"squawk box" begins right now. live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew is off today. our guest host for the hour is peter boockvar he's a cnbc contributor. great to see you. >> good to see you. >> we're going to talk about what's been happening with the markets. let's take a check on the u.s. equity futures last week was a mixed run. dow ended the week down by half a percentage point the nasdaq did well. up last week dow up by 123 points nasdaq up by 27 points and the s&p up by another 9 points it all comes as the journal is

laying out its lead story as some concerns about global growth things may be starting to slow for a bit, especiall the eurozone when you look at some of these place it was up by 1 1/3 percentage point. in the hang seng things are up if you look at what's happening, green arrows across the board with the biggest gainer across the three major averages the ftse being up by .7 of a percent. italy and spain continuing after some of the big wobbles and rebuilding through the week. stocks in spain are up by 1.5% stocks in italy up by 1/3 of a percentage point treasury yields, the ten year at this point is yielding 2.922%. that's a little higher than where we closed. >> in news just crossing the

wires, a spokesman from russia's government says vladimir putin has invited north korean leader kim jong-un to visit russia. the invitation was extended last week by the foreign minister there are no specifics for the potential visit. it's annoying. it's like -- >> wait a second. >> me, too me, too. they're both communists. well, maybe the soviet union, not anymoore it's still, you figure, you know, you should have been friends already. now that we're trying -- not friends but you should have been dealing and talking and trying >> you know who else >> assad. >> north korea >> yeah. >> from the hermit -- >> is that because he hasn't had any heads of state >> did you see jpmorgan about quigley. the stunning conclusion.

it's on zero head. jpmorgan's stunning conclusion, an italian exit may be rome's best option. so we've got to decide is it italy or -- >> is it -- >> there are some questions about it what do you do to your own -- >> which is it >> you like quitaly better than italy. >> it sounds like italy if you -- >> quitaly. >> every day the world was o.ding. >> i don't know. have you changed now because -- you threw in the towel >> no. i try being even kieled. >> i see you and i get depressed immediately. it's not you personally, you're very dire about -- >> no. i think the italians don't want to leave the euro. >> they should. >> and then dropping the quality -- >> what would happen to people, italian savers anybody who's got money in the

bank that's what they do to people who are retired. if you devalue the currency and suddenly what they thought they had goes to basically zero >> yeah, their debt levels would explode. >>t's an interesting conclusion about target 2 liabilities, debtor country. way to handle these things that is a conclusion >> i think it's easy to run as a politician as a politician that we're going to have this on our populus. when you look at the implication and what you might be doing to people, it has a sobering effect as we already saw with the two parties that have been elected already backing down on some issues they're barely being elected we're not going to do some things. >> look at turkey and see the plunge in the lira and what that does to the standard of living.

>> five years from now the euro still the currency >> yeah, i thinko. >> a lot of people don't. >> i think the issuet euro has is how does draghi deal with what he's createin bond market what happens when negative interest rates end that's the biggest challenge. >> we're back to the lead story in the journal that everyone bet on global growth, doing well at the end of january >> all right let's look at a couple of stocks to watch germany's bayer will wrap up it will retire the monsanto name bayer has launched a $7 million brand issue. clinical work showed keytruda works for people with hard to cure lung cancer drug.

and that's asco. meg tirrell will be on the show and she's there. it will bring us all of the data th comes out of the nclusion it's py exciting everything that happens every year at asco. >> that's stand for, american society of clinical oncologists? >> on ccologists. >> unicredit hasn't commented. it's denying there aren' discussions. a couple of other stocks to watch as well. microsoft is reportedly working on a deal to buy github. it could be announced as early as today microsoft declined to comment to cnbc. palo alto networks tapping a

new ceo. aurora had previously been expected to succeed stone as softbank's ceo and then there's tyson foods which has sold the sara lee bakery to private equity firm for an undisclosed sum they're focusing on the core protein food business. >> did you see this? >> the market cap? >> yes, the market cap is there an end in space >> no, there should be. >> the reason i know this, it snuck up on me, but it's now 775 billion in the new york -- "the new york post" every week they have the winners -- >> i'm always looking for

"squawk box. satya was one of the winners and passed alphabet in market cap. ballmer didn't screw it up. >> you need to look at a longer term stock longer term chart to see what's happened since satya came in there though. >> yeah. but it was set up -- >> there you go. >> that's unbelievable, isn't it okay at least 25 people are get, nearly 300 injured after one of guatemala's most violent volcanic disruptions in decades. heavy ash and rock came down they said the eruption affected nearly 2 million people in total. the ash spread far enough to have to close the international airport. meanwhile, in other volcanic ee

vupgs news, officials in hawaii say there been bigger moves. thousands of people are stranded withouwer, water reception and 87 homes are in the bway an it's racing towards the ocean. >> others choose to stay and they don't want to leave >> we know it's happened a lot in the past. if you've been to the big island, the beaches is hard, i'll never forget the name for it but it's everywhere. but we don't expect -- we think pom p pompei -- >> do they know how long this will go on

>> i don't think they know i don't know that they can ever accurately assess what's happening. >> i guess you need to talk to a science professor, guatemala, hawaii. >> happening beneath. >> i would think not. >> could incidence. president trump's lawyer, rudy giuliani, making some headlines over the weekend eamon jaffe ejavers joins us. >> president trump's lawyer making an aggressive legal argument saying the president cannot obstruct justice because he is in fact in charge of t justice department and has unlimited pardon power rudy giuliani and saying that the president is highly unbe likely to do that.

>> the president of the united states, pardon doning himself would be unthinkable president trump mass no need to do that. he d anything wrong. >> rudy giuliani saying the president didn't do ything wront the president's legal team also acknowledging that members of the legal team said things that weren't true about whether or not the president dick stated a statement from the white house about the 2016 trump tower meeting with the russians. they suggested the president did not dictate it the legal team is conceding to the special legal team's office that he did. rudy is explaining how this happened >> i think jay was wrong this is the reason you don't let

the president testify. if our recollection keeps changing or we're not asked a question ane makes an assumption. >> rudy giuliani saying, our recollection has to happen this is about whether or not they can subpoena the president's testimony in the russia investigation, the legal team suggesting no, it's not possible to subpoena the president. the special counsel's office hasn't made a determination yet. it's a fascinating fight. >> you're one of the most important famous people in the country now because you saw melania. >> yes, i saw melania trump at the white house on tuesday i believe it was tuesday afternoon. she walked right past where another reporter and i were standing in the west wing. >> the whole narrative -- there

are now melania truthers in the world, right >> it's weird. there are a lot of people how -- you know what r surgery is, right? >> that's what they do on somebody else. >> right >> i get all my affairs in order when i'm going to get a haircut, you know what i mean i'm scared of -- anyway, i saw on twit terse fear, you know, just quality people. >> you are one of my best followers. >> someone wrote in, you needed a corroborating story. they weren't going to believe you. >> i tweeted out that i saw melania. >> with kristen welker >> right. >> people said they didn't believe me they needed -- people on twitter saying they didnn they don't believe me when i say it's not

dyed, there are no am -- i thought he dictated that >> the legal team, i always thought that -- >> i always thought that, i know i thought that melania tweet sounded like the president, too. >> working hard. >> it was like all the same phrases. did you see the tweet? >> i did >> i'm here at the white house i'm working hard not -- not that that matters either because i think it's ridiculous, all of this con gesture. >> political payment have statements, how do i write yours. >> well, i have a small, small staff. >> really? >> no. just myself. >> people always want my

assista assistant's e-mail or her or his phone number i say, she's home cooking breakfast. >> watch which path you're going down. >> right, but i don't have one >> that is tricky territory. >> does help you. >> anything and everything, that's true. >> mass sieveive assistance. >> eamon, let me ask you today is the 500th day of the trump presidency we're going to be reflecting your overall thoughts versus what you were thinking 500 days ago? >> my overall thought is exhaust hundred. the pace is incredible here we are, 6:00 in the morning, we do this until 6:00 at night the administration has thrown off so much news changed the presidency in so many ways and following the trail of all of that has been exhausting for those of us who do it every day, but i think the metabolism here is part of the

president's strategy overload the system. if you get a negative headline, you can always put something else out and get aitive headline the president is exploiting twitter. >> the other thing, eamon, we don't want to bury the lead with this either is the total banquishment -- that's not a word the republican party, holdout, conservatives, trurk after 9/11. had a higher inpra party a mofl rate jeff flake and bill crystal or arnold >> did you see john boehner

quoted >> i did there's no republican party. there's the trump party. the republican side is off to the side resting. >> holding a cocktail. cocktail was the operative word. >> someone tweeted that john boehner is living his best life now that he's retired. >> smoking, playing golf. >> he's not wrong. the president has made the republican party in his image. >> did i see the atlanta fed's forecast, 4.8. >> really? >> yeah, 4.8. >> when was the last time you saw that >> "the new york times" had to say we've run out of words for how to describe, then they said no problem with the jobs market. they did run out of words to describe how good it is right now. >> look, the economy is booming.

