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 prices, saying the negative effect on consumers is offset by

production and investment. wage growth sees it as moderate, likely held down by weak productivity in the overall economy. business investment remained robust foreign growth solid and consumer spending helped by tax cuts overall, seeing a shift in fiscal policy will provide moderate boost to gdp this year and help the next couple years one concern is shifts in trade policy which the fed is concerned could weigh on economic expansion, provide down side risk to growth. on markets, federal reserve says valuation pressures in various markets remain they're elevated by historical standards, down somewhat this year note forward s&p 500 in the upper end of historical range but sees vubllnerability. some continued growth in labor force is possible. this is a very important factor for the fed and for chairman jay

powell low education levels, disabilities, criminal records, opioids and discrimination are keeping some out of the work force, but make a point of noting that some decisions not to work may reflect lack of affordable child care. they go on to say this is not something the fed can do anything about the fed telling congress if you want additional people in the work force, you may want to revisit your child care policies that's it. monetary policy report to congress, 63 pages of pure economic and monetary policy gold back to you. >> very interesting stuff, steve. the major indexes near session highs as a backdrop to that. meanwhile, it is a minute past 4:00 p.m. in london, 11:00 a.m. on wall street "squawk alley" is live.

♪ ♪ good morning, welcome to "squawk alley. >> the big story is president trump's visit to the uk. the president and the prime minister, that is prime minister theresa may, holding a joint news conference at the prime minister's country estate as protesters take to the streets in london and that's where we find wilfred frost with the latest on the protests >> reporter: good morning. the big question going into the press conference was did president trump think it was possible and want to do a free trade deal with united kingdom

once brexit happened here's his response and theresa may following it >> 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 a tremendous opportunity to double, triple, quadruple that. >> no limit to the possibility of us doing trade deals around the rest of the world, once we leave the eurozonpean union respe >> reporter: more on votes in parliament next week the other big question, does the president rather have boris

johnson than theresa may >> they asked about boris johnson, how would i be as a prime minister, he would be great. he has been very nice to me, saying good things about me as president. i also said that this incredible woman right here is doing a fantastic job, a great job, and i mean that. and i must say that i have gotten to know theresa may much better in the last two days than the last year and a half i think she's a terrific woman, i think she's doing a terrific job. >> reporter: the tone between the president and prime minister much improved than implied by the sun article overnight. the tone between the president and many brits fairly frickius >> jeff moore, we'll bring you in now what are you seeing? >> reporter: i think the thing to come out of this for the uk

government is donald trump's comments on brexit brexit continues to be a thorn in the side of theresa may, it led to significant departures from her government as has been pointed out by wilfred and for the ukgovernment at this point it needed a soothing hand from the u.s. president to say it will be okay, we will be here as an ally, you can use us as a lever in your negotiations the eu of course, because he swung out a few times at the eu, criticized germany in particular, that will send an important message to brussels about how close theresa may and donald trump appear to be at the press conference in spite of that sun conversation, comments he gave to the sun newspaper, appearing to suggest he was very much on a different page on brexit negotiations. from my perspective, the headlines we take from the checkers meeting that donald

trump is happy or happier to sit back, let the uk government do its thing on brexit negotiation, and then we get to a point where we start to talk seriously about a trade agreement. there's still one problem area, that is agriculture. that is the fact that if the uk under the current blueprint continues to adhere to eu standards on agriculture, that may make it difficult for a lot of american farmers to export goods to this country. that has not been resolved and i would suspect that will continue to be a bit of a thorn in the side for this relationship but hey, you heard what the president said we have a higher level of special relationship now back to you. >> as you mentioned, close today in the press conference, color coordinated. before we let you go, we are showing video of protests in london i know you're standing in front of it.

