanage exactly 2% if it's low, if it's lower than it should be, but if it's not deflation, how is that bad >> i don't think it's bad. i think we're in a sweet spot. i don't understand the fed why they're in somewhat of a rush to get going on the balance sheet and i say this with ten years under my belt at the fed and a great affection for what they're doing, but i don't know why

they're in such a rush to get going. i know most expect them to get started in september and they'll kind of crystallize that message this week at the meeting but i think inflation looks low, and slow, and like everything else, we'll just grind higher over time but i do think productivity is probably going to come back. i'm a little bit more of an optimist here. >> we need it to come back >> i think it will i think you're seeing -- >> come back to do 3%. so landry is going have to eat his words. >> is that right >> can we get to 3%? >> by when >> ever again. >> yes >> ever again. >> yes >> in the next three years actually, not even the next three years. in the next two years, because -- >> no. >> in an election cycle -- >> no, in two years you won't make it. but you'll get there but what you need is businesses that have more confidence which you guys were saying they don't quite have right now on regulatory agenda. >> how about by 2019 2019 >> no. >> for the next -- >> no. this is a -- >> for the next election cycle

>> 3% this quarter >> excuse me can we get 3% -- >> i'm talking about gdp >> oh, you can getgrowth -- yo can get growth in the high 2s. i don't think you'll get 3 >> ever? >> on an annualized basis? >> yeah. >> oh, yeah eventually but not right now. >> well i don't want to wait for eventually >> it's a low and slow >> but the rest of the world is growing. the rest of the world is doing just fine. >> oh, okay. >> we may be in some pause like you're saying but that's going to be smoothed out by an acceleration in productivity, excuse me in activity that we're seeing >> with the employment rate where it is why do you think the fed has so much time and what's different about this economy with labor so tight, why isn't inflation right on -- >> because we're making a long-term shift from, you know, labor to capital it's the people to the robust. and you don't want to hear the

robots -- >> don't give me more -- >> in a big economy, right, so in this type of an environment, we've got very low unemployment, you don't have very fast wage growth and you don't have -- >> right now maybe that comes when people start to get trand for what they need to do it. >> it could very well be but the issue that you've got also is the change in labor force right? so you've got more people in the big economies, far more kind of on-demand work that goes along with it and that does suppress long-term wages. it's a different type of recovery that you had from any other type of situation. so, for that, if you've got very low wage growth, it gives the fed some time, and also while you do have unemployment at very low levels, maybe lower than what the market expects. >> it's a really hard one, historical precedent no longer apply. >> but the fed has basis in the curves, base in the idea that inflation is going to come back. i think it may be a little bit too much faith, but they think it's going to come back. they think they're going to keep

hiking for the next year and a half >> if you can't count on what happened in the past, then it's different this time. but it's never different >> it's never different. >> it's never different. that's why i think productivity is coming back and that's why i think eventually -- >> you thought i was saying that andrew didn't think we could get 3% productivity? we don't sit around talking about the minutia -- >> i do. >> we're not arguing about -- are we what do you think of the pce deflators? we think in big -- >> big picture >> unemployment, and that's about all we know. we're simple we keep it simple. >> why not >> not simpletons. >> you know simpletons are not what we think simpletons are, right? wasn't that the lesson we had? >> i don't want to be -- >> simpleton is not what you think it is. >> some of the things you need -- >> for the definition on that. >> you need long-term secular things, you need driverless cars, cheaper energy these are very long-term trends that will unfold over the next

decades. it takes awhile. >> a simpleton is a foolish or gullible person. a simpleton is not just someone who is simple minded >> you mean the key to simple in a good way this is someone who's just -- okay >> look at the data -- >> you think you're gullible >> no, i don't >> foolish, maybe but gullible, i don't know about >> we got to go. that's what someone just told me, they don't care what we are. barbara, karen, thank you. >> it's not about us >> coming up another staff shuffle at the white house a face many cnbc viewers know, anthony scaramucci taking over white house communications what the latest move means for president trump next and then stock picking abroad find out what working in emerging markets you're watching "squawk box" on cnbc the governor has declared a winter weather emergency... extreme risk of burst pipes and water damage... soon, insurance companies won't pay for damages. that is, not if they can help prevent damages

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yeah, and i can watch thee bgame with directv now.? oh, sorry, most broadcast and sports channels aren't included. and you can only stream on two devices at once. this is fun, we're having fun. yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens. welcome back to "squawk box. the white house has a new communications director anthony scaramucci getting tapped for the job. he talked about getting his message out over the weekend >> i think there's been, at times, a disconnect between the way we see the president, and how much we love the president, and the way some of you perhaps

see the president. people probably see the president the way i do but we want to get that message out there, and to use a wall street expression, there might be an arbitrage spread between how well we are doing, and how well some of you guys think we're doing and we're going to work hard to close that spread. >> joining us right now, former white house communications director in the clinton administration good morning to you, don >> good morning. >> so how much with the m mooch, who many of our viewers know, change the narrative >> well he's had great train here at cnbc so i'm sure he'll be a big success he could have a big impact but he's going to need to be less of a high row file figure and really just go behind the scenes and do the work the problem for this administration is that they haven't really had the fundamentals of what strategic communications is all about. they haven't really been very persuasive with their arguments, and moving those who are not

already supporters of theirses or keeping those independent swing voters on their side they haven't been creative about how they reached out nor inspirational at times there's no integration and coordination of the many different voices that they have. and finally, they've had no sustained message at all they really have not been able to kind of move this forward so what they call message discipline takes a lot of behind-the-scenes work, with many, many different voices and forces that are going on if he's ready to sort of buckle down and do that, and help president trump in the white house get on that path, he can be successful. but if what he's going to be doing is kind of traipsing around to the different shows and whatnot, it's hard to do both of those things at the same time >> and your expectation is that he is going to be more of a spokesman? or more of a behind-the-scenes person the way he at least described it on friday was that he was going in front of the cameras now, but that he planned to turn that duty over. >> well, yeah, if that's what he does, then that will be great. of course there's another piece

of that that really has to fall in place no communications director can really do his or her job well without a really strong, focused chief of staff white house chief of staff and it does raise questions of course because scaramucci came in without reince priebus really agreeing to it or approving it that's really where all of this starts of course it starts with the president. but the president has to have confidence in the people in those key roles in order for this to work >> don, who did you report to? did you report directly to the president? >> no, i reported to leon panetta when i was white house chief of staff, and i had come in originally i was the chief speech writer and i reported to mack mclarty and then to leon and i moved up to be communications director. >> and if you were to look at a chart, where anthony is now reporting directly to the president, how does that change the dynamic? or do you think that that was intended to effectively force priebus to resign?