if you're the trump administration you argue right now is the time to do his structural things that we need to do. if we need to tear up the agreements, nafta, if you do them at a time when the economy is humming along that's when you wajt to do it. >> really log foard to that gdp number when it -- >> uh. >> you can't tweet that. >> not if you know the gdp number. >> i'm looki toward to -- every day i look forward to -- >> i didn'know. >> you think he would have tweeted that. >> you think hwould have tweeted that if it was a number. >> i know exactly, garcohn did

not give the president the jo s johns -- larry kudlow gave the president the numbers the night before. >> jason herman's undergarments are still all wrinkly and uncomfortable. >> there's an op ed in the wall street journal. >> but to say i'm looking forward to it, you can't connect the dots to anything that you can actually use other than troblg the president of the united states will not tweet that about a negative number. we don't know the number. >> make something up, eamon. let's see what happens. >> there's nothing there there's nothing there. there's nothing there to say i'm looking forward to seeing the number >> the question is why do it at all? >> in the case of we're going to

have a dismal day? >> i did >> 2009? >> yeah. it may be thestions case had i -- that i had -- >> i'm looking forward to the market opening today i'm looking forward to friday and the weekend which i hope is still coming, eamon. >> joe, if the president doesn't tweet next month is the market going to assume that it's a miss >> you know what i will say though, the market didn't do what people expected on this it was good economic control. >> everybody got it the same timesn't individual people anyway -- >> i'd rather he not but i don't think it's going to be a huge factor. >> it's funny to watch. >> eamon, thank you. great to see you. in trade news, the u.s. and

china moving closer imposing tariffs as congressman ended with a stream. eunice yoon, good morning. >> reporter: i agree with you guys it's exhausting having to cover this every single day. with beijing they were warning the u.s. saying if the u.s. were to impose tariffs, then china just wouldn't bias much american stuff. secretary ross here over the weekend following up on the recent trade talks in washington the conversations here were centered largely on chinese purchases of agriculture as well as energy products the other issues that the business community has wanted to see on the table such as industrial policies or that the chinese had want the to discuss,

zte. however, they were not a priority the u.s. also didn't issue a statement. that was largely because secretary ross is going to be meeting with president trump on monday the chinese though did saying there was plenty of concrete progress made on the areas of agriculture and energy however, they also did add this. if the u.s. introduces trade sanctions, including tariffs, the negotiations will noetd t go into effect. president trump said he will have a 25% tariffs on 50 of phoenix, there's a negotiating take take here out of beijing it appears china does want to do a little bit of leverage negotiating of its own. they believe they have an

advantage because they can address an issue which is important to president trump and that is the trade deficit. >> a lot of people, it's like, it indicates we're able to consume and therefore it's a good thing it's a function of our savings rates. you can't hope but notice how much it's grown. you're in a far away place nice technology. >> it was amazing. she was next to us. >> let's get to the markets. we have two guests and a guest host, peter boockvar from bleakly group. all right. jurien, i haven't seen you in a

while. we've gone nowhere since the end of january l. we end higher by the end of the year, do you think? has this been a healthy pause? >> i think it has been, yes. we're month fi into a five way range. 2600 to 2800 on the s&p. this earnings boom that we are enjoying is showing that the financial conditions are tightening that generally brings pe ratios down as has happened in january it was 19.5 it's down to low 16. that's a very big reset on valuation. it's been able to take place without really much price damage the s&p is down 5% from the highs. for some people, that may be frustrating going no wr for--

nowhere for 6 to 12 months the earnings boom couldn't have come at a better time.so the res enjoyed lerngs earnings boom as well y-- the dool laing lar is , the u.s. markets are outperforming. the market will resolve itself higher whether that's in three months or six months, that's unknowable. >> chris, i don't know whether you disagree i did like a couple of your concerns you talked about brexit in a positive wall that are shaky there's not a lot of mortar. you worry about tweets about trade which can on any given day at 6:00 a.m. -- tweets

specifically trade they were one of the things you were talking about >> europe.he other one the pigs, keep your pep tow business moll handy. there tend to be one-day blunders, most of them viable. none of those southern european countries are going to leave the eurone or leave the euro i think that status quo continues. i agree with market exhaustion if you don't like the weather, wait a day if you need to, buy spdrs and ques and go play golf. it's from the fang stocks. nvidia, square, micron, apple. i think that's what really leads

us there so i'm in agreement with the fact that new highs are coming. >> i hear music. peter, you're going to be with us chris and jurrien, thanks. i like that yellow yellow with the white collar, chris. >> it's together when we come back, facebook under fire again, this time over a new report that the company gave device makers access to private data we'll have the details on the story next stick around "squawk box" will be right back. it took guts to start my business. but as it grew bigger and bigger, it took a whole lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything.

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expand the reach by messaging and in a blog post facebook said they disagree with the "new york times" piece maybe splitting hairs. when we come back this morning, giving shareholders a stronger voice. we're going to talk to the ceo of a company who connects shareholders then coming up at the top of the hour, president trump's legislative direct oor marc sho will talk about the first 500 days of the administration and what is left on the agenda friday's s&p 500 winners and losers this is my headquarters. this is where i trade and manage my portfolio.

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♪ ♪ welcome back you're watching "squawk box," live from the nasdaq market site in times square. good morning u.s. equity futures at this hour strong triple digit gains indicated at the open 122 now on the dow the s&p indicated up 8.88. nasdaq up 25 and change. tesla's annual meeting takes place tomorrow the agenda is full of hot button issues like stripping elon musk of his chairman's title and replacing several controversial

board members. our next guest is trying to make this type of proxy voting more efficient and accessible jeff joins us. he's trying to help sharehrs exercise their rights digitally. thanks for being here. >> thanks for having me. >> describe why you think we need a platform like this. >> we think logy left half of investing behind. people when they invested a while back, they knew that they could vote their shares. they went to shareholder meetings they were called share owner meetings your vote was a ticket to the meeting. berkshire hathaway does it they make it clear that there are rights beyond financial interest and investment. we're allowing people to easily connect with their voting rights. >> i still get proxies at home for all the shares i own vote your shares, make sure you do if you don't vote, they continue

to send these things to you because they want to make sure they get a quorum. >> yes, they do. they pile up outside your door not exactly an invitation to participa participate. when people attended meetings, the meetings are social. your ticket is to attend with other shareholders >> how does the platform work? >> basically we allow you to connect your investments, no matter where you invest, and we take a look at what you own and help power your connection. >> it's like a facebook of shareholders >> not like a facebook of shareholders, it's a way to verify that you're a share owner. i'll make sure to have a share owner badge. when you think about it, there's 100 million investors in the united states. it's difficult for people to actually prove that they're investors. >> on twitter people could say i'm a shareholder but you don't know if they do. >> it's a way of gauging what

the real shareholders think. >> verifying one question people ask is, look, will this amplify a small shareholder or an activist >> everyone's screaming for safe people are yelling into the void understanding whether people have skin in the game is difficult. >> i'm wondering if there's a subset that are more inclient to use it a 65-year-old retiree might not be as active as an activist investor. >> i think potentially people that are likely to vote their shares would appreciate it smaller investors and newer investors are likely to use it as well. one reason we put this together is at acorns we work with many new investors. >> i should point out, another company that you founded was acorns which takes people's spare change and helps them

invest it like a smart piggy bank. >> exactly exactly. the proxy voting experience was so terrible that we really wanted to improve it you can't access it and owning is about more than owning and watching the stock go up and down voting the shares can be powerful especially for people to realize it's democratic framework for people to have a say. it will be tough on capitalism. >> peter >> so what percentage increase in voting do you think we'll end up seeing? if x amount votes when we get the paper in the mail versus this new system, what kind of increase do you think we can get? >> i mean, the turnout isn't huge right now it's about 5% for electronic closer to 30% for paper of shares, not necessarily shareholders that skews towards older, wealthier individuals that

actually elect to receive a paper mailing. for young people, few actu realize that they can vote people don't learn about it when they open an investment and there's technology that should be around voting we have so many ways to represent performance, companies do research, construct portfolios and yet to simply understand what your voting rights are, it's not even there. it's hidden in different share classes and we think that it's actually a really interesting, powerful experience. it doesn't have to be dressed up we just make it transparent and allow shareholders to connect with each other, it can be powerful the meeting is a source of inspiration. the proxy voting system is to -- it used to be the exception you couldn't make the meeting. today it's the rule and it's lonely and it's not a perfect proxy for the meeting. >> jeff, thank you for your time today. we appreciate it.

>> applaud your efforts with millennials. it makes me hopeful. is there hope that capitalism won't be thrown out and proxies? i applaud you. is there hope?>> yes if you go and sign up and realize you can. >> good. thank you. appreciate what you're doing. >> there's hope. >> i've been somewhat hopeless at times coming up, toys "r" us is going out of business putting 30,000 employees out of work. we're going to talk to a long time employee who's fighting them to pay severance. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. they helped make sure it was safe. we had everyone we needed to get our museum back up and running,

and we opened the next day. it's pretty amazing out there. the world is full of more possibilities than ever before. and american express has your back every step of the way- whether it's the comfort of knowing help is just a call away with global assist. or getting financing to fund your business. no one has your back like american express. so where ever you go. we're right there with you. the powerful backing of american express. don't do business without it. don't live life without it.

time forex he cantive edge toys "r" us is closing at the end of the month 30,000 employees will be closed without severance pay.

