good morning and welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm michelle caruso cabrera here with ed lee. he's a cnbc contributor. >> newly named, by the way. >> i was going to say. >> was that a couple of weeks ago? >> couple of weeks. >> the news. >> you guys actually did. >> is that a promotion >> sort of promoted. >> u. sums. equity futures sugg we're going to have a lower opening. let's show you what happened overnight in asia as this news came out that the u.s. administration is considering investment constraints on china. japan lower by 3/4 of a percent. hang seng over in hong kong lower by 1%. the shanghai composite lower by

1% it's already been a tough month for the chinese market any reaction in turkey ftse is off by 1%. italy and spain off by more than 1% at this 40hour let's show you what's going on with treasury yield. 10-year yield standing at 2.88 5 year is at 2.75. 2 year at 2.53. big story of the morning, trade news out of washington president trump issuing a warning to america's trading partners yesterday tweeted the following. he said the united states is insisting that all countries 5 that have placed artificial barriers remove those barriers or tariffs or be met with more than reciprocity by the u.s.a. trade must be fair and no longer a one-way street

separately "the wall street journal" reporting that the white house is preparing to bar many european countries. they could be announced by the end of this week i'm curious when you think of what happens to apple? they do business in china at some point if there's retribution. >> the chinese government against apple? >> we think of tariffs as a tit-for-tat. you do this, i do that kind of thing, but retalleyation can happen in bureaucratic ways as well it doesn't have to be levying u.s. tariffs we saw google invested in jd.com beijing could look at that, we don't like that investment we'll find a way to curb it or keep you out of it. >> mike santoli, bob pisani put up an interesting fact

small caps have outperformed if you compare the chinese market to the u.s. market regardless of the size of the underlying stocks, the chinese market has gotten hit far harder it almost suggests that investors believe maybe this is right, this is far worse for china than the united states. >> on a relative basis if you look at which country relies on world trade, china's the one if that's the scorecard, then on a relative basis the u.s. is better insulated that's clear a lot of other things going on emerging markets under pressure. no doubt about it. china came out and tried to easily quit at this overnight. >> yes front page. >> trying to support their economy and trying to -- >> a sign of -- admitting to stress if you're going to release -- >> yes however, what's the main

threshold in each country? if they're willing to take it, devalue their currency, i think there's a need, maybe that would have been your better first move that's more to the point of what we're talking about in terms of leveling the pace. tariffs are the wrong response to china the very last par a graph matthew klein gets to what we've heard from a lot of people you really want to punish the chinese? go after things that make it hard for the elite to come to the united states. he doesn't say this explicitly, but if you start to play out what they mean. >> come to u.s. universities. >> you wants your kid to go to harvard? sorry, not going to happen those are things that would really get change to happen at a higher level compared to what they do with that. >> would you advocate for that >> absolutely. >> one of the issues is we're stepping this up without any

intervening negotiations we're just tightening the screws without an end point or processiprocess. usually there's a diplomatic process through which they're ameliorated. >> they haven't been ameliorated through the diplomatic process through the last 30 years. >> with this administration i think it's fair to say is there a diplomatic process >> no. they've clearly decided there will not be. >> take that off the table >> absolutely. is there any diplomacy here at all? >> isn't that a problem? that's the issue the issue is ultimately as attractive as what you're talking about may seem in a very short term -- >> i was very extreme about what he wrote here. >> that's separating the children the point is at some level you

have to decide as a country what you want to be and what you want to represent and are you an open society, are you a closed society? what are you trying to tell the rest of the world about who you are? >> that our national interests, our national security, they're not going to control our technology, they're not going to steal all of the investments that we have made. that's what we're standing up for. >> we run around the world investing in -- not only investing, putting our businesses and by the way benefitting elsewhere. >> yeah. >> i think there's some misunderstanding we have been a great -- i -- >> the issue 2025. >> we are a great beneficiary so far of us being a global player. >> yes. >> wouldn't china be better off if they were a global player or not? >> yes but the question is -- >> how you get there that is the question >> how you get there. >> has the last 30 years worked?

has diplomacy worked has the strategic patients with china worked silence. >> it honestly go in there hold on, has it steadily improved yes. >> it's gone backwards. >> whether you think it's going slowly -- >> it's going backwards. it's going backwards. >> in certain areas it's going backwards. >> in crucial areas. >> in certain areas it's going forward. >> in crucial areas it's going forward. >> joe's not here -- >> that's why i think he should be here. wall street journal -- >> he'll raise the question. wall street journal says general electric is close to a deal to sell the industrial gas engines business for about $3 billion. sale could help streamline ge's power division which saw profits fall 35%

toshiba says the sec has completed the accounting probe with no penalty. roche's tecentriq boosts the survival rate for lung cancer. they expect to submit the test data joining us now, john lynch is executive vice president, chief investment strategist at lpl financial partners and >> slowdown in the markets over the last couple of weeks why? is it trade? is it interest rates what's the problem >> i think it's a combination of a couple of things obviously trade is grabbing the headlines. the measures that have been put in place do anything to derail the economic momentum, but

equity marked are here the other big thing is we've been in a vacuum our bullish strength is predicated on earnings growth here in the u.s. and around the world. i think that's the catalyst. >> that would push the market higher >> correct >> john, what do you think >> i agree with steven i think he makes a really good point. on earnings if you look at the s&p up 3, 3.5%, forecasted earnings have gone from 140 to 145 in operating earnings as of december 31st. 160 this year as of today. we see that sort of increase, the market has not kept up with proper expectations. >> i'm curious for either of you guys, with the flattening yield curve, is that something you're looking at in terms of, well,

moving out of equities into other instruments? is that a better way to think about the next 12 months seeing what's going on? >> obviously we're watching the yield curve. it tends to be one of the better indicators we're not seeing any signs anywhere else. while the yield curve is flattening, it's not flat yet. cash is a more attractive place to park the capital in the short term we're seeing them move from traditional fixed into selling >> john, the earnings growth you point out is the main reason they're here in the u.s. is that something that could exert gravity from u.s. markets or are we getting them that the u.s. is fine >> i think michael you made the point earlier small caps relative to the chinese market

for 2500 basis point spread between the russell 2000 so i think very much you look at small caps, you look at the dollar while the trade issues are currently weighing on people and sentiment, if you look at the top companies are funded and the way small cap responds china exports four times what we export the market has already voted and that doesn't appear too scary. if you look at leading economic indicators and corporate profits, those are all good. doesn't the market look forward four to six weeks? don't we know they're going to be good? is it already priced in. >> i don't think so.

the sentiment, the noise in politics and trade is setting us up nicely. people have forgotten about earnings they're focusing more on the headlines and that brings down expectations i think in three or four weeks things are actually pretty good. the starting point for earnings is already strong. i think we're going to surprise to the up side i think that's what's going to get people excited. >> this is awesome thank you, guys. steven and john, great to have you on. >> thank you. president trump this weekend threatening america's trading partners saying artificial trading barriers and tariffs would be met with more than reciproci reciprocity. joining us, co-founder and founder of actixios the debate got ferocious. >> i was not ferocious. >> you're feisty it's an important topic. the president egged on by peter navarro wants to go after

technology the fact is that the joint ventures do favor the chinese and favor the chinese government what the president is trying to do is sometimes haphazardly but certainly overall trying to put leverage on them to start evening out the playing field. looks at the leverage they've been applying on u.s. firms over there and to him stepping way back he feels like he has his mojo. he's at 45% at gallup. >> not dividing out republicans. >> that's everybody. 45%. the reason it's 45% is 90% of republicans are super enthusiastic about what the president is doing, and i do think there's a weird dynamic

taking place the more he says things that outrage his critics, they go more bananas which has the effect of making republicans want to support him even more, even if they don't like what he's doing at the border i would say this is getting more intense and the president understands that he sees in the polls, heck, it might be working even if the media doesn't like it, it might be working for you. >> nice to see you you had mentioned navarro earlier as someone who's sort of egging him on. how much of this is him versus sflump what is that dynamic like between the two of snem where one begins, one ends. >> this on china, trade, if it flows from trurk's gut insthipd. so navarro has a friendly audience there's no doubt navarro, wilbur

ross, they believe passionately that you have to go oof chiafte. the message is powerful. the president, all of the coverage that you're seeing, reading here, it is accurate he is definitely on his own more than at any point in the presidency he's doing the communications, he's doing the policy, he's sending out orders about executive orders when his own staff isn't even aware that he wants to do it and it's creating massive amounts of combination but i think his independent number has been higher in that. they're looking at earnings, moimt, they're looking at the possibility no matter how remote it might be with getting a deal with north korea they say, why is everybody worked up? things seem to be going relatively well. that approach is working well for trump. >> jim, the -- there was a lot

of talk last week that maybe the increase in pressure on china had to do with the absence of larry kudlow who is now back at work today is there any talk we may have a softening now that larry is back >> the president is all over the place. kudlow is in the compromise camp he's obviously much more pro free trade than the others so it will have an effect on the margin, but i think in the short term the president wants to apply maximum leverage on china. i do think he thinks we'll ultimately get a deal, we'll figure out a way through reciprocity, through some adjustments on tariffs to be able to both declare victory i think that's what's in the back of his mind in the short term it's all about applying more and more pressure to get more and more leverage. china passed a deal in the

system it's the lead story that catches the president's attention. it says, hey, i might be on to something. maybe my strategy is working maybe they are more wobbly than i am on this maybe they're more fearful than i am i think you're going to continue to see the dynamic until there's a deal or all out trade war. there's the drama inside the white house. where is he stacked going through, finding old comments he made where he was much more of a globalist than talking about his conversion a bit >> i can't stress enough that the president, unlike six months ago, he really is a man on his own. like when he finds an issue that he needs support or he feels passionately about, navarro is there and he listens to what navarro has to say on immigration, when he wants to

take a hard line approach, he looks at steven miller steven miller has his ear. kudlow has had his ear but he's kind of an island. this is not a staff that's backing up the kudlow world view because if you think about wilbur ross, if you think about navarro, you think about steven miller, they're much more trumpian they're not -- they're sort of establishment types that were loaded inside of the white house early on so the dynamic is right now there's no doubt that the navarro/wilbur ross wing has more clout with the president because they match his instincts. >> jim, we're going to leave it there. great to see you. >> take care. >> thank you. coming up, box office boom the "jurassic world" sequel roaring through the break. we're going to take you to the numbers right after the break. coming up, saudi arabia

lifts a ban on wen dviom'sring and that's turning the country's society on its head. we'll have all the latest on what it means for the country's economy next it lets you know where your data lives, down to the very server. it keeps your insights from prying eyes, so they're used by no one else but you. it is... the cloud. the ibm cloud. the cloud that's built for all your apps. ai ready. secure to the core. the ibm cloud is the cloud for smarter business.

