live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at the u.s. equity futures. we saw stocks end lower yesterday after the fed announced not only that it was raising rates, but it may be raising rates at a faster pace than anticipated for next year, too. dow is down 16 points now. s&p down 1.38, the nasdaq down about 13 points. yesterday the yield on the ten-year creeped higher to 2.979% this morning you're looking at the ten-year yield at 2.95%. weak economic data out of

china overnight. the china central bank kept key rates unchanged today and this was a surprise as the pobc was widely expected to hike rates following the fed's move yesterday. this morning a decision is due from the ecb we'll get that at about 7:45 a.m. this morning. mario draghi will hold a news conference at 8:30 eastern, which we will monitor and bring to you also the top corporate story, comcast offering $65 billion in cash for some of 21st century fox's assets a $35 per share bid, 20% higher than disney's all stock bid. i think there's no other way to say it but game on and clearly comcast has now put disney in a box one way or the

other. >> yeah. there's a lot of mice analogies. the best laid plans of mice and men. did you think of that? >> i had not >> that's good with the mouse house >> that's what i mean. best laid plans of mice and men. we'll have a couple guys on who follow this. that doesn't mean they know more than andrew ross sorkin or david faber or us. at this point there's no way disney can say -- >> comcast put bob iger in a box. >> to do what? he doesn't have to go above -- >> it's an interesting question of whether he would have to bid over $65 >> why >> first, there's a couple over -- >> over $35 rather

i'm thinking $65 billion. there's a couple of interesting issues here. >> regulatory? >> as we know, rupert murdoch for whatever reason seems at least or has seemed predisposed to wanting to be a disney shareholder. wanting to work with that. so if you came in at a bid at 65, at 63, with shares, you could probably get your head around some kind of -- >> that might be okay for rupert and the murdoch family, but they only have a 17% voting stake in this >> then you have -- then you have lots of -- i think potentially a board can recommend a certain bid. >> i'm asking these guys >> 63 billion. >> i'm saying whatever the answer ultimately will be, it doesn't have to necessarily be a straight apples to apples --

>> for me, i would rather have 65 than 63 >> i can understand the regulatory argument, but short of that -- >> after yesterday, who knows -- whenever it was. >> disney stock went up yesterday. >> i know. >> the question is is it going up because people think that comcast is going to win the bid? or is it going up -- what is it going up for >> they all went up yesterday. it was down 1.50, at one point it was up 30 cents, 40 cents after all your selling >> sell the rumor, buy the news. >> let's ask these guys. >> ask these guys. >> you don't want my answer any way. ask these guys >> joining us to break down the battle, i didn't know which of these guys was the analyst or the media guy, but with the outfit i should have known >> it's the glasses, right

>> the blue. you look like you might be headed to an after party or something. we have greg williams, vice president of technology, media and telecom at cowan & company >> it's an interesting debate here >> is it >> yeah. rupert murdoch, this was his end game all along or he figured out that he could get a lot of money from which ever player gives the superior bid ultimately disney, if disney comes in with a bid that's close enough that he can justify to shareholders, he wants the board seats, he wants the stock. i don't think he wants to get out of the game, he can convince the shareholders to take it. if it's a vastly superior bid and comcast certainly threw down the gauntlet here. 65 relative to 52 is significant. if disney can't come close to that, he doesn't have a choice i think he has to take the bid

if it can't come close what if it's 63? that's close enough. >> where does that leave sky he also -- iger would have to step in and say we're willing to match or get -- on sky, you probably need to match >> you probably do need to match. comcast really wants sky there could be some side dealing. i know there was one analyst saying could you make a side deal with disney where comcast says, all right, we'll take sky, back off everything else if you let us have sky. they could try to split the baby but ultimately with sky it's tougher, but otherwise disney just needs to get close. >> what do you think >> it's anybody's guess. bob iger has no track record from a mega cap bidding war. we don't know how price sensitive he will be or how much he values disney being a distinct asset on its own. this could be a head fake with comcast. we've been debating why they

should acquire fox or sky in the first place. it's the distribution pipe why are they channeling their resources into media, which i would argue is a slowly sinking ship versus the distribution, which is connecting to the home. >> you're saying you don't like the deal to begin with >> i don't they should be going to distribution, pipes into the home or pipes with wireless. owning that connection is much more valuable than the media business, tacking on -- >> brian laid it out clearly in that call yesterday, he said this is a strategy that he and his father and steve burke, after that, had all kind of laid out, they think it's important to have both the content and the distribution, and frankly that's what we've seen the rest of the industry do. >> you don't think they're insincere and just trying to run up the price for disney. you think they're wrong in strategy >> it could be a thorn in the side for disney. i think, again, if they focus on

the pipe and let the application layer, whoever -- >> i thought content was king? >> if you know how to manage it correctly. but piling on content upon content, you're piling on more management >> we all talked about the possibility or the idea that there are clearly assets that disney wants and comcast wants it all sounds simple to say they should split the baby and walk away from this how do you get to that place there's lots of legal issues about that it's not so clear that bob can call brian, brian can call bob without getting into a collusion argument rupert would have to bless this. if we could ever get to that place, which seems like the rational ending to this, from a structural point, how would you do it? >> before you get to that, you have to look at the history between iger and roberts there was a hostile takeover attempt on comcast's part to disney back in 2004. rhy this may be a winner take all

game for that reason alone i think if you tried to disentangle it you would have to ask fine legal minds about how to do it in terms of assets, my sense is comcast wants all the global stuff. talking about sky, star india. >> then they'll all fight over hulu >> and they won't get it because they'll only have 60% any way. this will be tricky for them i think they want hulu i think comcast needs it more than disney. everybody wants everything here. >> it's not just legal consequences, it's the tax ramifications, too smarter minds than myself can figure that out. ru it's not just hulu, maybe they want the studios as well the cable networks, they don't need it. the international play would be interesting. >> this idea that you think this is a mistake is interesting to me if they weren't going go and do this kind of deal, what deal

would you have them -- what kind of distribution would you want them to have >> eight months ago it was a maturing distribution business, be the pipe to the home. you can add on ancillary services, home security, they're adding a wireless product to that rather than going up the stack and convoluting what otherwise was a good story there's two options. buy back comcast buy back shares at seven times why are you buying sky at 12.2 times. maybe a few years down the road after t-mobile and sprint, if that goes through, they can take over that company. >> would you try to jump into that game? do i think ultimately these cable -- these cable companies will need wireless and need it on a commercial retail basis >> absolutely. the wireless con veer jevergency is a win story comcast has to follow the

convergence story. they want t-mobile sprint is a fixer upper, i don't think they want to get into that maybe let t-mobile handle that >> with the whole regulatory environment the way it is, could they ever merge with verizon >> vericast, the combined company, that would be large 57 million homes on top of 100 million post paid subscribers with verizon that would not pass the regulatory test, i would think >> how long have you covered comcast? >> three months, launched in march. i did work in those assets many years ago. >> i wonder if you thought the comcast acquisition of nbc universal was a mistake? >> no but i would argue that was a willing seller >> the right price >> number four in tv, so a bit of a fixer upper and easier play >> but the climate is different now. at that time comcast did not need it in the same way.

now, if you look at buy the wisdom, maybe you don't, but if you buy the wisdom, you have apple, netflix coming in and you need scale to fend them off. that's disney's play, then i think comcast needs that comcast has a relation with the consumer why not have as much content as you can to try to reach them >> comcastizon or comazon >> it's still comcastic. >> where do you live >> the west side, 57th street. >> you haven't been to the city. you haven't been to paris. you don't have triple play >> i have been a cord cutter for five years now >> there's more of us. >> he's the future >> that's the issue. >> you'll be watching netflix all the time >> i do. >> barack and michelle, 24 hours a day. >> i watch it, too. >> thank you

when we come back -- today's stocks to watch, elon musk is making another big bet on himself. according to an s.e.c. filing, the tesla ceo bought more than 72,000 shares of tesla stock over the last two days he know owns 32 million shares of his stock and tailored brands is down sharply today despite reporting first quarter earnings and revenue that beat forecast same-store sales fell just short of estimates the fda rejected mylan's generic version of glaxosmithkline's asthma drug advair regulators found several minor deficiencies in the drug but did not elaborate further. this is the second time the fda rejected mylan's version. secretary of state mike

pompeo saying stough sanctions n north korea will remain in place until the country is completely nuclear free pompeo is now headed to beijing where he will hold a joint news conference later today with the chinese foreign minister he took some tough questions yesterday, seemed, depending on who was listening, to be a bit vague. let's hear what eamon javers has to think about this and go to washington for some of the biggest stories that washington is watching. >> the big story that folks inside the beltway are focusing on last night and this morning is a report by cbs news that sarah huckabee sanders and her deputy could be heading for the exit at some point in the future that is setting off another round of speculation about some high-profile players sarah huckabee sanders dismissive of that report in a tweet. here's what she said last night. does cbs news know something i

don't about my plans and ply future i was at my daughter's year-end kindergarten event and they wrote a story about plans on leaving the white house without talking to me. i love my job and i'm honored to work for the president of the united states. notice she says she never is leaving the white house, says she loves the job and is hochber honored to work there. so there is a question on when she will leave this administration has had enormous turnover. and sarah huckabee sanders has been under fire of late forced to defend her own credibility. last summer she said the president did not dictate a press release about the trump tower russia meeting, then the lawyers put out a note saying the president did dictate that that has put sarah huckabee sanders on the defensive in recent days. here's what she said in the press briefing room about her own credibility.

