tv Squawk on the Street CNBC June 11, 2018 9:00am-11:00am EDT
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it's not there yet. >> okay. great to see you thank you for hanging out with us. >> thank you for being with us today. remember join us tomorrow at 5:00 a.m. when we start our coverage of this historic meeting coming up. thank you very much for being with us today. tomorrow the north korea summit. again, that's it for "squawk box" today joe is about to take a bite. quick, take a picture! right now it's time for "squawk on the street." >> good morning welcome to squawk on the street carl quintanilla with jim cramer david is off today busy week ahead with the fed, the ecb, the boj, and the u.s./north korea summit. europe up on reassuring comments from italy today the road map begins with
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shrugging off tension. futures are steady ahead of the singapore summit this evening. the white house escalates criticism of one of america's closest allies and a big week for media awaiting the fate for at&t time warner the president is in singapore. the meeting with kim jong-un in 12 hours the president fresh off the g7 summit in canada the administration refusing to sign the joint statement from the group. the president calling justin trudeau dishonest and weak and the president's trade advisor peter navarro went on television and took it atep further. >> there's a special place in hell for any foreign leader that engages with bad faith diplomacy with president donald trump and tries to stab him in the back. and that's what justin trudeau did with the stunt press conference that's dishonest justin trudeau did. >> larry kudlow said it was an
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amateur political stunt. we're not sure what they're referring to what they saw on air force one much. pset the president so >> this is rather amazing.t me know peter from way back but my theory is that the president takes a look at the pan plea of g7 actors. and he invites russia in, of course, which is inflammatory. frankly, he didn't see the old bipolar world. it's not russia versus the west. it's for every man for himself he genuinely believes we have a bad trade situation with canada, whether we do or not if you insult, he thinks you're -- so canada has no right to insult a big country like the united states. now remember in his defense, okay, on this way of thinking, the russians and the germans are neutral. he doesn't really care he just knows that everyone should arm themselves and we
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spend all this money on nato and they do nothing. relatively so, i mean, he doesn't see anything to lose he doesn't regard anyone as a friend or foe. he just regards people as, you know, trading as countries that don't trade fair and russia trades fair and russia has the ability to lower oil. what canermany do? nothing other than take up space with mercedes and with bmw now i'm just saying this is what my worth of them shows i'm not saying it's right. >> the relationships are transactional. >> yes. >> thank you merkel is not a friend merkel dumps a lot of cars here. merkel doesn't dump cars here. the fact they don't make any cars they would dump here is irrelevant to him. let's understand that he's trying to figure out whether we were wrong on ukraine or not. >> going back awhile
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markets today don't seem to believe these alliances will break. >> okay. all right. here is what i think the markets are thinking and he's right i thought the futures would open down big i'm old school i'm of the thought that perhaps we're in a bipolar world there's the west, which is good, and everybody else the market, by not being down is saying trump is right. it's not saying it doesn't matter it's saying trump is right because if trump were wrong, the market would be down 20 or 30. it's inconceivable to people in the media and people who studied things that the market wouldn't be down. but the market is saying trump's right. >> right about >> about trade and what i'm used to -- we're not used to it i mean, the market says that
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general dynamics. we'll see what they do let's see what they do i know this is hearsay but the market thinks it's positive. and i know that is just hard to say. >> some argue today the italian finance minister said that an exit from the euro is not in their thinking they're not looking forward. >> the market liked that the market liked that because they know that nationalism elected in italy and therefore they figured that italy are leery of that. i know everything i said seems counter intuitive. i encourage people to come up with a reason why the futures are down big. >> what happens when the eu tariffs we're expecting in response take affect at the end
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of the month >> we block bmw and mercedes i think that will be a rough decision by them by the end of the year, i think, i'm sorry, even before then we're going to block china from buy anything there's another theory, thank you, jeff, that said the market doesn't take trump seriously i think that's completely wrong. if they didn't think the president was serious, they didn't think the president mattered or that he's just comical like it's all the apprentice, then the market, again, would be down big the market likes what he's doing. the market questions why we're so we continue to pay for all the defense of the west. it doesn't make sense. because it's not the bipolar world. >> right and the other end game some would prefer and that is organize your allies european allies and turn to chinese market instead unify. >> i think that trump thought that would happen because but
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what he mistook is that germany does a lot of business with china. that german economy needs to sell bmw and mercedes. that was a misjudgment, i believe, by the president. i think he felt would candy would rally around against china. that navarro would be obvious to people navarro may have gotten wrong is these countries need china more than we thought. because china is a big market for them and they also, obviously, put a tariff on our cars, which navarro is right about i just think, again, i'm not saying this is how i feel. i put in the camp of the bears explaining to me why the futures aren't down big. some say it's because people don't take trump seriously i think that's completely wrong. completely wrong. >> sure. >> what it is that there are enough people who look at the futures and say hey, you know, the futures look at it and say hey trump is right
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you know, game on. and we forget that until we see a tariff on bmw and mercedes, people feel like it's influx and trump will win. i know it seems nuts, but, listen, we have to stop it with the idea he's a fly by night. >> we're looking about explanations for the market. in the next 24 hours history is set to be made as the president meets with kim jong-un. our reporter is live in singapore with that. good morning, michelle >> reporter: good morning, carl. we've had new developments in the last half hour the white house now says that kim jong-un and president trump will meet one on one alone together with only translators they say that the progress of the talks has been moving along faster than expected and as a result the president is going to leave earlier than expected. 8:00 p.m. tomorrow night this comes as there are reports in singapore that kim jong-un was scheduled to leave at 2:00 p.m. just five hours after the summit was supposed to start.