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. ♪ ♪ any time we have an excuse to make a run, dinosaurs ruled the box office universal parent company -- comcast parent company and jurassic world fallen kingdom brought in $150 million. exceeding industry projections it was the second best opening trailing only 2015 jurassic world. it's set for june 2021 release i have not seen this one i have seen the movie next on the list pixar's "incredibles 2" mate

$80.9 million. they're making this weekend hollywood's fourth biggest weekend ever in history with 280 million total ticket sales >> the first one was great >> dash is still in it all of the old characters plus a couple of newbies. >> sequels, kids, animation. >> it wasn't father's day weekend. >> think of it as an escape. >> this week is your last chance for a toy run. all toys "r" us and babies are us are set to close on or before friday there are deals available.

discounts vary and inventory is limit the. end be of an era >> the deals were hard to come by so, you know, all the good stuff -- >> i thought you were saying you wanted to see the giraffe, the ferris wheel. >> i am so crazy that you remember when jeffrey the giraffe was up for auction a couple of weeks ago. >> yes. >> i looked at it in the same way that you guys -- we talked about this on the show before. i tried to get michael jackson's white glove before there are parts of the -- >> the actual giraffe? could you fit it in the apartment? >> no, no, no. you could actually buy giraffes, that was one thing that was up for auction or you could buy the i.p. for the giraffe. >> for jeffrey or whatever his name is? >> yes >> you could do commercials, books, animations. >> what did it sell for? >> i never saw the final price >> that's interesting. almost like a copyright.

>> yes so to speak. >> separately, brittain is facing a beer crisis. >> what? >> it's a crisis of carbon by factories that make c o2 gas in europe is shut down for maintenance all at the same time that leaves one c o2 factory to push the beer out of the taps. the shortage will also affect soft drinks in the u.k it's here and you feared there would be some kind of climate joke here insert here. i don't know what it would be.

>> there's an industrial gas it's a very constrained market there was a helium shortage. >> i'm aware of that >> you don't remember? >> do your children suffer from a helium -- >> no, i forget what it was. >> birthday party ruined. >> it left people talking with the high pitched -- >> you remember the sam adams with the nitrogen, started doing that with coffee nitrogen based beer. when you open it up it spills out. right. there are substitutions you can do. >> we may start drinking in a moment when we come back, what's working in the chip sector we'll start to work with an industry analyst with the winners and losers we're not talking about lays chips and the potential impact of a trade war with china. those go well with beer. as we head to break a look at friday's s&p's winners and losers ♪ ♪ ♪ benjamin franklin

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welcome back you're watching "squawk box," live from the nasdaq market site in times square. good morning welcome back to "squawk box" right here on cnbc take a look at u.s. equity futures. they are in the red. dow off 170, 171 points. nasdaq off 68 points s&p 500 off about 16 points. gasoline prices fell by six cents over the last two weeks

according to the lundberg survey the first decrease in the last four months. average price of gasoline is $2.95. however, analysts say that price is likely to increase as a result of higher oil prices that have gone up recently and especially on friday in the wake of the opec decision where they raised output but not by as much as people expected. >> meantime, shares of chip giant intel falling. it learned of a past consensual relationship that's better than the nasdaq composite index. we have chris coso, semiconductor analyst and managing director at raymond james. how are you? >> very good >> let's do intel first. you hear the news and you think what >> well, surprise to start from there, the -- obviously

they have to find somebody else. one of the problems for intel is some of the senior managers have left over the past several years. one of the questions is does intel go inside or outside they've never had an outside. >> that's not a play on the advertising campaign >> no. >> as a result, what do you think of the stock >> we've been marketing the stock for a while. things outside of this and the ceo search you know, what we think is the tough part for intel right now is, you know, more than 60% of the revenue coming from legacy markets, pcs, enterprise servers which are in decline what bk, brian kuzanik was trying to do was remake the company and grow the areas outside of there so far the fruits of that have not been apparent just yet. >> you think if a new manager comes in there they're going to take a completely different look at this. you know what, we don't want to do it this way that's the big risk, right

>> it's possible for example, one of the areas that they've been focusing on is memory the memory markets are very high so that market is doing well there's a question if you compare micron trading at a five multiple even if you're successful in a memory market, are you actually going to get a memory market >> before we go down and look at each of the trade workers, the trade issue, how important is the trade issue at all or is it? >> it's incredibly important it's one of the issues that's been targeted kind of in this. in toerps of how it plays out, i think it's incredibly difficult to figure this out in that, you know, every single day, you know, different piece of news moving in a different direction. >> i would assume you've already removed the takeover premium from the chip sector if you ever wake up and see front page -- >> right. >> none of these guys get bought by a chinese company. >> i was getting there, thank you, yes. >> you already knew that, right?

>> yes it doesn't mean there's still consolidation in the space from other players as well. certainly the chinese portion as well, yeah. >> what was that they were crazy buyers willing to take crazy things the chinese government itself had flowed down the outward flow this is one sector that they were very eager to try to control at this point, right if the chinese were able buyers, what kind of premium would you get? >> it's hard to say. i would say probably for the last three or four quarters it's probably been out because there have been deals. >> that was the big one. >> that was the big one that was stopped. >> aren't they also holding up qualcomm and xp deal >> the chinese they don't have to be buyers, they could solve these other deals where they're a big market player >> so far that's the only one that has seemed to be affected there was another chip deal. microchip micro semithat did go through. it appears that the chinese are being very specific in terms of,

you know, what they're using as the chess pieces here. >> in terms of the whole group, they've given up leadership a little bit the semiconductor capital sector has underperformed what does it tell you about the cycle? is it still as cyclical as it used to be >> i think it's cyclical it's a little bit different. the space in general is acting a little more rationally because it's generally slow growth more mature industry than it was ten years ago. from what i hear from my companies, they sound very good right now. usually from a fundamental standpoint the semis are usually a leader with regard to the business cycle and right now -- >> your favorite is nvidia >> it's one of the favorites it's a good counter for intel at this point because nvidia is doing very well in the data center's space, specifically artificial intelligence. it's one of the areas that intel didn't establish leadership in i think that stock is --

>> by the way, back to -- how far are the chinese behind you look at some of the chip makers over there. >> well, i wouldn't say they're behind they're not even really at the table at this point. one of the things china wants to do, 2025, without u.s. technology, it's difficult for them to get there which is the heart of this battle right now. >> which is why they had already made clear that these deals weren't even going to happen even before this news comes out. >> right right. right now there's semiconductor factoring. that's probably an area where china can get into the market more easily certainly over the history of semiconductors. sovereigns start in japan and korea. this has been national policy for a lot of different nations over time. usually in the memory space. >> okay. chris, thank you appreciate it. >> thank you coming up, saudi arabia has

lifted the ban on women driving cars and some projections say the kingdom's economy will get a boost of $90 billion over the next 12 years as a result. we're going to get a live report from riyadh. then at the top of the hour our guest host will be tom farley, former president of the new york stock exchange the ceo of dating app hinge. they just sold to match group, tinder is "squawk box's" favorite, right? ♪ you shouldn't be rushed into booking a hotel.

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welcome back to "squawk box. time now for the executive edge on this week's agenda. the u.s. supreme court will issue a couple of key cases in the business world one case will decide the legality of president trump's travel ban on five muslim majority nations another will determine whether nonunion workers are paying fees on certain public sector groups. the decision is due before the current term ends on friday. you'll hear a lot of that.

uber is in court in london today overturning a decision that stripped its license the passport regulation refusing to renew the license the ride hailing company has made several changes influencing its license including 24 hour telephone support and proactive reporting. it has changed senior management and apologized for mistakes. the appeal expected to take three days but the judge could take three days to decide. basically london is at stake for uber this week so we will keep our eyes on that story. >> that is one heck of a vested interest over in london. >> yes. >> the cabbies there from what i can tell, they finally, all of them, accept credit cards even though as of six months ago that was not the case quite a change. we're watching european auto stocks, the e.u. vowing to fight

tariffs on cars imported from europe on friday president trump threatened to slap a 20% trump on european manufactured cars tweeting, build them here. already off 2%, daimler down 2.5. bmw, peugeot and renault off almost to 3%. authorities have confiscated fake world cup trophies made of cocaine. >> yeah. >> police say they busted an organization which is translated as drug cups they used the world cup merchandising boom -- >> my kind of dealer >> you know what this means? it means it's industrial manufacturing. if you watched narcos, out of the jungle, all you have is is plastic wrap where would you get that industrial manufacturing >> you know what they're talking about? all of us, 3d printing.