>> i work every single day to give you accurate and up-to-date information. i will continue to do that frankly i think my credibility is probably higher than the media's. i think in large part that's because you guys spend more of your time focused on attacking the president instead of reporting the news i think that if you spent a little bit more time reporting the news instead of trying to tear me down you might actually see we're working hard trying to provide you good information and trying to provide that same information to the mreamerican people >> sarah huckabee sanders now refusing to answer questions about her statement that the president did not dictate the press release, referring all of that to the outside white house council. so you have a press secretary in a position about not being able to answer a question on whether she was telling the truth on a matter sensitive to this russian investigation. that gives worry around this issue of the mueller investigation for the president and sarah huckabee sanders

there's a lot for her to think about here we'll wait and see no confirmation yet of her plans to depart the white house, but she's pushing back on that this morning. >> low bar that i -- that i have more credibility hope hicks, i think she said she wasn't leaving and then left >> gary cohn >> can i ask you about the ig report >> sure. >> it looks like what they'll do -- it's not what republicans want, i don't think. it looks like the main thing they'll stick comey with is that he was insubordinate about reopening the clinton investigation a couple weeks before the election. it doesn't go back to the juicy stuff, tarmac or whether he will, you know, exonerated hillary clinton before the interview. i don't know maybe that's all in there. if it comes out -- if jeff sessions says look at this, she

have never reopened that investigation, it caused hillary to lose the elections, that's not what republicans are looking for. >> sort of what democrats have been complaining about >> i don't know who likes comey now. the enemy of my enemy of my enemy. >> he had the democrats hating him, now the republicans hating him, then the democrats loving him, we'll wait for the republicans to start loving him again and then we'll complete the cycle. >> turning back to sanders for one second i had one particular question, is there a benefit to staying in the white house during this investigation from a legal perspective? particularly on the individual legal costs that staffers who have to participate in this investigation have to bear themselves >> sarah huckabee sanders will have to get her own outside counsel to deal with those questions. you with use white house counsel

and lean on them, but at some point there is a diversion of interest the white house lawyer works for the white house not for sarah huckabee sanders personally. it has to take the white house's interest first not her's at some point she will have to get her own lawyers. that's engs pxpensive that's why sometimes when you look at the story of who is leaving, who will come into the white house to take those jobs is a question. there might be somebody willing to do it, but they'll have to do a thorough search to find people to come in and take those legal bills on >> are you buying a flame thrower? >> are you talking about elon musk >> doesn't appeal to you >> i have three kids >> you have to put it somewhere safe >> it's a big gun. >> i think it's a bad idea we said it before. >> i would buy a tesla, i don't

know about a flame thrower >> what's the motive it's weird >> it is weird >> he's really -- >> do you take your flame throwing on the boring company's tunnel and ride the hyperloop with it? he has a vision for the future and it involves a lot of dangerous stuff. >> that's good thanks >> see you. when we come back, we'll talk more about those flame throwers from elon musk. now his boring company has a new project. we have the details on that when we come back your muscles look good, but we should be seeing more range of motion. i'm fine.

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♪ welcome back to "squawk box. we are in the chairs elon musk's boring company won a bid to build a train to go from downtown chicago to o'hare airport. not clear when it will be completed.

the "chicago tribune" says the estimated cost is expected to come in below $1 billion >> will they be digging under ground >> supposedly for parts of it. >> how can it cost less than $1 billion. >> the pricing doesn't make sense. the one thing he figured out that others didn't is how to do -- it's not that he's making tunnels at a cheaper price it's he's making tunnels at a cheaper price because he's making smaller tunnels right now if a vehicle were to go through one of his boring tunnels, there's lots of room on all sides. there's no room on all sides >> that's a claustrophobic's nightmare. you're trapping me in a tiny tunnel >> i don't know enough about this whole chicago thing could work >> they could use it. >> great escape or shawshank did you see how big the shawshank -- you don't want to move a lot of dirt

hard to move a lot of dirt >> will we talk about the flame throwers >> we are. not this one houston we have a problem. houston the city hates it when we use that phrase nasa's opportunity rover is lost in a dust storm on the surface of mars. that robot has not been remondaying to contacremonday i -- responding to contact attempts and may be lost opportunity survived a similar storm back in 2007 >> right after we started finding organic molecules? i don't think they want us to know >> what really happened? >> they found some organic molecules up there, right? >> yes. today is the day the u.s. open begins at shinnecock hills golf club out in south hampton can't really get there from

here among the groups to watch, today tiger woods will tee off with dustin johnson and justin thomas it has been five years since tiger won a tournament of any kind in nine starts this year he has four top 12 finishes including a second place at the valspar. according to betting odds, u.s. open favorites are some of the guys that we were just talking about yesterday, dustin johnson, dustin rose, rory mcilroy, justin thomas, ricky fowler, and some dark horses like -- >> spieth playing? >> he's not putting that great, but putted well at the masters phil has never won a u.s. open he would love to complete the grand slam >> came close. >> he had it until the 18th hole jeff ogleby won.

they say a dark horse can't come in and win, but you never know the guys with all the skill obviously, and shinnecock, i think the fair ways are 15 yard wider than 2004. 2004 was so hard that no one broke par on sunday. retief goosen won that it was the greens that were dry. i was reading an article this morning that it's common for crowds to have to jump out of the way when there's a ball rolling down a fairway, but usually not after someone putted on the green and it goes off the green. they're like, whoa that's how slick the greens were last time. it's supposed to be windy today. the rain is supposed to not come >> the flame throwers? >> they delivered the first 200,000. >> how much did they cost? >> 500 bucks >> people are burning stuff

down what is it for >> people are doing all sorts of things with it >> it's supposed to be for fun my anxiety about this is that people will walk into sorts of places with their -- with their flame thrower. it's called not a flame thrower. >> the flame thrower >> for legal reasons, they can't call it a flame thrower, so they literally call it not a flame thrower device >> he has never grown up >> weed whackers, leaf blowers, i understand that stuff. what is the function of the flame thrower? >> there were people using it on creme brulee >> that's extreme. >> people were doing s'mores with it. >> okay. >> that's dangerous. >> people will walk into a fraternity house with it one day. who knows what will happen >> are you allowed to take it where you want can you walk on to a subway with one? >> technically i think you can. >> did you follow the darwin

awards >> yes >> we'll see this. >> he's just raising money really for the boring company. that's what's going on here. this is a stealth way to raise money through selling fire toys. >> he's lost you >> on this particular issue. he knows we talked about it. coming up, the fed raises rates and signals two more hikes to come. the impact on the markets next first a look at yesterday's s&p 500 winners and losers this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed

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♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning u.s. equity futures at this hour have been under slight pressure. you'll see things are bouncing back s&p down by a point. dow down by 7 points nasdaq down by 8.5 points. the yield on the ten-year treasury note, which did pick up and push closer to 3% is right now trading at 2.95% >> today's top corporate story, comcast offering $65 billion, all-cash bid for some of 21st century fox's assets

equates so about $35 a share, 20% higher than disney's all-stock bid. comcast, the parent net work of this network, included a breakup fee, 2$2.5 billion that matches the disney bid. 1.5 billion that would go to disney that they would be paying so potentially they would -- >> go to disney. >> yeah. a break up fee to disney not only will they pay 1.5 billion, if the deal was blocked, they would pay 1.5 billion to disney and 2.5 billion to 21st century fox, so comcast is all in and feels confident about their prospects.

>> we talked about judge leon's decision this week, everything was riding on that we knew that ahead of time the decision they got couldn't have been better >> right >> now back to the fed back to the fed. steve liesman joins us now from cnbc headquarters with the reaction to yesterday's fed meeting. saw you in that light-colored suit summer, good day for it. >> is it safe to say this basically the fed is the last to know they go to 2.7 yesterday, they finally -- are they always the last to know they don't want to be, in terms of their statements, i guess, they don't want to be ahead? they don't like forecasts. they like things to be almost in granite before they acknowledge it do i have that wrong was that a led line that we might be at 2.7 or 2.6 >> 2.8 is their number

>> you're faster than they are >> we have the rapid update. you ask good questions as always i think the fed has a view of the world that gdp numbers will not change much relative to their outlook. they see this fiscal stimulus coming down, they waited on that, then upped their forecast when they saw the simplus picture, but they did not change the forecast for the years ahead. i want to talk about the ecb, they are set to announce, we think, the end of the quantitative easing program today. we should maybe get that at 7:45 the market is building in a fourth rate hike this year from the fed. but there's some skepticism. let's look at our cnbc fet

survey 40% think the ke would end in december they added the hike for 2018, now the consensus is for four up from three upped the inflation and gdp outlooks, lowered the unemployment forecast. now let's look at the probabilities in the market. 78% for september, that's higher december now, 49%. so some skepticism the market is 50/50 on that december rate hike no rate hike built in for january, even though that will be the first of the new press conferences every meeting. now march is priced in at 32% for another hike the fed might be more hawkish relative to the street's expect cha expectaions, but not relative to the growth outlook

