>> get a lot from there. >> that's true. >> i don't know. there's new things like infrastructure that are very big. >> yeah. that does it for us today. mike, it was great to see you. thank you. join us tomorrow right now it's time for "squawk on the street. ♪ good morning welcome to "squawk on the street." i'm david faber along with jim cramer carl has the morning off a look at futures. as you can see, we're heading for what appears to be a higher open european markets were playing along. let's take a look how europe is faring green across the board no huge moves. some nice ones there

ten-year note yield. got the employment number on friday down a little bit. 2.851 is where we begin this week you can see oil. the story last week, of course, having passed briefly november 14 highs it's at 73.out the road map this morning. it starts, this morning, as we do with stocks they've been shaking off concerns at least surrounding trade and brexit the dow set to rise more than 100 points a the open. nasdaq and the s&p look to be well positioned for a good start to the week. plus, the trade stumble. shares in the world's fourth largest smartphone maker off to a tough start in the hong kong debut. so long straws starbucks planning to scrap plastic straws by 2020 all right. stocks are poised to open higher this morning after the s&p experience what was the best week in a

month. upward momentum coming after friday's employment report showing stronger than expected job growth in june we had facebook that closed at a record high on friday. mr. zuckerberg's net worth moved up i think he passed mr. buffett for a brief time we haven't been together in awhile. >> no. too long it's great to see you. >> you look the most rested since '93 or '95. >> could be. it was a good five days. >> no oubt. >> david, i woke up saying what is comcast bid and i figured you had the story completely covered. >> i do have it completely covered, but at this point, there's nothing to cover we'll have to wait to see what our parent company chooses to do many people, as you alluded to, jim, expect to see something this morning. >> yeah. >> because of the timing 27th is the vote for fox shareholders. no news to share at this point somewhat surprising but don't want to draw any conclusions.

>> right. >> but tell me about the broader market, as you take a look you were in thursday and friday. look at the employment number and go through it. where do we set up today >> it's one of the strange markets i've seen. the employment of construction and manufacturing. incredibly strong. add the two together and they trump health care. remember, health care, for years, was the biggest grower. so you had very strong growth. at the same time, what you're seeing, david, is a tremendous move into the utilities. real estate, health care stock. >> utilities are related. >> exactly. >> remember how where we were and we went from 3% to 2.89. that is coming in a fashion. the industrials and manufacturing. still reacting to every move out of china i expect up to date because the chinese market was up. that doesn't -- shouldn't correlate. i think it will.

we're in a weird period, david you do not get growth without inflation. and not seeing the traditional move up. the money is going toward things like biogen. until last ten days when toys "r" us closed 700 stores really counter intuitive. the shopping center, shopping mall stocks have been incredibly strong again, counter intuitive is it counterintuitive that pfizer is going up i don't know pfizer boosted the dividend last year it gave you a nice increase. it's 10 kreents higher than it was five years ago that matters there's an article how the buy backs don't matter i would be careful about that article. we start seeing earnings tomorrow i'm not counting helen of troy because it's so small.

but holy cow did helen of troy blow the numbers away. >> yeah. your expectations are, well, it's not necessarily they would expect earnings will be strong but what we're going it see in terms of the reaction of stock themselves you mentioned buy backs is part of that. what was your point that somehow what we've seen the earnings it's going to matter >> i think they've been buying back very aggressively. >> that's the main impact. the buy backs, some say it benefits ceo compensation which is often tied to earnings per share metrics. that's a story for another day. >> no disagreement there by the way, i bring up pfizer. why? because the large health care large drug stocks have been very, very positive going into a quarter where the euro is actually down 5% from the dollar you start seeing pepsico not as impacted as oca-cola

but pepsico could be hurt tomorrow we've seen two negative notes about pepsico. no, distressing. it proctor note today. very negative. and that is disconcerting because proctor, obviously, is very related to currency and emerging markets. >> and exports, as well. >> right. >> and that was the story today in the "wall street journal. u.s. exporters will be a surprise loser from the tariff because it's not your point necessarily intuitive. it's counter intuitive why would that be the case >> yeah. i think that's retaliation. >> it is to a certain extent there's a basic idea your trading partners have less

money. dan d'amico with a tweet yesterday. we had 30% tariffs with 201 in 2002 and did not have a big dropoff that was discovered. >> and you use those numbers, but i can think of so many different companies. some of which we talk about every day that rely a great deal on selling their whatever it may be intellectual property or otherwise. or actual manufactured goods overseas. >> true. people have to recognize it's not so much they do well overseas but the growth has been disproportionately based on overseas sales particularly chinese sales. >> all right we're seven minutes and 20 seconds into this program and you mentioned china. >> thank you. >> let's go back in time there was a man, the man sat next to me in the fourth week of august the market opened down a thousand points.

what did i say when i said "what the heck is going on?" >> i don't remember. "i got to make some calls. the reason we focus on that is -- >> that was long ago yes. i remember. >> the chinese market all but collapsed and it brought down the world. the chinese picked a novel way to stop the collapse they stopped trading on the stocks that were going down. david, china threatened to bring down the world with the stock market should they be able to bring down the world with soy tariffs? >> no. >> no. i don't think so either. >> certainly farming. >> it checked out. you write farmers checks. >> i saw that. you tweeted about that. >> yeah. >> you continue to not be concerned about an escalation of a potential trade war. not just with china, by the way where there's a lot of arguments in favor of why we should be tough. but with our long time allies, our friends in europe.

>> autos are the key and taautos in europe. if we wake up and thepresident tweets i'm putting a tariff right now 202, which is national defense on bmw and mercedes and volkswagen, then, david, i come in and i say to you, i got to make some calls. >> you do. >> okay. >> it never made sense what was some of the training that day >> the machine is broke. similar to what we had nxp 107.47. >> we're seeing micron rally we have to be careful. and there's a preliminary injunction against micron. it's not sanguine. i'm not sanguine about china. >> we'll talk more about that. i want to talk about --

>> xiaomi. it fell as much as 6%. before closing blow the ipo price. >> it didn't even hold -- >> 16.80 it closed and it was priced, by the way, blow the range the company has a evaluation about $54 billion. >> easy come easy go that company started in 2010. >> it was an internet company but everybody sees it as a hardware company that's kind of -- right? that's different. >> i view groupon as an internet company. it's the segue to a faber report. >> no. >> look, i don't want to be good about that that was horrible. >> it was. >> and the 10 cent team. what are the chinese react how did they retaliate they bring a lot of deals. >> i think we should go to -- should you dot 10 cent deal? >> what is wrong with 10 cent music?