>> of cocaine? >> of drugs. >> using some kind of mixture that they'll be able to -- like a paste that turns into a plas steek that melts later in water. >> all technology can be used for good and for bad >> right you can elicit things that drive technology. >> innovation. coming up, saudi arabia has lifted the last remaining ban on women driving. hadley is in riyadh. what do you have coming up, hadley >> reporter: women are finally taking the wheel here in riyadh. a lot of excitement here we'll go behind the seat with some of the women who are behind the wheel. next at&t provides edge-to-edge intelligence, covering virtually every part of your retail business. so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates.

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women in saudi arabia are allowed to drive that's after the kingdom lifted the ban over the weekend hadley gamble joins us live from riyadh hi, hadley. >> reporter: hey, good morning there, michelle. so it's a historic time in saudi arabia women finally hitting the road from riyadh and across the country. over 120,000 women have applied to get their licenses. i had the chance to catch up with a few of them let's listen.

>> today women in saudi arabia can finally drive. >> i am very, very happy. >> it's just the latest move by the country's crown prince to transform a traditional society into a 21st century economy. >> saudi arabia has come a long way actually with the new vision 2030 in place with his royal highness announcing two years ago, we've seen things accelerating significantly. >> reporter: today saudi women make up 22% of the total labor force with the government hoping to boost those numbers to 30% by 2030 while the government hopes putting women behind the wheel will cut down on an over reliance of foreign labor, they hope it means added economic opportunity. careem was one of the first companies to get on board aiming to sign up as many as 20,000 female drivers by 2030 you decided to become a captinah for careem why? >> why not

because i can do it. women have been ready for that challenge for quite some time because women have been -- they're slowly inat this grated into the work force i and by work force i also mean -- i mean in every -- every -- every field you see women now. >> reporter: it's breaking down barriers, isn't it >> it is. >> reporter: while the rapid reforms have finally put women in the driver's seat, questions remain over how quickly the saudi vision can deliver now all of this is, of course, all in line with his royal highness the crown prince's vision 2030. that's an attempt to diversify the country's economy away from oil. the question is how quickly are they going to move on this there are a lot of questions still to be decided in terms of women, their rights, whether or not they're going to actually be able to travel on their own and, of course, with regard to the guardianship and whether or not they're going to be lifted

they're so tough on this. >> it will do great things for a pro dufttivity, she can get ther >> reporter: absolutely. i think we'll see billions of dollars added during this. what's also interesting is some of the folks i've been speaking to, of course they want to get on board here. not just on terms of driving themselves to work they've already put women drivers on the road. their closest rival here is uber they haven't managed to do that quite yet. of course this is something in the process. one of the things in saudi arabia that's tough is sometimes the regulations, they're not clearly stated you have to wait awhile to see what's going on. there's a lot of noise on social media. this is something the government and the regulators are behind. >> got it. thanks, hadley >> it's very cool. by the way, huge explosion in

driving schools. >> in saudi arabia >> you would think but also flip side which people haven't talked about, drivers are losing their jobs. so when i was there, one of the things -- you'd speak to so many females who are executives in businesses who have drivers. they need the driver to get to work every day it's going to be interesting to see what happened. >> probably increasing car ownership. there's a market for the sector. >> these women own the car and had drivers. i remember speaking to a woman who said i've owned a mercedes for ten years and never been able to drive it >> immediately that's an effect on the economy >> sure. meantime, i want to get some parting shots from our guest host ed lee. "new york times" media reporter, cnbc contributor help us understand what is going to happen this week in the

battle over 21st century fox's assets comcast, disney on the other side >> disney's got the pole position they're the deal that the fox board has basically accepted and waiting for the date for them to vote comcast is -- you should expect them to come in with and gress counter counter bid. i would look for them to potentially team up with someone else on this >> like a technology company >> could be. or could be another investor the reason is ultimately what comcast really wants, really like the sky business. that's a separate deal they're bidding into the star india business which is a huge thing for fox that a lot of people don't discuss. it's $400 million yearly it's a big business with a streaming service. that's what they really want >> is it possible we hear from somebody that makes us do the

same thing that when we heard that amazon was going to buy whole foods? jaw dropping tech company that comes on and says we're going to transform what we do this is the way we're going to do it. >> there's a whole thesis around silicon valley silicon valley hasn't wrapped their head around what media companies ar expensi expensive. i think they're figuring it out. if they make that leap to, oh, there's an asset to owning this. they could make that jump. i don't think they've come there yet. >> could you talk about the emotional component of this or the personality component of this because when rupert murdoch decided to accept the new iger offer, which made sense. >> it's higher >> you would take a higher offer. except that you did it with such a loving embrace, is that a -- i mean, and he's clearly said i want to be in business with bob

iger >> right >> was what a signal to say we're not into this comcast thing at all was it please leave us alone completely or just come with a higher bid and by the way, brian roberts, we will then love you. at what point do you switch gears? >> rupert murdoch drives the the seat of his pants. he has a relationship with iger that he doesn't have with roberts. end of the day it's going to come down to what's bigger if comcast comes in with another bigger bid, it could end up, yes -- >> if your shareholders are the largest block of owners of walt disney company forever, in theory it goes higher. >> right a single class share where you have a stake versus a dual class share where you're not as --

have as big a voice in >> can we ask -- when is the winner the loser meaning at what price does this become so painful that there's a winner's purse element to this >> i think it's at the limit already. i mean, they have an easier balance sheet where they can leverage higher. the way that media companies versus the telecom company or cable company, they can always leave it a little higher here's the thing there will be a loser. that loser will still want to buy something. that's the other thing to look out for. >> thank you great to see you, sir. news just in from harley-davidson. company says it will not raise manufactur manufacturers retail prices to cover the cost of new eu tariffs. the star riffs which have jumped to 31% will add about $2200 to the cost of the average motorcycle exported to the eu from the u.s

but adds that could take up to 18 months to execute year to date already down 20%. we'll watch to see if this news has effect in extended hour trading. tom farley, president of the new york stock exchange, he's going to tell us about his new gig after the break. he is here we're going to talk about it in st ltlbit. the first survivor of alzheimer's disease

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trump's new trade chatter. the white house reportedly working up new trade restrictions we're going to get the latest on what's in the works and how it will effect your money

opec's decision to raise oil output has oil on the move what to expect at the heart of the summer driving season. plus the world of online dating with facebook's plan to roll out dating features, dating apps are getting ready for an online battle. the ceo of hinge is going to join us as we begin the second hour of "squawk box. ♪ live from the beating heart of business, new york city, this is "squawk box." >> good morning. welcome to "squawk box" on cnbc. i'm andrew ross sorkin with michelle caruso-cabrera and mike santoli. dow looks like it would open off 168 points down. nasdaq about 68 points down. s&p 500 down about 15 points

we've got some headlines affecting the market this week the vote had been scheduled friday for immigration bill. also, amazon is going to be offering discounts nationwide at whole foods for members of its prime program. it will roll out nationwide, that's going to happen tomorrow. take a look at shares of campbell soup. follows a report in the new york post saying that kraft heinz may be interested in buying the company. they've been interested in that for some time. everyone said talk to the hand they believe campbells will look at options also says general mills could be an interested buyer as well. >> there have been changes at campbell soup. general electric is close to a deal to sell its business to advent for about $3 billion. the sale could help streamline

ge's power division which saw profits fall 45% last year intel being downgraded this morning do neutral at nomura price target, $55. and the dow managed to avoid breaking a record by getting the gain on friday mike has more on the path of the markets heading into the second half do you know the path, mike >> i don't but i can characterize what we've seen so far. here's what's interesting. in a very unusual trajectory, you had basically the best start to january in three weeks in something like 31 years. you had the sharpest drop from an all-time high in 90 years that was into the early february low. then since then it's been this grinding recovery process. we're still kind of range bound. this chopping back and forth and the trade issues

all of that come together in this kbased on what's happening through this date so far in 2018 is 8.4%. that's right in the zone of the average annual gain over the long-term. it doesn't mean you're going to just deplecomplete that. but it does tell you that really there's nothing particularly unusual about where we sit right now. even though it feels like the market has been stuck for awhile it's an uneven market. we talk about the big tech out-performance which has been a conspicuous thing. however, you're also seeing retail and transportation. so it's a selective market the uptrend longer term does remain intact. the dow on friday had its 500th day without closing below its 200 day average. the bulls, it's their market to

lose it doesn't seem momentum has fallen that's why earning season is going to be -- there's going to be some suspense there >> all right >> thank you want to get to our guest host this morning. this is exciting because i don't think he's been physically here before you might even be getting a rash i don't know what's happening. tom farley is here but importantly in this case the former new york stock exchange group president. we've known him for a long time but we've never pulled you in. >> i've never stepped foot in this building. >> how are you feeling >> it was weird i had butterflies. security looked me up and down but i've always had tremendous respect for nasdaq the benefit, the hatfield and mccoys competition really truly did benefit the listing companies. i woke up every day trying to

kill them. the fact i respected them made it more fun when we won. but it felt a little weird walking in today >> when you look at the nasdaq, does that upset you? >> what do you think the nasdaq? >> looking at the index. >> drives me nuts. >> like a painful -- >> yeah. >> why >> the nasdaq index, you guys talk about it all the time every day. i was like they can is not a tech index, they have bed bath & beyond it was free branding for my competitor >> we have so much to talk about. but let's start with what's in the news which is just this potential for trade war with china and what's going on. what do you make of that >> oh, man i think -- go back to the section 301 report from last year which said china condones lying, cheating, and stealing, and taking our trade secrets

those are real serious allegations. the concern i have is the way to deal with that isn't to force china to buy our goods the way is to focus exclusively on the fact they're willing to steal our ip either directly or indirectly. so i've been concerned about how we're handling trade with respect to china but i'll tell you this report that came out in "the wall street journal," came out over the weekend is actually encouraging to me. that's a more direct response to those allegations. >> so not committing china to buy u.s. technology based companies is okay to try to stop the concerns you have when it comes to stealing ip, et cetera. >> exactly maybe take it to the next level which is that's the report in "the wall street journal" is about companies and curtailing their investment but also individuals and buying property.