2.8% so it looks like the fed has not bought in that the tax breaks would have a permanent up tick in growth. powell said we'll see. >> they'll be the last to know the irony of it, steve, of all the team, of all the institutions, of everyone on the whole planet, you would like them to have a good feel for the future because they actually make decisions based on it doesn't matter if you're right we say good job, steve those are the people that you wish had a good feel for what was going to happen. you would hope they were not the last to know >> hold on hold on. hold on. >> they're setting policy and are looking in the rearview mirror >> what happened what happened is in december of this year, the congress and the president signed a tax cut, a major stimulus fast forward to january and they passed a cr that was plus 3$300

billion on spending. the fed's take all along has been we cannot forecas something that has not been approved politically by congress or the fed would you want them to go in and change the gdp outlook before stuff became law >> i just wish they were at least as good as the average prognosticator >> do you know they're worse >> kind of i think watching over time >> i don't think that's necessarily true, joe. >> we'll see finally at 2.8 now let's see if it flows in 2019 and 2020 >> the fed is at 2.8 2.4, then it goes back to 1.8 to 2% range on the long run >> right >> notone of the federal reserve officials has baked in what the omb and the trump administration baked in at 3%. when i say not one, not powell

and not quarles, so they're not yet buying into this long upward shift in growth. >> don't forget that we talked about this you said 1.8 >> i'm saying the cbo and the federal reserve sees 1.8 to 2.1% long run growth rate of the economy. >> we're not exceptional here. we have not always done better than that. we're not america. we're not great. >> no, we can't defy -- the concept is that we have to defy the rules of math. the rules of math is productivity plus population growth equals gdp growth >> okay. can't be done. we'll see. thank you. >> maybe it can be done. i hope so. let's talk about the markets and the economy in light of the fed's meeting on rates joining us is mark domes from nomura and david bondeson of the banson

group. let me ask both of you, let's start with david what we heard from the fed yesterday is that rates are probably going to rise faster than the market had been anticipating they are easing their way into these issues yet we did not see a big selloff on the market. what do you think about that >> i'm not sure it was quicker than the market is expecting fed futures expectations in december have been 50% for quite some time now. i think the real key conversation is the one joe is having with steve. i don't understand the fed holding back on gdp expectations in light of the history of what these things have done you can follow their predictions in the past with both president bush's tax cuts and they were woefully behind on that. i think that the market is more concerned with that gdp growth than what the fed is doing nobody in the market is expecting the fed to surprise

them the fed will keep gradually normalizing. >> let me ask you that if the gdp growth expectations are below what everybody else assumes they will be, doesn't that tell you they'll have to raise rates faster than they indicated? >> it does not i don't accept the fed views that as their mandate. they view it as they have to coddle risk assets i think the fed is telegraphing what they'll do. and i think it's good. they need to be normalizing. they're indicating the reason rates need to keep going higher is because of growth the idea of surprising with interest rate policy because of better productivity, i don't think they will do it. >> mark, what do you think >> so, i think the fed is actually kind of close to consensus on the growth forecast let's put a different angle on this if you're the fed, you're looking at your dual mandate, inflation and labor markets. inflation is close to the target and we're close to full

employment so they're signaling they'll remove accommodation a bit faster i don't quite understand why markets have not bought into that yet so far this year and last year the fed kept its word. years before the fed did not meet expectations, but going forward, we think they will. getting to the debate happening earlier about growth and fiscal policy, the fed has talked about more specifically about the effects of fiscal policy on growth powell skipped steve's question yesterday. steve basically asked what effects will fiscal policy have on the outlook chairman powell doesn't like to talk about executive action or things that come from the executive branch or the legislative branch the bottom line is the fed has estimates that are consistent with what i would say most economists think >> mark, we have a hot ppi number, very hot reading on

that does that tell you inflation is picking up or is this a one-off? >> we think that inflation is picking up and if you look at the fed's forecast from yesterday, they have inflation above 2% for the next couple of years. we think that inflation could go a bit above what the fed is thinking the fed has inflation at 2.1%, we think it goes up to 2.2, 2.3 by the end of 2019 for markets, we have to get worried if inflation gets up close to 2.5% if it's 2.1, 2.2, 2.3, that's not flashing danger. 2.5, that's when you have to start worrying >> thank you both for joining us still to come, a lot more to talk about bob johnson, we'll get his take on the fight for fox between comcast and disney and all of his other views about what's happening in the media

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welcome back to "squawk box. social media giants pour lots of money into their platforms video has become a regular

recipient of dollars even though we're at the point of recording video is pretty good quality for most people editling and sharing it is the next task. there are a way of solving these camera problems out there. joining me camera makers good morning to both of you. you have this camera it's a cool product. explain what this little guy discuss. this is actually different than most of us use >> it makes it very easy for people to capture everything that's on it >> when you say it captures etching on it. the big revolution is. >> you don't have to point the camera >> if i want to get a shot of becky, i don't have to have it on becky >> it's like a dome on it. >> there is two lenses for a 360 degree picture

>> let's say i want an awesome shot of you whatdo i do in >> you can first shoot and point using our app. >> what about the focus issue in >> it's all in focus >> everything is always in focus? >> yes >> what about depth? it's always in focus >> yes the big thing with an app. you can move it around and save it up. >> the idea for this was what? people weren't very good at taking pictures? >> sure. actually some of the most differently things for people, it can be shaky or they don't know where to point it it solves that for you >> because you don't have to think about it >> in the moment, you don't have to worry about where to put it. >> who is your biggest competitor -- is gopro your biggest competitor or is this a different product in mind?

>> it can be used in action sports for example we have people mounting this camera on their dog. the 3d point of view from a dog's perspective. this type of shot is not physically possible with any other camera anyone that wants to make great video, this is the camera. >> how much about video, how much about stills? >> mostly about video. our software is super powerful, the stabilization and the reframing you get. >> in terms of the video piece of this, one of the problems we all have, i actually have enormous apples of video >> what do you do with it? >> let's say you go skiing, you put a gopro on your helmet you go for an hour or two, you got a lot of video there's only two minutes that actually matter. then you have all this video, you have to go back, edit it, figure out which part you have

to grab. >> rilo solves the problem >> how do you do that in >> you get stabilization, you can shoot the two minutesch then it connects directly to your phone. >> you know my issue i don't know when the good part is going to happen, right so people are, the reason why people are leaving this on their home, you think they will click and turn it on and off by the way, there a remote >> there is a wireless remote. we have blufoot integration. >> when does this get integrated into this or does it never happen it will be difficult because of the unique optics of the camera, it's hard no minimize that some of the use case, you wouldn't want to mountain open your phone, it makes sense to have this mounted in different locations. some of the best shots, like on their leg while biking

you wouldn't think it would give you video, you get a unique perspective. >> this is all patented? you have a few pant tents? the -- patents the reason i ask when gopro came out, it got a huge valuation, people ultimately decided it's a hardware company >> i think what's different about us, we focus on software we worked at instagrainstagram. we're software engineers >> it is very, very cool we appreciate it thank you for coming in. >> all right coming up, much much more on these little guys. >> comcast and disney are ready to battle. analyst michael nathanson, stay tuned. you arwahie tcng "squawk box" on cnbc.

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>> fox and the hounds. comcast $65 million bid is on the table. will disney jump back into the hunt the latest media merger frenzy is coming up >> breaking news from the ecb him european central bankers ready to make a decision on interest rates the ruling and market reaction just minutes away plus, china trade and trump's meeting with north korea's kim jong-un. former congress secretary carlos gutierrez is our guest as the second hour of "squawk box" begins right now ♪ they call it dr. love >> announcer: live from the beating heart of business, new

york, this is "squawk box. >> good morning and welcome back to "squawk box" right here on cnbc, te we're at the nasdaq market site. take a look at u.s. equity futures on this thursday morning. right now the dow looks like it will open down, s&p 500 off marginally here. the dow and s&p 500. they're coming off the biggest loss in june they said that starting next year, it will hold news conferences after every meeting as it does now numbers ahead, we will be about 90 minutes, we'll be getting three different reports, initial jobs will claims, retail sales, import/export price, twitter highlighting real time news events for things users may want to follow, to create specific destination, it will include tweets, videos the new features will be rolled

out over the next few months if you watch a sporting event, it will all of a sudden pop up you won't have to find the hash tags and tweets. comcast is offering $65 billion for fox in what could be just the beginning of a possible bidding war. julia bororstin joins us now. >> it's changing to all cash this is a revised proposal after fox's board rejected comcast's old stock offer in december citing regulatory concerns this time comcast offered assurances, a breakup fee in case the deal is blocked this in addition to the 1.5 breakup fee

fox would have to pay disney the move comes after tuesday's warning to improve at&t/time warner they say they are not concerned about reg thattory hurdles >> we -- regulatory hurdles. >> we are confident in our approval as we are likely to receive regulatory approval than disney's action. fox has a collection of terrific businesses that perfectly compliment our own and our superior offered to its shareholder truly reflects the value and opportunity we see in these assets >> this settle comes as the growth of online contributors have an international reach to help the company better compete with the tech giant. still no word from disney. fox issued a statement acknowledging receipt of comcast's offer saying it will review the deal. becky, back over to you.

>> julia, stay right here. lets bring if another voice for more on this brewing building war. michael nathanson is the founding partner and senioral lift at moffett nathanson, thank you for being here this morning. >> you are welcome >> first question is how does disney respond >> i think they respond by adding cash to it saying we're right where you are, same bid, same price, fox, you decide. >> you say that not only for 21st century fox existing assets, also, what about sky >> the sky bids come from fox. >> fox isn't going to raise their bid unless disney says they will leave. >> fox needs, disney needs to say to fox, let's raise that bid. we will match the comcast bid, nothing has changed. >> you think they have to match the bid dollar for dollar in >> i think they have to match it dollar for dollar to appease stockholders saying to fox, we want the higher price. we don't care of tax

implications of an all stock deal you need to go at fox and get the better price >> you are not suggesting coming back with a full all cash offer that's exactly like the comcast offer? >> disney was okay with that stock deal they sold under lever in a cash debt so low. it adds cash to the bid. >> at what price would you be an investor in disney they go over, if you were a comcast holder would you be upset if they go over >> what's interesting both companies can go a long way before you hit that point. >> the upset number? >> a long way to go. we did math yesterday, say you got a $the bid is 45 40 bucks comcast and disney doesn't really them the investors into a mood of saying this is too much can you add a lot more leverage on disney.