what is it like on the ground now? give us some color >> reporter: i would say two things it is both passionate and busy in london. friday in london was always expected to be epicenter of the protests against donald trump, but it is proving to be that at this stage crucially still and will remain we hope peaceful and of course the president isn't here on location that goes back to one of the points we discussed earlier which is that the prime minister has done everything she can to make this trip as appealing as possible to the president. that's why he hasn't had any official engagements in london and i guess as the day goes on, the british government will hope he is shielded as much as possible from this so that that positive tone they struck together in that press conference will be the memory he leaves with. >> gentlemen, thank you. keeping our eyes on

international trade, politics, and markets. we have tech continuing to rally, s & p above 2800 mark, a four month high. the nasdaq hitting another record high as amazon, facebook, microsoft, alphabet hit new highs. joining us, chief economist david rosenburg and global strategist at wells fargo investment institute gentlemen, thank you for joining us >> thank you >> thank you >> so samir, i want to start with you one of the things you mentioned in notes this morning is that the stock market isn't attributing a high probability to all out trade war certainly you see comments from the likes of rh saying they can basically shift in terms of impacts of tariffs on furniture from china, it would seem companies are more nimble than originally anticipated >> exactly, morgan

the two points we make is risks are rising but still low we put 20% probability on unfavorable scenario where they can't work out a deal during the next term. and two, corporations have gotten used to dealing with curve balls. they may have a tough time, industrial manufacturers with longer lead times, but some other businesses will be a lot more nimble. >> david, going back to news that steve liesman gave us at the beginning of the hour, fed, further rate hikes consistent with expansion, one of the things you pull out is the fact the fed is continuing to tighten, andly quid tee may be big this year. >> everybody is wondering how well the market is doing the past couple months the peak looks to have been put in in january which was the

month where quantitative tightening took a giant leap forward, and that's going to accelerate between now and end of the year into next year everybody talks about rate hikes and flattening of yield curve. few people are talking about lag impact from the fed stripping the balance sheet. i have been saying, the fed does what it is going to do, cumulative impact on interest rate equivalent between balance sheet will be 525 basis points of tightening by next year, there's never been a recession ever when we had that degree of monetary tightening. something to keep in the back of your mind. >> sameer, i wonder what we should expect from tech earnings season, looking at the height, alphabet, microsoft, amazon, over 800 billion in market cap apple within striking distance of a trillion dollar market cap.

even hard to say what sorts of either optimism around what's coming the second half of the year is necessary, is the focus more on margins or stability in expectations around global trade what's it going to take to power names higher >> technology has done a remarkable job of continuing to drive that top line which i think is probably the most important piece in all this. in the first quarter, grew revenues close to 20%. the only other sector even close was energy, and had easy comps you have the largest sector growing revenues at a very fast clip and then they're doing a good job making sure that flows through to the margins as long as they can maintain it, don't even need improvement for these levels, then you have all of the cash coming back from overseas and growth accelerating in the second half we believe from an economic standpoint, all those add up to a pretty good environment for corporate

earnin earnings. >> david, where would you advise investors to put money now >> i think i come back to the earlier comment, you want to be liquid as possible now my sense is that you want to be hedged against rising cost inflation pressures coming down the pike, be protected against further increase in interest rates. it is where you don't want to be don't want to be in utilities, in telecoms. those are going to get hit pretty hard. i would start to raise cash, become more defensive, focus on alternative investments, long, short than just plain vanilla long i think alternative strategies, long shorts, in equities and credit are good places to be. >> looking at stocks like netflix, big news for them out of the award season thus far, but the stock isn't particularly responding to it

what's it going to take for some high valuation, high fliers to see rough times. are there particular triggers, things you're concerned with where if stocks don't respond or don't continue powering higher, investors should take note >> it will take some time honestly because they have done so well on a relative basis. today it is led more by industrials, staples, health care is doing well recently. there is some good reason for investors to pause and wonder if these companies are the best place for the second half. we think again you would be better off in industrials, financials, if the yield curve stabilizes or steepens, they look good. consumer discretionary, away from amazon, some retailers could do well as the consumer picks up steam again, we would say tech is a good neutral, lax catalyst to outperform on the way out.

>> we'll leave it there. thank you for joining us >> thank you. coming up, the doj filing appeal in the at&t and time warner merger case we'll speak to the antitrust lawyer, and at&t "squawk alley" will be back after this are you ready to take your wifi to the next level?