kerry gleeson is the director of the fair work week initiative at the center for popular democracy. i want to thank you both for being here this morning. kerry, let me start with you let's talk about this issue. some people might not be surprised to hear that a retailer and employees and creditors and everybody elselike getting nothing. your point on this is what >> this is a man-made disaster that could have been avoided the truth is behind toys "r" us bankruptcy are groups that saddled the company with debt and forced it to pay hundreds of millions of dollars so it couldn't compete in today's economy. >> tracie, let's talk about that you've been a manager at one of the stores what did you think you kind of watched this play out over a long period of time what do you think happened >> when the buyout happened kkr and bain, the stores really changed. full-time positions were

eliminated and there was no more investment in the people. >> meaning >> we couldn't competewe couldnt systems. we couldn't get what we needed. >> cash registers? >> to compete and with less full-time employees obviously the buy in wasn't there from the associates. >> how do you know that amazon, walmart, competition, i mean, we've seen so much disruption with -- especially with walmart, especially with amazon and the landscape is littered unfortunately with companies that weren't in a position to compete. how do you know that the private equity firms didn't even maybe allow the company to stay competitive even a little bit longer by getting like slimming down the work force, by getting rid of redundant positions how can you tell --

counterfactual is a tough one for you because walmart is the real nemesis, not don't think the private equity firms. >> well, if you look at the numbers. when toys "r" us was bought out in 2006, it was 70% equity and it was saddled with 78% debt that was a very risky endeavor that should not have -- that shouldn't have been allowed. and then kkr and bain and v vernado paid themselves $470 million a year that's a half a billion that could have been invested in the company. >> there certainly is the issue of many executives in the week before the bankruptcy coming being paid out millions of dollars in bonuses before some of those things happening. that is something that some people have jumped on including the two new jersey senators and the congressman who represent that it's an uphill battle. what would you like to see happen >> we would like to see is hard working people like tracy get

severance pay. now they're saying there's no money. we would like to see it come from the private equity firms that have profited immensely it's just what's right people have worked incredibly hard for the company these are families that need this money to get by. >> i look at other cases though where i know it's a horrible situation. your job's lost after decades putting into this, but i know of lots of companies where this has happened and people get left with nothing what has to happen. >> this is a breaking point. this is a breaking point we are seeing thousands of people step up right now to share their stories. members of congress are taking action we're going to see if the right thing isn't done here, we're going to see a wave of regulatory action because we can't have this. this is an economy not working for americans. >> tracy, talking about what's happening in the stores over the last monthor s oor so, what are seeing

>> we are liquidating. the sales are skyrocketing and the employees are exiting. as they find new jobs, they have to go. our executives of the company on may 15th exited the company suddenly and just left us all to hang out and dry. >> i'm very sorry for what you're going through and i wish you better times. >> thank you. >> thank you for joining us. >> thank you for having us. coming up, brazil is the world's third largest freight market not a lot of railroads very important talk to the ceo, a startup tt wants to druispt the way truckers do business like uber truckers, that's next. at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business. & so this won't happen. because you've made sure this sensor

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♪ the uberization -- might be in the oxford dictionary some time but the uberization of everything has hit the trucking industry in brazil one start-up, cargox is looking

to make the freight market more efficient by connecting shipping companies to truck drivers with extra space to transport their product. joining us now, frederico vega he is founder and ceo. is it cargo x or cargo ten we have this problem with the iphone >> cargo x >> let's start with why brazil in terms of trucking makes sense down there i didn't -- have never been. i wish i had i feel, you know, provincial but not as many railroads that move freight in brazil, so trucking is more important than we're used to here in the united states >> yeah. so the reason we started in brazil is, you know, when i was going to start the company, i thought i'm going to start only one company, hopefully you know, the time you have to build a company is limited you only live once i'm going to solve a real

problem. has to be a large problem. i could have started the company anywhere but in brazil we are talking the third largest trucking market in the world. 80% of the economy is moved byts and most of the trucks are owner operators. you have people that own their own truck and make a living off driving the truck. so we thought we kind of give power to people moving the freight and enable them to connect directly with the industry and build an electronic platform -- >> to bring them -- to kong congregate all these guys. makes total sense. >> so basically, you know, we say to the owner of the industry, you know, don't worry about working with thousands of trucks you can work with only one provider which is cargox in this case that doesn't own any

assets we pass it to the owner operator you don't have to worry about paperwork and about running empty. in brazil 40% of the time truckers are running empty you have delivering product, and then empty coming back that produces co2. the trucker is not making enough money to maintain the truck, et cetera the owner of the freight is paying more money to move the freight. end the day the consumer has to pay the bill. and we thought, you know, we have a very traditional industry that exists here for a hundred years. we have technologies that exist here if we bring this down to the traditional industry, we can build -- we can solve a problem that exists and build company. >> wish we had more time it also helps with crime they're playin out frederico, thanks for coming in this morning and letting us know about it it's exciting. thank you. >> okay. >> and peter boockvar, thank you

for spending the hour with us. we come bac we'll take you live to the white house where president trump is marking his 500th day in office today. marc short joins us after the break.

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stocking pop markets look to kick off a new trading week in the green after friday's strong jobs report. what you need to watch ahead of the open straight ahead. we are on washington watch today marks the president's 500th day in office. we'll be speaking to the white house director for legislative affairs about the administration's agenda. plus the summit with north korea back on.

kevin rudd of the asia society policy institute is here to discuss as the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york, this is "squawk box. good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew is off today. after a mixed week for the markets last week, you're going to see there are green arrows across the board dow looks like it is set to open up about 113 points above fair value. the nasdaq is up by about 21 points this morning. and then the s&p 500 up by about eight points let's get you caught up on some headlines this morning microsoft is reportedly working on a deal to acquire site

gethub the terms are unknown, but github was last valued at $2 billion. also tyson foods has sold its sara lee bakery to private equity firm coleburg for an undisclosed sum. and then facebook reportedly had data sharing agreements with at least 60 device makers and "the new york times" says that many of these are still in place. the paper reports that the device makers were able to access data from users' friends even though facebook said it wouldn't share that information. among the companies that a said to have had these deals in place in the last decade, apple, amazon, samsung, and microsoft facebook responding in a post arguing they were used to get facebook on devices before app stores and standard operating systems existed. the social network denies the friends' data was shared without consent. david bianco joins us for

the remainder of the show. can you give ua quick rundown on your current thoughts maybe since last time you were on? >> quick rundown it's bullish bullish on u.s. equities, global equities >> global equities too >> yeah. >> the synchronous global growth is intact? >> it is europe is still doing fine it's still healthy what we're attracted to when it comes to foreign equities is emerging markets, emerging market asia. we like equities within the u.s. i like growth stocks, health care, tech, and big banks. which is what we like within value. >> we will be here until 9:00, right? >> yeah. for awhile >> time off for good behavior, perhaps. >> commercial breaks president trump, meanwhile, announcing that a meeting with

kim jong-un isack on i don't know yet whether or not he said he's looking forward to that meeting, michelle caruso-cabrera he didn't say that but it's back on >> it's back on. there's some new headlines out this morning to tell us about north korea's vominvolvement. one of the key questions is north korea's been a socialist country for decades now. they are extremely poor and they were looking for help on who would pay for their trip the international campaign to abolish nuclearization has offered to pay for the trip. so that may be something that helps smooth things over and gets kim jong-un to singapore when the meeting happens on tuesday. another key headline is kim jong-un has shaken up the military there there's a lot of different interpretations on what's going on there reports out of south korea suggests it means he is committed to denuclearization. others say he's trying to

install members of the military who are very close to him so he doesn't have to worry about a c coup when he leaves the country. if thery gets a lot of money as a result of the deal to help grow the economy there. but s not forget that north korea was a client of the soviet union. there has been an invite for kim n to visit with vladimir putin. assad is looking to visit him as well also there have been north korean military inside syria recently president was asked on friday if the campaign of maximum pressure was going to continue as a result of them agreeing to the meeting. here's what he said. >> it's going to remain what it

is now i don't want to use the term maximum pressure anymore because i don't want to use that term. we're getting along. you see the relationship it's not a question of maximum pressure it's staying essentially the way it is. at some point hopefully a deal for the good of millions of pele a deal will be worked out. >> remember, the north koreans were told that if there wasn't going to be a meeting, there were going to be even more sanctions. so that may be what had brought them back to the table at this point. >> so much swirling around this. >> very complicated. >> now we're going back, you know, when he destroyed the nuclear site now there's watch dog groups that say a lot of the important stuff was moved out beforehand there are those who say the president wants this so badly we're in a weakened position i don't know whether that's true when we got a guy like bolton in the president's ear. >> bolton is a key figure.

he was in the meeting. now pompeo is a tough guy too. right? i wouldn't call him a dove by any respect. but maybe bolton because of his reference to the libya solution which upset the north koreans. >> right it's a socialistic -- that word, i finally -- i think a two-word definition, shared misery. you think anyone ever told bernie that's the definition in your book, did you mention shared misery? >> i don't know if i used that phrase but it wasn't socialism. >> it's about shared misery. >> i used the term socialism now. but it was a communist state it was set up as a communist state. >> why do they do so well though >> why do they stay in power >> they do so well plus their cronies do so well. it's like the opposite of

egalitarian society. >> they live extremely well and the people live famished and impoverished till don't know how many people died in north korea from the famine people starved to death they suffered from something when you eat too much corn, when corn is the only thing you have, you end up with very, very white eyes and then you wither away and die. so this is -- yeah i mean, it's an awful, awful, awful place and there are still defectors every day trying to get to south korea via china because the situation there is so tough >> thank you >> thanks. today marks president trump's 500th day in office. joining us right now to talk about the trump agenda is marc short. he is an assistant to the president. marc, this morning we were speaking with eamon javers our white house correspondent there. asked him what he thought about

the first 500 days he said exhaustion they're just so busy because there's been so much activity to cover. why don't you tell us a little bit about what you think your biggest accomplishare over that period ime? >> well, thanks, becky i think there was a lot to do for the american people. this president has dove in with huge energy. i think you look at the economy with the 3.8% unemployment, the lowest it's been in 50 years the lowest ever for african-american employment. the lowest for hispanic unemployment the reality is there's been more than 3 million jobs created since the president was elected and the economy seems to be turning the corner gdp has been growing in fact, april had the largest surplus on record because the benefit of the tax cuts are beginning to see the revenue come in. on the fgn policy front, you all were just talking about potential breakthroughs in north korea. but the president continues to live up to the commitments he made on the trail. whether or not that is promising to move in jerusalem whether or not that is getting out of the horrific iran deal. whether or not it's out of the

