special, magnificent victory, and it was total victory prime minister may and i have just come from a very productive nato summit that was truly a productive summit. my top priority was getting other nato members to pay their full and fair share, and the prime minister was right there with me. i want to thank you, prime minister, for the united kingdom's contribution to our common defense the uk is one of the handful of nations, five out of 29, not good but it's going to get better really fast in addition to the united states meeting the 2% gdp minimum defense spending commitment. during a summit, i made clear all nato allies must honor their obligations and i'm pleased to report we have received substantial commitments from members to increase their defense spending and do so in a more timely manner in our meetings today, the prime

minister and i discussed a range of shared priorities, including stopping nuclear proliferation i thanked prime minister may for her partnership in our pursuit of a nuclear-free north korea. she's been a tremendous help the prime minister and i also discussed iran we both agree that iran must never possess a nuclear weapon, and that i must halt and we must do it and i'm going to do it and she's going to do it and we're all going to do it together. we have to stop terrorism. it's a scourge we have to stop terrorism. the funding of terrorism has to stop and it has to stop now. i encourage the prime minister to sustain pressure on the regime, and she needed absolutely no encouragement, because she, in fact, encourages me we're doing that and we're doing that together.

very closely coordinated the united kingdom and the united states are also strengthening cooperation between our armed forces who serve together on battle fields all around the world today the prime minister and i viewed several u.s./uk special forces demonstrations. we saw some demonstrations today, frankly, that were incredible the talent of these young, brave, strong people we saw that the royal military academy seamless cooperation between our militaries is really just vital to addressing the many shared security threats we have threats far different than we've ever had before they've always been out there, but these are different. and they're severe and we will handle them well we also recognize the vital importance of border security and immigration control in order to prevent foreign acts of

terrorism. border security is a national security problem, and in the united states, we are working very hard to get the democrats to give us a couple of votes so we can pass meaningful and powerful border security i also want to thank prime minister may for pursuing fair and reciprocal trade with the united states. once the brexit process is concluded and perhaps the uk has left the eu, i don't know what they're going to do, but whatever you do is okay with me. that's your decision whatever you're going do is okay with us. just make sure we can trade together that's all that matters. the united states looks forward to finalizing a great bilateral trade agreement with the united kingdom. this is an incredible opportunity for our two countries and we will seize it fully. we support the decision of the british people to realize full

self-government and we will see how that goes. very complicated negotiation and not an easy negotiation, that's for sure as strong independent united kingdom like a strong and independent united states is truly a blessing on the world. prime minister may, i want to thank you, again, for the honor of visiting the united kingdom, a special place. my mother was born here. so it means something maybe a little bit extra maybe even a lot extra we had a wonderful visit last night. i think i got to know the prime minister better than any time. we spent a lot of time together over a year and a half, but last night we really -- i was very embarrassed for the rest of the table. we just talked about lots of different problems and solutions to those problems. and it was a great evening as we stand together this afternoon, we continue a long tradition of friendship, collaboration, and affection between ourselves and also between our people the enduring relationship

between our nations has never been stronger than it is now so, madam prime minister, thank you very much. it's been an honor. >> thank you [ applause ] >> we're going to take four questions each i'll start off with laura. >> reporter: thank you very much, prime minister, and mr. president. mr. president, you seem to have changed your tune from what you said earlier this week when you said that on the current brexit plan that would probably kill the possibility of a trade deal with the uk. our countries are meant to have a special relationship, yet you publicly criticized the prime minister's policy and her personally for not listening to you this week. is that the behavior of a friend prime minister, isn't the problem for you that some of the things mr. trump has said about your brexit plan are right it will limit the possibilities of doing trade deals easily in

the future can you, also, tell us how it felt for him to criticize in the way he did in that interview. >> maybe i'll go first i didn't criticize the prime minister i have a lot of respect for the prime minister unfortunately, there was a story that was done, which was, you know, generally fine, but it didn't put in what i said about the prime minister and i said tremendous things and fortunately, we tend to record stories now so it for your enjoyment, if you would like it. we record when we deal with reporters. it's called fake news. we solve a lot of problems with the good old recording instrument but what happens is that, look, the prime minister, as i said, she's going to make a decision as to what she's going to do the only thing i ask of theresa is that we make sure we can trade, that we don't have any restrictions we want to trade with the uk and the uk wants to trade with us. we're, by far, their biggest trading partner, and we have,

you know, just a tremendous opportunity to double, triple, quadruple that if they're going a slightly different route, and i know they want independence. it's going to be independence it's just your definition. but if they're going to go a certain route, i just said i hope you're going to be able to trade with the united states i read reports where that won't be possible, but i believe after speaking with the prime minister's people and representatives of trade experts, it will be possible so based on that -- and based on trade in general, and our other relationship, which will be fine, but the trade is a little bit tricky we want to be able to trade and they want to be able to trade. and i think we'll be able to do that okay i think she's doing a terrific job, by the way. >> thank you, mr. president. just to confirm what the president has said, laura. there will be no limit to the possibility of us doing trade deals around the rest of the world once we leave the european union on the basis of the

agreement that was made here at checkers and i put forward to the european union to be clear, that is an agreement that delivers on the brexit vote that we had in 2016 here in the uk that delivers, what i believe, is at forefront of people's minds when they were voting to leave the european union the end of the negotiations, we'll ensure that free movement will come to an end. the jurisdiction of the european court of justice will come to an end. the sending of vast sums of money every year to the eu will come out of the end. we will ensure by not being in the customs union that we are able to have an independent trade policy and do those trade deals around the world and as you've heard from the president, the united states is keen for us we're keen to work with them, and we will do a trade deal with them and with others around the rest of the world. mr. president, would you like to -- >> jonathan, go ahead.

>> reporter: mr. president, two questions. the first one, now your british trip is coming to a close. could you tell us three or four things you hope to achieve in your meeting with vladimir putin, and the second question, what is the benefit to america of having tens of thousands of american troops stationed in europe thank you. >> so i'll be meeting with president putin on monday, and we go into the meeting with a tremendous meeting that we had with nato. most of europe reported incorrectly. it was testy at the beginning but at the end everybody came together and agreed to do what they should do and, actually, what they've committed to do, which you fully adhere to. you didn't have a problem. some people did. and we left that meeting, i think, probably more unified and wealthier as a group than ever before we go in strong.

we'll be talking to president putin about a number of things ukraine. we'll be talking about syria we'll be talking about other parts of the middle east i will will be talking about nuclear proliferation, because we are massively, you know, you know what we've been doing we've been modernizing and fixing and buying and it's just a devastating technology and they like, wise, are doi --s are doing a lot. it's a very, very bad policy we have no choice. but we are massively big and they are very big. and i'll be talking about nuclear proliferation. that would be a great thing. not only us, not only russia and the united states, it's other countries, also. but we're the two leaders. we would be the leader they would be second, i guess, china would be third i think we'll all be talking about that

to me, jonathan, i think that would be a tremendous achievement if we can do something like nuclear proliferation. we'll be talking about other things i know you'll ask what will we be talking about meddling i'll bring that up i don't think you'll have any "you got me. you never know what happens. i will, absolutely, firmly ask the question hopefully we'll have a good relationship with russia you know, i think the prime minister would agree we have a good relationship with russia and with china and with other countries. that's a good thing. not a bad thing. hopefully that will happen, jonathan okay [ inaudible question ] >> the troops where? where? >> well, look, there is a benefit. there's a psychological benefit and a military benefit there's also a benefit not to do it i mean, i was prepared to do things that would have been

somewhat harsh yesterday a lot of people were surprised that nato came together at the end, and it wasn't a threat. it was an unfair situation the united states was paying, you know, anywhere from 70 to 90 and i choose 90, depending on the way you want to calculate. we were paying 90% of the cost of nato, and nato is there for europe much more so than us. it helps europe. no matter what our military people or your military people say. it helps europe more than us that being said, it's a great unifier and we have 29 countries and there was a lot of love in that room. so i think -- and we have a lot more than, jonathan, when you say 10,000 troops. we have a lot more than 10,000 troops i thought you said 10,000. in germany we have 52,000. we have a lot of troops in europe that being said, we're helping europe, they're helping us, we're all together and i'm fine with it.

