live from new york where business never sleeps, this is "squawk box. good morning 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 and andrew ross sorkin. yesterday the markets ended mixed, jusbarely dow down about a point and a half this morning some modest advances dow futures indicated up by 18 points s&p up by 2. nasdaq up by 9 let's take a quick look at treasury yields. yesterday you saw the yield on the ten-year treasury unchanged at 2.959%. this morning 2.957%. a judge approving at&t's comcast expected to be biddingr. for fox, 21 century fox's assets as early as today. we brought in david faber here this morning to tell us what is

about to happen. >> is that what i'm here to do >> that's what you're here for >> you're a swimmer. he said you have big guns. >> thank you >> you're welcome. >> i'm trying. when you getage, uh, but my able, trying to keep it together >> put us side by side not that much different. >> you're right. >> be positive >>ntitrust hell, remember all those deals? >> yeah, it's about physical condition and hair >> thank you >> and height. >> that's a problem. >> the segment's over. so what will happen? >> andrew has no time for any of this stuff but we do have three hours >> and i'm here for a lot of it today. >> i thought you were on vacation >> i was i'm back today >> same thing. >> i was hoping comcast would make their bid this morning for those fox assets

a story we've been following closely. those talks between disney and fox ended up in that deal. doesn't look like comcast will come this morning, but we expect they will show up most likely today. unclear exactly why they might wait until later in the day, but, you know, we'll see how disney's stock price does. it is expected to be an all-cash bid. and they have really gotten the all-clear as a result of the decision that's the belief in the comcast side, this cleared the path completely for them. it was a great outcome as good as they could have imagined it will eliminate they believe many antitrust concerns that would hang over a comcast purchase of these fox assets that's a large discussion. >> where does the government go at this point? >> everything i heard from

people was that a full expectation that they would seek an appeal and would want a stay or trya lot of pn trying to understand what are the chances of getting a stay. i talked to a number of antitrust attorneys, most believe the chances of getting a stay, given the harm that it would do to at&t were small. it's interesting to note at the end of his opinion the judge said it would be manifestly unjust to issue -- to get a stay pending appeal in this case because of the irreparable harm, because it would stop the deal from occurring >> is there a reason to think this guy was out of line, judge leon >> ul pi'll put the question bak they may still appeal, but people who read this decision

believe the chances have fallen a bit as a result of how strong the decision is. >> what i was trying to figure out last night, less how comcast felt about the decision, but how fox feels about the decision how ru murdoch feels about the decision >> did you find anything out i would like to hear that. >> no. i was struggling to get a real answer while clearly people close to 21st century fox felt it was a straight line decision, there was a bit of reluctance to that necessarily this decision would relate to their deal >> he felt richer based on the stock price yesterday. somebody will be paying more >> that's the key on leer. comcast will come with a significantly higher offer based on all the repor i've done what's the number? right now the disney deal is worth south of 28 bucks a share

in stock, traded off a bit yesterday. we'll see what it does today you could see mid 30s or higher the antitrust decisions. disney committed to having to divest all 22 rsns if it came to that, the regional sports networks and also businesses that contribute up to 2$250 million i ebita. so comcast will it to that 2$2.5 billion reverse break fee maybe go further structurally. it's not clear we'll have to wait and see what the language is. >> the other question is what we think comcast shareholders, the big institutions think about this a cash deal does not require a shareholder vote you could argue that shareholders have voted with their feet related to where the stock price is today is that a vote

what is that >> i'm not sure how close brian roberts of comcast is paying attention to that. heats always run the company for the longly 58 years old, 59 yea. a lot of years ahead and he believes he built this company, and we've been through acquisitions we will continue down that road. >> it's still 64, 65 -- >> but it's painful. the stock is down 23%. losing a quarter of your value in half a year, that's not good. >> short termism >> we have gotten poorer >> wouldn't you rather down the road to compete with new media, wouldn't you rather own sky and as a shareholder, what would you

really want? >> if you believe in mr. roberts and his leadership of this company and steve burke who will run many of these assets -- >> you wouldn't give them the benefit of the doubt >> will never sell >> what do you want your comcast for? you have another 20 years to hold it. >> the complicated part is if shareholders had the same view that you seem to, that -- by the way, i think a deal like this would make sense depends on the price, but clearly shareholders have not wanted to make that bet. when comcast bought nbc universal, the stock did not go down, it went up it went down briefly >> because of the price they thought they were getting. >> price matters >> the concern here is comcast will lever up in terms of adding debt to its balance sheet to pay for this

some people say they could add 1$100 billion in terms of capaf that balance, but that's money that might have otherwise gone back to buy stock or do things that short-terme e prefer at the same time some say they don't have confidence in their core business. comcast says if we're willing to add that much debt to our balance sheet, we're saying how much confidence we have in the core business. >> look at 52-week highs and lows stocks do fluctuate. when comcast was up trading at $85, it had been 20, or 22, it went up, didn't u know this was universally loved? >> and brian roberts is not your typical ceo.

he's the long-term owner, son of the founder. you are talking about somebody who is putting his money where his mouth is >> look at the market cap assigned >> you can look at growth. comcast is trading at low multiples now. >> you're free to vote with your feet today i think we're in a trading period >> i'm not voting. i'm just raising the question. >> joejust so we're clear on th this, typically the longest term investors, so the top 15 comcast active shareholders, excluding index investors. capital world investors, they

sold they're down 11% t. rowe price has taken stock off the table. i'm not saying they're makin the right decision or the wrong ying there are long-term investors here who have questions about it that's the issue i'm raising >> they may be long-term, but a lot of the movement in the stock was not long-term. a lot of it is but seeing a pullback to what i see as a pre-split 64. when it was 64 on the way up, i didn't think -- >> any price is a good price to pay? >> as a sharehr. >> i think you have to have faith they're not going to overpay. we won't know for a long period of time. >> disney conceivably will come back and be aggressive here in terms of matching them, not just on sky where they are already

competing. >> don't you want to see this? >> yeah. >> aren't you willing to put up a bit of your huge net worth to allow this to happen >> sure. >> this will be interesting. the 10th of july is fox's shareholder vote, the meeting. we'll see ift gets pushed. the process here will be comcast bids we'll see if it could lead to a superior proposal. disney will have the opportunity to match some key questions here for bob iger, how far will his board allow him to go. >> didn't you chopper down from the north 40 on yournect estate in. >> i didn't. it's amazing how watching you again and your mind, how it works, where it goes it goes to the same things how much money does he have, he still has his air. >> he's driving around jersey i his porsche.

>> right, at 9:30 most days. >> i'm tir from yesterday, working from 2:00 a.m. >> that was rough. >> that was rough. >> let's bring in some outside voices joining us is john hudluck from ubs and frank lathan from raymond james. frank, what does this mean for a company like at&t and for the broader industry is this a situation where this is d die for these companies as you see subscribers dip away and cord cutting kick into hh gear >> cord cutting has gotten way overblown. the economics, the video business is not that great, that's why they want to diversify. if they can get these assets, they can lower churn across 100 million customers, that's a big deal that's what they're after. the most interesting thing in the court case is how much

credence it gave to the idea that the world has changed within media, given where the advertising is going, how the economics of the business changed and why it was more important to allow this type of merger it will have implications across the sector >> just the idea that the tech players out there, netflix, googles, amazons, they are changing the industry dramatically this is recognition from government now, too. >> absolutely. netflix will spend $8 billion o content. amazon 4 apple in the 2 range viewership is following the dollars away from linear tv to over-the-top platforms the judge recognized that. he realie market power that the government was alleging doesn't exist. >> at&t did lay this out as a do or die situation they said they needed to get this deal done for the reasons you two cited. is that the same for a disney or

comcast? is this game on and they have to be doing this? >> i think they're doing it for different reasons. these big media executives are se the market cap of netflix go up every day. massive opportunity if they can put together to a district to consumer application that mirrors that and gets viewership disney's focus in its acquisition of fox, and eventually it's more complicated for a company like comcast that's got to be part of their equation what you said concerns me a little, the idea that we are chasing after netflix valuation. that's fine as long as the market continues to value it this way if not, you look at this as an aol/time warner situation again? >> i think that was a completely different story. the nature of tv is changing

viewership is migrating away from traditional tv. that's important for ccast comcast grew up as a video company and now is a media company, but it has a media asset that's 20%, 25% of ebita that it wants value for. >> and the judge was clear in his ruling that he saw that value. to the extent that netflix, google and others have knowledge about who is watching in realtime, that's the advantage a netflix has. it's monetizing that content in a better way >> it's also chasing a lot of the few remaining big players out there that could be bought up as assets when you look at cbs, viacom, fox all those big jumps in the stock price yesterday make sense to either of you? >> makes sense to me as you were talking earlier, we lowered the rating on comcast

for similar reasons. i like comcast a lot on a fundamental basis. going after the fox assets in things they need to go after leverage is going up you're looking at a prolonged period of uncertainty about howg will this happen >> if you're brian roberts, how does he lose it's a win-win if he wins, he gets it if he makes disney pay more, that's a win when do these guys -- would they call each other up frnlg>> they have not wanted -- emotions are running high still. that's the place -- >> is no love loss >> there's really no love loss now. >> which is also fun to watch. >> you could imagine a scenario under which they allow them -- disney has no interest in backing off.