>> don't you think they are saying it is too much if you look at comcast shares >> the comcast, you can tell by a strzok drop, it's very unhappy. the disney base was happy with this deal the first time their stock went up yesterday, which is high. we all thought stock was going to fall. >> what do you think that means? does that mean that disney is not getting it >> there are so many interpretations. what struck me with this, if disney could reduce their number of shares of fox and add more debt, it's actually better for shareholders, right? an all stock deal the first deal was dilutive if you add more debt and lower the stock component, it's better and counter intuitive. i don't know if the mark was sayisa-- the market was seeing that component. disney shares are better off it's counterintuitive. >> becky, i'm looking amount those assets of the combined

companies that disney and comcast are both going after my question is whether or not you see a is thatterio where the assets get divied up if they strike a deal when it comes to both the likes of sky and huh lhulu, do you see something like the that happening? >> that's a prevailing thought right now. perhaps we split this down the middle, we don't get into a war, which could happen if both companies keep raising their bid. i think there is a lot of personal anning tonism between both sides here. cooler heads will prevail. that's not our core assumption it's go to a bidding war it's a good idea, a good thieves. i don't see any evidence of that at this point in time. >> we had moffett on yesterday >> yes. >> craig, not mary el enmolen

moffett. were you at 50-50? his idea or -- >> the funny thing about our firm is i had a different point of view. >> i would hope so >> i was more bullish in time warner winning we were telling people the past six month bs, just go buy time warner >> i don't know who pays you for that had vice, 50-50 if the head spun won big obviously,they were paying smvenlts who wins here, 50-50 for disney versus comcast? >> that's funny, craig said you'd bring that up. >> he was on last week he didn't think leon, the government made a good case. no one else saw. >> this is one man's decision. right. so it's how can you get inside the head of a judge and say, yes, the court case didn't seem very winnable from the doj side. so the media, hefmer house said time warner and fox were the

easiest ways to play this. i'm happy we had the media call, which is long fox, long time warner >> what about this one >> to your question, i think disney will ultimately prevail if they want to prevail. right? so our view is disney has already used their equity, comcast hasn't, disney has not used any debt the balance sheet is unlevered right? so our feeling is disney can win this if they pursue it at some point both guys got four times leverage you get to $50 bucks for the fox stub we should call a truce our wins may wednesday up winning by losing, exactly >> let me ask you this, we listened to brian roberts. he says he thinks comcast's odds are equally good as disney's in terms of getting past the regulators few think that disney has to come all the way up to the same bid to match it. >> right >> do you think the same i would think if you were more

concerned about comcast, you would think maybe disney didn't have quite some time >> yesterday, we thought the decision by the judge gave comcast a blinking huge green light, like, go for it right. because it's going to be harder for the fox board to say, whoa, we're cautious about that bid. you just had a slam dunk slap on the doj for trying this. i think that is, we were surprised disney went up yesterday. we thought that ruling made it much tougher for disney to argue that >> i don't mean to make it political. i will for a second. this goes to the regulatory piece of this. >> right >> i always looked at the disney-fox deal and the concentration that exists because of some of those combinations in terms of the impact on the u.s. consumer. whether you are a film-gore or a tv viewer. >> right >> is more impactful on the consumer pricing than i ever

thought the comcast bid would be given 70% of the business is outside the united states. why do you think that the board of disney, i'm sorry, the board of fox >> right >> felt that the original comcast bid was somehow materially more risky. >> because of the distribution angle that comcast owns distribution at new york city, fox owns a yes new yorker right? so you take the yes network and nbc and cnbc that creates such market power in new york for comcast or in philadelphia, let's say, if they owned the rsns that's what people are worrying about at fox >> that combination also on hulu, so comcast gets huli, which is >> disney would get it on the other side

>>.com k comcast owns it >> there is a view given murdock's relationship with the president and the administration that if he likes one deal or leaks the other deal, that perhaps the administration are will look more favorably upon whatever he likes. >> it doesn't matter what his administration likes or doesn't. >> it may slow down at&t, though >> this isn't whether you win in court the risk is whether you even have to go to court >> i'd say to you, andrew, if rupert murdock will get paid more money from comcast, at the end of the day he walks off with more money because of comcast, yeeng don't think he will tell anyone to block that bid. >> his thinking may be more important than anybody else's the cash implications taking an all cash bid than cash and stock

bid, where do the numbers add up is it effectively the same outcome for him? >> you have to go to the tax base you'd save 15, 20% differential based on the tax base of his capital gains. >> so your view, though, for him, he could accept a bid a $65 all cash bid to him might be worth $60. $65 billion bid. >> right >> you see what i'm say something. >> what disney is saying here's the debate amongst the shareholders is this, we are giving you stock at $100 we think in three years time once we get our business launched, the stock is $150. why would you want to take a capital gains hit on $35, not an all cash, versus trusting us and letting it ride. >> that depends on who the rest of the disney shareholder base is >> exactly the base, itself, i think will have intention. some shareholders bought into fox on this play, others have

been there a long, long time >> i don't know what the members is i know at&t shares saw more volume than in 35 years. it's hard. >> one of the things we will watch for is who's in that chair at fox, right? initially when the deem was first announced, disney went up, fox went up. people like this combination >> what's the overlap between comcast shareholders right now and disney shareholders? >> it's a good question. well, since this year's started, we've had a ton of people selling out of comcast who are disney shareholders. i think the overlap is, it's a great question, i don't have an answer for you it's much lower than it was four months ago >> do you believe that comcast shareholders have voted effectively in the marketplace in. >> no doubt. >> that changes the comcast shareholder base, too. you have people -- that's where you wonder how low do they go? >> right >> you traded out your

shareholder base, there more pain to come >> back into it, we talked to our cable and side company investors all the time the anger that's been directed towards comcast through meetings we've had with our investors is incredibly high. that's why the stock is where it is today. >> why are you doing it? >> i heard 150 if you knew disney was going 150, put a strong buy on it. three years ago when it was at 120 in 2015, it was supposed to be at 150 by now it's not it took a wrong turn >> we have a strong buy on disney >> okay. good but is 50 going up 50%, that's not a slam dunk. i wouldn't -- it may or may not. >> disney outperformed the s&p >> i know. >> what do you have on comcast >> craig is out buying comcast >> it's too cheap. >> you think a lot of the issue is the cord cutting has been oversold in some places and diz

in i with the espn thing, that's been over. >> i think within the past two or three years, i think things are changing not that the world will stop core cutting the value of a lot of news is showing itself to have - >> you think disney knows how to do this? >> i think disney brand is not a slam dunk. >> i will buy it you told me 150. >> i will come every 82er. >> i don't have to think >> stock is trading 14 times earnings >> cash is king. though >> yeah, you know, ki tell you that disney has convinced pixar lucasfilm and marvel to have stock. >> what's the 50 >> what's the absolute high number >> you can get to 40 >> what about 45 >> what about 50 >> it's like gulf oil. i want one of hothose. >> we had an analyst on.

he hasn't covered the company that long. outright, maybe like some comcast investors, strategically it doesn't like this transaction. in your mind, if comcast were to lose, where would the value of comcast shares go? >> craig covers comcast. i expect you all to weigh in on this but comcast is an incredibly cheap company. >> this guy wants him to buy back shares. >> so does craig that's been the call the past couple years your core business is fine, buy back stock you are well positioned. >> that's what the streets said when comcast was traded by disney last time >> that is in brian roberts' head, look the street doesn't know what i know i'm making a long-term bet here. >> there are 700 million viewers in india alone brian knows what he wants. >> i think so with bob eiger

it's going to be a long summer >> coming up, when we return, the fed wants to be more transparent or so they say >> as chairman i hope to foster a public conversation about what the fed is doing to support a strong, resilient economy and one practical step in doing so is to have a press conference like this after every one of our >> mtis.d fomceeng we will finds out if wall street likes the idea and what it could mean for your portfolio after we return. "squawk box" returns in just a moment

the federal reserve hiked interest rates as central bankers attempt to keep up some inflationary pressures fed chairman jay powell saying the goal is to keep inflation at 2%. >> i would say the economy is in great shape. if you look at household survey, confidence is high look at business, confidence is high if you ask, if you survey workers about the job market, they'll say that it's a really good environment to find jobs. if you survey business, they'll say workers are scarce so i think overall we have a really solid economy on our hands here so what we're doing is we are trying to conduct monetary policy in a way that will sustain that expansion, keep the

labor mark strong and keep inflation right at, sorry, not above but right at 2%. >> we will talk economy and what it might mean for stocks joining us, kathy jones a fixed income strategist at the schwab skrerpt for financial research jeff is in studio with us today. chief investment strategist at raymond james studio mustache, it's been a while. >> it's been a while during this bull mark. you are still bullish? >> yeah, sure am >> you were talking to kathy in the green room >> yes >> did you get her any more bullish at all in i've talked to her in the past. i can't get her to move the last time i think it was the economy, pre-trump was doing well, tax reform won't make much of a difference, was that it? >> no, i don't think so. >> are you -- what are you for the gdp for the year >> we're getting up closer to 20.8, something like that.

>> is that new for you >> the tax cuts and spending bill will clearly give us a boost in the short run i think we're in the same camp most economists are in a shorter run a one, maybe two-year event rather than shifting up potential growth >> it looks like a pure front-end loaded game, it doesn't structurally change by corporations do business here. there are people that are more bullish that think maybe we can get a more we used to have 3% it's being held back by population growth and productivity, is that it >> the two components of gdp are population growth, labor force growth plus productivity we know it's slowing because of the aging population and we're pretty much at full employment so our ability to pull people in is diminishing who may be on the side line. >> 2020, back in the 1s? >> i doubt it? >> barely 2?