>> thank you. >> importantly, they're paying their way in a much more rapid fashion. >> thank you francis? >> reporter: prime minister, i wonder if you agree with the president of the united states that immigration has damaged the cultural fabric of europe and, president, perhaps you can elaborate. what do you mean by that >> i think it's been very bad for europe i think europe is a place i know very well, and i think that what has happened is very tough it's a very tough situation. you see the same terror attacks i do we see them a lot. we left some incredible young men and women and they were showing us cells and they were showing us things that, frankly, 20 years ago nobody thought about, probably, a lot more recently than that nobody even thought about. i just think it's changing the

culture. i think it's very negative thing for europe i think it's very negative i think having germany and -- i have a great relationship with angela merkel. great relationship with germany. but i think that's very much her germany. i think it's very much her other parts of europe. and i know it's politically not necessarily correct to say that. but i'll say it and i'll say it loud and i think they better watch themselves because you're changing culture you're changing a lot of things. you're changing security look at what is happening. you take a look. look at what is happening to different countries that never had difficulty, never had problems it's a very sad situation. it's very unfortunate, but i do not think it's good for europe i don't think it's good for our country. as you know, we're far superior to anything that happened before but we have bad immigration laws i mean, we're doing incredibly

well, considering the fact we virtually don't have immigration laws we have laws that are so bad, i don't even call them laws. i call them -- it's just like you walk across the border you walk across the border put one foot on the land and you're tied in a lawsuit for five years it's the craziest thing anyone has ever seen. i would make that recommendation to europe. i've made it very loud and clear. i made it yesterday. 29 countries total and that's the way i feel. >> the uk has a proud history of welcoming people who are fleeing persecution to our country we have a proud history of welcoming people who want to come to our country to contribute to our economy and society. and over the years, over all immigration has been good for the uk it brought people with different backgrounds and outlooks to the uk and has -- we've seen them contributing to our society and to our economy of course, what is correspondent we have control of our borders what is important we have a set

of rules that enables us to determine who comes into our country, and, of course, that is what, as a government, we have been doing for a number of years and be able to continue to do in the future -- >> reporter: spent the week taking on nato allies criticizing prime minister may on her own soil. i wonder, are you giving russian vladimir putin the upper hand. you're challenging the aligns he seeks to break up and destroy. >> that's dishonest reporting. that's nbc which is possibly worse than cnn let me explain something we have left nato with more money. with more unity, with more spirit than nato probably has ever had we have a strong and powerful nato when i became president we

didn't we had people that weren't paying bills, weren't following their commitments. in addition, we become an oil exporter, which would not have happened under the past regime or a new regime, if it weren't us we have built up our military, $700 billion, and next year, as you know, $716 billion when you look at what we've done in terms of russia, i guarantee whoever it is in russia, they're saying, oh, gee, do we wish that trump was not the victor in that election we have been far tougher on russian than anybody anybody. and probably than -- look, i'm not going to down a hundred years but certainly we have been extremely tough on russia. including the fact that when the prime minister called, when they had a horrible thing happen right here, very close by, she asked would i do something and maybe i would let you tell the number and it was far greater than anybody else, including the

prime minister we expelled how many people? >> 60. >> yeah. 60 germany did three, as an example. germany, big country, powerful country. they did three the fake news doesn't want to talk about it. so it really is -- we have been very strong on russia. with all that being said, if i had a relationship with putin, i don't know him, i met him twice maybe three times. two and a half times most of you were there when we did. we met them at the g 20, and if we could develop a relationship, which is good for russia, good for us, good for everybody that would be great if i had a relationship with china, you know, we're in a big trade situation with china, as an example we're behind every year for many years. $500 billion it's not going to happen anymore. so if we got along with countries, that's a good thing if we get along with china and russia, that's a good thing. not a bad thing.

[ inaudible >> reporter: i take your point -- [overlapping speakers] >> yes, there was fighting because i said you got to put up more money we have to be stronger we have to be unified. the headline he sees isn't what is happening during the morning. the headline he sees is what happened in the afternoon when we came together as one. they're putting up billions of dollars. i'll give you an example, and you know this as a confirmed number, $34 billion more was raised since i became president in nato. that means that the other 28 countries have put in $34 billion more into nato do you think putin is happy about that i don't think so we have a lot of false reporting in this country. i don't think you have that in your country, do you, prime minister go ahead and ask the prime minister >> reporter: president trump told "the sun" i think the deal she is striking on brexit is not

what the people voted for. i want your reaction to boris johnson being a great prime minister. >> the deal we put on the table, the agreement we put on the table, as i said earlier in response to laura's first question this does deliver on the vote of the british people the british people voted to leave the european union and i heard the turn of phrase that the president used earlier but let me be clear. we'll be leaving the european union and we're leaving on the 29th of march, 2019. as we leave the european union, we'll be delivering on what people voted for, an end to free movement, an end to sending vast amounts of money to the european union every year, an end to the ju coming out of the common fisheries policy, out of common agricultural policy, and ensuring by coming out of the customs union we can have an independ trade policy that

enables us to negotiate trade deals with the united states and other countries around the rest of the world that's what the british people voted for, and that's what we will be delivering we will deliver it in a way that protects jobs and livelihoods and meets our commitment to the border in between north ireland and ireland. robert >> i'll respond. they said unrelated. not related. we have the tape you can ask sara get it from sara we taped the entire interview. they asked about boris jaucohnsn i said he would be a great prime minister i think he thinks i'm doing a great job. i am doing a great job, that i can tell you in case you haven't noticed. but boris johnson, i think, would be a great prime minister. i also said that this incredible woman right here is doing a fantastic job. a great job. i mean that. and i must say that i have

gotten to know theresa may much better over the last two days than i've known her over the last year and a half yesterday i had breakfast, lunch, and dinner with her i said what are we doing tomorrow which is today? you're having breakfast and lunch with theresa may and i'll see you later on i've gotten to know her better than ever. i think she's a terrific job and brexit is a very tough situation. that's a tough deal between the borders and the entries into the countries and all of the things. so she's going to do the best. the only thing i ask is that she work it out so that we can have even trade because we don't have a fair deal with the european union now on trade they treat the united states horribly, and that's going to change if it doesn't change, they're going to have to pay a big price. they know the price. they're coming over on july 25th, to see me, hopefully we can work something out they have barriers that are beyond belief.

barriers where they won't take our farm products, they won't take many of our things, including our cars they charge us tariffs on cars far greater than we charge them. you know these things. and last year, theresa, we lost $151 billion with the european union. so we can't have that. we won't have that any longer. okay thank you. >> robert? >> reporter: mr. president, how would you characterize your relationship with the united kingdom? more special than with other countries? by the way, on foreign products, i think on the prime minister's deal, you wouldn't be allowed to export many of your farm products to the uk would that be a problem for you? prime minister, the president said yesterday that he gave you advice about how to negotiate brexit then you didn't take that advice i wondered what that advice was and whether you have any regrets about not taking it. >> robert, lots of people give

me advice about how to negotiate with the european union. my job is getting out there and doing it that's what i've done. as you know, as we've been going through the negotiations, there are more skeptical voices, perhaps from some of you before me today about whether we would achieve what we would achieve in december we got that joint report and that joint agreement on citizens rights and the other issues. we got the implementation period in march now we've put forward a proposal that the two proposals the european commission had put forward are not acceptable to the uk we have said no to those that's why we have put our own proposal on the table for the future like i've said in answer to other questions, delivers on the brexit deal. but, also, ensures we can have smooth trade with the european union in the future. in terms of the united states, in trade with the united states, will thereby questions on some of the trade issues about the standards we have here for certain products and how we want to deal with those in the trade deal that will be a matter for the