>> who can afford to pay more? comcast is in a better position. >> not necessary limit. >> once they get the stuff, it's not more important for comcast to get international recognition -- >> you don't think having all those entertainment assets does anything >> is there a way that makes sense for both companies >> unclear there's always been speculatio around what if disney let them acquire sky. right now fox has the lower bid. disney will have to give its consent to fox to aggressively meet if not xid the current comcast bid. you could see it there but you can't have a quid pro quo. they could do that, i'm not sure they could say, you know, we'll do that so you back off on buying all of the fox assets the other area is hulu, where there's ownership at stake and comcast would like a direct to consumer offering again. >> you said you like comcast

fundamentally. do you like comcast fundamentally buying fox and at what price what is the price at which you say this is great, and then what is the price no s? >> looking at the current bid, that's a fair price. premium over what disney is offering they could push the price up higher they probably do have more debt capacity it creat scenario for a fairly long period of time that becomes less attractive to investors. history with comcast investors, they like the low leverage all of this in a time period where the market is negative on subscriber losses. from an economic standpoint it's not a bad thing to trade off for a data subscriber from a video subscriber you put that scenario in a rising rate environment t creates an extended period of time where investors are --

>> we have had people on that have said that the government made a great case. and that they went in the face of the -- the consensus was vertical mergers will never be stopped. people have come on and said, oh, no >> i thought the government put up a bad case and any would win. >> same with us. we said at&t would win and that the most likely outcome would be a finding of no harm and no conditions that's how it played out it's the most defensible from a stay standpoint. this is the easiest to defend, i would be surprised if the doj was seeking appeal >> what about at&t from here where do you -- they complete this deal in the next few days, but next week. how do they stand in your opinion at this point? so many people seem to think they do these deals in part to pay the dividend.

>> that's part of it that's a part of the investment case for at&t. we have a neutral on the stock now. the entertainment group which contains those directv assets is seeing real dislocation, as subscribers migrate from high margin satellite service to this, where we think is margin over the top, directv now that will happen at a faster pace after at&t watch and new assets that they'll be integrating. it's a new business for them, for time war we have e a wait and see approach he would believe there's new ities. it's faster growing. that helps the growth profile. we're taking a wait and se approach >> thank you both for coming in. david, see you in a bit. >> all right >> you're here

>> i'm here. whenever you need me >> what about "closing bell. >> no. maybe on the phone can i leave. >> beautiful day must be beautiful up there >> it's supposed to rain that worked out. >> yesterday must have been -- >> gorgeous. had to leave come down. >> i know. you could lend him yours >> i was thinking of sending the pilot up >> pilots. pilots you have at least two in the chopper. >> you have a backup copter? >> my wife was using it yesterday. >> toyota is investing -- these are stocks to watch. toyota is investing 1 billion in ride hailing firm grab >> good name >> not in today's world. >> he's thinking -- >> yeah. >> of course, bill clinton, the

rules have changed what you're allowed to get away with this is part of the company's latest round of fund-raising sources say grab's valuation is more than $10 billion with that toyota investment. shares of h & r block are plunging today revenue and margin guince falling well short of analyst estimates. president trump arrived back in the united states following his trip to singapore for yesterday's historic summit with north korean leader kim jong-un. air force one touching down at andrews within the last hour president trump tweeting before taking office people were assuming that weere going to president obama said that north korea was our biggest and most dangerous problem. no longer. sleep well tonight coming up, why americans are feeling more charitable these days and later don't miss the cnbc exclusive with british prime

minister theresa may she will join geoff cutmore li at 11:00 a.m "squawk box" returns in a moment

♪ welcome back to "squawk box. a ney is out and it finds that americans are being more charitable giving to causes topped 4$400 billion for the first time, up from nearly 390 billion back in 2016 among the reasons cited, the giving usa foundation's report giving credit to a booming stock market and a strong economy. >> we need to go through the numbers. the only reason i mention t i remember looking at this report yesterday, there were indications that on an individual basis we as americans on a percentage basis have been givi steady less, not more over time. and interestingly companies have been giving less not more. >> i could see if it's a smaller percentage of our overall

income >> the numbers are great definitely i want to get the numbers. >> that was the royal we >> we? >> we are not -- any way, there's a vote on the way now in moscow that will determine the home for the 2026 fifa world cup. soccer's governing body will make tion. e frontrunners, the united states, canada, mexico, and rival bid also offered by morocco. >> you could call this the nafta fifa cup if there was still a nafta going to be around in 2026 >> 2026. looking forward to it, i guess >> it would be great if the u.s. got it and catapult mls. >> right >> to the extent you believe

that major league soccer has a chance to take off, getting this in the united states would be huge >> at least it's not in the untes this year. >> a new report confirming phone scams are growing. joe is on the end of all of them true caller reports $9 billion was lost in phone scams last year the federal trade commission saying more than 7 million complaints were filed with the national do-not-call registry. scammers are spoofing phone numbers to make them look familiar to consumers on the other end. so wn you'n yo cell phone you think you know who is calling you. this is happening in half of the phone scams today using digit spoofing >> i have found myself in the position of every time i answer

the phone, i'm nasty hello? they say is rebecca? who is this! >> i have done you reached the dmv. my latest thing i say, yeah, i do need an extended warranty can you walk me through it i need solarels. really there's nothing wrong currently with my credit card, but i can get a low interest rate. tell me. i have some time has r said yes to you about the extended warranty? have you ever sold one of these things >> i don't nknow if you notice, they say your warranty is up >> i say what's my name? what kind of car do i have it's ten a day i have on my wide screen tv it says who it is it's not just on my cell phone

it's my land line because of that triple play >> have you noticed now people now text you before they call you. >> to make sure you pick up the phone. >> i'm about to call you can you take a call >> i don't take mone calls anybody. >> that's what you're supposed to do. >> text and say -- >> even if you pick up and say take me off the list, they know you're a human and they call you back >> that's why most of the time i don't answer >> this is an evil plus i try to get the drs and name of where the call is coming from. >> that's what at&t and comcast should be fighting against it's the main reason i'm yanking the phone ou my house. >> i need to tell you this thing about bitcoin. we got something at our house from someone that used to live there. used to live there saying mr. so and so, i know what you have

been doing, i'm going to tell your wife. >> what? >> yes >> now it's getting interesting. >> i know what you've been doing, il tell your wife if you don't send $7500 >> wasn't it penelope's parents who lived there before>> no, no. it was a person whosname is no longer -- the person was not married either they didn't even have a wife send 7500. that's all i want. i'm not asking for a lot >> wow >> they go through the embarrassment your family will suffer it came to the wrong person. >> this is like the new nigerian scam >> right >> they were needing money, they were stuck >> everybody in the area has gotten this. they personalize it. it's all about bitcoin >> crazy >> they must have some takers.

some guy that goes, ah i don't know i guess. i meant to tell you about it i'll bring the letter in. >> bring it in >> we'll do a full screen. >> there's no way to find out who it is. >> this is a public service announcement, don't fall for it. >> even if youave been doing things stop doing whatever it is you're worried about. a group of people in massachusetts are trying to break the world record for the largest paper airplane volunteers spent more than three years building it. the 64-foot long, 1500-pound contraption will never fly so why build it? the city of fitchburg hopes the project will put a spotlight on the city as a major paper producer >> maybe if they could swing it out on this plane, they could >> looks like a concord.

>> we made one like that last weekend with a piece of paper. >> i used to love making them. fun. when we come back, green t. a judge approvess acof timwarner what is next we'll ask former mtv president sean atkins. right now as we head to brea a look at yesterday's s&p 500 winners and losers

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welcome back to "squawk box. at&t winning approval to acquire time warner. jog us is sean atkins, former president of mtv. couple things.u thought this ded have been approved >> correct >> now, just sort of moving on from that, put yourself in rupert murdoch's seat. you look at thisecision. disney on one side. comcast on the other before you thought -- not you, but i don't know if i want to do the comcast deal because i'm worried about the regulatory concerns >> and he wanted stock >> he wanted stock, was happy being in business with disney. how does this change your calculus if you're him >> it will change the amount you will get paid for the asset. for sure the original 52 you got offered by disney will get bigger

rumors are up to 65 coming from comcast. i find it hard to believe that disney will match the first round what will come out so it's a question for the murdoch family, is he still playing a bit for legacy if you're still playing a bit for legacy it gives the hand to disney >> you do. >> yeah. i think the comcast needs the assets more than disney needs the assets if you're looking for the long-term. in terms of looking at who will execute the most, who has the most synergistic opportunities to expand that portfolio over time -- >> is there any way rupert is not thrilled does he wish this had not thrown a wrench in the works? how can you not be thrilled about a bidding war for assets >> i think they're thrilled. it does not harm the murdoch desired asset on the market.st if you were planning the perfect

time to have everybody come after i, this is it. if you're the time warner shareholders, you're disappointed because you would love to be the other belle at the ball >> you said you thought comcast needed it more i looked at this as a nice addition for comcast if it could get it and strategically even if it doesn't it pushes up the price for disney >> that's correct. >> so it's more of an option value situation. >> yeah. >> by saying that you think comcast needs it more, you're flipping the script on me a bit. >> as as comcast believes it's playing in the direct to consumer content business, they need it more if they say as this plays out there will be content players, technology players, distribution assets if they were just playing the distribution game, unnecessary maybe the sky piece is interesting from an internationaive. as long as they play the direct to consumer peace, they have a weaker hand in terms of brands

they can bring, touch points on other channels >> can you imagine a snacenario, we talked about emoepgs motionsn high on all sides,here either bob iger finds a way tll brian roberts, or brian roberts calls bob iger, and if you can do that legally so you don't get all sorts of lawsuits saying there's collusion going on >> i think they can ultimately have a conversation around the sky asset as most people think that's the most logical have a conversation. maybaround the regional sports networks you can say we have the national footprint, you take the regional footprint. i would be shocked if that conversation happens i think to your point, i always tell people even though we're doing business and you can have rational conversations all day long, as soon as emotion gets involved sometimes rationality can be impacted.