it would be a heck of a lot easier if we did that with other countries. not just the united states going alone. i'm saying if we went into china with a coalition, right now we're kind of ticking off all of our potential friends. so it'll be hard to come back together >> what would happen if the administration said to you when -- saying those that want ipos in the united states, you can't do it. >> that was a concern to me. the biggest ipos we had at my time there were chinese companies. it's already happening you're seeing fewer of the great tech companies on the tech exchange five years ago they would have been -- >> tencent >> but is that a function of the political landscape or a function of deeper -- i don't want to say better but improved capital markets there? >> it's both but it's definitely at least

partly a function of politics. no question. >> not just ours, but theirs too? >> exactly the chinese government is whispering to these companies, hey, we really want to see you go public on the mainland. if you can't go public on the mainland, you need to look at hong kong. >> could you ever imagine a scenario where a chinese company that's listed here decides or is told -- actually you know what? leave that alone could you move yourself to the mainland >> it is very difficult. and it would be hard to foresee. because you'd have to tender for essentially all the shares you'd almost have to buy yourself and pay every shareholder here in america. i don't foresee that happening what you can do is see the flow kind of drift down in the u.s. a. >> is there anything in your listing standards that would have prevented them from getting

that largest pay package ever on an ipo does that play into listings at all? >> i doubt that. my -- at the new york stock exchange, i had people coming in every day saying could you change your listings rules to prevent this behavior or encourage this behavior or make sure that 50% of board members are women. or make sure pay packages have a certain median pay, ceo pay packages with relation to the median employee. we took the view, it's not our job to provide the choices the businesses make. pay packages would not have been allowed under our rules. >> we have about a hundred questions. and we have two hours with you we have one more in the ipo category which is now that you're semireleased from your life at the new york stock exchange, can you speak to what -- and we just had hadley on from saudi on

driving. everybody wants to know what's going to happen to this aramco ipo. every time we thought we were getting there, it was one step back what do you think is going to happen >> i am released from chasing ipos every day but i still want to win them for the new york stock exchange it hasn't left my blood. and the saudi ipo is no different. i want to win it as an american. i spent four years chasing that from the first time i started our friendship when oil was at 50 which wasn't too long ago, there was concern that saudi aramco ipo would have happened and the headline price would have disappointed mohammed bin salman and that would have been to exist 2030 vision. now oil's at $70 it's very likely in my mind that his royal highness wakes up -- >> it's price not transparency the big question was can they

list at all. >> and the transparency isn't welcome in all corners there's a lot of people in saudi including some ministers who aren't all that excited. now that oil is at 70 bucks, i think it's much more likely that mohammed bin salman says let's do it. and figure out those transparency issues. >> final one on this issue how long can they go before they get a cash flow issue on some of the commitments they've made to all of these different private equity and other asset managers around the world over the past two or three years, it's whether they've given money to softbank, whoever it is, at some point some of that relies on this idea that they're actually going to have this big payday. >> right well, or they're going to have much higher cash flow.

they've been involved in getting the price of oil from $50 to $70 which has relieved many cash flow pressures >> so they could decide -- >> yeah. it's not -- if you look at the balance sheet, it's not going to make a huge difference. >> all right a lot more from tom throughout the next two hours also coming up, markets are under pressure this morning as trade tensions grow. we'll find out what you need to be watching as we head towards the opening bell and ahead, expecting an increase from opec we'll discuss what the moves ayan for your wallet st tuned you're watching "squawk" on cnbc

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welcome back to "squawk box" this morning take a look at the futures we are in the red this morning off at least triple digits here. dow off 142 points s&p 500 off about 12 points. let's turn to the broader markets now. james paulsen. good to have you here. let me start with you. is it trade, is it interest rates, what's driving the market

at this point? >> we are a good five months in. earnings of course are booming 24% in the first quarter and the estimates are rock solid for the rest of the year at around 20% but that kind of earnings growth doesn't tend to get rewarded because the market tends to not see that as sustainable which, of course, it isn't at least at the market level 7% to 10% is more like it. but the main issue is, you know, the fed is tightening. financial conditions are tightening and that's the interest rate component of valuation so we are approaching a late cycle environment. we may not be there, but we seem to be heading in that direction. and we have this policy divergence between the u.s. and the ecb. that's driving the dollar higher that's making financial conditions tighter and that is not a recipe for evaluation expansion

especially when you add trade to this so it's just an environment where the market has to sit there and of course it was -- >> what's the ultimate breakout, though is it higher or lower? are you waiting to see what happens with the market? >> if by then the fed is nearly done with its tightening cycle, then it's all systems go then you have decent earnings, not great earnings, but decent earnings and you don't have the pressure on pe's anymore but if by next year the fed is saying we're not close to being done, that's a much more negative scenario. you lose the earnings but still have the liquidity condition we don't know yet. i think for the next six months or so at least, we're stuck on

hold here as the market grows into its valuation >> jim, you've been a little bit on the cautious side, as well, thinking the market might be capped by some of these issues you've also been pointing out positioning in the market, the way tech has been behaving a lot of other people look at that stuff and say, hey, look. the cyclical stuff is working. the sectors you want to lead are leading. how do you square those things >> well, i do think there's increasing concentration which you often see later in a bull market going into a limited number of popular names particularly the technology names. i know among the top quintell performers in the s&p 500 in the last year, if you just move amazon and netflix to technology, they account for almost 60% of the winners portfolio, if you will, in the last year.

and the top of the dotcom, they accounted for about 68% in the trailing years so it's fairly concentrated performance. you know, i think one of the big things as we look into the second half, we have been dealing since the presidential election big rising earnings expectations, accelerating growth here and globally and we've been doing that at a time when inflation is picked up, when cost pressures have picked up. when the fed has had to raise rates. so far that's been a stalemate if you look into the second half, now the confidence is already high that earnings are already high, the growth is already expected to be pretty good. i doubt that we're going to get a lot more positive surprises on that front but what we may continue to get a continued cost push inflation

and interest rate pressures. and if we now have no positive surprises but we still have the same pressures, it might get more difficult for the market here in the second half. i'm still as you say a little cautious i don't really see a bear market, but i think it could be a struggle through year end. >> jurrien, it sounded like you were kind of describing the downward pressure of fed tightening being offset by increased earnings growth coming from the tax cut i know it's hard to do the hypothetical, but there's a lot of conversation about the wisdom of the tax cuts. so do you think they're somewhat saving us now because it's growing so quickly and it's allowing the market to stay at 2,750 for the s&p? >> i think that's exactly right. the tax cuts, whatever you think of them, they were a very well timed antedote for what really are classic late cycle pressures.

so rising inflation as jim mentioned. a tightening fed tightening conditions. it's market math right? if the pe comes down which it typically does during this phase of the cycle, then if it goes up 25% that really bails out the market that otherwise would be a lot more expensive if you look at emerging markets, they're making new lows because they are following the late cycle script perfectly because they don't have the earnings offset to count on. so the u.s. is really the star of the show right now. simply because of the strength in earnings. as jim said six months from now if you lose that earnings boost and the fed is still well on its way to tightening towards 3.5% or so, we're going to lose some of that.

and then maybe some of the downside pressure will start to emerge again, i don't see a bear market either, but i also don't see the recipe for a breakout on the basis of strong earnings growth. >> all right our 7:00 a.m. guests are meh thank you, guys. good to have you coming up when we return, side jobs in america what millennials are doing for extra cash later, the business of match making the ceo of hinge is talking about why match is making a big bet on the company stay tuned

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slightly down from last year's 115 million americans are planning a cookout with family it works out to about $75.35 per person >> there are few things better than a summer barbecue >> here's my question. we have a guest host i'm going to ask are you planning on celebrating? usually you get to -- you sort of leverage the weekend and then you get usually a day or two into the holiday now that it's a wednesday, are you going ahead of july 4th? >> he's taking the whole week. >> i'm like a new relaxed man now i'm not in my old job. i'll take the whole week >> do we know what the thought process is >> i think it's going to be just kind of a light week in general. >> right >> i like when i know what the deal is. because if it's on a thursday or a tuesday, you know you got -- >> it'll be really slow.

jobs number on friday though >> that's right. many americans have a side job to support their income. 37% of americans have a side job. that includes more than 50% of millennials. most popular job includes home repair, landscaping, online sales, crafts, and child care. about 60% say they do it for more income. 38% say it's necessary to meet their regular living expenses. it earns about $200 a month. coming up, oil is on the move after last week's opec decision where you can expect prices to be at the end of the year is coming up next as we head to break, look at u.s. equity futures at this hour suggesting the dow would open 165 points lower from some unexpected friends. these zebra and antelope. they're wearing iot sensors, connected to the ibm cloud. when poachers enter the area, the animals run for it. which alerts rangers, who can track their motions

