good morning, everybody. welcome to "squawk cnb i'm becky quick along with joe kernen and andrew ross sorkin. the u.s. equity futures as joe mentioned we are looking at red arrows dow futures down by 130 points if we were to open the dow would open below 25,000. that was a decline of 0.9% on the week the s&p up and the nasdaq up pretty sharply at least relative to the other indexes it was up by 1.3%. you can see this morning the nasdaq looks like it would open down by 40 points and s&p by 12. the dow is on track for the biggest monthly loss

with treasuries what's happening? the ten year note yielding 2.9%. you'll see the 30 year sitting above 3% at 3.043% and then let's take a look at oil prices. oil prices last week were down by aboces. you do have that big meeting, opec in vienna that's why brian sullivan is there getting ready gleerg up -- gearing up for this. a couple of big stories we're watching perhaps the biggest this morning, google investing $550 million in chinese ecommerce giant jd.com google will be promoting jd products on the shopping service. also, audi ceo has been

taken into custody volkswagen has already pled guilty to criminal charges related to that diesel scandal. tesla ma progress towards producing 5,000 model 3 cars by the end of the week. elon musk showed off the newest production line this weekend musk congratulated them on their efforts but says, quote, radical improvements are still needed to meet the production goal. meantime, some more bad pr for tesla. mary mccormick posting video of her husband's tesla on fire. it wasn't in auto pilot mode or involved in an accident. tesla is looking into the cause. >> it was parked >> i don't know the full history of it. it looks like it -- looks like it was just straight parked. >> stocks to watch this morning, disney was downgraded to sell now from hold. pivotal. the analysts argue the stock's

recent runup doesn't express the highest price paid for fox the assets would reduce the value from disney to the shareholders they say the alternative, no fox deal wouldo beegative for disney called a lose-lose because it would mean it couldn't benefit from deal synergies. all right. we're going to talk to that analyst. brian may have to -- is his name pronounced -- let's call it wieser and cue the wies music at 10:00 eastern. >> he says other stuff in his note. >> okay. going to pay too much, but if they don't get it they don't get the synergies. >> but his point is the stock is too much as a result of these things. >> you know. i'm not saying that. in the all services area,

halliburton and baker hughes have been awarded a $7 billion services contract from norwegian oil and gas producer equinor the contract is for four years but could be extended for up to a decade so rupert stadleer individual, what did it say about him, andrew >> taken into custody. >> oh, okay. >> germany. >> what happened to rupert stadler. >> let's get to watch ton. >> that's a tuffy. >> trade and immigration coming out of the headlines out of washington kayla tausche joins us. >> reporter: good morning, becky. the immigration debate is intensifying the trump administration holding on to its zero tolerance policy as lawmakers compromise on a bill to satisfy mr. trump. mr. trump wants tighter security tweeting the democrats and

republicans should, quote, get together and work something out. meanwhi meanwhile, today at the white house two gop senators who hold the pursestrings will meet with the president. that could determine whether a shutdown could again loom in september, this time over those issues meanwhile, the first lady issuing a rare public statement on policy saying that, quote, she believes we need to be a country that follows all laws but also a country that governs with heart according to her spokeswoman. the issue has shed trade to the background for now as the white house has three weeks before chinese tariffs take effect white house counselor kellyanne conway on "meet the press" denied a trade war was brewing, at least for now. >> the president's position is that we lost the war a long time ago. when it comes to tariffs this president has exempted certain countries, certain industries, he's given a pause for a month and another month, but he thinks that we have been on the losing end of the so called -- >> i know his --

>> reporter: of course congress works on deadlines they typically handle one issue at a time. expect congress to handle immigration right now especially with all of the images of the families being separated at the border no doubt they will be back to trade in a couple weeks' time. >> what are the odds what's the most likely plan for any action that might come on immigration? >> reporter: well, it depends on what the president signals he's expected to meet with the house republican conference on tuesday night. there are reportedly two deals being considered one is more conservative that is not expected to have the votes to pass. the other is more moderate which is not expecteto have the votes to pass unless the president uses his clout to get some more republican v to the table. so that is one that feels a little bit more realistic although anything can happen with -- as hot button an issue as this is. >> kayla, thank you very much.

kayla tausche. let's get back to the markets. the dow futures down by 130. s&p off by close to 12 and nasdaq down by 40. joining us is peter bookbar. he's chief investment officer at bleakly and seth carver. thank you for being here peter, let's start off talking about the stock reaction this morning. dow is down for four days. you're now looking at red arrows goen what's going on? >> certainly the tariffs right now coming off after the fed just raised rates again, continue with their policy ecb said they're end being qe in september. the economy will have a good performance in q2, will follow through in q3. the economy is saying what can disrupt that tighter economy and the tariff escalation could. >> is that the way to look at it we're going to focus on earnings and the strong economy, oh, no,

wait, we're going to focus on what could throw us off. >> this is a constant tug of war. the market is little changed over the last five months. >> the thing that rises the most to you would be the economy or the issues about the trade >> i remain most worried about how does economy handle a tightening of monetary policy as we get deeper into it? how's the european market going to handle a tightening of the qe those are the things i'm focused on in the earnings quarter which will continue for the next few quarters it is that tug of war and it's at a standstill right now. >> what do you anticipate from the fed? they have come out and given us the guidelines then the economy looks like it's improving at a more rapid pace so what happens? >> we've been consistently upbeat we think the fiscal stimulus is going to do a lot to boost the economy. oil production is doing a lot to boost the economy.

we see the fed continuing to boost interest rates what's different in our view is for the first time in i don't know how long, our baseline view for the fed is up but we have meaningful risk on both sides. we can easily imagine the fed hiking more than we anticipate. >> that would be what i would assume would be the best case scenario. >> so relative to what they've laid out this is where jay powell has been trying very hard to damp down how closely people follow this we think they'll hike, you know, two more times this year, three times next year. ife keep getting surprised to the up side, we've been pretty optimistic, they can do more. >> does that matter? if the economy is stronger, can we handle it >> absolutely. that's our view. the stronger underlying economy is going to keep the fed hiking. >> what about the euro though? >> the euro matters but it only

matters in context the dollar is only one aspect that affects the economy. >> if they truly have some issues, who knows, look what's happening this week with merkel. italy, everything else and i still think the fed is cognizant of where res are over there and what's draghi's doing and they're slow walking this so aren't we tethered a little bit if we had 110 on the euro, which would be good for me because i'm going this week, but that hurts, you know, worried about the trade deficits. >> i think it matters some but remember the reason the fed is hiking is because they want to slow the u.s. economy. the u.s. economy is growing at an unsustainable rate. if there's a drag, that's what they're trying -- >> i don't know if i'd buy that. what's on -- you'd rather have 2% than 3% growth? >> so we've got an unemployment rate that's at 3.8% falling. >> right >> but inflation and wage growth

doesn't seem out of control. >> inflation is just at their target you have growth that continues to be above what's long and sustainable, that's not a situation you want to keep for too long i will say for the eurozone, one of my colleagues in ubs research had a piece that came up in draghi's press conference and it's saying -- and this is very much to your point eurozone, ecb qe is probably boosting theconomy and inflation more than you would thinas a rest they're going to have to be even slower than you think. >> you think the fed is raising rates to slow the economy? >> no question absolutely. >> i don't want them to do that. >> that's what they do. >> not now not at -- you know -- >> but the congress gives the fed their marching orders. >> i have a question about the global economy though. >> no, they don't. >> particularly the trade wars and whether you think the trade -- i don't know if you saw the story over the weekend in "the times," the headline was just the fear of a trade war is

straining the global economy, meaning we're not separating these things out that effectively just the idea of a trade war is what's going on in europe and elsewhere do you believe that? >> the chinese stock market closed near a two-year low the economic data was weaker than expected. there is a credit situation going on over there. we've obviously seen the data slow in europe so the tariff stuff, just the uncertainty of it, could do that. >> how much of the slowdown outside of the united states is a function of just a straight slowdown and the problems in those countries relative to the cloud or overhang not of the tariffs because we don't have them yet but of the possibility of them? >> i agree, it's tough to quantify i'm personally skeptical usually businesses react when they have customers. >> although maybe it has slowed businesses from some investment. maybe it's not stopping what

they're doing already but maybe the additional cap exthat wee been anticipating, maybe that is a little slower. >> we'een anticipating because oil in vicement is strong last year, it will be strong this year businesses will investment when the economy accelerates. just because we've cut the marginal tax rates we're skeptical. >> yeah. >> your thoughts on that >> no, i agree there's hope that cap expicks up there are some signs in software expanding, but in the durable goods numbers it's still very mediocre i'm hoping a lot of the 2018 capital spending decisions won't bee until maybe the back half of the year because 2017 is when they said it and they don't respond immediately to the tax cut. but i -- back to the tariff thing also you do have people, companies scrambling to get steel and

aluminum into it i still think higher costs are in it. i'm hearing things that stuff is sitting on pallets >> they can't get workers. >> that's the issue with the y.we're hitting supply constraints. it's hard to find a worker it's hard to find a truck. inflationary pressures are rising that is a point where the fed is, yes, they're trying to raise. that's what happens is inflationary pressures build and the fed has to respond to it. >> peter, seth, thank you both for coming in. good to see you. >> coming up when we return, you know -- >> brooks koepka. >> i was going to tell you a little story that's where zblifs you were out there? >> i was out there but i didn't go to actually watch it. i'll tell you after the break. we are going to talk about the u.s. open when we come back. something that hasn't happened in 29 years. the highlights we'll do them next later this morning, don't miss a

live interview with the ceo of ubs. stay tuned, you're watching "squawk box" right here on cnbc. let's get started. show of hands. who wants customle options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees?