>> i think we're in the 2s the 1s were an outgrowth of financial crisis >> previous deep recession we came out and did 7%. you don't think it had anything to do with over regulation, obamacare, tax hikes, none of that hurt us bashing corporations on a weekly basis? none of this was sell inflicted you don't think? >> you know, rather than talk about politics, why don't we talk about where the bonds market is. >> i was trying to figure out. >> we had productivity growth globally for quite some time now. so it isn't just a u.s. thing. it's been slow all around the world and all around the developed world and that's a phenomenon that most economists don't have an answer for >> you think we skip one year and then slow, maybe we do it? >> no, i think the economy has leg share. i think productivity will

increase capex the people told us we were at peak earnings are looking foolish right now. few look at the stills out of s&p for the 3rd, 4th quarters, into next year, i think people are way under investing. >> we got 40% from november 9th on i mean, a lot of good news already reflected. 25, 3 again? what is it on the dow? somewhere around there what does it mean from here? haven't we gotten most of the bang for the buck? recalibrate snit >> no, i don't think so. i think estimates for next year, bottom up operator, you are pushing up 174, i think is the number i see. you can run the multiples on that we ought to have higher historic multiples anyway a lot of things going on with the economy and corporate america. i was just in washington, d.c. there's actually some good things going on in d.c a lot of the regulations that have been pulled off the books and the ones that are on the

books, some of them are not being enforced >> some of the people that listened yesterday thought the fed might be more inclined to move more and maybe more quickly. is that a part of your reason for thinking that we don't sustain -- could they make a policy, not mistake, in tightening, will that be a head wind >> we are clearly focused on the labor force. they see inflation picking up. we're still not at normal interest rates there is always to get to normal as quickly as they can >> i would argue the return on exam the spread between return on capital and the cost of capital is still very wide so the fed has room to move rates. it's really not going to be that impactful. >> he's a stock guy. they call it the dismal science. that's why right? >> yeah. i want you 2020 i want 3%. give it to me. >> he's going to badger you. >> i want it bad.

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good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in time's square among the deals this morning deal in the cruise industry early this morning royal caribbean is buying a two-third stake in silversea cruises for $1 billion civiler sea is one of the major players in the luxury cruise mark michaels did beat estimate however, it gave a weaker than expected forecast for the

current quarter and says comfortable store sales will be about flat >> that is a punishing trade michaels is down 14.5% we are a few minutes away from the latest central european mark any declaration on when the ecb plans to end its current stimulus program that statement will be out at 7:45 eastern time. when we return, comcast giving $65 billion for 21st century assets we will talk with the founder robert johnson right after the break all about it as we head to that break take a look at u.s. equity futu futures. the nasdaq down marginally ba ia me

welcome back to "squawk box. comcast, moving full steam ahead with a $65 billion bid to buy fox assets the offer coming after at&t got the green light. here to talk all about it is rlj's company founder and chairman of bet network. bob is with us good morning to you, bob >> good morning.

>> sow know, all of these gentlemen around the table or should we say now in the ring this morning, whether it be bob eiger or brian roberts or rupert murdock. if you were to try to game out how this could go, you'd think what >> well, first of all, i'd say the acquisition of content by distribution companies is not new. jan malone pioneered this one. he invested in bet, discovery and turner back then it was a strategic necessary. i'd say now it's a strategic imperative because of the wide opened distribution platforms that allow anyone with the capability to produce innovative content to get into the business so i understand clearly why directv wants time warner/hbo and comcast wants the fox

entertainment aspect and the distribution both in the u.s. and globally because with a digital world, allowing everyone to have access to the consumer, the person with the greatest content and the appeal of content, the excitement of content is going to have a head start on leveraging both distribution and content in a way to maintain the revenue flow from a consumer's relationship >> put yourself in bob i caner's seat, this morning, the bid comes in from comcast, it is clearly superior in all ways at this very moment to the bid that eiger has on the table does he come back with the bid >> speak up a little bit >> excuse me >> speak up a little louder. i'm having trouble hearing >> i apologize, i was saying put

yourself in bob i caneiger's set this morning after this comcast bid comes in, what do you do >> well, you know, if you bobby i caner looking at what the world is going in terms of content being more than king, content being basically the golden gogol golden goose that delivers you a stream and ability to relate your content to distribution so no one gets between you ap your customer that's a primary objective if y you if you want to be a major player globally. so if i'm bobby eiger, i've got the brands, i've got the ability, the capital to leverage some of the brands not fully exploitive i would continue to look for other brands that appeal

somewhat on a targeted base. i would look to gather all of that, that i can and make sure that there is a wide opened access system in terms of distribution. for example, if i was disney, i'd fush u push for a set top box to make it easy for a customer to get any product any time without having to be tied to a distribution format >> that's the way i would look at it. >> pretend for a moment then you are rupert murdock, are you going simply for the highest bid, meaning right now the comcast bid is more than disney's bid rupert murdock wanted the board seat to be involved but also go on the ride i thought he imaged upside in a combined company and wanted to participate in that.

there were cash benefits if you are rupert murdock are you looking for the total top price, also, given you do represent shareholders, how should rupert murdock think about that issue >> yewell, you know, it's hard o figure out what rupert should do he has one, built up a huge desirable portfolio of assets that he's decided that it's time to exit that because of the distribution conundrum either he plays on both sides of the tile, he will have access to the consumer or he abandons a part of it look at how he can strongly monetize the existing assets that he's keeping. you know, it's hard to say, you know, what rupert's objectives are right now and the issue for

him i think is, you know, you can't be small in the content business today you got to be very large so if his plan is to sort of tie in with a tech company that brings the experience and creative experience and ability to that, or is it to just wait and see where the highest bidders will come from in the next round of mergers. >> let me ask you. when you sold bet to viacom, they own the stock will they get bit up because somebody owns it, too? >> i owned it a long time there running bet. after that i exited the stock. viacom, cbs, amc, there are a lot of companies out there that have the ability to execute

innovate compelling content. the question, at what point do they look at the landscape and say we can't win without direct and constant access, uninterrupted access to the consumer him and i think these are very valuable assets that one day someone will come along and say in order for us to emotionally check to the customer, using our distribution customer to enjoy the content and engage in e-commerce and customers to engage in advertising platform, those assets are going to be highly valued going forward, as i said, because the expansion of distribution the technological efficiency etching else is going to make the consumer having access to a

brilliant resume, if you will, of content, but the question is, does the consumer benefit, in my penalties. the only way a consumer benefits if you have a universal box and buy it and pick upveth erying you want to do >> folks, when we come back, breaking news on interest rates the headlines on the mark rates.

>> all right welcome back to "squawk box. we have been watching the futures ahead of ecb any moment. s&p futures up just over a point. the nasdaq up two and a quarter. jim murio of cem securities is with us. rate change is not a huge surprise, jim let's talk about what we heard from the fed yesterday. how this all plays in. this is a global story >> i am surprised by yesterday the feds were hawkish. they convinced the markets of one more tightening. the stockmarket traded off ten handles. to me that underlies -- no doubt about it to me that means there is a

little more strength in stock market than we think if you go back a week, there was implication they were willing to let things run a little lot. to make sure there is inflation because they had a tip of the hat stockmarket saying don't worry, we have your back i think they care about asset prices no question in my mind >> let's go to steve leishman. he has been watching what else there is news there. >> they are saying it will taper their quantitative easing beginning in september to a full ends in september. in line with the surveys out there, including the cnbc survey they left rates unchangeled. that's the story, qe coming to an end draghi will comment at 8:30, raising interest rates, the two

benchma benchmarks are the issue for 2019 >> take us back, when did the fed say they would begin their tapering >> the federal reserve >> no, steve, federal reserve, yeah >> i think the fed announced taper him i'm sorry, i can't remember it was a few months before they started it they wound it down over the course i want to say. >> it's been a while >> down the qe they went to zero. they're on the other side of that they did the other way. now they're reducing the balance. >> the whole synchrotive story is a while ago >> a good point. everybody will be looking carefully at the forecasts coming up. you know europe was running above its trends now it's coming down the

expectation is that they'll lower their forecast in part because of what's happening in italy. also the european numbers have been soft and there is a question of how much of that softness a mixed med metaphor. >> there is another stockmarket, our s&p rallied one point, which is not anything to write home about. but two days in a row we got disappointment from central bank i am one of the guys that believes central bank has been distorting the marks for years i think this reaction would have been a little more grey. it's not to me that's a strong sign for the stockmarket the take away is that the domestic picture is strong we start talking gdp second quarter, it's hard to still a stockmarket in that environment. particularly when central bankers in the past tell us they're fearful of asset prices. >> jim when you started that out, it sound ridiculous, but i agree with you you are right. it's not down. >> just a little bit more detail

on this. they're saying they're going to go, they were doing 60 they went down to 30 they're going to go to 15 for okay, november, 15 billion euros worth of qe in those three months some expectation a six month taper instead of keeping to the shorter time line here if you look at the euro, it's been bouncing around i don't know what jim is seeing out there. it's been interesting. it was stronger than it was weaker i'm not sure how much this changes the outlook for the euro relative to the dollar there it is, they have the session ones now it's just a little bit stronger relative to the dollar. >> steve, i this i the immediate reaction to the euro will be noise based on mark position >> i think that's right. >> we will check in 45 many wants to an hour to see where we're headed >> i don't see a reason for a shift. this is in line with market expectations >> coming up, we're going to hear former commerce secretary on the president's meeting,

carlos gutierrez and the president's meeting with kim jong-un an later media frenzy is on tech analyst richard green feel will be here to discuss this sector will there be a bid war for fox assets our other name in the sector on our other name in the sector on the auction block. because, when you really, our other name in the sector on the auction block. really want to be there, but you can't.