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well about 64 points. and the s&p 500 off about 13.5 points among the stories front and center, harley-davidson reacting to the imposition increase in tariffs of motorcycle exports. it says despite an increase in eu tariffs to 31%, it will not raise prices on motorcycles intended for export to europe. inste instead, it will absorb the estimated cost of about $2200 per motorcycle to shift production of those to international facilities from the united states. now the stock down a little over 2% this morning. but also it's going to create some other questions if you're going to start manufacturing outside the united states whether the tariffs are working or not we'll also get the numbers on latest home sales this morning. the government will be out with the report at 10:00 a.m. new home sales rose 9% last

month. jeust one earnings call this morning. cruise operator carnival they're expected to post 60 cents per share on revenue of more than $4.3 billion if it meets those numbers, the profit would be up about 15% from a year ago. after soaring up 42 cents a gallon, gas prices ticked down average is $2.95 at the pump experts say don't expect the trend to continue. opec increasing the output of oil but the increase was not as much as wall street had anticipated last week and the market responded with higher prices which refiners are going to pass the price on let's talk more about opec and oil and where the prices are going into the heart of the summer joining us is john kylduff good to have you here. >> thank you

>> can we re-establish the chronology here. last week there's the big meeting. we see the scrum brian sullivan is running his butt off >> great job by brian. >> they raised output but not as much as thought. so the price went up dramatically late last week. there were more meetings between who said what and now there's more supply coming up. >> it was opec week. there was this seminar where shale producers attended friday was the big meeting of producers. now going into the meeting we've been tantalized by russia you get 1.8 million barrels. >> was there a meeting on saturday as well many. >> friday they come out with this announcement. that was very weak all they said was they were going to adhere to the current deal and quota sort of eyeing or alluding to

the fact that some countries would up their production to get the spec overall that was all to save face for iran who wanted no changes to the deal, no changes to output saturday was the big day that's when the saudi minister said they were going to put a million barrels more on the market >> so that changed expectations from friday. >> from friday squishy announcement to saturday's early announcement >> i now see wti is up but this is now what the market originally expected. more supply, hence what happens to the price of wti. >> and one thing that went uncovered on friday was that another example of there being blows to that. had a transformer blow up that cost the market 365,000 barrels

a day. >> wow >> probably through the end of july. >> because of electricity issues >> yes electricity and maintenance. and oil can blow up sometimes because it's combustible things happen. but that's been sort of the story here global supplies have tightened markedly because markedly we can go into the nightmare story of what's happened there but last week new problems in libya again affected 700,000 barrels again. that keeps happening they come back online and go offline. but it'll clear. i think if all things were equal and we weren't having these serial issues, we'd be heading a lot lower in reaction to have the saudis promised us on saturday until we can work through other issues, we'll be supported it could get quite tight maybe we head higher to the extent these canadian barrels are missed

we have no spare barrels in oklahoma that the wti contract trades against >> john, nice to see you again we were talking earlier about saudi arabia and the saudi aramco ipo in particular where do you think the saudis want to see oil? brent is at 74 bucks a barrel. what is the right number for them, their country, and an eventual aramco ipo? >> they're hoping for 2019 on that ipo but i don't think it's going to happen i think right -- >> you don't think it's going to happen >> no. >> in '19? >> i don't think it's ever going to happen. if it ever happens, it'll will in saudi arabia. >> all right explain this to him. he's been spending years trying to get the ipo here. >> why do you say that, john >> i don't think they have any appetite for the kind of disclosures that our laws and exchanges require. >> because the balance sheet of

the company and the country are like this, right >> yeah. >> they're pretty far down the road with respect to having financials that could be relied upon, audited by big four auditors i think the points you make are valid points it comes down to mohammed bin salman he said in his vision this is what we're going to do i don't think the world would look as a saudi-only ipo as an iop. it would require him stepping back from his vision >> did they ask you to lower their listing standards? >> no. >> there were reports they asked -- >> i'm not going to go into additional -- in-depth information to conversations with them. but just because it's been misreported, the answer to that is no. >> but to your question about the price, it's obviously right around here. because they are reacting to this price elevation and not just from president trump's tweets, but also from

the indian prime minister and china. they've come to recognize -- mohammed bin salman has changed a lot there. they are recognizing that screwing consumers with $100 barrel oil is not good it drives competing fuel sources. they want to stay in the game because right now the other fuel sources as much as we love them and maybe they're green, you can't compete with how much the distance of gasoline gives you there's no competition for it particularly as it relates to transportation so as long as prices are here and they can sort of get along and we can all live with it globally, this is around the area they'd like to see it stay. >> i mean, the price has weathered this whole period. you know, that would suggest to me that it's a bullish picture the way the market has acted, i mean >> absolutely. there's a sense the market -- it's not a sense

global oil spuppliers are tippig lower. we're clearly in a deficit situation. we're consumering more than is put on the market. right now it's a bullish setup the problem you start to have, you get to a big bull run in oil. it seems like a championship team, basketball or something where they shoot it from the three point line at the last second wins the game. where did that come from >> there was a big thunderstorm that rolled through the area boom, gasoline prices up another 10 cents those are the things that start to happen. in a market we're in right now, this transformer, you know, where did that come from right? >> okay. thanks, john >> thanks. i love this little debate. coming up when we return, looking for love online. the ceo of dating app hinge is going to join us to talk the match making game and why match

is taking up a stake in the company. wall street not feeling the love in the morning but maybe bulls and bears will make up and play nice. we'll see. dow off about 167 points "squawk" retnsn montur ia me what do advisors look for in an etf? i tell clients, etfs can follow an index, but which ones target 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. at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly.

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welcome back to "squawk box. the online dating match group acquiring a stake in hinge a relationship app that caters to millennials. joining us to talk is hinge ceo. to those of us who are married, explain -- >> all of us >> i'm married too. >> good to know. it's complicated asking the questions of the dating apps there's a question about whether you know too much. help us understand how hinge is different from all of the others >> yeah. so we are an app for millennials looking for something more serious than sort of what you might find on some of the swiping apps >> when you say more serious, you mean, like

what are you saying? >> marriage >> they don't necessarily want to get married right now but they're looking for something more authentic and real >> other things are a one-night hookup situation >> not necessarily more does come out of them, but i think in general people on hinge are much for intentioned they're looking for connections that are going to go somewhere >> what's the distinction? what do you have to do that's different physically on the app? >> so i like to say we don't differentiate on one single simic like it's swiping but someone has to talk first or it's swiping but this. we have a team that's focused on our users getting out on great first dates. everything we do is different from the fact we don't have a one cliek sign on. it works more like instagram people are posting content, answers to questions, photos with captions. you can engage with that and because people are much more selective and use it much more

interactively, we can learn their tastes better and match them up with people they'll like over time. and those conversations actually lead to great dates. >> how much does it cost >> so we're about $8 a month for premium. but there's a free option. so you can use -- >> what's the difference between free and premium >> being able to send an unlimited number of likes is the main thing also able to filter with religion, ethnicity, that kind of thing >> what's the difference between freebies versus paid >> we're about 85% paid. >> are you trying to scale that up is there advertising on both >> we don't do any advertising >> even on the free version? >> even on the free version. that's right. >> do you plan to? >> i don't think so. but, i mean, long-term, perhaps. it's not something we're focused on all subscription revenue.

>> from a cold-blooded business perspective, locking people into a perspective seems you're getting these customers away from you >> yes but then they become billboards that tell their friends of us. right now we're 80% word of mouth growth >> not a problem yet >> congrats on your partnership with match >> thanks. >> i'm a big fan of the entire match business and management team the elephant in the room for me is facebook. you know, facebook had all these privacy issues by and large, nothing happened their stock last week was at an all-time high. consumers don't seem to care is dating different? >> is dating different in terms of are there privacy concerns? >> yeah. so in other words, i expected there would be greater privacy concerns from consumers with respect to their general use of facebook really hasn't happened in a major way. they've announced they're getting in the dating space.

that's the height of sbi ma tiny >> i'm not sure, but i would say that among our demographic which is millennials they're using facebook less and less it's becoming less and less a part of their lives. i don't think of it as a threat to our business. because, i mean, they're already not using it so i don't think they're going to use it for dating >> do you worry that other -- like a snap getting into this business somehow >> yeah, i don't think so. i mean, we'll see. >> what made you decide to do the deal with match. why take the money and give up the stake and control? >> that's right. so we're getting to a station in our business where we really want to grow and start expanding internationally. we feel we hit the formula we're finding our app is 14 times more effect i have than the swiping app in terms of getting people offline three out of four dates people

go on, they want to go on a second date. we feel we hit the formula and we want to scale it up match is the clear partner for us in terms of bringing that to more people. right now we're really just focused on the metropolitan areas in the u.s >> i ask this with sincerity and good will, are you now a wealthy individual because of this deal? it's okay to say yes this is cnbc we celebrate capitalism. you have created something. >> so the way the deal is structured is that they right now this has all been primary investment for them to get up to this point and so now they have an option to do a secondary and actually purchase the remaining shares as part of the deal that hasn't happened yet. >> did that answer my question >> kind of not >> on paper he's wealthy but not in his bank account. >> awesome thank you. >> congratulations >> appreciate it coming up, a monster weekend at the box office. details after the break. and to top of the hour,

former trade representative robert hallman will be our guest. here are the futures for now dow would open down 153 points but i'm not standing still... and with godaddy,