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zbroo we welcome back to "squawk box. brooks koepka battling back. one of the commentators was the last guy to do it, curtis strange there. 30 years ago only six people have done it the last guy before curtis strange was ben hogan. all the usual stuff that goes on with the u.s. open, all the carping about the conditions this place is tough enough without the wind and without the greens getting all baked and on saturday there was a lot of carping by guys that weren't doing as well. >> what was with phil mickelson? >> phil, i under -- you know, once again, it wasn't just fox fox is very tabloidy it wasn't just fox.

>> twitter went crazy. >> you saw the gaggle of people. i love phil. >> i do, too. >> i know what he was doing. >> he was stopping from keeping going. >> he was putting fogey fo a five. >> okay. >> he knew when he it it was going all the way off the green and down to another -- where he was before. >> it was actually -- >> i think he tried to hit it in the hole which would have been a seven. a two stroke penalty putting five, two stroke penalty. >> i think he thought about it and did it intentionally. >> it wasn't that he snapped or was disrespecting the game. >> i think it was an actual -- >> they made it very tabloidy. last year the winning score was 16 under so they said it was too easy it was a new course. it wasn't set up right so the usga loves -- ask your husband you love one over. i love one over winning. >> it's fun to watch >> patrick reed, has that guy got game or what

yeah, i know, i know and toney fenau, do you remember who he was >> no. >> he was the guy in the masters in the par 3 competition that dislocated his ankle. >> yes yes. >> then he went like that and put it back in. >> yes, yes, yes, stop >> then he did unbelievably great at the masters he almost pulled it out, too i loved it i didn't miss a swing. huh? yeah yeah tommy fleetwood. >> i'm sure he did. >> tommy fleetwood was third at aaron hills, too so he's not -- he didn't come out of absolutely nowhere. no, it was great to watch. love it. i don't criticize usga i love it when it's tough. >> you had a nice father's day. >> i love brooks koepka. people never heard of him. if you saw my swing, you'd understand i had a shot of him that i put in my photo collection in 2015 because his club head -- his body is like this and be his

club head is back here i get mine way out in front because i'm too fast and i rush it i look at that to try and slow down. >> you try to emulate. >> fore! >> i kept the thing on my phone. literally if i was out on that course, i couldn't finish the 18 holes. i couldn't i wouldn't. >> embarrassment >> the ball would not ever get into the hole -- >> fore! >> on certain places until it became dark and you'd no longer play i'd have to continue it the next day. it would be in the hundreds at that place >> i think most amateurs could not have finished that. >> i would agree. in entertainment news pixar's "incredibles 2" takes home the title and is the biggest pg rated launch ever ""incredibles" 2" brought in $180 million in the first

weekend in north american theaters that topped analyst estimates. >> we went there on friday we think it was better than "incredibles 1." >> that's saying something. >> the wait waworth it. >>4 years. >> 14 years to put it together well done. >> that's saying something. >> we spent the whole weekend to google why it took 14 years. >> why >> first, brad, e fellow who wrote it he wasn't happy with the story there was a whole period they weren't happy with the story. >> went into hibernation. >> then you have to literally get in line with the other films. >> because of the animation stuff. >> certain animators there was a "cars 2". >> took them too long. >> what was the other "nemo" film >> "finding dori." once they figured out the story then had you to wait six years. >> the first one was my favorite. >> this was really good. >> does -- >> and the video is really great. dash is in it? >> all the of them

everybody. >> painy jack. >> baby jack is in it and. >> jack: >> and nemode. >> she was in it she's so -- that's awesome that's great i want to see it. >> what's unbelievable to me is that you're mentioning the character's names and did you watch it 15 years ago? that when y first saw it. >> you've seen it since. >> i haven't watched it in a while, no. >> okay. so memory, the memory. separately, we haven't really talked about theraneau's ceo elizabeth holmes has been indicted on fraud charges. ramesh salemi was indicted if convicted they face a maximum sentence of 20 years in prison they announced holmes has stepped down as ceo. >> she's still chairman? is that correct?

that's what the article says. >> they were together, too >> they were together for a while. you should go read "bad blood. the book is great. it's the book that will turn into this film jeifer lawrence is going to play elizabeth who willmenholmes >> this is criminal. >> before that it was a $500,000 fine gosh, we really thought we had something. they were still sort of selling that line of -- >> look, if you read this book you can't walk away from not thinking that she was -- that the whole scheme was to defraud certain groups of people to keep earning more money. >> she was defrauding people, no question about it. >> that's the way it seems >> frozen? >> jason lee, syndrome from the first one, the villain, he died. >> how does he remember these things >> he went up into the -- >> right at the end, right. >> remember how great he was, jason lee's voice?

>> yeah. wait until you see it. it's really good wait until you see this. >> what happened to jason lee? >> i have no idea. >> is that his name? >> i have no idea. >> you know the guy. >> i remember the name. >> i remember the voice. >> great voice had a great voice. craig t. nelson. >> played the kid. >> holly hunter. >> he's in it, too >> blaster girl. >> takes a big role. >> she does? >> yeah. >> don't give away. >> does dash do anything cool like he did -- >> yeah. >> yup, yup, yup >> got to see it. the big washington stories investors need to be watching if we have time we may talk more about the incredibles. the later on, the analysts who downgraded disney. >> wieser. >> if we play wieser, he'll allow us to do that. >> he'll be here. >> wieser will be here

hit. hit. first as we head to break, here's a look at friday's winners and losers ♪ ♪ here.

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welcome back to "squawk box. let's take a look at the u.s. equity futures thimorning. we've seen some red arrows across the b thdow indicated down by 162 points this comes after four down days for the dow already. logged a decline last week of almost 1%. the s&p is indicated down by 14 points s&p ended the week relatively flat up just slightly the nasdaq was up by 1.3% is down by 46 points this morning. let's take a look at oil prices we know we have the big meeting coming up in vienna. that's where opec will be talking. it looked earlier wti was down ice brent is up 64 cents to 74.09. corporate news, audi's ceo rupert stadler has been taken into police custody in germany this is in connection with the

diesel scandal audi parent volkswagen has already pled guilty. that stock down by 1.8%. >> hey, earl jason lee. jason lee's tv show, my name is earl isn't that your name call him mack but my name is earl i don't remember what happened my name is earl just out from apple and the company says when it rolls out, the newest version of its i0s operating system this year, one of the new improvements willinv. apple says i0s 12 will give users the ability to automatically and securely share their location data with first responders that would help. the information will be faster and more accurate. the apple xii, x 11 or apple 12?

>> back to numbers. >> 11. >> but i just said 12. >> so the difference -- >> xii. >> no, i0s 12 is different than the -- >> yes. >> in the phone. >> but the next -- >> that is the question. is the next one 11 >> the phone will be 11 skbl no, maybe it's the she. >> xi. president xi that's right i get in trouble when i call him president. >> yeah. let's go to washington right now. big stories in washington you need to be watching this week. joining us right now is axios editor in chief nick johnson good morning to you, sir. >> good morning. >> i spent a little bit of time just over the last half hour with michal len's e-mail this morning. top item, one big thing, pressure grows on trump to change border policy for kids. how much pressure do you think needs to build and what's going to happen? >> that's our big thing this week we're keeping an eye on

the president's wife who rarely speaks out on policy weighed in on it. when president trump meets with house republicans tomorrow, they're going to go after him on it they think the politics have gotten so bad the republicans need to act. >> but just handicap it for us do you think there's movement here or no >> i think there will be some movement one thing we have to remember is president trump is an avid advocate of media. the coverage is bad. the political pressure i think there certainly could be some kind of movement. remember, when president trump took action in syria it was after seeing pictures of the children who were involved in the chemical attack. it could be that these pictures compel him to act on this issue. >> we have what i hear is a new head of the cfpb coming up this week >> right. >> this is mulvaney's choice

not that well known. kathy craninger. what do you know about her >> very little we know the context in which this is being done wre he changed the name of the bureau very interesting in rachetting back some of the actions and spreading it to new areas, consumer lending and auto lending. republicans hate this bureau they hate the way it's funded and they'll look for a trimming of the sails. >> yeah. and then there's kourd ray and everybody else who goes on with this and he's looking good in ohio. >> the last pole, he was up a couple of points. >> right one of the top stories i saw in "the journal" today, nick, was i thought problematic for the president because it says may of 2016 there was a meeting between

roger stone and a russian and i thought, wow, that could be -- that could be a problem. i love it when it's after the election they're meeting in january i don't understand why it gets a lot of play. en i read this, are you up to speed on this? they're saying thathis guy has worked as an fbi guy, that supposedly called stone and said, i've got stuff on hillary if you'll pay me this. they're saying it was part of the whole fbi thing and it was like a sting do you knos that true? >> i don't have a full reporting on that. we're still trying to chase that as well. peeling back the layers of the onions here. there were so many of these meetings happening here, so many reports. we know the russians were trying to do something. >> it was a russian guy named i don't know if i can pronounce this henry greenberg, right

you know >> i know. supposedly he's own to the fbi. he wanted $2 million for the dirt on hillary. >> right >> but stone -- >> he didn't campaign -- >> didn't cop tos initially unsome other guy roger stone is a shady character. hat's a key point. when the fbi comes and asks you questions, you don't answer it correctly, that's where you end up in prison as mueller continues, we're finding these stories start fall apart >> going to appear before congress as well >> he's offered to we'll see if that will be in live testimony on television. >> wow >> n looks like kushner's star is rising a little bit over the weekend. i don't know if you saw the story in ""the new york times"" about the connection between him and this meeting with kim jong-un took place. >> yeah, no, putting all of these things together, that's absolutely true. we're seeing a lot of the back

stories how kushner is a channel, the person the president trusts the most to set these up he was instrumental in setting this up in saudi arabia. absolutely keep an eye on him. >> i wanted to finally ask you about this last week jeffrey seinfeld did a yale ceo conference and surveys them the event itself is off the record the statistics are not 69% of07 attendee thought the kim/trump meeting was, quote, overrated and then said 59% said kim was the winner 28% thought that trump was "the biggest loser. what do you think of that? >> i mean, in the people that we've talked to in foreign policy spaces, they say a lot of the exact same thing promising denuclearization but

no strong promise on that. >> nick, we will see you soon. >> thanks. >> thanks. coming up, small business owners facing off against china and winning. kate rogers joins us with that story, next. kate. >> reporter: hi, joe this entrepreneur was being under cut by china and decided to do something about it we'll tell you much more about it l over doozeldorf, doozles are dozing.

