♪ live from new york where business never sleeps, this is "squawk box. good morning welcome back to "squawk box" on cnbc i'm andrew ross sorkin along with joe kernen, and michelle caruso-cabrera is hanging out with us again. becky is off a look at u.s. equity futures at this hour. dow looks like it would open about 106 points higher. nasdaq up about 40 points. the s&p 500 is looking to open 12 points higher let's show you what's happening in asia. the nikkei up over 2%. the hang seng down marginally. flying over to europe. show you what else is going on >> bleh. look at that >> bleh. that's your meh? >> meh >> remember meh? finally let's show you treasury yields

the ten-year is at 2.897 >> earnings from dow component just in, home depot. we will talk about them. this earned $3.05 a share for the second quarter way above the $2.84 estimate revenue was above forecasts. comp store sales, same-store sales rose%. that's more than the 6.6% analysts were looking for. the company also raised its full-year sales and earnings guidance and as a result the stock is up almost 3%. 2. %, up $5 at 199

>> the lira is rebounding this morning. let's show you what's going on the dollar is losing ground against the lira we got that? 6.5 lira to the dollar we saw several times during the trading session yesterday 7 to the dollar 7.2 to the dollar. willem marx has the latest >> good morning. we heard in the last hour from president erdogan speaking to supporters in the capital ankara about his response today to the u.s. efforts, as he calls them, to undermine turkey's economy. he called on turks to boycott electric goods built and produced in the united states. talking about choosing samsungs over iphones and he talked about the coup plotters back in 2016 being responsible for the depreciation of the lira, saying turks would stand up to the dollar and the

euro like they stood up to those two coup plotters years ago. he said turkish producers need to export more produce more. and those things that turkey imports, he said they should make them domestically and then se export them. clearly no sign yet that business here are feeling confident. we have seen the stock market not performing well so far today. >> let me ask you this, he says they should produce more of the stuff they normally import they import a lot of oil they can't do that on their own. that's a problem and how worried is everybody about defaults if they don't get this currency up, it will become a solvency

crisi crisis >> you're right about the oil. that's one of their major imports here they cannot produce it here. they've seen a doubling in realtime prices for that commodity. in terms of corporate defaults, no change. there we've seen the banks being offered greater liquidity by the turkish central bank, but no sign yet of the economic plan promised by erdogan's son-in-law that would help small, medium or large corporates here deal with that huge debt pile they've been encouraged to build over the last few years >> yep, willem, thank you very much over the last week, the turkish stock exchange down 2.5% the finance minister will do a phone call on thursday with analysts, but he will not take questions. only making a speech, i guess. >> the soap opera that is tesla continues this morning

musk announcing on twitter he's working with goldman sachs and a buyout from silver lake. he says i'm excited to work with silver lake and goldman sachs as financial advisers plus legal advisers on the proposal to take tesla private. silver lake says they are not been hired in an official capacity just a quick note, silver lake worked with dell on its take private and has worked on many take privates. this seems to be an advisory capacity, something which historically they have not done. on monday musk wrote a blog post about how a take private could work he said the head of the saudi arabian sovereign wealth fund has given support. that is leading to questions

shares of tesla off about 6% in the past week. up slightly in early trading the "new york times" is reporting this morning and several sources i spoke to yesterday would suggest that saudi arabia, while in talks to some degree, has not committed to do this anyone who was intending to do this or was committed in a financing secure type of way would have a term sheet or some kind of documentation or effort to step forward in that way. that has not happened. another major stumbling block is the idea of cfius if they're going to own more than 4.9% of tesla, this becomes a question over international security. people have talked about softbank stepping in there is no evidence that softbank is interested but if you believe softbank were

coming, all of a sudden you would also have a cfius review in virtually every instance unless you can find an american investor to do this, would have a cfius review the last piece is there are different triggers within the s.e.c. about number of owners. so there's a question about how many owners they can ultimately have under this scenario and how that works and the last piece to throw at you, this idea that investors will roll their shares into this that could work in the context of a retail investor, could work in the context of an actively managed investment fund. there are provisions in certain mutual funds that don't allow this kind of thing but most importantly index funds cannot just roll their funds into this. it's not like larry fink can go,