>> it -- boy, the tea leaves are not great for priebus, it seems to me. i don't see how a chief of staff can agree to run the white house without having that communication function reporting to him or her. it just doesn't work it won't -- but that's true of all the key functions. you know, other than sort of the top, top policy jobs the fact is, it shouldn't matter right? all these reporting authorities shouldn't matter when i was there, i had free range to work with the president. the president would call me in to do what we had to do on whatever it was, and there was complete transparency with the chief of staff's office. we all knew that we were on the same team. that's not to say there weren't a lot of divisions in the clinton white house. we know about those. there are in every white house but the fact of the matter is, all of this reporting on the ups and downs and the intrigue of what's happening, you know, in the halls of the west wing, it's actually distraction right now the real challenge that they have is this is why the president now has only a 36% approval rating among other reasons. it doesn't feel like they're

focused on the concerns of the american people. it seems like they're focused on the concerns of all of the people inside the white house. >> and that may come about in terms of the focus on the american people through better messaging. don, i'm just curious, from what you can see from anthony scaramucci's so-called chess moves so far does it look like he's gunning for chief of staff or from some other position? >> it's hard for me to judge on that i see there's some recording out today that his name may be on the list sure seemed to be like maybe he was being put in place to move forward into that. there aren't a lot of other big names out there yet if priebus is on his way out. and, you know are gary cohn has been mentioned but he's got a pretty big portfolio at the economic council. so sure, i mean, of course, scaramucci has not worked in government before. he sort of barely worked in politics but he's been around and if donald trump trusts him and thinks he's going to be a change agent for him inside that white house, maybe he'll be one of the guys that will be

considered >> john, i know you're on the other side of the aisle when it comes to the president and the administration, but if you can take that hat off for a second and just put yourself, put yourself on the corporate hat you have now and let's pretend for a moment that you're taking the president on as a client, if you were sitting with him, you would tell him what? >> well, i would tell him just what i said to you before, but like here's what i would tell him. if i were going back and looking at last week and thinking about that "new york times" interview, whatever it was, 50-minute interview on the order in which he talked about all kinds of things and not about the american people, about what he's going to do for them, about how he's moving an agenda forward, you know, what a wasted opportunity. what a wasted chance to really sort of send the signal to the country that we're about your business, not about monkey business and, i think that if i were advising him i would say let's get on message let's stick on message let's decide what our agenda is and how we're going to move it forward in a very steady,

sustained way, without all the tweets >> dop, part of this is a messaging issue, and part of this is a factual just on the merits issue he has to deal with the constant barrage around this investigation, the mueller investigation, he has to deal with jeff sessions, he has -- there are other things going on plus he has to deal with the realities of what's happening on health care or the repeal or lack of repeal in this case, and then he has to deal with the tax issue. so how would you attack it both on the messageing piece but also on the merits of what's taking place right now? >> you know, eventually in the clinton white house people understood that they needed to sort of take all of the scandal concerns and considerations and have other people deal with them certainly not the president. and not -- i, as white house communications director rarely dealt with those issues. they were dealt with by the lawyers and communications and media people working directly with the lawyers we were focused on how to move

the agenda forward and stay focused on that. you know, think about how many times, if any, has the president actually gone to the country directly to talk about the health care plan to try to drum up support for it. not enough >> okay we're going to leave it there, don, it's always great to see you. thank you for being with us this morning. >> thank you >> coming up a look at making money in emerging markets and later oil producers meeting this week what you need to know straight ahead

good morning welcome back to "squawk box" right here on cnbc we're live at the nasdaq marketsite in times square among the stories front and center at this hour, shares of germany's top automakers are sharply lower right now. der spiegel alleging that bmw, daimler and volkswagen may have worked together to fix prices and design some diesel emissions systems. the report says that the european commission could step in to investigate possible collusion among the automakers bmw issuing a statement today saying its vehicles comply with all legal requirements separately it is official. big deal of the american webmd being acquired by kkr's internet brands for $66.56 a share in cash. that transaction valued at 2.8 billion dollars. and newly unsealed documents could be a game changer in the litigation involving fannie mae and freddie mac as details in "the new york times" this morning, if you haven't seen this story you've got to, the documents show that high level treasury officials knew as early as december 2011 that fannie and

freddie would soon become profitable again you have to remember in 2012 the government changed the terms to begin seizing all of the profits both companies generated every quarter and has become one of the most profitable investments, if you will, that the government has ever made as a result of that restructuring they've called it a restructuring. some of the creditors have called it a robbery. and dunkirk conquering the box office on his opening weekend. christopher nolan's world war ii film earning an estimated $50.5 million in north america, bringing it total to $106 million worldwide. according to comscore the warner brothers movie getting a boost from imax screening which accounted for $11.7 million of the domestic release new release girls trip finished second the r-rated comedy from universal bringing in $30.4 million domestically doubling expectations and check out this weekend's red bull cliff diving world

series it has the internet buzzing. scenes of divers showcasing their skills from the beachside competition in italy going viral on social media. italian wild card alessandro derose scoring a victory on home soil with an immaculate final dive sending 50,000 fans into celebration. the series' next event being held in texas on september 3rd le >> that height >> maybe want to make those -- >> look at those >> no. >> i don't want to get anywhere near the ladder that even leads up to the thing where they're diving from. i don't even want to look up at people >> and i don't know how to swim, so that would be -- >> excuse me >> that's not true >> i do not know how to swim >> wow >> so diving -- >> major revelation. >> huge problem for me on the other end of it. >> what does not know how to swim mean? doggie paddle? >> i can float >> can you doggie paddle >> i guess >> what do you mean you guess? >> if we threw you in the deep

end of the pool what would happen >> i would hate you forever. >> you would >> yes i would hate you forever what do you think? >> i don't know. >> would you be able to make it -- >> i don't know. i think so, yeah >> you'd be in position sink or swim that's where the -- >> exactly >> that's where it's coming from >> yeah. unclear what would happen. >> i just want to say i think news was broken herethis morning on "squawk." i mean the webmd news was one thing. but this is a whole other level. >> i don't like getting my ears wet. so that's the problem. >> if she survives the jump, that's -- >> i will probably not -- i would probably drown, yeah >> okay. from butch cassidy you know the movie, if you survive the jump, you drown anyway >> enough about me >> my kids are going to camp today and they have swimming lessons. we can work this all together. >> you should tell them about me, and how they do not want to be like me as an adult >> no, no, i think you can go with my kids >> oh -- i should go

>> i thought that was from days gone by. she was born in the '20s, you know, that was -- i thought that was days gone by that people didn't swim at all eventually -- >> learn how to swim >> picked that up. >> i don't know. >> i think you could -- dog paddle >> well, we're continuing our what is working series this morning. >> chicken paddle. >> a closer look on opportunities outside america. joining us now is head of global emerging markets at martin curry. kim, welcome to you. what areas of the world do you like >> something to like pretty much everywhere there's something to worry about pretty much everywhere, as well, i think. at the moment we're looking at growth which is one of the prereck businessates i guess for emerging markets in the first place. growth is coming back. it's sustainable we're looking at 4.5%, 5% overall over the next five years. >> mm-hmm. >> and within that you've got different drivers depending on the regions of the country this is a very heterogenus class as you know. >> there's been a huge push into

emerging markets, both equities as well as bomds does that drive the same drive that's propelling here in the u.s. the rise in tech stocks, the rise in biotech? sort of like search for growth in asset classes, because bond yields are so low? >> i think there's two parts to that the first part, the fixed interest investors when they look at emerging markets, what they like is relatively strong balance sheets country balance sheets >> right >> relatively low indebtedness at the sovereign level and interesting rates for them equity investors are looking at this and thinking well in the u.s. i've got peak valuations, peak profitability, where do i go from here in the developing world, you've got much more road ahead there are very good reasons to be optimistic on emerging markets. first of all, basing it on earnings recovery, all that flow that you talked about coming in is only coming because earnings are there. r.o.e. today is stronger, equity

