longer we're over by about 10 minutes. >> 7:19 when they finished up the closing commentaries. >> we're going to find out soon. >> i hope he doesn't say in front of putin ah, you know, do the fake news thing. >> i would agree stay tuned to "squawk on the street." you'll find out about this and more see you tomorrow welcome to squawk on street. futures are steady to start an important week as the president and vladimir putin meet. earnings season accelerates. netflix tonight. europe just south of the flat line got nice upward revisions to u.s. retail sales.

10 year at 2.84. history the president and putin meeting now. a joint news conference later this morning plus, the market reaction to that from trade and energy and sanctions and iran and can bank of america change the pattern a tough few days as earnings season rolls on. first up, the summit between vladimir putin and president trump is underway. shortly before the talks began, the president said the discussions would include issues like trade, nuclear weapons, and china. they're slated to hold a joint news conference later on when it happens, we'll take you for the live coverage. didn't mention crimea or mueller's indictment from friday and the opening pleasantries we'll have to wait for a read out of how it works. >> i spent a lot of time on the unbelievable world cup it's funny because when they went to england, he went to

england, they didn't mention the loss but spent a lot of time talking about the festivities and how he didn't catch the final. you're sitting there other worldly. but a lot of press wants him to start out by saying, hey, we see you. do you understand what you did with our election? you can't really do that but it did seem overly cordial, to some degree, for what we were looking at we made a comment how they both had their mean faces on. it's better than the smiley faces. i, frankly, have no idea what is going to be said i want to shock people i like to wait and see what they say. is that too judgmental >> unfortunately, there's no transcript of the meeting like this we have to wait to see what they say. >> right they have a one on one for 90 minutes or something like that with no note taking, translators, though. >> yeah. >> and the bilaterals with their staffs and you can see them there.

>> do you want to wait to hear what they say? >> you know, i'm glad that we covered this and my question is to you, what would actually move the needle for the market? >> for the tinny economy we shouldn't care about russia is a disruptive force it's not a bipolar role anymore. the press wants to say they want to be a bipolar role and our president will let them. we must not lose sight that this is a country that is only been a disruptive force not a country that is a trade force, not a country that we can -- only we can make them be a great world power. and i don't think that's going to happen >>well, huge influence in geopolitics. even the president mentioned between the two of us, 90% of the world's nuclear arsenal. >> all bad it's not like there's -- there

was an interview where he talked about cbs and everyone was a foe. and i point out that there's other sides to the rest of them. >> it's more or less everybody is a foe, to some extent. >> in reality, that's never been the case. >> right perhaps the largest take away is the continued hostility toward the eu and if you want to get back to a topic we care about, how much he keeps bringing up trade over and over again. that's the context by which he said they're a foe you get to autos and the concern there will be a tariff on autos coming from the eu. >> right. >> and that matters to business. >> i also app pra hoe. >> we'll get to amonojabbers putin did say it was time to talk about the u.s./russia relationship in his words, there are enough

of them now for us to start paying attention >> reporter: that's right. jim cramer might not have to find out what was said between the two men. our first cut of what was said between the two men. they've been behind closed doors for about an hour and 45 minutes a couple of blocks behind me here at the presidential palace. we expect it will go about 90 minutes. they're over time a little bit here we will wait and see what the leaders say when they come out we had the photo open this morning. the handshake and the mean faces, as you were talking about. definitely both men approaching this very seriously. vladimir putin there's been a lot of analysis of his body language slightly hunched over in the trail. president trump leaning forward slightly those are the details you have to analyst when you don't have a lot of information the president laid out the topics he said he would bring up in the meeting here is what he said. >> we have a lot of good things to talk about and things to talk

about we have discussions on everything from trade to military to nuclear to china we'll be talking about a little bit china, our mutual friend, president xi. >> so, as you point out, the president did not mention there the hacking of the u.s. election, the indictment of the 12 russians that was released late on friday or the poisoning of individuals in britain, which was a huge cry in london as the president was there over the weekend perhaps the president saving those topics for the close-ed door session of the meeting. he said he would raise some if not all of that. we're expecting them any time now. as you point out, we'll see that bilateral meeting with the two leaders and the expanded group of aids, the secretary of state, the foreign minister from russia will be in the room for that and the press conference later this afternoon both leaders will have the opportunity to answer questions here from the press who gathered from all over the

world here . >> we'll come to you often this morning. eamonn jaffers we turn to nicholas burns who is a cnbc contributor mr. ambassador, you've been helping us today's events all morning long what are the goals, do you think? what are the ideal outcomes, as you see them >> you know, i don't think this is a summit where you can see a lot of forward progress. these two governments are miles apart. the issues, and sometime that's going to be fine you'll argue your differences. all though, with president trump, you never know because he's in this frame of mind he spent the last week attacking our allies merkel, may, nato, the eu and he's been kind to putin. i thought it was a missed opportunity at the photo open at the beginning. the president should have raised our differences. crimea, the nerve agent attack on the united kingdom, and definitely the grand jury indictment of 12 of putin's

military intelligence officers diplomacy is not just about being nice to people it's about getting your way. protecting the united states and so i'm hopeful that we'll hear some positive news about progress perhaps on nuclear weapons agreements to go back to look at intermediate range nuclear weapons. these two countries have to provide for the nuclear stability. but i think on the other issues, i'm afraid the president has been too weak, too passive he'll give way to putin. >> the president mentioned china specifically and president xi. what, theoretically, could be done on that front as at least the market pays attention to whether or not the $200 billion in tariffs goes through. >> you know a little unclear what the president meant he may have meant that russia needs to join the united states and china in trying to leverage north korea on the nuclear weapons side i don't see that russia has a

lot to do with the u.s./china trade situation. russia is a very small economy, as you've been talking about it. it may be that president trump feels that these are the three top leaders of the world he has a great theory of politics. >> mr. ambassador, jim cramer. isn't it -- couldn't you argue that only president trump makes it so that the top three leaders and the bipolar world a russia that was reduced to being a small disruptive force and because of just mutual discussions, going to see putin, putin has been seriously elevated by the president of the united states. >> i agree with you, jim if you're going to have this meeting, and you got to have a channel between these two leaders. we have to be clear about the differences between us there's really no american impetus to have progress we want to draw some red lines in front of putin. don't invade our elections

again. no more cyber attacks. if you launch a cyber attack on our election, there will be consequences that's the kind of discussion there should be. i'm not sure the president is tough enough to have that discussion with putin. if he's not going to be -- if our president is going to be strong, this is going to be a missed opportunity and putin could perceive that the united states is weak itself. >> ambassador, specific to the format here of these discussions with no note taker, just the two of them and translators, is that unlike anything you've seen in the past i wonder what we're going to get out of it. >> you almost always want a record particularly if you're meeting with an adversary. we always had a note taker in the room you don't want the russians to come back and say trump committed to do "x" when he didn't commit that the russians will lie and cheat and twist the logic of what happened so john bolton or secretary