>> shouldn't we have a national debate whether the chinese can continue to list their stuff if you look at the so-called call in the morning. a lot of them are chinese stocks. >> our host would be -- there would be serious issues if they were not having chinese issues listing here. >> how about if the president tweets "i'm fed up with the ipos." >> why would he do that? >> he does a lot of things i can't figure out. >> true statement. 10 cent music, by the way, just keep in mind spotify owns 10%. >> buy spotify. >> when you listen to spotify, you do, as everyone does in my family aren't you shocked that artificially they figured out what you want. not unlike netflix. >> want to get a little freaked out, spotify knows your mood they know your mood. they know whether you're in the gym. they know a lot of things. and, by the way, that on the free service, that's very valuable for advertisers.

>> right that's how my wife finds stuff. >> you need i don't know a new water bottle we got a nice water bottle. >> spotify is me in the garden i'm picking raspberries and they play me strawberries. >> if you're chilling for dinner. >> blue apron was a advertiser that was picked as a big winner. there's that contest going on and the state contest. >> yes i like that. >> already it's a year since the last time? >> what can i tell you. >> do it every six months? >> no. it was the first year he's done it time marches on, david you got to make some calls now >> yeah, unfortunately i continue to make a lot of calls. all right. we want to figure out what we're going to talk about when we come back >> a stock up for no reason. >> starbucks, also. >> do you have some? >> no. >> i have it i'm all over it. >> howard schultz can't stop

talking. >> i know we have to go. my father sold paper straws for a living and i remember when plastic came out. pop's birthday today he would have been 96. >> he would be happy to hear this back in business. >> he sold the red and white striped ones when plastic came out it was a disaster. >> let's give you another look at futures we'll talk about starbucks after the break. it's pretty amazing out there. the world is full of more possibilities than ever before. and american express has your back every step of the way- whether it's the comfort of knowing help is just a call away with global assist. or getting financing to fund your business. no one has your back like american express. so where ever you go. we're right there with you. the powerful backing of american express. don't do business without it. don't live life without it.

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♪ starbucks has announced plans to eliminate plastic straws from the stores by 2020 it will make alternative material straws available and develop recyclable strawless lids for drinks. starbucks said customers in seattle and vancouver will be the first to see the strawless lids implemented in the fall followed by phase rollouts within the u.s. and canada good for them. all though it's interesting, i know you know this obsessed with the amount of liter in new york city, for example. when you look over the last 30 years and look at the typical waste bin on the corner, it's filled up with things that come out of starbucks or out of a shake shack. the amount of waste that has been created as a result of everybody having their latte and

whatever. >> we want it to be paper and not plastic. >> the plastic in the great plastic garbage thing is the size of france. >> yeah. >> and many people feel the most recent level has come from not from our country from chinese rivers. >> and india, too. huge issue with plastic bags. >> it's a good thing i don't know if it moves anybody to buy more starbucks >>well, millennial's, david. they have a conscience not us we're just wreckless consumers millennial's care tremendously. >> i hope so they need to do a lot to repair the planet that we have destroyed. >> yeah. >> you know david, let's go to starbucks. howard schultz. >> let's move on to the stock itself. >> it made me think about kevin johnson. he comes out and does say i have

been close friends with jack ma for many years why does it matter there's an endless chatter there could be a boycott behind the slow down in chinese stores. if you're tied in with jack ma that's highly unlikely. >> as you and i went into it in great detail and we had mr. johnson a couple of weeks back from boston when i went up there. the store sales in china were flat up 7 or 8% the year previous a lot had to do with delivery options and changes that were taking place so this was going directly to that. >> a third party delivery. >> right but what howard said that i think is very interesting, he's talking about opening stores, i just love it, in cities that we've never even heard of. >> right. >> that are bigger than philadelphia. >> can i ask one question? >> fire away. >> your point you made howard schultz is a owner of 3%

of this company. he's the founder he's not the executive chairman any longer he's not the ceo why is he still talking? >> well, reuters said it's on a farewell tour. he stepped down in june and talk about the false narrative. everyone fake news but, you know, you raise a good question, which is should -- what is their role >> in most places their role is nothing. >> did you hear from jim mcinerney again? >> no. >> why because he wanted to get -- >> now it's different. i mean, we say -- >> yeah. he was not a manager. >> he made starbucks -- >> he was not a manager. >> there were a handful of starbucks. >> right and i think it's hard to get away for someone who is the founder. but when i read the story, i was cheered by it. i was worried about what is going on with china. it's good to hear.

>> jack ma not particularly positive on starbucks. >> no. >> it sells at 20 times earnings that's expensive for a company that is not a close stock. at this moment. >> it's not recovered from that fall. >> obviously the day before when they lowered values for the quarter. >> it was regulatory did you sense gloom? >> no. i didn't sense loom. >> i mean, it's still a fabulous consumer name. but people were struck by the decline dramatic decline in china. and there's, david, there's more money going into dunkin' donuts than into starbucks. >> yeah. listen, let's hope starbucks gets everybody to shift. you know. >> it's important. >> yeah. maybe you gate discount if you bring in your own cup. >> i like that i like that. >> we've got tens of millions of cups out there.

>> there's an island of cups. >> there is. we should go to it and find out what brands we can find. >> clorox, david they always say it's clorox. i think it gives them a bad rap. up next this man here will have a mad dash. first one of the week as we count down to the opening bell we're looking for a higher open, as you can see there we open nine minutes from now. more "squawk on the street" straight ahead directv gives you more for your thing. if you've been waiting for a sign to quit cable, then here's some signs. it came from the toaster. now you can quit cable. switch to directv and now get a $100 reward card.

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♪ we have a little more than six minutes to go before the opening bell time for your mad dash groupon whether it was too early to buy apparently, now somebody else might be in. what is going on >> i've had ceo rich williams on a couple of times. he's terrific. he tried to shed revenues that have so-called bad calories. it's been making the company more lean. but, david, two people on the outside, it looks like revenues are declining. i think rich has done a remarkable job it's not being reflected in the stock. now, this is a recode story. i don't know if it's true. but i'm going to use the davidson -- get this davidson $12 on take out why would you get that this is from groupon 72% of transactions are mobile five-star app.

177 million downloads, david a top ten u.s. app yeah, it's worth a lot to someone else i think rich has gotten short tripped. i like the turn very much. >> and the story itself is, what >> yeah rico -- >> what? >> over the weekend, i'm quoting davidson rico said the company was considering selling itself davidson biggest bull saying the market does not value it correctly. i agree with that. i said i don't get it, rich. i don't get it what is your stock doing at four and the answer they don't recognize we're getting rid of the revenues that are bad. it's going to be a great year. i think it's a terrific opportunity. >> they should rename it maybe a rebrand. >> i wanted facebook to renamed instagram. facebook is so tainted. >> yeah. not instagram. >> no. oufi mutbe ie opening lln abt veines from now. at the marine mammal center, the environment is everything.