is stronger in emerging markets, around about 11%, versus the developed world, sitting at about 10%. and yet you've got a valuation mismatch because on a price-to-book basis you've got two times roughly for emerging markets, versus 2.5 for the developed world. >> i want to get to the adrs that you like right now. but there are a lot of people who are investing in emerging market bonds at this point >> yeah. >> is there or should there be a concern that the inflows in emerging market bonds for etfs specifically is too great? and when that carry trade is over, like perhaps if the u.s. rates here move up, and that ends the carry trade that there could be a rush for the exsilts that it can't support? i think it's something like 12% of all emerging market bonds, assets, mutual funds, are etfs >> yeah, i think the short answer is, i don't know. i don't think anybody does know for sure but it certainly looks like that could be the case. i mean, i think you've got to split investors into two parts here first of all the group that are

long-term dedicated investors to the asset class, they're not going to walk away any time soon, because they're investing -- >> probably the reason -- >> the etf is a tactical, you know, optically cheaper way to play it. it may be less loyal but you know, let's be honest here, all foreign investors tend to be disloyal anyway, right we're going to move to the next opportunity, as soon as we think it's appropriate to answer your question head-on i think there is still room to move in terms of the sovereign trade. and in the equities space, we're finding great bottom up opportunities. stand alone opportunities that could work very well the one thing i say before you move on to the next question, you've got to remember that from the world is awash with qe money, something phenomenon certainly i've never lived through in 30 years, probably most of us haven't read about it -- >> have lived through it now >> i have now.

sometimes but the point i'm trying to make is qe has been a bit of a distorting factor without a doubt. >> sure. >> and as that turns itself off, you're going to see that the emerging markets didn't have that qe. if they got it, it was an indirect secondary effect on them and that's one of the trades, i think that may be behind your question that as qe dries up we don't know what the fed is going to do if rates start to move up in the developed world, then it puts a different complexion on it >> sure. >> so maybe it's not over. >> anything that might have worked, sort of, the underlying economy may have caught up with the -- >> absolutely. >> and even if it didn't, if you can't pinpoint the negative effects of it, and maybe they're still coming, i don't know, we won't know until we have the benefit of hindsight but if there weren't any negative effects, and there were some positive effects, maybe it was worth it >> well, i think the biggest thing is we didn't kill the economy, right we didn't really pay the

price -- >> no. right. we didn't. that's the thing it didn't -- there are certain prices that didn't go to where they would have gone so they didn't -- system didn't get cleared out, so you wonder how this new foundation -- >> correct and i think as a bottom up, still one of the frustrations is that you spend your time trying to identify really good quality opportunity, and yet you find that a lot of companies that have not been -- sorry, want to finish this before i forget, companies maybe don't deserve to be in business, frankly, have been able to survive for longer. >> we're pressed for time. one of your stocks, credit corp and -- >> i think a good one to go with is credit corp because it's a low profile stock outside the emerging markets this is the dominant banking franchise in peru. peru is often an ignored economy in the world but it's a small, open economy, very orthodox policies being put in place there. the population of about 30 million people, of which 15

million are formally employed. there are less than 1.5 million mortgages in the system. so that starts to give you a little bit of the flavor for the growth ahead this is plain vanilla banking, absolutely your father's banking. >> but can you swim? >> absolutely, i can >> can swim. >> when i was 8 i was on a swim team >> very good >> thank you >> are there times where you're nervous, like walking -- if you're like -- >> no. >> you don't think you might slip in and then that would be disaster i guess you could make it? you would flail -- >> i don't worry about things like that. of course things like that can happen i can step off the curb and get hit by a bus i'm not going to worry near the curb >> i remember toddlers and you're so worried about toddlers >> uh-huh. so you think should wear water wings all the time >> i envision -- >> any time i'm near a body of water. >> a point where you could make it let's say 50 feet >> i will make it my business to learn how to swim. >> -- if you just slip --

>> i'm not going to slip out of a restaurant into the ocean. >> wouldn't you feel scared if water meant death, sorkin, wouldn't you be a little anxious? >> i'm anxious already and i'm on land. >> all right >> thank you >> coming up >> it's raining outside i'm anxious. >> you are it's a new york thing i think. you know i mean, you're -- you got -- go near a subway someone's like ready -- it's a whole thing. and there's dog crap everywhere. anyway coming up -- >> oh, my. >> everywhere you step no tree. an outlook for the oil market. producers are meeting this week. what can you expect next as we head to a break check out the euro this morning. after hitting a 23-month high on friday so new touch screens... and biometrics. in 574 branches.

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yeah, and i can watch thee bgame with directv now.? oh, sorry, most broadcast and sports channels aren't included. and you can only stream on two devices at once. this is fun, we're having fun. yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens. eye on a meeting of major oil producers today. jackie deangelis joins us more with where prices could be headed >> some of the headlines coming out of russia this morning, the saudis saying the oil market

outlook is bright and promising. there have been some discussions with the countries who've been less apt to comply the suspected cheating countries include libya, nigeria, iraq, iran, ecuador, the uae, but also, the saudis themselves. saudi production is believed to have risen for two months in a row when they're supposed to be the glue that holds this deal together then of course you have the russians, they said this weekend that they've executed their cuts but some are still doubtful of that look, if these countries can't stick to the preliminary deal the question of whether or not we'll see deeper cuts becomes a little bit easier to answer. to bring it all back to pricing, this coordinated effort to bring production down only supported the markets so much. prices are closer to $50 but they're not there yet. can they get there if everything stays the same, possible and that's because the biggest wild card right now is what's happening here in the united states producers have been taking advantage of those higher prices, relatively higher, and the saudis and russians can't do much about it. so that's really what you have to watch

the data that comes out of the united states. >> hmm so even the saudis cheat >> even the saudis cheat >> it's not going to work then >> joining us now with more, director of global energy at eurasia group, greg, good morning. >> good morning. >> even the saudis cheat >> the latest self-reported number they had was 10.07, which is just a tad above their target i'm not terribly shocked by it they normally go up a lot more than they have this year over the summer because they burn a lot of crude directly for power generation. but, you know, i think the expectation is then that they were going to stay below their target, and offset some of the other cheaters and that's why it's gotten a lot of notice. >> what's your target? >> as far as prices? >> yeah. >> i think that we, the partial recovery that we've had off the lows is probably going to stick. there was no reason we needed to go down below $40 a barrel but there's also not a solid reason that we're going to climb out of the upper 40s soon. you know, i think that the -- we're not going to see a big

headline out of this opec monitoring meeting today, saudis have already telegraphed that. and i think that reflects the dillonished set of expectations on their part. they know they can't jump-start it back to $60 a barrel, not even $55 without getting additional u.s. supply acceleration heading into next year so, they're kind of accepting that, and focusing on getting the inventory down in the second half >> greg, they promised us that they were going to keep this cut going through the first quarter of next year do you think that's possible if the cheating has started now >> well, opec compliance has been good by historical standards but it's been my expectation that over time it would goin break down. you know, ecuador is a drop in the bucket iraq has been very gradually increasing their cheating. so i don't think that's a collapse by historical standards. you know i still think we're going to have enough kept off the market by the saudis and other leading members of opec that you know, we'll see inventory draws in the second half of the year and it will stay in place through march.