paris deal those things he's done on the policy front and confirming more judges at point in the history than any other ministration so we look at the first 35500 days, the people elected him because of the energy he would brin the office. >> let's talk about the foreign affairs front. that is something that depending on where you sit in the political spectrum, people will say he's done a fantastic job, opening things up. or they will say he is risking relationships with our closest allies we talked with the ceo of the manufacturers last week who said president trump is on his way to becoming the manufacturing president. but also said that when you look at somof these trade disputes and trade wars that have now

kind of propped up along the way, note how history is going to judge it it depends on what the end at wouou tell him? >> well, i think the president is verd on making sure that we continue to grow our economy. aie deals. the reality is that right now for america, on products coming in, the average is a 2.4% tariff yet it's more than double that on products we're sending overseas the president is trying to level the playing field. and i think the tariffs are part of an effort to get us to hopefully one day where we have true free and fair trade that is the ultimate goal. until we can get that level playing field, the president is going to do what he wants to do. and it's exactly for the folks, the national associated folks of manufacturers to push this agenda that will reduce the regulatory burden and also protect those woers. one last thing on the regulatory front. when the president came into office, he said he wants us to

roll back two regulations for every new rule on the books. today our rate is 22 to 1. >> i saw one of our former colleagues larry kudlow talking about, i think just stating the obvious that some of the stuff, it really looks like is working. i'm talking about deregulation, lower taxes, you know, more friendly to the private sector not quite as adversarial as the previous administration. he says all these things are working. is the idea to approach some of these trade issues is there sort of the feeling that now's the time to do it it might be a partial head wind? maybe it's just basis points on terms of a head wind but if we're going to do it, now is the time to do it and would there come a time where you realize -- or the

president realizes, look this is counterproductive to what i'm trying to do. we're cutting off our nose to spite our face with all this other good stuff that's happening. and here we are where we're treading on, you know, whether it's alienating our allies or makingnemies of some of our trading partners will we pull back at a time where it's counterproductive >> joe, i guess i'm a little bit surprised that often in the media there's this surprise about the president's trade agenda this is what he campaigned on. when you went to the midwest of the united states, ohio or michigan or wisconsin, these were the policies he was promising. and we're so grateful to have larry here who is our greatest apostle for growth he's the one helping -- >> he's probably the one pushing back let's say you save ten jobs in a rust belt area, but you lose 200 jobs as a result in some other -- and you can connect the dots and you see that it's counterproductive. you're well intentioned.

you'll fulfilling campaign promises, but it's not getting you where you want to go do we know when to pull back on that >> well, joe, you're right you don't want to have a policy that has a net job loss. i don't think that's where the president is headed. you're looking at, i think at this point the steel and aaluminum tariffs are tactical and targeted as you look at the economy, it's continuing to grow i think you look ae numbers from last week and many suggested it's the right spot we should be at >> good morning, marc. david bianco here. congratulations on 500 days into the presidential administration. >> thank you >> i like what you said when you said the objective here is for a world without tariffs. i think that's a great expression i think if the administration can say that's the trade fair, free trade i love that. >> i think the president has said that many times but i think the reality is also

he recognized that it's not fair at the current moment. the reality is that american companies are facing enormous tariffs on the things they're trying to export and the markets are not free for them wh they're trying to sell their goods overseas and i think the president wants to make sure that the american worker has a level playing field. >> marc, let me ask you quickly. midterms are approaching you've got a house majority leader, the speaker, who's going to be leaving. paul ryan. does that weaken your position what does that mean you can accomplish between now and then if you have to get things passed through the house? >> i think there's a lot left to do in the house. we have a farm bill that the president is anxious to sign not just to get new policy to farmers, but that's the best place to get requirements. so the president wants to see that program changed we also have a lot to do on the appropriation side it's been 22 years since congress completed appropriation bills on time. that's the key to getting

president bills he can sign. so we still have a pretty aggressive agenda. and last week, y'all covered it. the president signing not just the dodd/frank repeal. this administration stays focused on delivering legislative accomplishments for the people >> thank you for your time today. >> thanks for having me. also, folks. some big news out of the meeting on the fight against cancer over the weekend. meg tirrell has a preview coming up what can you tell us >> good morning, becky there is huge news out of the largest cancer research conference this weekend. we've got the celgene chairman and ceo coming up after the break. stay tuned

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big news out of asco this weekend. meg tirrell is in chicago where she's been covering the conference she joins us now with a special guest. hi, meg. >> good morning, joe this special guest is the ze celgene ceo. two biggest news of the conference came from zecelgene. both of these are in these personalized amino therapy treatments trying to help patients that have run out of

other options in treating their cancers. let's start with the bluebird announcement some said those results, they were good, but didn't hit our expectations you're seeing bluebirade down a little bit today. how do you look at that? >> i think there's an expectation that we're going to cure mrefractory myeloma >> meaning it topp eped respondg >> to put that in context, that means a myeloma patient who's probably had the disease for more than ten years, in that context to have one year of progression-free survival would be unprecedented what investors were focused on is maybe it would be more durable than that. we don't understand the disconnect existing therapy in that setting, medium progression for survival through four months this is tripling what is available for patients today >> these are patients that have tried eight other therapies, they stopped working for them.

is the plan to try to guf them this treatment earlier >> what happens is we develop cancer therapies whether it's bd our product. it starts in the heavily pretreated population. if it works there, it rapidly moves up to the more curative setting of first or second treatment. >> you also had some information from your juno side. people said that looks pretty good but there are already two other markets on the market for nonhodgkins lymphoma how do you compete if you're third? >> the first thing investors and the medical community is realizing, this class of medicine whether it's lymphoma, leukemia, or myeloma, they will replace existing chemotherapies, existing classes of medicines. so the market for this therapy in myeloma, lymphoma, leukemia

is going to grow exponentially that's the first thing so there's a lot of room for a lot of products to come in and do what these drugs are doing. high response rates. durable remissions and actually get away from chronic treatment. the first thing is context the market is years away from being saturated by these products i think the second thing we reported this weekend, i think investigators are getting used to, it is a safer product. there's no question these drugs are highly effective, but there are plagued with some sicytotox situations in that context you could have a lot of toxicity. the therapeutic index is much better with this very safe compared to the first generation on the market of course these are directive therapies. >> so you've had a lot of exciting days here at the

conference had a lot of pipe line setbacks. you brought down your guidance how do you win bk en >> we have a core four in hematology right now we already talked about that our pipe line is rich. we have four very important products that will come into focus even more over the next year, year and a half. each one is a multi-billion-dollar product opportunity for us they satisfy medical need. we've got to deliver in the pipeline there's nothing like pipeline success to reverse sentiment >> all right we'll have to leave it there back over to you >> meg, not talking about celgene now, but just in general, on this day do you know all the stuff that's going to be presented eventually are they headlines already in for what is going to be presented at asco?

and if so, i'm looking at some of them and i'm a little bit disappointed at this point with -- you know, you always this fier.ore, obviously, on do you know everything that's going to be presented? the blockbuster stuff at this point? >> we know a lot of the things that have come out over the weekend. there are a few more things coming out over the next few days a lot of the big news we probably already know. it's funny you say that, joe a lot of the folks i'm talking with here y this is a huge asco and the progress is so much bigger than we've seen even a decade ago we're used to seeing these headlines. >> if i hear that women don't need chemo because it doesn't work, that just -- that makes me frustrated i understand the piece you don't need to have your kidneys removed. that's good. but just finding out that your survival rate is the same with or without chemo doesn't sound like a blockbuster headline to come out of a cancer conference.

zbl >> it doesn't. but i sat next to a breast cancer doctor on the flight and she was so excited about it. when we come back, lowe's co-owner jonathan tisch will join us. don't just track an ind, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. 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. that's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family?

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coming up, lowe's co-owner johnathan tisch joins us and later, former australian prime minister kevin rudd joins us to discuss the news that the meeting between president trump and kim jong-un is back on it's scheduled for june 12th as we head to break, take a look at u.s. equity futures

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♪ good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. among the stories that are front and center this morning, apple will kick off its worldwide developers conference this week in san jose. tim cook will deliver the keynote address. that happens today at 1:00 p.m. eastern time also, apple will likely announce updates to its major software

programs including ios and the watch operating system shares of society general are higher today unicredit hasn't commented and stock gen is denying anything. unicredit up by close to 0.7%. las vegas union workers reaching a tentative deal with mgm resorts international. that deal covers nearly half of the 50,000 employees that were gas.atening to strike in las this comes after caesars entertainment reached its own deal on friday afternoon smaller casino operators have yet to reach agreements with the union and could still face strikes.

our next guest, johnathan tisch. thanks for joining us today. thanks for joining us. >> morning, joe. >> if you had to distill it down to two things that are the most important to be discussing right now, what are the issues facing companies like yours, the lodging industry and what seems to be a really positive overall backdrop for the u.s. and actually global economy? >> certainly business continues to be strong our concern as an industry is related to inbound international

travelers. we've been careful as a country about the rhetoric coming out of our nation's capital visitors want to feel welcome. they want tosafe even though business is pretty good, there's no doubt about it. you mentioned that, joe. the number of inbound international travelers is down and the u.s. is losing market share. that's due to a variety of reasons. travelers have lots of choices today. so we need as an industry to work with our elected officials. not be on opposite sides of the conversation from our elected officials. about putting out a welcoming message. because that inbound international traveler is really important. that is one issue. there is a marketing program geared towards international travelers called brand usa that this administration tried to take out of the current budget that would be a mistake. there are strong returns on this program. it doesn't cost the u.s. taxpayer one single dollar

and we need to make sure we can spread the message why people want to come here instea going to other destinations. and certainly security remains very strong issue for us we have to ensure that our travelers feel welcome and they feel safe. >> all of those things sound -- i don't understand the -- all that sounds positive to me in terms of security when you look at some of the issues the world has, jonathan. what are the actual numbers? i can't believe anything's declining in this economy. what are the actl numbers? 2016, 2017, 2018 in terms of internationally travelers coming here it's down too much since 2016? >> it's down a couple points it's down a few million visitors but more importantly we're losing market share. the number of inbound international travelers to any destination is increasing. because there are middle classes around the world that have the

ability to travel. they have capital. they have money in their pocket that they never habefore so we are losing market share. >> i don't understand that >> that's our concern. >> and what -- what do you attribute it t yo talking about rhetoric from certain -- go ahead >> yeah. just the ideas that i mentioned before also this proposal for extreme vetting, for making it difficult for more people to get a visa. for putting under pressure the waiver program all of these issues start to have an impact now, once again business is good if you look at our portfolio, 24 existi existing l existing loews hotels. but i'm talking about inbound international traveler who once again we want that person because they spend a lot of money once they're here and they help us create jobs in the travel and tourism industry.