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now president trump arrived only last night air force one landing roughly right after 8:00 a throng of reporters waiting there. when he landed last night, the understanding was that perhaps this summit could go two days if things were going well he said maybe it would go three. his arrival very different than kim jong-un's arrival. we didn't know kim jong-un was in the country until the foreign minister of singapore tweeted out this photo and then to the surprise of many, kim jong-un arrived in a boeing 747 from china's state owned airline air china. he didn't arrive in his personal plane which is is a soviet era plane from the 1960 because it can't fly very far and seemed to limit the location of the summit it's a clear signal china trying to maintain the influence with kim jong-un. as the motorcade you see the
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body guards running alongside of it there's so much curiosity about him. there's also a lot of curiosity about the summit which, as you mentioned, starts 12 hours from now. and u.s. secretary of state mike pompeo briefed reporters a few hours ago. >> president trump is going into the meeting with confidence, positive attitude, and eagerness for real progress. he has made it clear if kim jong-un denuclearizes there's a brighter future for north korea. tomorrow we'll get our clearest indication to date of whether chairman kim jong-un truly shares this vision >> reporter: so on the one hand, there's going to be a one on one just the two of them between kim jong-un and president trump. on the other hand, they both seembe leaving earlier than expected hard to know what all of those facts mean in terms of an outcome. guys, back to you. >> there's the leaving early element, michelle, as you said the white house statement today talks moving along more quickly than expected. hard to read into this and
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dangerous to read into it at this early stage >> reporter: it is dangerous to read into it this summit has been unlike all previous summits in traditional diplomacy, there's a lot of negotiation that happens months and months before between lower level bureaucrats and the intention is that ultimately the two leaders sit at the table for a deal that is already predetermined and they close the deal. that was never how this was going to work from the beginning. in is a complete reversal of what we've seen in the past. so it's very difficult to know what it means. >> jim, how do investors handle today? >> i think we want to see what china does i think that if china is at the table, which it's not clear if china was a signature to the initial truce then i think that north koreans will have come to play i think north korea -- think we've discovered that. i think if president trump pressures the chinese, then something good happens >> you know i don't like it when
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you talk quietly. >> there's nothing there in north korea. they would immediately go away the moment there's a truce an actual end of the war. >> yeah. >> say the war ended then north korea would lose 1952 the chinese decided to make it so the north koreans wouldn't have a truce they had to. the north koreans were a government then. >> would you rely on verification through china >> absolutely. >> you would >> absolutely. >> you would have the u.s. take china's word >> i think china recognizes what is at stake here i think the chinese, this is not -- i think if we did a trust and verify it would be similar to russia under reagan at the same time, we have to remember it's eastern germany and west germany there was time in my life when the idea that east germany would ever go away was inconceivable but the russians changed their mind and let the wall come down. i think that china can
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absolutely agree to the united states but that would be sacrificing the regime of north korea and north korean regime will go away that's something i think very much trump wants i think that's what is expected. i think china is willing to do that provided there's a buffer somewhere. they need a buffer they don't want us to be on the out. >> it's not been telegraphed as a key strategy of the talks. >> it has to be. there's no reason for the north korean government. north korea is a buffer against china. there's not much to north korea. if you denuclearize them and created some sort of buffer state that went so china was not -- did not order a capitalist state, i think it would work i just don't trying to envision what would happen. they don't want south korea to be on the out. they don't want korea e one nation. >> right. >> that's what they want.
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>> truly historic times, potentially. we'll see what happens obviously tonight eastern time when we come back, it's a big week for the med sector. comcast has their shareholder meeting today. judge leon expecting his decision sometime tomorrow another look at the premarket. s&p and nasdaq coming off three straight weekly gains and futures pretty steady and improving a bit over the course of the morning back in a moment let's get started. show of hands. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the plprice and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trad
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important week for the media sector including a decision that could have a major impact on the m & a. tomorrow judge leon is due to issue his opinion on the at&t/time warner deal. comcast holding the shareholder meeting now. we're monitoring developments on that but, man, six week trial months of waiting. it's coming down to it. >> yeah, you know, when i spoke to the assistant attorney general for anti-trust, i mean, more confident than ever it will be blocked this time warner.
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that there's a tremendous possibility that your bill goes that's all he's about. and then, look, i read between the lines he'll do something enforcing his position even if he loses in court. so -- >> how would that work >> he can try, you know, sue to block something. one of the things we're all kind of thinking that is wrong is either/or. that the or a loss i think that's not going to happen i think there's some parts that the government is going to win and some parts the government loses. which would then allow comca to go forward with the bid the next day i know that in the discussion that i had he's pretty sure he liked the way disney approached its deal with fox. basically breaking out exactly what they feared the government might do
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i think on the one hand, disney came at it in a way that was very convivial, to use the word with the government, and another way the at&t cing out the saying the government is -- that's a bad mistake. >> and their legal strategy? >> very much a miscalculation. >> so you think there's still room for some kind of fox deal to go through? >> absolutely. absolutely i'm not even -- i think there's no matter what there's a belief that whatever happens tomorrow positive for whatever happens with fox i think that's a false narrative. >> are other vertical mergers -- >> absolutely. it's game on i don't know why is it my legal training absolutely not none of this really matters as much as the idea, i mean, in other words if you read the time warner brief, it's all about whether under the clayton
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anti-trust act did the government prove that there was substantial harm the whole thing was key on the word "substantial. and the whole case against this thing was not about substal versus not it's bad for the consumer. it was another misjudgment by the at&t deal. lots of misjudgment by at&t. >> so summarize your prediction at&te warner does not happen but other big vertical mergers still have space. >> yes that's my view and at&t some of it will be able to be going forward. other parts will be in favor of the government and the government will use that opening as a way to continue to block that bid in part, because i believe when you're in the face of -- never go in the face of the government they have unlimited fire power and at&t approaches things as child's play that was a miscalculation. one of the things that happens when you say that it's
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miscalculated. they'll never let anyone in the media get away with it they'll come back with a oliver wendell holmes challenge me. i don't give a damn. i'm telling you what i think is going to happen. and mr. dellrahim was pretty good when i spoke to him last week he was adamant that this is going to be in some form he's totally under estimated by at&t he works for the government. one of the things i learned over the years when someone works for the government, they have a bit of an edge. >> we're going to hopefully find out tomorrow we'll get cramer's mad dash and the opening bell in a minute another look at the premarket. more squawk on the street on an important week continues
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♪ six minutes until the opening bell we'll get cramer's mad dash on the busy monday. >> let's talk about this this is the kind of thing that must drive the people who think that the trade war between us and our allies is really a problem. it's a german company. they've been $44 for usg which is a registered trademark. if things are so bad, why would one german company bid on this the answer is because it's an inexpensive company. two, because housing is good you get a lot of negativity about housing because we've seen the housing stocks kind of plateau. we've seen stanley black black &
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decker not do that well. we've been wondering but i would tell you home depot stock as it sneaks up is emblematic of what i see. mass coe is better than people think. i think stanley is better. i actually even begin to question if the raw costs come down that sherwin williams is good this is verification to me tha housing is alive and well. it's an important bid. >> yeah. >> warren buffet was tired of this. >> what do you think it does to pricing of this building material >> there aren't that many companies in that business anymore. i think pricing has been tentative, as always because it's very expensive. you can build a support plan for quickly. why would the company spend all the money and take it out of warren buffett's hands if they didn't feel there was going to be price increases and strong demand i think it's part of a larger
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from brighthouse financial- established by metlife. you're watching "squawk on the street." opening bell in 60 seconds on what some are calling the busiest week of the year so far between the north korean/u.s. summit the g7, obviously, the central banks around the world the fed, on wednesday, with the presser and following acpi tomorrow. >> this is a huge week and i believe that they'll do what we expect i think the bank stocks started looking better a lo positive analyst talk very few negative analyst
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stories. and that creates a very good rosie view more important than trade. more important than trade. [ opening bell it's strange to say there's a preponderance of evidence that is good. we had few earnings this week and last week but they're great. people are saying let's go back to that rate employment number that we had. because that has -- that created a huge wave of positive june days that we've had.
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you keep going back to that. you say, you know, we have growth without inflation let's buy stock. the case against stocks falls on the idea that united states is having wars trade wars with canada andmany but as i said, i think the market it. the market doesn't understand why we should keep paying for german defense. >> yeah. the nysead line fresh highs every day. >> i read a bunch of stories about that everyone said therefore it's bad. therefore it can't continue. no oneays the follg which is that's good this level is so positive. we don't know what to do with it we've seen a market driven by faang or the market driven by inflation driven or the market that does well with the banks.