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full-on video. i like our video "jurassic world" brought in $150 million. it was the second best opening for a universal movie. the next installment due for june 2021 release. also "incredibles 2" made an additional $80.9 million combined totals of these two movies mark the weekend as hollywood's fourth biggest weekend ever who said the movies are dead >> they're not let's look at stocks to watch this morning intel downgraded to neutral from buy at nomura. they cite the leaving of the ceo. stock is off 2.5%. microsoft upgraded -- they have

transitioned to a cloud based company and expanded the market by doing so. gray television is buying raycom media. it is an employee owned tv station operator and one of the largest privately owned in the u.s. morgan stanley is still bullish on the estee lauder prospects. the stock is higher by about 58% over the last year let's talk to our guest host from far point ceo and chairman tom farley good to have you here for these two hours. so you are now in charge of where people give you money so you buy a company. >> it's a growing asset class if you could call it that $15 billion raised in the last year and a half. >> aren't things really expensive right now? >> first of all, i'm not really a macro guy. i'm looking for relative value

in terms of expense, i mean, the forecasts for s&p earnings next year is around about 180 so that's 15.5 times pe. that's historically not all that high looking for relative value when i go invest what i raised two weeks ago. >> what's the mission? you're trying to buy what? >> financial technology. and investors love financial technology rite now. because of the increase in the ame amount of data and financial technology companies are providing low cost solutions that are enabling business to become more efficient. which is a need now more than it's ever been >> the big read about softbank and how they're just -- sounds like they're throwing money at people without concern for valuation, without, you know, long-term performance meaning they're not going to give them a hard time. doesn't that provide a lot of competition to you when i ask, aren't things

expensive, you're dealing with players out there that don't have traditional valuation metrics in mind when they buy. >> we'll have a different approach than softbank they have a hundred billion dollars. in addition i'm willing to go in and be the ceo of a business we acquire if it's in need of one we're looking for deals where the seller is only selling 50% and they want to know it's an owner they can trust and has credibility. in some ways we may partner with a softbank we may buy a business together we're not looking to get into hypercompetitive auctions for businesses that have great ceos that are selling 100% of their -- >> fin tech, financial technology applies to this stuff. the plumbing operations back office side of it which is reducing cost for big

institutions there >> we're starting in those two areas you described because fin tech includes others as well really the plumbing bisss, data companies, enterprise risk companies. but also payments. the difference with payments is they are a lot more expensivexp. you look at the multiples of vi visa, mastercard, square they're justified because the long-term growth is 20%, 40% growth on earnings so we're willing to pay a little more if we go into payments and you have to look at it differently. those are the two areas we're going to focus >> and he's sticking with us for the next hour on "squawk box." >> more to come with mr. farley. trade talks and the market's response former deputy trade representative robert holleyman is our guest dow up about 150 points now. we will have more on this morning's market move. "squawk" returns in just a moment are you done yet?

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a new shot in the trade tussle the white house planning to hit china with new trade r restrictio restrictions trade rhetoric heats up. app full market rundown straight ahead. and new this morning,

harley-davidson responds to tariffs from the eu. we'll tell you what the motorcycle maker said 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. welcome back to "squawk box" right here on cnbc live at the nasdaq market site in times square i'm andrew ross sorkin along with michelle caruso-cabrera and mike santoli becky and joe have the day off our guest host, tom farley who's here in the nasdaq just feeling the rash former president of the new york stock exchange the current ceo of farpoint acquisition group maybe getting ready for a big acquisition here are you allowed to break that when it happens here okay it's on camera now we heard it. just wanted to get the

commitment up front. wanted to check on the markets now. we are in the red. it's a little bit better than it was before, but not great. nasdaq off about 60 points now s&p 500 off about 10 points. also show you the treasury yields we'll explain what this is all about. 10-year note 2.884%. we've been talking about the aramco ipo which we had a debate about all morning. right now if you look at wti crude as we flip the board around, you're looking right now at $68.90. here's what's happening this hour check out shares of campbell soup higher after "the new york post" reporting kraft heinz may be interested in buying the company. general mills also could be an interested buyer "the wall street journal" saying general electric is close to a deal to sell its industrial gas engines business to advent for about $3 billion the sale could help streamline the ge power division. and shares of kroger, they're

lower as the supermarket operator was downgraded. making that call with the stock up 17% over the past month harley-davidson is responding to increased tariffs on its motorcycle exports. its says despite an increase in eu tariffs to 31% from the prior 6%, it will not raise prices on motorcycles intended for export to europe. instead it says it will absorb the estimated cost of the $2200 per motorcycle and shift those to international facilities away from the united states stock is lower by $1.1.75% kayla tausche is in washington joining us with more. >> good morning. treasury this week is planning to unveil a new set of restrictions on chinese investment coming into the u.s the u.s. will move to limit companies with 25% stakes or

greater held by chinese entities from investing in what they deem significant industrial technologies that's according to an official. the rules could take effect within a month in march the white house set a deadline of june 30th for treasury to introduce these moves. president trump tweeting that countries must lower their trade barriers or be met by more than reciprocity by the usa the white house will continue to be met with resistance senator bob corker said yesterday on cbs that tariffs are uniting the world against us china is set to unleash about $100 billion in reserves for new lending. that happens the day before new u.s. tariffs go into effect. you have mexico and canada planning to strike back with new tariffs in the next week and then retaliation beginning friday already had a business effect harley-davidson saying it's going to cost them $100 million

a year and they're going to shift production as a result we're still awaiting comment on how the white house responds to that >> it's the converse of when the president wants to put on things, build it here. so you raise the cost of importing stuff. say okay put it in the united states then we can see how it can work in the reverse. >> certainly it can. harley because they say it will happen gradually, perhaps there is room for them to adjust this move depending how this strategy shakes out but europe says they will be in place for the foreseeable future >> all right thank you, kayla joining us now is ambassador robert holleyman who is now a cnbc international president and ceo. treasury is going to roll out new rules this week about chinese investment into the united states. here's how most of these

discussions go on cnbc almost everyone agrees there's a problem. chinese jv, stealing of intellectual property, et cetera, et cetera. then comes in the methodology. the way the president is not the way to go about it then the spoerupporters of the president said we've done it your way nor 30 years. do we do >> what we do now is wait and see the expansion of the restrictions we see the impact of the u.s. tariff taxes at the end of next week and we see the impact of the chinese retaliatory taxes. my sense having just got back from beijing is we're probably now living in the new norm that these tariffs are likely to go in place. they're likely to stay in place. the investment restrictions are likely to go in place and stay in place >> you've been in trade for a long time. the best way to change chinese

behavior is what >> the best way to change chinese behavior is with conc t concertconcer concertconcer concerted pressure from the u.s. and allies i think what we've done is the ip restrictions. but unfortunately it is putting taxes on steel and aluminum. cars and car parts, we are taking -- creating an alliance between them in china. so we are fighting a good fight. the tools are not adequate >> do you think we're creating an alliance of enemies against us >> in some ways. does that mean they're aligning with china against the u.s.?

i think the answer to that is no are they defending the rules that they and we help create absolutely >> and you don't see a breakdown -- a breakdown in a good way of certain issue where is they're aligned with us they are still aligned with us on the problem but not at all on the solution that we're applying to it and the tools are applying to it >> they don't like we're applying those solutions to them they wouldn't mind if we apply them to china. >> i do think they mind -- >> they imposed steel and aluminum tariffs already before us >> but the way we've done it is we hit our allies even more. so we were not select ive no one

in china that i talked to can figure out how we walk off of this cliff that we've created. that's a problem long-term >> ambassador, i reread the section report last week it is a dark report. it implies the policy whether spoken or unspoken is to steal ip by hook or crook. is that's what is going on >> it is that report is a strong report >> and you believe it? >> and i believe it. people who i work with wrote that report. it is accurate the question is what do you do to respond to that report? you need to do two things. one, take on china with your allies, not against your allies. secondly we know what we're against in china but we also have to couple it with what we're for in the united states. so in the areas where china

wants to grow, we need to have strong domestic policies to compete. we're missing at that this point. >> you're setting it up as if it's a trade cold war. we're just going to put up these walls and live with it for awhile >> that's the indication we're getting. what we have not done is given china a realistic path by which they can unwind the policies that we've identified as the problem. >> why do you say that why not reduce tariffs we're not going to reduce -- >> all of those we should have done none of what we are putting in place is causing that to happen. in fact, what i heard overwhelmingly is this is consolidating xi jingping's hand because it's giving the united states a common enemy of china he is stepping up saying we're defending rules and not telling him which policy to change. >> to the point of what the financial times was saying this

morning, we talked about it. does trump look at this? look at it as i'm winning. therefore he's putting pressure on them. and therefore maybe he getsing if something for it? >> they're preparing far long war. but that does not mean in any way, shape, or form they are changing the fundamental way in which they approach the market in fact, what i was hearing is to the contrary. the current u.s. action is solidifying xi jingping's support. it is further creating the reformers as outliers. concerned about the potential backlash on the businesses >> weren't the performers already outliers xi jingping has moved the country backward >> we saw that about three years ago. increasingly being minimized what's happening now, it is further taking the reformers and taking them away from the table.