>> you're domestic primarily how much do you have globally right now? loews. >> loews only has two properties in canada, one in montreal our growth is moving when people ask me how do you feel about the hotel business. my simple response is we're currently using $250 million of loews cooperation capital to build $2 billion worth of hotels that is six under construction three of which in orlando in a joint work with comcast. we're expanding by three more properties in two years, we'll have eight more hotels. 2800 rooms under construction now. that's going to bring us to 9,000 rooms. we're building an 800-room convention center hotel. these are all being built from scratch. we're making a large bet that

the industry is going to continue to prosper. these are unique opportunities for us we've got great partners so we're very bullish. >> a domestic uptick in travelb. has that offset that so you're picking out -- you're really trying to find something to complain about here in terms of the international travel. it's weird so leisure travelers worry about extreme vetting for visas when they're coming here? they think they're going to get -- i don't understand that either how leisure -- >> it just makes it more difficult to get a visa. and if there are barriers to entry. we need secure borders but open doors. >> how much more is that offset bytrong domestic travel for loews? >> joe, you're totally right >> i thought so. >> i understand. but i'm telling you that we are

losing market share. and you understand -- you understand market share. >> i do. i do the other thing is, are you sure that a running back is really the key cog of an offense now? i mean, the jets -- that guy is, like, tall he looks solid are you sure you're taking the right approach here? i'm wondering about that too >> well, i'm not the and i'm not the general manager. so we trust our teams a lot. they do a lot of research. >> it's going to be exciting. >> saquon barkley, he is a first class individual i was out at training camp about two weeks ago watching otas. he's a terrific young man. and i think that the energy that he brings to the team now, eli's feeling really good. we have incredible weapons for eli. we added to the offensive line so we're all very optimistic about the new york giants for this season. last year was difficult for the team for our fans, for our

players. but we're really looking forward to a strong showing this year. >> so i'm going to give you one more, like, choice to make let's say i have som that has some great seats that are generic. they're at metlife so i have my choice of which game to choose whether it's a game with a lot of green around or a game with a lot of blue around are you suggesting i'm going to have a better outcome if i go to a giants game or a jets game >> i would never make that a conversation between you and me. we have a very good relationship with our partners. they're green. we're blue the seats are gray and obviously we have a relationship with them that has now spanned over a couple of years. they're going to have a great season we're going to have a wonderful season and hopefully we'll meet them in atlanta in february. >> what did you think of -- did you get a vote on the anthem

controversy? did you actually -- >> no, joe as you know, my brother steve deals with the team more directly >> what do you think of it >> he works very close -- i haven't spoken to him. i've been traveling. >> what do you think >> i got six hotels under construction >> you walk in the right line? is the nfl walking the right line >> i'm going to leave the nfl stuff to john and steve tisch. >> all right all right. all right, jonathan. thank you. we always have a lot of different issues to talk about i'm going to be over at one of your establishments tomorrow that's where i get my toupee retrofitted over at the regency. anyway, thank you. >> did you notice that the regency was on "billions" last night? >> i heard that you were you were on "billions," i think, last night >> well, there's that too. >> but you left that out no, i didn't notice that i was watching something can't remember what it was you know what? did you see the ladies u.s.

open that was unreal. did you see it >> no. >> it was awesome. >> no. i didn't get to see it i was with my family i had to get ready for "billions. >> well done >> okay. good job self-promoter. no, no we love you, jonathan. thank you. and say hi to the other tisch. >> thanks, guys. >> see ya. when we come back, former australian prime minister kevin rudd will join us to talk about the president's upcoming meeting with kim jong-un, trade talks with china, and much more. and then later this morning, don't miss mcdonald's ceo steve easterbrook. he's going to on "squawk on the street." meantime, check out the futures ahead of the opening on wall street looks like we are up by about 126 points right now for t dheow futures. stick around "squawk box" will be right back.

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welcome back, everybody. wilbur ross in china for another round of trade negotiations. his visit comes after retaliatory tariffs by countries protesting the president's steel and aluminum tariffs

joining us now is kevin rudd thanks for being here. >> good to be on the program >> let's start with north korea first. talks are back on. looks like this is happening this is a good thing >> it is and despite his unorthodox style, frankly he's produced a result which is a summit so i give him a tick for that. and secondly i think the strategy is shake the tree, see what falls out of it then make a decision about whether you can live with it i give the president a reasonable pass mark on this one. >> when you start shaking that tree, you think all the nuclear weapons are going to fall out of it you think that's what's going to happen, actual disarmament >> it depends on who defines the denuclearization term. if there's a capital "d," all bombs, all range, all testing

facilities through two we might do something on the intercontinental stuff which threatens the united states. and we may do something in other categories of weapons as well. so there's a big spectrum to be defined. wh i say shake the tree, it's what categories of missiles and what restrictions then put on north korea's existing storage of a whole lot of nuclear material from which they make bombs. so we won't know that until this summit has happened. but so far, frankly despite all the sound and movement and color and criticism of trump, frankly let's give this summit a chance to work. >> i didn't think of it until you just said it, but the idea that you defined denuclearization by getting rid of icbms, that might be great news for us. not necessarily the south koreans or for japan wuch are in slightly different positions does that separate us from our allies at some point

>> if you speak to folks in washington, professionally worked on the denuclearization file pentagon state, those sort of folks. people that work there for years, their big fear is does the president agree to a deal which loses the strength of the alliance with japan and/or manages properly the alliance with south korea now, there's a meeting just over the weekend at shangri-la dialogue in singapore. mattis was there from the united states his counterparts from the two countries we mentioned and frankly there are different views object what the outcome should be. south koreans are in the mode of let's give peace a chance. then you've got the japanese much more hawkish about what should be a precondition for this summit. all nuclear matters at all and the united states somewhere in between if they keep the south koreans on board, there's a danger they'll start to lose the japanese so there's a diplomatic play here as well

but so far just the president and the administration have kept those allies within the cut. >> go ahead. >> i want to shift gears quickly, if we can so mr. prime minister, we listen to president trump talk about the united states and a lot of how in his view -- and it's a common feeling in the united states about how we're treated in terms of global trade and to sum it up, it's that we have the largest economy in the world. and sometimes maybe we were taken advantage of it because we have so much prosperity that we're on the short end of the stick. and there are a lot of tariffs you can point to where it's like, really we send something there and it's 25%? it comes here and it's zero. as an outsider and being prime minister of australia, is the united states typically on the short end of trade with its partners, do you think >> depends which countries you're talking about you guys have run, for example,

a trade surplus with us for as long as i can remember and australi probably in your top ten trading partners. we don't mind because the stuff we buy from you, we need so it depends which relationship you're talking about in aggregate, where i partly understand where the president's coming from, if you're running a sustained $800 billion a year trade deficit and half of that is with china, almost half of that is with china, then what he's saying is we need some corrective action. where the criticism comes in with president trump, the administration, is the method he's deploying and trying to bring that to resolution the wilbur ross talks you referenced over the last few days have ended in my judgment pretty badly looking at the content of the releases my friends in beijing say we're starting to get to a dangerous zone in the possibility of effectively the chinese. i think there are warning signals on that one.

>> i think if that's where the bulk of the trade deficit comes from -- >> it's a danger the united states gets isol on in a big way. there's a substance of how to bring the trade deficit down you can never bring it to balance. you're a huge economy and you attract an enormous income in which you invest and have returned to you the income that you derive from those investments by virtue of the access to those markets. that's not counted in the trade numbers. that's from the financial flows. so there are swings and roundabouts here for everybody but the danger diplomatically for the united states at the moment is you start to carve yourself off from the europeans and the chinese simultaneously there's a g7 meeting this week they are referring to it as g6 plus one basically the americans are off the reservation here

>> prime minister, thank you very much for your time. it's always a pleasure to see you. >> good to be on the program and i like the new studio. >> i ce don't export more. like the blooming onions from outback. i'm kidding. >> next time i come, i'll bring some quality product decent beer, decent wine lightening in a bottle. frankld over 260 years later, with a little resourcefulness, ingenuity, and grit, we're not only capturing energy from the sun and wind, we're storing it. as the nation's leader in energy storage, we're ensuring americans have the energy they need, whenever they need it. this is our era. this is america's energy era. nextera energy.