but increasing cheating as time goes on is a very normal historical pattern >> is there any chance -- well, is there any chance you're wrong? is there any chance that everybody's wrong, but, what would you look for for it to go the opposite direction >> as far as deeper cuts >> yeah. >> see, i don't think that they're going to head in that direction. you know, most of the people talking about deeper cuts have been western analysts, not members of opec. and i think it's very telling that you have not seen the saudi minister speak publicly about that at all. and i think that's really, you know, they look at the short cycle responsiveness of u.s. shale production, and they realize that if they tried to jump-start prices they would get a short-term benefit, you know, from increased prices over the next six months or so. but they would get a real head of steam behind u.s. production growth heading into next year. more loss of market share. and eventually prices coming

down toward the same equilibrium and making it even harder to unwind the cuts eentzly, which is already looking problematic >> greg, the russians, 300,000 barrels a day. that kind of is a drop in the bucket compared to what the rest of the cartel is supposed to do and this is a little bit of an honor system here. do you believe them that they're complying? >> i don't think they're complying 100% it is suspicious that russian export levels have not declined as much as their claimed production levels. we don't know for certain. but i do think that russian compliance will probably weaken slightly in the second half of the year they usually have a seasonal dip in the winter and spring, due to logistical issues. and so probably comes up a little bit in the second half. but i think they've complied more than a lot of skeptics thought at the beginning of the year >> okay, greg, thank you appreciate it. >> thank you >> all right coming up, genomics company helix opening up an online store to help you with your health, fitness, and lifestyle decisions. think of it as an app store for

your genes the company's ceo joins meg tirrell. that's what we need, andrew. we'll combine all of our genetic information from helix with webb [ muted md frank keating joins us toe top tofhe hour to talk health care reform "squawk box" will be right back.

he lix, the personal genomeics company is launching an online market place for dna powered products that offer insights into your health, fitness, nutrition, entertainment, family, and ancestry, and meg tirrell joins us with two special guests i'm hoping you're going to be the guinea pig and go through the entire thing for us. >> i have. yeah i've got my full genome sequence and i've started going through this process as well >> have you memorized it that would take awhile you have pi -- >> i can only go about six anyway, today most people might think about genome sequencing as something that gets done in a doctor's office but a growing number of consumers genetics companies are looking to change that and one of those companies is start-up helix. and it's got a secret weapon it

was started as the world's largest maker of genome sequencing equipment and they're opening up the first online consumer marketplace for dna powered products you can think of it like an app store offering products based on your genes they're working with a series of consumer focused partners to provide information about diet, fitness, ancestry, even what kind of wines you like all based on your dna. and joining us now to tell us more, executive chairman of helix jay flatly and helix ceo robert thursdayson thanks for being here this morning. robert, tell us about the business model here. you guys are basically charging $80 to sequence people's genomes and then you can buy these products on top of it. >> yeah, so we're essentially creating a way to do the up front sequencing we're subsidizing that to get people into the marketplace. the app store is not dissimilar to apple's app store in that the partners decide what they want the product prices to be and we do a revenue share on those products that they're offering in the marketplace >> $80 seems really low.

i mean, how much are you really subsidizing this we talked for so long about how they're driving down the cost of sequencing but it's not at $80 a person yet. >> it's not. our sequencing the x-ome plus. so we're not doing the entire genome we will get there at some point in time. but as prices have continued to come down we thought we really could put this business model into the marketplace now, subsidize the initial purchase and make the revenue share over time with repeated access the way that helix -- >> what did you say? x-ome? >> the x-ome we call it the x-ome plus. so it's all of the genes in the genome, 22,000 genes, plus about 400,000 extra places in the genome that are known to be important. >> not the function is still unknown. right? >> well, we're barely understanding -- >> all of the human genome >> exactly so what are the most useful things that we already know

about that you would do this for that it would give you some insights into? and do you think we're at 2% of useful information what are we at in terms of if you had to estimate the actual intellectual knowledge that we have about the entire genome >> we know a lot about the genome in terms of where we're ultimately going to get 10 or 20 years from now -- >> 2%? >> frob ply not 2% >> so what's the most useful thing. can i find out if i'm prone to being an alcoholic can i find out if i -- i would imagine that people have hr2 genes, people that have specific anomalies that predispose you to a horrific disease that i'd like to know. other than that what can you tell me that i -- >> well i think it's certainly in the health space, you know, the analogy i like to give is that essentially because of how much clinical research has been done, if you were discovering america in the health category, we might be as far as the mississippi. a lot of debate about how far

along we are but in all the other categories like fitness -- >> -- or maybe -- >> in fitness and nutrition we're certainly much, much earlier. but there are some really important things like, part of our ad campaign that we're launching today around crack your code is an areas like lactose intolerance where 7 in 10 people essentially develop lactose intolerance during their lifetime. and so knowing that information and then using it every day is potentially porf one of the most important things to realize is we're at the exponential part of the curve now with the technology.

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yeah, and i can watch thee bgame with directv now.? oh, sorry, most broadcast and sports channels aren't included. and you can only stream on two devices at once. this is fun, we're having fun.

yeah, we are. no, you're not jimmy. don't let directv now limit your entertainment. xfinity gives you more to stream to more screens. earnings season kicks into high gear, nearly 40% of s&p 500 companies out with results this week we're going to get you set for the flood of reports washington watched the democrats unveil a new economic agenda, as president trump raises the stakes for health care reform. plus lyft gets in the fast line the uber rival set to build its own driverless car technology. the company's chief strategy officers joins us on set as the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york, this is "squawk box.

good morning, and welcome back to "squawk box" here on cnbc, live from the nasdaq marketsite in times square i'm joe kernen along with andrew ross sorkin, and melissa lee. becky is off today the futures right now have been i'm afraid to say it under water now with melissa here. she can't swim >> no causality. >> there's -- huh? the futures are under water, drowning, down not much. almost three points on the s&p, 28 on the dow jones. and the nasdaq down about 9. big week for earnings. almost 200 s&p 500, 180 of them. there's crude. about 95 this morning. >> sink and swimming and it was shark week last week i don't know what you would have done with the water then >> well, nobody -- i mean i think that i would have just as

likely, you know, likelihood of me surviving shark week in with the sharks is just as good as somebody who could swim. you probably won't yut swim the shark. >> it won't matter if there's a shark nado anyway. >> you could be on land. the shark could come in. >> let's get you caught up by the way, melissa lee can't swim >> stop it -- >> if you're just arriving with the program right now. that's the big breaking news >> remind me to never share with you guys again last bit of sharing. >> we have a bit of news this morning. big transactions, webmd being acquired by kkr's internet brands for $66.56 per share. transaction valued at $2.8 billion. shares of hasbro under a bit of pressure the toymaker beat on the top and bottom lines but revenue in several brand categories fell well below estimates shares of mattel also lower as a result this morning. that company set to report on thursday one of uber's biggest rivals in asia reportedly getting a new

chunk of cash. grab says it expects to raise $2 billion in new funding from existing investors, softbank and didi the singapore based company's valuation will be above $6 billion. now democratic leaders unveiling a new economic platform called a better deal and takes aim at big business and drug companies, in an op-ed house minority leader nancy pelosi writing the plan will create jobs, crack down on monopolies and big corporate mergers and lower the cost of prescription drugs among the other proposals, a trust buster or person focused solely on scrutinizing enforcement authorities. an independent agency to take on prescription drug prices it will be able to slap fines and drugmakers and jack up prices the platform would also give businesses tax breaks for training workers on the job and

promote apprenticeship program and president trump's adviser and son-in-law jared kushner denying collusion of any foreign governments. kushner will appear before the senate intelligence committee in a closed-door meeting today. kayla tausche joins us with more from washington this morning kayla? >> andrew, ahead of that interview the president's son-in-law releasing 11 pages detailing four interactions with russian officials during the campaign, and before inauguration and included the june 2016 meeting arranged by don jr. from which kushner says he excused himself early. it includes one meeting that his spokesperson previously denied and he asked reuters for details on another meeting it reported that he can't recall but it closes by saying, quote, i did not collude, nor know of anyone else in the campaign who colluded with any foreign government i have had no improper contacts, i've not relied on russian funds to finance my business activities in the private sector hopefully this puts these matters to rest. but this commentary comes as the house will vote this week on new sanctions bills.