>> what do you think happens to ver rise e ver r verizon in all of this? they may get left out of this whole thing if they don't jump into it somehow. >> i'm nots concerned as most people are that the distribution assets need to own content and the technology people need to own content. they have a strong core business if i was the new verizon ceo coming in, i would be looking at charter and double down around broadband distribution and 5g opportunities, than picking up a couple content companies >> there's been lots of rumors and speculation, so many people over the past couple of days have had the conversation about is somebody in the valley going to do something? is amazon going to do something? >> if anybody, amazoor apple

are the most likely. i wouldn't if i were them. with the sort of disarray happening in traditional media, why would you wade in where you have better margins. everyone is trying to figure out how to compete with you. you can leight it out, do all the integrations, the efficiencies, then three, four years down the line you will have your pick of the litter >> that makes sense except remember amazon went back to brick-and-mortar sometimes it helps to take the best of thold -- >> that's why i think it's most likely if someone will go in, it will be amazon >> that, we should block you're the future. >> stay out of this? >> anything that works, money flows downhill -- >> agreed. >> thank you for coming in when we come back, shares of zte plunging in asia today following a u.s. ban a live report from beijing is next whoooo.

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in global news, shares of zte are deep in the red after resuming trading in hong koongkg

eunice yoon has more >> zte shares dropped 40% today in hong kong wiping $3 billion off the company's market cap investors were punishing the stock because they're worried about the hefty financial penalties that the company will have to pay as part of a deal to get the u.s. commerce department to lift a ban blocking the company from buying american components zte has been penalized for violating american law, but the trump administration worked out a deal so the company could stay in business. i spoke to an analyst who said the fines for zte are huge the current anus fines add up to 2$2.3 billion, the equivalent of three years of profits. so investors are worried n about how and if the company can survive. the senior management needs to be overhauled within 30 days,

and the deal might fall apart altogether because congress is ngement.to block the commerce secretary wilbur ross is trying to sell the deal to some skeptical lawkers, but here the fund managers that i spoke to say they are not very optimistic about zte's prospectses especially becau the trade relationship between e u.s. and china is so strained guys >> eunice, it's ugly i don't know whether it's the -- it's not the pending congressional angst over this. this was destined to go down there any way, right that's probably not helping that the deal may n survive, right? >> no, no. it's just the uncertainty altogether >> yeah. >> a lot to of people i've been talking to said they're worried about whether or not the deal falls apart, which means that zte wouldn't be able to survive

at all but it's also the uncertainty around what will happen with the management onvestor said when i choose a company i look at how solid the management is. i'm looking at profits right now zte looks like it pro. and also that the management is completely up in the air >> the sun came up today over in beijing? does it feel different does the world feel like it has changed? >> the world -- the sun came out very high in beijing today because from china's perspective the summit had a very, very positive outcome from china's perspective they pretty much got everything they wanted >> it's not a zero sum game. maybe the sun came up everywh e everywhere, but not at same time thank you. coming up, "squawk box" makes a call to the bullpen.

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the biggest private investment ever president of the st. louis cardinals and a member of the gateway arch foundation. we were -- you guys got to use the arch to make st. louis in terms of rebirth and people going there, the arch is beautiful. it's the only thing like it in the country. >> absolutely. that's what this whole thing is all about. this foundation was set up, it's a public/private partnership you spe >> you spearheaded it. >> it's all me no he sort of asked the question, why is this thing getting stale? it's our symbol. it's our big thing he pulled a lot of people together including andy taylor from enterprise fame and just got everybody on the same page because it's a national park and

it's but it's also our local park it's right downtown. so getting everybody on the same page to get this thing renovated and properly pulled into the 21st century was quite a task. >> what does it need >> it needed about $260 million. >> but to do what? >> well, it was kind of a -- >> i've been to the top before it's pretty cool >> i would call it like a b-minus visitor expeeshs you had a cross a highway and then find your way through the park into one of the legs of the arch what they did was put a lid over the highway. they made it like a park and really landscaped it then they created an entrance that's right there so you can go down into it it's a renovated museum. it celebrates western expansion. and it sort of -- it's just now right there in the heart of downtown >> can you still go up to the top and look out of the windows? >> yes the trams are still there. it's a funky tram ride because

it has to ki of jerk its way up to the top. but it's a great view up there and the museum is totally renovated. >> you made it a real experience >> yeah. well's so much more it with paths. it's more landscaped it's just an a-ps visitor experience now the museum is just a complete blown out experience with interactive stuff for the kids and all kinds of stuff. >> so the return has got to be -- i mean, you could -- you probably just, you know, look here and then look at what your return's going to be and come pretty close to it an additional million visitors means what cost total $238 million. >> mostly private. >> it'll start paying off immedt >> the thing is, it's a free -- because it's a national park >> but you bring in a million additional visitors to st. louis.

>> that's right. e the first municipality that decided to tax ourselves to invest in a national park. and that's how important this symbol is for st. louis. i think everybody stepped upit than half. raid more $260 million or something? >> somprominent families stepped up >> any named bush? >> well, not -- the kashd cardi did a little the taylors and others it was really a greaow of support for something that everybody knew was important, but it was, , you know, something gets stale and you kind of -- there's inertia and this is what was needed to take it up >> this is a good model for public/private backbullard, jim, we should go can we do that free anyway. i don't need to ask. thank you. and the cards are doing pr well >> they're doing fine.

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media merger frenzy. now that at&t has been cleared to buye warner, who's next on the auction block a big morning for markets as we get ready for the fed's decision on interest rates what you need to know ahead of the open and where you should be putting your money to work plus it's that time of year. we officially kick off the countdown to america's top state for business who's in the running scott cohn joins us with a look at this year's list. as the second hour of "squawk box" begins right now. ♪

live from the beating heart of business, new york, this is "squawk box. >> oh, my. all right. 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 and andrew ross sorkin. let's look at the futures. we are slightly positive s&p futures up by 3.25 and the nasdaq up by 13. mixed finish for the markets yesterday. dow down by less than two points let's get you caught up with headlines this morning president trump has returned from his trip to singapore the president tweeting earlier about the trip saying everyone can now feel much safer than the day i took office. there is no longer a nuclear threat from north korea. the federal reserve is going to be out with its latest interest rate and policy decision today

the fed is widely expected to raise rates this time ound, but investors are going to be di se secting the statement. et has raised its quarterly dividend it goes up to 64 cents a share that's an increase of 3.2% and breaking news from the world of soccer. joint north american bid has won -- it's done -- the right to host the 2026 world cup. won over a bid from morocco. ten games each with 60 games taking place in the u.s. the tournament has been expanded to 48 teams for the 2026 event might even be the united states. because there's only 48 trying no that's not true. but hopefully we will be >> go soccer >> an outlier that -- >> yes

it was very unusual the way it went down this time. all right. a federal judge ruling in favor. there wasn't a lotf -- it was like, well, sort of in favorf at&t ruled in favor of at&t's blockbuster $85 billion acquisn of time warner and david faber joins us now to talk about it. you'll get a comp day, i'm sure to add back. >> yes i certainly hope so. i took a bad week to take >> that's a fair statement >> i've been thinking again, you love m&a you live for it. >> i do. >> every thing in the economy. this could mean more m&a, this could mean less. here we have it and you're complaining about comcast's stock price. >> no. no m not complaining about the comcast stock price. >> moffett's excited lee's excited. he's excited >> i'mthrilled

>> yeah. for the coming fight -- >> i'm loving the soap opera that's about to unfold here. >> i'm interested to see how craig downgraded at&t. i just got that in my inbox. but the story today is going be bid for the fox assets which we said we would get after this outcome in terms of what it means for the antitrust implications however, we don't know what the bid is we probably will know by the end of the day. >> and you mean at the actual end of today >> correct >> okay. because i hate that expression >> no. i'm not saying -- i mean today maybe by 4:05. i don't know just to put a number on it a time on it >> just want to see what happens to disney shares >> i would assume that's part of it why not see if disney shares take another hit

it impacts the price for fox assets >> it was 170-something pages long they wanted to figure out what the judge had to say >> didn't you say they weren't going to win >> no. >> looked like it was 100/0 ust to formalize, craig moffett is here. ed lee is also here. newlminted by "the new york times" from recode but now we can continue the conversation do they use a carrot or a stick to turn you into a whatever? >> it's a very normal process. >> oh, they're calling right now. >> man, that's me. >> is that you >> i'd really like to take this too. >> you want to take it >> i can't. >> we won't listen you go take it we'll talk to these guys >> i'll call them back later yeah i to be here. >> do you want to -- >> you expect they'd be watching >> listen. comcast is going to make its

bid. most likely later today i think is the expectation i think that's correct it's going to be an all cash offer. currentlto the point, perhaps the stoceaken more many point to the mid-30s in terms of the values they would give for those assets. antitrust will continue to be a concern, but a lot of that m have been taken away by judge 's decision. and there is a willingness to meet disney's previous promises in terms of i did vdi vestures. saying we woul willing to divest but we'll have to see. and importantly we'll have to see what disney's response is going to be. this is going to set up a fascinating bidding war, the