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live picture of continued protests as the president continues his visit to the uk. wilfred frost has been in the middle of it, steve sedgwick we'll monitor them as the program continues. at&t's fight for time warner is not over yet. department of justice filing an appeal over approval of that merger the merger won approval from federal judge leon in june let's get to julia abnormboorstn she sat down to get the reaction to the latest moves. >> reporter: david stephenson said he was prepared for the appeal but thinks the likelihood of it being overturned is remote and merits of the case have been tried and the merger is closed. >> doesn't change anything in terms of what we're doing. i think the merit of the transaction has been played out in terms of what you see with valuations of other media assets we feel good about the assets we

got, great brands we got, and will execute it. in terms of overhang of stock and uncertainty, not much we can do except address it in the court. we'll work it as expeditiously as we can but it is in the hands of the court now >> he says as at&t works with assets, they're mindful of the culture clash, will run at&t and time warner independently to preserve creativity of content business, while at the same time trying to bring value from hbo >> an amazing franchise, amazing brand. so anything you do, you're going to do very cautiously, recognizing just how successful it has been. a lot has been reported about john stanky's comments, about engaging the consumer. the more engagement you have, the more opportunity to create value. engagement, people hear that, that means they're pumping more content into hbo maybe. but we're looking at different

avenues for driving engagement >> meanwhile, ceos in sun valley are trying to figure out how that appeal impacts chances of facing regulatory push back if they do deals. stephenson saying they're looking at acquisitions shouldn't see the landscape differently than before the appeal guys, back to you. >> thank you, julia. joining us on the cnbc news line, jeff bloomenfeld, current partner with lowensteen stamler. not surprised they got the appeal given the sample set or how infrequently these deals are going to court, do you have any sense how an appeal of said decision will play out >> it is an interesting question, david. everyone is watching it very closely. the department of justice

obviously takes some risks in appealing the opinion of a single judge in any single case, doesn't necessarily have any predictive value for how the courts handle similar cases. once you get a decision from circuit court, court of appeals, it has an effect, not only binding law in the circuit but tends to have persuasive value with judges around the country facing similar issues. so there are risks to doj doing it, but it is an important thing for them to do. >> why do you think it is an important thing for them to do >> well, the department of justice had a pretty clear theory of harm that results from this kind of vertical integration. usually vertical integration is straightforward, i manufacture something and i wind up buying someone who's a major supplier to me. it makes perfect sense there are economies there, we eliminate the extra cost of the

transfer from supplier all makes perfect sense. that's why most vertical mergers don't matter this is a very, very different kind of vertical merger. the ordinary one, i buy from my supplier, that's the end commerce goes one way. here it goes two ways. at&t is a supplier of distribution to the time warner properties, and time warner properties are a supplier of content to at&t. and when you have that situation, particularly where you have so few companies in the distribution business, that can make a very big difference at&t can use its distribution business to favor its own content, disfavor others, particularly new start up content, and can use time warner content to favor its own distribution and hurt its distribution competitors we've seen it happen in the past we saw it in the microsoft case that the d.c. circuit affirmed and saw it in the at&t

industrial case. >> jeff, it sounds like you're saying this could blow up in the government's face though because if it doesn't go their way on appeal, and many expect it won't, it ends up solidifying the other side of this argument. is the risk worth it >> that's exactly the question when i talked about this issue earlier, that's exactly the question doj had to be asking itself we got one bad opinion, can we live with that in terms of the policy we want to enforce going forward or do we take it up on appeal in hopes of reversing it. it's a risk and obviously department of justice decided to go with it there's one other piece of this if i can that's important which is that this trial like all trials before merger occurs is all about trying to predict the future in this case the judge completely believed everything at&t said about their

predictions and gave no credit to what department of justice said but once the merger occurs, there will be actual con flilkt. if doj loses the appeal, it can come back and enforce against the merger once it sees aen anti-competitive effect. >> before i let you go, jeff, last question for you. does this throw cold water on other potential m and a and media, it seems to be somewhat unexpected >> i have to say this is one area where i agree with what randall stephenson told you earlier this morning, and that is given that this is the unusual kind of vertical case i talked about, i'm not sure it has much predicted value for other deals. everyone will be looking at the strength of the t mobile deal, a straight horizontal one. plenty of law and precedent, so that's not going to be effected

i think by this outcome. >> jeffrey, thank you for your time appreciate it. >> thank you, david. thank you, julia when we come back, president trump in the uk as protesters gather in the heart of london. we'll get inside the protests with a live report "squawk alley" will be right ba ck ♪ this is a story about mail and packages. and it's also a story about people. people who rely on us every day to deliver their dreams they're handing us more than mail they're handing us their business and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you ♪ with a $500,000 life insurance policy. how much do you think it cost him? $100 a month?