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>> president trump's tariffs on

chinese goods could start tomorrow, former commerce secretary carlos gutierrez, your v view of what happened, we'll know in a while if it was all show >> look, i give the credit to the president. i give him a lot of credit it's not easy to do. it's not easy to fight a massive bureaucracy. you don't do it. so he pulled it off. it's pretty much the same as we were it's a bland do you mean there are not a lot of specific promises we pulled out of the so-called war games. but it's interesting what's happening is president trump is making a star out of kim jong-un. you know, he's put him on the world stage. he's not bad he works his way around pretty well he's pretty diplomatic he's got presence. >> you couldn't have gotten all the details filled in that quickly, anyway.

war games aren't for ten months. we will know fully if sanctions aren't coming off and president obama had a cuban flag next when he was meeting with the cuban dictator >> imagine if president obama would have said something like castro loves his people and takes care of them look, i think it was a good thing. i think the president did the right thing. i think he pulled it off as he said, it was a relationship-building meeting. you can't expect a lot of concrete actions to come out of this >> i'm seeing. it's amazing, it is a rorschack test for where you are politically in this country. it's a half empty-half full. most people a year ago - >> you can sigh that 20 times a day. >> most people a year ago, the american president with kim jong-un, given the rhetoric from both sides, fired and fury, unbelievable >> you have to be careful to not be so contradictory. so we have the north korean

meeting. what happened to cuba? cuba is going the other way. we have countries where they have human rights records aren't good >> shouldn't the worst thing be that you be cautiously optimistic how long have we heard trust and verify we don't know where this is going to go. why not wait and see why immediately? you look at the media, why immediately trash everything >> this is one time where you heard me say i agree with president trump. i think he did it in the right way. he looked at it with the right prospect this is a two-year negotiation pompeo will investigate now. we're better than we were six months ago >> we had a bidding war for fox. what about a trade war is that a skirmish

where did it go in >> i think the big day is on friday, the president announces supposedly on $50,000 import, he will slap tariffs. the word is he will bring that down, smooth it out a bit. but on friday, we'll see >> it's the nafta world cup. >> so that could well be another negotiation tactic along with autos and everything else. i think we're in the middle of it how do you get out of it is somebody going to sign a peace treaty so i'm pleased by the cte decision >> you are >> i think we came out, we the country came out in the right place. >> what about the senators >> that's the problem is they can actually go back and try to block it but the way it was before, to prohibit u.s. companies from shipping zte was destroying zte. so if this is going to be about

who can destroy companies? the combinese can destroy companies. >> it's corporate capital punishment >> the question is was there a way to do zte without creating the curfloffel >> i got to run. >> thank you >> thank you, sir. >> we will talk to rich green feel about the big feel about the big comcast-disney-fox fight 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 investmen.objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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let the games begin! cnbc's parent company comcast topping disney's bid for some of 21st century fox's assets. what will the house of mouse do next we will ask analysts. "squawk box" exclusive the head of aig, it's investment portfolio doug dachille will join us love with his call on the marks. >> ecb out with the latest decision why investors are listening closelyto mario draghi's

skaumps, conference "squawk box" is live now >> live from the most powerful city in the world, new york. this is "squawk box. >> yeah, nice. good morning, welcome back to "squawk box" here on cnbc live from the nasdaq market site. me, too. in time's square yeah i'm joe kernen and becky >> they will close and taper those purchases in september it's left interest rates unchanged. check out the futures right now, it's gotten increasingly more positive now up 31 on the dow, nasdaq indicated up 15 s&p up 4 so in europe, let's take a quick look at the announcement

with the green and the euro, see if that is strengthens 117 now, treasury yield, this dropped in the u.s we were about 296, 2 nech, now 2 new yorker got as low as 293 the ecb president mario draghi is set to speak in the next hour we will monitor and bring you the headlines. >> let's get to the stories investors will be talking about. carlos ghosn will step down and remain the chairman as well as the global alliance of nissan, mitsubishi and renault shares of renault on this news up and sony shares drop income angry play, fortnight fans are taking to social media to complain about what's being called a cross-play problem.

it's a for players who signed up for fortnight accounts on a sony ps4. they are complaining bitterly. >> our top corporate story of the morning, you know it, cnbc parent company comcast launching a megabid for assets we want to go over to julia boorstin >> good morning, the all cash offer for fox assets is a 19% premium to disney's $52 billion deal for those same assets comcast looking to buy fox's movie studio, cable channel, putting afx, star and hulu and sky and it will enable them to better compete with the likes of netflix and amazon >> we firmly believe that the truly great media companies of the next century will be large,

integrated entities across a large swath of the global entertainment industry we believe our proposed acquisition of fox would not only enhance our distribution and content, but would take to us global reach and additional growth in these businesses >> in its offer, comcast agreed to the same framework of divestitures as disney to ensure the deal goes through, including potentially selling the sports new yorker as for hulu, they say comcast will consider decreaseing its ownership stake from the 66% it has should the deal go through to 50% on a call yesterday, they stressed the value of hulu to compete with the streaming giant. fox acknowledged receipt in a statement but didn't say much else still, no comment from the disney, andrew, back over to you. >> thank you for that, julia rich green feel is here, tech an

lith btig who has had some of the smartest and provocative views about where this is all headed at least the conversation here is that brian roberts has now put bob eiger in a box what does bob eiger do in. >> it's a great question it's interesting, few listened to comcast and brian roberts and the team talk, this is not about replicating netflix. this is we are a very well run media company in the u.s we have successfully made several large acquisitionings that have built comcast. let's expands globally we're a pretty land locked company, if you look at the assets relative to the other media companies, how do we replicate this through the media model and take advantage of growth outside the u.s. as the u.s. business' clearly mature. >> agents that our idea for going for sky. >> you have star india, more

content, you can pump through that distribution system comcast is on the content side, even a relatively small studio you can think of box market share. yufs am, great movie with "jurassic park 10% when you think of universal. the idea is let's bulk up. if disney got this skwegs, from a competitive standpoint, it makes the disney studio 50% of global box office. if you try to control ip, there is an offense and defensive reason for getting involved here the answer to your question is perfect of what is eiger going to do next he's built this not as global expansion, this is the key in their mind taking on netflix they thai say netflix is the company we have catch. the only way to do it is if we buy fox and sky. it's an interesting statement. netflix didn't buy studio or european drift i distribution. i think disney can accomplish

what it needs to by investing the way netflix did. >> are you suggesting bob eiger will say, okay, go, brian, it's yours. have it. have at snit >> i which it was that simple. i think they've dug their heels in in their minds, this is something they have to have. >> what price point makes sense to you or does it make sense to you for disney what price point makes sense and doesn't on comcast end >> i think both teams are saying we have substantial capacity disney has never been a alreadied company, though, so part of me keeps thinking if you are looking out and going who is willing to go further? >> cable companies can go -- >> charter is a lot more levered that comcast >> i'm going to listen to you with this. i'm staggered at, you know, you told me when netflix had a $40 billion mark cap that it was going to pass disney i think disney was about 115 and

it happened. that was about a year-and-a-half ago, two years ago we used to go back and forth with that. it's crazy someone should have bought netflix. >> they couldn't buy it at 40. it seemed like they could have gotten it at 10. >> do you think, brian is ten aeshs. so is bob, probably. are you willing to say on record you think comcast wins or not? >> on one side we've got brian roberts sort of embarrassed in 2004 in terms of the comcast tried to buy disney. >> that didn't work out one bit. they walked away so that was a very, very difficult time for comcast i think they remember that very strongly they wanted to create a bigger media company back in 2004 they've built their way towards. that i think this is really their opportunity of recreating a company that looks like disney the other thing is in 2015, disney was one of the lead complainers stopping the

acquisition of comcast cable another loss for brievenl i don't think comcast will lose a third time they're looking out 30, 40 years time line. this is looking out over 30 years saying what is the right positioning for comcast as a company. on the flipside, remember, eiger loses, he has to leave in june of 'neevenl his contract only extends if he closes this deal >> if you want to run for 2020 >> i'm going to answer your question >> you just said i think comcast. i got two non-consensus opinions, one comcast prevails number two is that - >> do you think that do you >> i think there is a surprisingly good chance that comcast is going to win, because disney just -- >> what about non-consensus? >> i think a lot of people think disney's balance sheet allows for more >> there is this perception they want to be a romantic notion it's only disney

>> it's not mine, it's andrews consensus. >> 10 ken lowes sold, if you look at scrims and the media industry is getting worse. if you think about it. disney has been a much worst stock over three and five years. >> it has. >> if are you murdock, why would you want disney stock? >> you are saying both companies, should both want these assets right, don't you think >> a lot of people have the fact that rupert is getting out of it >> a lot of people question they shouldn't do this deal you say it makes sense. >> i see why both of them are doing it disney already makes great content. disney doesn't know the satellite business they're bike assets they don't know >> comcast should want it more than disney wants it >> yes >> that applies you to bid more, lever the balance sheet more disney, they've told their

investors. they have it in their head they're going to win i'd be surprised if they walked away quickly i think this will go back and forth and be very exciting >> you don't have the split the baby option? sophie's choice? >> yeah, it's horrible >> no, i know. >> that was horrible >> anti-trust wise it's hard to have two major media companies sit down and hack up an asset they want to buy that's an anti-trust nightmare >> unless somehow rupert were to bless it right? on behalf of the shareholders? if you get the price to a certain place where he thinks he's at. he's actually at the high point then says now we're hiveing. >> disney could buy fox and comcast buy sky and hack up the assets afterwards this pre package -- >> hacking up, legally too hard. >> we talk about splitting the baby >> that never actually happened in the case with solomon, no, i would never split the baby, i

need all of it maybe that won't happen, the mother decides to pay up and pay whatever it taxi >> one final questionat least for me, on the comcast side and the comcast shareholder base and disney shareholder base, i don't want to say pain, how much increase are they willing to take given what we've seen in terms 0of the reaction so far >> not to make you all feel good, i think if you look at the value ve e c value creation of nbc,getting into the content business, will you make a mistake they've created more values on the nbc than the comcast assets the huge assets is on the inside >> get out your salt shaker when i say this but i can't -- i don't understand why comcast shares are where they are today. meaning i would think they should be higher get out your salt shakyer, they're our parent company but for some reasons

shareholders haven't been as confident in where this is all headed, for whatever reason. >> i think there is this cloud over the media university part of the reason comcast is doing this is the u.s. media industry is slowing linear ratings are down, ratings for all of tv collectively were down 12% cord shaveing is growing what came cost sees the u.s. industry is slowing. how do we take advantage of what we do really well and replicate it all over the world where there is more road potential >> final question. regulatory overhang, do either of these companies face a bigger challenge than the other >> look, inkind of go with the semple view of fox news, good, cnn bad. you put that lens around, you put around rupert is going to get what rupert wants in terms of this any deal that fox wants i think will ultimately get approved, regulatory wise. if you look at vertical

integration, almost none of this transaction is a vertical transaction. most of the rsns if they are acquired are not in comcast markets. we're talking net effects and global geo i don't think either party buying has a retail trust rick that's been a red hering >> julia boorstin has a question >> hi, rich. you said earlier you thought there was a company that made more sense for disney to buy than these fox assets. what is it and do you think there will be a land grab for a certain type of company or set of companies for whoever it does not get this deal >> right it's a great question of who does the loser buy someone has to lose unless there is the split the baby. i think in terms of what disney should look at obviously, if disney lost, brendan ross, my colleague, how can you not want to buy a video station? gameing is where the future s.