in a long period of timet seen could take me back to redstone and diller competing over paramount. four years ago you were almost still a young man. >> yeah. they were going to show some video of -- i don't even think -- there you go. >> holy cow. >> the >> and they thought that was fake you do look the same you look pretty young. but we digress ed, when you go over to "the times," what do you got othe t >> the krugman what do you have to do to get indi indoctrinated over there you fit in pretty well they must have seen that in you to -- ght? >> every time we had our

exchange, they were like -- i think on this deal, back to the news at hand rupert murdoch is going to win out nicely he's got two big companies getting into a bidding war over this i think, you know, the comcast cash versus the disney paper, i think that's a thing comcast basically will come back with all the terms disney wa all the assurances we're now going to include that. that's interesting roberts ahead haven't done reverse breakup fees before. this shows he is extremely focused on it. >> it doesn't mean that disney won't be up to the challenge it'll be interesting to see how far disney is willing to let bob iger go in terms of continuing to meet -- >> how far do you think iger can go >> iger has arguably a longer leash than brian does in that at least they can use equity and

cash so they have fewer balance sheet constraints. brian has said that if you're going to do all this with cash, you get pretty quickly to four mes leverage you really wonder how much further comcast would be willing to go beyond four times. so there's morof a ceiling on what comcast can bid but ok we published a note this morning that says you can easily see this going to 40 for the pieces spun and that means 50 for overall fox. 's not at all crazy. >> 40 bucks for the fox assets in question here >> that's right. again, the key is the international assets from comcast point of view and i think disney's to a certain extent the ownership of hulu would be helpful for comcast and disney but the international is 70% overall of the ebitda. >> du see a scenario where they somehow dividit up?

break it up? it's t impossible, but i can certainly see sky because it's -- because of the separate ownership ending up as a sort of own process. but some kind of scenario where hulu goes one direction. kind of not really i think this is going to probably be one or the other >> do you think -- let's say you're right and that comcast is saying i'm not going higher and they let disney win. do you think he thinks i like doing this anyway? >> just making disney pay more >> yes as a competitor. >> i hear that all the time. >> you don't belie it? we heard someone say human things take over >> there's a lot of those narratives, no question. but thea that brian would say there's some kind of moral victory in just making disney pay more, i'm not sureand look he still has -- you have to

remember from 2004 that the narrative that is dominating inside of comcast right now and for brian is we tried to buy disney in 2004 the market told us not to and we made a mistake and therefore this time we're going to do what i think is the right thing to do. and we're going tox even though the stock has gone down and the market has tried to say exactly the same tng they said in '04, don't do this >> of course the initial bid was way low. i remember that day. we were like, that's the number? for disney when it was a -- >> comcast wasn't comcast back then either.>> no. >> do you think there's any wild card bidder out there we haven't talked about yet a lot of people over the past 72 hours have been speculating about a silicon valley player. an amazon. >> i don't think so.

but never say never. >> these tech players have never really kind of sort of formulated a coheent media strategy a lot of tipping their toes in the water. until we see, like, them formulate a more go forward gy why they would want the ts, i don't think r used to be y he's a rational buyer. but when he was doing it with pixar or whatever, he seemed out of his mind. >> like the theme parks were driven by a lot of those >> i know. >> after the fact. >> would he go crazy now some would say that's way too much and then make it >> there are only so many things lef left to buy thousand in thnow i. >> it's only after we reported it and comcast came in that got got to

>> they're willing to -- >> that's what makes it interesting. >> it's what makes it fun and interesting. >> i'm embracing >> both sides e going to make arguments about the antitrust risk of either side. diss knee wi >> i think part of that argument, we have espn on one side and you've got regional sports networks on the other side there's some doubling up >> verizon, what happens it's the one company we're not talking about at all the cto chosen as the next ceo sends a clear signal that at least for now media is not the path that we're going to be following. they're still betting on the network. >> does this decision give them opportunity and license to buy -- >> if they want to but this is one of those be careful what you wish for type of things. remember think about the pressure that

mcadam at verizon must have felt when at&t bought directv three years ago. i remember the narrative on the street at the time was -- look at&t hasegy and a clear vision and verizon is wandering in theoods look how that worked out for at&t ou tnet toe an awful acquisition. >> why are you downgrading at&t today? based on the balance sheet >> that's right. it's the balance sheet, not the income statement so time warner is good for the income statement it's a growing asset the problem is at&t is so large that the entire asset they just bought, the entire company in time warner only amounts to 15% to 20% of revenues at this and it's the other 85% that's the problem. right? you've got three businesses. you've got a wireless business that has negative service revenue growth and negative ebitda growth. you've got a wire line

commercial services business that is larger than the entire company of time warner that's shrinking at 3.5% a year and the other piece of the business is directv and the entertainmensiness that's shrinking and has negative 9% ebitda right now now you've got a balance sheet that's levered ler levered at just under four times ebitda and $250 billion of debt i me, wrap your mind around that for a second. a quarter trillion dollars of debt at a company levered four times. and ultimately a dividend is a priority and the real question is will the market start to worry that the rating agencies will force at&t to start to prioritize d i think over the next yearnd to two years, you're going to start to have questions about

how sustainable is the dividend given how high the leverage is at this company now. >> reminds me of c. michael armstrong. remember when he was under that pressure you know what he had to do he sold broadband to comcast which created the curren an>> ed ker's chat, he brought it back from -- what was that it was nothing it wasn't -- it was the glory days so randall comes in. i mean, this is -- i think faults him way over whittaker. this is like transformative. this is exciting this is amazing. don't you think? >> he's a mogul. >> he is >> to zoom back a little bit, the judge and his ruling redefined the market place from the traditional media players to include all layers. >> do you ston it? i know we are about net you've got the euro competitive model in your head it goes up a dollar.

>> i know you want to pay more for netflix. >> netflix i'm already not really happy >> we've got to roll craig, one final questio any chance you think dell not only appeals this decision buty it is what it is it's specific to this case the judge says that very emphats this is about this set of facts. and says i'm going after the next one >> i think the next horizontal one, i don't know that you can draw any conclusions about whether they go for sprint/t-moblie, for instance. that is quite different. boy, you read this decision. it's hard to go after fox. >> it puts the comcast universal in a different light back then he might have made a different decision >> one of the interestingthing in the decision, never mentioned the issue of at&t's ownership of

physical distribution. it's only t directv and turner and what are the potential harms there. and concluded i don't buy the harms. there was no at all that what about the wireless business >> don't try to justify your 50/50. this was 100%. this was going through in hindsight, i was so right >> comcast ownership of as an isp, an ownership of broad band. this decision is entirely silent on that question >> craig moffett, ed lee, thank you. we're going to see you on the air. >> if you want me again, i don't know >> if you get a hot scoop on the phone. >> i'm not going to tell you >> i saw the name. >> okay. >> forget about it david, thank you when we come back, the fed and your money what you can expect in today's trading session. we are going to talk markets and

your portfolio right after the break. and later, global oil production in focus russia's vladimir putin is planning to discuss the oil market with bin salman when he visits the opening of the soccer 'll d cup. weget an outlook for oil in a bit. "squawk box" will be right back.

welcome back, everybody. the fed concluding its meeting on rates today a rate hike is expected, but what else should investors be looking for when it comes to the language joining us now is head of global equities at nuveen also j keane from south texas money management sara, why don't we start with you?now there's prob going to be a rate hike, but the language and what they are guiding us next, that's what people are up in arms about. are we expecting more hikes this year >> i think we'll get a couple more when does fed get to neutral s? we believe that will be 2019 ybe th we'll worry about rates moving up too quickly. i think until then earnings e. growth remains strong nap all of thaer means this bull market can likely continue

through 2019 >> paul tudor jones yesterday haan interesting outlook he said he expects rates will rise faster than people are anticipating but also a chance markets could melt up. o. >> that will cause rates to move up faster than we think. until that happens, we're not seeing that yet. the marketd continue to melt up. the question is can the s&p break through that level sustainably. about where the market will get. people become confident in earnings growt >> jim, what do you think? where's kind of fair value or where are we headed? >> i like the melt up scenario i think the fed is raising rates and markets. that's consistent with history i see that too if you look at a midterm election year, markets startstr

strongly but below average 6% to 8% that would be 265 on the dow >> you don't think we've seen the lows of the year >> no. i think we're going to be range bound until through the midterm election if history is a guide, a strong pop in november and december >> so what do you tell people to do right now if you think we're going to be range bound? >> it's a good time to look more towards value. i know that's kind of a tired theme. but the differential in value and growth is historically high. and when that happens, growth closes the gap so we're looking at, you know, we're looking a little more at value. >> where do you put technology there are some people that say a lot of these technology names are value names at this point despite the growth they've seen. >> we buy bo growth and value. but technology is -- i think it's going to benefit from the big business spend i think you can find some growth

stocnd still have a bit of room to run. and certainly some value stocks. it's less treacherous than it used to be in finding technology value. >> how about you >> we agree in that value stocks are looking -- you can look at financials and industrials basically companies that may do better as things accelerate. growth in tech stocks of today are not the tech stocks of years ago when we had a bubble earnings growth is real. >> is there anywhere that you think things are gettingut of whack? things are too expensive >> generally our concern is the bigger picture we think while there hasn't been a lot of fire works this week with all the events going on, tariffs are a big issue. that could cause inflation we're worried about. also the dollar that continues to strengthen. we think that could cause underperformance in international markets and cause volatility globally and in the u.s. >> thank you both for coming in.