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welcome back, everybody. we've been watching the futures. not a great picture for the bulls. looking at the dow down 180 points before the open s&p futures down by 16 nasdaq down by 54. we'll see where we head as we get a little closer to the opening bell u.s. treasury market we're keeping an eye on. the yields, the ten year sitting under additional pressure. >> virgin monies agreed to be bought by cybg for $2.3 billion. the deal creates a great deal.

president trump talks about trade disadvantages. kate rogers joins us with the story. >> good morning, joe this small business owner decided she was losing too much business with china to wait any longer she took on chinese dumping firsthand. take a look. kathy leonard has run auburn manufacturing for almost four decades. the small company has two facilities in maine and restant fabric industrial use. selling to businesses in oil, petroleum, shipbuilding and even the u.s. navy. a few years ago she began losing sizeable contracts leonard watched about 30% of her business in silica fabric disappear causing her to layoff 10 employees, 20% of her work force. she began to explore why. >> we found that the materials were coming from china >> the products were being discounted up to 30% and being sold to her competitors.

leonard hired a law firm that handles trade matters. it helped her file an antidumping case with the commerce department. 18 months and $1 million ruled in auburn manufacturing's favor. they placed a duty o200 to 300%. >> i fell ee boboulient for a mn and grateful it was over and moved quickly on to sort of wary about the future because it doesn't mean you win win and all of a sudden you get all of your market back and you make more money. it doesn't work that way >> kathy's hired back seven workers. the business is still feeling the impacts because so much of that product had made it into the u.s. it will take time for all of it to be used and sold off. this is a lengthy and expensive process. she spent almost $1 million.

that's not something that many small businesses can do. she's the sole owner of the company, it was her decision but she lost 30% of her business she had to do something about it. >> wow it just goes to show you that once the markets have moved, it's really hard to corral it. >> certainly she's hay she did it like we saidso much product made it here she said some is still coming through malaysia >> it's unbelievable to see a small business taking that on. >> yeah, absolutely. >> "west wing. "west wing." >> i watch "west wing. >> martin sheen is president that's easier than what's going on now. >> been enjoying it. >> yeah charlie sheen i could see. no anyway >> that's scary. >> who plays you in the movie? >> no. the president. >> yeah, i know. >> when we return, 'tis the season for beaches and beautiful vacation homes we're going to introduce you to

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welcome back to "squawk box" this morning take a looat futures on this monday morning the dow looks like it would open down triple digits off about 180 points nasdaq looking to open off, about a 55 points. the s&p 500 looking to open down 16.5 points. wti crude right about now as we flip the board around, guys. you can see there wti now at 64.68. at least three people have died, dozens were injured after a powerful earthquake shook the city of osaka. japan's meade logical agency is calling it a 6.1 on the richter scale. that's one of the strongest of its kind on japan's scale from zero to seven. reports of structural damage,

broken pipes and no tsunami warning has been issued. in corporate news amazon's twitch is outperforming youtube gaming data from stream labs finds twitch has953,00 people watching its video game streams. youtube gaming was averaging 272,000. perhaps more importantly, twitch's numbers are up quarter over quarter while youtube's numbers have decli it is vacation season and affluent americans are flocking to luxury residences for the summer but for many homeowners, a second or third or fourth home comes with a headache. joining us with more is brent handler. that's always the issue, brent you use it for three weeks a year, maybe. maybe even six weeks a year. but the maintenance, the landscaping, the plumbing, that's 12 months a year. >> that's right. >> so it would be nice to have a really great place where you can

go, but it's tough to own. that's the answer here >> right at obviously is the real challenge. most people that want to own a vacation home can afford a vacation home. there's three major problems, right? first is it's a money pit. they're putting money out and paying for the gardener and paying for the snow removal. that's difficult and expensive then, you know, they don't use it enough like what you just said you know, a lot of times you get a second home and you get a second job we're here to talk about inspirado real estate where we've solved those issues. we've identified the homes we want and then we're making them available for purchase it's like a landlord in a box. we make all the expenses when you purchase a home. we take care of everything so you only enjoy your vacation home when you work with us, you also get 300 other homes you can go to so if you buy a house in keowa,

you can still go to aspen or somewhere. >> is this like a time share but you own it >> no. it's a luxury brand like a four seasons. four seasons doesn't own hotels. what makes ins pirato is we lease these homes from the owners we manage and control the experience airbnb is more of a distribution it really doesn't have anything to do with what inspirato does because we manage and control the entire house, we're able to have a concierge at the house. so think of us as a horizontal hotel. think of us as 300 four seasons homes spread throughout the world. >> you lease the properties. do you lease them 5 ys a year >> yes we manage and control like a four seasons hotel a hotel is owned by a third

party owner. four seasons manages it. we manage to a standard that would be similar to a luxury o hotel. so there's no vacation roulette with inspirato >> when can the owner use his house? >> we work that out. >> then they also have access to the others >> it's a pretty great system, right? it's kind of the perfect vacation home. you buy one home, get access to 300. we pay all of your expenses. >> can you rent it out when the owner's not there? >> well, what happens is inspirato has a membership we also have guested that travel it's a -- >> 15,000 members for 300 houses >> 15,000 members. >> this is not all house owners. these are people who have joined inspirato and can use it >> so there's homes. today we're launching to get more homes

inspirato as a company has 15,000 members they pay a fee they travel to our homes >> and you own the homes >> we don't own any homes. we have landlords and developers who own the homes. >> how long are the leases >> typically they're five years. >> the reason i'm curious about the actual business model is that historical by most -- i don't want to say most, but many times companies go bankrupt. the model requires more money to come in and then -- >> we have nothing to do with the time share we're much more like a operating company than a time share. we have landlords who own the homes and we manage. challenge on the luxury segment is airbnb doesn't work that well you can't get a consistent experience you can't have the type of experience you would have at a four seasons or a ritz-carlton

>> let's talk about the price point. >> sure. >> what do you pay to be a member of inspirato. >> either $20,000 or $10,000 to join two different types of memberships. >> what do you get for each? we have an audience trying to fi out to do >> when you join, you get to travel with the club you get access to our rates, special discounts. >> for 10 or 20? >> for $10,000 you can do that >> what do you get for $20,000 >> you get family access >> and you get nothing with -- just so we're clear. you get nothing for your 20 or 10 so it's 20 just to get in and then you're paying what a night? >> so the average rate for inspirato is $1400 a night the average home is worth $4 million. and you get access to the home and all of the service without any of the risk and

uncertainty with an airbnb you get something to take care of all the details while you're there. >> i wish we would have brought up -- so there's a castle inhe uth of france that you can basically -- or like a place in florence that is totally staffed and >> and there's vale and aspen. >> like the castle in france, so you're in for 20 but how much is that a night >> that's the part about inspirato that's different than a time share all of our rates are managed by kind of market demand even for our members. it could be $500 a night peak season could be $2,000 or $3,000 a night >> for the castle? >> yes >> interested in the castle. >> any interest to staying in a castle >> i may we'll see. >> is it cold? is it heated no, anyway -- it's got toilets, right? >> it does >> like running water?

>> yes >> thank you coming up in the next hour, one of everyone's favorite media watchers is going to be joining us jim stewart from "the new york times.

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disney down graded the entertainment giant in the middle of a battle straight ahead. the senior global adviser for the counterextremism project mark ginsburg is here to talk about the war on online terror that interview minutes away. plus oil on the move ahead of this week's opec meeting. where prices are headed as the second hour of "squawk box" begins right now ♪

live from the beating heart of business, new york, this is "squawk box. >> good morning. welcome back to "squawk box" here on cnbc we're live at the nasdaq market site i'm andrew ross sorkin with becky quick and joe kernen we are in the red this morning off triple digits. dow looks like it would open down 180 points off right now. nasdaq looking down as well 50 points off and the s&p 500 off about 17 points u.s. equity futures as a result not a great morning. let's tell you about some of the head lines making news this hour the founder of theranos elizabeth holmes has been indicted on fraud charges. holmes as well as another former company executive is accused of trying to defraud patients changing of the guard at the

federal reserve today john williams who had been san francisco fed president takes over the same job at the new york fed as of today replacing dudley kansas city fed president esther george will become a votg member starting with the next meeting. and audi ceo rupert stadler has been arrested coming in connection with volkswagen diesel scandal authorities say they're concerned stadler might try to hinder an ongoing investigation. some stocks on the move in this down market one of them that could be going the same way is from hold at pivotal. argues the recent run-up doesn't reflect at a higher price paid for fox's assets would reduce the value of disney to its shareholders now that there might be a bidding war they have to pay more.

says that the alternative darned if you do, darned if you don't benefit.mean it wouldn't we'll talk to the analyst brian wieser who has agreed today to be known as brian wheezer. gives us an excuse to use the wheezer songs we have. might just want to watch that. you like wheezer >> i don't really have a thought on it. >> you are way in the past >> i'm locked into the report i'm about to give you. >> jerry's been dead for 20 years. >> but they got john mayer there now. and he's really good and jeff on piano. they're really good. i think i'm wasting as much time as you did on wheezer.