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on the street. the opening bell in less than a minute and a half from now which is a good opportunity to turn to you and ask what is the key to this market by that, what is the key thing you're watching today in terms of dictating trade >> i'm watching netflix. that's because barclays says on a subscriber basis, david, it's not so overvalued versus legacy business now, i've been, obviously, you have to watch faang. it has been on fire. the one that lead everything is netflix. up more than 100%, david. >> almost 113%. >> right that is probably one of those stories that is defining this particular moment. that you could have still one more analyst come out day after day saying that the growth is unrecognizable time warner.

okay at&t. >> i thought that was interesting. [ applause ] >> netflix is unbelievable $177 market value. [ opening bell ] >> stocks opening green. on the big board, tell every amazing lady a nonprofit about ovarian cancer and at the nasdaq operation backpack. >> david, i've got to tell you that a lot of people felt this time last week that perhaps this was going into the tariffs it was going to hurt the market. and we are in a remarkable moment because that negativity has simply vanished. we're as positive now as we were

negative. >> only a tweet away, aren't we? >> yeah. about 20% tariffs on european automobiles. >> i'm waiting for it. >> aka germany. >> right. >> would be a bad thing. >> i'm waiting for that. and, of course, waiting for the supreme court pick i'd say mr. kavanaugh really interested in curbing government remember this. he went after the consumer finance protection bureau. elizabeth warren, raymond ketledge then you have judge barrett i regard them more social issue people now people can quibble with this, but when i google and read their writings over time, you have no one that will hurt business. >> right maybe we should be thinking about that one of the subtle bullish signs you're going have five justices

deeply committed to business, which matters. maybe it shifts the way, you know, the core. >> we had the ruling from a couple of weeks ago on unions. >>well, i think these are significant. it is, without a doubt, a moment where if you are capital versus labor, the court will go capital. as of tonight. and i think that is a very -- >> it already is even more so. >> kennedy was a fabulous -- i shouldn't say fabulous n nonideological swing vote. never knew where he was going to come out. >> he typically came out more often with the republican majority. >> right but on a couple of key issues, on the social front, of course. >> i don't want to spend too much time on this. a lot of people feel it's about social i don't want to weigh in about politics i want to weigh in about business and what i see is you're getting a kind of what i

regarded as being original founding fathers issues that the exact it was too strong. the executive too strong is a reaction to obama. not a reaction to trump. meaning that enough activism enough creation. these people, i think, have one thing in common. they're against rule creation by congress or particularly by the executive. that's a backlash against president obama who initiated a huge number of rules, which is what the president has been trying to roll back. >> roll back the rules. >> yes. >> he issued plenty of executive orders aren't those rules themselves or not? >> i think people are looking at a technical version of a rule from an agency the agency being too powerful. all these candidates will tell you that the agencies became too powerful an agency historically have been looked upon as entities that are against business. >> your point is fairly simple, which is let's take -- you're

not looking at the social issues >> you're simply saying that business will benefit regardless of who the pick is. >> david, one thing that is bizarre positive today while you're away, the bank stocks were pommeled i found myself e-mailing bankers and saying can you justify 10 or 11 times earnings? almost none of them can. well, none of them can we didn't discuss buy backs. >> goldman seemed to be the most restricted i found that curious mr. goreman runs a conservative shop and didn't deserve that. that should have been more open. should have said, listen, he can run with it. goldman sachs played it closer i think goldman tries to get exactly as much capital and no more as you need versus say jpmorgan, david, which has so much capital and bank of america.

largest bank. >> we're asked to show you video of harvey wieinstein, of course, one of the more powerful people in hollywood he's pleading not guilty to three new charges. these are in addition in the previous indictment from the 30th and you can see him there in handcuffs being lead away. >> david, the segue to whatever but the rally in faang is breathtaking, david. it's breath taking >> yeah. >> alphabet taking off facebook for no particular reason there's nothing new in facebook. >> it's a one-way story. every so often there's a week or two everybody wants to say suddenly it's over and it's going to slow. >> this is a summer rally. >> it's back to it, jim. >> it seems like the sellers are

remaining. the buyers are back on wall street really amazing. >> the only day might see down is twitter. >> right. >> terms of that what you're talking about. down about 2%. but up 90% this year >>well, i mean, look we needed -- advertisers needed an alternative to facebook and alphabet and they discovered twitter. hats off to jack dorsey he has created a company that people want to affiliate with. i feel square would be a take over target. now it's gotten so far ahead we've been recommending the stock of paypal. and there's a survey out this morning which says that paypal is taking share. vitamin tech is valuable while you were away visa and mastercard unstoppable. >> yeah. visa amazes me. >> it's a big company. >> yeah. it's enormous. it's the quiteetest $300 million

market cap. >> the ads around world cup. i wonder if they'll get to the england croatia match. >> i've enjoyed the world cup so much. >> it's so exciting. >> it's a unique tournament. >> it doesn't happen every year. i think that's significant. >> every four years. >> yeah. and i keep looking for take aways. how about nike how about visa no no real take aways just enjoy the game. i have nothing to add. >> let's talk about something we don't typically do exxonmobil crawling the way to flat on the year having a big move. >> what has happened a lot of these oil companies seem to be reluctant other than exxon but the pipeline constrain apc announces a big buy back what does that say some of the oil companies are flush. >> yeah. >> we're seeing actual money being put to work in the stocks,

which are viewed as being undervalued by the companies i have met with a number of loyal executives in the last six months, and almost every of them feels they're under valued. >> give me one reason why it's not. i hear the drum beat we'll see energy deals and i talk to bankers. then they don't happen and they don't happen. maybe reluctance on the part of sellers, as you point out. >> there is an oil service company that maybe the most undervalued of all. >> that would be >> baker hughes, a ge company. we didn't get to talk about mr. flannery's excellent plans, i think, for restructuring they were viewed with yawn i think that's a mistake i think health care is worth more than people realize and engines. engines ge a lot of people feel they're taking lead over united technologies. >> yep there it is $14 a share now at ge. >> that's correct. >> they talked about exiting the

baker hughes position over years. not quickly. >> going their way that's a thing. >> perhaps it would move their way to a serve extent and give them more flexibilities. >>well, i mean, look oil was at $45 or $50 when mr. flannery first started thinking about this you can say he got lucky i felt, david, it's better to be lucky than good. jpmorgan is confounding me, david. it reports on friday i want the stock to be down as much as possible going into the quarter. we don't want to run in that stock. i hope that jamie diamond explains that the country is a great place to do business that he talks about the fortress balance sheet. these would be breakthrough. >> he does it every single quarter. >> he does. >> you were setting me up nicely. >> yes. >> greatest military in the world. transparency, rule of law. >> college.