negotiations. >> so i would say i give our relationship in terms of grade the highest level of special we start off with special. i would give our relationship with the uk -- and now especially after the two days with your prime minister, i would say the highest level of special. am i allowed to go higher than that i'm not sure it's the highest level of special. they're very special people. it's a very special country. as i said, you know, i have a relationship because my mother was born in scotland so very important. as far as the advice, i did give her a suggestion wouldn't say advice. i think she found it maybe too brutal i can see that but i don't know if you remember what i said. i did give her a certain amount of -- i gave her a suggestion. not advice i wouldn't want to give her advice i would give her a suggestion. i could fully understand why she thought it was tough maybe someday she'll do that if they don't make the right

deal, she might do what i suggested she might want to do it's not an easy thing look at the united states how the european union has taken advantage systemically of the united states on trade it's a disgrace. it's not an easy negotiation john roberts, go ahead no no john roberts go ahead. cnn is fake news i don't take questions from cnn. cnn is fake news i don't take questions john roberts of fox. let's go to a real network. >> thank you, mr. president. some people have suggested that relations between the united states and russia are at their lowest point since the end of the korean war you have stated many times you think it's important to have a better relationship with russia. is there any way for relations between the united states and russia to improve as long as putin continues to occupy crimea >> i think so.

i think i have a good relationship with president putin, if we spent time together i may be wrong other people said that and it didn't work out. i'm different than other people. i think that we're being hurt badly by the -- i would call it the witch hunt i would call it the rigged witch hunt after watching some of the clips. i didn't get to watch too many because i'm here it's a different time zone, to put it mildly. after watching the people, the man that was testifying yesterday, i called it the rigged witch hunt. i think that hurts our country and it really hurts our relationship with russia i think that we will have a chance to have a good relationship with russia and very good chance -- very good relationship with president putin. i would hope so. >> what is your thinking about improving relations with russia while they continue to illegally occupy another country >> well, that was, yes, they do. and if you're talking about crimea, primarily, yeah. but, again, president obama failed very badly with crimea. i don't think he would have done

that if i were president he took over crimea and he actually took it over during the obama administration i think you will admit [ inaudible we'll have to see what happens i'm not bad at doing things. if you look at what i've done compared to what other people have done 160 days in, there's nobody even close, i don't believe. let's see what happens this was an obama disaster and i think if i were president then, he would not have taken over crimea. during the obama administration, he essentially took over crimea. i don't think he would have done it with me as president. >> reporter: if i could follow up you have taken on many things, you say. you were left with by the obama administration you say you have fixed. this is something you inherited from the obama administration. the occupation of crimea how do you fix it? >> we'll see what happens. i mean, it's a process if i knew, i wouldn't tell you because that would put us at a

disadvantage, but we'll see what happens. we'll see how it all melds out i want people to understand that crimea was, you know, it was another bad hand i got handed north korea we're doing very well. you saw the letter yesterday we're doing very well. look, we haven't had nuclear testing. we haven't had missile launches. we haven't had rocket launches some sites were blown up and we got back our hostages, our prisoners, even before i left. so a lot of good things are happening. there's a good feeling there it's a process it's probably a longer process than anybody would like. i'm used to long processes, too. we haven't taken off the sanctions. the sanctions are biting we haven't taken them off. but when it comes to crimea, that's something i took over, john there's nothing much i have to say about it other than we will look at that just like i'm looking at many other disasters i've taken over. i've taken over a lot of bad hands and i'm fixing them, one by one and i know how to fix them

okay >> reporter: president trump said he made discussions on what to do about brexit, could we ask you if you would make a substitution suggestion how to handle the meeting with putin. >> it's simple we've been talking about this what is important with meeting with president putin and i welcome the meeting. but what is important is that the president goes into this as he is doing for a position of strength and, also, from a position of unity in nato. i think that is very important, obviously. we've discussed the activity of russia in many different ways, including that use of a nerve agent here on the streets of the united kingdom, and the impact that has had i welcomed, as i said earlier, the strong response the united states gave to that. we had response from around the world, but i think the important thing is, in particularly following the nato summit, the president is going into this meeting with president putin from that position of strength

and a position of unity around that nato table. jason? >> reporter: thank you "the daily mail. prime minister, in the comments yesterday you sort of sided with it donald trump, really, and said this deal that you signed here at chequers is bad for trade. why can't you convince your own mp it's a good idea. mr. president, you said brexit is a tough situation what would you do? would you be at the point where you would walk away from the talks to show them you mean business >> on the issue of trade deals, as i've said earlier what we're negotiating and when we come out of the negotiations, i want to see, and we will have, our ability independent trade policy to set our own tariffs, to be the independent member of the wto, to be able to negotiate trade deals around the world we're looking, obviously, at the united states. we're looking at other areas, as

well as we've said, we're looking at issues like the possibility of some trade deals around the pacific area, too. we will negotiate those trade deals. i want to have a good trade arrangement with the european union. this isn't an either/or. we don't replace one with the other. actually, the united kingdom is looking for and can negotiate a situation where we can have a good trade relationship with the european union, a great trade relationship, a good trade relationship with the united states and around the rest of the world, as well that will be good for jobs, good for people's livelihoods, good for prosperity in the uk. >> if you remember, i was opening turn berry the day before brexit, and we had an unbelievably large number of reporters there. everybody was there because of brexit they showed up on the ninth hole overlooking the ocean and i said what is going on all they wanted to talk about is brexit they asked for my opinion. i said i think brexit will

happen it did happen. then we cut the ribbon and the reason i felt it was going to happen is because of immigration. one of the reasons i got elected is because of immigration. i felt that brexit had the upper hand most people didn't agree barack obama said, well, that your country will have to get on the back of the line if that happened which i thought it was a terrible thing to say, frankly but i said i thought it was going to happen. and it did happen. i also think that as far as negotiating the deal, i probably would have done what my suggestion was to the prime minister she can always do that she can do what i suggested to her. [ inaudible you can't walk away. if she walks away, that means she's stuck. you can't walk away. but you can do other things. she can do what my suggestion

was. my suggestion was respectfully submitted. she'll do well i think she's a tough negotiator i've been watching her she was a tough negotiator she is a smart and determined person she left a lot of people in her wake she's a smart, tough, capable person i would rather have her as my friend than enemy. that i can tell you. [overlapping speakers] >> jeff maison from reuters. mr. president. >> you look great with the hat. >> thank you i don't have a solid set of hair go ahead. >> we'll show -- >> oh, boy >> i like you better without the hat. >> there we go >> reporter: going into your

meeting with president putin on monday, sir, you mentioned the nuclearzation and you mentioned syria. can you say what your message will be to him on syria? what would you like him to say, especially given assad's gains in the country recently. and, also, on denuclearzation, can you spell out how you expect it to happen in terms of treaties and slow talks. >> we're not the only ones that have nukes it would be a slow process, but for the world, it would be us and others would have to come along simultaneously, obviously. but i think that when i -- when the meeting was arranged, we both wanted the meeting. when the meeting was arranged, it was, from my standpoint, i didn't go in with high expectations you may come out with something exceptional. but the proliferation is a tremendous, i mean, to me it's the biggest problem in the

world. i understand nuclear look at mr. john trump at m.i.t. he was a professor i used to talk nuclear with him, and this was many years ago. it's the biggest problem, in my opinion, this world has. if we can do something to substantially reduce them, i mean, ideally get rid of those maybe that's a dream but certainly it's a subject that i'll be bringing up with him. it's also very expensive thing but that's the least important if we can do something i was telling the prime minister before i didn't go in with high expectations i mean, we have a political problem where the united states we have the stupidity going on it makes it hard to get something with russia. and anything you do it's going to be, oh, russia. he loves russia. i love the united states