pompeo ought to be in the room probably john bolton takinger have -- verbatim. >> the president did tweet our relationship has never been worse. and now the rigged witch hunt. this morning, ambassador, the russian foreign ministry retweets that and said "we agree" does it tell us what the meeting might be like. >> this was a surreal experience to see the exchange. for president trump to blame the united states, president clinton, bush, president obama it's wrong it's twisted it doesn't make any sense. and for the russian foreign ministry to be agreeing with president trump that we america are the problem. that's not the case. that's not the truth so i think he just walked in to a russian trap this morning and incredibly unwise. i would say even ignorant of the president to be blaming the

united states for our problems with russia. imagine what ronald reagan would think of that. george h.w. bush thinks of that. what any american president thinks of this our presidents have never acted this way we've always been proud of our country. we defend our country. you don't blame our country in front of a meeting with president putin. >> just past 4:00 p.m. there the meeting was scheduled to go 90 minutes and the two would be joined by their advisors, according to some reporters on the ground, the meeting is still going on about an hour and 45 minutes later. we'll watch as it develops mr. ambassador, we'll see you throughout the morning appreciate it. >> thank you so much ambassador nicklaus burns. a lot of news when we come back got research calls on netflix, amazon prime day today a lot going on "squawk on the street" continues in a moment.

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estimate estimates. jim will have moynihan tonight at 6:00 p.m. eastern time. consumer loans up 6.6. >> yeah. >> some of the best earnings for that unit in eight years. >> people can't wait to sell the stocks jpmorgan is down interesting wells fargo was regarded as the best because there was a lot of stuff on the conference call. i think bank of america should be regarded as the best. their efficiency ratio keeps getting better and better and better they're making a lot of money off deposits they have a giant deposit base wealth manager doing great i want to talk about the return on the equity. it's terrific. but i want to focus tonight on the digitization we are willing to pay any amount for mastercard and visa. when a company spends a lot of money and makes it so you can have more than a thousand branchs close and do a lot more business because people like the app, that should be included in the thoughts about the bank. i want to emphasize that

if only because these guys aren't just sitting here and saying, you know, woe is me. i'm brick and mortar they're saying, look, younger people love the app. that's the way to get people to open accounts. they're paying less per deposit than everybody else. that's what irritated a lot of people last week they're paying more for deposit and getting less i think it was a good quarter. i want to emphasize again, i have not seen this group as despised as 2009 and these guys are making a lot of money the growth is good the year over year stuff the revenues rose 8% when is it going to matter when will people say, you know, they turn the lights on and make a fortune. they should be citi had a fantastic quarter. >> let's go over those for a minute we were here friday morning talking about the numbers. you like jpm you weren't crazy about wells fargo. conference calls happened and things changed a bit. >> yes. >> you mentioned wells

actually -- >> they had a great conference call. >> they had a strong conference call which then did what to the narrative? >> i think what happened that's a great question, first of all what happened you recognize very early on in the conference call they didn't lose any substantiative business from all the different problems that they had. they chose to be more conservative they were saying, you know, listen we're constrained now housing is constrained in lending. commercial real estate is constrained in lending understand we're not going to do loans that we shouldn't. we're not going to go down the path of making bad loans it was a considered call it was a smart call. you're going to hear a lot of people saying wells is doing better than expected you know, the release did not do wells justice. but tim sloane did i have to tell you, when i sat back i said why is that stock doing better you read the conference call it's because they're not going to blow themselves up. they were the most cautious of every bank and they're being

rewarded with a higher evaluation. >> we're awaiting goldman sachs and morgan stanley. >> tomorrow. >> yep morgan stanley wednesday. >> right we cannot say jpmorgan was bad but, you know, the stock was -- it's the group that is so hated. the whole story around the group is, you know, ten year, you know, the rates are not up enough and they're starting to pay depositors more. if we got the 10 year back to where woe is me and the last days of january, by the way, the last time we were up here, then bank of america, the conversation would be 32 or 34 jpmorgan would be 113 or 116 it's ten year, ten year, ten year all i would point out and the best reason to like the banks is now we're at 2.8 everyone thinks we're going to 2.7. when we were at 3, everyone thought we were going to 3.2

i don't think it would take much turning around ten year. you don't think we've seen the high for the year on the ten year. >> i think the ten year can go up i'm interviewing larry kudlow on wednesday. the expansion is amazing most importantly, the deficit is huge i think what the deficit huge all of this stimulus it's hard to imagine that the ten year stays where it is. and i want to caution people when you're throwing away the bank stocks, what you're betting is the ten year is going to 2.7. you're as foolish as ever thinking it was going to 3.2 the static picture is a wrong picture. >> year end 2.65 stubbornly >>well, i don't read it. there you go i was busy watching the world cup. the president was doing that, too. >> yes. >> and the people who rig the

election, it was our election? >> yes. >> thank you. >> when we come back, cramer's mad dash and count down to the opening bell we have some related news on goldman sachs from the times today. we'll stay on top of the trump/putin summit futures are steady back in a moment ♪ introducing e*trade personalized investments professionally managed portfolios customized to help meet your financial goals. you'll know what you're invested in and how it's performing.

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counting down to the opening bell about six and a half minutes before we get started with trading here. you want to talk arcanic.

>> there's chatter about a possible lbo now, david, arconic has been a horrible performer you realize that the company is performing horribly. i mean, horribly and aerospace business it's just a disaster. >> this is terrible. >> no, it really is. every bit it should be terrible. people are thinking, you know, it is down so much someone wants to take a run. it has good aerospace and good auto this is maybe the most brutally run major american company. >> that's saying something. >> no it isn't no it isn't. when you look at what they've done to the aerospace chain, how poorly their products have been received when you speak to ceos and n the aerospace chain.

i think they're equity run elliot did the right thing you remember who did run this company? >> clinefeld. >> right. >> wrote an e-mail he shouldn't have written late at night. >> yeah. private equity has an enormous amount of money that is not yet being used about a trillion dollars you'll hear in terms of funds raised but not deployed clearly they're looking for opportunities. this is a turn around, though. >> look, i like the new management but the turn around is not -- the turn around -- the stock is down here because the ceo said listen this is really bad. and we got more work to do so if i were private equity, i would steal it right here, fix the problems of aerospace, spin off a lot of other, and let's say extraneous different things. keep the truck lightweight and i think you'll make a fortune. >> okay. all right. we got an opening bell a few minutes from now we'll have more news, as well, on the continued back and forth

, tween disney, comcast, fox and sky. don't want to miss that when we come back.