>> rule of law is important. >> it is really important. >> i think jamie should be starting to tweet a little more and talk about his situation what is going on is there an heir >> as in somebody to take over after he leaves? yeah. >> no. president xi doesn't have an air. >> lloyd blankfine, we know solomon has taken over. >> i wonder if lloyd knows what he wants to do. >> lloyd >> yeah. >> what do you mean? >> i mean, the next -- >> what he does with the rest of his life >> yeah. he's probably giving it some thought. he should be here. >> do you know >> do i know i don't know if he knows it's like when pat doyle left dominos, of course, it was -- >> those are key questions. >> pat didn't know what he was going to do. >> you and he are similar ages. >> i've got another 30 years, though. >> is that all >> that's the plan my wife doesn't watch so i can

say that. >> 30 more years really >> i'm game. i got time on my hands i got that italian place i would like to take a couple more weeks off. >> we wouldn't be able to stand for the mad dash. >> it would be a sitting mad dash apple has a stock, david i think it's worth talking about. you have samsung saying numbers aren't so good you have xiamoi and apple. it's service revenue do you know they're about to make a move and dislodge everybody when it comes to finance. you'll get this and it'll have apple finance. i think it would be better david, i have two apple watches. >> on either wrist >> no. come on here would you like a watch >> no. >> i have one for the summer you can go into the pool or the ocean and it's water proof. >> oh. >> it's my summer watch. >> got it. >> do a lot of swimming?

>> not as much as you do you swim every day. >> yes. >> you are kind of like, well, i don't know some great swimmers in the olympics. >> i'm not like them i'm not phelps or anything tesla up another 1.5%. tesla is up 1.5%. >> tesla you missed -- the attack on the media by mr. musk was really rem necessary sent of our president. he's declaring there's fake news all over the place. >> you said something on apple before we get to bob what do you talk about a finance company? >> when you get your apple it immediately goes to yahoo! finance. i think. they need to make it apple finance. >> oh, in that way i'm sorry. i thought you were talking about

the payments financing. >> payments apple -- apple payments is very important we do have a substantial number of people using apple pay. a lot of people still use credit cards. >> yeah. >> credit cards. >> plastic. >> they still take them away from you at the table when you're in an restaurant. >> i know. i would rather go zoom zoom pow. >> bob, are you there? >> i am. >> i tased you, bro. >> thanks. >> good morning, david you want to know what a weekend devoid of talk about trade war escalation looks like? looks like this! four to one advancing the declining stock. and all the sectors that are proxy for the trade war, they are the market leaders look at semiconductors, material

stocks, industrial stocks. that's been lacking along with the trade war talk that we've had. the classic names the industrial materials stocks, your cummings, j.b. hunt, the logistics companies that had a tough time recently free port-mcmoran is up. they've been hit by the trade war concerns the market is holding up well despite the fact that the trade wars are suppressing key sectors. we've had a great run here since june 1st up 2% you wouldn't know if it you look at the leadership group. industrials having a horrible time banks having a horrible time materials, basically, dramatically underperforming how do you get the market advancing with this crappy performance in the sub sectors you get all the defensive names. it's an amazing rotation we keep talking about. since june, we've seen consumer staples, health care stocks do well utilities have been doing well

amazon is in the group doing pretty well. you get the point, it's been darn defensive so far. if this trade war stuff emiluates a little bit we'll rotate back and it could be a strong rally we've been seeing all of this is happening in the two worst quarters in the presidential cycle this is a long history since world war ii, terrible performance. it's the only two quarters that are down consecutively since world war ii look at that down 2% down 0.9%. these are the average since world war ii look at this we're bucking that trend, too. the s&p is up 4.5% since the end of the first quarter this is a big cycle. a big trend to buck against. has to do with the strong earnings numbers and the remarkable rotation we've been seeing meantime, we talked about how poor the emerging markets have been partly on the strength of the

dollar partly on trade of the dollar. vietnam was up fractionally. indonesia is also up fractionally this is despite the fact that xiamoi had a terrible debut in china. $17 hong kong dollars. 22 was the range it closed at $16.80 and had a nice rally near the close here that saved it from being down even more. they had a terrible year in china. and they've had a terrible year for ipo. they said chow me is too high priced maybe. these are not hardware ipos. these are tech there is ping. razer. maybe there's evaluation problem for the chinese teches they're asking too much. you throw that in and the overall poor performance and

it's a tough time to go public right now in china we're up right at the highs, david, 188 points for the dow. back to you. >> thank you a closer look at oil prices. jackie is at the commodity desk. >> good morning. there is a slight uptick in oil this morning to kick off the week now trading slightly lower just under $74 a barrel a bit of a weaker dollar adding support today. that support at $70 is strong. prices have held off that mark and they're not that far from $75. remember that 3.5 year high we hit last week. the expectations is the summer season will continue to be strong but it will start to tamper off in a few weeks overall demand is doing well, it will subside somewhat. it does every year until then, the market is going to be watching inventories this week on wednesday. last week's number was odd a small build. we should continue to see more draws pop peck will release the monthly numbers on wednesday, as

well ed -- all sigthursday the iea my report will give us more clarity on global demand trends. >> thank you coming up, apple with a double digit gain over the last three months you can see it there stick around here for five reasons why to buy the stock we head to break, here is a look at treasuries this morning of course, the whole complex, as rick santelli, would say 10s over 30s over -- >> 10s and 2s over -- there it is got the 2 year note yield a little less than 2.6

all right, up next, we got stock trading with jim as you see, there it is >> there it is with amazing amenities like movie theaters, exercise rooms

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♪ all right, welcome back. it's time for "stop trading" with jim i know what you're going to

discuss. >> there's a really troubling piece about proctor and gamble, saying the product is unlikely to go. i don't know, i don't play with wild cards >> there's been a lot of talk that eventually they're going to split the company, that's not the focus, from what i understand >> what's the focus? >> the focus certainly the pressure to the extent that nelson pelts has any on the board, is more about what ge is doing, which is about deinvolving the cost trustructu and the decisions they have been making that would downgrade the stockist >> when i interview eed nelson,h said it did not mean that the company was in financial trouble. it's off the table >> not necessarily a way to move

the ball down the field sometimes. >> ge, i think is going to come back i know that i am in the minority when i say that. >> yeah. >> that's important. >> yeah, we just saw them kpitdikpitd i exiting the court to face numerous new charges of sexual assault. and there's his lawyer >> david, this has been a great show, i'm glad you're back >> i am glad to be back too, glad to be with you. what have you got tonight? back obviously, on "mad money. >> mongo, that's kevin ryan. >> his company is working data driven why is twitter down $2.50? >> i don't know. why is it down $2.50 >> pepsi so, that's a little disturbing, they were leading.

>> bank earnings begin later this week, so far by the way, stocks with an upbeat starts with "squawk on the street," we'll be right back. ♪ hawaii is in the middle of the pacific ocean. we're the most isolated population on the planet. ♪ hawaii is the first state in the u.s. to have 100% renewable energy goal. we're a very small electric utility. but, if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution using smart sensors on their network that lets us collect near real time data on our power grid. (colton) this technology is helping us integrate rooftop solar, which is a very important element of getting us to our renewable energy goals.