>> okay. good to have you on. much appreciated >> thank you coming up when we return, former cea chair jason furman is going to join us to talk trump trade and the economy. first, is blackrock's larry fink the new conscience of wall street as we head to break, check out the dow futures. dow in the red 145 points. stay ted u're watching "squawk" on cnbc your muscles look good, but we should be seeing more range of motion. i'm fine. okay, well let's 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,

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welcome back to "squawk box" this morning take a look at some stocks to watch. tapestry, the company formerly known as coach rated buy from goldman sachs. it sees strong growth prospects for both the coach and kate spade brands also microsoft getting upgraded. saying microsoft has successfully managed its cloud transition and at&t announcing the acquisition of appnexus. it did not reveal a price for the transaction. the journal reported last week

the two were in talks with a price tag of about $1.6 billion. we had asked brian lester in cannes about it. he did a little tap dancing. now the if deal is on. meantime buffett, dimon, fink have been weighing in on the idea that short-termism is corporate coating, corporate social responsibility is the big deal these days. barron's magazine out with its latest issue joining us now for more is the publishing officer at barron's is larry fink, the man on the cover here, the new conscience of wall street >> i think he is the reason is more because of this power than conscience there are a lot of people thinking like fink is, but they don't have $6.7 trillion under management and he's been a very careful and articulate spokesman for this. it rubs a lot of people in the wrong way. look in the comment section

today. a lot of readers do not think this is a good idea. he is well aware of that he's trying to make an argument -- >> and we're going back to the letter this was the letter -- >> andrew ross sorkin was the first one to reveal that >> which he endorsed >> which he endorsed the idea of corporate social responsibility and said basically every company has to have a purpose. but i do think sometimes there's a misunderstanding of what he's saying he's basically not saying you go for social purpose he's saying you will not make profits, won't be able to live in this world if you don't have some kind of social purpose. >> i don't see what at all is controversial about what he said i was on a panel, larry and i were on a panel, the day after it came out. and he highlighted, look, i've said in this letter that businesses need to take care of their stake holders. need to provide a nice place to work for employees i don't get what's controversial

about this why are we all in it >> it's an old fashioned idea. this was assumed the partnerships on wall street. but i think the milton friedman idea has been twisted a little bit to suggest if you're thinking of anything else besides the next quarterly report, you know, you're on an agenda that does not align with shareholders i think that's wrong >> i don't think that was milton friedman he wouldn't have agreed with that >> you're right. but it twists into that. and so now people -- it's a polarized society right now. >> to remind everybody what milton friedman said was what was the purpose of a border directive and the ceos is to deliver profits. >> which he says is achieved by having everyone come to the company with a shared thought of what it means. >> you have a subset of the investment industry that clearly has seized upon this

and it's a little bit of -- if all companies are going to behave this way, they own all companies. how do we think about how it plays into our investment decisions? >> so we had a conference where financial advisers were speaking this woman said the dividing line was that at about 41 years old, everyone younger said of course i would invest with my values everyone older said your job is to maximize my returns, period so blackrock has seen this they know that the money is moving in the direction long-term, of course, of millennials and others who want their investments aligned with their values i think from a long-term marketing play it's smart. >> on the set last hour, i asked tom farley here about the ceo of

shoame are there any rules that would have prevented him and your response was i had a lot of people come to me with social responsibility issues that we thought should be part of the rules. and you have declined to push those particular issues. >> yeah. i don't think it's the exchange's job to decide how businesses should operate. i will note, it's interesting. post-trump election, the number of those groups coming to us actually went down you would think it might have gone the other way there's this sense of it's not going to be a priority in washington >> what were they asking you for? >> a minimum quota for number of women on board, a rooney rule where you have to -- >> unless they could not list on the nyse? >> yeah. and the hot one is one share one vote the snap ipo really lit a fuse where investors saw these snap shares that were sold as part of the ipo with zero votes.

so we heard from a lot of groups saying please move to a one share, one vote regime such as there was in hong kong until recently >> i think the idea here is investors will look at these issues and decide for themselves if you think diversity on a board will make that company have a better r.o.e. in the next decade, put your money there >> it is happening in the last proxy season, the majority of new directors were -- investors are demanding it >> let me ask you this at warren buffett's annual meeting this year, one of the questions that came in was about guns and whether warren buffett would own guns or if he'd be open to owning guns he said he would he said it's very hard to decide what is a good business and what is a bad business. you may be in a transportation business they might ship cigarettes how do you differentiate these

things >> sure. so first of all, it's very tricky second i would say in that case, if your bar is that high, you're going to have a very small portfolio. what people pursuing this are saying is it's got to be tradeoffs. they don't pay their employees that well. but they have done a good job of improving the conditions for the employees. for a lot of investors, it clears that bar. if you think about value investors, right the guy that wrote the piece in here, google is one of the largest stocks in his portfolio. you've got someone at lyrical, he wouldn't touch google so people are going to use different screens. >> how do you talk about larry on it?

some folks say he's made a good piece. he said a great story. but in terms of whether they're going to hold these companies to account and how blackrock itself is structured. meaning you look at their management committee they still have work to do there. >> sure. i think his answer would be we're looking at it when you look at the company. it's not as if it's all completely male. but it is definitely a work in progress and he would point to the long-term. i'll retire in about five years and i want to leave blackrock in the right direction. >> thank you as we head to break, check out the futures. dow would hope by 146 points don't move we'll beig bk. rhtac

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♪ when we come back, grading the trump economy. steve leisman here with the results from the all america survey steve, what you got coming up? >> yeah. viewers will want to listen to this historic results on the economy and for the president on the economy. from the cnbc all america survey coming back after this break here.

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♪

good morning welcome back to "squawk box" here on cnbc among the stories front and center at this hour, we're going to get the government's new home sales report for the last month. economists expect new home sales to be up 0.9% from the month of may. reversing the april decline. and fuji film is ratcheting up a notch. to lower its dependence on fu fujifilm take a look at natural products company hain the current ceo company founder erwin simon wants a replacement. the search under way but hain did not give a completion for that.

i want to get back to our guest host tom farley, former er nyse president what do you think of the red arrows we see this morning >> not much. there was nothing that came out other than oil >> you don't think any of this is trade war dependent >> well -- >> that's what it feels like to me >> we knew about the $34 billion. now we know conclusively about the restrictions on technology investment i would have thought that was priced in on friday because there had been several reports about that >> i think the futures backed off on the news reports. but the pattern has been kind of diminishing impact over the course of a day. the market has softened up a bit. >> and the store last week was trade is really impacting these markets. i was surprise to do the math and see the s&p 500 is at its

all time high. 4% off the all-time high so things are still pretty good. up 50% over the last two years it's not a big deal and i would argue it's not as good as the s&p 500. >> can the farley family invest in things they weren't allowed to before? >> i imposed on myself a more draconian policy which was no securities i didn't buy broadband etfs. >> now that you're free, what have you been doing? >> i'm not a day trader and i have not yet kind of dove in and started buying securities. i wish i had a sexier answer for you. >> i would have thought maybe there was an appetite -- >> how far along are you on the special purpose acquisition corporation? this is basically a publicly listed entity. >> it's a peculiar entity in

that the s.e.c. requires you can't have had any conversations with any perspective targets that notwithstanding, there have been a lot of 1re789 firms that have come out of the woodwork to say we see what you're doing spent a lot of time -- had several conversations. i will be going there shortly. will be going to europe shortly. canvassing what is the best deal i'm looking for acquisitions >> are you a believer fin tech companies are going to up end the banks in a meaningful way or get enrolled in? >> i think it's most likely the latter i think this is a great time to be a major u.s. bank, not a western european bank. but a great time to be a u.s. bank and i think you're going to see

the well run banks gobble up the technologies and by the way, you're already seeing it. look at zell i don't know if you're familiar. >> oh, zell. >> this is the -- this is like a venmo competitor >> my wife and i pay the babysitters with venmo that is gone anyway. more people are using zell and that is owned by the big u.s. banks >> hold on i have one more. crypto would you buy a crypto company >> that is more of a black/red bet. i followed the space i like coinbase. i like crypto. that's a black/red bet i don't like that, but i'll contemplate. >> what do you think of bitcoin broadly speaking >> i'm not sure it's a winner long-term. but i think these blockchain principles will adjust >> is there one that -- by the way, everyone in the valley is building on top of ethereum now.

>> anyone who tells you they know the answer to that, they're lying to you it begs the question bloc kahne goes down and there's no support for for it and the regulators are going to ask those questions. it's not clear who will be the long-term winner but clearly dollars are going into it for now. when we come back results from the cnbc all america economic survey. am i calling it all america? >> that's a good question. all america survey >> all american? >> all america. >> that's what joe would have done, right? >> yes >> exactly check out the futures right now. we are in the red. "squawk" returns in a moment