>> thank you coming up, deal maker an investor ralph schlosstein joins us and then a ground breaking evening that may put the world of esports on the media map. why you may not look at marshmallows the same ever again. details straight ahead we had long deployments in iraq. i'm really grateful that usa

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♪ good morning welcome to "squawk box" right here on cnbc live from the nasdaq market site in times square among the stories front and center this hour, mortgage applications fell. both new purchase applications and refinancing activity fell. the average 30-year mortgage now, the rate rose by eight basis points during the week it's 4.83% right now we're going to get fresh inflation figures in about an

hour it's thought it rose 0.3% in may. then take a look at shares of h&r block right now they're getting hit hard in the premarket. f 18%.n see it right there the tax preparation firm did beat estimates on both the top and bottom lines for its fiscal first quarter. but gave a much weaker than expected revenue outlook profit margins may fall sharply this year. and that is putting a lot of pressure on that stock this morning. in other corporate news, toyota is investing a billion in ride hailing firm grab this is part of the company's latest round of fund raising gr's valuation is more than $10 billion with this new toyota investment and president trump has now arrived back in the united states following his trip to sifor yesterday's historic summit with kim jong-un. air force one touching down at andrews earlier this morning we've got some images there.

you're looking at president trump also tweeting just a short time ago here's what he had to say before taking off people were assuming we were going to war with north kore president obama said that north korea was our biggest and most dangerous problem. no longer. sleep well tonight coming up, deal maker ralph schlosstein on the news of the morning. at&t cleared to acquirtime warner what does that mean for the rest of the industry? before we head to break, look at u.s. equity futures. dow up by 23, sdnaaq 10, s&p up by 3.5 "squawk box" will be right back. is the fund built to sell etfs are only part or bof 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.

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>>e at&t/time warner antitrust ruling will likely have aple effect on the m&a market here now with us ralph schlosstein. ceo of evercore, part of blackrock. i said earlier how i love our

system in this country because this was the decision that needee made not necessarily -- i don't know if euro regulators would do it this way because of consumers. you know, they'd be their hands about whether the competition is being hurt. but these guys, you got to do what you got to do to compete. do you not >> the great thing about this decision for america is that we are a country of laws. it's been 40 years since a justice department has challenged a vertical merger i think we learned yesterday why they've chosen not to do that for 40 years >> but i sti thought, and i read all the commentary and listened to what randall stevens said this shouldn't happen but to go up against what do you call it? city hall?

if the government wants to do something, they're going to do it but that's not true. >> i think what randall did was very brave >> no kidding. yeah >> pushed all the chips to the center of the table and he won >> all right so what does the shackles are off. anything goes at this point? >> well, as you know, i would never talk about skrij companies or individual deals. but we've already seen quite a big pickup in m&a activity this year globally and in the u.s. th trs is up 60%. and larger deals, deallarger than $5 billion, it is up over 200%. >> did you get a lot of calls last night people on call waiting some people were -- >> i actually have -- i'm very lucky. i have very talented people who do this.

i just try and stay above that fray >> i'm ruling on this particular deal o particular set of facts. and so the question is if you are the department of justice looking at future deals, do you feet i have to be less agsive about future transactions or do you say, you know what we tried, we failed on this particular one we're still going to go after these other transactio >> well, first of all i think the justice department -- and i'm not an antitrust lawyer. but if you look back over the last couple of years, they've had some considerable success in interrupting horizontal mergers two in the health care industry for example. and i think the fact here first of all deal with the fact that

it is a vertical merger. two large companies. but necessarily competitive with each other. i think that's probably -- if i were an antit lawyer and sitting in the justice department, i'd have to think really hard as to whether i went after another one of those >> so you can't talk about any specifics, huh >> i'm ready to leave. >> don't leave you mean leave evercore? >> no. leavhere if all you want to do is talk about that. >> no, we don't. but you do have a lot of expertise in that area at this point, i mean, can we just talk in generalties about whds up with fox or we can't even talk in -- >> we could talk about who co-hosts this show with you, but not -- >> let me do it this way >> we had a long discussion with your bookers yesterday

>> i understand. >> you have an m&a pipeline, ri >> right. >> to the extent you can speak publicly about the pipeline and the industries with which there should be consolidation over the next several months or at least announcements related to, how would you break that pipeline down >> well, what you do is lookt industries where there's a lot of disruption in tech. and so the first thing you look for is when there are real changes in an industry and one of the things that's interesting is all of these disruptive companies, the netflixs, the amazons -- you know, if you look back historically, ey should have been created by companies in

their industry who are already public amazon should have been created by walmart but it wasn't because it was 15 years of investment for a terminal value and no public company board or ceo would tolerate that long-term investment with a very different metric an the quarterly earnings here >> it's interesting you say that we have steve joining us in a little while he's going to talk about what happened with the things aol was working on when they bought time warner it was that sort of corporate change and tamping down of any innotion that really took off. he said they even had things they decided to no longer put voice into aol instant messenger. if they had not been part of a larger corporate structure, that may have -- it threatened their triple play. >> one of the hardest things as

a ceo of a company or a board is to make earnings for long periods of time to create an enormous amount of terminal value. and you have these huge companies that have been created. , facebook, netflix, amazon th for years and years and years were public and were investing enormous amoun of money. and you didn't talk about their earnings you talked about the number of subscribers. you know, if they had been inside walmart or inside microsoft, all you would have talked about is the drag on earnings >> so we're -- since we can't talk to you about anything so we're at 25,000 oe dow. trending 3% on gdp unemployment's under 4%. consumer confidence is high. business confidence is high. we had some deregulation and some tax reform.

you okay with the 2016 election outcome or are you still licking your wounds? >> there are a lot of aspects of e election that i'm sed about. i'm not pleased about the divisiveness in the country. >> which came with trump >> no. >> that's for sure. >> but now we're in the topic joe always likes >> can't talk about anything else take your pick, ralph. you come on, what are we supposed to talk about >> and i do believe -- i am very concerned about the long-term fiscal trend in this country >> okay. >> the economy is in good shape. it's growing strongly. that's true not only in the united states but globally i think five yea from now in retrospect we're going to look at a big tax cut by the way, i think what was done on corporate taxes was

really important because it's really enhanced the competitiveness of the business. >> all right, ralph. thank you. >> pleasure to be here >> pick the poison when we come back, dan yergin of ihs market will talk a new outlook for crude. big day in the market between media news, oil, and the fed this afternoon a lot for investors toest. we'll inbrg out the latest when "squawk box" comes right back. disrupting business and taking on a life of its own. its multi-cloud complexity creating friction... and slowing innovation. with software-defined solutions, like hpe oneview, you can tame the it monster. hewlett packard enterprise. less complexity. more visibility.

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welcome back to "squawk box" this morning next week opec expected to decide opolicy for more we want to bring in dan yergin good morning to you. >> good morning. >> want to talk to you about this but also a new report you have this morning that really may open up in terms of what supply is actually going to look like over the next several years. >> right the big thing is what's happening in the u.s this year our production at the end of the year will be 11 million barrels a day. and that area alone will more than double by 2023 which mean it will be larger than any country in opec.

>> during the commercial break i said i think that would mean the prices would come down you sa n necessarily >> not necessarily because there are questions where other supply is going to be and of course growth and demand. when those people meet at opec in vienna, they're going to be thinking about what's happening in the united states >> speak to the geopolitical risks right now given the tw, given where russia is, where the u.s. is. what are the is and the ramifications? >> i think the decisions are going to be made in vienna are going to be more geopolitical this time than normal. first of all, i think people are talking about oil going to 90 or 100 until president spoke about being too d the iran deal whichl mean a reduction in iranian oil exports, the other countries have to increase production. so there's the u.s./iran,

u.s./saudi they have to maintain then the collapsing situation is venezuela. a all of that's coming together. >> the saudis want the price to hat these days they need around $80 to maintain >> you know, the want goes up and down not so long ago people were saying $90 but i think when they're looking at everything including their relationship with the united states, prices may be in the $75 to $85 range something they would be looking at >> so they are now willing to take less just so they can maintain a better relationship with the united states >> i think that's important. they really wanted to see the u.s. withdraw from the iranian deal and that means less iranian oil. already people have stopped buying iranian oil. >> how long doest sof sentiment continue is that a year or years from now? >> in terms of -- >> to keep iran out of this.

>> well, i think, you know, it's an open ended game what's going to happen with iran. but the power of the u.s. to exclude -- to punishes thaton't go along with cutting back i strong. >> for so long every time you come on, we would beking genuinely about this potential aramco ipo which seemed to drop off the map on the conversation recently what's happened? >> i think it has become more subdued. it's been pushed back. now the signals are 2019 or as the saudi petroleum minister says, when market conditions are optimal, they'll do it. but i think it's pretty clearly not going to happen this year. >> it's amazing, though. what you're basically saying is the united states can throw its weight around. >> yeah. >> and dictate global oil prices based on america's interest. we never could before. >> i don't think we can dictate, but we're a big player >> you said the tweet ended the rise in prices

>> yeah, but that was also the la relationship. but it's true. by the of this year, the u.s. will probably be producing 11 million barrels a day next year the u.s. will be the number one oil producer in the world. and it does give us an- >> the e oil market -- >> their relationship with the united states is very important. we saw the crown prince spent three weeks going across the united states. >> i like it i'm glad we can have an influence. we're not at 200, are we and that's probably not anywhere in the cards >> right and it's also in terms of relationship with china, this is one of the major cards because i think we'll see china import more from the united states >> dan, thank you. >> thank you >> nice to see you when we come back, it is that time of the year. cnbc's list for top states for business is set to be revealed scott cohn joins us with that list scott, what do you have coming

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welcome backerybodt one mon an always anticipated cnbc event. it is our 12th annual america's tostates for business rankings scott cohn is in the house to tell us what's new for 2018.