you encourage this >> of course i do. google investing $550 million in chinese jd.com. going to promote on its shopping service. it won't involve any new initiatives by google in china where its main services are blocked. and i definitely don't think that's the biggest story of the day. i don't think it's the biggest >> which one google >> the 500 million -- >> we heard right at the top of the show i think that was just boilerplate. >> probably. bigger story is probably trade consequences trade consequences are something we've been talking about econists don't see current levels of tariffs and retaliation as hitting growth substantially. the bigger concern for now is the unintended consequences. the effect on business investment, the drift towards government intervention in the markets. steve leisman joins us with more on this big story. >> there's some fear this thing could escalate, the trade war

could escalate and become meaningful in terms of global trade. not right now though especially that it could undo the positive effects of the corporate tax cuts moody's investor services are adding the second order impact of tariff increases would be to dampen momentum. jerome powell says their contacts in industry are telling them to question capital investment that's ironic because the need for additional capital spending, that motivated the tax cuts. >> i wouldn't comment onny particular specific trade actions. i will say that we, of course, have -- we have broad context among business leaders around the country. and they say m concerns about changes in trade policy are rising, i think it's fair to say. also you're beginning to hear reports of companies holding off on making investments and hiring people >> barclays writes thee

thing. the indirect effects are what really matter including the likely chinese response and any effects on plans daniel published a blog from the cato institute said if the president follows through on the recent threats and raises the total amount under tariffs to $800 billion on the auto and autoparts business, the extra profits from the corporate tax cuts, quote, could be entirely wiped out. for the manufacturing sector you raise it on there, and it just goes away >> you giveth, you taketh away >> i will also add that goldman sachs in an interesting -- you know how the street has been -- first it took it seriously then they stopped taking it seriously like it's a negotiating tactic goldman says their best case is july 6th the tariffs are going

to be put on so i think they're moving away from this negotiating tactic that the president does mean to put these on >> he may mean to do it and it may be a tactic at the same time you wonder what the end game is. how does this play out >> each time it happens and escalates, people see it less as a negotiating tactic and more as a real policy of the administration intending to implement. and i have to say, i'm having a lot of trouble tellinghe other side of this because after peter navarro, it's hard to find a conservative economist who agrees with this policy i called all the conservative economists i know and very few are willing to back up the president's economic plans as a negotiating tactic, they're not commenting that's when i could say does this make sense. but in terms of just straight economics, they're not seeing it or feeling the end game here

>> steve, thank you. >> pleasure. all right. let's take a look at the broader markets. joining us now, tom manning, president and ceo of putnam investment company and barry james from james investment research. tom, we -- you're in boston and the name is putnam does it have anything to do with the putnam, the big huge putnam investment management company? or is it totally separate? >> joe, no relation whatsoever other he sharing of the name >> wow that's a really good name to use. when did you launch fl putnam? >> the company's been around since 1983 so we've been here for awhile. >> and based in boston that's very confusing. anyway, you talk trade, right? at the top of the pre-interview. that's the most immediate risk what steve was just talking about, trade issues.

>> yeah. obviously this is led by the united states. it can be escalated by the united states. we have a good hand but not a great hand it's hard to understand what the end game is here i see a lot of ways that this could end badly and not so many that it'going to turn out to be a positive thing for the markets. market reaction today is very appropriate for what's going on. >> are we up on the dow orp a couple of percent, you think, 6% to 8% is what we get for the year >> we think that's still likely. there are a lot of things that can push that higher or lower. right now what's going on with the trade issues, we'd expect the market to settle back here a little bit >> so as far as rates go, they're headed higher. but at this point, equities are still the place to be. >> i'd stay with equities. fixed income not all that

attractive with the prospect of rising rates we just don't think that's a great spot for people's money today. >> so let me switch over to barry. barry, you're still long, i guess. you figure keep where -- stay the course with the percentages of equity that you have right now. but maybe try to buy some on a value basis, don't buy the momentum stocks? >> yes you know, they all -- the movie dr. doolittle had this push me pull you animal. that's where the mt is going today. we're in aeriod transition. so we think that, you know, going from the very large stocks and the real tech heavy growth types of stocks into smaller stocks and more value or bargain oriented they've been ignored so long, we think that's why we're kind of in this area of stasis with the market so we think there's some great opportunities there. but maybe not in all areas of the market >> so small caps seem better now. why is that?

is that because they're more domestically oriented. europe slowing down or this is the best place to be >> yes you know, this year the small caps have done better than the large caps and there's two things that favor them they don't tend to have as much exposure internationally so these trade wars aren't as impactful. and the other thing, of course, is the change in the tax law actually, they had much higher effecttax rates than the larger companies and so they're getting more of a boost from it. so they've got that and they've been ignored, it seems like, forever over the last ten years. it's all been growth all the time i mean, over the last five years even the growth has just swamped the value side of things and aso through a transition in the economy which, you know, we seem to be in pretty good shape right now, folks are going to be looking for where the bargai are that's where they are. >> and you figure, like, since

the election that 40% move that was -- that's not going to repeat itself any time soon. >> it's going to be a transition if you look at the s&p, it might not do a whole lot over the next five or ten years. a lot more volatility than we've seen in the past the small cap area can do well after 1999 we had a pretty big run-up in te and in 2000, the nasdaq fell 38%, but the small cap value index went up 22%. so it was possible to make money even if the, you know, the large tech area ran into some trouble. so that's the kind of thing we're suggesting, folks. don't have high equity levels today. and even have some cash because you get good yield in cash today. >> all right, gentlemen. thanks time will tell but appreciate you being on today. thank you.

when we return, the battle against online terror and extremism. we're going to discuss big tech's role in making the internet safe. we'll talk to mark ginsburg. and later jim stewart is going to join us to talk deals and who may win the bid for fox's assets he's our guest a little later in aye program. st tuned you're watching "squawk box" right here on cnbc your muscles look good, but we should be seeing more range of motion. okay, we let see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that.

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welcome back, everybody. a disturbing new report shows how isis uses facebook to recruit and organize members let's bring in mark ginsburg, former white house mid-east policy head. ambassador ginsburg, thank you for joining us today >> good to be with you >> we have heard in the past about how facebook is being used by isis. i guess the new report shows you what how much worse have things gotten >> well, facebook continues to make an effort to take down extremist content. but what is happening is that isis and other extremist organizations are gravitating to the stepchild platforms of facebook facebook live, facebook community. and so isis while it may have been destroyed physically, they're finding more and more opportunity on some of these derivative platforms owned by google and facebook to

reorganize and to in effect reinspire and reincite >> to the tune of how many post sngs what are we talking about on a daily, weekly, monthly basis? >> on a monthly basis, in the report we just issued entitled spiders of the caliphate, we're seeing hundreds of new videos being uploaded every month by isis and by other what i would call virtual mosque radical imams. zuckerberg said they are removing 99% of the content but we don't know what is really left or what our organization is finding is that isis is now using these other platforms to reorganize >> facebook, google, other companies have said that they are removing the stuff as quickly as physically possible but you have gone ahead and commissioned software. it strips any of these things

out as soon as it finds it it acts as a bot and goes to find these things. what is the response to this >> well, unfortunately the industry's response is we don't want to try it because if we start using third party software, we may wind up losing our immunity from content that is granted by congress this technology is already deployed around europe and in africa and has been utilized to effectively take down significant amount of extremist content. but google and youtube refused to en try a prielt project out. even though it was developed to help remove child pornography from the internet. >> this goes back to a long argument going back to the compuserve days. when they said we are just the bulletin board we're not a publisher so we're not responsible for anything that's posted on our boards.

that's an idea that's under attack right now what do you hear from congress when it comes down to this >> google and youtube spent so much time from amending that act to remove that liability let me give you an example we discovered on youtube there are over 300 videos to create pipe bombs one was used by the santa fe school shooter to make his pipe bomb youtube may have taken down 10,000 of those in the last couple of months but what's the use of having bomb making videos online? >> do you find any sympathetic quarters in congress are there congress people who are sympathetic to your cause?

>> senator portman and others have held hearings, but there has been no real effort expt from as you may recall, becky, there was an effort to change the communications decencyto li social media companies but they have been unwilling to attack the issue of how to construct pipe bombs and how to ram down people videos that isis posts online >> they can be held responsible when it comes to child pornography? >> that's right. and the very software they have used to in effect protect themselves from content liability for sex trafficking and child pornography they have not deployed to remove extremist content. >> it seems like a small leap to get from one to the next >> that's our argument we wonder why they haven't been able to do that. >> your next step? what's the next way that you come back at this and attack it

again? >> look. our job here is to convince social media companies there should be a zero tolerance policy >> i can't believe that's a fight you have to take on. >> yeah. and basically i think they shou adopt a zero tolerance policy why not a moon shot for technological support and get third party content developers, software developers to basically offer them the very software they claim they don't have the software is out there. in their own organizations to rs prevent them from losing the content immuty they enjoy. >> ambassador ginsberg, we want to thank you >> appreciate it we're going to find out what's weighing on oil prices before the opec meeting. and jim stewart is going to join us to talk about the recent wave of media deals mequawk" returnsn st iju a

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welcome back to "squawk box. the big sports story of the weekend, brooks koepka battling back to become the first repeat

winner at the u.s. open in almost 30 years. he hits it a long way but has it all. had a lot of par putts that made the difference for him getting up and down from really difficult plays. it was a great tournament to watch for the past four days although, i don't know, wish we'd get it back at nbc. >> hope springs eternal. when we come back, we're going to talk oil markets. plus the fox board expected to meet this week to talk about comcast's bid for the company. what will diss knee do could e assets be sold to both companies? we'll talk to jim stewart about it for now look at the equity futures. dow down about 190 points right now. the nasdaq down by 55. we are just about two hours away from the openi bl. quk x"ilbe right back.