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good morning and welcome back to "squawk on the street. live at post nine, as always from the new york stock exchange carl has the morning off let's get straight to our road map for the hour a look at what's pushing these markets higher straight ahead. >> and big changes coming to the way you drink your starbucks drinks we're going to give you the details. >> plus shares of xiaomi stum e stumbling on its world debut we'll get a report from hong kong straight ahead. nice start to the week, caterpillar, goldman-sachs, the

top gainer, better than expected jobs earning and the tit for tat tariffs fine the united states and china. joining us now at poisz nine, principal global cogan i have heard this theory that better u.s. data punctuated by that jobs report is just offsetting the potential negative impact for trade. is that what's going on? >> i think it's what's upsetting, but the trade talks, that was very much an expected development, that's why the markets are having a little bit of a relief rally here it's hard to say what's going to go on on a day to b-to-day basi. as we progress to the summertime, there are a few other things that are going to be on the horizon. including the section 301 investigation.

that's something to consider, so even though tech is rallying, that's a place we want to hold, but actually hedge some of the gains we have made >> parts of the market are under estimated the risk of the trade war. for example when i look at the 10-year yield, it's not really telling me that there's a big risk because they're -- when i take a look at a market like china, that tells me that we are fully placed in the trade wards. >> jim, do you see it the same way? everybody's talking about that big divergence between chinese stocks and u.s. stocks that are still up for the year. >> if there is a trade war, it hurts chinese stocks more than it hurts u.s. stocks, it hurts emerging markets stocking more than it hurts u.s. stocks. to u.s. stocks are relatively a save haven but they're playing two large --

usually you've got negative tail risks, that's very marginal. right now what the market is placing in is the possibility of a full on trade war, 70% that it leads to compromises, turns out to be a negotiating stance i think that is about right. it's very hard to know how to price that because the trade war scenario is probably 20% or 25% of the market. whereas 70% that things will be okay, with stronger earnings should see a rising market >> and you mentioned that the market is okay with the fact that we got these expected round of tar riviera iffs on friday, r if the market has kind of punished the areas that are going to be hurt the most and spared others. we have been living with this for four months, to one degree or not, it reminds me a little bit of brexit, or the shock value, and everyone says maybe for the next six months it's not

that big of an impact, how should we fill in? >> the markets, in certain parts of the world economy, certain parts of the u.s. stocks, if you look at cyclical, they're still gaining, but industrials have been hit so that's eventually how the stocks will rise to uk foreign secretary, boris johnson who is of course a prominent brexit campaigner two years ago has resigned from the british government it follows another high profile resignation late last night, that was david davis, that's two high level positions that have -- the country residents with the cabinet, where her path forward was agreed, although it seems temporarily by all members

of the cabinet and those feeling that it was too soft of a deal that she was pushing forward with and didn't believe enough in the deal and therefore had to resign from the government it seems almost inevitable now that we'll see a vote of confidence in uk prime minister thereeresa may, and in order fo that to happen, they need to have 48 members of parliament, and the concerned party sent a letter to the 1922 committee and these two high profile resignations are likely to spur those letters forward and we could see a vote of confidence in the prime minister. we haven't gotten to that point yet, but she's certainly under far more pressure right now than she has ever been. the british pound has slipped a little bit on friday the pound was strong, because it was seen as a soft brexit path forward, now i guess the pound is slipping both because of the turmoil itself in the uk government and also the prospect that all is negotiations could be up in the

air if we see a change of government that's not happening yet but prime minister dteresa may under significant pressure today. >> can we just game out the scenarios here as it relates to the market, to see whether this is a soft brexit or a hard brexit if she leaves the person that would come in would be more of a hard brexiter. >> there are so many scenarios, you're thinking exactly down the right lines, but until we see further steps, we don't know i ive -- if she holds on to power, a brexit could be more likely. or now as we have seen front bench cabinet member brexiteers, so you've got to expect we'll

hear more people come forward now and force it to the point of a votes of confidence in the prime minister and if that happens, we have to wait and see what happens in temperatures of leadership going forward. but big question marks for teresa may right now, and boris johnson is the high profile member to resign, to really increase that pressure, the pound obviously slipping a little bit but again, it's been relatively stronger, so we'll have to wait to see how that comes out. the other issue is that president trump is set to visit later this week, and if we do get to a point of a vote of confidence, i can't see that it will be carried but by the time he makes his trip. maybe they decide to call it off. a lot of moving parts to this. >> one thing's for sure, it's going to be a big game for you this week. >> that's probably what most people care about, far more important than any political development. >> i was into that game.

congratulations. >> congratulations on the football, yeah, nothing else >> jim, let me get back to our guests here, i mean brexit does not seem to have any impact at all, certainly in our market do moves like this, do they garner your attention, and if so, what's the take away >> i think the take away is that david davis and boris johnson were being unrealistic, they don't like the deal that teresa may is putting forward there's no guarantee that she actually can get that deal through the eu so the deal is a negotiation, and i think davis and johnson think they can support that deal this is way more important for the eu it also makes disarray if it happens more serious so it expand the funnel of doubt. because the disarray could lead

to brexit with no deal and that would be a very bad scenario for the british domestic economy the london market the global, so it may not be so bad for the british economy as it is for the world economy. i would continue to say buy the dips in the u.s. >> what about u.n., any investment implications for europe and the uk? >> i think on a broad scale, no. i don't think this really matters for the broader global markets. but we do look tactically around the world and i would say that we're likely setting up for a period of voli ivolatility so wd approach that from a position of caution. broadly speaking, no impact there. and i would agree with jim, i think that u.s. markets at the moment are a place to look for some stability and the economic data in the u.s. is improving,

more so than it is globally. so back to the point where we're discussing, on the industrial side of things and the cyclicals, as with manufacturing data last week, for example looked set to rebound. i would be looking to re-enter some of those oversold unloved industrial positions maybe not pulling the trigger yet, but at some point in the summer certainly >> as we enter earnings season, what is is it going to take the move the needle? >> this is an interesting one, because last quarter we had a really terrific, really great earnings season, and it didn't move the market because of the gathering fears on trade there's concern as to where whether the trade wars have -- the problem with trade, and i would say this, really from the start, it was never going to get resolved this year it probably runs into next year before we stop this competitive threatening of tariffs

but i think that for the market, the earnings season should be a positive i think particularly for tech and energy you're going to see some blowout earnings with some very good earnings and as a result, it's one of the reasons why i continue to think the u.s. equity market is one of the best places to be >> guys, thank you, for joining us on a monday morning, with the dow atup 185 >> harvey winestein is leaving the courthouse, or he did leave the courthouse moments ago he was arraigned on new charges. contessa joins us with more on the story. >> reporter: yeah, so this is gloria allred holding a press conference behind me these new charges against david winestein carry a maximum sentence of life in prison the former movie mogul headed