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we don't seem to know what to do with the market that is good. >> right. >> but like that february jobs number it was a scare on wages. >> yes. >> is there a possibility that a truly hot cpi does that tomorrow >> i think it will contradict what we saw with, yes, that would change the positive that we're in everything has to go right but the market is saying typicalit'o right. that's unusual the stocks seem to be breaking out all over the yes, is need to hang on to a really negative hot cpi number they need that so badly. >> 2780 on s&p. >> oh, man. >> yeah. right there. we're getting headlines out of the comcast annual meeting
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julia watching that. >> reporter: good morning, carl. just wrapping up moments ago the comcast proposals and directors elected as expected. of course, this comes ahead of judge leon's ruling at&t/time warner acquisition that ruling expected tomorrow afternoon. now if at&t wins, we can expect comcast to make its offer for fox's entertainment assets official here is what comcast ceo brian roberts said about his interest in m & a. >> as we discussed during our recent conference calls and web cast opportunities arise for us to create more value for the shareholders like nbc universal our current offer for sky as well as our announcement last month we're also considering and are in advanced stages for preparing an offer that the businesses fox are selling is perfect examples for this. we set the bar high, we haven't been and will remain disciplined. we are well positioned to have substantial opportunities for
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continued growth in the current businesses, and we're confident and excited about our future >> reporter: net neutrality the obama era rules are reversed as of today ending regulations that internet traffic be treated equally roberts said the company doesn't block and supports an open internet back over to you. >> julia, thank you very much. anything there, jim? >> i think that people have to, again, the parent company of the network. i think people just want this thing to be over over meaning launch a bid. let's see how much it's going to cost if you don't win, walk away. if you get it up, if you don't get it up. as long as we're just nothing happens. just bad that's bad because there's no reason -- there's no catalyst to buy the stock. you want this thing. you want comcast to win or you want it to start buying back stock. right now we don't know which is
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going to happen. that's the thesis behind owning the stock. >> yeah. i thought it was interesting today the journal looks at star india as a key component of what both disney and comcast are after. 700 million customers a month coming off a flip cart and walmart and amazon. >> people don't understand that you can't let -- you can't let india go walmart had to get india they had to. they lost china. it's almost like 1947 who lost china. no one wants to lose china but what i worry about is bob iger doesn't want to lose these assets so your first bid and your last bid. if it's not your last bid, then comcast stock will be under pressure until it ends. >> yeah. meanwhile, some flattish action all though airlines stand out this morning up a percent and a half on big names. barrens like southwest.
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>> yeah. i agree with barons. southwest has gone down. they've all gone down. every time one of the airlines last week said that fuel has hurt them, all of them went down all of them went down. on friday they pretty much stped going down i am betting that this g is toot the transports can start going higher transports haven't been part of this they've not been part of this run. and they come back and i think that the bulls, once again, will be even more in charge it is a remarkable moment. i mean, i spoke to jeff gannett last week. >> of macy's. >> yes and remember at $18 everyone wrote the company off. and at $40 everyone wants to be in the stock these are markets that are -- yes! >> i'm just thinking black friday it was about 17$17. that was the beginning of the huge push.
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>> he was buying back a lot of bonds. not stock. he cleaned up the balance sheet and now everyone is trying to figure out whether they can start recommending macy's. it's almost ridiculous to see how many people are behind that. the airlines no one upgraded them and then boom energy was not a good story. sre. and elliot decide to sent a letter a letter sre. a letter and the stock goes up huge it's almost like if you sent a letter to bristol meyers you can get it to 58 again, i think that the market wants to go higher and people are so kind of thinking okay what is going to happen because of trudeau, the shouting match with trudeau and the answer is the market doesn't care the market doesn't care. >> you mean the name calling they think it's noise. >> they think it's noise they think it's like, you know, when you're in back of class and the teacher says hey, why don't you share it with the whole class and they do and it goes,
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you know, why don't you share it with the whole class nothing. >> one thing to watch is apple's race toward a trillion dollar cap. >> yes now you're talking. >> $191.70 got to get to $202 and change. talking another, basically, another 6%. >> so last week there was a story citing sources -- it's hard to do with a straight face. citing sources that apple has cut back a lot of its orders now i have worked enough with apple that i have spoken to them and what they often say is can you believe that people still trade on those industry sources? this conversation has happened with apple a half dozen times. >> yeah. yet people still sell the stock. and what happens is it's just not the right thing to do. you don't know who apple is order from apple does a lot of business with a contract manufacturer it's fight club.
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what is the first rule of fight club you can't talk about fight club. what is the first rule of all the companies that do business n't talk about it. like, i'll try and go to skyworks and say, hey, guys, how is apple doing they'll look at me like get out of my face but, you know, if you say how is business they'll give you it's not bad. any time you trade off the industry sources, you are taking your -- >> it's a high wire act. >> yeah. mr. wolenda. then what happens to the trillion dollars, you have to raise your price target. and it's just -- it feeds on it. i've seen the markets. i saw this market in 1992 to 1994 i saw it 1997 to 2000. as soon as you mention 2000 people immediately say cramer said we're about to crash. no it's like 1998 when you sell apple off the
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industry sources you're a particular kind of moron remember the first amendment protects the right to be a chowder head. >> yes. >> yeah. that's the second amendment -- >> i forget. it was mo, larry, or jefferson i forget which one came up with that. >> finally, 7% is nonequity. ihob. >> i know. international house of pancakes is ihob. it's burgers all the theories about bacon and block chain and booze. >> they left out crypto currencies they should say they'll accept crypto currencies for cheeseburgers. remember how square did it sonic had a good quarter that's burgers so, you know, sonic -- burgers. >> yeah. coming out of mcdonalds the theory that we're still over stored on restaurants. >> your reporting on steve easterbrook was fabulous
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how cool is he >> yeah. and the kitchen and all of that. >> yeah. i pulled up at wendy's last week and they, too, were surprised that my wife liked the baconator given the 1,200 calorie. she liked the baconator? come on. it tastes real good. the fatator. dow is up almost 50 here we'll get to bob. >> good morning. happy monday mixed open but we're at the highest of the day marching toward 2800 sectors a little bit defensive at the open it's getting better. consumer staples, as well. energy a bit weaker. tech went positive a moment ago. the big debate over the weekend is we get to 2800. those passing through the march highs. that's getting close to the old numbers of january the record highs we have the right leadership tech has been strong and bank has been coming back retail verse done well in the
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positive earnings common tear. it's not right to say that the trade wars have no intact. they had a big impact in marge march. people are getting used to the confusion at this point. the feds this weekend don't appear to be over active and a lot of people se to be calmer because of that. what would be the catalyst for advancing at this point? we've seen the bye backs and dividends surging. if that keeps up, we could do $800 million in buy backs. if we reduce the share cap, and we have been this year about a half percent that's a big mover here. earnings are not peaking yet i'll show you in a minute. and maybe a breakthrough in trade in china would be a help on the trade issues. and the bottom line is the growth outlook is solid in the u.s. if you doubt me on this, look what happened to real estate investment trust they're supposed to be interest rate sensitive and doing nothing. it's up 5% in about three weeks. these are economically sensitive stocks yes, they're interest rate sensitive but utilities have gone nowhere improving economic outlook and numbers that helps companies in the read space, as well.