ah, we'll roll your 401(k) into this thing that's not how this works. there's more stumbling blocks. >> i have one basic question is it true that the managing director of the public investment fund in saudi arabia sat with elon musk and said let's take this private. would you have to have a term sheet? yes. but is that a core truth is that for real >> it would not surprise me in the least. actually i can suggest that the reporting that there's been meetings is accurate the question is the formality or informality of that conversation hey, michelle, if you ever want to take your company private, michelle, call me. i'd love to work with you on that that could be a great thing. >> elon musk suggests it was their idea

they came to him and said let's do it. >> i'm suggesting i could see that even them saying we're looking to diversify if you ever would think about it, we want to figure out how to do this. we have a lot of money to spend. we have a vision plan. trying to get away from oil. that part does not shock me. having said that, this idea of anything that you ever would walk out of a meet like that with certainty, and this is probably an unfair generalization, given the travels you've had in the middle east and saudi arabia, the idea that people float stuff and then don't actually commit, i've been in situations where people have actually made commitments in saudi arabia and then seem to find a way out of them quickly >> there's a committee structure over there that gets complicated. >> that's my point to put it mildly that's the point that's ultimately the point. a lot more questions than answers. but it continues

joseph -- >> getting this all out of the way. >> price of bitcoin dipping below the $6,000 level >> your two stories. tesla and bitcoin. >> these are my favorite, right? get out of the way and move on >> by ten after we want these done >> this is the most interesting stuff the first ten minutes. the cryptocurrency market has been under pressure since june ether also plummeting, down 30% in the last week alone >> yeah. furyk is on later, the captain of the ryder cup team which is coming up. you know where it is this year paris. >> you going >> no. but i love watching. it's going to be great >> he will make his captain's picks, sorkin.

one of them is a guy name named xander schaffle. >> xander schaffle, got it. >> what happened here? >> you're supposed to tell us. >> of course the express scripts shareholders are going to say yes. they're getting -- right >> i was told it was a folly >> i know. for maybe cigna. let the audience in. >> icahn dropped his bid

to drop cigna's $52 billion deal for express scripts. icahn telling cnbc the crossover was too big. given what the advisory firm said, we realized there's no way we could win shares of cigna unchanged. don't know if they've traded express scripts up fractionally. we glossed over that bitcoin story. you said if it got under 6,000 -- >> i might have to. >> it's not under 6,000. >> we're there went back up >> it's close enough >> yeah. you never want to get greedy with these things. if you think that's the low. i think there's a support level. it's around six. >> we'll see >> how much are you talking about? would you buya whole coin?

>> my staff would buy a coin what are you talking about you're talking about using my pocket lint? >> pocket change >> don't pocket lint >> that's what i was trying to do >> i'm buying lot. >> you're dlollar cost averaging in >> let's talk markets. joining us is jurrien timmer, and tim plum also joins us good to have you here. i'm generally bearish. i see negative risk sentiment all the time everywhere. it occurred to me this morning when i think about what we're talking about, turkey, seeing the minnows come up after the bomb goes off under the water. this tesla deal, at every market

top there's some dole that rings the bell this speaks to so many issues. vc money, so much of it. then also bitcoin. that is really the speculative froth. sucked up a lot of that crazy money. does any of this, mr. plum, speak to you about a potential peak in the markets? you are relaxed? >> i don't think we're relaxed all the things you're talking about are the reasons you can be bullish. markets don't peak when everybody is concerned about the different issues how big is turkey? smaller than greece and italy. it won't affect world economics. you do have a big worldwide economic expansion that still has legs

because of that you don't have to be that negative. >> you're bullish u.s. stocks or worldwide stocks >> bullish u.s. stocks turkey shows you there's a lot of highly debt ridden emerging markets. and i would avoid those. i would look at who is lending that money to those countries. >> i didn't know this about you. you are bearish. >> generally bearish >> as of >> god you don't want to know what's in my portfolio since 1998 >> but in the last month, in the last six months -- we're at 2821 now on the s&p when did you get -- >> bitcoin going to 20,000