into court to enter a not guilty plea there are two charges of predatory sexual assault and another crime of a criminal sexual act he is wearing a monitoring device and has surrendered his passport and is out on a million dollars bail but prosecutors say in manhattan, they say here has sold his connecticut home. winestein can stay at his connecticut home until next february as part of the sale conditions and the media will just turn any new york city resident into a circus winestein only goes to his doctors, his attorneys and to his job. we asked ben brackman in a news conference afterwards, and what is his job primarily he's serving as a parallel to his defense attorney and he's a brilliant maker of movies of course winestein was fired from his own company last october, that company has declared bankruptcy. and just last friday, winestein

made a deal with creditors that allows a sale to go through. winestein insists that all of the allegations against him are false and he expects to be vindicated >> contessa brewer outside of the courthouse winestein making that trip again. when we come back, xiaomi, we're going to take a look at the fourth largest wireless maker of phones in the world let's send it over to scott cone who's with us from a mystery location >> i'm many america's stop state for business we'll have another diabolical hint coming up when we started this process about six months ago, we have co aossomecrs me story lines and we'll tell you about one of them involving the nation's infrastructure when we come back we all want to know about the new thing.

you know, the new, new thing. with xfinity's retail stores, you can now see the latest. want to test drive the latest devices? be our guest. want to save on mobile? just ask. want to demo the latest innovations and technology? do it here. come see how we're making things simple, easy, and awesome. plus come in today and ask about xfinity mobile, a new kind of network designed to save you money. visit your local xfinity store today. welcome back to "squawk on the street," it is time for our etf spot light taking a look at industrials >> we were mentioning it just in the last segment about how it had been hard hit in this whole drama about potential tariff and trade wars the xli is the spiders that

tracks the s&p industrials and then also, this other first trust etf, that's much more of around infrastructure model, that also deals with big durable goods, capital goods, both of them deep underperforming. but this market had tracked them really well up until the spring and then had under performance there's a case to be made that it did relieve a lot of valuation pressures in industrials. look at the industrial stocks, boeing is the big one in the s&p 500. the pe ratio went from about 19 in january, to it has a pretty significant discount in the markets now which is 15.2. this is where you can argue that this part of the market has taken it's medicine when it comes to trade but one of the biggest knocks you had on industrials coming into this year was overvalue in

the sector boeing was really an example of that, bowing p.e. down for several months. >> we're going to export more, we're going to sell more defense to our neighbors and interestingly, they have been the most in the crosshairs. >> they have set their expectations lower and maybe that's okay for now. >> we are getting ready to countdown to america's stop states, it's our 12th annual report on state competitiveness. scott cohn, it is a mystery, but we are looking at the big issues in the study, scott, aren't we >> remember how we do this, we do ten categories of competitiveness and we weight them based on how much the states are talking about them in marketing their states to business one of the most important categories every year is infrastructure, and what's become clear as we crunch the numbers in travel around the

country, is this nation really is in an infrastructure crisis it's not just the infrastructure you see, though that's bad enou enough wi >> we have just become so used to being stuck in traffic that we accept it >> it's also the infrastructure that we all take for granted. >> we can't forget about our water ways. >> the port of houston handles about 10% of the nation's cargo, a third of the nation's gasoline and it's still recovering from hurricane harvey nearly a year ago. >> it's a storm like we have never seen before. >> the storm that flooded houston pushed millions of tons of sediment into the channel, closing the port for a week, raising the price of gasoline nationwide by 25 cents a gallon. they're digging out preparing for the future. >> ships are getting longer, they're getting wider.

>> and while the port is accommodating those ships, the funding is falling below what it takes to keep this harbor competitive. >> it is a constant battle and we have to maintain competitiveness to keep those goods flowing. >> that flow of goods has always been crucial to texas and it's competitive standpoint in america's top states for business over the years. we'll see how texas did this year and we'll see where i am when we reveal america's top states for business, and the top state for business tomorrow. here's another diabolical hint, noble prize. noble prize? what is that well, you can vote on it, tell us what you think, here's the #top states. tomorrow morning on "squawk box," we'll reveal the top five. and you can see where your state stacks up at topstates.cnbc.com.

>> a little more input >> scott says he gets it every year, he says. he gets it every year. >> he does >> two in a row. >> any guess >> too early to guess, right >> yeah, not enough. >> looks like a nice beach you're on, though. scott, thank you scott cohn, as we continue to guess here we're also keeping an eye on shalmese shares, this after pricing at the low end of the range, our emily tan has more on the chinese smart phone manufacturer from hong kong. >> xiaomi made its debut on the hong kong stock exchange today, and was the day's highest trading stock. it priced at 17 hong kong dollars after falling as much as 6%, but closing down 1%.

the company raised a billion dollars after fees and commissions, xiaomi was one of the most anticipated ipos this year, however it comes at a time when chinese markets have fallen down, linger over the u.s. trade war. and it's also the biggest tech ipo in four years since alibaba. and it has become the first stock trading with weighted voting rights. there's a growing list of tech companies looking to raise funds in hong kong back to you. >> our thanks to emily for that. guys talk about bad timing, to go public the monday after those tariffs, back and forth between china. certainly that could be part of the disappointment here. but there are also always questions as emily said about valuing this company more than an apple or a ten center a face book

>> it's an internet company broadly speaking, but the market sees it as a hardware company. >> a lot of times with an ipo over here, if the company want toss go through with it, even if the markets -- we'll take a little bit of a hit on the pricing at the outset. >> just to mention, ten cent has also filed for ten cent music. >> all these chinese listings are going to be interesting now with these trade tensions. when we come back, big changes are coming to how you consume your drinks at starbucks. we have the details. "squawk on the street. 'lbe right back with dow up 211. i'm a small business, but i have... big dreams... and big plans. so how do i make the efforts of 8 employees... feel like 50? how can i share new plans virtually?