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you're watching cnbc "squawk on the street" live from the financial capital in the world a busy monday. a busy week heading our way. the president and putin, have concluded their meeting. we're getting some video coming in now, all though no audio on this we'll watch that along with markets, which held in there obviously, friday was an important day. let's take a listen to what they're givingus. >> all right

we're a good start [ opening bell ] there's the opening bell at the nyse ringing the bell at the big board it's o'shares highlighting the third anniversary. over at the nasdaq it's bank of the ozarks celebrating its new name bank ozk after having some news last week and surprise action on that. a lot to get to today. going to be a busy week, as we said earlier with chairman powell on the hill tomorrow. earnings season kicking off. and media news, i think, will

start to take center stage once you start to report. >> let's talk about it the continued fight over fox and sky between our parent company comcast and disney where did we leave you we'll take you up to now we can tell you, at this point, and this is based on conversations with people familiar with the continued situation there, if you want to call it that and it does seem highly unlikely at this point that comcast is going to counter the $38 a share cash and stock deal that disney has to acquire the fox assets we've been talking about now for many, many months. it's not completely clear, but it is, again, highly unlikely, i think. the view is from the comcast camp at this point as a number of things have sort of given them pause in recent weeks. in fact, including the decision by the government to appeal time

warner, at&t why? only because it would give pause to the fox board yet again but even beyond that, the continued belief that rupert murdoch, in some way, would favor a disney bid the idea that even were comcast to cook ba-- come back in the l it might not be enough to actually get them the prize they sought and the belief disney would need to encounter it needed to. the timing advantage disney has on anti-trust, as well you put it all together and the belief, i think, it's fair to say in the comcast camp you would have had to go to a high number it would not have been a responsible thing for comcast. i think it's fair to say is seen as highly unlikely that comcast will come back with another bid to counter again the $38-a-share

deal that disney has in place to e acquire the fox business they have a recommended deal from the board, at least of sky at $14.75. in fact, as you might expect, comcast now much more, if not solely focussed on winning that battle and it is in light of that, as well i would note it was filed late on friday. timing wise it was done not to hide but simply because the comcast bid didn't come through until thursday but it is worth noting something that was not in previous filings from disney and the partner fox when it comes to sky and the language is as follows, in the 8 k about six pages long. it says 21st century fox may elects not to increase the price offered by it in the sky

acquisition and any increase in the debt financing from the sky acquisition would require disney's consent which disney may elect not to provide we have that second part there, guys move it ahead. we're stuck. so listen to me. which disney may elect not to provide. and so that language was not in previous filings you can view it any way you want it doesn't necessarily mean that disney and the partner fox will not choose to compete here with the $14.75 price but it does, for the first time, in the filing, at least, give us the possibility that disney and fox will choose not to and so we are now left, it would seem, with comcast much more if not solely focussed on winning the sky assets, as i said. it's highly unlikely by the way, they would have had

to have made a bid by the end of this week. and then there's this. which is, you know, i noted this research piece from todd younger at burnstein last week danger they see for disney in buying both of these assets and adding as much leverage as disney would in the own balance sheet. he said we struggle to see how disney can simultaneously make this a sustained investment while also deleveraging even in a stable macro environment we fear they will either underinvest in a direct to consumer protect or fail to delever. again, we've had a little screw up in the control room with some of our -- but important to know. that's where things stand. >> that's very interesting

there's still, i would say, a plethora of research that expected a higher bid from comcast. i did not because i listened to your reporting i think it's going to cause a reevaluation of both stocks. because there have been, if you go back in time, not that long ago, there have been the expectations comcast will come back comcast will come back i can go back to tate, literally, maybe a half dozen analysts who said this is not over that's why comcast has been radically revised up 10% now and i don't think it's done, if you tell me that the leverage isn't so great that they can't buy back stock. >> right well you have to figure out sky. let's assume sky ends at $14.75 and disney and fox choose not to compete. that would prevent them from perhaps having to have that opportunity to counter for sky,

should comcast, in the highly unlikely event choose to compete for the fox assets this is where we're going to be. by the way, on the sky front, we'll also see on the uk take over law, they've got some time still on the fox side to make their filing for their bid and then the clock would start to get you to an official auction under uk take over rules. again, it does appear, at this point, certainly, that comcast has backed off completely on fox assets and is solely focussed, if not very much focussed, let's say, on sky and disney, for its part, telling us for the first time at least it may not elect to provide its consent for fox to go higher. >> your point on thursday was that the stocks were telling you, i think, as you put it, each one had their man. >> yeah. the analysts refused to, but

david has done more reporting. the analysts are looking at models and saying comcast has enough leverage. enough debt power. they have to go higher they're not thinking like business people. they're thinking, you know, this has got to be a bidding war because it has to be that was dealing the idea you had two irrational players i worked for brian roberts but he's not an irrational man bob iger is not an irrational man. they want to do deals so they're more international in scope. there was no reason to think they were two gun slingers and everybody had to lose. >> meanwhile, david, thank you for that we'll continue to watch the story. you see the price action on the media names. we did get a picture as the one on one between the president and putin is over. they've been joined by their advisors the press availability not too far from now we get back to eamon >> reporter: that's right, carl.

call it just about two hours and change for the two leaders to be behind closed doors. one on one remember the translators and the two world leaders in the room for the early session. the one on one bilateral they're calling it now we saw the pictures come out of what they call the expanded bilateral. it means the russian side and the american side face to face in what they call the hall of mirrors there in the presidential palace. this is an opportunity for the two sides to have lunch, continue the discussions that were started in the earlier session. president trump was asked by reporters in the room what he made of the initial meeting, he said it was a good start a very good start. so the president seems enthused by whatever it was that happened behind closed doors. not clear when we'll get a read out from the white house on what the content of that conversation was. but at some point, you can be sure they'll let us know if anything was agreed to we should see more reporting coming out of this expanded bilateral session with the larger group of leaders. you can see mike pompeo, john kelly, and other officials including the u.s. ambassador to

russia all sitting on the u.s. side of the table. so a heavy hitter group of diplomats now involved in the negotiations with their opposite parties on the russian side. then we'll see that press conference here. we expect maybe within a half hour but everything is a little bit fluid here things have been sliding throughout the day we'll wait to see when we see the leaders side by side taking questions, carl. >> why can't they -- president trump say, look, before things get serious, we have to have a conference nato and the front line states have to be able to talk about what needs to be done with crimea and come back to the russians and say we understand your security concerns but this has to be solved i feel the big overhang is crimea not the fact they tried to rig our elections. i don't get any sense that the president is with nato and the front-line countries. >> the president met with the nato nations last week we were there and it was a contentious affair the president was really, you know, at odds with the nato

leaders over the issue of military spending. i don't think he necessarily -- he must have gotten an earful at the session from the leaders about what they hoped and expected would say to vladimir putin. but i don't think the president necessarily sees himself as, you know, in line with nato when it comes to dealing with russia or the european union, for that matter the president, over the weekend, suggesting that the european union was the first foe of the united states that came to his mind so the question is, what guidance did he get from the nato leaders would he pass the guidance along. would he handle himself the way the nato leaders expect. the worst case scenario they called apiecement. th -- appeasement. >> isn't kind of viewing nato as a similar -- let's just say it's a toss up between nato and russia and we're not siding with nato isn't that a major change for the united states?