>> just tell us what it is >> that would be no fun at all i mean, you've got to -- >> we're starting the buildup p. now. for as long ase've been doing this and we started this in 2007, it is hard to come up with a year in which there have been more moving parts in the world of state competitiveness we have record unemployment, worker shortages, making the battle for workforce so we've been talking -- >> record employment >> record employment record low unemployment. the battle for workers is a big deal there's shifts in taxes, economy, energy prices we may be on theerge of a trade war. and it's election year not just the congressional races we hear so much about but also there are 36 states choosing governors this fall. when it comes to state competitiveness, that's where the action is.

>> don't forget in your attempt to take over congress that the most impor worn th country in public policy is done in the states by governors and state legislatures >> then there's azon soon to announce its chance for a second headquarters which has everyone talking about the state competitiveness issues we've been talking about for years top states always an event, but wetry something new this year first because we live in a state of instant gratification and no one has patience anymore, we are going to reveal the top state for biusiness. >> right now >> not now tuesd tuesday, july 10th as always you'll see how your state ranks, read all about state competitiveness. there's lots there right now on cnbc.com in addition to our anticipated overall rankings plus our rankings of our states in ten categories of competitiveness. we'll have new tools to

evaluate lots more about all these issues at topstates.cnbc.com. >> if a state is trying really hard to lure an amazon or somebody and offering tax breaks for that, does that put them higher in the rankings or lower in the rankings? >> depends if they're doing incentives, that's something we look in the costs of doing business. the more states offer incentives, they earn points in that category. along with low taxes >> it's june 13th. >> uh-huh. >> july 10th >> less than a month away. >> we can't -- ican't be next week >> no. we have to build it up >> okay. is that it >> i'm glad we get the reveal for once on our show >> three weeks almost four weeks. >> roughly >> can i have a hint is it one of the 50? >> yes it's one of the 50, yes.

>> all right big night for esports. the first-ever e-3 fortnite pro-am was last night. the event was hosted by epic games. the developer of the popular video game 50-team 100-person invitational paired guests with celebrities from the nba, nfl, and the ufc in the end tyler ninja d his partr music man d.j. marshmallo won the event and split a $1 million prize t damags from happening in the first place. at cognizant, we're turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them protively protect the things that matter most.

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you'll only pay $4.95. fidelity. open an ac deal approved. >> we are gratified with the court's decision to categorically reject the government's bid to block this historic merger. >> at&t in the clear for its $85 billion bid for time warner. who will jump into the merger mania next the man who led what was once the biggest merger ever reacts to the merger steve case is our special guest. plus going higher. we're not talking about that viral raccoon. we're counting dow the big

fed decision and a potential rate hike as the final hour of "squawk box" begins right now. ♪ live frothe most powerful city in new york, this is "squawk box. come kba k back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin it's nice. i don't know why we don't have sorkin on the street >> it's nice outside we will return to the street >> there's a lot of questions to ask. about mergers or whatever. yeah i think there was some drizzle out there. futures this morning have been marginally in the gr

that's still the case. up 17 on the dow up 2.5 points on the s&p and nasdaq indicated up 9. treasury yieldhave been pretty well behaved under 3% recently. now $22.95% on the 10-year note president trump tweeting oil prices are too high. opec is at it again. not good as he tries to talk down potentially the price. we just heard from dan yergin about maybe the way the saudis are thinking about effectively subsidizing. right now the chairman of wpp telling shareholders the search for a new ceo is moving rapidly. the chairman also said the board's actions following the probe in former ceo martin

sorrell's behavior denied he used wpp money for a prostitute he resigned in april and yet the company has not said exactly what that investigation entailed nor has mr. sorrell. apparently there has been some kind of nda or nondisclosure agreement signed by all parties that will prevent us from learning about this. our top corporate story, at&t and time warner getting the green light for that blockbuster merger david faber joins us live from the new york stock exchange. david, the sne >> yeah. that's what we've been focused on this morning. as you well know, comcast our parent company expected to unveil a bid for fox assets it has been competing to buy for some time. failed, of course, initially disney winning that bid some

time back earlier this year. worth roughly about $28 a share for fox shareholders in disney stock. but comcast continuing to come to play here as we well know having said publicly a couple of weeks ago it would do that but waiting to see what judge leon and the at&t versus the doj case would end up doing. of course with thacision yesterday, comcast feels at though it has gotten the green light to move ahead. dealt with much of the potential antitrust risks that might have been previously. in that company's bid for those assets in question and now we're just waiting we expect to see a bid before the end of the day today from comcast. the question is how high will it be disney's been worth a little less than 28 bucks a share we'll how disney's stock performs today comcast is certainly going to come at a higher level which

also includes the same protections at least disney has offered in terms of an anti-trust review and what would be required in terms of divesitu if they were to meet certain antitrust restrictions even though of course given yesterday's decision, becky, that's certainly less -- not as expected as it might have been if it had gone the other way it is worth laying out for people wt happs from here. july 10th shareholder meeting from fox shareholders to approve the disney deal. until now and then, a big back and forth. we get the bid from comcast today. see what it looks like fox's board will want to taka closer look. some time will go by let's call it a week then they may say, okay. that is potentially leading to a superior proposal. then they'll give disney five days to respond.

disney has five days to match, essentially. that would be an expectation that disney would choose to do something to match this higher bid from comcast and then after that if you go back and forthould have threeto match but disney will always have the opportunit come until it chooses not to. rupert murdoch here in a good position for getting a high price for his company. previously he had really favored disney stock the opportunity itm to be a large shareholder there does he or would he be willing to take all that cash from comcast if it's a higher level many people say, yeah, he probably would he's a hyperrational human being. he decided he needed to sell this company after trying time warner a number of years ago. now it's going to be all about the money and the antitrust risk >> because it's the fiduciary responsibility he would have to other shareholders, too, that has to play into that. you're right

nobody thought he'd get to the position where he'd be selling these assets you're going for the highest deal >> it would seem like it you've got the fox board here who will weigh in. murdoch controls nearly 40% here the vote is only around 17%. fox shareholders have a lot to say on this deal with disney bu doesn't mean if murdoch is strictly opposed to comcast that he could sell to comcast. >> right chance the july 10th shareholder meeting for fox could get moved? >> yeah. you know, in these kinds of situations, it's always a possibility that it will get moved down the road as this thing continues to go back and forth. depending on what either side body expects iger to back town here that's certainly not what i'm

hearing.there's a willingness ty more than they previously had. tax reform has helped the overall value of the asset, the markets have helped the overall value of the asset at fox. you got to remember. the stock was trading what mid-20s before this started. you're telling me it's going to be worth more than twice that? we'll see. but rupert murdochetting richer by the minute right now >> thank you for joining us all morning. >> sure thing. all right. let's talk a little bit more about all of this. joining us right now is steve casehes aol cofounder. he was the ceo of a rol when it what the merger can learn from0. aol/time warner. >> great to be with you. >> you wrote in that op-ed when you sat down to analyze the

deals, the ups and downs of it you wrote about it in your latest book. you said that chapter was the hardest and most traumatic thing you had to do in terms of writing that book. what happened? >> it was obviously a big disappointment we announced the merger almost two decades ago. it was to capture the convergence in technology. this was before netflix had streaming. before facebook even existed before spot fi g launched. before youtube got launched. but the -- leader in media and communications together they could really usher in the future. it's about execution and the companies never really came together, never really capitalized on that opportunity. the opportunity two decades ago to play offense was really lost. now wh see with at&t and time warner and fox and comcast and others is they're really playing defense. they're quite worried about the

position in the future these new digital entrants these were start-ups two decades ago. or ideas two decades ago are now the leadcompanies. facebook and netflix, and amazon so it's dpointing to me thinking back two decades we weren't able to -- it does not surprise me now the big media companies are much more worried. now that's why you're seeing this consolidation >> what advice would you give right now to at&t or any of the other companies in termsf how the execution maybe went wrong before what you would do differently this time. >> the biggest challenge we had was around having a shorterm orientati orientatio there are some who weren't as enthusiastic about the internet. we're worried how it might cannibalize their businesses they tend to play defense o poessed to playing offense and

try to create the future as big companies come together, there are still a lot of start-ups creating interesting new products and services. that's really where the big competition will come. not from the big companies but from the little companies. companies of tomorrow. the big so focusing on that and leaning into the future and pl offense is important the other thing is really running it as one company. it would have enabled us to lead the way in digitalusic, lead the way in digital video and other kinds of things. running it separately and having everybodykwaer -- quarterly results. >> you were able to trade aol because who knows what it was actually worth for a real company of time warner and you got out -- aroma therapy

somewhere. and you own half of hawais is ta happened to you to be able to monetize something that was worth a billion dollars. >> i wouldn't completely agree with your characterization >> you're a genius i'm giving you a compliment. >> strategically we werethe leaders in dial up at the time we wanted to be the leaders in broad band there was that hedging our stock had gone up tenfold in two years at about $15 billion again, in the '97, '98 by the time we spoke of the merger, it was $60 billion be the leader of this next wave of the internet. >> you think it could have worked i don't think it ever could have worked >> i think it could have worked. sort of would of could of should

of but again, 20 years ago or so when it was announced all the assets were within that combined company.so it's disappointing. i think to everybody that the opportunity was not seized >> we've been talking thus far about the classic media landscape. trying to merge with each other. if you were tim cook today or jeff bezos, would yoinking abou run at fox >> it's a tough one. because i think they have a lot on their plates already and they're certainly able to build their businesses and extend to a new area amazon most recently with whole foods moving into the grocery sector it's not crazy to think they might be interested in broadening their media assets. i think they are the ones playing offense opposed to the media companies playing defense. it'll be interesting to see what happens. particularly even today with the

fox assets in there, it's partly a debate between percent -- and that's part of the bundle, probably the crown jewel of the assets that are being contended for with fox national geographic has rights >> what's the -- what's your wife's preference in terms of that >> you'll have to ask her to come and speak to it. my phone has been ringing a lot laly though. >> okay. >> all right steve, we want to thank you for much more joining us today always good to see you and we appreciate your time >> thank you. coming up, north america -- kelly is here on set coming up to weigh in on the short-termism