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starbucks announcing a big change in the way you get your coffee >> that's right, starbucks announcing this morning, it's going to be getting rid of single use plastic straws in its stores around the globe by 2020. if you order a colder ice drink, with the exception of a frab che - frappuccino. plastic straws will be available for frappuccino. the company said one major reason for this change is that cold beverages are so popular, especially here in the u.s., they make up about 50% of the company's beverage mix in america, that's up 37% from just five years ago we caught up with some customers outside of times square to see what they had to say about the change >> i think it's a good thing i think they should have gotten

rid of it before that. >> it's just much more convenient >> i would say it's a good thing, you hear about straws being not so great for the environment, i think we just grab them out of habit, it's convenient >> so in making the change, starbucks become the largest food and beverage retailer to commit to getting rid of plastic straws globally. mcdonald's has begun to phase them out in uk and ireland to get rid of them here in u.s. and to begin that process did not get enough votes earlier this spring. don't forget about seattle, starbucks hometown also put a ban on plastic straws. > >> indicate as much as people might support the idea here in terms of producing waste any big change in packaging? did you get any sign of that >> reporter: just really the

only negative thing we heard was from people who like to drink their hot coffee with straws, because these new alternative material straws, they're not able to be used in hot beverages because they're going to be made of paper and they won't work the same way as plastic straws but we're here in new york city so a lot of people had good and positive things to say about it. i did try it this morning, it's pretty easy to drink your cold brew out of, so we'll have to see what happens after the rollout is complete. >> i think we're all going to be drinking sippy cups. they should be more creative as to how they -- paper straws aren't all that great, are they? >> they gave two different options, but you have to imagine a company like starbucksrollin this out on such a global scale, 28,000 locations, you would hope that they're going to get this right, because they're most certainly going to hear from customers if they don't like the

way these straws >> pretty much at the highs of the day. the rally stretching, the dow is the winner it's really those kind of trade wars caterpillar and boeing that are leading the way. we'll talk about the markets, gps global operations. >> have we kind of metabolized the trade war, that it can't necessarily pack the punch that it did before, or are we just in a lull >> i think it's temporarily your friend they haven't expanded it greatly, it's been kind of i'll match you, and you match me. so that has led the market to say, you know what that could keep the fed on hold. if we're uncertain about it, they're going to be uncertain

about it you can get great payroll numbers, we can get a variety of good things. the market is going to fear what's going on. the president is going to nato and then he's going to stop by britain. it that became much more important now that we have had these resignations, and things will be interesting market wise. what will that mean? what will it mean to the currencies and where are we going from there it's all heating up and central bankers will be talking all this week too, not just here, but all across the world >> you talk about secretary boris johnson in the uk as well as the brexit secretary leaving over the past 24 hours, what does that tell you in terms of the implications for brexit and the meaning for the markets? >> i think that the concern was that the prime minister is going a little too soft on less exit

in the brexit. and they, the concern then became that they would still, if they wanted to leave the union, it was because they thought the union had too much control over it and these resignations indicate that there is still fear that the eu will have control over aspects of the british economy so we'll wait and see if the president can hold his tongue. but it presents an amazing opportunity for the week >> you can see how investors will be watching that. we'll also see how europe dealing specifically with the auto tariffs we'll see how he decides to put in place those threatened tariffs on european autos. >> right now the market believes the opposite will happen they think that the europeans will accommodate to some degree. and even if it's only to a

slight-degree, the president will step back and claim victory, and say that will help. what's also interesting when talking about conferences, is china is going to a conference in europe. and they will be talking and negotiating with the union so on the one hand, you've got these theoretical tariffs with us going against the autos and whatever, and you might hear a lot of little sidebars from the chinese, about, well, we can work things out with you guys, and there is more and more data coming in now, suggesting that the chinese trade imbalance is no longer as big as we once thought it was so there's a lot of things playing here and they are all tugging in a way that is holding back the fed. and i think that's why you're seeing these rip roaring markets coming together here all is not safe with the world as of yet. people believe, you know what? it might work out that way >> we should mention that the president did tweet, not very long ago, regarding north korea,

but tying china into it saying china on the other hand may be exerting negative pressure on a deal with north korea because of our posture on chinese trade here's the full text of the tweet. hope not, so that's wrapping that yet again into the overall discussion about trade between our two countries. >> i'm sure he will built that in, i think to some degrees he's right, but maybe for the wrong reason i think that china is a little concerned about just how much north korea gives in, if there was suddenly a breakout in prosperity in north korea, and it began to change the way it was governed and what was going. we would almost have the same negative effect for china, having south korea on its border so they're going date of birto you've got both sides tugging either way >> s&p up half a percent

let's send it over to sue herrera. >> good morning, here's what's happening at this hour, the thais say that four more boys have been rescued. four ambulances have been seen leaving the entrance of the cave at various times early this morning. that brings the number to eight who have been rescued that leaves four boys and their coach in the cave. as we have been reporting, foreign secretary boris johnson has resigned this over the disagreement with prime minister teresa may over brexit johnson was the one who was to take the uk out of the brexit. davis resigned as brexit's secretary on sunday. secretary of state mike pompeo making the vietnam's prime minister in hanoi. he's using vietnam as a model for reapproachment to north korea. it's this third day of the running of the bulls in pa

papilloma. it happens every year. that is the update at this hour. when we come back, two former under secretaries for international trade will be here to weigh in on the brewing trade wars "squawk on the street" will be rite bac right back, the dow is up more than 230 points. don't go away. to help find the perfect place for their mom or dad thank you so much for your assistance in helping us find a place. mom feels safe and comfortable and has met many wonderful residence and staffers. thank you for helping our family find our father a new home. we especially appreciate the information about the va aid and attendance program. i feel i found the right place. a perfect fit. you were my angel and helped guide me every step of the way thank you. the senior living advisors at a place for mom partner with

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president trump set to depart tomorrow to meet with european allies amid strained trade relationships. the european union has a trade surplus of 151 million by the way, he meant billion but he did write million with the u.s. big trade barriers on u.s. goods. no this after the u.s. and china initiated competing tariffs on billions of dollars worth of

goods and the president threatened to impose $500 billion more joining us now with some unique perspective on what this trade war or fight, skirmish means for the economy and business investment we have two former undersecretaries for international trade. gentlemen, thanks to you both. stephen, let me start with you how far does it go everybody keeps asking the same question, we don't know, nothing new on china yet, in terms of new threats. >> it's not a trade war yet, david, the you know, the administration has called it a dispute, which i think is much more of an accurate description. $34 billion is still not going to have material impact on our growth, it's not going to have a material impact on inflation that being said if the president does escalate it to a $500 billion number, for sure china

and others will retaliate, if it gets to that level, it will be a real tariff war. my concern is that it will ameliorate a lot of the benefits that we're seeing because of the president's tax cuts and the -- what are you looking to try to determine that >> i think it's very clear that neither side wants a war one indication of this is we're seeing the chinese side being very measured in their response. they're not taking an approach toward the u.s. they took toward south korea over theater missile defense. they're not calling for a national boycott, they're not making it a populist republican matter what president trump says

regarding china, he always has a word of praise for xi jinping. i think it's unlikely to break out to an out and out trade war. i agree with stephen on that point. >> does it matter that the u.s. is up this career, china is in a bear market, the u.s. continues to grow jobs at 200,000 plus per month and we're heading into an earnings season of more than 20%. the market is expecting a trade war with china is the market going to make concessions as to president trump actually wants >> i think the market is saying, we're not in a trade war yet, we are seeing volatility in the market, suggesting that the market is concerned about all of this and so i think -- >> on a relative basis, they appear to be the biggest loser at least according to the stock market >> for sure, so dpfar, but the