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good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. among the stories front and center this morning, apple says its upcoming update will improve 911 calls. it will provide more accurate location information apple supplier foxconn will establish its headquarters in milwaukee. foxconn says more than 500 jobs will be located there. last year foxconn said it will be building a $20 million panel plant in that state that could eventually employee 13,000 workers. and perry ellis is being taken private. a consortium is buying the company in a deal valued at $27.50 a share he had originally made an offer in early february. okay time to drill down on

sector-nomics. dom chu joins us from cnbc headquarters he is off the golf course and now playing the production and exploration game >> good morning. i see what you did there with the whole drill down remark on our oil sector check it's important this week overall because we have the opec meet g ing kicking off this week. so it's going to be a real key to watch this particular set of stocks going over the next few days at least. take a look at this, first of all. if you look at the s&p 500ust on a year to date basis, the s&p 500 is now just a notch above energy energy had been in the leadership position the last couple of weeks when oil prices have taken a bit of a hit. if you take a look now further against one specific set of them the exploration and production companies. the spdr etf is a mouthful

but certain pockets have been doing really well. if you look at drilling down further into the stocks that have been driving this performance, the winners here are names you may not have nersners -- necessarily heard of it's penn virginia corporation doubling over the last period. also california resources corporation up 82% den denbury up 78% worth pointing out that whiting and california resources are two of the most heavily weighted in this index it's not just exxonmobil that drive the etfs when you look at oil and gas production, far outperforming the oil services sector. as people pick stocks, it's going to be key whether or not they view this trend of

exploration outperforming as one that can last. over to you guys >> okay. we're going to continue, but real quick, dom. you weren't there saturday were you? >> i was not i was only there on friday i watched the whole thing, yes >> do you -- i said that if i had played the way i played on saturday, i would not have finished ever. you know, where you have to get it in the hole on one, two, three, all the way through 18. would you ever get finished? maybe if i took 30s and 40s on holes. >> i would have tried to have finish, but i have a feeling if i was playing with you and other playing partners and are friendly, we would have -- >> we would have given a few but if you were those guys and really had to finish a round on saturday, i literally don't know what the score would be for me i would have probably 200, 300 i'm not kidding. >> we've played together before.

you know putting is not the strongest part of my game. people got destroyed on those. >> on 15, i never would have had the ball stay on the green ever. with my short game >> for those viewers and listenero don't ow what rodan holes are, they are running away from you. all the holes at shinnecock are like that. >> the worst one is a different breed than we are. and then the guys like koepka and dustin johnson and, you know, tommy fleetwood or something, i don't know. >> for tommy fleetwood -- >> he could have hit that putt easily on o 18 all right. thank you, dom joining us now -- i got backup to talk to someone about it. it's built up. john kilduff is here again and a cnbc contributor the russians, they don't like us, but they're ready to open it up more than the saudis are right now.

the saudis are talking a good game but they'd still like higher prices. >> no doubt. one of the biggest victories they've seen is to get russia into the opec fold the russians have been pushing hard over the past year or so to produce more the russian companies especially because they want to grow. they've seen the growth here they've seen the growth in the other parts of the world they want in on it and they're going to get in on it now. >> the saudis really don't want to increase production to the extent that they're talking a good game. they like -- it's come down quickly, hasn't it >> this talk that the russians have put out there about upping production upwards of 1.5 million barrels just cut the legs out from under the rally. we're down about 12% from our highs. we were at over 72 for$72 for w. it's been quite a free fall. it's going to be a fascinating meeting this week because it

could be the end of opec as we know it. venezuela, iraq, and iran have all gone on record saying they do not want an increase. as the russ e pressing them all to put more oil on the market the agreement could come to an end. we'll see what happens at opec >> it's a complicated affairrt this time around there's a two-day seminar that will have presentations about the -- >> in vienna. >> yes harold hamm is one of the presenters >> over by friday. >> friday into saturday. >> saturday still? >> the opec regulars meet on friday russia comes on saturday >> i don't want crowds and security and all that stuff. >> you should get yourself credentialed, head in, ask questions. >> no. that would be work, right? >> you'll see brian sullivan and others right now we're getting whipped

around yesterday there was news it would be 600,000 we're going to be battered by headlines here the other big news on friday, the chinese putting oil and oil products on the tariff list. that also knocked down u.s. crude oil prices on friday because the chinese have been stepping up and buying about 300,000 barrels a day of our oil. so to the extent that goes away for u.s. producers, the spread you've seen could get even worse. could get even worse for the guys in the shale plays and the coast. >> you think $58 could next on wti, huh >> yes >> and is that likely? or just a possibility? >> i think it's fairly likely. we're at a critical support point here around $64.25, the lows from earlier in the month and a break of that gets us to

$62. and $58 is the bedrock support number that i see on the chart and i do see us going back down. >> so the headlines we should be trying to read into over the next week are what wh will they be trying to -- i don't think they want $58 either. >> not so much so they are going to torture themselves and try to finesse this you'll hear them talk about maybe just doing this for a quarter, several months' time. maybe react -- being reactive to price. didn't work out too well whenever they try to get this really too cute and too on point, it generally doesn't work out for them what happens is that the market forces their hand. that's why i think $58 is likely that'll get them upset enough again where they will rein in

production and let the global supply and demand run. >> how will we know if opec really is cracking and it's the end -- beginning of the end? whether maybe we've seen the beginning of the end already >> we're seeing it now to a degree the russians have already raised their production the saudis have raised their production over 10 million barrels a day. at a time when venezuela are barely holding on, the iraqis are caught in the middle here. they want to put more on the market too watch what those three do and what the saudis do what they will try to do, saudi arabia, to keep everything together is put on a facade of agreement and cooperation and let everybody dot the heck they want for awhile all right thank you. >> thank you coming up, disney shareholders getting a downgrade this morning the deal for fox is a key for

the company's outlook. we'll discuss it with jim stewart after the break. then later, kevin hassett will be our guest we'll talk trade and the state of the economy "squawk box" will be right back.

♪ welcome back to "squawk box," everybody. we've been watching the futures this morning and it's been a little ugly for the start of the week in fact, we are now looking at the dow futures indicated down by 200 points. the dow was down by almost 1% last week. we'll see what happens as we get a little closer to the opening bell s&p 500 down this morning by 18 points the nasdaq off by 58 there's not a clear reason for why you're seeing this selloff people are pointing tossues like trade conditions. there's really nothing that would indicate that's the reason for it a lot still to come today. started on friday, but by the end of the day it wasn't

bad. >> end of the session. >> actually, the end of the day. i think you can say that >> my day ends past 4:00 p.m >> yeah. wend down?er on friday, what did it was down triple digits and then it wasn't as bad. let's take a look at the s&p closed at 2,779. i'm watching it because of my new santoli call at 2,772. let's look at stocks to watch this morning reversing an analyst call made back in january. citigroup cites optimism saying the manager is well positioned in the changie ining industry si zillow was downgraded to neutral. it's had a 60% run-up so far this year already. and southwest airlines was added to the core ideas list at

evercore i get it following a meeting with the management, evercore points to a smart balanced sheet coming up, the battle for fox. jim stewart is going to join us. and here are the futures just looked at ahead of the opening bell on wall street. 200 and change on the dow. "squawk box" will return after a quick break.

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♪ welcome back to "squawk box" this morning we have some entertainment news to tell you about. don't know where you guys were over the weekend, but sorkin family was watching "the incredibles 2. winning the weekend box office with a little bit of help from the quick family also watching >> we were >> so we're all helping the box office there the vie becoming what is now known as the best animated opening of all time. and the biggest pg rated launch ever brought in $180 million in its first weekend in north american theaters that topped analyst estimates. we were talking about it in the last -- in the 6:00 hour, why it

took nearly 15 years to make and apparently -- i didn't know this the writer and director made "ratatouille," "tomorrow land" all in between >> because he didn't like the script >> i think he was working on the script the whole time. all of those happened in between in the last 15 years plus then they had "cars" and "nemo". >> you've got to see this too. >> he was also the voice of edna >> the writer/director was the voice? >> was the voice of edna also remember the insurance boss gilbert huff was his name. i looked that up >> his voice is amazing. >> and john ratzen burger is in

a lot. >> don't you think there's got to be -- don't want to give anything away, but there's enough at the end to definitely you to the next place if you wanted to do it. >> it's a great franchise. >> but you'll have to wait another 14 years >> if they can make all these "star wars," they can make more "incredibles." they've got to do it we should also tell you, quick programming note this morning. analyst brian wieser but we're calling him wheezer for the morning. >> he'll be okay with that >> he's going to be joining us at the top of the hour to discuss what may be described as a bold move. he has now downgraded the stock of disney during this big battle with comcast, our parent company, and disney over the fate of some assets of 21 accident centust century empire >> joe theismann

his name was joe theismann >> because of the heisman trophy that's w >>d go ahead and call me that because it rhymes with heisman. >> wow >> that's why i think brian wheezeis going to be okay. >> you think his mother or father will be okay with it? >> i don't know about that >> we should have the parents call into the show >> i think that just for -- you know, for the consistency of the show, i think they'd be okay just for his appearance maybe. doesn't have to be permanent how about that are we sure it's wieser? >> no. all right. in the meantime, amazon's twitch -- >> what the hell is pivotal research now they're on

now everybody's talking about them >> they're on the radar. all right. let's talk about the new data that shows amazon's twitch is outperforming youtube gaming twitch had an average of 950,000 people who were watching its video game streams youtube at the same time, that gaming average there, 272,000 people and perhaps more importantly twitch's numbers are up quarter after quarter while youtube's numbers declined >> i think that's true about joe theismann. i hope >> sounds good and virgin money has agreed to be bought by cybg for $2.3 billion. the uk's sixth large bank with about 6 million customers. richard branson owns about 35% of virgin money, obviously in the meantime, want you to check this out actress mary mccormack, she posted this video of her husband's tesla. it's on fire

this happened over the weekend mccormack says her husband was forced to pull over to the side of santa monica boulevard in l.a. and evacuate the vehicle. the car wasn't in autopilot mode or involved in an accident or any sort she posted this video on twitter saying, thank god my three little girls weren't in the car. tesla is looking into the cause of the fire. the company releasing a statement saying in part, quote, we are glad our customer is safe this is an extraordinarily unusual occurrence >> it looks fake, doesn't it it looks like someone has a flame thrower underneath there >> the issue has been the batteries are underneath the car. they run the span of the bottom of the vehicle that's what gives it the weight that it has. and also the balance of the car. >> lithium batteries >> they've done a lot of work to try to avoid these types of incidents in terms of the battery technology