one targeting russia for election meddling. the package is expected to pass nearly unanimously as it did in the senate, but the bill allows congress to reject white house actions to loosen sanctions, leading the president to tweet yesterday that republicans, quote, do very little to protect their president. this has raised questions over whether the president will sign it when it arrives on his desk press secretary sarah huckabee sanders says the white house supports the legislation where it is now, but incoming communications director anthony scaramucci said the president will decide on thebill shortly and saying that the president still has doubts about whether russia did, in fact, meddle in the election that is going to come to a head in mid week this week, but of course, we may see some developments on health care before then. but joe, in all, a very busy week yet again in washington >> anything's busy in july i could just do nothing in july. less than i do now, kayla. you know what i mean it's hard to get these guys to tell them, you know, you really

got to bear down here and it's nice outside and it's -- you know, how quick does the summer go is it -- even to you, is this not crazy and it's been raining too much, has it not >> it seems to go quicker every year i hear that's what happens with age. but this week in particular, joe, is important for congress, because it's the last week that both chambers are in session the senate was expected to stay an additional two weeks to get health care done but if they hold this vote on -- as early as tuesday is what we're hearing, if they hold this vote and it goes one way or another, then perhaps they will, in fact, leave at the previously scheduled time at the end of this week. so, they really have four or five days here to actually get anything done before recess. >> i mean that was just a generic comment. >> i love kayla because she just burns like fire -- >> what did we decide? you are a millennial or you're not? >> she is. >> i'm a reagan millennial

which means that i'm a millennial who remembers life before the internet. that's what i think the dividing line has become. i remember when i had to get off the internet because my parents had to make a phone call whereas there is a large chunk of younger millennials who have never known life like that >> yes yeah >> can i ask one of the questions, kayla do you know what a modem is? >> yes, of course. >> no, because -- i've met people now who say a modem, they don't even know what a modem is plp >> well she remembers the dialup >> of course of course. i do the sound effects >> -- the jared kushner situation, which is to say some of the documents are getting released but this is going to be a closed door session so how much, anthony scaramucci said he doesn't want to see any more leaks. how much are we going to hear? >> depends how much the lawmakers in that meeting want to say sometimes when they feel like something especially noteworthy has been disclosed, if it's not

classified, they'll come right out and tell the report es that are standing outside the room. but nbc news is reporting that kushner will not be under oath during this meeting. >> what does that mean >> it will be taking place in a skiff, which is a room where classified information is disclosed. i mean i think it's just a formality here traditionally, during these closed door meeting, an oath is not taken. it's more of a public show of -- of trustworthiness and of commitment to the facts but in this particular instance i think it's more of a formality. or at least that's how nbc news is interpreting it >> okay. all right, kayla you're going to live forever never have to worry about anything you're immortal. >> that doesn't sound good either, joe. >> how about choosing to live as long as you would like that's -- >> yes >> that's the goal >> we can agree on that. >> 400, 500? let's just wait until 1945 -- or

2045 -- >> methuselah. >> 2045, that's where the singularity, between 2040, 2045. president trump will meet with a group of people, the white house is calling the victims of obamacare today and later he will make a statement on health care for more on health care reform let's bring in former oklahoma governor frank keating this is a topic we keep philosophically looking at governor and i think it's important to do that because, things change public opinion changes i'm wondering whether you think that since the passage of obamacare that the notion of an entitlement in terms of having it be a birth right, having health care be a birth right, has not been adopted by a majority of the population at this point because then it's going to be tough to repeal that well joe i think you made an excellent point. i think there is a lot of truth to that. and you see my fellow republican

governors going to the left. you see democrat governors continuing lurching to the left. when i moved back home with my wife last year here in oklahoma i became a trustee of the oklahoma council for public affairs, a conservative think tank, and i wondered, looking at the numbers, where did all the money go i never had the kind of crisis when i was governor. oklahoma over the last number of years has increased its per capita personal income by 70%. but when we looked at the numbers, we saw that now one out of four people in this state is on medicaid. 72% of children up tofive year old have had some experience with medicaid. 25% are on medicaid. i mean, it's like what in the world has occurred what has occurred was obamacare putting able-bodied people on medicaid medicaid as you know, joe, was never intended to be for anything but the frail, elderly, health care, nursing homes, mentally and physically deficient, but for us to have

such a meteoric increase in medicaid enrollment, even though oklahoma didn't expand, this is as a result of obamacare, the budget is in crisis and i would say most states are not dissimilar because $6.8 billion budget that we had, plus or minus, over a fourth of that now is medicaid. when i left office it wasn't even a fact we discussed around the table. so that's the problem the 900 pound gorilla in the room is the huge expansion of medicaid to the able bodied, and frequently young people >> right i wonder what the prospects for some type of reform of that is and there's a case to be made because we know that doctors are exiting that, you know, that arena, and maybe there's a better way to cover the same people that we're talking about, not throw them out without any health care coverage, but maybe

medicaid isn't the panacea for anyone who doesn't have insurance. but the cat's out of the bag, i'm afraid >> well, you know, joe, unfortunately, today, the able-bodied are paid more in terms of coverage costs than the frail, elderly -- i mean, they are getting more of the money. doctors are leaving medicaid services why? because there's a big, long line of people now, many of them able bodied and what the doctors want to do is treat the frail, elderly, mentally and physically impaired those people that traditionally were to be on medicaid but it's killing state budgets and we didn't even expand so this is -- this has to be a part of the conversation you can talk about health savings accounts, block granting, you can talk about discretion to governors but none of us want to soil our own mess. we want to take care of our people but to have these incredible mandates for people who are able bodied, and not be able to take care of themselves, that's just

not right. >> well, do you think that the -- what they're talking about right now, what they're going to vote on tomorrow, and some respect does it -- does it solve that problem with the explosion of medicaid and what would happen over the next ten years? i mean if we let it go without doing anything, it's going to become a larger and larger percentage of our health care bill, right? >> well, no, as i said it's going to cripple state budgets i mean how do you spend in a state like -- we're a middle sized state. whether you're a large state or a small state, how do you spend a fourth, a third, a half of your budget, for health care expenses, who's going to pay for the roads? how are you going pay for public safety, prison, how are you going to take care of people that truly are in need as opposed to able bodied now what's coming out tomorrow, or next week, or whenever, who knows. but a block grant approach does make sense adjusted for inflation, where the government says, okay,

here's states. you pick up whatever part of this medicaid budget you should pick up based upon your own needs. and use the discretion that you care, and you really are very much focused on to take care of your public. don't do it in a cookie cutter way from sea to shining sea. that would probably work but i'm not sure, certainly the democrats wouldn't go for that and will our fellow republicans who expanded medicaid, they just want the money >> right >> tough, governor we appreciate your time today. and those are some points that need to be taken into account with all this. then we've got to decide what it is as a society that where is the population right now for what needs to be done? and i don't know where we finally end up anyway, thank you. i appreciate it. >> thanks, joe appreciate it. >> it is the heaviest week of earnings season. one report to watch alphabet those numbers will come after the bell today joining us now colin sebastian senior research analyst covering internet and interactive entertainment at robert b.