stock market is just one more gauge. i would be concerned about the escalation going forward as opposed to what we're seeing so far, the president has been clear in that he thinks trade wars are easy to win, and he thinks that's the case with us in china, because we import from them more than we exmoport so we have more to tax than they do. i think this is misguided for three reasons, number one, president xi jinping does not have to face midterm elections or any elections at all. he controls his media so he doesn't have to answer to cnbc about his political policy choices. and thirdly, the chinese people i think are going to be much more patient and resilient to the pain of taxes and tariffs. so i really don't think this is to frank's point a fight that we want to get in, and eventually the market's going to catch up to that. >> we need to take it to china to a certain extent, if not on

trade, particularly in the stealing of intellectual property, the extent of our business as a result of that that's gone on for years, conversely, we're actually going to go to war with our european allies who are open democracies, do have free press and have been our allies kind of sustaining the world order for all these years. when you look at the overall landscape, when it comes to trade? >> i think it's really interesting that i would say, a lot of donald trump's analysis of what china's doing that's unfair or unhelpful is spot on they do have market segments that are closed off, they are subsidizing other segments like steal, where they're not fading, they do have compulsory laws by the same token, if that's your problem, if that's the

challenge you want to try to fix, don't gratuitously fix your ro roar trading partners, don't go after the european autos, but focus your efforts on where the impact will be the greatest. so ei think he's done a reasonably goreason - >> frank and stephen, we do want to go over to london where prime minister teresa may is addressing parliament following the resignations just this morning of her foreign minister and over the weekend her brexit minister >> finally, as i have set out in this house before, our proposal also includes a far reaching security partnership, that will ensure continued close cooperation with our allies across europe, while enabling us to further a foreign defense

policy this is not only good for jobs, but for the safety and security of our people at home and in europe too some of this is consistent with the -- it is the manifesto said that and i quote, as we leave the european union, we will no longer be members of a single market or customs union, but we will seek a deep and special partnership, including a comprehensive free trade and customs agreement and that is exactly what the proposal agreed by the cabinet seeks to achieve. what we are proposing, is challenging for the eu it requires -- it requires them to think again to look beyond the positions they have taken so far and agree on a fair balance of rights and obligations. because that is the only way to meet our commitments to avoid a hard border between northern

ireland and ireland without damaging the constitutional integrity of the uk and while respecting the result of the rev republican dumb, it's a balance that we have established over the last 30 years with some of the largest trading and security partners it's a bold proposal that we will set out more fully in a white paper on thursday. and the eu will intensify negotiations over the summer so that we can get the future relationship i firmly believe is in all our interests in the two years since the referendum, we have had a spirited national debate with robust views echoing around the cabinet table the same as our breakfast tables around the country. over that time, i have listened to every possible idea and every possible version of brexit mr. speaker, this is the right

brexit leaving the european union on the second of march 2022 taking back control of our borders and the jurisdiction of the cjeu and the uk restoring the supremacy of u.s. courts, no more sending vast amounts of money to the eu, instead spending on our domestic policies like our long-term plan for the nhs. focussing on services where the uk is world leading, no hard order between northern ireland and ireland or between northern ireland and great britain. a parliamentary block on relations. the freedom to strike new trade deals around the world an independent foreign and defense policy but not the most distance relationship possible with our neighbors and friends, a new deep and special partnership, frictionless trade in goods, fair commitments to high standards so we continue to

promote fair trade and continued security conditions to keep our people safe. this is the brexit that is in our national interest, this is the brexit that will deliver on the democratic decision on the british people, it is the right brexit deal for britain, and i commend this statement to the house. >> i want to thank the prime minister for an advanced copy of this statement and to share her condolences to the friends and family of dawn sturgis, we're over two years on from the referendum two years. >> we just heard from teresa may speaking from parliament in london the pound now is turned sharply, it's recovering from an earlier down turn in the british pound i couldn't tell if they are mocking her, it's always so much

theater to watch her >> i wouldn't use the word mocking her, but it's not supporting pressure at this stage, so the headline of what she said there for me, which was commonly gone on friday after her checkers deal, she said we must up our plans for a no deal brexit, that might be why you're sealing the pound sell off we do have to be prepared for a no deal, clearly she then stuck to the plan she agreed or felt she agreed on friday and didn't back down on it the question now is whether further resignations do follow at which point her position would be even more threatened. just as a reminder we have had now seven cabinet members resign from our government since november. three crucially, brex brexiteern the last few hours, david davis, and boris johnson. she said she'll replace boris

johnson with a new secretary very shortly for that to change, you need 15% of the conservative party m.p.s, which is 48 of them send a letter to the chairman of the 9 1 1992 committee vote of confidence in the government chances of that happening have risen dramatically. >> talking about all out election >> no, another conservative party leadership contest within its own party in the same way when she took over from david cameron without general election, so that would require 48 mps, 15% of the mp total, and chances of that have risen the most high profile brexiteers, to now going against the prime minister, clearly is less of a daunting thing to do, given the high profile ones that have just done that. >> the ftse is surging almost

100% you're an expert on international trade. what do global investors need to know about this situation? >> i think we're in for a bumpy ride could argue the china tariff issues are part of the pop list story, part of the global populations in the liberal democracies rejecting the world order that david referred to in the last 50 years. >> if oennly the idea of brexit left with david davis and boris johnson, he was saying it could be potentially turned away the other side, you were right to bring up an hour ago, you look at who is likely the next leader of the conservative party. four of the top five are

brexiters. the market in that betting scenario is suggesting if she loses her position, not the case at the moment, then the government could lead to a more hard brexit scenario. >> it sounds like a lot of uncertainty for politics and economics. what's your message to global investors as president trump is set to visit this country this week >> what's interesting is that we could say for most of the 20th century, two nations that were the greatest force for international stability and architecture were united states and united kingdom now they seem to be forces of instability. what donald trump does rattles markets and what uk is doing business wants stability and

predi predictability >> we are out of time for now. thank you for being with us. with the dow up a percent, squawk on the street will be back whoooo. when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want.

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a group of once beaten stocks a look at the rally on trading nation more "squawk on the street" coming up.

shared of procter & gamble, from buy to hold from jefferies. slowing market growth, emerging markets volatility and stronger u.s. dollar. guys, i don't think they brought anything new to the argument, but clearly procter & gamble has business challenges, and newest board member elected to make changes to get those changes, like slimmer structure

>> stock is up about 10% in two months seems like the analyst says the fundamental story hasn't changed, let's downgrade here. we're not seeing much change. >> already 5% premium because of the activist incentive that's very much a story to continue. hans tung weighs in next the dow up 242 points. well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture.

>>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

good morning it is 4:00 p.m. at 10 dimon street in lonlddon, 11:00 a.m. here on wall street. ♪ ♪ ♪ ♪ good monday morning. i am jon for