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welcome back markets about to close in the uk and europe stocks are up in 8 of the past 9 sessionings. technology, consumer stocks, travel and auto sectors among the gainers. banks are steady, outperforming some u.s. counter parts moving lower on earnings news we're going to take a deeper dive into europe and the yuk. >> president trump's european trip continues second day marked by massive protest in london.

let's get to steve sedgwick there on the ground. steve? >> reporter: thank you very much, indeed as you can hear, i am amidst the crowds in tri fal ger square where londoners come to protest. here we saw the anti-apartheid rallies of the '80s and '90s behind me you can see no to racism, dump donald trump, young socialists some are u.s. specific impeach the orange that's relating to the color of his hair medicare for all this is perhaps about united states and the uk, one cause everyone is passionate about in united kingdom is the national health service this is about donald trump and

domestic issues. fossil fuel about u.s. energy policy the president has taken the u.s. out of that agreement as well. people concerned about the kind of politics for mr. trump. saying here, just another view, this is what fascism looks like. we have the socialist workers party, talking about refugees, talking policies relating to muslim nations and relating to mexico, et cetera, et cetera what have we got here, usa divides families, so dump trump. send him back. again, very political. a lot of support for mr. obama as well. domestic ones as well, bigotry and all kinds of racism issues lots and lots of different issues u.s. issues or uk domestic

issues remains to be seen. that flag is the eu stars. another issue close to the heart of many people here. young students are protesting, thank you very much indeed too loud, students the eu, brexit story is important to many people here. another sign here, freedom for palestine. lots of support. i have to say there's anti-israeli support as well, talking about the move of the u.s. embassy to jerusalem. again, about mrs. may's invitation to mr. trump, another one as well, about mr. trump but also about mrs. may. a lot of people are not happy that donald trump is here for working visit, let alone a state visit which had 1.8 million signatures of people ready to stop a state visit so far we haven't had a state visit. let's have a look here what have we got going on here what if you were in a cage

talking also about the situation with isis. as you can see, a host of causes here amongst a well natured crowd. back to you. >> steve sedgwick in the middle of london. thank you for that report. let's get to sue herrera for a news update. thank you, good morning, everyone here's what's happening at this hour the u.s. government wasted at least $341,000 on travel by ousted health and human services tom price. this includes booking charter flights without considering cheaper scheduled airlines this is according to the agency's long awaited inspector general report. a senior adviser to iran's ayatollah khomeini says iran has no intention of leaving syria, despite pressure from israel and the u.s. the statement follows his meetings in moscow with russian president putin.

italian coast guard ship carrying 67 migrants arriving in cicely after they opposed allowing that vessel in. the ship took them from an oil rig supply tug that rescued them off the coast of libya sunday. nissan recalling 100,000 small cars to replace air bag inflaters that can explode includes 2011 and 2012 hatch backs. part of a coordinated phase in of recalls back to "squawk alley. david, i will send it back to you. >> thank you, sue. as we head to break, exclusive interview with michael corbat, monday at 3:00.m o p.,n "closing bell. a lot more "squawk alley" after this me, ♪ ♪ you never drop to your knees, ♪ ♪ look into the sky for a momentary high, ♪

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all-time highs will this be tech's big summer despite growing challenges allen patrickoff joins us to give us some answers you've seen a lot, made some good bets, impression investments over the years often times wall street and tech can be miles, worlds apart in mindset. we are focused on geopolitical turmoil and trade. is that filtering through into the tech investment environment or an entirely different thing going on