a ferrari becoming the most expensive car ever sold. robert frank gives us the

details. it wasn't even a new one >> i know you like the new cars, not the old cars but these old ones are getting more expensive by the day. a 1963 ferrari broke the record for the most expen ever so sources telling me this ferrari sold last month in a private deal for $70 million >> what? >> now, the seller was a german collector. the buyer, this is the interesting part david mcneil he's the founder of weather tech, the maker of car floor mats ferrari's gto model is considered its holy grail of the brand. ferrari only made 36 of these cars those owners are members of the most elite car club in the car world. it includes ralph lauren, walmart heir rob walton. previously the most expensive

was for $52 million. another gto holds the record for the most expensive car sold at auction. it's that car. it fetched $38 million in 2014 now, this particular gto won the tour de france unlike a lot of gtos, it never crashed. hit last sold for $6.5 million. >> that would go for much, much more >> that's the car that just sold for $70 million went for $6.5 million in 2000. so you see the price appreciation here. but dave mcneil, again, a guy who is a big trump donor a guy who believes made in america, employ in america buys ferrari. >> does jay leno have one of those? >> he doesn't. but almost everyone on the list is a thank you. when we come back, the u.s.

inching cl ining closer to impog tariffs. and later, apple kicks off its worldwide developers conference what to expect from tim cook and company. "squawk box" will be right back. brain i amazing thing. but as you get older, it naturally begins to change, causing a lackven trouth reca. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown

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stocks in the green. 90 minutes until the opening bell on wall street. shares of the social media faceok falling after questions emerge over how it handles users' data. plus there's nothing like the smell of a burger in the morning. we will take you live to mcdonald's new headquarters in chicago. the final hour of "squawk box" begins right now ♪ live from the most powerful city in the world, new york, this is "squawk box. >> rain is the operative word this year. good morning and welcome back to "squawk box" here on cnbc.

live in the nasdaq market site in times square. joe kernen here with becky quick. andrew is off. david bianco also with us. the futures are indicated up about 115 points they've been up 140 or so, 150 at the highest levels. the nasdaq indicated up 15 treasury yields continue to below that 3% number but back above 2.9 this morning. just barely. 2.908% shares of macy's higher after positive comments from evercore they're shorting to a long position in macy's saying the retail apocalypse is over. also saying they are reimagining the american department store and that market has incorrectly

assumed that all retailers will not be able to compete because e-commer e-commerce look at shares this morning of macy's also facebook shares going in the opposite direction "the new york times" is reporting that facebook struck agreements with device makers over the last decade to allow them access to data of users' friends without their consent. companies like apple and samsung could access personal information from users' friends. that information including relationship status, political leaning, education history, and religion most of the partnerships remain in effect. though facebook began winding them down in april stock is down by 1.4%, but facebook responding to the report in a blog post said that it disagrees with the times piece and makes a distinction between the integration on devices and third party apps british prime minister teresa may will speak with president trump this week to

talk about u.s. steel tariffs. that's according to to may's spokesperson meanwhile, the u.s. is inching closer now to imposing tariffs on china as negotiations between commerce secretary wilbur ross and his chinese counterpart ended with a warning let's get to kayla tausche she's in washington covering this good morning, kayla. >> good morning, joe the most recent dialogue between the u.s. and china that happened over the weekend, it ended yesterday with no joint statement or new developments after the white house last week said it would go forward with 25% tariffs on $50 billion in goods from china on june 1st china issuing a warning in response saying if the u.s. goes through with that, quote, all the economic and trade achievements negotiated by the two parties will not take effect, end quote. the breakdown in talks with china coming as global trading partners are striking back at

what they see as upending decades of global free trade made a rare show of division this weekend rebuking those tariffs on allies steel and aluminum imports and asking steven mnuchin to communicate that anger to the president. here is secretary mnuchin when asked about ade in response. >> i would just say that president trump has been very clear in wanting to address trade issues i have the opportunity both to discuss too some of these issues i know this issue will obviously come up at the leaders session next week and the leaders will talk about it. again, our objective is to make sure we have fair and balanced trade. >> that meeting between g7 leaders happening in canada later this week. of course, canada will be the host country, but it does not have a nafta agreement to show

and it will be paying those steel and aluminum tariffs despite some sharp criticism from its prime minister. we will see how this conversation evolv but joe, it ses likehe truce may be extremely temporary in nature >> yeah. and we just -- we were just talking to kevin rudd, former prime minister of australia. one thing everyone seems to concede, it's really china that the issue is -- you know, even people that sort of have some empathy for trying to solve some of these inequities over the years, they wonder whether it's the right approach to go with some of our partners i don't know anyone who's just unanimously in favor of this even on the right. >> well, and there are some republicans who are saying the fact of using national security as a vehicle to essentially tax allies for these imports weakens

the statute on national security if and when they need to use it for other issues canada and other allies have also been very vocal over the last few months in saying they are going to be doing more to combat transshipment of chinese steel analuminum that are essentially flowing through their countries. and the u.s. have given them signals that would be enough but clearly those talks have broken down in a big way in the last month or so >> all right, kayla. kayla tausche joining us as you can see. i think that's washington. that's a big building there. >> it is >> yeah. let's bring in carlos gutierr gutierrez. you heard what we were just talking about. >> yes, of course. >> what are your -- do you have a list of both positives and negatives about the trump administration's approach to trade? or just negative >> well, i think that we have to address and it's not a bad thing to address trade and constantly

be addressing trade and looking for imbalances and looking for things to fix. so yes, on thaside, i give them some credit the problem is how we're doing it and the strategy with which we're doing it so you'd think that we would want to get some allies first and then confront certn countries. but we have managed to pick the fight with everyone in the world. just to give you a sense of what's up in the air, we have a 232 invoked on the basis of national security for aluminum and steel. we just started investigation on a new 232 which would also invoke national security to give -- to put tariffs on automobiles. we have the 301 pending with chinwhich we will announce tariffs and products which happens to be three days after the korea summit the 301 mechanism also includes investment restrictions. so u.s. companies will have to go through an approval process

before the venture with the company or investing in china. and then finally, there's reform where we're looking at it is a bit more difficult to informs in the u.s. you are mentioning even conservatives. it is like we have a republican agenda when it comes to tax reform and regulatory reform but we have, it seems to me, a bernie sanders agenda when it comes to trade >> we had an administration official on earlier this morning talking about the president's first 500 days in office his point was these are things that the president campaigned on we shouldn't be surprised. this is what the american people elected him on >> yeah. and i think trade is special for the president. i think there's something deeper about trade. whether it's something that we learned at home. whether it's something he discussed a lot with his father. but this is something he truly believes in. it's not something he can give away

i'll tell you, he'll always come back to this so when is the end of this trade war or whatever you want to call it as long as president trump is president, he will be focused on trade. that's not bad but we're focused on fixing the wrong problem. the problem isn't the deficit. and as long as you keep on focused on the deficit, then you're going to manage trade and you're going to get in trouble >> it's not necessarily the problem, but the ramifications of it are just at face value, they're very disconcerting if 800 billion leaves go in an then -- it's self- -- it's sort of self-correcting we will no longer be able to consume more than the rest of the world because we're suddenly, you know, sort of mortgaging on our future for our current consumption. >> i get that. but it's a model, right? and those $800 billion are

embedded into our gdp numbers. and we'regrowing at 2.5%, mayb 2.8%, 2.7% that's what counts and trade is a tool to enable you to grow. there are countries that have had surpluses who hat grown their gdp. and i'll tell you. last time that we had a declining trade deficit was during the great recession why? because we did less commerce so be careful what you wish for. >> in terms of going after bad actors, look, if youo focus on thdeficit,na is probably the biggest problem. they're half of the deficit as we heard from kevin rudd earlier today. maybe it makes sense to get some of our allies as you mentioned maybe bring canada, some of the european players on board. that's what you're kind of advocating >> i'm just saying that if you were thinking about how you would go about it and developing a strategy, that's probably

something you'd think about is maybe we don't go at it alone. maybe find some fr some allies no, we picked a fit on our friends and allies so we l alone. we're isolated >> i heard report fromn npr reporter in germany saying that some people in germany some voters are very frustrated. not only with the german government but also the eu government for allowing it to get to this situation. for allowing things like unfair tariffs where they think even it's a clear cut case. where they impose tariffs of 25%. we impose tariffs of 2.5% on some of those situations that has donald trump looking at things like german car imports saying, wait a second, this might be something we take aim on i was surprised to hear that germans are upset with their leaders for allowing it to get to such an uneven position >> you mean with china >> no. they said with germany

they're upset for there to be such low hanging fruit >> i think they'll be more upse leaders are caving in. and that's one thing that i don't think is going to work i don't think you can put a gun to someone's head and say let's negotiate. >> meaning populism is running rampant everywhere >> the sense we have national pride. you know, the chinese had their 100 years of humiliati with the wars they were forced to buy opium at gun point. they don't forget things like that mexico has its own issues. they're not going to give anyone a sense that they're being pushed around. as long as we have a gun on the table and we're saying we have tariffs over your head, unless you give us a good deal, we're going to slap those tariffs on you, it's not going to work. and we saw it with secretary ross' visit.

and the eu, of course, is going to come backus in the mean time, the world is splintering. you know, it's splintering into regions. and even with data transfer legislation, we saw the eu just came out with their gdpr that's very different to what india's thinking about and that's very different to what china's thinking about. so we're going to have a world with all these regulations that don't make global business models make sense. which is a real shame. so all of this is our unintended consequences of this trade fight we've picked >> all right mr. secretary, thank you >> pleasure. when we come back, two big events happening in chicago today. and cnbc is on the ground at both of them mcdonald's is moving its headquarters downtown in the windy city as part of the fast