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welcome back to "squawk box" this morning couple stocks to wch right now.

stryker says it is not in discussions with boston scientific the comment coming in an s.e.c. filing shares of bsx had jumped on word that stryker had made a takeover approach looking at boston scientific stock down now about 6% on that news stryker up a little over 5.5%. qualcomm will not abandon its data center business that's despite a report that the chip maker was exploring to sell or shut down the division. company says it will keep operating after making some staff reductions everybody's going to understand this when we get done with kelly starting with me let's get to our next guest. a member of the cnbc global cfo council, kelly kramer. we have to talk abe cloud. i'm going to a cocktail party. i'm going to be talking about this new deal with google. it's a big deal. >> absolutely. >> canou explain it to me? >> absolutely. this is what i'd say

you need networking whether it's in your enterprise then you can use the cloud also to calculate and automate. and you move your workloads. our deal with the cloud, with google or if you want to move it up to the cloud which is just data center somewhere else but it makes it seamless. so you can basically write your apis once to the cloud >> you help with the hardware don't you. >> we are a hardware company as well as a software company we've always had large content of our systems so more and more where we've been going is moving to subscription content if you look at the last bunch of acquisitions we've done, it's been in cloud software companies. it's been in collaboration activities it's been in securities. so we're very heavy on the

software side as well. >> the stock is responding obviously. and did you work with when chambers was still there >> i did >> the difference now with chuck. is it a different strategy a different mind-set >> yeah. i think they're both great leaders. they have a similar pedigree what chuck's been doing is we really shifted where the business is going. we've really doubled down in the industries we want to lead in which are software-led businesses we're really offering our new platforms as wel making that inl shift which is what really investors are responding to. >> we promised we'd talk about the ort-termism. i can remember times in the past where cisco may have been waiting to close a deal by the end of a quarter and maybe it closes 24 hours later. so i understand why companies

think that it's lumpy with doing it every three months. shareholde like to know. what's the right answer? >> there's pros and cons for everybody. cisco where we are going through a siness transformation and there's a lot of change where our analysts don't apply to the new model, eng it's helpful to guide them with where we're going, how they think about the business i do think otherwise the models can get out of whack >> you want to keep giving guidance >> i don't mind giving guidance. we like communicating to our investors. we like being transparent. we think it's important to kind of let them know where you're going. >> you hear that, sorkin if you're counting on analysts that are getting it wrong, that's where the company help by giving guidance for the -- >> well, this goes back to the whole idea of do you actually want the information out there or not and what kind of -- but it's about aligning the investor

long-term -- the mentality of the investor with the company. >> the company's got to do what the company's got to do. but if you explain why, but if it's a big black box and nobody knows. >> you're constant ll lly communicating.we're making inver the long-term. i do think it's helpful to have investors know where you're going in the long-term and how the path is going to happen over the next quarter >> so is there an alarm clock in the cloud he could have to get on this show >> i'm sure there's someing there. i'll tell chuck you want to see him on "squawk." >> there's one in the cloud. i bet you there is i bet you can do that. >> there's about everything in the cloud. >> we loved having you >> yeah, thanks, joe >> thank you, kelly. >> great coming up when we return, first the oval office.

now you're never going to guess what kim kardashian is lobbying for. it includes jack dorsey. i think i'm with her, by the way, on this thing programming note you don't want tss this later. uk prime minister theresa may is going to be on cnbc this morning. she's going to speak with our own steve sedgwick "squawk box" returns in just moment

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welcome back to "squawk box. right before the break, we mentioned kim kardashian and what she might be lobbying about. she's lobbying jack dorsey for an edit button that's why i said i was with her. it would let you revise posts after you tweet them out the reality tv star tweeting the following, quote, i had a very good konvo with @jack this weekend at kanye's birthday and i think he really heard me out on the edit button jack dorsey was a guest at her husband kanye west's 41st birthday replying to kardashian's tweet the cofounder of the social media site wrote, now i see why i was invited. the edit button has been long requested by users if you make an error, you have to delete the entire tweet and

send it out again. i've had that problem. >> me too. >> it's easy to leave out a word, the grammar is off i don't know if you've had this. if you delete it and try to resend it out right after, the sort of better version, i don't think it gs to as ma people for some reason. >> i think i just annoy people >> i think something happens >> and i don't like deleting a tweet because thenomeo thinks there's some, you know, why'd you to delete >> you don't want a misspelling to be out there forever. coming up, we are minutes away from economic news breaking we'll be right back. whoooo.

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welcome back to "squawk box. rick santelli here live on the floor of the cme buckle up. it's getting warm on the inflation horizon. up 0.5% on headline ppi up 0.5%. if you strip out the all important food and energy, up 0.3%. both hotter than the unrevised rearview mirror of 0.1% and 0.2% respectively now, if we look at the year over year numbers, we're expectin 2.8% we crash through the 3% handle

up 3.1%. and if we look at year over year ex-energy or core, what we end up is 2.4% that follows 2.3%. every single metric here is hotter than we're expecting and all of them are higher than our last look except for the lateral move of one of the categories which was ex-food and enn the te which actually -- no, i take that bac that was higher as well. so this is pretty much a number that if this was yesterday's cpi, my guess is rates could have cooked much higher. now here we sind 2.97% in 10-year. dollar index basically unchanged. mario draghi's big day tomorrow. japan on friday. we'll see how the market digests houghts?

now, rick. some day we're going to be talking about it so many good things happening. that's not what i'm worried about. >> one would expect these numbers to move higher if it's for real, right? >> right and there are. i tried to get someone to admit it today, it's like -- i don't know it's like pulling teeth. theyind something that they're worried about -- >> you know, joe here's my analogy. here's my anal in the current environment, if somebody maybe somebody in the administration, maybe their head guy discovered a cure for cancer you know what the headline tomorrow would be? they'd put out, 150,000 people out of work and billions of research down the tube that's the way it goes sometimes, right >> yeah. it's going to be -- you're right. it's going to be looked at like that but you know what? we always see on election day whether that's just the people saying it or whether it's

everyone out there who feels the same way >> oh, you mean the polls aren't right anymore? that kind of excuse? >> we get a snapshot of where the actual country is. we take a vote and get a snapshot of where it is every onn awhile thank god. it brings us back to reality occasionally t now we're going to leisman, rick so i want to -- let's get steve's version of reality he is in washington this morning ahead of the fed's rate decision and he's got a nice shirt/tie combo on >> you like this, joe? i thought about it for a little while. unlike most days where i don't think about it >> steveat do you o this >> i think this is something the ted if fed's going to have to think about. these are hot numbers. we didn't have a chance to talk about the cpi number, but you had 2.8% on the headline number. that's edging up, firming up the fed's -- toward the fed's target

there. and you have to remark, though, the energy component of this producer price index is up you got a trade component up 0.9% i don't quite understand what that trade number is there have been price increases that have been linked to some of the tariffs out there. i don't know if that comes there. you also have a big jump in transportation warehousing up 0.7%. these are monthly numbers. these are not year over year numbers. and you have this goods number up 1.3% that's on the wholesale side we don't take a point of ip flags on the wholesale side and translate to a point of inflation on the consumer side there's competitions and margins and all sorts of stuff it depends on whether or not producers can price it along you think of higher to corporate profits. or if they can pass it along, it ends up costing the consumer we'll have to wait and see all of this feeds into a more hawkish fed today and whethe not they incorporate that into

the statement. couple three things i'm looking for. quarter point hike today that's kind of baked in. and then the question of the summery show the average where the fed suggests it's no longer quite accommodated. they're saying the could also switch to holding press conferences following every fomc meeting in an effort to maintain transparency after forward guidance is removed. which may or may not happen. you can see what the fed's problem isly looking at this chart. what happens in september why is that so low it's because there's no press conference there and it ticks back up i don't quite know exactly what's wrong with this process that the should really be

thinking about raising rates every time it meets rather than every quarter. that system seems to work pretty well some people seem to feel that. the chairman apparently among them seems to think thinking about a press conference every month will allow to move and have greater flexibility i think this is something the fed is going to process these numbers today. certainly feel better about hitting the target and maybe accelerating a little bit the rate hike cycle here >> all right >> when you're at 8% o9%, you're trying to get to 10%, you do a quarter point every meeting. that's the way it used to be because you were actually trying to change it by whole points but now a quarter point represents almost a full point, it seems like. >> that's right, joe and it's a really great question because what is the neutral rate and i think there are some at the fed who think it's as low as 2.5% that means the fed doesn't he much work to do.