>> from the private standpoint where we focus in early stage companies. i think they don't even pay attention. all of us are sitting, watching the tube, seeing hearings. i don't think any of the entrepreneurs we backed took five minutes out to do it, they're all focused on how am i going to meet this week's payroll, build my company, make the next month up 50%, 30%, whatever it's interesting young companies don't have time, don't borrow money so don't focus on interest rates. the political environment doesn't effect them directly because they're in high growth phase. it's strange you get to companies like microsoft, amazon, and facebook, they definitely are dealing with all of the other political elements >> i know there are times when open source web 2.0, emergence of the cloud, impact that had on the lower cost of building a business, those had a big impact

on pace of innovation, how startups are and things. what is the thing that's changing the environment for technology stock. >> it's interesting. i can't really point to anything specific mobile obviously has an impact but that's not new, and open source has been around awhile. there really isn't anything specific that's effecting the technology base of the companies. i think they're all capitalizing on applications and developing ramifications of core technologies the ones you mentioned are perfect. >> how would you gauge the pipeline in terms of startups. >> phenomenal. out of sight never seen it like this. >> why why do you think that is >> there's an entrepreneurial bug that's hit this country and everybody, i gave a course at columbia yesterday, asked how many people in this business school course are going to start

their own business everybody but two. i mean, everybody. as i asked the question, don't any of you want to work for some other startup that you may learn something from their failures, learn from a mentor? i find it very strange maybe i had some influence yesterday. i said get a good job, work under a mentor in one of the recent startups, spend a year or two, learn something. >> in light of that, where do you see the biggest trends in terms of the startup community >> just invested in bird last week we see them, we think that deals with the whole environmental aspect, trying to make cities more liveable, and i think that's the focus of that company. we invested in a company, opt must ride, focusing on autonomous vehicle small environments like a campus, shopping mall, i don't

know, housing complex, the new brooklyn navy yard how are you going to get around those places that's the company, spin off from m.i.t >> are we going to have electric scooters littering the streets >> i don't think they're going to litter the streets, they're going to add to flexibility people have. they may cut down on fumes >> you're in new york, they're not legal. >> not that they're illegal, they haven't yet dealt with it they can't open now. but they will. >> is it healthy, you talked about enormous environment innovation among startups and entrepreneurs wanting to start things, monopoly power, amazon, microsoft, facebook, apple, et cetera, are there enough big companies buying up smaller ones that it is healthy for innovation versus them blocking innovators from getting critical mass >> it is a two sided monster

on one hand, they are acquires, on the other hand they're standing in the way of a lot of young companies and businesses, not so much the venture backed business but the whole environment. small business is threatened enormously by what amazon is doing. you can see it on empty store fronts all over. i was with someone this morning who comes from africa who said the amazon impact is effecting small businesses even in the developing world it makes it very difficult we're focusing on health care, autonomous vehicles, looking at areas that perhaps aren't going to be effected even though amazon is coming into health care now it is a ubiquitous company heard about amazon prime day, 36 hours, they're going to wipe out every aspect of every business what's it called in japan --

singles day. >> a legend in venture capital, thank you for joining us. >> thank you for having me on this beautiful friday. >> it is counting down to the end of that friday before we do that, tell you about delivering alpha that kicks off wednesday, july 18 some big names you don't want to miss, including steve bannon, director of the national economic council, larry kudlow first, rick santelli, another big name what are you watching today? >> yeah, got quite a few letters. i'm looking at the board once again. the long end is not very responsive to selling. we had a lot of supply this week we're going to talk interest rates, yield curve, and the question of the day. who should you be paying closest attention to if you think patent applications today are the leases of money revenue in the

atouryre wh cnt should you pay closest attention to all after the break.