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welcome back, everybody. the world's biggest cancer research meeting kicking off in chicago. meg tirrell is there and joins us with another special guest this morning good morning >> good morning, becky the special guest this time is the ceo of bristol-myers thank you for being here >> thanks for having me. >> i want to start off with data that came out from a partner program you have with nectar investigators looking confused by that da pa. nectar stock down on it this morning. what can you tell us about that data and whether or not that will make your drug optivo work better >> the data will continue to evolve and the reason why i'm interested in it is it's really

one of the three dated mechanisms we have one is aisle two opdivo and we are in a unique position as a company. we can work on all three that gives us tremendous flexibility to combine them in a brad range of patients so i'm quite excited about where we are and the opportunity to work on all >> you're making a big bet on this partnership you paid almost $2 billion to nektar for this. do you think the investors are misinterpreting the data this morning? >> we're conducting a number of studies with nektar. this is one of our important programs i'm excited about the fact we have a broad pipeline which we have built deliberate ly it give us great opportunity to advance the field. broadly as a company, we are

very well positioned >> let's talk about where you compete with merck and others. the highest unmet need, huge problem. but also a huge market the market seems to have said merck looks like the winner here your chief scientific has compared opdivo and merck to pepsi and coke how do you look at your position there? >> when you look at the data, there is no difference between those two medicines. in fact, we are presenting quite a lot of data at asco. the data we will be presenting today in a group of patients with lung cancer, the combination of opdivo and chemotherapy, that hasn't been presented by competitors i am most interested in data we are presenting today with a new biomarker where we would be presenting data that in

combination in a subset of patients presents much more durable and deeper responses that's really important. our objective is long-term survival there's much more to be done and i'm quite excited about the data i'm confident our medicines will have an important role tplay >> we're out of time one last quick question. president trump said in two weeks we'll see a voluntary price cut on medicines are we actually going to see that >> this is a really important issue, in fact because providing access and affordable access to patients for medicines is really important. the administration hasn't really brought plan i think there's three areas that are important. one is affordable medicines. so reducing out of pocket exposure for patients through good insurance plans the second one is we want more flexibility with pricing to be able to price our medicines based on that. and third is reward for innovation we're a growth company

we're extremely well positioned for growth in the future we have a great pipeline so access is really important for a company like bristol-myers squibb >> thank you very much back over to you >> thank you a lot more coming up today from the asco conference. when we come back, hope you're hungry. mcdonald's opening its new headquarters as part of a bigger strategy at the fast food giant. carl quintanilla, our mcdonald's expert not saying you eat there although not saying you don't. i confess. what do you have coming up >> hey, joe. as you say, mcdonald's is in the midst of new chapters of the menu, marketing, new corporate headquarters here in chicago we're going to talk to steve easterbrook later onhi ts morning, but we'll get a preview when "squawk box" returns. polk county is one of the counties that you don't think about very much.

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i can't see that without thinking about a sausage and egg mcmuffin just the arches. morning. mcdonald's unveiling its new headquarters in downtown chicago. carl quintanilla is there ahead of this interview with ceo steve

easterbrook. anything -- carl, anything in moderation am i wrong is that saying not true anymore? right? >> you know, a big part of their business are customers who go many times a week. which i'm guessing you're part of that club. >> if we had one as close as wendy's that would be true i need fries a lot for my son. he will eat anything if you give him fries. but wendy's is our -- but it would be mcdonald's, believe me. best fries around. >> they're working on changing that and making sure that you're coming here first. they're in the middle of a bunch of new chapters. we saw that great q1 upside surprise on comps, if you recall, mostly international people wondering is the u.s. going to join that international group. but it's happening with a bunch of different things. all-daybreak fast was one of the big initiatives that easterbrook brought when we first came to mcdonald's three years ago now it's fresh beef.

and starting -- you're going to start seeing this in the next year or two where they're modernizing the store. i an, it's not going to look anything like the mcdonald's you're familiar with kiosk service. you'll go in and order at a kiosk. although you can still pay at a if y want to pay cash. there is table service, right? that's sort of new they're obviously working on mobile app, delivery 20 million people on the app now. basically trying to strike a new balance between the physical relationship of a store and the relationship that customers have with the technology. that's what they think is going to separate the winners from the losers in an environment where the restaurant business broadly speaking is still oversupplied it's really getting interesting here by the way, this new corporate headquarters we're showing you right now is a big move. they used to be headquartered here in chicago in the late 50s and into the 60s all the way up into '71 before they moved to oak brook. now coming back into the city like boeing has done, conagra

has done it's a more active environment obviously they think that's going to be good for employees and retention and recruitment. they even have a restaurant here in the corporate headquarters where you can order mcdonald's menu items from all over the world. last night we had the mcspicy chicken sandwich from hong kong, the mighty angus burger from canada this gives people in chicago a sense of how global this company is it's the most global food service company in the world with 37,000 locations in a hundred countries. a lot to ask steve easterbrook about. we'll talk about the dollar, talk about commodities, oil prices, consumer, and a lot more on "squawk on the street" at 9:00 a.m. eastern time >> and you talk about that stuff, i'm telling you, i swell with pride i don't work there, but there are people -- honestly, it's part of the tribalism of current

society. there is people that think mcdonald's is this -- i think it's just fantastic and amazing. and do you remember what got us into china, carl i think it was ping-pong or something. did you see what kim jong-un wants? this is our bargaining chip. he wants a mcdonald's. >> i know. i think that's a legitimate question for steve it's double sided. >> mcdonald's brings everyone together we're all the same we're all the same i want mcdonald's. i want it now. >> carl, not only that, charlie munger says that mcdonald's has been more important than the american university system in terms of getting people ready, training them in their first jobs, making them responsible, making them get together he said that mcdonald's has done more for that than the university system at large i know you hate when i say at large. >> i think you could argue that in terms of entrepreneurship, there's probably very few educations better than running a mcdonald's because these owner operators know every metric backwards,

forward, and sideways. a lot of them run multiple locations. incredibly, the way to succeed running a mcdonald's is to do the tiny things right over and over and over and over and over all year long. and that requires a lot of engineering and discipline that's an interesting point by munger >> i get it with obesity and -- but i think part of the culture that explains it, there's a whole group of -- a whole side of the political aisle that, i don't know, isn't as -- doesn't see personal choice the same way. if i want to have a mcdonald's, i may have it once every two weeks or something, carl and i'm still hoping to live to 140 or whatever. warren buffett has his cokes he doesn't even get the diet coke he's 88 years old. he's as smart as a whip. he's been drinking a couple of cokes with sugar every day so it's weird. it's weird the world we live in right now. certain people, if you tell them you like a coke at mcdonald's, they look at you like you got,

like, six heads. >> i will counter, though, by saying these new kiosks we'll show you later on, you can go in, order a quarter under with no salt. or fries with no salt. >> yuck. >> can i get double salt >> sort of the personal responsibility element plays in there too. >> right can i get double i open up like four packs of salt at once for the wendy's fries, just so you know. there he is. look at this >> yeah. that's right >> you know what, carl i do -- i've used a kiosk and my name comes up by magic on the -- >> at mcdonald's >> no. wendy's. but that's not me. >> wawa has them too. >> what? >> wawa. >> mama. >> they're good. >> carl, have fun. >> bring us back fries >> what kind of fries you said they had where was that >> bacon and cheese loaded fries. which we think should be national here. but apparently the supply chain

is -- >> heck yes. heck yes what country is that is it close? >> australia. >> ooh, no that's far away. we had kevin rudd on earlier we should have asked him about that that's a question we missed. thank you, carl quintanilla. >> see you later >> it's good to have you on. you're looking good. when we come back, we're going to get you all set for the week ahead on wall street. we'll be talking market strategy, oil prices, and the dollar next. daif david bianco has thoughts on that dow up 130 points. nasdaq up 20 points this morning. s&p futures up by close to nine. before we get to all that, a potential warning sign for the economy. steve leisman, what do you have coming up? >> we have a strong jobs report on friday. a new survey out looking for strong gdp this year, next year, and this year. but is there a warning sign inside those numbers a recession warning sign we'll talk about it when "squawk box" comes back. an act of mutu.

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good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market si in squawk square new york i'm joe kernen along with becky quick. the national association for business economics is out with its business survey and steve leisman is here with the data. were you looking forward to the data >> always. >> did you know -- i'm looking forward to it because i figure it's good. i'm looking forward to it -- is it good? >> i'm so slow and you prey on that a little bit, joe >> here's the thing. i don't know the numbers right now. i'm looking forward to it. i figure they're pretty good >> you're also not an elected official to which directed by the regulatory affairs may or may not lie. >> i assume they're good >> they are good which is why we're going to talk about a warning sign

strong jobs report prompting new optimism about the u.s. economy. but also a warning about what's next take a look at the national association for business economics, their latest survey you can see gdp 2.8% this year 2.7% next year don't be disappointed it's not 3% it's a full percentage point above -- >> hey, dude i'm an atlanta fed follower. >> inflation, modest even coming down in 2019 strong job growth. double the growth of the working age population 154 is a good number for 2019. unemployment rate down to 3.7% fed funds ticking up to near 3%. maybe a bit above neutral. these kind of numbers propelled by strong fiscal stimulus have pushed off any at the end of 2019 at the earliest. a majority of respondents do not

expect a recession until 2020. some see a warning sign in that low unproimt rate. robert kessler writering with quote, last time the unemployment rate was this low was directly ahead of the end of the historically longest ten-year economic expansioexpan. a low employment number is a reliability late business cycle indicator. we can show you that in a graph. all the gray areas -- for the people on the radio, you can't see them but it comes several months before the recessions. the average number of months prior to recession we hit the low, 5.4 promonths >> but is that any surprise? it's always darkest right before the dawn or the opposite >> exactly our pride in your unemployment rate comestrth before the fall do not count on this unemployment rate to guarantee --