baird. colin great to have you with us. >> good morning. >> what are you expecting out of -- let's say out of alphabet? >> well, certainly the core search business is the majority of revenues. and we think that is very healthy growing double digits. but youtube is also important growing even faster but certainly there have been concerns from some advertisers around content so we're looking at any metrics around youtube and certainly anything that management is willing to say around emerging businesses such as google maps, or google cloud platform, certainly android is important. but from our perspective those are the key businesses and metrics. >> in terms of the eu fine that came out i believe june 27th or so, alphabetis going to take the full impact of that fine in this quarter what else can we expect in terms of any sort of commentary surrounding environments, the environment doing business in europe right now well they may not so much specifically but the bigger i think that we have is whether

google might need or choose to make changes to the search engine that could affect eithe the user experience or monetization part of the irony of this being that within shopping, which is the area of focus of the european union, that amazon clearly is bigger competitor to google and shifts in technology such as alexa, voice search, perhaps present more risk to google so anything they say around those subjects would be interesting relative to the investigation. >> it's going to be a very busy week for you under your coverage universe you've got facebook as well as amazon we have netflix last week so in terms of f.a.n.g. we'll get the full gamut of f.a.n.g. earnings by the end of this week how important are these reports going to be in your view in terms of investor sentiment and the nasdaq rally >> well i think these stocks are outperformed obviously year-to-date for the last several years. for a good reason. not necessarily based on very near-term trends so it's a good temperature check

as to how growth is progressing through the middle of the year but it's fundamentally the changes that are benefiting these companies, the gravitational pull towards these platforms, we don't expect to hear any change to those fundamental trends this week >> all right, colin thank you. >> thank you >> okay, still ahead this morning. the floodgates are open and the earnings are starting to roll in we're going to dig through hasbro's numbers next. plus gotta catch 'em all or maybe not. why thousands of pokemon go players got a big refund this week and lyft getting into uber's lane we're going to talk to a top lyft executive you're watching "squawk box" right here on cnbc (baby crying) (slow jazz music) ♪ fly me to the moon

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welcome back to "squawk box. blue apron getting some love this morning from wall street. after a rough week at least nine firms are initiating coverage on the stock today with an upbeat ratings

none of the analysts rate the stock. anything less than market perform and many are calling it a buy. >> another stock to watch has droe the toymaker under pressure. courtney regan joins us from d.c. with the very latest. >> good morning to you that's right some celebration in toyland this morning. hasbro beating analyst estimates by six cents on the bottom line, topping revenue expectations ever so slightly with 11% sails growth across the board. but the franchise brand sales are the standouts. over 21% and that's the key category for the toymaker the franchise brands are the ones hasbro has the most ownership over they include monopoly, my little pony, nerve, play-doh and transformers gaming revenue grew 6% strength from both new and traditional games like dunck dungeons and ds if you pull out just asia pacific that revenue growth did outpace u.s. and canada.

the cfo noted some economic softness in brazil, and the uk but brian goldner points to strong consumer momentum going in to the important second half of the year. hasbro shares as you mentioned melissa are lower despite a strong quarter remember the stock is up 40% this year. so jefferies analyst has a warning for short-term hasbro investors. she says any strength here may be an optimal exit because of historical negative trading into the second half of the year. she still says for a longer-term investors this quarter's results validate the robust demand for hasbro brands. hasbro holding its investor day next week. joe? >> all right, courtney thank you. let's get back to the broader markets. mike santoli is here new column on cnbc.com is titled two big forces could thwart this clockwork stock market rally come august. mike >> yeah. so that's -- that head line has

nice friendly illustration in the photo which i think is appropriate. yes there are two big things that i think we have to be mindful of as we get toward august this market as we know kind of ignored a lot of good excuses to pull back. you haven't had a 5% pullback in more than a year not a 3% pullback in something like nine months and it could very well be that these are two more things the market will ignore supported by decent earnings as we all know, good credit market. but those two things are seasonality and sentiment. so seasonal trends start to turn a little bit hostile to the market come late july, really through september. now, of course, february was supposed to be bad based on the almanac and so was may this market kind of basically went right through them without really a hiccup. so it's not clear that seasonal forces are going to be enough. another thing, though, is elevated settlement -- sentiment among both professional investors and to a lesser degree retail investors you're coming up to a zone where bullish strategists are saying this is the kind of formula for a pause. you're looking at option trading

not just the vix under ten, basically everybody seeming to have low cash levels and are tired of fighting this market. those two things are out there as something that could be an excuse for the market to stall out a little bit again, maybe we're going to ignore these things as well. two things i would also point out in addition is the fact that europe is down more than 4% off the highs. everybody loved european stocks coming in and that started to get a little bit ragged. data today that wasn't as friendly finally, earnings are not really causing pops in stocks the stocks are not reacting in a particularly great way to earnings but that can change with the heaviest week of earnings this week >> the change in the dollar, and the change in the euro, that was really big factor. and that's sort of that come off of the highs, right, for european stocks? so the dollar is the second half that could be an offsetting factor to all these -- >> which is probably why the u.s. market is okay. the multinationals are good with it as long as it doesn't create a lot of disturbances i think in the credit markets, which has been the lead dog in this entire rally. they've been so firm financial conditions have been so loose. >> okay.

andrew's ready to get on a train, which is a bad sign >> bad sign. >> yeah. >> trends reversing. >> capitulation time >> yeah. >> just hold on -- i was going to say, you said two things. i would -- i would either change it to three things, or a much more important one thing with your column -- >> -- valuable >> yeah. >> thank you, sir. >> all right >> coming up, health care reform, the russia probe and a new democratic platform. but there's one more thing you should be watching in washington, trade. a former deputy u.s. trade representative robert holliman will join us next. check out the futures. we are looking lower across the board though we've come off the lows here. dow looking to lose about 12 at the open, s&p to open fractionally lower "squawk box" about be right back ♪

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good morning welcome back to "squawk box" right here on cnbc.

we're live at the nasdaq marketsite in times square it looks like the rain has kind of stopped a little. it was terrible this morning among the stories front and center at this hour, caterpillar upgraded to outperform from market perform the analyst says the call based on anticipation about a new five year plan from caterpillar as well as general strength in the industrial sector. and vf corp posted better than expected earnings. citing strength in its largest brands and neuroderm is being bought by mitsubishi for $1.1 billion in cash. neuroderm is a drug company based in israel has a parkinson's disease treatment that's begun clinical trials in the u.s. and europe. a pokemon go event went very, very wrong this weekend and fans are not happy thousands of people arrived in chicago to catch an extremely rare pokemon but the game's first live event had server and networking issues. people waited in line for hours

in the rain to get inside. when the servers crashed, made the game unplayable for most of the day. the unhappy players booed the ceo when he took the stage, who later apologized, offered refunds and pokemon coins. nyontik and nintendo developed the pokemon go app together. shares down more than 2.5% this morning. >> cooled down $1,000. not that much, though. >> in yep? >> all right >> in yen. >> 37,000. down >> yeah. >> all right the trump administration unveiling plans for nasa with less than a month to go before renegotiating. joining us ambassador robert holleyman. ambassador, can they walk this tight rope, do you think in terms of -- could anyone walk it and are these the -- is this the administration that could do it, which would be a positive for