>> well, it's an enormous change we've never seen an president approach foreign policy this way. we've never seen a president who has listed the eu as a major foe of the united states and we've never seen the president being as brisk or demanding on camera and in person of the nato allies as we saw the president last week. and then going to london over the weekend, he released that interview just before he landed about theresa may and the harsh criticisms of her and how she handled brexit this is a disruptive foreign trip when it comes to english allies the question is, will the president be as disruptive here as he was in the other two locations? we don't know the answer yet, jim. >> we'll come back to you in a little bit a few of the names we haven't gotten to. netflix got hit this morning with the second celebrating on the street after ubs last week not paying much attention to the shares up 1. 5%.

>> yeah. i think there's three firms trying to say tip your expectations wall street does not it's up 110% wall street does not want to temper expectations. i think the last couple of quarters lead people to think if i'm not on board, i'm going to be crushed it's a steam roller. i don't see anything in the quarter that necessarily is going to be different than the last few quarters. but there's a lot of people that want to get off the bus saying i'm happy to be up 100% growth. >> yeah. most stocks don't move 100%. >> no. we're 109%, to be more specific. we mentioned the banks, of course, near the top of the program. bank of america earnings it's worth noting many are up nicely this morning after friday, a mixed picture. one name we did mention is goldman sachs. we should note, there was news in the "new york times" late

yesterday record -- reporting that early this week it's expected to name david solomon as the ceo it doesn't mean he'll ascend to that position immediately, but they'll tell us that and what date he'll take over from lloyd blankfine as the ceo not a surprise in terms of mr. solomon becoming ceo simply a question of timing there as to when given he was elevated to sole president, of course, of the company being out -- it was harvey -- >> yeah. it seems like there's faux intrigue here. i woke up and the "new york times" has a story like faux intrigue. >> no. it's not insignificant that mr. solomon will be running goldman sachs in the very near future. >> there are reports of succession at goldman before in march and lloyd quickly responded with a tweet saying

it's the wsj's announcements not mine i feel li . >> i think he reads it more. >> i did speak to david solomon in late april. i talked about how he was changing his responsibilities as president and potentially preparing, of course, for stepping into the ceo role here is what he said. >> any responsibilities any board has. we have a very, very deep team, broad bench. i'm in the president job for 15 months so over the course of 15 months, i've had a chance to spend more time on areas in the firm where i had hadn't as much exposure over the course of the last ten years where i was running the banking business i think that process is an ongoing process, and, you know, the board and lloyd's decision is to how the succession will play out. >> aparentally we'parently we'rg closer.

>> look at the "new york times," maybe it happens. >> dow is almost flat here down two points. we'll get to bob >> reporter: good morning. happy monday we started strong and faded a little bit oil is a big problem chevron and exxon. i want to show you the banks and better reception than on friday. bank of america there. they're up and the other names citi, jpmorgan and wells fargo up retail is having a good day. the retail sales numbers even a month over month were strong so ascena, macy's abercrombie on the upside that's the best since september of 2017 i think the number was health personal care up 2.2% internet is strong month over month these are good numbers. bars and restaurants up 1.5% energy is below $70 and that's a

problem. we've got congressional oil minister talking about pumping a little bit more oil at the summit there so these are big moves now to some of the names. remember, generally, they've been on a slightly upslope in the last couple of weeks so this is a big down day for them earnings out jp hunt good numbers overall. big intermodal but a lot of talk about higher costs. we know about what has been going on about higher wage costs. they talked about not just higher driver costs, higher rail costs, in general. higher personnel costs, in general. the whole staff is getting paid more increase maintenance costs, increased facility costs, a lot about higher costs overall but you can see beat the numbers here and revenues, up, by the way more than 20%. revenues are up being offset by higher costs and black rock great numbers but its down i'll tell you what is going on here, there's a concern about slower growth overall here

so in flows are weaker they're up 1.3%. but weaker than last year. that's a little bit of a problem. remember the atf business was going gang busters last year it floats all over the place black rock was a big beneficiary. it's slower this year. it's not negative but it's slower the growth everyone saw last year isn't happening this year they've got over $6 trillion in assets under management. their fees are still up. their revenues are still strong. you see the numbers are all good it's that everybody says oh, okay we're not going to get as much numbers the growth won't be as strong. ultimately the fee structure isn't going to be as high. you can see the effect it had on the asset managers this year they're all down big black rock only has 15%. look at the other numbers. this is before the start today that's the concern about slowing growth, and, of course, the concerns overall about going toward exchange traded funds you see the stocks today trading

to the downside. blackrock is down. the dow is turned negative a couple of minutes ago. >> thank you very much let's get to the bond pits to rick santelli. good morning, rick >> reporter: good morning, carl. like many trading sessions, the short maturities like two-year notes continue to lead the way toward higher rates. if you look at the 10-year chart of two-year notes you can see in 2008, we did hit as high as 3% up two basis points on a two-year note yield. also up two basis points on 109. as you can see on the chart, it was interesting with retail sales this morning at 8:30 a.m. eastern. you can argue the aspects of the numbers, especially the revisions that were positive the control setting used to plug into other grander numbers like growth gdp it was a bit disappointing we didn't make the high yield on the number

we backtracked a libel nonetheless, you can see it powered ahead a bit. and 2.78 is the low close since we made the 3.11 closing high. to give some perspective, we may be in a range. and we may be toward the bottom end of well above last year's high, for example, which was 263 if we look at what's going on in euros versus dollars especially as i look at all the foreign exchange markets, they have had moments of being busy but for the most part, they seem to be in a compressed range. if you want to flip it around and look at the dollar index which is very similar. what's noteworthy here is we're about three-quarters of a cent below high close for the dollar index. right around 95.33 even though we are down a bit, we're hovering above a very

important level. >> rick, thank you very much before we go, jim, i know you were talking about j & j last week >> i read closing arguments this weekend on the case they lost. they're up against, this is a discussion about whether j & j knew that there was some asbestos, of course the code red in talc, and kind of hidden for a long time. the experts say who i follow, of course you can follow other experts. and that was not the case. and it certainly was a very big issue. but when you read the folks in nature of the plaintiffs and who died and what's going on, you can see why, even emotionally, the closing briefs for the plaintiffs is just staggering. the closing briefs for the

defense is clinical. maybe you can win clinical, but this is a port of call with the jury, and the clinical, i kept having to go back to what i learned in harvard law as opposed to what i felt >> when we come back, we're going to stay on top of developments in helsinki, where president trump and vladimir putin are holding their summits. we're back after a break barely enough time for this man to take a bite of turkey. but for cyber criminals it's plenty of time to launch thousands of attacks. luckily security analysts and watson are on his side. spotting threats faster and protecting his data