i love getting along with russia and china and other countries. and it will certainly be, jeff, something we bring up and talk about. i think, to me, it's such a big problem. syria, of course, i'm going to bring it up and i'm going to bring up ukraine and other subjects. >> that was another one. the red line in the sand was a problem for us. >> like president putin to do now under your watch. >> i'll tell you what i'm going to do. i'm going to talk to him about that before i talk to you. if something happens, great. i'm not going in with high expectations but we may come out with surprising things but relationship is very important. and having relationship with russia and other countries, as i said, a number of times, and i've been saying, actually, for years, and i've been saying it during my campaign having relationships with other countries is really a good

thing. i think that -- i can't really over estimate how big the meeting was yesterday with nato. we went with something that was an unfair situation to something that is unified. i mean, they had spirit. those people were getting up and in the end, well, we are committing you know, it's not like they can go immediately back. they have to go through the parliaments and their congress and representatives or whatever form they have they centhave to go through an approval process every person in that room was gung ho to get it done get the money in even before that, as you know, $34 billion and i think the secretary general is doing a terrific job, by the way, he said yesterday that because of president trump, we've taken in $34billion more for nato

i think, again, that's nothing that my opponent would have done my opponent would have kept going down you see what is happening over the years. the numbers were going down. now the number is way up and now it's going up higher and that was, and he will tell you that, that was because of me >> reporter: do you share those concerns about the pipeline between russia and germany to follow up on the questioning my colleagues. did you feel undermined by president trump's comments in "the sun" about your brexit plan and boris johnson? >> no, look. i'm very clear that the brexit plan will deliver on what the people voted for we've had an excellent discussion here about the possibility and the intent we both have to have an ambitious trade deal going forward

and i think that is exactly where we'll be going that's important for both of our countries, actually. we stand, we have stood shoulder to shoulder with the united states in many different ways over the years, as a result of our special relationship and we will show that even further through the trade arrangements we will put in place in the future. >> just to finish off, jeff, i have to say i said to the paper "the sun," and they seem like two nice people, but i said that theresa may is a -- i said -- did i say nice things about theresa may? >> if you reported them, that's good where? on the internet? i said very good things. thank you very much for saying that i said good things about her i didn't think they put it in but that's all right they didn't put it in the headline i wish they put it in the headline that's one of those things

she's a total professional i said i want to apologize i said such good things about you. she said don't worry, it's only the press. i thought that was professional. i might add, well -- don't worry, they've been doing it to me and i do it to them i do say, though, the pipeline you asked about the pipeline to me, it is a tragedy i think it's a horrific thing that is being done where you're feeding billions and billions of dollars from germany, primarily, and other countries, but primarily from germany into the coffers of russia when we're trying to do something so that we have peace in the world i think it's a horrible thing that germany is doing. i think it's a horrible mistake. and as much as i like angela, i was open in saying it. i think it's a horrible thing that you have a pipeline coming from russia and i believe that germany is going to be getting

50, 60, or even 70% of their energy from russia how can you be working from peace and strength when somebody has that kind of power over your country? i don't think it's good you've given up your strength i think it's bad for germany, it's bad for the german people and i don't think it's good for nato, if you want to know the truth. okay >> we said we would take four questions each and we have taken four questions each we've been talking to the germans about this and other countries within the european union about this we continue to sit around the eu table, this will be something discuss at the european union table and we'll make our views known there. mr. president, thank you

angela merkel made her position clear. we're talking to other countries within the european union. i think the president said earlier in a response to a future meeting he was going to have he would tell you what was happening after that meeting we'll see what comes out from the european union. >> thank you very much thank you. [ applause ] welcome to "squawk on the street." i'm david faber along with jim cramer we're live from the new york stock exchange the opening bell rang about 13 minutes ago. we'll get to that in a moment. you've been listening to almost an hour long press conference from president trump and uk

prime minister theresa may anything stand out to you from the comments, of course, focussed, as you would expect on nato and brexit. on the president's interview with "the sun" that took place yesterday. in which he criticized the brexit plan that was pursued by the prime minister >>well, look i think he walked to back to harsher comments. i think there was a bit of a surreal aspect to that he's saying that's not really what i said. even though it was what he said. but, at the same time, there is clear that you can say, wait a second it's out of context it's a special relationship. >> and he's heading to meet with putin in the not too distant future i think monday. >> yeah. the end of the press conference was focussed about the pipeline.

something you're familiar with in terms of natural gas moves around this planet the one, of course, between russia and germany and the president sparing no, you know, critical horrific is the words he used. >> he did said something that was interesting about nato he said in the time since the nato alliance has committed to a greater degree of spending there isn't a count of other worldly aspect of the president saying that he thinks he has a great relationship and then he criticizes i love you everything you do is wrong. it's difficult for those who say i'm a student of russia and i'm trying to think is he saying anything good about russia in he's saying the things about the russian people and putin and then he castigates putin for

being, basically, doing horrific things and i think it's very hard to pin him down give the fact that the media struggles so hard. >> we have a lot to talk about when it comes to this day here including bank earnings. before we get to that, we'll bring in jeff cudmore at the site of the news conference. jeff >> reporter: yeah. hi, david and jim. i would say from a downing street number 10 perspective, the british will see this as a victory snatched from the jaws of defeat. all morning we've been talking about that very embarrassing for theresa may interview and what donald trump's perspective was on a future of the trade deal between the united states and uk as jim points out, donald trump seems to have walked back many of those issues from that interview he did with the sun and he talked about a higher

level of special relationship. now that will be music to the ears of the politicians and the conservative party who can now go back to the country and say, look, we can continue to use the prospect of a good trade deal with the united states as leverage to get more from the uk in negotiations over brexit. so i think number ten will be happy with the nature of that press conference to the rest of us, it felt like alice in wonderland. believing able to believe two opposite things before breakfast. what he said in the press conference seemed different from what he appeared to told "the sun. back to you. >> yeah. it's worth pointing out it was on the record, i believe, taped interview with "the sun. it's a murdoch-owned publication. it's worth pointing that out. >> that's a good segue are you -- >> no. we're going to segue to frost that's what we're doing. we'll bring in wilfred frost

from london for a bit more here, as well. >> i echo what jeff said particularly on the trade deal that was the headline out of the "sun" interview. supposedly mr. trump didn't think a free trade deal was possible with the uk based on the current plan and the president on that said the only thing i ask of theresa may is make sure we can trade. we want to double, triple, quadruple trade levels he said speaking to the prime minister over the last few days, i understand that will be possible the prime minister echoed that and said there will be no limit to trade based on her plans. so it seems that both agreed from the last 48 hours that should be possible the crucial thing, of course, for theresa may is a significant portion of her party here disagree with her. they've tabled amendments to her bill, which will have to be voted on next week which will be another big test

to her government domestically the rhetoric vote today versus "the sun article." significant protests going on here in london so still some negativity around the visit here in london guys >> thank you we see the pictures on the left of the screen. the protests taking place. jim, now let's get to some of the news of the day. we got earnings from three of the large banks, citi, wells fargo, jpm all the stocks are down. wells seemed to be the worst of the three. >> okay. i want to say there's disparity between the parkinbanks today. the etf advance is strong. it's strong with pnc is a remarkable quarter the stock is down very badly it tells you there's a rationality to the trading

wells was a big disappointment for me. >> what happened do you have a sense at this point? >> conference calls are staggered here we have information from jpmorgan the others and application price line down. the expenses went up and i have to tell you that that's one that i am shocked at frankly. >> do you think there will be some sort of overhang here, that's hurting their ability to generate new business. >> anybody can speak to anything, as we just heard from the president. they can tell you that's completely wrong and we can listen, but i think you are what your record says you are and these numbers are not good jpmorgan, i think it was an incredible quarter

i can nitpick on that quarter, but there was so much that was good a lot of talk about the u curve on a conference call but i think these are different animals and jpmorgan i think is a buy, wells like i said, i'm kind of wrong, i have codone a t of work on wells a lot of down sequential numbers, but year over year, just terrible. big miss. >> jpmorgan opened up a bit. we're only 20 minutes into trading right now. we're talking, what, 14% return on equity, 17% return on tangible common equity, you liked the quarter from jpmorgan. >> i liked it very much. the market's saying i'm wrong, but if we look at these companies after the second half of the year, you might regret selling these at down, citi, blowing it's actual book value, not the tangible it seems a mistake, because mike