the u.s., and for mexico and canada >> the good news is that u.s., canada and mexico all degree that nafta should be renegotiated on the positive side 21 months ago, we completed a renegotiation of nafta, in the obama administration so all of major issues that have been floated to be considered in this new negotiation are ones that have been considered before there's certainly some changes in what the trums proposes to do but in large part what the administration has announced, is substantially similar to what we concluded 21 months ago. >> no kidding. do you know the people that are -- the key players on the u.s. side that are involved. do you have a high degree of confidence in these individuals? >> we've got some great leaders in this. i think beginning with ambassador bob whitehighser, the u.s. trade representative who is

an old hand knowing how to negotiate trade agreements, at a career level john melle who is the chief career negotiator for the u.s. has been at usgr for a couple of decades. knows these issues inside and out. and i think they also have a proven track record with their canadian and mexican negotiators all of which will help them in the negotiation. it doesn't mean you get to a successful conclusion. but it helps at the outfit >> so rhetoric aside, what has nafta done for us, and where the real -- has there been real damage in how did that come about? >> well, nafta has generated about a trillion dollars of trade each year between the u.s., canada and mexico. it is the largest bloc of u.s. trade, a third of all of our exports are in the nafta region.

i think there have been many shortcomings in nafta that will be readdressed in the new negotiation. for example, it never included enforceable environment and labor protection it doesn't have provisions around things like the digital economy that are critical for u.s. competitiveness we need to address the challenge of state owned enterprises, and how there are rules to ensure that when state owned enterprises exist, that they compete on fair commercial terms. there are a variety of things that all three countries agreed need to be changed but what we have to be careful about is to ensure that in making improvements, we don't jettison the very real positive economic impact that nafta has brought to all three nations >> there's always the law of unintended consequences. and who knows, it's -- sometimes you need to be pretty smart to think ahead to how things are, you know, what you don't think is going to happen, happens because -- is there any way that

it's not a zero sum game i mean, will we win, and mexico loses? is that -- are we entering into this with mexico thinking that that we somehow got the short end of the stick the u.s. and we're going to try to rectify that with the new nafta? >> well, politically it's impossible to have anything that's a final conclusion that all three nations and all three leaders can't get behind probably the hardest thing and what the biggest difference is in the trump proposal is that it begins by looking at the impact of trade deficit, which is a really new phenomenon in terms of how we look at trade agreements we've got about a $55 billion a year trade deficit with mexico the trump administration has said they want to get that down, or eliminate it. that goal is in and of itself not a problem. but what is a problem is looking at the trade deficit as the

question of whether or not a trade agreement is successful or not. deficits matter when countries have barriers to the import of u.s. products. but there are many things in the supply chain in north america that we get from both canada and particularly mexico, and the deficit should not be the driving factor on whether or not this is a successful agreement >> like so many things that politicize now we don't even know whether trade deficits are good or bad. it depends on which said of the aisle you're on. if we've got -- we're a very wealthy nation, and we are fortunate enough, you know, this is politically incorrect, but fortunate enough to consume more than some other nations, is there any way that we're not going to import more than what we export? if we're a rich nation i mean isn't that part of -- >> if we're a rich nation and we're a large nation it just depends on what the source of the barrier is

look the example i always like to use is around coffee beans. the u.s. has an enormous trade deficit in coffee beans. on the other hand, we have a huge coffee centric culture so the deficit we have in coffee beans doesn't mean that we have a problem as a country in fact it's enabling a lot of economic activity. so, too, when we look at other countries, if there are deficits like ones we have with china, where in part u.s. companies restrict you from selling in that market, that is bad but if it's a structural deficit like the coffee bean example then it's not necessarily bad. in fact it could be a positive for the u.s. economy >> so looking at donald trump right now, is he the -- the -- the fair -- the anti-fair trade bogeyman if people thought he was, both during the campaign, or is he turning into more pragmatic person what do you think? and you were -- you're not

necessarily a -- you're not a republican but just looking at him, what do you think? >> well i think it's a mixed picture. the negotiating objectives the u.s. released for nafta renegotiation are largely ones that were accommodated, accomplished, in the obama administration under tpp what's different is this focus on trade deficits, what the difference is, trying to protect the ability of the u.s. to act unilaterally in the context of nafta. so there are a couple of big wild cards in those that remain to be seen, how they play out. so it may be tweaks, adjustments on what's been done before, or it could be things that essentially upset the balance in north america. what we know is that nafta has been successful. it needs to be improved. but we cannot jettison the nafta agreement. it needs to be brought up to date, and be a modern trade

agreement, to benefit all three of our countries it needs to be america first, which is north america first, not united states of america alone. >> all right, ambassador thank you. good title you think i got a shot at malta? you think there's -- what do i -- >> i see it in your future >> but it wouldn't be that hard, right? it's not really that big it's in the mediterranean. i mean, we just have a few dinners. what would it take >> i see it in your future tell me when you get there >> i'm not asking for italy. scaramucci wanted italy? >> reportedly. >> i just want malta you been to malta? really nice. anyway -- >> pay for all the big parties >> that's the problem. the parties wouldn't be that great. >> you're on the hook. >> a lot of byob >> cheese wiz -- bring your own stuff. is that not how ambassadors -- you've been to malta >> nope. got to put it on my list

>> maltese falcon, bogey >> all right arconic is out with earnings the stock is up 5% the manufacturing company says that they have some tough questions after the deadly grenfell tower fire in london. let's get to morgan brennan back at headquarters. >> melissa, so arconic reporting earnings of 32 cents adjusted per share. that is a six cent beat on better than expected revenue of $3.3 billion the company also raising full year guidance to $1.15 to $1.20. that is sflietly above consensus. and as the company struggles to respond to the scrutiny it's faced for its combustible grenfell tower, interim ceo david hess says we extend our deepest sympathies to those who have lost so much and everyone at arconic continues to keep them in our thoughts and we remain committed to supporting the investigations that are seeking an outcome that makes it unlikely that a similar tragedy will ever occur. now, arconic actually dedicating entire large paragraph to

explaining the supply chain and how those panels ended up on grenfell also adding that as it relates to arconic's position in supply chain we believe we've been compliant in the sale of our prurkt nonetheless the company is facing an investor lawsuit alleging deception that the use of the panels was not disclosed before the fire. this is all going to come up on the earnings call which starts at 10:00 a.m. eastern. should be closely watched, because of its position with those panels in grenfell but also because it's been accused of being one of its components being the reason that boeing 737 max was temporarily grounded days before that plane's commercial debut and also don't forget, we have an interim ceo there because former ceo claude kleinfeld abruptly stepped down in the midst of what had been a rather nasty proxy fight with top shareholder elliott management so shares are up 6.5% right now. premarket. but this has been a name that's gone through a lot in recent

months guys, back over to you >> thank you very much morgan brennan. >> okay coming up next when we return lyft is going it alone. the ride sharing company will begin to open its own driveless car technology despite partnerships with waymo and general motors the chief strategy officer is going to join us right after the break. what's going on here? um...i'm babysitting. that'll be $50 bucks. you said $30. yeah, well it was $30 before my fees, like the pizza-ordering fee and the dog-sitting fee... and the rummage through your closet fee. who is she, verizon? are those my heels? yeah! yeah, we're the same size...in shoes. with t-mobile taxes and fees are already included, so you get four lines of unlimited for just $40 bucks each.