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let's get to jim and talk trading. >> no end in sight when you talk about broadcom this is on the fly rewriting the analysts saying we'll downgrade the stock because you're totally shifting your shareholder base this is what happens when you

disappoint your shareholders >> is there a new case to be made in that area? >> yes, i think there is, but you have a shareholder base that wants chip and ca is not chips i invited hawk i think hawk tan at 200 is going to be able to tell a story, they're going to say you know? this is ridiculous, i'm going to be a buyer >> t the people who sold on friday, where are they i don't know, the sellers believe that the 10-year, that the treasury is going to keep going down in yield, and i think that's wrong, and i think brian is going to tell a very good story tonight on "mad money. the double digitation of banking is not just something that goes onned a mastercard and visa. >> is it called erica?

>> erica doing well. they're partners with pay-pal, it's not just that erica is out there all by herself why are you nodding? >> i was thinking about erica. >> i also said enbridge. what a great show? >> we got a lot done jim, we'll see you tonight, "mad money," 6:00 p.m., we're going to stay on top of the summit in helsin helsinki, li cere tveovagofhe news conference, dow's at 15 we're the most isolated population on the planet. ♪ hawaii is the first state in the u.s. to have 100% renewable energy goal. we're a very small electric utility. but, if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪

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good monday morning, welcome back to "squawk on the street. the president calls his one-on-one with putin today a good start a more than two-hour meeting, as the news conferences will follow shortly. we're watching earnings, netflix tonight wrapping up some pretty good trading data. >> and we'll go live to helsinki for the latest

>> the s&p saw it's highest close since february the markets are gauging the summit at helsinki and amazon prime days set to kick off today let's get to the president's meeting with russian president vladimir putin >> we saw two sessions here, the one-on-one session between president trump and vladimir putin, it took just about two hours, then we had the expanded bilateral. the president on the way in to the one-on-one gave a few remarks to reporters and those who were in the room there here's what he had to say. >> i think we have great opportunities together as two countries, but frankly, we have not been getting along very bwel

for the last number of years i've been here not too long, it's getting close to two years, but i think we'll end up having an extraordinary relationship. i have heard you say over the years and while i was campaigning, that getting along with russia is a good thing, not a bad thing. >> so the president there stressing the possibility of an extraordinary relationship with russia the poisoning allegedly by russians of those in great britain or the hacking of the united states in the 2016 elections, despite the indictments that we saw come out friday afternoon dramatic details in those indictments. we'll wait and see if the president brought up those issues with vladimir putin behind the scenes. and of course, we have this press conference coming up which should be a fascinating thing to watch not clear when that's going to

happen, the schedule a little bit fluid here throughout the afternoon and evening. that meeting took about a half hour longer than scheduled >> preparations in that hall being made as we speak amon, in helsinki, we're going to show you a live shot of the room where the president and putin will meet. we're about an hour behind schedule let's bring in george freedman, strategyford founder and chairman michelle, early days here, this morning at least, but your reflections on what we have seen so far today >> it occurs to me that president trump is continuing this tradition, president obama preparing to do a meeting with president putin. historically we have tried to

have some kind of relationship with russia, although it's contentious. because it's very much in our interest, we want china and russia to remain historic rivals as they have been. and we want to have a good relationship with russia and a good relationship with china and hopefully they continue come together because they would be a tremendous force if they did president trump wants to take the measure of the man one-on-one, i think. >> given what you just said, michelle, what did you think of president trump and his preview remarks, what did you think about his remarks about xi jinping? >> i think that president trump very much sees xi jinping and vladimir putin as people who are very much focused on what their national interests are, and he understands that, as opposed to the way he talks to the people

in the eu, and i think he thinks of them as hypocrites, they talk about what an enemy they are with russia and then they get their energy from russia i think he understands russia better than those in the european union >> i wonder what you think the chances are, that crimea, the indictments and even the nato summit may have been a top i believe for discussion >> i think the indictments are not going to come up they can't come up, there is no treaty for extradition imagine that a country indicted cia agents, how likely are you to want to have a conversation about them it's a very strange thing that happened with those indictments. mueller knew this trump summit was taking place i don't know if there was some

legal reason why he had to issue them just before if there wasn't, then i have to raise the question, why before a presidential summit with putin does he make the indictments then but he did, and i think the only reasonable thing to do is not discuss them, there's nothing to be done. >> the russian foreign ministry said that it was disclosed as an informational false flag inte intended to spoil the atmosphere, do you think that's what mueller was up to >> i don't know what the reason was, so he may have had a compulsion to do it. the russians are not going to agree that there was a crime committed. the russians are not going to turn over gru agents to the united states. there's no way to find the center on that particular issue. so i strongly suspect it just

didn't come up >> i mean you really think this should not be mentioned, that there is now proof of russian intelligence officials intervening in our presidential election isn't it all a point of having an extraordinary relationship with russia as the president tries to do and improve situations as in russian hacking? >> there was an allegation of hacking, there was no trial, there's been no evidence indictment isn't the same thing as conviction. i know countries try to influence convictions of each other. let's assume that the cia had gotten involved and tried to influence the elections in other countries. an indictment was issued for them are we going to turn them over i mean that's not a possibility.

we can argue and discuss it if that happened. but again, trump's position on this whole thing is that its a bit of a witch hunt, i don't know if it is or isn't, but that's his position. the way that mueller issued these indictments is an interesting question so there are a bunch of other issues aside from what the americans are interested in, such as syria, such as the status of the ukraine, such as what is going to be the relationship between russia and countries like poland or maybe our allies these are major issues on the table. they're potentially soluble. the indictment on the hacking is not going to be soluble. it so the interesting question becomes whether or not because that hacking occurred, does that end our relationship with the russians and trump's position is, no it doesn't, it can't.