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that's being reflected today the key thing here is peak earnings i keep emphasizing this. i mentioned it on friday but 26% of q1. q3 has 23% we'll probably beat the q1 numbers in the third quarter we're not at peak earnings yet nunl of these numbers are coming down that's true for small caps as well as mid cap stocks i've been asked about the strong dollars. won't it hurt companies exporting? in theory, yes, i don't see it reflected in the numbers it's puzzling. this is the second quarter up 19% the s&p. if you look at companies less than 50% of their earnings in the united states, they're up 16.5 that's not dropping. those that might be affected by the strong dollar, the 24%, essentially, and, again, that's not dropping so, yes, in theory it should hurt it's not showing up in the numbers right now. i'm going to keep a close eye on that one finally, i want to note europe is doing well. generally most of europe is out
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performing this month. italy was strong we had the new economy minister talking about nobody is leaving the euro in italy. basically calming people down. you see italy is up. spain, germany, france we'll be waiting to hear this week about winding down the stimulus and whether that would be positive or negative. there's a big debate about that over the weekend bottom lin're sitting a the highest of the day, carl, up 45 points on the dow. >> fresh three-month highs for the dow and the s&p going back to march 12th. we'll get to rick santelli at the cme in chicago good morning, rick. >> good morning, carl. of course so many things, so many traders on the floor paying close attention to the trifecta of central bankers on wednesday, thursday, and friday the ecb and the boj and the everything going on with regard to italy maybe back pedaling. the economic minister that post started the squabbles to begin with the current seems to be saying
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the right things as yields move down in italy but up everywhere else one week of two we've moved up a bit. it's the fed meeting we have cy to move up. they're not huge moves but we're holding significant support on yields we all kw that tens for a small amount of time violated 28 on a closing basis italy's raising rates made everybody nervous. we'll get to europe. let's look at the one week of the bunds. and the bund deals popped a bit but they're not above 50 here is the real issue for today. look at the italian twos hovering around 109. the one week chart is great. we're down 60 basis points we haven't taken out the extremes of the range. it's been that volatile. look at the italian tens well over 3%. now they're at 285 down 27. what a wild ride i'm sure it isn't over look at the euro versus dollar that has some gains today. maybe the one currency everybody is examining this weekend is the
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canadian dollar. the dollar versus the looney certainly it's done better it hasn't broken out it's getting cse to some levels we haven't seen much of in 2018. carl and jim, back to you. >> all right, rick, thank you very much. rick santelli. as the world awaits the summit between the president and north korean leader kim. we'll check in with martin live in singapore hi, martin >> reporter: good morning. t-minas 11 hours before the summit just across the water behind me in a small island. 9:00 hong kong time. i'll get back to that. what i want to do, though, is get this out here. and this is amazing. we've got people on the streets reporters tweeting that kim jong-un, the north korean leader has left the hotel he's actually out and about and on the town and making the rounds of places iconic
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landmarks, including i'm not sure if you can see behind me, the sands. the casino so, you know, is he a brutal dictator yes? he's also a 30 something millennial i guess that's what you do when you don't get out much in this case, it's the longest trip he's ma outside his home country since becoming the leader back to the summit very high stakes the president earlier today was talking positive telling the prime minister of singapore that, look, he thinks it could work out pretty nicely but there is a lot of pressure on, i have to say, especially coming off that trip to canada to quebec leaving the g7 or the g7 filed communicate in tatters. the president cannot afford a decision like that he needs a win here. if he is able to get what he wants, of course, he becomes the president who finally manages to
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bring the north korean regime to heal for the north korean leader, though, this is interesting. they've been doing two things at the same time the last 30 years. the missile program plus trying to drag what is essentially a soviet era economy into the modern age they've got the missiles now but there's the military and the establishment going, lookwe devoted the better part of our adult lives to the missile program. why are people starving in some cases and eating leaves? he's got to deliver, as well back to you. >> martin, we're checking with the feeds to see if we can find out if and where kim will get out and move around the city thank you for that when we come back, fcc commissioner on the future of the internet as today marks the end of net neutrality rules. dow up 25 points to start a busy
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the digital divide is splitting this country. we have parents who are trying to get their kids off of too much social media and computers, and then we have parents who would only hope their children have access. middle school is a really key transition point, right. the stakes start changing. students begin to really start thinking about their futures. what i like about verizon's approach is that it's not limited to just giving kids new tools, it's really about empowering educators to teach in different ways, and exposing kids to more active forms of learning. giving technology is not a total solution. teaching technology, now that is.
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♪ time for cramer's insight trading. >> hold yours horses on a breakup with proctor and gamble. last week nelson spoke about corporate governments and he did not say that procter would break up but he did say there would be more accountability in the division then the stock went up that somehow he was saying there was a breakup. the morgan stanley piece is good, but the best one is deutsche bank saying breaking up is hard to do. if you're buying procter &
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gamble on a breakup, that's sorely misplaced if you are doing it because you have a balanced sheet and think they will get it together, then it is a buy. >> some of the headlines said hints act. >> yeah, i think those were wrong. what it did say was he wants to make it so there's much better accountability per division. and that was on the table and they were liking that. so i think that, again, don't expect that one day you're going to be able to get hair care and you're going to be able to get something involving drugs. expect the fact that there will be better accountability and don't get ahead of yourself, because nelson certainly wasn't encouraging that. >> that's good clarity and tonight? >> people are trying to figure out what to do with twitter. i have no idea what to do. just kidding, i don't want to talk about twitter let's understand, i'm not political. i'm responding to the fact that the market didn't fail to go down on what should have been a big down day >> the market going down is not an arguably fact
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that's what we're here to process. >> interesting starbucks has their own credit card over in china. i would have thought that stock would go up. that stock doesn't go up no matter what. because they raised the price. i had dunkin donuts and it was the same price it was. really hot and good. but it is still styrofoam. when does that nd? >> save on the straws, i know. >> which one was -- that was the best one. >> jim, we'll see you tonight. a live report from singapore as we countdown to the summit don't go away.