>> past performance is no indicator. >> tiply bottoms before the recession. no one would know in advance what that is or could stay down here just showing that. the key to the outlook is how it is above trend growth spp it a sugar high to push up inflation. or is it a change in the underlying economic dna. aning there's more scope for lower unemployment and higher productivity with less inflation. my best guess on this fed with some of the trump appointees in there is policy and ideas and i'm persuad by randy quarles last week. they're going to let it run. i think they're going to let it run. they're going to watch it go and not push the trigger that fast on slowing the economy before they're clear there's higher inflation. >> i feel the fed is on our minds a little less lately

and i want them to be. i want them to extricate themselves from being in every aspect of our daily life for the last ten years every day and this is handing the baton to the -- >> is it me? if there was a different fed reporter, would you care less about it >> i think it will be even better for you that you cover economics instead of the monetary policy >> you're right. i've wanted that for a long time by the way, the reason is because the focus on the economic outlook is twofold right now. it's on the fiscal policy and how the tax -- and it's on trade. those two things have taken th major motivation or stimulus -- >> i think it's the unemployment mandate that's screwed them up if they had just stuck with monetary stability -- if that's all they did, we'd never talk about them. >> go to congress. that was their mandate >> i don't know. chandler's here. he's always got -- >> steve, thank you. >> pleasure. we're going to talk more about this with our trading block right now. talking oil this morning, john

kilda. on currencies, mark chandler and of course david bianco is here david, i want to start with you. if steve's right and this is the situation and thd lets it ride, what does that mean for stocks >> well, what it means for stocks is that things are going to be fine mostly because the economy is fine and inflation is still benign i think the fed's going to hike. i don't think they're going to get as high as 2.9%. i think neutral is lower than that, but it's higher than where we are now and as the fed hikes, the ecb's not going to be hiking any time soon we think the dollar gets stronger i think what you're seeing now is a little bit of a bounce on the euro because the worst fears out of italy are passing but i think the euro's got another nickel of downside here. >> what do you think >> i fully agree a lot of bad news in italy last week has sort of taken a back

seat here. so i do think we get a bigger dollar rally still the miss of the first big dollar rally we had the reagan dollar rally, the clinton dollar rally, now the obama/trump dollar rally i think it's got legs. >> is the market prepared? is that what the consensus is right now? >> quite the opposite. you know, the commitment of traders in the futures market are longer the euro today than the end of last year the net position if the longs are minus the shorts, it's near record levels. so i think the market -- many people in the market are fighting this dollar recovery. they didn't think the dollar could rally while trump is the president, during trade wars but here we are. >> let me ask you how all this plays out. global growth looks like it could be slowing particularly in the eurozone, some of these places you look. then you have the dollar moves as well. how does that all add up

>> this dollar move actually crushes some of these other countries in terms of the price of oil for them and their local currency we're buffeted from the rally wee seen to a degree but india, other countries, have complained to opec about the recent price rise. the other issue they might have to the demand question you're talking about is that the chinese apparently are in the process now of cracking down or restrictinan activity. that's a report from fitch that came out overnight too that's very important for oil demand and they've also directed their independent refiners to dial it back over the course of next couple of months too interestingly, we started to see some cracks in the demand picture. last week, a couple of cargoes that were offered for tender went begging they weren't purchased theyltimaty will but it's another signthe market's not all balled up right now and grasping for every available barrel part of it is u.s. our exports are now consistently for the most part 2 million barrels a day. and we're starting to eat the

lunch of west african producers. i think that c issue was partly due to our sales as well. china stepping up their rchases. so we're definitely a player in all this now >> hey, mark five years from now, we will still be talking about the euro? the probability in your view that's the case, is it 90% 60%? >> that the euro survives? >> yes >> i think it's very high. i think the -- to understand europe is to understand it's not an economic construct. it's a political construct the political will is still there. i think the euro survives. >> it would be nice if it was an economic construct right? if you do it politically, it doesn't guarantee it works economically that's really what makes the economy stupid i'm not calling you stupid but isn't it the economy that matters? >> sometimes i agree with you, but here i think people make the same argument about the united states when we were founded, people speculated against the u.s we couldn't have slavery in the south, capitalism in the north >> the united states is like,

you know -- >> at the time i think there's a show down the road here -- >> i talk about the euro and people go cry. >> thank you good to see you both ron! soh really? going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management.

you likso do i.urs? hey blue. i brought you something. okay. we're getting out of here. you're welcome. run! holy! this is gonna be awesome. rated pg-13. it's today unbelievable apple kicks off its annual worldwide developers conference today. josh lipton joins us now with a preview.

good morning, josh >> good morning, joe the focus is on apple software reports suggest apple will give a way to monitor on devices. encouraging them to help parents limit phone use. gene munster also tells me he's going to be looking for apple to improve siri today so the digital system can work with new kinds of apps, he said. perhaps in new categories like commerce and an update to arkit as they look for control of the augmented reality. there have been 11 new hardware announcements. today rbc thinks apple could refresh its macbook lineup and potentially here introduce a new phone too. the se-2 this conference kicks off as

apple stock has been on a roll up 13% in the past month back to you. >> okay,h. thanks for that report out there at the -- what's it called bbg? boy genius yes. jonathan geller is here of boy genius report.waiting, waiting i don't know if they need something to shake the world they're doing just fine with add-ons at this point? >> this is a year where prior apple doubles down on a lot of the foundational elements of their software where 11, 12 years out from, you know, this ios unbelievable kind of world-changing mobile software, there's not so much left to do there's not so much low-hanging fruit. i think instead of a lot of new features this year, they'll say stability, speed, performance, security

beef up a lot of those areas and maybe next year we'll see a more radical refresh. >> an amazing ecosystem. i can't believe what you're carrying around with that little iphone it struck me again yesterday we're trying to get enter to catch a train for one of my kids, and we left late we didn't realize it we said we'll never make it now. you put in google maps on an apple iphone, it gave me the exact time -- waze takes me to weird places i saw we had six minutes to spare. in the old days, you didn't know whether you could make it. totally would change your plan or when you're going somewhere and you don't know you'll hit traffic. the whole world is different >> it's about proactive features now. in the future it'll say -- and it does this to a certain extent now. you normally take this route at this time, there might be traffic before you leave why don't you take another route instead. so you'll start to see a lot of that ai, quote unquote, driven

fiep of action in the future >> what's josh lipton going to be talking about tomorrow? >> ios 12 is going to be the big thing. huge speed, security, performance, improvements >> download it immediately >> so you're not going to be able to download until the fall when it comes out install? >> that's today. i'll have it on my phone which will be a nightmare for the next three months but i think the interesting thing about what they'll do today rumored no hardware contrary to a couple of notes. i don't think there will be hardware today a lot of digital health. i think you'll see a lot of focus on that. screen time important. mental health. there's a lot of things that i think are pretty big they're going to introduce today. >> helping ways we don't even know yet by the way, do you use your real phone when you download stuff or have a fake phone? >> i do my real phone.

>> you are crazy. >> thank you for coming in. good to see you. >> great to see you, too when we come back, cramer wl iniljo us live at the new york stock exchange. stick around once there was an organism so small no one thought much of it at all. people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's

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president trump just

tweeting china already charges a tax of 16% of soybeans canada has all sortsf trade barriers on our agricultural products not acceptable sad. no he didn't say sad he also tweeted that the u.s. has made bad trade deals over so many years we can only win let's get down to the new york stock exchange and jim cramer joining us. i look at faang and microsoft. is it enough to power us through trade angst and it becomes secondary or are we at the whim of every possible set back >> i think we're at the whim of the set back you buy the whim because it seems that there's always something that comes out that is good let me tell you where i don't like the narrative this is important. where is it that the status quo is good? where is it right that it's good that our steel companies don't make enough money or that our

country accepts any amount of bmw and mercedes where is that somehow good for us and our stock market, joe that's the conventionaom not tr. we would do better if we sold more cars ourselves and the germans sold fewer we would. >> we don't know the counter factual, jim it's another one of those times we don't know. and we have seen status quo through one administration after another on both sides. so you're right. you're right i guess we'll know at some point if it blows up in our face trying. >> it's like where is the status quo in italy was good. 11% unemployment some places 50%. inability to be able to pay for themselves where is that good why is that the right thing? so i think we have to start questioning some conventional wisdom and we make our decisions about the stock market because it's not right the idea of selling on all this conventional wisdom is up ended. has been a sucker play for two years now. >> good point, jim

i'm going to think about that. because i'm almost done here i have some free time. thank you, jim we'll see you. you are not. you're justing a big interview coming up on "squawk on the street. don't miss the conversation with steve easterbrook. you're gonna do great! thanks, dad! break a leg! aflac?! not that kind of break. oooh! that had to hurt. aflac?!

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posting modest losses. welcome back a programming note for you ken langone will be our guest host tomorrow 7:00 a.m. eastern. thank you to david for sitting in with us this morning. some parting thoughts. >>st it a great show it's a great show. we should wish for a world without tariffs and i enjoyed the comments of the $800 billion trade deficit is a misleading number i think it can tell you that the profit margins on corn flakes are higher than the profit margin on avocados it's not money going from our pockets to their pockets think of them as sales numbers rather than profit numbers. >> that's a comparative advantage we're talking about. there's some things. >> it's always value added. >> as we had the former prime minister with australia, the

cycle can be long lasting. australia holds the record of 26 think the u.s. can do ten to 15 years we're on year nine. >> good to see you, david. >> several years away. make sure you join us tomorrow with ken langone. right now it's time for "squawk on the street. ♪ good morning and welcome to "squawk on the street. i'm david faber with jim cramer. we're live at the new york stock exchange carl kwinquintanilla is in chic where we'll have an exclusive interview with mcdonald's ceo steve eastbrook. we're set up for a higher open this, of course, after the strong jobs numbers didn't move the market in a north ward direction on