>> so your question stems from the idea that the united states is one of the few if only countries in the world really founded on principles. freedom of expression, democracy, et cetera if you read what henry kissinger has written, that's ultimately well and good. but there's countries in the world that don't believe in your principles, and yet we have to deal with them and while our principles absolutely matter, and we should try to spread them around the world when we can, but whenever an event like this happens, what's in the self-interest of the united states, what can be accomplished, i think what we can hope for is maybe stabilizing syria. which could reduce the number of jihadists in the world, and we know that president trump cares very much about national security on that front >> yeah, well that's a bit of

out of departure from the neo conservative era, in which we did try to impart our principles in large part over the last 15 or 20 years. is there a line to be drawn between the outcome of today's meeting or the evolution of this relationship, and what stocks or american businesses think about, or what they think matters most? >> the relationship with the united states and russia is enormously complex and involves all of these things. the russians don't see the u.s. as principled. the united states doesn't see russia as principles they have some economic interests, they have some other interests. the most important thing is we do not want to see rush that return to the status of the

soviet union when it fundamentally threatened europe and the united states. the russians do not want to take a second role in history they don't want to be treated as they feel they've been treated since the fall of the soviet union as a trivial power that doesn't have any attention paid to them. this goes back 20 years and the cost of a war, that they feel they have been treated, all these things have a history. we can start with small things, not a very small thing, but an important thing is the americans are allied with the russians in many things, they control iraq, they control lebanon to a great extent, they are a powerful, power force inside yes, ma'men. do the united states want a powerful syria no, they don't but if there's a demonization,

it isn't going to work and israel is a country that's prepared to go to war with iran over the issue >> it's hugely complicated, it gives you a taste of what they might be discussing for two hours. michelle, as a final thought, i get that president trump is the fourth american president to try to reset russia relations. his three predecessors, i guess you could call them failures so he's f ee's trying to differt approach so we're goc to look at the long-term implications of confronting our friends, our allies, nato, walking into this meeting a foe with vladimir putin, and taking what seems like a very friendly meeting with leaders of north korea and russia, and ultimately is that going to work and what other consequences are there going to

be from that approach? >> president trump is very rarely well spoken, we all know that, right? number one, what don't we want we don't want an insurgent russia that can threaten europe. and what russia has done since we set -- what israel has done since the fall of the soviet unio union--pick a side, whose orbit do you want to be in do you want to be in our orbit because we are defending you but we don't want to subs size your risky business as you become reliant on russia for your energy. >> guys, it's a good discussion, what removed from stocks today, but that's the news we're given. as we head to break, let's get a check on where we do stand

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welcome back to "squawk on the street." i want to update our viewers on that ongoing or perhaps soon to end competition between our parent company comcast and disney, for the assets of fox, and it's international assets, including star and india, fx and nat geo channels and others as well people think that comcast is -- for the purchase of those assets by disney at $38 a share half cash and half stock options. in recent days and weeks and considering it's moves, comcast has come together that it would have to go to a price traps that it would not necessarily be responsibility for the company, leaving even a differential as much as $3 a share, would not be

enough to sway the fox board, given any number of things, which happens to be the preference of rupert murdock of course, to the disney deal, to the decision by the department of justice last week to file a lawsuit in appealing the decision in time-warner and at&t's merger to, well, any other number of potential things including the timing advantage that disney has as well. comcast would seem now to be fully focussed on a deal that is close for it namely, it's 1475 offer to buy sky. 61% trades nationally, 31% owned by sky the special committee at sky,

1475 offer disney and fox are currently at 14 the question has been will comcast walk away with sky while disney walks away with fox and will that be enough for both sides? i should point out that in an 8k filing on friday, disney added an idea that it had not initially included and it's worth revisiting it. it's 20th century fox may not electric elect to increase the cost which would require disney's consent it's the first evidence we have at least that disney perhaps may put the brakes on and say this is it, it doesn't necessarily mean that is the case, they will not make a public statement to that effect. because under uk takeover law, it would be bound to it. but it does certainly give that

appearance our parent company comcast, up, 20th century fox shares down yet again. and really now you can start to back into a valuation that disney is looking at that will be the new fox, fox business and fox sports disney shares, for their part, also upper so slightly, but that's a trend that continues through next week. >> do you think that will force them to raise area offer and it's capped at this level from fox? >> we asked last week, and neither side was in a position to necessarily buy both, given the numbers that they had gotten to in the valuation level. they went from 28 to 38, an enormous industry. and sky as well, which was at 75

and is now at 1475, just percentage increases, which had been agreed upon deals >> and then down the road, when disney, if in fact it does succeed and acquiring fox, which looks much more like lie, would it be interesting in selling the 39% ownership that it owns in sky to our parent company comcast? perhaps. and would comcast be interested in selling it's 30% of hulu. >> all this as netflix prepares to report its earnings this afternoon. i also want to update you on president trump and putin, we're looking at a live picture right now of helsinki where both president trump and vladimir putin are holding a joint press

conference they did wrap up a face-to-face meeting just a little while ago, what did they discuss? >> we join the admiral and helene mccross how do you think about the best and worst-case scenarios of this meeting today? >> well, the best case which is highly unlikely would be that president trump will walk out, take the podium, and turn to vladimir putin and say the reason i came to this summit is to indict you, mr. president for intruding in the u.s. election that's a fantasy, not going to happen that would be a truly startling turn of events what i think is going to happen is, the president will come out and be very collegial and very kind and say i think rather

flattering things about vladimir putin, how important he is, and i think the markets will like the latter, in the sense thats the not confrontational and it will allow an avoidance of the continuing meltdown that we're seeing of our u.s. allies in europe i think they'll talk about strategic issues, arms control >> at best, president putin can say it's a show of power, he has a one-on-one, two-hour meeting with the president of the united states, nearly insignificant economy, clearly a nuclear power. what does president trump say he got out of it? >> president trump, first of all, in reality, will have

gotten nothing out of this meeting, he will have further divided the united states from germany, the uk, france, our traditional european allies. what he will say is that he is opening dialogue with an important power in the middle east he will say that this opens the door for further arms control, but frankly those are empty promises unlikely to be achieved and in the face of what vladimir putin has done to the united states, this is not a good day for the u.s. presidency. >> wow, helenea, how do you think about market implications if any >> i think oil markets is a bit of a different story, i think president trump has actually gotten quite a lot from the russians, in terms of their cooperation with opec, it was the russians who took the lead in pushing for opec loosening the taps, they announced there would be a million barrel

increase so on the energy side, i think trump can say the russians have been helpful in the last few days, the russians have been saying they're willing to put more barrels on the market if needed. so in terms of energy, i think he can say that he has gotten something significant from the russians, in the last, you know, six weeks. >> just to stay on that, just for the moment, is the spr discussion being taken seriously today? >> i think the spr decision is being taken seriously. it is the softness of oil prices, we question how long-term and how effective spr relief would be. i think that's something that the trump administration is signaling, in order to push oil prices down further. they want saudi arabia, they want russia, everybody who has