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♪ good monday morning. welcome to "squawk on the street." i'll carl quintanilla with sarah eisen. wa we have a consequential week with the singapore summit going on. >> that begins with a historic summit president trump is set to meet with leader kim jong-un in just a few hours. we're live on the ground in
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singapore with the latest. a special place in hell. the war of words against canadian prime minister justin trudeau after the g7 meeting and keeping an eye on top supreme court watch. we are watching the cell phone privacy and the trump travel ban, any of which could come in this hour. and we begin with the president leaving one summit for another. and lashing out at allies in twine following the g7 in quebec president trump called justin trudeau, quote, very dishonest and , before peter navarro took it farther. >> there's a special place in hell for anyone that engages in diplomacy with donald j. trump and then tries to stab him in the back on the way out the door that's what justin trudeau did with that stunt press conference that's what weak and dishonest justin trudeau did >> all this ahead of another summit, this time in singapore this time the president and
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north korean leader kim jong-un prepare to meet in just about 11 hours. michelle caruso-cabrera is there. we are juggling the reaction to what happened at the g7 with what we expect to happen in sing support. >> reporter: yes, peo was asked by a reporter this morning, how can you trust kim jong-un because the north koreans have defaulted on their promises before? and why should kim jong-un trust you after what happened at the g7 mike pompeo completely rejected that and still says, and president trump's mission for tomorrow's meeting is to try to get north korea to give up completely its nuclear weapons in the last hour, we have gotten a lot more details of the structure of tomorrow. first up, the president and kim jong-un, the leader of north korea, are going to meet one-on-one only with translators. then there's an expanded bilateral meeting, and what is notable about that is national security adviser john bolton will be in that meeting. we'll discuss why that is notable in a second. then there's a working lunch
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that had been tbd, to be decided, maybe they were going to do separate lunches this comes amid reports that kim jong-un was going to leave at 2:00 p.m. regardless turns out the president is leaving earlier than expected because things are moving along better than expected or more quickly than expected. and kim jong-un will be leaving at 2:00. the president will be leaving at 8:00 p.m. tomorrow night why is it notable that the national security adviser john bolton will be in the meeting? because he upset the north koreans making reference to the libya model when it cam to denuclearizing north korea do you know what the libya model was? the u.s. inspectors and international inspectors went into libya and loaded up a ship with 500 tons of nukes and took them away. and then moammar gadhafi, the leader of libya when his people rose up against him, died. and nothing was done to defend him even though he was a long-time ally of the united states so that is why john bolton being in the meeting is important or at least significant secretary of state mike pompeo
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this morning tried to once again say that there would be things done to assure the north koreans that they would not be upset with having to give up their nuclear weapons. >> there's no shift in the policy it is the case that we are prepared to make security assurances necessary for the north koreans to engage in that denuclearization that as we're prepared to take actions that will provide them sufficient certainty that they can be comfortable that denuclearization isn't something that ends badly for them indeed, just the opposite, that it leads to a brighter, better future for the north korean people >> reporter: what we don't know are what are those security assurances guys, back to you. >> michelle, thank you for that michelle can rruso-cabrera is tr in singapore and joining us now we have former national security council
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senior director and banker mckenzie partner rod hunter. good morning, good to see you. mr. ambassador, have you seen a le summit quite like this one what do you think the early departure for the president tomorrow means what are your expectations for this summit? >> well, this is -- there's tremendous build-up for this event, which i think is a very important one. we have to realize that the north korean nuclear program is the biggest threat that we see in the world, the most pressing threat we see in the world and it's nearly seven years since the korean war ended in an armistace rather than a permanent piece. and this is the first time a sitting u.s. president has met with north korea so it's a big event and we're right to be excited. >> rod, how do we define, how does the u.s. define success
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>> well, it's a very similar challenge that previous presidents have had. the denuclearization of the peninsula, but at the same time keeping our allies, japan and south korea, comfortable with that process meanwhile, china, who is above all interested in stability and security for itself in the region it's a narrow path to navigate >> ambassador hubbard, is it not in kim's interest to essentially prolong the process and preserve whatever leverage is there a as opposed to making substantive steps at this stage? >> well, i think that's correct. that i think the reason kim jong-un is comfortable attending this meeting is that he does believe he has achieved his main objective of a deliverable nuclear weapon
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so i would not be surprised if he tries to hang on to that as long as possible i think we have seen in previous negotiations that the north koreans do try to string it out as long as they can. and one of our objectives, i think, is to make sure that we achieve our objective, which is the end of north korea's nuclear weapons program as early as possible >> mr. ambassador, i mean, there's a tweet just a few moments ago from the foreign minister of singapore, which is essentially a selfie that he's taken with kim as kim appears to be making a late night tour around the city. i mean, i'm wondering if you can just talk about kim's evolution from isolated, murderous dictator as the world largely saw him just months ago to mr. charm offensive through his sister at the olympics and now this i mean, how much of this do you put stock in >> well, you have to remember that he is, indeed, still a ruthless dictator who has
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conducted unprecedented levels of repression within his own country, including the assassination execution of his uncle and his half brother so we have to remember who he is however, he does appear to be very skilled at pr he has skillfully tried to move out into the world in only a few months and we have to recognize that he is a skilled sort of -- he has skills in public relations i'm struck that we not only have diplomacy by tweets now, we also have diplomacy by selfie, that even the north korean leader engages in >> rod, doesn't it weaken our hand that most of our closest security allies and partners are angry with us leading into this meeting? >> well, it certainly doesn't help the president
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but i think everyone's going to be focused on the process of the negotiations as they go forward as well as what sort of commitments the president can secure people can forgive some rough comments if it produces good results. >> finally, mr. ambassador, what will you be listening for tonight? do you expect any kind of statement to be signed i mean, what deliverable in the next 24 hours upon the president's return do you think is in the realm of the possible? >> well, a meeting of this kind usually results in some kind of joint declaration. my understanding is that experts from both sides have been working on such a declaration. i think it will be largely aspirational at this time. i do think that we need to have north korea's acknowledgment that denuclearization is the common objective but i think this, as the
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president himself said, is the start of a process and i'll be looking for any specifics we can see on how other senior leaders and experts will move forward in subsequent negotiations, which tells us will be very difficult. >> understood. it's an important night to stay close to the news. and tomorrow morning as well mr. ambassador, thank you. ambassador hubbard, thank you to you as well. >> thank you as we head to break, we'll check in on where we stand with the markets. opening up higher across the board, a little rally for the dow up 12 points, s&p higher by more than 10%, building on gains for the third week in a row. stick around for the fcc commissioner joining us following the net neutrality that happens officially today. it's an inteiew u n'rvyodot want to miss. more "squawk on the street" right after this
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the old priceline. so clearly it was a famed portfolio in disguise. however, if you look more recently, there's an equal version of the sector. rcd, a small ticker, that does track the equal weighted version of that sector index and just in the past ten days or this month, it has started to gain on the overall sector because of this rotation out of the huge tech stocks into some older ones, including rxt, where amazon is a member but not a dominant one this is a pretty decent gauge on whether we'll see a continuation of this movement out of the very big leading fame-type stocks within a consumer. we have had a lot of the stutter-steps before and it has not turned into a huge lasting switch, but this is what to monitor. >> it is a little confusing with amazon and netflix in the consumer discretionary group >> it will be fixed soon so in a few months, the s&ps
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making the new sector called communication services, the internet stocks are going to go in there, facebook, amazon, netflix, joining the tell.com and media stocks some we'll get rationalization here, but that will make past comparisons difficult. >> it doesn't change new highs today. all-time highs for costco and estee lauder >> it's been a long-running comeback in retail not a quick flash. >> when we come back, a big surge. why wall street loved the we'll have dan springer join us. stay with us