>> we still don't know what happened in this situation take a look, by the way, shares of tesla this morning not necessarily as a function of that fire, but they are down about 3% there was also a note that cnbc got ahold of over the weekend where he w praising and thanking -- this is elon musk -- many of the team members on the production team in terms of what they had done to reboot the factory for model 3 but also said there is a lot of work to do right. let's tell you about another story we've been talking about this morning theranos founder elizabeth holmes has been indicted on federal wire fraud charges the u.s. attorney's office accuses her of engaging in a multimillion-dollar scheme to defraud investors, doctors, and patients former coo and president was also indicted. if convicted, they both face a maximum sentence of 20 years in prison and fines theranos announced that holmes has stepped down as ceo, but in

the articles i was reading over the weekend, it said she was staying on as chairman which is kind of a crazy situation in this entire thing >> i'm looking this up she's still the chairman if that's the case, it's crazy why would they let her be the chairman of the company? president trump has repeatedly talked about the impact that trade disadvantages with china and the effect on small companies and big as well, and this is an issue one small business owner took into her own hands in one of kate rogers' reports. >> kathy leonard has run auburn manufacturing for almost four decades. the small company has two facilities in maine and manufactures heat and fire

resistant fabrics. a few years ago she began losing sizable contracts. leonard watched about 30% of her business in silica fabric disappear causing her to lay off 20% of her workforce she explored why >> we found that the materials were coming from china >> the products were being discounted up to 30% and being sold to her competitors. leonard hired a law firm that handles trade matters. it helped her file an anti-dumping case with the department of commerce 18 months and almost $1 million later, the d.o.c. ruled in auburn's favor >> i felt ebullient for a moment, and then just grateful it was over. and then moved quickly onto sort of wary about the future because it doesn't mean you

win/win and all of a sudden you get all of your market back and you make mormoney. it doesn't work that way >> the businesswoman has hired back about seven workers and is hawon this battle. but also says that the business is still feeling the impacts of dumping because so much made it into the u.s it's going to take some time for it to be used and sold off >> i just need to correct myself we were talking about tesla. we showed the tesla stock chart if we could show again wi i said it was down 3%. it was down $3 >> well, you need to correct yourself about quite a few things, sorkin >> goodness gracious >> listen to this. so our producer of the hour sent brian wheezer a ti how do you say your name he said wheezer like the band was his answer no wait a second! >> you were the one doing this all morning. >> i was the one doing wheezer

but you deliberately said wiser just to keep me from having my fun. >> both of you acted like, oh, no, it's wiser, it's wiser you're stretching it to get wheezer. to keep from playing wheezer. >> you agreed with us. >> no, i didn't. i just said we don't know. >> now he turns it around on us. >> i said d diyou know >> i said no >> you tried >> i was only at the end -

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stocks in red. trade tensions escalate. we'll talk to cea chair kevin hassett. that's coming up disney cut to a sell the analyst citing consequences from a potential fox deal. he will make his ce straight ahead. plus a cnbc exclusive interview. the ceo of ubs speaks out as the final hour of "squawk box" begins right now ♪ live from the most powerful city in the world, new york, this is "squawk box.

>> good morning. and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen along with becky quick, andrew ross sorkin. futures right now indicated sharply lower. almost 220 now on the dow. 216. 20 on the s&p 500. nasdaq down about 64 treasury yields this morning are under control in terms of not being near 3 %. could have a 2.8 handle at one point. finally oil prices have pulled sharply back from those $72 levels that was before this opec meeting. in vienna where all the cool people are going >> i don't think i've been to vienna have to put it on the list

here's what's happening at this hour. tesla working towards the goal of making the production in a tweet this weekend, an e-mail to employees obtained by cnbc, musk congratulated them on their efforts but said radical improvemre still needed to reach their production goal. it's official. john williams who had been san francisco fed president taking over the same job at the new york fed as of today replacing retiring william dudley. that change, kansas city fed president esther george becomes a voting member of the fomc starting with the next meeting big call on disney this morning. pivotal downgrading the stock all the way to sell from hold. the firm noting that disney will either have to pay a higher price for those fox assets because of the bidding war that we're seeing with comcast, our parent or if it doesn't get the deal, then if it falls through, it doesn't get the synergies from the deal it seems like a lose/lose.

joining us now, brian wieser at pivotal. when we ask you how to pronounce your name, you said like the band have you been watching the coverage or is that what you tell everyone? >> i just heard the tail end of it no, that is a simple way to describe how to pronouncit >> that's what i thought did you hear that, sorkin? anyone asks him, he says that. we spent the whole morning talking about that instead of your call, by the way, which probably isn't good. but initially when i heard it, it was like, wait a second if they keep trying, they're going to pay too much. and if they don't keep trying, then they don't get the benefits of the synergies it just sounds like -- you know, it's a lose/lose or dammed if you do, damned if you don't. is that what you're saying >> absolutely. i understand why stocks in this sector have had a run up we also downgraded discovery from a buy to a hold

30% gain in two weeks? the point is that there is such a thing as a benefit that comes from if consolidation from the industry but from disney because they're expected to be a consolidator, they're getting the synergie and that would have added value. or they're going to have to pay more and that's going to dilute existing shareholders. disney's run up, either way you cut it, it's negative for disney. >> do you see them ever adding cash or the tax implications of that too heinous or do you give an idea of how this is going to play out and who the eventual winner of the e prize is >> i would be guessing like everyone else, are really. there may bereative, clever solutions that it can find a way to help disney avoid diluting its existing shareholders and still trumping the comcast bid i don't know what that is. but it's hard to imagine

>> if they're damned if they do this and damned if they don't, what's your recommend that they do >> i think they internally must have a set of numbers about an optimistic case. most optimistic case you've h got internally because i believe in their strategy i actually think very positively abt e approach they're trying to take that they want to own a lot of direct consumer approaches, right? makes a ton of sense they want to go heavy against that approach. without fox, they can certainly do it, but it's going to be a little bit harder. it's not as compelling a proposition. >> brian, i don't know if you've been polling investors on this, but one of the big questions has been given the box that disney seems to be in and the fact they're going to have to raise their bid to some number, do you believe they have to raise their bid to the $65 billion figure that comcast has now put forward or could it be less? or does it have to even be more?

>> my guess is it would have to at least match that's just a guess though >> yeah. >> maybe a way to come up with a more compelling option with cash and create only optionality for invests. >> if you think they're stock is overvalued at this point and they're using that for a purchasing power -- >> i didn't change this price target, to be clear. i don't see positivity from this to valuation and so it's over valued either way. >> do you think, brian -- do you follow netflix, brian? >> i pay attention to it my colleague covers the stock. >> i just wonder is there anything to the notion that both ends of that possible arbitrage situation between netflix versus a comcast or something, has it gotten overdone in terms of seven times earnings, the other is at i

don't know what the hell netflix is at. but is that overdone the story is well known that netflix is growing gang busters introduce to its service do the prices make sense right now for how the multiples are? >> i can't comment on the valuation. but when i look at the traditional media companies, it's really hard to justify netflix as part of those companies if you're looking at a combination. i think it's necessary to look at netflix in somewhat isolation. but i think this is the conundrum. if you're disney, you could take an extra $8 billion a year and invest in content and probably build a pretty compelling direct consumer proposition it would be riskier than investing in asset it would take a lot of capital if you're disney to go and buy something like a netflix that's why hulu is probably a

great platform if they can take control of it. if they can get sky and what they're doing with over the top delivery there are a lot of platforms that disney could capitalize on and if they have the capital to invest more in content, they can absolutely be competitive with netflix. >> so you really needed to be in cannes to cover this >> i cover the advertising industry >> sure. got to be. well, i me, you can't do your job if you're not there. how did you -- what was your story? >> i was asked to go i'm only going to be there unfortunately for 48 hours >> how do you justify -- >> no you're going to see me on the show >> from there. >> from there. you will see me with a cocktail on the beach

>> brian wieser, thank you >> we'll see you >> even if you don't have an analyst, we just like playing wheezer. >> you're coming on wednesday, thursday, friday >> they goa loof songs sweater song >> great band. >> island in the sun they are great i'm worried we're going to play something with an "f" word or who knows what's in there. >> that'd be a first all right. let's get to our next guest. joining us just now is michael porter he's a harvard business school professor. his new article in the harvard business review is titled "how ceos manage their time." that is something we all wonder. let's talk tirs first about your methodology. you had these ceos give you increments of 15 minutes' time to tell you what they were doing. how many ceos were surveyed?