it's hard to believe disney isn't buying activision. >> that would seem like a natural shift. have you twitter, spotify, they want destinations on the home screen and build a subscription business globally. spotify has that huge prescription base versus what they are buying in fox comcast there isn't an obviously fall back. if they want to create a global company, i don't think there are a lot of other choices, if you are like brian, you go all in to win. you do not lose. >> separate and apart from this why do you think amazon, apple, google, have not jumped into this race and do you think there is still a possibly for that >> no, i think in many ways, it's what joe mentioned before look at this phenomenal growth of net flex. they have done it without buying studio all you need is money, sean derhymes money ryan murphy, money

>> thank you the shark with barack, what is that what is that >> you are still watching. >> no, i'm not >> no, i will. >> you know you will >> susan rice on the board >> at the end of the day, this about theic companies have fixed out they can invade hollywood without buyinghold i think that's why - >> let me ask you a different question, if that is the great lesson of net flex which is you show up with money in your wallet by the way, com kals has money in its wallet. then everyone can play this game few want to i don't want so say overstep, if you want to spend a lot of money >> if you want to build a service x spot today, it takes lots of money on content, tech and time that's what netflix has proven nobody has to buy anything to catch netflix. that's for sure. >> but the time is the key >> industry has grown through consol days. i think that's what's most comfortable for most executives,

versus investing, bringing down earnings those are hard thing to do when you are compensated on growing earnings you understand how to run these types of assets. comcast has shown how well they can take those assets and improve upon them. bike internet assets, digital assets is not what these companies have done well >> what school market share is netflix? >> oh my god >> where is the barrier to entry there? why can't hulu turn to netflix >> hulu is being forced to buy programing from his parents. not develop the best they should be doing 30 hand made's tales, not buyinglast season of "empire. they're not making free decisions. >> it just seems like there should not be a dissparity >> i know. >> 20 million subscribers. 160 now. >> i know. it sounds to me if you get

enough money in your wallet. can you go off and do your next hulu or netflix yourself the joe s spot >> i'm not sure people want necessarily. i'd talk to you. i would, rich. i'm a believer now >> rich greenfield, thank you tore coming in this morning. always great to talk to you. up next, chief investment officer doug dachille is going to join us with his view on marks right after this break hi, doug or is it? this farmer's morning starts in outer space. where satellites feed infrared images of his land into a system built with ai. he uses watson to analyze his data with millions of weather forecasts from the cloud, and iot sensors down here, for precise monitoring of irrigation. it's a smart way to help increase yields, all before the rest of us get out of bed.

. welcome back, everybody, joining us is doug dachille. he is aig executivosis overseeing a $200 billion portfolio. >> it's great to be here >> it's good to see you. it's been far too long since we talked to you. i have been trying to think about how you must see the world at aig, heading thing up with an insurance company that has to make payouts has a lot of cash to float up front. it occurs to me these low rates have been horrible for all insurance companies. we saw the fed layout a time line for raising it a little more rapidly

is this things are on the way for insurance companies? >> i will give you some perspective. i remember when i was a fixed income trader in the the 90s like the most exciting days as a fixed income trader, you'd wait for payroll reports. that was exciting. and you'd wait for fed rate change days and you know why do you do that? because in those days, you didn't have dot cloths you didn't have ford guidance. you had to spend all your time leading up to those meetings to interpret economic data and actually figure out, if you were in the seat of the fed, what would you do and then you would put your bets on the day would come, like marks would actually move, something actually happened. basis point moves. >> can we have 50? >> 50 basis oints. >> a case indicator. >> if you were right, you made a lot of money if you were wrong, you lost your job. now you go to these -- you go to

a meeting, like yesterday, what happens? you have a meeting there is an announcement, an hour-and-a-half press conference, dot plots, forward guidance the market moves basis points you can't, if you are a trader and portfolio manager, you can't make money, the markets never moved. >> is that great for the rest of us >> this was program and planning >> that made sense when they adopted this forward guidance they did it because they ran out of tools to stimulate the economy. they wanted to give it transparency they wanted to mod late rates and limited volatility now they're going the other way. when you want to go the other way, telling me there is no tightening associated with you saying you will raise rates every meeting, 25 basis points, the market has already priced that in. so you get nothing when they actually make a move consistent with the market. >> how about this? what if the fed at this point is underestimating global growth or

usgdp. what if they under evaluate the risk >> i agree with you. therefore, if the fed was less transparent and stopped their dot plot, you'd have markets telling you whether they're right or wrong now the market is telling what the fed is telling them. you don't get the mark pricing doesn't give you any information about what people's views are, on exactly that question you ask. you can't actually look at the market to figure -- there so that means the prices are legitimate >> let me ask you a question if i was to tell you, unemployment rate was under 4% don't look at dot plots. where would you think the 30 year rate would be right. exactly. and the gdp growth we have right now should be consistent with an inflation adjusted real rate of 2, 2.5%, but that rate right now is 1 when you look at the long-term expectation they are say -

>> what do you do with your portfolio? >> remember, i don't have assets without liability. so the first thing you have to understand is all of the assets i hold were based upon liabilities that i priced consistent with where the market pricing risk is. i'm in the business of trying to earn spread between where i price liables and where i invest from what we're doing with the portfolio i would say is the nice thing ability an insurance portfolio as opposed to the prior ones in chgs ba. we do have long-term liability, either you convince yourself deposits were 30 years or that was your source of long-term liquidity and we made loans. here we actually do have long-term liabilities and we do try to make investments that are less liquid so we can earn the liquidity premium that insurance companies shoum be able to enjoy for their long-term liabilities. >> what kind of things >> we have a long loan

portfolio, middle market lending, so we're in the lending business, but we can make loans alonger terms than the chgs ba the banks might have deposits, three, four, five years the problem we face is, you know, there was very spreads for taking that liquidity risk over the past five years, there is so much capital in return, those spreads between liquid investments and il-liquid investments it doesn't make sense for us to own them it becomes very challenging now, because a lot of other people have convinced themselves they have long-term liabilities, whether they do or not, we'll see. therefore, they're making the same type of investments we have been making. it makes no sense for us >> it doesn't seem like you missed a couple hundred million. >> let's put it this way i look at it this way, basically i have 322 become. 250 is in boring stuff

all the excitement >> i don't know. >> i missed having doug on >> this is awesome >> we miss it. come on back >> bring some money. coming up, i should be buying does it my coming up, we'll have breaking economic news.

welcome back to "squawk box. rich santelli here live on the floor. the mario draghi show is going on he promises he will end the qe program and cut back purchases which was cut back in half and again before that occurs yields moving down, they stabilize. we have our read on retile sales. double that, you've arrived. up .8, solid number. .1 revision up to .4 for last month. strip out autos and it improves. unusual adds of late it moves up to .9. future bought autos and gas still holding up .8. the control group puts it solid up half of 1% in the slot to cal -- calculate bigger numbers down

the road it follows a revision from .3 to .6. if you look at the export price index, that is also up let's see what the compact number is. that is up .6 as well. if you look at year over year, it is up 4.9 in year over year import prices up 4.3 finally, it's not over yet, initial jobless claims move from an unrevised 222,000 down 4 to 218. continuing claims dropped under 1.7 to 1.697 up pretty interesting there as well yields hovering at a lower level, but it could be the tenth day we hover in the 290s you want to watch the dollar index today the euro versus the dollar an eventually the dollar yen gets ready joe, everywhere you look, there is something important going on in the markets i have to tell you, though, i am

impressed with the whack of treasury yields. listen, we all know eventually they have to go higher but it has been quite orderly. back to you. >> once again today, yesterday we hear supposedly a hawkish fed. today we see an end to qe in europe and - >> don't you just love j. powell he is a breath of fresh air in that group truly, truly >> and now the market suddenly is up 75 i guess that was the pull back on the tighter conditions yesterday joining us now, chief economist and national director michelle girard, for a stock price. that's not your thing, yesterday the more hawkish tone and the possibility of higher rates, a hot inflation number

why are stocks going up? finally it's for the right reason there is a reason rates are going up >> joe, yesterday, what i heard from the fed was a lot of optimism about the economic outlook. in terms ofinterest rate, i didn't hear anything in terms of a deviation in this gradual pace that the mark versus come to understand is not necessarily something to be feared most importantly, when asked the really critical question, will the feds eventually have to take the rates up into restricted territory the fed chairman was very much, we have to see what the data looks like when it happens. on that it's not surprising to me the take away from yesterday is the economy is on very solid footing. the fed is very comfortable with this gradual approach. it's not clear they will put it to risk by having to ultimately take interest rates up to a level that might undermine

growth >> is it a big deal qens i can see two scenarios, one is they're they're tone deaf and things are slowing in europe now they decide to stop qe two, we're wrong about things slowing, that i can see things are solid over there, they feel comfortable ending qe. which is it? >> this gets back to the same conversation we have had here in the states ending qe normalizing interest rates leak we have been dock here, is very different than working to slow the economy down this is about remove ache come days ago and i would argue that even with some coming off of the boil if you will in terms of growth in europe, it is still really not appropriate for the ecb in my penalties to be putting as much accommodation into the euro zone economy as you had when you were at in the midst of a financial crisis. the argument for having

emergency style accommodation at this point in the cycle was even with modest pull back the euro economy, i think it's questionable so to me this is not inappropriate tone deaf action from the ecb it is appropriate for the fundamental also this idea it's time to start for the ecb to get on a path >> goldilocks is alive and well, up 4% unemployment, 3% gdp low interest rates, inflation, under control. maybe no nuclear oblivion this week, probably there is so many positive things what am i supposed to worry about? >> you make it a point we've talked about this, when we talk about the impact of central bank actions ultimately and the risk, i always say, i am not worried about the fact that central banks will end up killing off the expansion because they say it's up too much to me the greater threat

this is when we talk about what the ultimate consequences might be, what happens after this extended period of global accommodation at central banks across the globe, not just the fed, whether we talk about the ecb, ultimately the doj begin to normalize, will there ultimately be some consequence for the fact we've sat through i would say an overly extended period of accommodation. what will be the fact you ends qe around the globe. will there be a tightening and financial conditions as a result to me those are the risks i am palm beach u watchful for the fed and other banks are watchful as well. i'm not sure we've gone through the one easy part of the cycle on a global basis. now we have to make sure we can execute and get out of that emergency accommodation from the crisis without triggering something else >> you know, michelle, there is another jobs over, i know it's coming soorng i'm not sure when.