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take a look at the stock today up almost 2% a long way from the $29 ipo which just debuted in april. big pitch to international growth here. what can we expect from the company going forward? we'll welcome dan springer back to the program, ceo of docusign. great to see you >> thank you for having me >> turns out e-signatures is a hot growth business. 39% subscription growth. what is driving those? actually, let's go to singapore where we are seeing, i believe, the north korean leader, kim jong-un. on the streets, it looks like, of singapore we just got that photo from the foreign minister. >> he did take a selfie of the and there's been some video coming from a resort called marina bay sands in singapore where some reports indicate
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kim's been cheered by some of the crowds i think sheldon adelson, his company may be in xharnlg of marina bay or the other resorts that kim may visit tonight remember, kim has not been out of the country with short trips to china and the southern part of the demilitarized zone. this is a way to experience the world in ways he has not been able to as the leader of north korea. >> it is 10:20 p.m. north korea time the talks between the leader and president trump set to kickoff in the morning as michelle said earlier, a lot of fascination with him. we don't see selfies with him usually. we don't see him walking the streets usually. there's obviously a humongous security force surrounding the leader, which you can sort of barely make out. he's in the middle of that crowd. >> of course, we have reports that even his own people didn't
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know he was going to be out. >> he flew there on a 747 out of air china on loan to the north koreans. michelle caruso-cabrera brought us that earlier and joins us to talk se of the remarkable pictures we continue to see this morning. michelle >> reporter: thee remarkable to see him walking through the streets here in singapore. and to the point that you were making earlier when discussing with the ambassador, this is a real transformation in his setting on the world stage this guy presides over a country where there are still more than 100,000 people in prison camps and labor camps according to the united nations millions of people have starved to death under the regime of his father and his grandfather and so this is an incredible treatment for him. and he's only here because he has nuclear weapons, right because he's done four bombs
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while he's in power, the most recent one had 100 kilo-tons of power, to make it believe to be a hydrogen bomb. and he had one intercontinental ballistic missile that went high up into the air, that if he had a flatter trajectory, it could hit the united states. think about all that when you see him being fettered around singapore at this hour this is all the attempts to try to get him to give up those nukes. michellee complete as you say, verifiable and irreversible denuclearization of the korean peninsula is the only outcome the u.s. will accept so some complain about u.s. trade policy not exactly sure what our key objectives are, but pompeo has been pretty crystal-clear about what we expect out of this summit. >> he has been repetitive and been asked over and over again about the definition of
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denuclearization you know, there's a difference between the united states and the koreans. the u.s. means north korea giving up nuclear power, ballistic missiles, the whole program. whereas what north korea wants is for the united states to also leave the peninsula, remove their troops, get rid of t nuclear umbrella for south korea. and it is not clr that the u.s. is willing to do that or our allies want us to do that. they need us as a stabilizg force, they think. that's where the rubber meets the road what is also interesting is the moral position that it puts on the united states to say, we're going to guarantee your regime and give you security assurances you won't end up like gadhafi they are intimating. and they are doing that because the tradeoff is they want the nuclear missiles to go away, but at the same time the tradeoff is you have to accept a kind of person like that in power. >> you can really almost see him just from the lights of the flashes of the cameras there clearly, the media has gone wild
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for this and i just think, michelle, about some of the history here he's the third member of the kim family, a direct decentury tant of the founder of north korea. and i just wonder how different his strategy is than those of his predecessors, his father, for instance i mean, there have been attempts at this before, but i'm not sure we have seen anything like this. what does he really want as to what does he think he can get? he's in a different position than his father and grandfather because now he has nuclear weapons, right so he has a stronger seat at the table. at the same time, you wonder if there's also a calculation about does he see further stability if he can improve the economics of his country? or if you improve the economics of the country by opening it up more, does it actually lead to ity and destabilizing the situation for him because then his people have been so isolated for so long, more than 20 million people see how the rest of the world has been
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living while they have been left behind would that be de-stabilizing it's a tough calculation for somebody who wants to stay in power. >> yeah, that was one of the theories for, perhaps, total speculation on the part of some geo-political observers, but maybe the reason this ends early tomorrow is because kim wants to, needs to return, just not used to being out of country michelle, nbc reporting that the president is staying in for the night as we look at the pictures of kim's tour of singapore i think we have john harwood with us as well alg with michelle to talk about what we're seeing here today. john, there remains an element of foreign policy hawks, at least, in this country who believe that north korea is a revisionist state and don't believe in win/win deals there's only win/lose. and anything we get out of this is simply p.r. or cover for them internally what do you make of that argument >> well, that could be true. and i think it is not likely
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that we're going to have out of this summit a dramatic change in north korea's behavior or status in the status of our relations with them. however, it is not beyond the pale to think that a determined extended negotiation with north korea to first limit and then reduce their nuclear arsenal in exchange for some economic benefits, that is not an utterly implausible idea kim values security above all else, but he does feel pressure to raise living standards among his starving population. he is a young man. if he wants to remain in power for a long time, he cannot indefinitely commiserate his people so then the question is, what price is he willing to pay
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what is the balance of security? security at home, yes, he is a dictator, but there are sometimes, as we have seen limits inhow long dictators ca survive. so the balance between security y asome versus securit regards to the international community is something that you try to find a sweet spot that enhances the security of the united states and enhances the security of japan and south korea and others in the region and also enhances the security of north korea >> yeah, michelle, potential security benefits are obviously known. what about the economic benefits i mean, we know that president trump is sort of dangling this as a way to open north korea what do we know about the economy? we know it is obviously one of the poorest in the whole world, but how it's surviving and what an opening would mean and would look like. >> reporter: so it was originally even more stalin than
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stalin where in the 1950s everything was controlled by the government they essentially eliminated commerce you not buy or sell anything your job would be decided by the government, your food was distributed by the government and they held on to that for a long time until the soviet union fell and they really ran out of the large -- similar to what happened to cubacuban. then more than a million people starved because they struggled so much and didn't have any of the aid. as a result of that, there were implicit market forces that were allowed to happen where the government would look the other way as people fended for themselves and created markets it's now estimated that 78% of the food is actually distributed by private farmers who sneak off into little plots. what that dells you is that the large farms controlled by the government produce almt nothing at this point. and a lot of what they eat, drink, wear, et cetera, is
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smuggled in over the border from china as security guards are bribed to look the other way and that is how they survive you know, it's a big question, if you give them money, will the regime continue to act in a socialist way? they still, when asked directly and you read articles, believe in socialism or do they actually start to rely more on market forces, which would have a much greater multiplier effect to any money that is given to them? where would the money come from? it's been said over and over again, china, japan, south korea and the united states. >> and guys, just to michelle's point, one of the challenges is they want to introduce some market forces but they don't really want foreign investment because kim is terrified that if he opens up to the extent that outsiders come in and invest, and you sort of open the door and let a little light in, that that is going to hasten the end
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of his system and his regime so that is why the system that michelle was describing is sort of jerry-rigged system of private farmers and smuggled goods from china and bribing guards as opposed to letting a business from other parts of the world come in and invest, which of course would enhance their economic well-being a lot faster >> yeah. the prospect of western brands making their way into the country seems remote, at least for now. we were, at this time last week, talking to the ceo of mcdonald's who said that north korea's franchise is not something they are looking at any time soon. >> but they do -- don't they have a lot of rare earth minerals, michelle >> reporter: yeah, there's a lot that could be done there you can mine rare earths, you can mine gold. remember, back in 1950, the end of the korean war, north korea was stronger than south korea