i am scott walker. here's what's coming up on the halftime report. back with us with a big call on tech as it hits new records today. and nancy davis with us onset. is the bank trade debt, we debate what happens with earnings kicking off and stocks selling off. the call of the day on a

stock up 49% year to date. what do you do now big uestion. we have the answer, that and more coming up at noon david, see you in about 15 >> thank you, scott. time to get to cme group and join rick santelli >> thank you, david. it isn't just about patents, trademarks, industrial designs i was somewhat surprised at the research findings i ended up with the organization that i found most helpful is called wipo, world intellectual property organization as of 2016 from a global perspective, number one in terms of patent applications, china. number one in terms of trademark applications, china. number one in terms of industrial design applications,

china. their big initiative, 2025, is to be the technology leader of the world. i guess what i have an issue with is while everybody else is talking about trade, i think cnbc does it pretty well, but there's a lot of politics tied in it. i don't really care about the politics here's what i care about the notion that many that disagree with the way this administration is trying to get a more fair trade deal, one thing that seems to be unanimous, it isn't about the trade deficits being the way into the argument, but in general, china, especially with things like intellectual property isn't holding up its end of the bargain with regard to fairness. so imagine my surprise when i see china doesn't necessarily respect intellectual property, but they're certainly crossing ts, dotting is on securing their spot to be protected in the

future i'm going to do a lot more on this because i was amazed how much material is out there, how the rate of change over the last several years is staggering. as for the markets, i want to get back to the markets a bit. jay powell, yield curve, interest rate on reserves, a lot of things he is saying are generally known. what is unknown is how this subsidy, part of it is the fed, a lot is global, the subsidy meaning the difference between where long rates on many sovereigns are trading and where they ought to be, that subsidy is what the yield curve inversion potential is about there's a cost to it other countries may pay a bigger burden but there might be a bright side looking to buy a house, that subsidy probably works in your favor. back to you. >> thank you, rick santelli. pictures of queen elizabeth ii, awaiting president trump's visit

to meet with her our top story this morning has been about the president's visit to the uk. he and the first lady are about to depart london for tea with that lady, queen elizabeth >> reporter: good morning, everybody. i'm just outside winfield house where the trumps are staying the last couple days this is an area highly secured by the british police force. as many as 4,000 police and security personnel are securing the areas the trumps are visiting the next couple days, and not just checkers and windsor castle but at this 12 and a half acre state in the heart of central london. first on the minds of british taxpayers, how much has this cost estimates say over $16 million all of this is happening in the center of london, amidst all of the protests, massive crowds

we've seen, all of this as the u.s. president and his wife pros as the president and his wife deprt to have high tea with the queen. >> thanks. >> yes and of course we are also awaiting the, we are also awaiting a news conference with deputy attorney general rob rosenste rosenstein that could start momentarily, so we'll break away for that when we get it. is there more anticipation of this meeting with the queen? not many heads of states, certainly not many presidents yet to meet at windsor castle. >> that's right. queen elizabeth has met with 11 of the last 12 presidents. this is high tea with the queen which requires a lot of protocol we generally see amongst the royals windsor castle has seen prince harry and meghan markle's

wedding just a couple of months ago. a lot of anticipation of what kind of president we'll see. very accommodating or touchy feeling as we've seen with other world leaders. a lot of questions over what that's going to look like. you might remember michelle obama put her arm around the queen when they visited with her and prince philip. he's not expected to make an appearance pretty much retired from public life, but this is something everybody and the british public will be watching >> you said there's a lot of protocol involved in this sort of high tea. what kinds of protocol exactly can you describe the scene a bit there and is the significance of the sizable gathering? absolutely, you have to remember that this is a very, very much a revered monarch acertainly, fees

here are particular when you make sure you fill those requirements the queen is supposed to speak first. also supposed to extend her hand first. there are different ways you can greet the queen. a man can nod your head and women tend to courtesy always call her your majesty first time around and after that, ma'am. these are some of the basics, but there's a high level of protocol it's hoped the u.s. president and his wife have certainly been briefed on that, guys. >> thank you outside windsor awe await president trump's visit with queen elizabeth. now on the cnbc "newsline" ," robert tuttle. b ambassador, thank you. how important is a visit like this for a sitting u.s. president? >> well, it's very important because the u.k. is our best ally in the world and there are

so many things in common we have a strong defense alliance, intelligence alliance and of course there's a tremendous amount of business between the two countries and millions of our citizens and u.k. citizens have come across the atlantic to visit our countries every year >> perhaps no sitting monarch has seen more history than that person right there queen elizabeth. does the conversation ever turn serious in these meetings? or just idle chatter >> usually, it's full protocol however, the queen is extremely smart and extremely well briefed. when i presented my kre den b shls ables she had strong and g questions for me that's been a long time aerk but over ten years ago, but she is sharp and a good conversationalist. great fun to be around