>> well, we were able to look at 27 different ceos. average size about $13 billion >> revenue >> in some cases international companies. we track them for three months 24/7 so there's never been data like this before. now we have some rich data >> real quickly, $13 billion in revenue? >> yes >> and what did you find >> we found a lot of things and hopefully people will look at the article today. this article is partly about time but also partly about what is the role of the leader, what is the role of the ceo we found a number of things. time is indeed the scarest resource

ceos have time and who they spend it with is enormously challenging. there are so many things they're responsible for. they just can't do it all. so another critical thin found is a ceohat's effective needs a personal agenda. not just a corporate agenda that the standard corporate stuff but a personal agenda. where's the ceo himself or herself going to dedicate their time for the next three or six months what things do they need to be involved in to push along during the process? a good ceo would spend 40% of their time on thrsonal agenda a ceo that's not very in control might only spend 20% of their time on the things they should be working on. but you get pulled into dozens of things. >> i want to go back and just say the amount of time that you found that they worked on work days was only 9.7 hours.

that's less than 50 hours a week that shocked me. >> yes 9.urs is what they work during the week. but the average ceo works on 72% of all weekend days, an average of about 3.9 hours they work on 70% of all their vacation days. it's a very intense job. what we find is that ceos also need downtime. the whole way ceos protect time to get a decent amount of sleep and stay connected to their families, so going home isn't a pit stop before they go back to work all those things actually prove to be very important to success. we had access to these ceos because we work with newly appointed ceos when they first take over. and we spend a lot of time with

them and get to know them. we have a chance to talk intensely to them about the job. >> to this point, once you're at the very top, you do get to manage your timea way that most other employees don't which is to say you can organize around sleep, your family, exercise how are employees down the line, those working more hours 10, 11, 12 hours who don't control their own time supposed to feel and how are they supposed to tnk about that as a model? >> well, first of all, i think what you're not putting into the equation is an employee down the line has a limited job the ceo is in charge of everything all the management jobs. all the functional issues, strategy process, you know, dealing with crises.

what's overwhelming is all the ceo has to juggle. there are people that want t see them every second of every day. actually the amount of complexity of just deciding what to do, who to see, who should be in the r how many people should be involved turns out to be really challenging. and, you know, we have ceos that work more than 9.7 hours a day but we actually in conversations with these people, i think what we've come to understand is the ones that are not purposeful about protecting time for themselves and what we call alone time. a good ceo carves out time during worktime or other time where they are alone, there's nobody else ther they're not on e-mail. one of the critical things we found is e-mail is becoming

poisonous in managing large ornitions. it's overwhelming people people are getting copied. >> it's overwhelming everybody not just the ceos. >> say again >> i would say there are le sons we can all take from this. i think e-mail is overwhelming to anybody trying to do their job. >> it's absolutely true. and the ceos have assistants and the assistants will handle stuff, but what we're finding is there's going to be a new movement, i think, in companies to actually have a lot more rigorous rules about e-mail. when you can use it and when you have to reply and who should be copied and what are appropriate, you know, times and subjects ceos have to stay away from e-mail also because it drags them into the weeds. into operational stuff that actually they shouldn't be doing. they have direct reports that should be, you know, kind of driving most of the more routine things and they've got to stay at the level of strategy

one of the biggest findings from this overall body of work we've been doing on what ceos do and how they succeed is ceos can't think of their job as doing things themselves. they work primarily indirectly through others they have to -- and they need to have the ability to first of all, have great direct reports one of the most common problems we see with ceos is when they take over, they don't really change out enough of their direct report so their direct management team is truly excellent pound by pound that's their best leverage if a direct report isn't the best they could possibly be, this is going to just be a drain on the ceo so ceos work through others and they need to use tools like strategy and culture and organizational processes in order to get other people making their -- >> we got to run did you find anybody wasting

enormous amounts of time i'm curious if you saw somebody that said, wow >> zero among the ceos we studied. this is an intense job it's hard to imagine hopefully your readers will read the article. it's fascinating. >> professor porter, thank you coming up when we return, why one start-up is bucking the robo real estate trend stay tuned you're watching "squawk box" on cnbc

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welcome back to "squawk box. vc cash starting to come home in the last year. funding in real estate tech company up from $33 million in 2010 joining us is ceo of compass which raised $400 millioom softbank's vision fund $2.2 billion valuation last year came on the show years ago when you first starte it's always great to see a great success story. help us with this. we were talking about this off

air app a number of real estate firms have actually gone bankrupt over the past year. what's going on? >> the industry is in a blockbuster versus netflix cross roads. strungo provide value for the agent. thagent is the only entity that pays them i know this first hand my mom's been an agent my entire life i've seen her moving from firm to firm. >> here's the real question. you've been a beneficiary of the capital coming in. how much of this -- it's sort of like we talk about with uber somehow silicon valley or softbank or whatever is effectively subsidizing the real estate brokerage market right now. >> so i think the world woke up to real estate being the largest segment of the global economy. $216 trillion of assets were four times the size of public company in the world

we're the only company that is empowering agents. our only customer is the agent we want to realize their dreams. >> i guess what i'm trying to understand, though, is with all the vc money you've had, you've been able to effectively buy up big parts of the market, right you've been able to pick off some of the best agents. so my question is long-term, how long does that part last >> i think with the money we've been able to build software in support for agents that are selling to agents every day. then there's the technology model from what we are we build everything in house then the third model is what we're morphing into which is a platform model mortgage, title, insurance,

escr escrow >> but how much of this -- you're a success you got in some of the biggest agents in the country to link up with you how much of that had been you offering them deals? >> we're offering them support and time the averageagent grows their business 25% and we had 98% retention so if people weren't happy, weren't getting the tools they need then they would leave >> so there's no subsidy being paid to the agents >> less than 10% get a sub si did i. >> are you profitable yet? >>n the majority of our markets. >> and the question is, would you consolidate to try to buy up the rest of these guys >> our vision is to get 20% market share in the top 20 cities by 2020 right now we have 17 markets that we're in. we just launched seattle five weeks ago and already have 5% market share >> and if -- just big real estate question for those investors out there.

where would you invest right now? >> i would invest in san francisco and seattle. >> you still would >> yeah. job growth >> all right thank you. nice to see you. >> you as well >> love that blockbustervers --h you do not want to be blockbuster ever just that analogy, that metaphor unbelievable what happened >> so the analogy is to distribute your movies to the consumer, you had to go through -- rget your goals? it's not about quantity. it's about quality. 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.

when we come back, michelle caruso-cabrera just sat down with the ceo of ubs. what do you have coming up for us >> well, ubs banks more billionaires in the world than any other bank ghthose cls are carryingng me hier levels of cash than he's seen coming up on "squawk box" after this wice as much. that's a tough pill to swallow. exactly. so i started trading. but with everything out there, how do you know what to buy? well, i think my friend victor has just the thing for you. check this out, td ameritrade makes it easier to find the investments that might be right for you. like our etf comparison tool it lets you see how to one. analyst ratings and past performance... nice. td ameritrade also offers access to coaches and a full education curriculum to help you improve your skills. that is cool. and if you still have any questions you can always chat

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♪ good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square futures are down they're down down 210 down 50 on the nasdaq. here are some of the stories front and center rent-a-center has agreed to be acquired by vintage capital which will pay $15 a share in cash for the rent to own

company. rent-a-center had begun to explore options last september and vintage had earlier made offers of $13 and $14 a share. latest reading on moem builder sentiment this morning the national association of builders is out with its monthly index right at 10:00 eastern it's expected to come in unchanged from last month's levels and b.j.'s wholesale expected to pre its wholesale up to $17 a share. if it does price at the upper end of e the range, a market cap of $1.2 billion. went private in 2011 in a $2.8 billion deal if you remember, it used to be a public company we watched. confused because there's a b.j.'s services too which is oil and gas. and check this out yesterday's long shot win by mexico over germany in the world cup was literally an earth-shaking event. fan who is gathered in mexico

city erupted after mexico scored the game's only goal seismic detecters registered a false earthquake in the capital. geologists said the shaking may have been generated by massive jumping around across the city >> wow >> they were excited >> they are some super fans. >> huge upset. >> yeah, it was. germany. it was kind of exciting. i'm going to watch one of these some time.hink, eventually when there's not a golf tournament or paint drying. no, no, no, no i love it. i love the world cup >> let you talk just long enough -- >> just long enough to say something horrible which is not uncommon. >> to soccer fans. trade fears have investors on edge. ubc ceo sergio ermotti sitting down with michelle caruso-cabrera this morning. >> they have more billionaires

than anybody else for whom they manager money. ultrahigh net worth are their classic clients. they've got a great franchise there. and he says that when he looks at what his clients are dog, they're carrying high eer level in cash than average upper 20%. one ofhe reasons is the d 15%. potential for a trade war. >> i'm starting to worry not necessarily about the rhetoric and what's going on, but it looks very challenging moment tmomentum with action being taken. i'm worried will get out of control once somebody's going to announce something to then trigger a more serious issue so we shouldn't underestimate, you know, from a risk standpoint, i would say geopolitical risk seems to be under control. one of protection that could be

together with an axcceleration f interest with rate hikes by the fed or more of concern in financial markets. like what >> an acceleration of rhetoric actions being taken on protectionists so the next round. you know, coming from any side europe, u.s., china, you name it something that goes into a territory where the escalation of measures that are taken starts to, you know, impact business sentiment, growth which we shouldn't forget. in many countries we are at the top of a cyclical. >> cycle >> of the cycle. so i think there is not a lot of room if you look at asset classes. priced quite high across the board. expectations for business profitabilities are quite high so financial markets are not

ready for any major continuity in terms of growth and commercial ties between countries. >> how would you describe the markets at this point? are they frothy? >> they are not priced for perfection, but we are not far away from that i think that's, you know, across the board. i think that, of course, you can still see value in equities. but also there are expectation for growth and profitability being pretty high. if look at credit, it's priced quite expensively. if i look at other assets outside, like real estate and you name it. i mean, you look across the board. a lot of assets are on the expensive end. and the trend can continue so it's important from our standpoint to be diversified

there is no room for major discontinuity both from a trade relationship between countries or disappointments on end results and last but not least, a huge acceleration of rates particularly inthecould trigger a little bit more of a downturn in e markets. >> so he brought that up several times during the interview the potential for rising interest rates although in theory that would help banks like his. because of the steepening yield curve. but it could lead to dislocation in market ifs it were to happens >> did he clarify? is this what the individuals are telling them or what the bank sees or is it both? >> there are the people that say manage my money. then those that say i'm going to decide for myself.

those are the people that are carrying the higher revels of cash if they're going to invest, they tend to invest in their own business. >> so they see what's happening in the markets they serve. >> exactly levelscash's notable of the high >> what did he say about the summit with north korea? >> that was one of the geopolitical risks he was worried about that has for now resolved itself. they had gamed it out internally and said what if something goes wrong, what if there's something wrong with the command and control in north korea what if god forbid, there's something horrific that happens. you know, there's a 20% decline in markets in a single day or two. he's relieved to see the tension brought down >> michelle, thank you >> thank you coming up, tariffs trade. and the impact on the economy. sndg hassett istainby

he's going to join us right a after the break.