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the results of the cnbc all america survey being released today. and who else but steve leisman joins us with some historic results. >> we've been doing this ten years. i think what we say now -- i know, right? it's a long time my kid graduated congratulations. a booming economy helping president trump's approval on the economy and a limited extent, overall approval for the first time in the trump presidency, the all america

survey finds more than half of the public, 51% to be exact, supports his handling of the economy. that is up six points from our prior survey in march. his overall approval rating is down ten points. so fewer people disapprove of his handling of the presidency trump's net negative rating, the lowest we've recorded yet. the surge in trump's approval on the economy comes with some democrat support it's the highest of his presidency you can see right there that surge to 51% of the decline and disapproval. we did not find any obvious impact on the president's overall approval rating from the controversy over separating migrant children from their parents. here's what we did we looked at the data from last saturday and sunday, we compared it to when the story was the prominent. we saw no difference our poll suggests that's because

everybody is locked in what they feel about the president now, president trump's immigration policies remain the worst polling issue for him, but it's not dratmatically changed from the year before it's not much different from last june. if they support the president's policies, yes, they do 52% approve and just 30% disapprove i will add they disapprove of his tariffs and taxes on imported goods 800 americans polled across the country. margin of error 3.5% we saw record economic optimism among the public in the ten years we've been doing this. for the first time, these are small numbers but maybe significant. for the first time those rating the economy excellent at 13% outstripped those who think it's poor at 11%. it was always below. and we have record high optimism

across the board >> going back so far as the obama administration >> we just -- well i'm very happy we just started the poll in 2007 so we have a little bit of sort of pre-crisis normalcy >> under bush. >> under bush as a gauge for where we get back to here's one example of that a that's the highest record before 2007. >> what'd they think back then >> two years past the peak, basically. >> they were wrong but when you look at housing values, it's a very important determinant of optimism. if you think your home is going down in value, you think the world is coming to a an end. >> don't move, steve joining us now on the "squawk" line is jason furman now a senior fellow with the peterson institute for economics. joining us on the phone because

something happened with the studio and he got locked out thanks for being a sport >> thanks for having me on the phone. >> what do you think of what you heard from steve leisman in the historic optimism in the all america survey for cnbc? >> i'm extremely optimistic about the economy right now where growth is ticking up the unemployment rate is unbelievably low i think what steve points out about housing values is right. a big fly in the ointment is wage growth. hasn't been picking up in fact, real wage growth has fallen overall i think the economy is doing quite well >> yeah. jason, i just come back to this notion of the views of confidence in the economy under the trump administration versus the obama administration i don't personally think the obama administration's policies were as bad as, for example, many on the far right believe them to be but certainly there is a rise in business confidence. there's a rise in economic

optimism, view for the future. i wonder if you go back and think of in the obama administration, you think there are things we could have and should have done to boost the public that would have paid dividends for the economy and the administration. >> now we're talking about policy, steve. and, look. if we had done a $250 billion fiscal stimulus in 2016, we would have had faster growth in 2016 we would have had more confidence in 2016 so i think a lot of what's going on right now is just this huge fiscal stimulus. i think that's going to be one of the issues in terms of public policy which is right now i think it's helping the economy in the short run but with deficits, debt, trade wars, immigration restrictions, i think it's potentially hurting and limiting growth over the medium and long run.

that's precisely the opposite of what i think policy should be doing. we should be focused more on what we should be doing not what's the biggest jolt you can get. >> i know you're a first rate economist but i want to ask another question >> i think that's just a reflection of unemployment rate below 4% and people naturally credit the person in charge in that moment. the unemployment rate was very low when he's been in office it's on the same trend it was on before then. if things were going badly and it wasn't his fault, i think people would blame president trump. things are going well and it's not to his credit. they'll, you know, they'll credit him i think that's understandable. >> hi, jason this is tom farley the big story here is the

approval of trump's handling of the economy has gone up to 51% i look at it and say how could it only be 51%, how could it only be 30%? i wonder if people's disdain of his other policies is clouding his judgment unemployment run lows, asset prices at all-time highs, tax puts significant ly -- it's having a real impact how is the handling on the economy not 80% -- >> i'll give you an answer go ahead, jason. >> oh. i think the economy's doing well i think the tax cuts are a big short run plus they're not a long run plus because they're going to increase the deficit and then you have these trade wars being launched. you have these immigration restrictions that's an economic issue that's something that's going to hurt our economic growth without immigrants, our

workforce is going to fall over the next decade. and we'll head in the direction of japan rather than grow. so i think there's a lot to be worried about. frankly, a lot more now than six months ago >> let me give you two answers from the poll. there's a ten-point gap between the economic -- conservative republicans support his handling of the economy 96% his handling of the country 89%. there's a problem when -- and this has been repeated through the trump presidency his overall conceptual policies are supported. they support his renegotiating trade deals, but not tariffs they did not support privatizing

the faa. the president's concepts, i think play well in the headlines he's a president in that way i asked our republican pollster. how is it possible that the issue of separating children from their parents didn't change the polls? he said, people are locked in. you love him, you love him you hate him, you hate him the same pollster said the most consistent thing about the trump presidency is his approval rating it doesn't budge there's been some increase in other polls. we didn't register that. we did register a decline but people won't go so far to say they approve of him. >> thank you so much for calling in, jason. >> thanks, jason when we come back, the

content battle we're going to talk to an analyst in the fight for fox take a look at futures right now. we are still in the red across the board. we're back in just a moment. what about him? let's do it. ♪

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welcome back to "squawk box. at&t reportedly expressing interest in buying cbs before time warner. the paper reporting that at&t ceo randall stephenson met withe she said she was not interested in the deal. let's talk about the media landscape. this is quite uncertain. comcast is in a bidding war for fox's asset and the entire world is watching. joining us now is a media analyst. good morning to you. >> good morning. >> help us how you think this is going to play out. >>well, as you said, disney is in there with a $38 bid for the required assets for fox. we think comcast is putting together a counter bid. >> what's the number let's do it this way, what's the number which it's too painful for everybody? >> the winner becomes the loser.

comcast said they're doing a all cash bid the investment rating they have is key based on s&p, it's about $45 for those assets it's a substantially higher bid. >> $45 per share in cash all cash. >> yes. >> after that, that's when you get upset? >> i think i get upset before that that's the highest number. that's about a 17 times multiple in 2019. that's a big number. >> that preserves their investment credit rating lu shareholders could revolt before that. >> if you've seen comcast shares there's a lot of displeasure. >> is comcast doing this, then, because they're throwing in the towel and by and large regional distribution model and going all in on content? >> i don't think so. they're very strong. we increased our broadband estimate the growth we think has a long way to go. it has had a lot of success in media. it sees itself as sub scale

compared to the likes of apple. >> so charter is over there looking at this and probably getting a little spooked are we missing something does charter have to go all in on content >> i think so. that's a pure play distribution company. it's a bit of a turn around story. we think you'll see improving fundamentals in the second half. it's a pure play malone has a big say there he has content assets and others could he make a play for the rsn inside the fox asset >> regional sports net. >> it's possible we think they'll remain on the sideline. >> do you remember how you felt when you felt that amazon was buying whole foods >> yeah. >> is it possiblesome tech giant disrupts the whole thing and give the jaw-dropping feeling they'll do something. >> it's possible the companies are spending more and more on content. we don't know apple's strategy the right side of the media companies are seeing moves in their stocks

base order the belief they'll buy the assets >> fox assets are irreplaceable. they're the one chunk of entertainment content assets you can buy now. is there a chance disney buys them and it doesn't translate into direct to consumer success with an over the top offering. is it an okay deal based on the business we have now >> great question. you've seen these direct consumer products take off and you've seen netflix hit new highs every week for the last six months there's a lot of focus disney has announced they're pivoting their business to chase this direct consumer opportunity. they found a way to do it in a creative way by buying fox. >> who needs this more >> disney. no question. >> disney. no question needs it more? >> it's their main business. their only business is the content and media business. >> to compete -- >> we talked about the price tag you said $45 per share when it gets to be a problem.

>> comcast can pay and maintain the investment grid. >> what is the most you believe disney can pay >> disney is a little differ their offer is a mix of cash and stock. obviously, they need the stock to perform but they have quite a bit lower leverage than comcast. they can pay quite a bit more. >> like what give me a number. >> we haven't said and i haven't done the math. >> what's the number >> it's getting painful already but i would say at 45 is the most comcast is bid. we don't think disney needs to match comcast to win it. they have a more clear regulatory path. >> uh-huh. >> speaking of regulatory path, t-mobile and sprint. does it get approved >> i actually don't think it does i think the chances are less than 50/50 i think the fcc could approve it i think it's a fairly forward thinking guy he's looking at the public interest and 5g will be

difficult for sprint and t-mobile to build on their own the problem is doj. >> i think the problem could end up being the states. it could end up being california and new york. >> yeah. >> you had a comment on regulatory environment do you think the comcast bid has a harder regulatory hurdle to jump is it the timing issue or do you think you actually think that it can get blocked? >> i think it's both from a timing standpoint, disney is further along there's a story that said it could be approved in the next two to three weeks from a value of money and risk standpoint it puts disney a better position and is a higher premium is required. if you look at the overlap of assets and the fact that you've got some combining distribution and content together, which is a problem for the doj with at&t deal just because they won in court doesn't mean the doj changed its mind there's a number much issues involved that make it more difficult. >> when we think about this,

when the conversation first started, disney had offered $23. then $28 i mean, you really think this could be over $45 a share? >> i think if comcast wants this asset, they need to bid more than a 10% premium because of the regulatory difficulties. this is our view the most they can bid is $45 i don't think disney has to go there to win this. i think they can bid at a bit -- >> if you're negotiating, do you think you go two more rounds meaning do you go to $41 or $42 if you're comcast. wait for disney to come back. >> $45 is your limit, right? >> yeah. i think it requires your best and final year i think you'll get it later this week or early next week. one thing i would say, they haven't done it in the past but they brought in a partner to bid on some of the assets, it could go higher. >> thank you parting shots from our guest host don't move let's begin.

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welcome back to "squawkbox." time for the last worth from tom farley. >> it's been great to be here at nasdaq it feels funny for me to say

that we have to build the relationship slowly. my heart is still down at -- >> i have my ipo on the new york stock exchange two weeks later everyone was looking at me like oh, you know, the uncle is staying a little late at the party. time to go home. >> thank you for being here. >> thank you it was great to be with you. >> we'll go down to the new york stock exchange tomorrow. "squawk on the street" begins now. ♪ >> good monday morning i'm carl quintanilla final week of q 2 stocks back to being under pressure trade rhetoric again in the headlines. dow on pace to lose nearly all the gains for the month. europe down about a percent. ten year back below 2.9. the road map