cor corvast. jpmorgan, it's very difficult for people to say anything other than, you know what? this is -- i don't really care about jpmorgan, this group is bad, let's get rid of the group. >> a good quarter, it does trade at a multiple book >> it's obviously considered the class of the field, it interesting because citi's considered to be the worst of the field, citi is fine. look, it was fine. the reaction to these is almost as if, you know what wow. these quarters are really bad. i'm going to sell them can i remind people that citi was at 80 in january now it's at, it's $1.50 off it's 52-week low. i'm going to be wrong today to

say buy when i see corvette in there, and you start seeing the buy that they'll do, it's very, very good david the branches at wells fargo were disappointed. i mean really disappointed look, wells is an eye opener the stock has moved the most in the last few weeks, because i think people realize, look, the franchise is fine. but even with wells, we see some things that financials are going to get better. but what people are saying with these numberins is that the economy has slowed and you don't want to own them i come back and say these are cash machines, but people are reading through that the fed has already eroded things, that the economy is not as strong and i think it's very interesting because if you're jay pal, and you're looking at these numbers, fed chairman, there's no reason if you're looking at that cp

numb i number on thursday >> the wells fargo conference call begins in a few moments >> they always have a good story. >> and particularly today, we will monitor things closely. >> but don't tell a good story yet here >> citi's book is -- we have got $71.95, tangible book is $61.29. >> that allows them to buy back stock and be additive. >> they did buy back 33 million shares but their buy back will be more aggressive in the second half, because they got a total ccar of groups of health you don't need a weatherman to tell which way the wind blows. these stocks have seriously outperformed in the second half. if the fed raises rates, they're at a -- to throw them away is to

fail to realize that they had been thrown away and that it's shortsight shortsighted jpmorgan had a really good quarter. sometimes you say to yourself, okay, the market has it wrong today. but jpmorgan had a really good quarter. was it like sales forces that was the greatest one in the quarter. it's up 20 points, those stockings don't trade like this. >> you pointed out earlier, the etfs may be running things >> don't get in front of today, the buy backs are not going to be in today, but recognize that they will be behind you, we have some oddities, we have mcdonald's with the health issue, that's killing the market we have jpmorgan getting crushed. and away from that -- >> the mother important news, we got late yesterday was the doj's appeal of the ruling from judge leon, that we all watched so closely and waited for with

waited breath for so many months, that allowed at&t to close with time-warner the expectation that it would appeal that decision gr judge leon, but given the strength of his opinion and what many said how strong it was of hitting very specific markers, and really taking it to the government there was some thought that perhaps the doj would back off they have not. >> well, obviously, yeah, some people say i don't get it. the deal is closed, remember we were talking about whether they would get an injunction in the next few weeks should an appeals court actually overturn judge leon's opinion, that at&t would actually divest of their return on networks. we talked to an at&t ceo about

the decision to appeal, here's what he had to say this morning. >> we think the likelihood of this thing being reversed and overturned is really remote. it's a very narrow path that would have to be traveled to get this thing reversed in any way so we're about executing our plan, the merger is closed, we own time-warner. >> full speed ahead is what steven is saying it's a negative catalyst, many people who are weighing in, of course, say that it's unlikely in their opinion that you're going to see this overturned but it does sort of lay another obstacle in the way of at&t's now not according to stevenson, but it's plan to move ahead without having to worry about litigation, without having to spend hundreds of millions of dollars. >> it seemed like they're damned if they do and damned if they

don't. they obviously can boost their cash flow, but they have a lot of interest. the stock trades as if it was in trouble. and randall stevenson is being glib about the situation, not paying attention to what the markets say. when you have a ceo who says i'm focused on the company, i think this man actually for a moment should be focused on the stock and what it's saying i typically do not say that, i said it about starbucks though and starbucks is deeply focused. >> that's a stock that's down 8.5% this year it's not a pretty picture for at&t, john stanke is the man speaking to his troops, bringing in his direct reports for meetings, telling them how things are going to go we'll see what eventually develops interesting to note, hbo came in

behind netflix for the first time in the emmy nominations, which is always a source of pride for hbo in its programming. some people want to look at this and also say that it paints a harder mirror fpicture for our t company comcast, and should it actually succeed in getting the fox board to agree to a deal which by the way as we have reported this week, seems less likely than we have had previously, but if time-warner were actually to divest the deal and be very likely to divest -- that would leave hulu and netflix and natgeo so those who are trying to read into it, that this raises yet another obstacle to comcast's aspirations there. that really is the case.

>> you're a gent because comcast can come back, it's really, you got to just -- you're waiting for that bid. david, when we waited for their bid, you said we should wait for the bid. i am not hearing from you wait for their next bid i'm just not. >> no, you're not. but you're going to have to wait for me to say more because we got to get to rick santelli. he's at the cme group, he's got some data for us, rick, take it away >> we're looking for the university of michigan sentiment, it's down at 7.1, that's definitely a miss, we're looking for a number near or above 98 in march we were at 101.4, that was a huge read going back to january '04. so this read will get pulled at the end of the month so we want to pay close attention

we want to look at inflation, especially this week's twin reads of gpi and cpi, we're looking at the one-year on inflation, and that's actually down a 10th from last month, it did hit 3% it the five to ten-year read, that dropped .2, this goes hand in hand with what came in earlier in terms of import and export prices. usually not that exciting with the headline series. but the number is down .4. maybe this is energy, volatile, indeed some of it, but you take petroleu petroleum, the tariff scenario is getting nastier, that was part of what was going on with regard to chesapeake b china and some of their numbers on exports as well the treasury complex is almost unchanged in the last week

the yield curve flattening continues to be the biggest feature. sarah back to you. >> absolutely, rick santelli, thank you very much. good morning again on this friday, welcome back to "squawk on the street. as always, jim cramer sticking around, we have a lot more to get to with him, michael santoli here in the hour the dow industrials are down 15. banks are certainly in focus with sort of a mixed reaction to what was overall better than expected earnings. >> where's the mix where's the positive >> good numbers. >> very good numbers, but the group is trading as if it's just one etf, as the abomination of the etfs to continue ref something that jamie dimon is doing. >> let's start with the story of the morning, which is of course president trump, who is in the uk, president and prime minister

just held a joint news conference this hour let's get to some of the heig highlights >> reporter: i should just point out i'm outside checker's which is the prime minister's country residence, which is about 40 miles west of london the president has now left heading towards windsor, for tea with the queen but i think he's left behind a little bit of confusion, because as you know, he gave an interview with the sun newspaper where he appeared to be very critical of the prime minister's handling of the brexit negotiations you saw none of that in this press conference indeed, he talked about the higher special relationship between the uk and the united states let's just hear what the president said >> once the brexit process is concluded, and perhaps the uk has left the eu, i don't know what they're going to do, but whatever you do is okay with me, that's your decision

whatever you're going to do is okay with us, just make sure we can trade together, that's all that matters the united states looks forward to finalizing a great bilateral trade agreement with the united kingdom. this is an incredible opportunity for our two countries and we will seize it fully. we support the decision of the british people to realize full self-government and we will see how that goes, very complicated negotiation and not an easy negotiation, that's for sure >> so just to wrap up that issue, i think number 10 downing street will be very happy with the president's parting comments it does appear that the prospects of a trade deal with the united states are still very much on the table, despite his dislike of how the brexit talks are going. we'll just mention several other touch points, he talked about the need for a common sense approach and that was one area where both leaders very much saw eye to eye and there were a number of questions around his upcoming visit to helsinki to

meet with president putin, i think on that issue as well, both teresa may and president trump put out a strong line on how that meeting with president trump is likely to go. so just to wrap up here, we had a press conference where both leaders stood side by side and for all intents and purposes, you would imagine that that sun interview and all those comments did not exist. in london for us, the highest level of special, that's how i think of our relationship, david. but i guess the investor take away is the trade deals are still going to be on, despite some questions around how prime minister teresa may laid out her brexit plan, and for those that were worried about the relationship and the president's more inflammatory comments to the sun, don't worry about it, because it actually sounds like he apologized to her