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welcome back to "squawk box. the futures right now down triple digits and not just one triple digit two triple digits. that doesn't really work out that way but down over 200 on the dow puts it below 25,000 tough to make headway, really, since the end of january it's been really tough

sideways, volatile joining us now kevin hassett it's good to see you >>ood to be here miss you guys. >> you're getting good at this when we took that before we went to break, you looked -- you were live, you had just the perfectly appropriate expression and sort of attitude going into that. to bring viewers back to want to hear what you're going to say. >> it's about to go downhill from there >> i'm worried about it. aei. aei. your former home of all places in the world that love free trade and are anti-tariffs, it's probably aei. so did you degrisagree with tha before you went to the white house? did you have to, you know, sort of i guess modify your stance to be in line with what the president wants to do here or is it different this time

>> well, first, i think that if you look at what the president said at g7 and what he says when discuss these issues with him, that he's very upset that we're in a world where there isn't free trade where the u.s. has no barriers and lots of other folks have big barriers. i was at the oecd had a conference in washington last week and the simulation of what if trump's vision becomes true. and it was good news for the world and good news for us the president is a good negotiator and he's out there, he's very insistent about getting reciprocal trade deals that's his long run objective. i think it's a solid one >> all right i got another angle for you here >> okay. >> you know, i mean, i'm going to ask a question. it's the most obvious question anyone would ask that is, aren't you sort of taking away from the benefits of the tax cuts by doing the tariff stuff right now?

that's like a knee jerk and obvious question but here's a way i'll ask it we just had seth on from the chief economist at ubs he said the fed needs to raise rates and is raising rates to cool down the economy because the economy is running too hot that would seem to me to say if you're ever going to do a trade -- if you're ever going to address these long standing systemic issues where we're not getting a fair shake and you got to slow down the economy anyway because it's too hot, why don't we do it now this is a good time to maybe tap the brakes and accomplish something long-term in terms of fairer trade how's that use that you can use that >> something that we both know and have followed over the years, 20 years identify been on "squawk," is when uncertainty is high that's difficult for markets. and it does depress activity a little bit i think we're going from an old world to a new world we're going toget to that worl

where it's a positive change in trade policy but the uncertainty right now is definitely palpable. you can see it and second quarter gdp now is well north so i think that you're right if right in the middle of the financial crise added some uncertainty over exactly how are these negotiations going to work out, then it would be harmful then right now the economy's got a lot of forward momentum. >> this is the headline in the times this weekend just the fear of trade war is straining the global economy it goes on to say shipments are slowing at freight terminals around the world prices for raw materials are rises. orders are being cut and investments delayed. american farmers are losing sales as traders hit back. >> we're in a period of uncertainty. and it's visible in some places. you can see it in lumber and steel prices and so on again, the president's long run objective is one all economists

should share like, think about all the barriers in china. think about the fact that china is stealing more than $100 billion a year of our intellectual property. when you modhahappens to us if we get china to change that policy, then you start out if you can get them to stop the theft. so there's a lot of positive that can be targeted through these negotiations i think we're all hoping cooler heads will prevail and this will end up at a good place. >> so kevin, i have seen some of the canaries in the coal mine that some of them -- jeremy. i don't know if he's right paul tudor jones some people are starting to worry about the level of debt that we have and, you know, the debt service that we're going to owe based on rising interest rates. and that's going to spell the end of this goldilocks scenario we've been in for awhile

are you cognizant of that? >> of course >> is that is good reason to think the market -- i mean, people are starting to use the "c" word again and i'm not talking about that other "c." i'm talking about the crash "c" word >> the fact is the government deficit is very high going north of a trillion dollars. it's both the medium term and a long run don't forget when the cbo does its budget, it looks at interest rates. so if you look at the cbo's latest projections, i don't want to give the fed advice i respect their independence then they are assuming an upward path that is one reason the deficits are going high the end t president said he's not going to accept a spending deal like the one we saw this year. and getting ahead of the curve on spending is the way to get ahead. >> you know, the other thing that the aei probably stands for, a lot of these things it seems like -- i know you want to work in the white house, but you

guys of all places you're worried about entitlements and the need for entitlement reform and i don't know it would be like a voice in the wilderness there if you try to talk about that, it seems. >> actually, i just would like to go beyond that a little bit my job as cea is to provide independent advice to the president about topics that effect the economy that i don't set policy on this or that. but i provide analysis and for sure if i look at the long run entitlement programs, they're going to need some changes to be sustainable. if you look at the soaring debt, that could be a negative for growth that's the kind of thing that obviously things are protected by executive privilege that's the job of the cea to point out. >> wanted to talk to you about the judge's decision last week in the case of at&t and time warner and really how the antitrust law

has been considered over the past couple of years there's been some calls including some by jim stewart to change antitrust laws. i'm curious how you think about big business versus small business there's a fascinating column out i was reading today where he goes into this whole math on what he says is larger companies simply have more power to compete against other giants to influence government policy in the long run to increase policies do you think that we need to change antitrust laws right now? >> you know, that's not something i'm an expert in as a chicago tile economist, i'm a believer in stiegler's view generally. if you're in an economy with creative destruction, then you should be less willing to have the company come in and regulate i by the time the government is regulating something, they're slowing creative destruction and if you look at the places that have been the most successful in our country, those are the places with the most

creative destruction you know, not to, you know, put out a negative word on facebook, e facebookmy older friends, we none of our kids use facebook. maybe there's a great business model for the long run, but there's so much change going on there, that means in the space economists would say that's the kind of space the government shouldn't enter. >> all right so you said 4% i wonder what it means for the year then. i don't know if we should listen to the atlanta fed you know what i mean >> it varies a lot i think the standard right now is almost a prs. but i think for the year we're looking a little bit north of 3% and i think that there's a lot of capital spending that makes that number look pretty good >> larry summers is going to say that was just your front end keynesian boost. get your answer ready for 2019 and 2020 that's the way they're going to justify it >> it's a supply side thing. it's going to keep going >> all right kevin hassett, tha you

>> thanks. >> the "c" word is cancer from the movie in 2015, documentary because it is a word that no one is comfortable with. and i hope some day it's not -- >> can eradicate it. ig we'r oo a we'll find out what j cramer is watching ahead of that right now a look at futures again. right now the lows of the session. w futures down by 213 points the nasdaq off by 55 "squawk box" will be right back. what about him?

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let us get down to the new york stock exchange. jim cramer joining us now. you tweeted a lot about trade. you love to stay on the individual stock stuff that's what you like best. sometimes you can't help it, right? >> exactly, joe. i feel like it's overwhelming the negativity is extraordinary. you can't pick up any paper without reading something about how the world is slowing because of the 25% steel tariff and some tariffs $50 billion product in china. it's incredible how everything is attributed to it.

there isn't anything attributed to higher oil and gas and problems with european banks or the idea that perhaps the rest of the world is not growing as fast as we are none of it matters all that matters is that the tariffs have ended the world as we know it and, you know, it's incredible how small they are, but i understand there will be a trade war. you read the papers and think let's send the market down 20% someone on said faang could destroy us i guess everything could destroy us maybe it's supposed to destroy us i see so many companies doing well i'm focussed on the companies. if you're focus order the s&p, i can see how you say it's wrong i have a harder time because i deal with the companies themselves >> can i ask you a macro question i like to talk to you. do you think the economy is at a place we need to orchestrate a slow down? >> no. >> i heard that earlier. >> we have a lot of slack.

rates, you know, when you look at rates they have moved up a lot. they're committed to a couple more but at the same time the actual wage growth is incredibly low. i know the tax reforms made the economy grow faster. but the last time i looked, that was good for people. i mean, i care about our country more than i re about switzerland and italy. i do i care about our country more than canada or mexico or argentina. you know, and unless it's the world cup. then i don't care because we didn't make it. >> yeah. they tend to -- i don't think that makes us bad people because a lot of other countries tend to care about their citizens more. >> aren't we allowed to celebrate we're having a stronger economy we want everyone else stronger and ours weaker and the s&p is higher is that the rap, joe >> i can see when it gets hot and, you know, rates are, like, 8%, 9, 10% i can see that's the way you do

it but that seems weird to say we need to actually try to slow down the economy now because we hit 2% inflation numbers. >> yeah. to me i think it's about time that it's better which is the way they do better and it just so happens, joe. >> supply and demand organic wage. >> i know. >> i think the globalists, joe, want our economy softer and the rest of the worlfaster because they'll feel better. >> it's only fair. >> they'll feel better. >> it's only fair, right >> i don't know. >> anyway, thank you, jim. we'll see you in a couple of minutes. >> i'm sorry, joe. >> i know. i know. >> i take it all back. >> all right, jim. big interview coming up on "squawk on the street. evan spiegel in cannes 8:20 help me meet a client's nee. is the fund built to sell

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merged with time warner. we have a lot to talk to them about. evan spiegel will be on later today. julia will be interviewing him we'll see you tomorrow and wednesday and flying back on thursday i'll see you on friday. >> where do you fly into >> nice. >> i'll have some rose in hand and maybe wear a beret or something. >> we got to go. see you tomorrow make sure you join us. "squawk on the street" begins now. i'm carl quintanilla with jim cramer and david faber we look forward to talking to evan spiegel stick around the futures down about 200 puts the dow on track for what would be five losing sessions. rm