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economically they were considered the industrial powerhouse compared to the backwater of south korea. so there's absolutely resources there, not to mention the labor force that hasn't been put to work in a meaningful way in a long time. so then there are thing that is can be done, but to john's point, and we have seen this in cuba as well, the minute you want foreign investors, you have to provide terms foreign investors are willing to take. and if you don't want to live by those rules, then you don't want that investment. because the tradeoff is too great if you're the dictator who wants to remain in power it's really quite difficult. >> guys -- >> i was just going to say, it's also worth reflecting on michelle's observation that after the korean war, north korea was stronger economically. is there a better testamt to the economic superiority of capitalism than what's happened to south korea versus what's
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happen ed to north korea? >> reporter: amen. >> can we get to the discussion on this, this morning there was talk about how it is not steps along the way and we're going to open up your economy >> reporter: no, it's a change from what's happened in the past where -- when north korea has given a deliverable, there has been either a weakening in sanctions or some kind of payment of aid, et cetera. and that is, they say, is not going to happen this time around because one spit and twice shy, they want to see real denuclearization before they're truly going to help out. so they are planning for a lot more up front from the north koreans and aid will be a lot further down the road. >> michelle and john, thank you,
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both, for weighing in as we see some of the remarkable pictures of kim jong-un, the leader of north korea touring the streets of singapore surrounded by his extensive security detail we'll keep an eye on it and check in as soon as we get more information. from one summit to the next, the president continues to criticize u.s. allies on trade policy tweeting from sing support last night saying, quote, we cannot let our frenemies take advantage of our trade anymore. this is following the departure from the g7 summit where he called justin trudeau dishonest and weak and then peter navarro doubled down and said there's a special place in hell for leaders like trudeau. back at hq, we are looking at the president eats statements on tra trade. specifically his numbers and whether they are factual. >> president trump has been tweeting aggressively about how unfair the u.s. trade
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relationship is with canada, but the question is whether or not the data supports that here's another tweet that the president put out, fair trade is now to be called fool trade if it's not reciprocal. according to aada release, they make almost $100 billion in trade with the u.s guess they were bragging and got caught minimum is $17 billion tax from us at 270%. then justin acts hurt when called out here's data, we have a total trade relationship of $680 billion. the united states has a surplus with canada of $2.76 billion by that criteria, we are unfair to canada. we have a service surplus of $25 billion, including canadian tourists that come here to buy televisions and movies we have a goods deficit of $22.6 billion. that's the $17 billion the president was talking about. this is 2017 data. canada has a tariff on dairy products and is real
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the global farmers have complained about it for years despite this, the u.s. has a very large dairy surplus with canada it totals more than 400 million by canadian data 200 million by american data and another area of contention is steel, the data shows the u.s. and canadian steel traders pretty much are balanced they send us to america the same amount of steel that america sends to canada. here's the trouble with the whole debate, most economists don't even see the trade deficit as a problem and they don't judge the health of the relationship by the surplus or deficit but by the president's own criteria, hard to find the unfairness in the trade relationship that is balanced and in modest surplus for the u.s. >> right you have to economically account services along with goods in a trade deficit or surplus they are as economically important. not just like forms and exports -- farms and exports
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if canada does impose the tariffs, name a country that doesn't protect their agricultural exports the u.s. has billions of dollars worth of farm subsidize. >> right and there's a quo a on imports and the canadian quota is 10% of their consumption and the u.s. quota is 3%. so we are tougher. the american dairy farmers do a lot of business. and the question of whether or not the president is acting in the best interest of the majority of workers is a good question there, sarah. there's a recent studyt shows we'll gain 29,000 jobs from the steel tariffs and the same estimate from the trade partnership that we would lose something like 400,000 jobs. when you total it together, the general view of most economists and most of the work that is done even using the administration's own data is that these tariffs are not going to help the majority of american workers, and certainly if there's a response from canada, not the majority of american
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farmers. >> steve liesman, thank you for laying some of the facts out there. trade tensions, tariff tirades, global peace all front and center this morning, but stocks are, for the most part, higher the dollar is a bit weaker is the market ignoring se of the trade risks? joining us is allen rusken, along with libby camp at deutsche bank. good to see you both libby, why doesn't wall street seem to mind i get that geopolitical noise is tuned out, but we were talking about trade and there's a real cost in economic benefits. >> this is something we have been talking about since president trump got elected. that you have to take president trump seriously on trade and i think that was in full view at the g7 summit this weekend. you know, i think in some ways the markets, the equity markets, are not convinced that these things are actually real, right? in terms of the rhetoric versus
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the action, we have seen a lot more rhetoric to date than we have seen the enforcement actions. the june 1st tariffs on canada, on mexico and really the most significant adversarial trade action we have seen to date. >> what is it going to take? if you tax auto imports into this country -- >> that is obviously going to hinge on what you have been scussing over the last few hours now, is just the singapore summit if that is successful, then you might be able to see a reprieve on escalation with china but if it's not, those $50 billion in tariffs and potentially the extra $100 billion threatened could be likely imposed. >> allen, if you told me coming into a week where the president is bashing our closest trading partners on trade, a week where the fed is set to raise interest rates they are set to talk about the caring stimulus, the market is coming off three weeks of gains and the market is higher
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some could be surprised. >> that's a fair comment there, sarah. the important element here is that we probably were watching the wrong summit the summit in singapore is really what is going to move the markets. i think -- not really a presumption, but there's some sense that we uld get a positive reakts out of that. certainly a strong sense in the marketplace that you don't get to the point of a summit without the strong possibility for good headlines. the markets are hoping to get a risk out of singapore. >> such as another summit or what constituted good news >> well, that's difficult. one would anticipate the beginning of an agreement. as we have seen in the past, these agreements don't necessarily stick that easily. >> i'm trying to think what else could be in the envelope. >> some sort of sense that north korea is indeed signing on for denuclearization and that there is some agreement about what that term actually means
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that's the heart and soul of this >> and this has a trade element to it. perhaps the markets are looking for what it r china in terms of the trade measures, and it seems like we're fighting on multiple fronts here there's the nafta negotiations, there's all the rest of it, is there a way out from the administration's perspective to say, look, we have asserted ourselves, we think we're moving to some kind of resold but we're not going to further what is your take? >> well, things are more likely to escalate than de-escalate on lots of fronts just in terms of nafta, the nafta negotiations were not going well before this i think people sort of mistakenly were optimistic we would see a quick resolution first of all, the trade agreements need a long time to negotiate as we all know, but there were a lot of significant issues not yet resolved on nafta. even though the attention is on the g7 and being the most
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decisive factor, the nafta deal is very unlikely it was more unlikely before this week and the approach on china, there is very significant concern in washington, in addition to the administrati administration, that china has been a bad actor here. and how are we going to rectify this however, the united states needs china in terms of sitting do unwith north korea so that is a big question there. >> allen rusken and libby cantrell when we come back, the former chairman of the president's council of economic advisers jason furman will sit
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down with santelli for a special santelli exchange. and the world cup is only three days away. the telemundo chairman is here ckth us as cnbc gets ready to kioff their coverage of that "squawk on the street" is back in a minute. this is no ordinary coffee. it's single-origin kenyan coffee from the nyeri highlands, 6, above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific? that you can trust they're 100% authentic? ibm blockchain. a smart way to track every step, ensuring this coffee did indeed come from 6,000 feet above sea level. and not a foot lower. ♪ ♪