>> in trumpese >> the highest level special >> i would add that he did come back to one of his other favorite topics, which is tariffs on automobiles, tariffs on the eu, that $200 billion number last week, the $151 billion trade deficit with the eu, those comments need to be watched closely as we always do, because of that 20% tariff on automobiles coming from the eu and certainly no love lost from germany, he comes back with the pine line, and from an economic perspective, that prospect is the one that would worry you the most on the heels of a trade deal >> you can combine the cpi yesterday with a little bit slower lending, and come up with

a stagflation piece. then you add into higher tariffs on cars that are very, let's say, we all know about, that we see on the road. this is abysmal, that was mentioned in a "new york times" piece yesterday. there's a lot of ways to craft a negative story is the way i would put it listening to you closely, you always point out what the facts are, versus necessarily what people are saying? >> sure. i do think it's a lot of anticipatory anxiety based upon the what ifs but autos, it's the biggest retail sector, it's the biggest manufacturing sector and you can't just move the production around, right. so initially at least, it's like lots of taxes on the biggest category in the country, and that's why maybe it is the one that we have do worry about. the idea getting a trade deal

with the uk bilaterally is great. but that doesn't happen with the investors time horizon here. we got to leave the eu, i mean that will be nice when it happens. >> the anxiety, the dow is down with its best week in a month. is that ary fle reflection that don't expect the auto tariffs? >> i think it's $200 billion additional tariffs on china. >> you know i believe that there are two additional ideas that i like, one there are no winners in a trade deal, if you have to set up a joint venture with mickey mouse china black cat foods, i don't care, you change those joint ventures and the intellectual property theft, that is not something to be trifled with. so i believe there can be winners and number two, i think that we're winning >> relatively on the stock market we are.

>> the market will say we're winning. >> anything to be watching in currency >> it's barely budged on the political turmoil that we have seen over the uk >> what is that? >> it says that people aren't worrying that we're going to see a harder brexit, as a result of the fact that she has lost the hard brexiters hoot cabine s had it's a reflection on that she has held on to power and it will not be as destructive as we once thought. >> is jpmorgan starting to move a little bit >> that the president can just slam one network and another network is just so happy to fill in the void to say you know what we're not going to play this >> you don't have to dwell on

it. >> when he says he won't take questions from them and wants to talk to a real network and also criticized our own parent company nbc. and it does figure into all of this an trtitrust talk, speaking about the at&t time-warner an - antitrust deal i don't think so, because of the reasons i pointed out earlier in terms of the divestiture package that comcast would likely be willing to offer but let's not forget disney has already been approved. >> we're going to speak to jim stewart and i still believe, i have never wavered, the justice department's core lawyers, independent. their core lawyers are independent. >> jim, you mentioned jpmorgan and let's get back to the banks this morning, jpmorgan and citi, all reporting earnings i know jpmorgan's call was at 8:30 bring us up to date. >> we have been jumping on and

off calls for the last few hours. jpmorgan beating on the top and bottom line, citi beating on the bottom line. while wells fargo fell short of analysts experts here's what's going on underneath the surface wells fargo had a tough quarter, marked by lower fees and deposits loans also declined by 1%, that sent profit down for the quarter, that's even after excollue exclude excluded on the media call, the cfo of citi said the thick weakness was due to thin rates and secure advertised products. the sector also saw a decline in banking revenues j prpmorgan presented a much

brighter picture, on an analyst call, jp jamie dimon reported -- >> probably because similar to trade, so you're looking for potholes out there, not a lot of things out there and growth is accelerating and of course things are always a little bit different. >> in focus is this idea of this trade war and how that impacts the business of jpmorgan and citi they both said that the trade war has created more of an indirect effect through uncertainty in the markets that they cover but not really having a real impact just yet on their business and as you mentioned david, wells fargo's analyst call begins in about 90 minutes and as you can see, those stocks are still down for all three of the companies that reported this morning.

>> jim, of course, you've been in the time you have had since we went on air at about 9:45, you made it clear. jpmorgan did have a good quarter, wells did not >> let's step back, with it's post c-card dividends. they're buying back $20.7 billion worth of shares over the next four years. that does not to me sound like a company that i should worry about. it just doesn't. ci citi buying back, say, 250 million share this is year, it just doesn't make sense, the eta irrational effect on the stock market, where every stock is identical, has just made me sick, what it said is there are ceos that work as hard as they want and organizations that can do everything to make shareholders money and the etfs keep them behind will these companies by back a

lot of stock yes, that is what matters to me. i know there are a lot of people that feel buy backs do not matter michael, when you buy back 250 million shares a year, are you supposed to say, you know what they can buy back 250 million. >> when we're talking about banks, one of the problems with the overhead was too much capital. i also just wonder as much as we can talk about how the yield curve should not really be a trading queue for these stocks, it's not really what drives the und underlying margins you have had this kind of narrowing of the curve, it seems to overhang the psychology of the stocks. >> it seems to have become what i regard as being not a distraction, but it seems to be that the investors always seem to fixate on something for a long time it was interest

margin, and any company that didn't give you a good interest margin, we tosold we look at pnc, pnc delivered. the previous quarter, almost a perfect quarter and it means nothing. how is that possible >> what are the banks and the treasury yields, which are all lower across the board some of the bears would say that foreshot of something negative in the overall economy, why is it only being reflected then in the banks? >> i think it's day one, people are just looking at these, they're not looking at c-corp, i think what they're thinking is you know what i don't really care about jamey dimie dimon. i gave wells too much of a pass, wow. surprising expenses.

>> we had on the ceo from jpw, talking about a very positive gain on the banks and talking about there's going to be a multiple expansion >> they're a rigorous firm >> morgan stanley traded multiples but have maintained low multiples now for a long time. >> there was a conference call yesterday to end all conference calls, and it was the delta conference call, it was a point where jpmorgan said, why is it so bad for you why don't you get any credit i know there's a question there, why don't you get any credit these are trading like the airlines the airlines are eight times earnings, but these are 10, 11 times earnings, they're very profitable companies, it really is incredible, we're back in that world where a lot of people hate the circus now is the workdays,

the bmws, they're trading at elevated levels. and you can't give away jpmorgan stock. it's entirely possible that the stock of jpmorgan is wrong, that it's just a mistake that it trades -- >> it's up by 240 basis points, i guess. >> it should be up >> and is basically the best performer. >> i won't if citi still has some taint, emerging markets are still under pressure here. >> the industrials are doing well, so this isn't a trade related eevent no the market keeps trading up and down we hated defense stocks until -- he's like analyst in chief, he's arms merchant in chief if he come s out and says jp

more -- >> in the u.s. where consumer and business sentiment is high >> not enough sarah, i want him to say it's great. it's just really too much. you can't please these people. sorry, got a little emotional there. >> all right, well we got other stories we're following. that one late yesterday, the appeal by the u.s. government of the decision by judge leon to allow at&t's purchase of time-warner. julia joins us now. >> before we get to at&t and my interview with ran doll stevenson. comcast, which is of course cnbc's parent company, sky's shareholders have until august 22 to accept their offer of course comcast's offer is now the highest for sky, at about $34 billion, topping fox's

offer. we'll have to see if fox in concert with disney counters as now comcast has put forth that august 22nd deadline moving to the other question here in sun valley, at&t with that doj appeal. ran dodall stevenson tells us tt he was prepared to appeal judge leon's decision and this has no way impacted the running of the company. >> we think the likelihood of this thing being overturned is really remote. it would be a very narrow path that would have to be traveled to get this reversed in any way. the merger is closed, we own time-warner. >> stevenson also saying that the merit of the transaction is valida validated. the big question other ceos are asking here at the co-conference in sun valley, is what this