barrels to put those barrels on the market >> in an interview leading up to the summit today with cbs, the president termed the eu a foe, at least he said in terms of trade. does that language in your opinion matter, given of course what we have already seen from him at the nato summit and at the g-7. >> i think it's a logical continuation of president trump's propensity to attack our closest pool of allies and partners which are the europeans. these are the nations with whom we share fundamental values, with whom our economies are intertwined. russia is our biggest trading partner overall. i do want to pick up on one

other point. i do agree that on the oil side of this, on the national gas side of this, we have seen the president calling germany captive of russia, further dividing the alliance, this gets into the north screen pipeline which is not going to be a bargaining position for the united states. so i think there are pluses and minuses on the energy side of this as well >> on that trade fine, turns out russia is our 30th largest trading partner. and guess what, we have a $30 billion trade deficit with them. here's what's happening right now. president trump meeting with russian president putin, telling the world he wants to see the world get alone. and afterward, he called their meeting a good start u.s. special forces joined

kurdish peshmerga forces in the mountains of northern iraq they were flushing out islamic state militants. a wildfire that killed a firefighter is growing quickly and forcing the closure of a key route into yosemite national park the so-called ferguson fire as scorched 72 miles. the empire state building in new york city, adorned in red, white and blue last night to celebrate the french soccer team who won the world cup by defeating croatia 4-2. want to get to our own wilford frost includinging goldman-sachs leadership >> kate kelly's article in the

"new york times" saying they could-the broader management committee met as they do every monday this morning according to sources, it was briefly discussed there, but not formally announced of course they report earnings tomorrow morning and every quarter before earnings, they have a bigger, broader call with all managing directors joining that all as well that's when they will formally announce the succession from roy blankfine to david soloman, that's after the announcement that david soloman would be the sole president in march. the thing that is still unknown is who else will be promoted to take david soloman's place as president and ceo. my guess is that won't be happening tomorrow, david soloman will be given time as the full ceo to see who else will be promoted underneath him.

and testimofinancials by th are the best performers right now thanks in part to bank of america earnings we'll go back out to the helsinki summit, with the dow now up almost 20 points, stay with us.

we have the crosscuts, we have an earnings boom that's now under way, it looks like 20%, 21% earnings growth. we have liquidity tightening

from the fed, which generally should be seen as stagflationary so there's all this these crosscurrents, and for the meantime, for the past six months, the market's been absolutely stuck in a range. >> lack of breadth in equity markets is accounting gore most of the gains that's came out of the conference call today. that's true, is it troubling, though >> ultimately, it will be troubling if it persists and we don't have a rotation into other sectors, technically when you get into a very late phase or a very full phase of the equity market while the s&p is being helped by only a couple of really big names, the russell 2000s make a

relatively good small caps and on the financials, i think they got sold down prematurely because of fears over the yield curve. i think that whole argument is probably going to be premature >> because the curve will steepen again? >> historically when the curve has inverted, other things have been place that are likely not going to be in place for a while. the main thing that's usually also in place, is that the fed by then has raised rates well above the so-called natural rate or our star. and we're still under it, and even if the fed were to tighten three more times, the fed would barely be in restrictive territory. i never want to say it's different this time, but that will be a component that will probably be missing for a while. and that's why i think perhaps the financials have been punished too early >> it's a pretty glass half full view of the market right now

what about the uncertainty factor everybody's talking about uncertainty for investors, even blackrock cited that, down 81% on trade it doesn't seem to be impacting the core economic data so far, but how do you think about the uncertainty factor as it relates to the real impact on the economy and the investor psyche on the markets the uncertainty is a factor, and we see it play out in the market, so in january when the s&p peaked at 128.73 the full ratio was 19.5, today it's 16.2, i think so that's a very meaningful compression in valuation, and that's where the uncertainty is manifested in my opinion >> we only have 30 companies or so out, but 87% beating, on 25% growth

90% beating on top line on 9% growth, the question is whether the market is going to applaud that at all the way they did not in q disease1. >> the market doesn't -- q1 was up 20% year over year, q2, 20%, by q1 next year, the numbers are back down to 20% next year we could be trading at a 14, 15 multiple. but the market generally doesn't reward this kind of earnings growth because it's sort of transitory >> meantime, amazon is trading at a record high, it is prime day, courtney reagan has a little update on what we can expect this year >> amazon's fourth annual prime stay event, it begins at 3:00

p.m. eastern today, what's different? it's going to be six hours longer this time there will be deals at whole food stores and amazon.com this time more than a million deals this time compared to hundreds of thousands of deals last time driving membership is really the point of the event there are more than 100 million prime members globally estimates say there are 16 million in the u.s and a prime member is much more valuable, spending more than $800 more than a nonmember annually forsythe research estimates that $3.4 billion will be spent during the event compared to $2.4 billion this year amazon products have a discount

of about 34% up to 50% off cost, puma, champion apparel, lucky and hudson denim too some kenmore refrigerators, ranges, washers and dries, and that 23 and me health and genetic kit, that's half off that's one of the last year's best sellers alex partner surveys say nearly 40% of americans plan to shop on nonamazon websites today and tomorrow, that's up 8 percentage points from last year. so a rising tied may just lyft all boats today. >> amazon started it but they all get the boost. coming up later on "mad

money," don't miss an interview from the chairman and ceo of bank of america, brian moynihan. we have a lot more from helsinki as we aiawt president president and trump. we'll be right back with the dow up 10. ♪ each day, brings new possibilities. that's why you need a partner dedicated to helping your company reach its goals. u.s. bank -- the power of possible.

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netflix, the first of the bigs out with earnings find out why market watchers are cautious of this high flyer. more "squawk on the street" coming up.

live shot of helsinki and the room where president trump and vladimir putin will address reporters from around the world. they might be getting close as they start to make final preparations what a busy morning in helsinki so far had opening pleasantries between the two world leaders, face to face, one on one bilateral, and expanded bilateral in which

advisers including translators and ambassador huntsman, john bolton we'll see how they elaborate when they take the microphone in a few minutes. dow is down nine points. let's get to rick santelli for the santelli exchange. >> good morning. i would like to welcome professor charles libson you were telling me some of your observations from israel today with goings on in helsinki, what do you think it will accomplish, and will part of it be with regard to germany, nato, energy, how do we put this all together. >> first thing is the russians are not going to back away from the pipeline of germany. they're not backing away from that we can put pressure on the inju

germans, there's nothing the ri russians will do we want their help keeping the iranians -- >> i guess my question to you, it seems to be the most low-hanging fruit actually because maybe you could get mr. putin to at least acknowledge this is a major irritant and something needs to be done. >> right i think the way you do that is you say if there's more hacking, and apparently this year there's

been very little attempt to do it, if there's been more hacking, you should understand, a, our intelligence agencies will find it, and b, no matter what i want to do. >> we have to go to carl with breaking news. >> good. good >> rick, thank you very much rick santelli. i believe we're getting close to the beginning of the news conference the thing was pointed out this morning that the president didn't mention crimea or mueller's indictment from last week in their opening sit down but it is not necessarily that you would go in heavy handed to start an important summit. >> we expect them to discuss issues like syria, ukraine, maybe iran, arms control we know the president is very focused on russia's nuclear prowess, ways to deal with that. but the president himself in very brief remarks in the last hour described it as a good

start. he is looking at it as it seems as a chance to reset relations like his predecessors did. he is doing it completely differently. we'll see if he is more successful at it >> help us set this up, set the table successful at it >> given that a lot of the reporters doing the questioning will have just covered the brussels summit as you did >> that's right, carl, and this will be our first opportunity to really get a glimpse of this, i'm also going to be looking, and the think the rest of the world is going to be looking at the body language of these two men. both men seemed a little bit tense and there seems to be internet scrutiny around the world between the body language of the two men this morning.