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welcome back to "squawk box. lyft finally could hit the road with self-driving technology the ride sharing company saying it's going beyond partnership to partnering with the likes of general motors and alphabet's waymo to develop driverless cars it comes as its chief rival uber looks to recover from controversies. raj kapoor is the chief strategy officer at lyft. good morning to you. >> good morning. >> so this is the thing that it can't figure out you guys appeared that you were going with this sort of partnership route. >> yes >> uber seemed like they were going in this other, you know, do it yourself kind of thing why do you need to do it yourself >> so, we're still going the partnership route. what we're doing is extending a lot of the capabilities that we've already put into play. this is a really unique time in

the industry where what we noticed is the auto industry and tech industry are more open than ever about collaboration people are realizing that self-driving is the future but it's expensive it's really hard to do and we've been able now to amass significant amount of talent, number one, really critical. and two, we also know what to do with our data. we have about a million rides a day. and that data can use to tune algorithms faster. so we figured rather than sitting on the side lines, let's get in there, create this technology and it's an opportunity to bring it back for our partners we're looking to create an open environment with the industry to move this forward. >> long-term, though, the one thing that i've always thought and this is true of uber and you, is that this is going to put you at odds with your -- well not employees but your drivers. that when this -- if, in fact, all of this works the way it's supposed to, the argument that this is creating employment all around the country, all around the world, you're effectively going to put them out of business with driverless cars.

where's -- i thought potentially lyft could have taken another tack on this whole situation and said you know what, there will be teams of people that are like the kind of people who like own the trucks, that are driverless, but they would own them. and so you see what i'm saying >> yes >> rather than you own them. or partner >> first of all, we will always need drivers >> okay. >> we are at 0.4 of one percent of passenger miles driven in the united states on ride sharing. studies show that with av and ev we're going to go to 80% to 95% so the number of drivers that we need just to satisfy our demand as this technology rolls out, and the rollout is going to be slow, because it takes a lot of time to make sure it works in all the conditions that are there, there's going to be more and more drivers coming on board for the foreseeable future number one and two there are new opportunities that are going to be created for drivers we're seeing a surge in demand for health care elderly related assistance services that are there that require drivers you'll see whole new ways of transporting you'll have cafe services in cars as well

>> do you think you're going to own the cars >> i think dlz going to be a variety of ways to do that there's going to be leasing option that's there. it's about bringing partners on that own the cars, as well that's why we have these partnerships it's going to be a hybrid network. there's going to be drivers, third party cars, lyft vehicles, as well. >> realistically right behind me, i'm seeing cabs on the street when will those be autonomous? new york city right here >> we announced in a couple months we're going to be rolling out the first autonomous vehicle in boston with one of our partners so that process is already starting to happen as to when we can handle this is a pretty challenging environment. you look outside it's raining and the streets are pretty busy in new york. it will be some time it will be some years before the algorithms are trained and everyone's confident they can do that >> how will your economics change you're saying you still need drivers, you might even own cars so you might go from this asset light model to this asset heavier model. it seems like, i mean, why invest in this technology if you're still going to require drivers there, unless you're

going to pay them less in some way, and why would you own the vehicle? >> yeah, i don't think drivers are going to be paid less in any case >> what's the advantage to having driverless technology if you're always going to have drivers? >> there's a couple reasons that driverless technology makes sense. number one it is safer number two, it does cost less in the long run as the cost of the technology and the car goes down, it will result in a lower cost to the consumer and enable that shift that we see in transportation as a service. >> right but when you think about the transportation as a service, what i'm trying to understand, is your strategy -- do you think your strategy is ultimately different than uber's in terms of what they're doing? i mean they're not partnering with anybody yet but you weren't going down this road either. do you think that both of you will ultimately be hybrids >> i can't comment on where uber is going with their strategy we believe that the only way to move this forward is to work very closely with partners as well as taking it deeper look into creating those technologies and then sharing it out there. >> but you could see a day where you own a huge fleet of

vehicles >> i don't think ownership is necessarily going to be the way we've looked at it in the past there could be all sorts of leasing. it could be bringing in third party financiers into the equation as well because they see an asset that can generate cash flows >> what's to stop tesla from just turning on the stwich and saying you know what we are perhaps in the lead in terms of driverless or autonomous technology, because they probably have the most miles driven, under these conditions and they could just say we're going to start this service. because that's always been part of the bull case for the tesla bulls that they are sort of -- they could be that transportation network of the future, not just an automobile manufacturer >> so there are a couple things there. first of all, we respect tesla's capabilities, and what they can do with their sensors. we think today, to roll out a fully self-driving vehicle requires a multitude of sensors. to be things like lidar, laser based radar, vision as well which is what the tesla vehicles have and radar so you do need a full complement with today's technology. number one number two is that today in the

fear seeable future what the consumer cares about the most is having a reliable experience, in addition to safety and that means that when i open up the app, i know that there's a car there in a couple minutes. that kind of ubiquity you need to have human drivers. have hum drivers. we have over 700,000 drivers now. that's something that any other company would have to replicate instantly. >> the right to driverless drones flying because of traffic. where why can't you, as the science guy, can't we -- what are you going to do about traffic? i don't care if i'm in a lift in a driverless car and we're sitting in traffic, can't we go above the traffic? >> that could be possible in the future. >> skip to all of this other stuff wasting all of this time trying get to writs going to be outdat o outdated. >> what's the chance google turns this on. not only are they building the

cars, technology, they have my e-mail, they have the app, they're already on my phone. what happen ifs they decide they're getting into this business. >> we can't comment on what other companies are doing but having this driver network is an important network and we're partners with folks like google. the industry needs each other in order to make this happen. >> google partners with apple before they developed their own phone though but you probably had those conversations. last question on uber, what does all of this mean all the comotion and controversy for your business in the last two months >> we have done one thing and that is that really foe cousin on the drivers and consumers hasn't changed much. >> have you piked up a number of new customers? >> what we have noticed on our o metrics is that things have improved and significantly increased for us over this time. the last couple of months have

shown the things that we have been saying consistently in the past is values do matter for the community. >> better for you to go go public first >> i can't comment on those speculations. >> appreciate it thanks for coming in. >> elon musk wants to go underground. why not go -- go up. above ground. >> it's happening everywhere. >> we'll be right back drones with jim cramer. i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital.

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>> he's going after his own guy. >> that's the most interesting thing. >> sort of a loss of stability here i can't believe i'm the first to say this. >> i'm shocked there's a loss of civility in politics jim cramer joins us now. 180 s&ps companies this week. jim what will give us the best queue on the even actual break out that equities take do you think? >> it might be tonight with alphabet because i do think that i know, they report on monday, usually midweek.

if you could get a fang stock that does well you could say okay listen, netflix was good and now the g which of course is alphabet looks good but let's not forget the wednesday meeting with the fed if they say we're going to sell our bonds aggressively maybe that changes the yield curve which would be positive so a lot of people think this is going to be a very bad week i look at the earnings and think no a lot of companies report that are internationally based. >> all right, jim. we'll see you. tobt don't miss jim krams er interview with the ceo of hasboro at 6:00 p.m. eastern time

>> what's your town in connecticut? what's your drive every day. >> mansion. >> i'm glad you're even able to answer that question make sure you join us tomorrow squawk on the street begins right now. ♪ good mobd morning. welcome to squawk on the street. with jim cramer at the new york stock exchange quite the week headed our way. the busiest week of earnings season a fed meeting. futures are soft europe is mixed on down beat pmis and the ten year at the 224. alphabet after the bell what investors should watch for the new democratic economi