appeal means for media m & a and comcast's interest in buying fox. i asked stevenson what advise he would give to the other ceos here >> if i were a ceo looking at media acquisitions and deals, i don't think i would be looking at them today any differently than i did yesterday i think this is a process that will play itself out, but i think -- i think there are such a slim chance of this thing being altered in some way. that it wouldn't affect my thinking much at all >> now stephen son tells us he's focused on execution, on running the new company. they're operating independently and also preserving it's culture, and also working to create more content for it's valuable brands. >> thank you, julia. we should point out when it

comes to sky, this was the final day under uk takeover law could file its offer, so it had to do it today, it's 20 days today since comcast actually receive it's approval. the questions there of course are about larger issues in terms of did disney and comcast and fox which we have discussed much of this week here on set right now is new york -- interesting column this week about hedge funds, which is i love seeing your stuff on and it's always been an interest of mine but first i would love to get your take on the decision by doj to appeal this case. >> as on the merits of the case, this is a hail mary pass, i mean the odds of them actually appealing are very remote. that's in part because of one, the appeals court has to take the factual record developed in the court. if you read that opinion, it's fact, fact, fact, fact there are no court decisions in there, so it's going to be very

challenging for an appeals court to overturn this so whiled they wouy would they s they seem to just want to harass at&t and time-warner, they also seem to want to warn other merger partners. even though we lost big time on this one, if you try to do another vertical merger on media, we're going to sue you and we're going to sue you in somewhere like california and try to get a different ruling. and their long strategy here maybe the supreme court. so they lose now in the d.c. circuit, they bring another case, which they hope they'll winsome day somewhere else they get an appeals affirmation of that, then they win in the supreme court. the supreme court is not going too take this on its own that's the long game. that could be a very long game in my view but i agree with stephenson,

this is going to have no immediate impact on them, but other merger partners are going to have to go through 9, 18 months >> he's going to sue them in the justice department >> he said one district court judge and we're going to find another jurisdiction where, you know, they may think differently. they do have the right to do that but it's -- i think they really are barking up the wrong tree here, partly because, you know, there was a great story in time this week about the meeting with the hbo people so what are they saying? you know, we want to spend more money, we're going to compete with netflix, we're going to pump more money into this. tell me how this is bad for consumers, this is great for consumers. >> they have raised prices on direct tv now, they have raised prices on other services. >> but they already own direct tv they're not raising prices on something they just got. >> the optics were not particularly good. but i'm not sure it mattered at

all in terms of doj's opinion. it is expected that they would appeal despite the fact that it seems a long shot. >> i think it's no real surprise, and by the way, it's open season for lawyers there, they're going to love this you know, we're going to have battalions, with some of the highest paid lawyers in the country swarming around all this, for six months, nine months, maybe a year but it will be interesting what theory they try to bring forward. but i think this is really a long shot. >> but james, could you give -- you have followed these things longer than anyone, can you give descriptions on how the judge treated the antitrust division in that opinion? >> well, it was withering. >> have you ever read a tougher one? >> i have never read a tougher one, and by the way, from the appeals perspective, these people always turn away the

expert testimony he eviz rated the government expert what did they call it the root goldberg contraption or something like that. >> it was so flimsy. >> the other thing about these appeals, the last one of these i can remember, there are very few of these, remember the whole foods wild oats, i was super interested in that that was a crazy theory. they lost in the district court they appealed, they actually won on appeal. by the time that thing was finished, it was so clear that the theory was all wrong i mean whole foods made a huge mistake in buying wild oats, that did nothing but undermine whole foods earnings and had nothing to do with their ability to raise prices, and everybody was jumping into the premium natural thing. but it was such a premium sha shambles and whole foods was like take this away in us.

>> the government didn't like the fact that after this ruling came down, we all said it's open season, free for all, everybody's going to pair up, now they're pushing back against it now pragmatically you have ceos behavior potentially change. it might come to pick another case, another venue, and maybe the supreme court's going to block all of these deals a little bit of a chilling effect >> let's say comcast goes forward with the -- the suit's going to tangle them up for a few more months. the people getting these bids are going to have to think we have a vertical here, a horizontal here. >> do you think this makes a disney fox deal more likely than a comcast fox deal >> i think a disney fox deal wiis more likely for a number of reasons. if fox were to actually succeed in buying those assets, they

would divest the rsns as did any is doing, really leaving only the studios, which is an anti-trust problem and disney and fox are far larger market share. comcast unlikely to come back, but it's a lot more about price and where we are you no. >> the very subject of how much they're paying for sky and for the fox assets, $48 billion more than what was originally the price for these ings >> comcast continues to go up. what, you think the stock is just going up? people are gaming this, they're gaming what you say and they're saying, listen -- you're calling the bottom, but i know you didn't mean to call the bottom. >> both sides were in a position

that prices got so high that neither can buy both of those assets. >> but six times what would you have to pay if you had both sky and comcast >> with the rsns being sold, it's like 20 times. >> one big audience for these things is verizon. they're stalking the landscape, they may have an audience of one for this thing, which is them who say watch out, you're the big vertical dinosaur here and if you try to buy up somebody, we're going to hop on it >> joim, we haven't taken a coma break in quite a while we're not making any money, but tell me about the column this morning in terms of hedge funds. >> i haven't done anything on hedge funds for a while given all the other news, but this should be the perfect

environment they have been waiting for, since 2009, they have been telling me, wait, wait, wait, you can't judge by the hedge funds by their nature are never going to outperform s&p 500s let's grant them that, we have s&ps going nowhere, bonds are down, volatility is up this is supposed to be, you know, the perfect climate for hedge funds. and i really didn't know, okay, well, let's see, how are they doing? the results just came out this week, and you know what? they underperformed again. they underperformed again. and assets under management as hedge funds, a new record. all these stories about illinois pulling out california, whatever, has not dented it. other people are pouring the money in there i get how could this be? it's oddly enough, the better other things do, the longer the bull run goes on, hedge funds

are the brilliant marketers, they're going around the -- 2008 is coming, remember how horrible it was, it's coming, and that when they're going to outperform and two, they're going around saying, we're not going to beat stocks, but we're going to beat bonds, we're a fixed income alternative, fixed income is down, okay we only gained 0.6% in six months, move your bond portfolios into hedge funds, it seems to be working. >> you point out that activist funds are doing well versus the offshore. >> that was interesting too, the quant funds, remember they were all the rage a year ago, the james simons, the computer lock boxes, for the year, down over 4%, the worst performance of the entire hedge fund world, and some big names there are just

closing up and leaving you can't follow the herd in these things it's too late. >> marketing, marketing, marketing. >> another good one jim, market funds should be thriving jim stewart, thank you for coming on. as always, speaking of jim's column, the eighth annual investment conference taking place this wednesday, july 18, guests include larry kudlow, ken griffin, steve bannon and many more big names, check it out deliveringalpha.com. much for "squawk" on the street, we're going to take a quick commercial break and be right back