>> ambassador, what was your take on the press conference today between president trump and prime minister may especially in light of the you could call it controversial report in the sun last night >> yes, i thought the interview was staggeringly intemperature rant and i'm amazed at how well they got along today it appears that they had a good meeting and that is for important. as i said just a second ago, this is our most important alliance in the world. and i think the it's important for us, it's important for the rest of the world, for europe and i'm glad that they, appeared to have a very successful meeting. >> ambassador, do stay with us we want to bring in jeff as well for his insight ahead of this historic meeting

what we saw this morning with the president meeting with the prime minister and now queen, how important is it that the president appear to follow that famous protocol? >> yeah, i think it's critical at this stage. the ho the most important thing to come out of the meeting here with may has been his approval of the brexit negotiation process he seemed to have walked back some of the more critical comments that we saw in that sun interview and now appears to be saying we will back you regardless of how those brexit negotiations run now we'll have to wait and see whether he sticks to his word on that, but it does leave the door open for a trade deal between the u.k. and the united states fairly quickly after the brexit deal is negotiated of course, the trip has gone very well so far from a u.k.

perspective. i hope the president also feels that way about it. the icing on the cake would be a final meeting with the queen that passes without any diplomatic incident and i imagine that both sides who are handing the protocol here are are so adept and experienced at dealing with these high level meetings that it should run fair ly smoothly. so by and large, the u.k. government will describe this visit as having been successful. it leaves them with some leverage in terms of their ongoing brexit negotiations with europe and if donald trump is to be believed, we now have a not just special relationship, but a highly special relationship between these two leaders. back to you. >> yeah, i think he said the highest level of special is the quote there. jeff, we're looking at screen here, you can also see a press conference from rod rosenstein

relateded to the mueller investigation. interesting split there as we await the president's visit with the queen. let me come back to you for a moment in listening to the press conference this morning between may and president trump, when he r started to describe boris johnson in very positive terms, that was sort of unusual i'm curious as to get your take while he's talking to one sit leader about somebody who might take over for her at some point. you said it right. very unusual not what i would advise the president to talk b aboubut apparently, president talks about whatever he thinks and he seems to like b and respect boris johnson. i think given the current very unstable condition there with johnson just having resigned from the government, it was up fortunate he said it, but it seemed to go over okay i guess it's all right

disappointing, but all right >> ambassador, in terms of this open door for a trade deal, what do you think a deal like that could look like? >> i think it's way too early to determine, but i said a second ago, we're huge investors in each other's country it's inconceivable we wouldn't have a positive trade deal that's for sure what will happen so many u.s. citizens are employ employed by british companies and vice versa that we'll have a susz efl and positive trade deal after brexit >> please ambassador, stay with us i do want to note there on the rig right, we see washington, the lead up to a press conference. with deputy attorney general rod rosenstein he's going to be discussing a law enforcement announcement u

we expect it to do with the mueller investigation. we'll bring that to you as soon as it starts jeff, i believe you're still with us. as we look at this emerging situation dmesically in the u.k., the pressure the prime minister faces over brexit, to what degree can we tell whether this kind of odd visit with president trump has moved the needle seemed to criticize here, but now, it looks warm will this strengthen the prime minister or weaken her >> no, i think it will testify anytimely strengthen her larly wi particularly are with the rebels inside her own party as the ambassador was discu discussing, boris johnson represented support from a difficult faction within the conservative party while he was in government you could say she put up a a lot

of comments from johnson that many believe were inappropriate from the foreign secretary she put up with that because it appeared to keep that rebel element who wanted hard brexit under control. now he's outside of the tent she will be very concern ed abot what plotting or scheming he may be getting toup to remove her and take her job and it's in that context that we talk about donald trump's remarks in support of boris johnson. of course we know johnson has said in the past he thinks donald trump would be the right man to negotiate britain's brexit treaty. with brussels. so if you like, i guess donald trump is just repaying the favor. and there was a bit of mutual love there