>> we i think it's an important point that the 30th biggest trading partner for the united states, without a trade deficit with them. we're the evident biggest partner. partner. their economy is 16th among the world's exporters when it comes to trade, an issue that president trump focuses on, with nearly all our adversaries and trading partners, allies, it doesn't rank in the top ten list of issues for those two. >> yeah, that's right. one of the things putin wants as

a dlif raeliverable the businesses that are so valuable to them and therefore to vladimir putin's political leadership in russia, one of the questions is was vladimir putin able to get anything out of this, and if so, what was donald trump prepared to offer him. >> ambassador nicholas burns joins us as he has all morning that is interesting, ambassador. we talked a lot about questions the president may face but what are the more interesting questions putin may face today >> i think putin wants some assurance from president trump that the russian cyber offensive is not a deal breaker in the relationship putin wants an end to sanctions or some relaxation of sanctions on crimea, and putin also i think is very pleased about the fact that nato was so divided last week, that's been one of his longer term objectives putin would like to get american troops out of syria. we have 2,000 american special forces east of the euphrates

river, working with allies there, and putin has always wanted to end the syrian government, wanted to get the americans out. i would look for those types of issues to be discussed i think where putin and trump may come together is some progress on nuclear weapons stability. they have to negotiate a new strategic arms reduction treaty, do something about russian violations of intermediate range nuclear weapons. there will be perhaps an announcement that there's going to be a russian, american negotiation. i think that would be positive if that was announced. >> it does seem like president trump is focused on that issue this is being described in a lot of press reports as risky. there's clearly a lot of anxiety about the two men going into a room with only translators and no one else, none of their staff, no other note takers. who's most worried about what

we're about to see >> i think people in the american government are worried if there's no verbatim record of what the conversation was, that's why you need a note taker. it is not whether you trust the president, it is not that at all. it is do you have a record of this so the russians can't come back and say in two months president trump promised president putin he would do the following when that wasn't the case i don't trust the russian government they are very well within -- it is very possible they may come back, twist the truth and try to assume that president trump agreed to something when he didn't so it is really for protection of our own government that you have that. these conversations are not recorded the only record is what the interpreter writes down afterwards normally you have a note taker that would take verbatim notes >> the russian foreign ministry has not been shy about weighing in on developments in our own country in the past 72 hours they say the mueller indictment was an informational false flag.

are you surprised about their willing n willingness to speak out about things -- >> they're very aggressive they have it out for us. they are not our friends they will take advantage of every situation. when president trump tweeted it was the fault of the united states that the relationship is poor, the russian foreign ministry tweeted out we agree. that was a low moment for the united states to see the president walk into that trap. >> john harwood also joining the conversation you covered the obama administration which also tried to have a one on one with president putin, reset relations there. what went wrong, what are the similarities and differences between trump and obama on this? >> well, i think the similarity is both presidents initiated a reset. it didn't work because russia's behavior proved to be endure

ijable they invaded georgia at that time i think the biggest difference is there's every reason to think president trump is more interested in his personal interests than in the interests of the united states he's consistently bucked traditional conceptions within his party and the other party of what van what advances american interests, at the same time his campaign manager is sitting in jail for crimes related to money-laundering from pro-russia interests, where his former national security adviser pled guilty to a felony about lying with conversations about russia, and robert mueller has shown that specific russian intelligence agents were in contact with, among others, roger stone, who was a long time trump adviser. so i think president trump's interest is less about any of the traditional foreign policy issues on the table than in his

own survival >> mr. ambassador, was just on air, said issues were insoluble. >> bringing up the hacking and election. >> impossible to find a center to the argument. so is it unreasonable to expect progress in that line of questioning? >> i think president trump has given every indication he is not going to raise this issue of the russian cyber offensive aggressively if you look at the tweet this morning, he still says it was a witch hunt i read the grand jury indictment of the 12 officials. it is chilling in its detail we're now in the cyber age as we all know this is the first major cyber attack by the russian government on the united states and there's been no acknowledgment of it by the president, hasn't raised our defenses what he ought to do this morning, i hope he did, but he probably didn't, was to tell president putin if this happens

again, there are going to be direct consequences. more sanctions and certainly the united states has cyber capacity of its own to hit back if necessary. that's the kind of game you need to play with the russians. they only respect strength and i'm afraid our president is exhibiting a lot of weakness this morning in the way he's handled the meeting. the tweet, the opening press spray where the president didn't raise a single negative issue but raised all the positive issues, i think it is the wrong way tactically i don't think ronald reagan would have done this i don't think the bushes would have acted in this fashion they would have been more tough minded. >> guys, that just, nick burns' point illustrates what i was saying president trump is not alarmed about the interference why? because the interference as our intelligence community has reported was to help him and if you are interested in your own fortunes rather than

those of the american democracy at large, you are not concerned about that as nick burns just said, he has signaled that he is not going or he has no particular impulse to raise those issues, and you have to wonder whether the reason why the first meeting went on for so long without any other advisers present is because he was having conversations with vladimir putin that he doesn't want his own advisers to hear >> well, we don't know exactly why. >> no, we don't. we don't know for sure but if you look at the totality of the circumstances here, that is to say the president's long-standing financial ties to russia, their interference in the election, the prosecution of both russian intelligence officials and senior members of his team, i'm talking about what

presumptions have to be. you can't presume that the president has an impulse to solve a problem that -- >> i wanted to ask you, you were in nato before this, with all our european friends and allies, it was confrontational it ended in a somewhat happy place. i wonder how the europeans are looking at the meeting between president trump and president putin, especially after trump went after germany for buying russian gas. >> look, in nato a lot of talk was about the putin summit and they were worried about it you heard the president say on cbs he felt the summit last week started tough in his words but ended well because he got commitments for additional military spending from nato allies that you mentioned, but it ended in a strange place in that the president held a news conference at the end of the summit i