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hello, everyone, i'm sue herrera. president trump holding a news conference with british prime minister teresa may. he says he did not criticize may over her brexit strategy, and for her part may politely disagree that her brexit plans could scuttle a u.s. free trade

deal >> we agreed today that as the uk leaves the european union, we'll reach a robust free trade program. donald and i will agree to an ambitious deal that closes trade gaps across our countries. >> meanwhile the first lady was shown around the historic retirement home for former british solders by prime minister may's husband phillip back here at home, the ap reporti reporting that papa john's plans to pull john schnatter's image from marketing materials the details and exact time are still to be worked out you are up to date, that's the news update this hour, i will send it back downtown to you, sarah, see you next hour. >> i'll see you next hour, that papa johns stock keeps going up on his resignation mike santoli today looking

at bank stocks moving lower on earnings >> jim was just talking about how much he loves the etfs and how the tail wags the dog with the bank stocks. it's one of those areas that -- here's a chart showing different segments of the financial segment in terms of market cap and type of institute and how they are performed differently over the course of this year that green line is basically the financial sector of the small cap 600. so domestic, small has worked its financials as well kre is the regional banks dominated by some of the larger regional banks, but that has held up reasonably well. kbw banks has moved up on the whole. naturally those smaller tap financials still seem to work and by the way, david likes when i point out that the xlf, which is the financial sector etf that

everyone uses as a shorthand for the banks, it's berkshire hathaway >> that's great info >> it's about the same as jpmorgan's weighting in the xlf. >> what's the purest plan for the banks. >> some of them are equal weighted, there's a lot of ways to slice and dice. >> regionals versus big banks. i mean you mentioned, it's had a diverging path this year. >> the big ones seem like they're captive to the idea that you're going to have a hard time growing and also the international scuff atuff and te yield curve. >> you think pnc is kind of out of sync? >> nobody talks about it the black rock pnc >> i slammed the heck out of them that last quarter. >> right. >> jim, thank you for sticking

around with us. >> i'm not going no, i am going elise will kill me, i got to start gardening too. it i have to go home and start weeding. >> start weeding >> i love weeding. >> do you really enjoy weeding >>those pictures you send out on twitter are amazing. >> i studied with dalai lama >> you have a great time gardening, my friend. >> thank you zplp and a great weekend >> and don't miss "mad money," 6:00 p.m. eastern, he'll be back from the garden with a lot to talk about i have a feeling he'll be heading to the bank with mix performance. >> i got to say, sometimes stock lie, people lie, sometimes stock lie. >> jim cramer, everybody coming up next, he's been ranked the number one analyst in the all america analysts research list for more than a decade ed hyman when we come back with

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big stocks are lower as earnings mostly disappoint jpmorgan certainly beat estimates, jamie dimon saying a higher 10-year rate won't be a bad thing. meantime a global trade war remain a concern jim h yr ed hyman has been the top trade analyst for the last decade. >> what a week >> what a week to get to on trade and everything else, let's move on to the banks on the back of what's always been -- why saying it's the wrong reaction, what does that say to you? >> well, it's a big day today because of the banks, and i was looking to see if they could

have just a clean sweep where everything was good and the bank stocks would rally and they didn't deliver that, and so i'm positive on the economy, i think what's missing right now is to have the bond yield to go up some and get the steepen a bit. bond yeelgields are 282. we're 27 >> does that make sense to you that the banks should be down. do you think it's something in the results, or just the yield curve which is not steepening? >> i think the results weren't stellar, they were good, but they weren't stellar, and the yield curve is a worry for people and trade is also a worry. but i think it's okay. i just have to be patient a

little bit jamie dimon's comments i agree with completely, in term of the way the economy's doing. >> and you say that the yield curve is a worry but should it be a worry, i guess, is the question, but the germany 10-year kind of anchoring the u.s. 10-year yield. i guess you're saying that the curve is not sending much of an economic message right now >> i worry about it. i'm a big fan of the yield curve, but it needs to go negative before i react to it. and if it goes negative, there are different measures like the 2-year versus the 10-year, or the feds funds versus the 10-year. i'll look at all of them and the context in which it would invert i don't expect it to invert, i think bond yields will go up at some point before the hedge funds get to 3%. but if it inverts, i'll forecast a recession. >> what about earnings overall and which pockets of the market

would you like to be in as we expect another pretty solid growth as far as top and bottom results? >> i agree with that, sarah. i think the earnings this quarter are going to be a complete blowout on the up side. i think they'll be better than they were in the first quarter, the economy is better now than it was in the first quarter. and the dollar still down, not as much as it was in the first quarter, energy prices are still up so i think earnings will be very good i don't have a particular sector that i'm focused on, but i think overall there will be in the neighborhood of 25%. >> what about trade? and the escalating trade war, tariffs back and forth between the u.s. and europe and canada and mexico and china do you think the markets has it right on the resilience we see

>> there's a lot of uniform data trample truckers on the week, they had a good week, capital goods companies and they held at a very high level this week. and they have confidence measures out, that are weekly, and nfib came out this week, they're all holding up well, so the economy is doing well, but investors are worried about trade and they should be i'm more worried about trade than the yield curve we survey investors constantly three weeks ago they put the odds of a trade war at 30%, now they have it at 60%. so investors have moved dramatically toward assuming that we'll get some sort of trade war, i'm not sure anybody has an idea when you say trade war, do you mean 1930s style or just a tit for tat that we're getting. but my view is that neither china or the united states or

nafta wanted to commit suicide and this is part of trump's art of the deal. we have seen such a great example of how he can change from one day to another with his trip to europe it's astounding. >> ed hyman always good to check in with you, thank you for joining us >> my pleasure coming up this wednesday, it is cnbc it's the institutional investors deliveringalpha conference a lot of speakers set to appear, including howard blackstone, steve bannon and even our own larry kudlow, we have a lot more "squawk on the street" for you right after this break

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people are continuing to gather in london to protest president trump's visit to the uk our steve sedgewick is right in the middle of all of it and joins us uk. steve sedgwick is in the middle of it all. hi, steve. >> reporter: it is a fascinating day. i was underwhelmed by the protesters i have been completely overwhelmed by human numbers of a fantastic summer day in london people are protesting a host of things having thought about it a lot, donald trump has become a lightning rod for a host of things, some nothing to do with trump, a whole host of issues around immigration, around the muslim world, the middle east, misogyny the tourists themselves are a

target of a lot of demonstrations which have been incredibly well behaved protests i am seeing thousands upon thousands, waves and waves coming through and dominating the whole of the west end. i am at the bottom of regents street they started north i want you to look at what's happening here another huge wave of protesters are coming our way every time i think they finished, we see them. a whole host of issues, this isn't just about mr. donald trump, it is about the uk, about dissatisfaction with the government as well as you can hopefully hear, again, well natured, to greet mr. trump here in the uk

>> thank you, steve. steve sedgwick on the streets of london following protests. as for our street, namely wall street, should note the s & p is in positive territory as is jpmorgan speaking with jim cramer, he noted he thought it was a good quarter, the market didn't agree. now that's in the green opposed to citi and wells fargo that are down got earnings from those three large banks. >> your favorite cateindicator s up the dow. >> the s & p so far this session has traced jpmorgan's path >> 2800 mark for the s & p that's going to be key we're there. first time we have been there since march 13 we haven't closed above it since

february 1st. >> it has been in the cross hairs. see if we can get above it and whether it is a culmination of the move or shoot up from there. 3% for all-time highs. >> we started the week with prospects of another $200 billion in tariffs on chinese goods. let's send you to the break. lot more "squawk on the street" after this

coming up today on closing bell, we have been talking about it all morning wells fargo slipping this morning. that bank did fall short on profit and revenue we're going to talk to the cfo this afternoon about the company's earning, the stock reaction which is worse. they had mortgage volume dry up. but also they're still dealing with the overhang of the scandal and cap from the federal reserve on growth. >> higher costs, lower deposits. you have to ask questions about market share and what they have to do to win it back stock firmed up during the conference call. >> the tone on the tape has gotten better. jpmorgan is higher. >> getting questions about things like net interest margin which is key >> absolutely. everyone concerned there will be

a rush to give depositors raise rates. >> the question is what does the yield curve tell us long term. >> see you later, "closing bell." >> he is here all weekend. "squawk alley" starts in a few minutes. my ambition? helping people get what they want, understanding we're not in this alone, and teaching my kids that no ambition's out of reach. ambitions live everywhere. synchrony helps make them happen with data, insights, financing and technologies. ♪ ♪ synchrony. what are you working forward to?

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welcome to "squawk alley." good morning before we get to london where the president spoke earlier and protests continue, some breaking news from the fed ahead of chairman powell's testimony next week steve liesman in washington. steve? >> the federal reserve will say to congress further rate hikes are consistent with sustained economic expansion and even with the rate hikes, the monetary policy remains accommodating on the economy, says activity is increasing at solid pace labor market continuing to strengthen, inflation running a little above 2% target seeing much lower effect from oil