others think it might be 3% or 3.25%. does the fed feel it will physically slow the economy because of all the stimulus comiown the pike in terms of tax cuts >> remember the old days, steve? they'd do it every meeting remember they did a half a couple of times. yeah because they were trying to get somewhere. >> what about shrinking the balance sheet at the same time >> yeah. that's right there are some questions about that as well that are really head spinning mechanics of the financial system here. but there may be some changes to that too the fed might not have as much work to do on shrinking the lae. you're right t that relativity sort of idea that a point -- a quarter point now is equivalent to a point then when you don't have that far to go. >> which may, you know -- that sort of explains how carefully they think about doing this and

how much we talk about whether a quarter point makes a difference it means a lot more than it used to and it does make a difference. >> yeah. >> but there's paul tudor jones yesterday who said if i'm going to do "x" on earnings, what were the numbers he threw out there 20%? i'm not going to lose a lot of sleep on a blip on the fund. but he had a big number for what's going to happen with earningsin that contest, he doe the fed as consistent. should you really get that excited about the fed doing 100 points this year rather than 7 if your earnings jououtlooks are 15% to 20% >> no, we wouldn't all right. leisman, greenspan is on later that'll be -- because he was the

guy who used to move in big increments like that anyway, thanks, steve. all right. here is what's happening at this hour retailer target has increased its quarterly dividend target's going to be paying 64 centshare. the stock looks up by 1%2 cents. shares of korn ferry earned 80 cents per share for the quarter. korn ferry also giving aupbeat outlook. then mortgage applications were down by 1.5% with both new purchase and refinance declining. the average rate is now at 4.83%. when we come back, a lot more to talk about will the time warner/at&t deal approval now tigger even before

merg merger you're l&t, time warner, comcast, walt disney, 21st century fox we're going to talk to an analyst and a portfolio manager about all that next. >> on behalf of everyone at at&t and time warner, we are gratified with the court's decision to categorically reject the government's bid to block this historic merger because, when you really, really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it- and see it through-with digital.

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we're up to 600 days since the merger was announced back in october of 2016. and that it's unfair to the defendants, to the hundreds of thousands of employees of the companies whose lives have been hanging in the balance and to all the shareholders and all the other constituencies of these companies. it's time to move on >> that was the attorney defending at&t speaking for at&t after getting the go ahead to buy time warner. joining us right now is a halvertyo manager larry good morning to both of you. you're expectation we all expect comcast is going

to go after 21st century fox that may happen as soon as today. but your expectation even beyond that in terms of the larger media landscape, jennifer? >> i mean, on my list it's sprint and t-moblie. i think yesterday's announcement makemountain easier to climb for them and i think the second one to watch from my list is what does verizon do i think verizon noting is a purposeful shot across the bow >> what about the t-moblie/sprint transaction do you think has anything to do with this transaction? because you mention it's a big difference >> i think what at&t actually did to help that cause is widen the lens of which the competition is looked at

a year ago is just at&t competed with cable, verizon, sprint, t-moblie now i think through this trial, at&t has shown that it's much more a larger competitive playing field. now house does sprint and t-moblie, with the burden saying it's not just two carriers going to three it's a much wider playing field. that's something that needs to be considered. >> larry, you agree with that? >> i think that she's right with regard to the t-moblie/sprint. but i don't think it's going to be as big a party as some might suggest. when you look at the other guys who might be involved in media consolidation and of course facebook, google, and amazon come into play

there are a couple things i think are risky here if i were on the board of the managements of these companies the first is that you're moving into a less desirable area the internet technology companies have cash ranging from 40 for amazon to in the neighborhood of 18 for google. where as the takeout multiple on time warner is 11-x. and heaven forbid that the market, andrew, starts awarding these companies a merate discount or notices as in the case of netflix that there's not a lot of current cash flow i mean, you lo at at&t/time warner it's got $52 billion of cash flow netflix is pushing $1 billion right now. so it's a very, very treacherous area if you're an internet

technology company to wander in here because at the end of the day, you just don't know when wall street's going to take away your currency i have been totally wrong in estimating how long wall street has awarded azon and netflix what i would call these preposterous multiples but interest rates are rising. >> if you're right, those are the ones who need to be jumping in now at least the expectation at the moment is that they're not the ones doing this. well, if -- th, andrew, you have to go back to your previous speaker who could tell you all about it. aol when it had the merger with time warner had l -- i actually confronted jerry and said, if you don't get your stock up somebody's going to buy you. aol bought time warner and we know how that ended up. because aol at the end of the day didn't have the core

competency to manage the time warner business. larry doesn't have the core competency maybe they higher the right person maybe they don't but they're taking two risks they're taking the risk that they get the management part of it wrong and they're taking the risk that the multiple stays where it is that investors continue to give them the carte blanche on their merger activity. i think things are risky >> -- not appreciate they're managing the media business given the success they've had thus far but jennifer, what about -- one of the companies we haven't really tald about is verizon you say that's on your list. >> yes i do think the appointment of the former ceo of erickson spoke very loudly as to their path it's all about the network i think it is all about making that network the best network. we've been on record saying the street very much underappreciates what they are

doing on the fiber front and, you know, the first step of 5g is the residential broad band but there's many different layers to that i think their view is build the best network and let the revenue opportunity develop from that. i think that indication last ay kind of should put at least on the shelf or concern that they're going to have to be forced given yesterday's announcement to run for media. >> we're going to leave it there. jennifer, are you in vegas this morning? >> i am. it's 107 degrees >> have fu the heat. and larry, thank you so much for joining us as well thanks when we return, we're untinghe opening bell on wall street. we'll check in with jim cramer at the new york stock exchange here are the futures right now green a little bit, anayyw up 11 on the dow we'll be right back. ♪ (daniel jacob) for every hour you're sending about half a gallon that you're idling in your car, of gasoline up in the air.

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being the world of a joint north american bid won the right to host the 2026 world cup. the bid is from the u.s., canada, and mexico one other bid was from morocco calls for canada and mexico to

host ten games each with 60 games taking place in the u.s. the tournament has been expanded to 48 teams for the 2026 event and jim cramer joins us. we have to do nafta now. i mean, we got to do nafta. >> oh, yeah. >> i see goldman said that it's brazil in world cup. they did like a llion simulations. will frost has done a million simulations in his mind and he doesn't come up with that. i don't know it's boggling. >> i think that's a fair just in terms of -- that's probably bad to say 60 for us and 10 a 10. that seems like we're kind of throwing our weight around there, jim they get ten each. >> i know. whatever meanwhile nafta, i got tariffs, i got the president back i got people -- we got to sow some fear here we have to

we haven't sowed an ounce of fear at least going back and forth from the hot number with rick. not enough fear. >> not enough fear. >> yeah. >>well, we're not thinking, you know, we're going to be vaporized any moment. >> cg into 2018 i thought it waover for the planet. now e it off the table. >> now we take it off the table. we're back to trade wa and not shooting wars, i guess. >> yeah. i know i mean, it's not as scary. >> do you, umm, do you have the eventual outcome of this what is going to be fascinating be our parent company and disney and what happens with fox? >> i so defer to the man who came back from his vacation. >> i know. >> he cut his vacation short for me to even offer view in the face of someone that shows that level of dedication, that would be ludicrous. >> and, actually, not only did he, you know, cut his vacation short but he was in here at like

before sorkin this morning. >> before sorkin sorkin had to dash off the piece in the times. >> yeah. >> with the nice color o front page. >> t jimmy. >> no problem! >> we have sort of tongue and cheek kidding around about comcast stock and we all have it and whether we, you know, we give brian and steve and everybody else the benefit of the doubt here because the shareholders it is down a lot of people don't want to the wait around, it seems like, jim. but it seems like long-term here we go again. these are great assets that they would make comcast probably a stronger company, a stronger competitor. >> someone downgraded today. i mean, where you been you're waiting for the decision? i mean, look at this point, they win it goes higher they lose they buy back stock.

i mean, this is when you downgraded this is like, you know, the 30 is point of maximum pain. >> yeah. agreed. >> all right, jim. >> defer to my guy my guy who ruined hivacation. >> yeah. he loves being here. him and sorkin love this merger stuff. >> this is the human drama of business right here >> i know. we have the paul turner jones cue that up. >> i know. exactly. anyway we'll see you in a couple of minutes, jim, on cnbc. don't ssmi brian moynihan live on closing bell at 4:00 p.m. eastern. e thought it was a fire. e thought it was a fire. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum

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all right. check this out, everybody. twitter users were transfixed by that furry kriter who was stuck on the ups building in saint paul, minnesota. the raccoon started scaling the skyscraper yesterday and got stranded high above the ground office workers tweeted these pictures none of the windows op and the raccoon quickly trending it on twitter. the animal made it to the roof just before 3:00 a.m

he was captured safely and going to be released folks, thank you very much for being here today make sure you join us tomorrow right now it's time for -- well, 10 seconds. we have time to check the futures quickly. we've been watching through the morning. we're still in green territory but just barely. dow futures up by 15 the s&p up by under two. now it's time for "squawk on the street." good wednesday morning welcome to "squawk on the street." i'm carl quintanilla jim cramer and david faber a central judge clears the way fed decision at 2:00 p.m. eastern fouled by powell's second press conference. futures pretty steady. europe is mixed. theresa may will join us