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let's get to the cme to check in with rick santelli with a special santelli exchange. good morning >> thank you, carl yes, i would like to welcome dr. jason furman, former chief economic adviser to the president. of course, president barack obama. dr. furman, thank you for joining me this morning. >> thank you for having me,
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rick. >> triple crown has been a big topic this weekend and i think as a market person, we have the triple crown of central banking this wednesday, thursday and friday with the fomc, the ecb and the bank of japan. doctor, thiss a time where central banks have to recalibrate away from crisis-era policies, but that recalibration could be one of the biggest fundamentals to affect capital on the planet. your thoughts? >> these central banks are all really good at never surprising anyone and they do their jobs well. they let you know in advance what is going to happen. i'm not expecting any surprises this week. the fed will raise rates none of them will indicate much of a change in response to italy, much of a change in response to red hot jobs numbers we have here in the united states, but just a continued, very gradual predictive process
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of normalization. >> being predictable and not doing anything surprising, i understand that and it makes perfect sense. but that does not mean that e interpretation of those actions by the markets won't be a bit more surprising in terms of volatility we have had some temper tantrums in the past. this is going to be a potential global taper with the u.s. partially on its way, the ecb to a lesser extent and the bank of japan in the distant third i guess my question is, not from the vantage point of the policy initiators, but from the acceptance of that policy, how can the european union economy, for example, think there's not going to be surprises. they still have negative interest rates along their curve? >> yeah. i mean, the european union has been -- the euro has been successful in generating economic growth. they have outpaced the forecast even more than we have here in
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the united states. but there is still a substantial amount of slack. people look at countries like spain that still have high unemployment rates they say that unemployment is structural i think a decade ago their unemployment rate was a lot lower. they have, i think, more room in europe to continue to bring people into the workforce than we have here in the united states >> now that's an interesting point, especially with 96 million in the u.s. that could be brought back in all right, over the weekend we hag7 many believe that it was not necessarily anybody's finite power. i want to say one thing, though, when it comes to the united states, it's a count culture's really built on individual limb. what is going on in g7 is a form of globalism this president, in a way, is reasserting the fact that a collectivism may not be his first choice even though his methodology may be rough
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what would you think about that interpretation >> i completely disagree with that interpretation. a lot of our ec strength was ba markets and markets let people engage in transactions, they buy, they sell if it's good for both of them, they will engage in it, if it's not, they won't and president trump seems fundamentally often very opposed to markets he's opposed to them in international trade, opposed to letting them operate with companies like amazon, with the electrical grid and coal you just are seeing it across the board. so i don't think thas individualism. individualism lets people buy and sell what they want. he doesn't want to let us do that >> can we buy and sell what we want when it comes to our exports going into these countries with such ease >> well, look, i would love to see reduction of tariffs across the board. i think a great way to do that was with the transpacific partnership, which would have
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lowered trade barriers in japan. >> so you like the really big deals with lots of people at the table. i guess that's inherent in this, is that there's a school of thought that globalism is like a giant magnet and sucks everything into it it sucks everything into its universe sometimes trying to push back a little may redefine or realign all the pieces listen, professor, dr. fuchlt rman, thank you for joining me today. there's never enough time. carl, back to you. >> thank you, rick rick santelli. eric chemi has the market flash for us hey, eric. >> that's right. medical device manufacturer, dow jones citing sources saying it's unclear whether boston scientific is receptive to that takeover bid but shares of bsx up 15% lost some of those gains still at 7% up right now. >> we'll continue to watch that.
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>> it would be about -- boston scientific, and stryker, almost similar size stryker has been smaller one or two-product companies. >> meanw usg along with this kkr, i think it is, envision there's decent size -- >> a steady undertone of it happening, as we should at this time in the -- you know, in the market cycle if anything, you should be seeing more. >> with some big uncertainties looming, like trade. >> sure. >> it is interesting to see confidence remains high. deal making remains high. >> and they have the currency. it was probably a now or never sort of feel for companies with the tax cut. >> cramer talked about what was more important, this summit in singapore or the fed on financials
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he actually argued the latter, that it woulbe better to get the banks back in play versus the industrials. >> if that would be the reaction, too. you don'ow how that will play with the ecb and the fed. that's where the market energy is more focused right now. we don't know about the path of either one. >> regional banks have been very strong. >> i guess the point is, you don't know which way yields would go. >> it's on the federal reserve outlook, right we know they're going to hike interest rates that's baked in the market will they cave to the pressure of trade fears, projecting a more hawkish stance of raising rates further? or not. >> the world's most watched sporting event telemundo is prepared to kick off their coverage of the world cup in moscow. the first match in about three days we're joined by the chairman of telemundo as well as nbc universal group.
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telemundo is owned by our parent company. good to have you back, cesar good morning can you hear me?maybe not. we've been working on checking him in it is a very large deal for international sports and if we can get to cesar in a moment, we'll get to the degree that's been undercounted here in the u.s. with traditional american sport. >> still pretty parochial. plus without the u.s. team it's unclear how much of a ripple it will make to the average nonhard core soccer fan. >> although goldman sachs -- >> they tried to predict how the tournament is going to go. >> brazil? >> brazil over germany in the final was the bottom line. not exactly a maverick, you k w know, handicapping job there pretty much the favorites. but there you go. >> how about bitcoin you see this move? falling over 10% over the weekend, hitting its lowest
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level in more than two months after a hack of crypto currency exchange in south korea. u.s. regulators are investigating the four major crypto exchanges for price manipulation, guys obviously this is still susceptible to these kind of hacks. we have a number othem last year clearly, as trading has grown, as it has become very international, this is still a major risk. >> yeah. and also in a market that was very much back on its heels. bitcoin price has been kind of melting down for much of the year. >> that's a long way from that, what, 17,000, 18,000 >> i think that didn't help. >> it remains one of these areas that this idea that you could have all this wealth kind of off-loaded from the network. >> one thing we did not get to with alan rustic ruskin today, 2.87 if you missed comments
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all these elevated fears about italy and the fringes of europe easing a bit today after several weeks of increasing. >> it's true a lot of people said beforehand, look, once you're in power, the instinct is often to be a little bit less strident about these issues therefore, those comments definitely just ease that one major fear in a lot of people. >> and the euro pushing toward 118. it's been strong, strong, strong, ever since the fears have been aleleviated around italy. also, they have band together against president trump and the united states when it comes to the imposition of the steel and aluminum tariffs and how europe will fight back. >> plus ecb thursday. >> yes and already hawkish rhetoric out of the chief economists last week, suggesting they're looking at an exit pa pairing back the qe as the data has made a turn for the worse. and boj this week.
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>> and brexit vote. >> all the news is happening in five days, yeah. >> coming up on power lunch later today, an interview we've got. exclusive with u.s. steel ceo, david burritt. we'll talk about what kind of challenges they face, and of course, the impact of the recent tariffs, how much that helps them and what we'll see in terms of retaliatory tariffs from other countries and whether that blunts the impact they were getting. >> see what donald tusk tweeted? >> he has been trash talking on twitter. >> he said today there's a special place in heaven for justin trudeau. >> because he organized the g7 so well? >> twitter attacks from world leaders is something that's hard to get used to. >> they've figured out this new tool of diplomacy. >> that's the president trump way. >> we'll see you on "power," sara when womb back we'll talk to
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good morning it is 11:00 p.m. at the nuclear summit in singapore. it is 11:00 a.m. on wall street and "squawk alley" is live ♪ look if you had one shot or one opportunity to seize everything you ever wanted one moment to capture ♪ ♪ his palms are sweaty knees weak arms are heavy there's vomit on his sweater already mom's spaghetti ♪ ♪ he's nervous >> good morning. welcome to "squawk alley." i'm carl quintanilla with morgan brennan and jon fortt. we'll get straight to the top story, that is the summit with president trump and kim jong-un. discussions between th
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