>> exactly >> i have breck cast every hour. we'll see you next time the friday is coming >> see you then. >> when we return, ecb president mario draghi monitoring that conference we'll bring you the headlines when we return stay tuned you are watching cnb right here. whoooo.

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when we come back, ecb president mario draghi speaking right now. they will end the bond buying program by the end of the year our very own steve leishman is tracking all this. we will check in next. we will check in next. stick aroundmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see. what adding futures can do for you.

a judge approving at&t major acquisition of time warner,.com cast expecting to be bidding >> this is the likes we haven't seen in a long period of time. >> the federal reserve raising interest rates to a range of 1.75 to 2% >> the economy is in good shape.

we are trying to sustain that expansion, keep the labor marks strong and right at 2%. >> welcome back, everybody, let's get to steve leishman at cnbc headquarters. he is monitoring mario draghi's conference >> one, they will taper quantitative easing beginning in october, now doing 30 billion euros taper it down to 15, october, november, december, ending it in december. two, going to reinvest the proceeds from that paper it holds until well past qe that's something that eases the effectiveness, it will maintain a very big balance sheet over some time. a similar language to what the federal reserve used three it will keep interest rates on its two major benchmarks unchanged at least until the summer the governing counsel remains willing to adjust that, as the

certainty about hitting its inflation target goes up and down another new information here is the outlook for gdp. they brought it down a bit for 2018, down to 2.1, 1. 1.7 in 2020. around trend is what they think they will get to >> that excess gdp, the ecbc is going. joe. >> yes, steve, something up 92 now. i don't know whether you heard we blame you with doug dachille. >> i didn't hear that. >> those stupid dot things where everybody knows the fed is going. you are the one that came up with those >> steve was listening tothe call doug said it's a lot harder than it used to be. there is no volatility anymore he is comparing to when he was a bond trade tore running aig. >> things are better in the past nostalgia, we'd shake our fist

at the fed not telling us. there was no press conference, no nothing >> his point was when they started putting in all these things, they had ran out of tools with the process the problem, he says, when you started rolling that off, it could get a little messy >> you said the briefcase indicator. you came up with that. the dot plots. >> you made my point for me, joe. we had the briefcase indicator, for god's sake >> that's all we had >> that's what we had. look, i look at this thing, there is a little more work to be done. we go into these meetings with high percentage probabilities of what the fed will do the fed ends up delivering on. that you got to listen to these guys but they all talk. we all know how they feel. >> we're trying to get ratings steve, going in, knowing what they do doesn't help >> i will try to make people money, joe >> at least not lose the money >> if they know they don't, we

want to make them money from watching us to decide what's going to happen, that way they know beforehand. we talk about it i blame you. >> you can blame me all you want, joe, i appreciate that as long as you compliment my suit choice, i'm good to go. >> when we come back, jim cramer, live from the new york stick as we count down the opening well on wall street. futures have been getting better and better they'r90e , now they're 78 we'll be right back on the dow starting a business is expensive. that's why many entrepreneurs rely on their own personal property, like their car or home computer, to help them do their work. but they might not know that those items may need special insurance

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stocks to watch, shares of kraft retailers, hitting hard after the company gave a weaker than expected outlook. earnings and comparable store sales did beat estimates at michael's the top and bottom line for the fiscal first quarter. shares of tailor brand, the parent of men's wearhouse and tailor brand reported weaker than expected xabl store sales shares of mylan's, the fda

rejected the generic version of glaxo smith-kline. the fda cited minor deficiencies cramer is here, get down to the new york stock exchange. jim, i can always count on you to give me something market oriented instead of federal oriented the market is suddenly up 80 or so and today you have draghi and you have market internals that might be responsible for the improved tone, do you? >> well, i do think that the claims numbers are so incredibly strong that what jay said yesterday about how he's going to be measured with the claims and you look at the whole pastisse and you have great job growth the retails are good and they're not off the charts hot and you start isolating the ppi number

i'm not as bullish as i was yesterday and i don't want rates to go up very quickly and we know we added an additional rate hike and maybe europe is up on its news, and i didn't see it negatively overseas and it was very important and there was no followthrough. >> do you spend much time talking about comcast versus disney and the personalities involved >> yes, i do i spent a lot of time on it last night and this morning i feel like the great thing about the conference call that comcast had was that you felt as good as if it didn't get boxes as it did because it just turns out that things are much better they're willing to pay the 35, and so -- it was much more of a win-win, which is why comcast stock isn't down and that's what i wanted and the analysts kept going away from it because look,

it's a lose/lose and the whole narrative changed and that was very positive. >> the only reason, and i don't care either way, but i want to be able to use my quote and mice and men don't always work out, and i want to use that because of mickey mouse, and it just fits maybe mickey mouse is west of eden >> at the jurassic park ride in universal they have the mouse hat. >> oh, is that -- see? >> andrew always brings it right to the point >> right, but you know what? it has the way it's worked out there are personalities at both companies that makes it pretty spicy and pretty interesting >> i mean, look, in the summer i was prepared for nothing other than michaels stores and tailored brands and wow! i don't need to put the game on. >> yeah. tim stewart will write something

about this, and the mouse got bored and there's a lot of stuff we can do here it will be good, jim >> it's fabulous >> it's why we do this, okay it's just great to have a world series out of nowhere. >> yes and we've got the u.s. open. >> do you have a pick there, jim? >> what? the u.s. open? tough, tough, tough. very tough i am so busy with the world cup and with the belgians beating britain. >> i thought that they were aligned ahead of the opec meeting. >> that's right. >> all right, cramer we will see you in a couple of minutes and don't miss tonight on "mad money" jim will speak to the ceos of adobe and thor and that is at 6:00 p.m. eastern time, and we are coming right back stay with us

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no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. kensho's index has risen be integer holdings. welcome back to "squawk box. ." he has news for us now >> the main story, i think, is from the chart, andrew if you take a look at the euro and what happened, it kind of fell out of bed with the statement around 7:45 and

increasingly, it's fallen out of bed if its impossible to do. i suppose a dovish decision and even when the decision came earlier than expected, some folks thought the decision would happen next month. i think the combination of him saying they'll taper it down and they'll later keep rates unchanged through the summer of 2019 is something that a new model that you had very strong u.s. retail sales data i expect, by the way, an upward revision to our cnbc wrap it update later this morning when we get other estimates and we could go to four, and i don't know if we had a 4% gdp forecast at least for as long as we were doing the cnbc wrap it update which was a couple of years now. so that means the gulf between t europe and the united states is widening draghi has a cautious exit from this program while the u.s. will

forge faster ahead in terms of its tightening and moving away from financial crisis-era approximately see, andrew. >> steve, thank you for that and we'll be seeing more from you today. making headline, microsoft working on technology to eliminate checkouts from stores. microsoft has also had talks with walmart about a possible retail partnership so you know, amazon, if you remember, has been working on stores where there wouldn't be literally anybody at the checkout counter this would literally be watching you as you're taking the product off the shelf, tracking that and adding it to your virtual cart, if you will. >> in the meantime, check out shares of oracle and they're in the red after downgrade to neutral from overweight at j.p. morgan j.p. morgan saying the cell phone maker's fundamental performance is consistent. take a look at shares of oracle down about 2.5%. becky? >> let's take a final check on

the markets this morning first up, take a look at what's been happening with the futures and we started out in slightly negative territory, but after all of the news we've gotten including the news from the ecb that steve was just talking about, you can see how things have turned around this might be a bit of a surprise for anybody who thought the fed may be raising rates quicker than anticipated yesterday you saw the dow down 119 points after that news and now the dow is up about 80 points this morning. s&p futures up by 7 points and the nasdaq up by 25. let's also take a look at what's been happening in europe because obviously the action there responding to what you've seen on the ecb up across the board, and the dax is up by three-quarters of a percentage point and the cac up by 0.4% and stocks are higher in italy and spain, as well take a look at what's happening with oil prices. this morning oil prices up by about 37 cents despite the

president yesterday saying the prices looked higher to what he thought. you can see wti up by 38 cents to 67.01 and 76.78 and look at what's been happening with the ten-year note and yesterday we got close to 3% on the yield coming under pressure today at 2.933% thanks, everybody. make sure you join us tomorrow "squawk on the street" begins right now. ♪ ♪ good thursday morning. welcome to "squawk on the street." i'm carl kint ni quintanilla, and the ecb will end qe in december, ten-year 2.93 and the real map will begin with comcast making it official and a $69 million bid, wit