>> when was that >> december. >> we'll mark you down for december >> okay. >> jurrien, you heard that, all my worries, that wall of worry that the market climbs and gets to new highs what do you think? >> the market did peak in january. that was shortly after bitcoin reached 20,000 the market has been going through a valuation correction the em index is down 18% in 16 months, and the s&p is down 1% that's performance gap you don't see often over a short period of time ultimately bull markets end because inflation becomes a problem that forces the fed to overtighten. we are approaching that twilight

zone of the late cycle where the fed raised the rates seven times, financial conditions are tightening, because the u.s. has this huge earnings boom as an anecdote to a more bearish head win headwind, the s&p is trading sideways others are feeling this much more, that's why em is down 18 the world index is down 6. the key question is 2 1/2 years ago when em had a similar crisis, maybe that's too big of a word when it was under pressure driven by china and its capital flight, the fed came in and said sorry, we'll stop tightening for a while. that released the whole thing. the fed is not in position to do that now

we're 2 1/2 years further into the cycle. core cpi at 2.4. >> so i will cut you off bottom line me here, i do buy u.s. stocks? do you buy into that weakness in em because there's value there >> em is looking interesting but it's too early we need to see whether capital controls are put in place or not. hopefully they're not. you could get forced liquidation among em >> is it safe to buy u.s.? i don't think the market is ready to break out yet because we're getting to that point where it is important how far the fed will go. i think 2019 is a more pivotal time for the market. by then earnings growth will be back down to trend of 7% the pe at 15, and the fed hopefully will be closer to being done that's a better time to get the

all clear. >> tom and jurrien, thank you very much for joining us >> thanks. coming up, home depot posting a big earnings beat. the stock is trading higher by more than 3% we'll have more on that report as we head to break, here's the biggest premarket winners and losers

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home depot just releasing its second quarter results beating on the top and bottom line and raising its full-year forecast joining us is brian neagle from oppenheimer. one of your points, brian, is that you don't buy the notion that the housing market is slowing. therefore you were expecting a good number from home depot. this is a great number, i think. does it prove or at least help lend credence to the thesis that

housing is not slowing, just the supply is not adequate for the demand which is strong i thought home depot did better, but it does better when housing is strong. >> for a company this side to do north of 8% comp, it's amazing they're talking almost 30% earnings growth this year. what we see in this report, when the weather cooperates, as it did in fiscal q2, people shop at home depot this is a reversal from the weak trends of q1 i think a lot of commentators out there are missing the point on housing these weak tripe sales numbype - >> there's no reason it should be weak. >> i thought it was lack of supply >> that's the point. >> that's different than demand

weakening. >> the key for home depot and lowe's, what drives their business it's typically home price appreciation if you're a homeowner, and your home is continuing to go up in value, you feel more comfortable investi investing. >> they also have a deal with online competition bricks and mortar versus digital stuff. they're making the transition, not rushing it or doing it in the right way? >> home depot is saying if their customer wants to shop online, they're there for them right now online sales are between 6%, 7% of total company sales, which is not big, but if you dive into that, most of that or a big chunk is buying online and picking it up.

>> do you think there's a day where they can ship the stuff or is it just way too much? >> i don't think the product lens well to that. >> think about that. >> how do you ship lumber? >> the super store experience of going into home depot, are we never not going to go to bed bath & beyond and just do it online it's not the same. to felt fabric or the duvet. >> i'm afraid to say i think bed bath & beyond is starting to do that what will we do on rainy saturdays? >> go to the movies. >> you know that >> we'll go to the spun-off vf outlet malls. >> home goods. do you like home goods >> bed bath & beyond has everything grill equipment. but i agree. those big -- who will order home depot stuff online

>> you can't ship lumber through the mail they need that consul take that's a key home depot has been aggressive >> lowe's likely will have a lift today overall things should be going well they have a home depot guy there now as well. is that a threat can they both do well? >> i think the sector is plenty big to have both chains do well. the thing about lowe's next week, the numbers that home depot put up today bode well for lowe's they won't be as good as home depot. i don't know if it's the stock, if it matters right now. everyone is excited about what marvin ellerson will do. >> right >> personally, i never said this to our clients, home depot is

the best company here. the best stock is lowe's on the idea that marvin comes in and cleans up these stores >> for the rest of the year. michelle is bearish any way. >> i don't know if i would share that view. home depot is doing well lowe's is a cheap stock here >> brian, thank you. >> thank you >> the dow is responding to that, that's part of the reason we're up tripledigits now, depot. coming up, elon musk tweeting last night about his plans to take tesla private. we'll talk to ed lee from the new yo"new york times." as we head to the break, a look at yesterday's s&p 500 winners and losers ♪

♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning later this hour we'll tell you what people in new york and california, what they're doing in rooms like this rooms like this. and when you could soon see pictures on your social media feeds. i don't know i'll learn with you. >> candy rooms >> we have a guy from cand

candy topia coming up. >> sounds sweet. >> my children are probably more ready for that report. >> is it actual candy? >> is it like willy wonka-ish? >> could be. >> okay. >> now you're excited. >> yeah. first the top stories. neofiling to go public on the new york stock exchange. looking to raise 1$1.8 billion. shares of tencent are falling after chinese regulators stopped the tech giant from selling monster hunter world on the wii game

wii games says the game is no longer available because its content doesn't meet regulatory requirements the move comes less than a week after the game was launched in china. the u.s. has collected more than 1$1.4 billion in new revenu from steel and aluminum tariffs in less than 5 months. that's according to a report prepared for congress. that's one thing, if you watch president trump on, when he's stumping, he goes if they don't come around with these tariffs, the worst that will happen is we'll collect a lot of money from the tariffs i don't know if it's offset by what we lose in supply chain or not. if you're collecting that tax, that means it's still coming into the country, right? that's what he would prefer not to happen. he wants u.s. production >> but if they don't stop with

the tariffs -- >> acceptable tradeoff >> in his view >> u.s. equity futures being helped by the big gain in home depot after better-than-expected results, and raising guidance for the year. coca-cola announced a new investment in body armor drinks. body armor will also gain access to coca-cola's bottling system coke already has a presence in the market through its powerade drink. and we are back to talk about elon musk. he's tweeting again. last nightxeeted i etweeted i'm excited to work with silver lake

and goldman sachs as financial advisers and legal advisers on the proposal to take tesla private. ed lee joins us. so what's happening here silver lake historically not a financial adviser to anybody this deal does not involve debt. they did the dell deal there's reasons for them to be around the hoop. >> if you're going to go private, you want to be with this >> my sources suggest they are not an official adviser to this company. >> i think from what you heard is right our colleagues at the times reported something along those lines as well. not just that, but the tesla board wasn't alerted ahead of the tweet. even with the saudi fund, that people close to that fund say, well, i don't think it's the same thing as securing funding they may have had conversations but they have not -- he put the cart before the horse based on all the reporting. >> also worth noting that there

is likely, at least from what i understand, a different group of advisers that are ultimately going to be advising the board or at least the independent directors. >> independent directors >> he says that goldman sachs and silver lake are advising i don't know if he uses the word advising him, but to the degree this is happening, it sounds like they're advising him. it's possible that munger may have been advising the board so there's a whole sort of -- there's distinctions to be made about who is advising who. not everyone is on the same team anymore. >> with board makeups you will have an independent contingent you will have an owner/management contingent like elon musk, and then everybody else so it's unusual but it happened before where different factions of the board are represented by different parties. it's one thing to say i've been talking to these guys, it's another thing to say i've hired them >> if the head of pif sits at

the table and says let's take this company private, does elon musk escape prosecution by the s.e.c. you're not a lawyer, but -- >> two words in the tweet, funding secured. what does that mean? if you're the s.e.c., you'll look closely at that, and it sounds to me that you have the money now. you have a commitment let cher is different than two conversations. >> to make it that much more complicated, because elon musk may have to take two different approaches to this, which is this during the period that he's having these conversations with pif, the so-called conversations where they're committing to funding, he's also buying shares in his own company while this is happening. you either need to take the position that i have the informal conversations with investors all the time that say crazy things to me like we should take the company private, i can buy shares here and now

and whenever because who knows what these people are doing. or the funding is secured and i took this absolutely seriously in which case i can't do anything with my shares. >> then he could be accused of insider trading having bought the shares >> bingo these are the issues on the table. >> taking a step back, going private for him is getting out of the spotlight, getting rid of the shorts at the same time the public markets have given him a lot of passes that trading really -- >> treats him very well. the multiple is incredible >> i don't know what he gets if he wants every shareholder to tender shares for a private stake, then you are just wanting your cake and wanting to eat it too. maintain the current structure, but i don't want to be in the spotlight. i don't get that >> he's talked about bringing other investors over the wall, so to speak. he said in his blog post

yesterday that he felt he was actually being fair to everybody by putting all this out on twitter. he didn't want to go to certain investors without all the investors knowing. my question to you, if, in fact, he went to other investors or even if this process in the past week has gone to other investors, that means they're over the wall, so they can't sell their shares. do we believe the fidelities, the t. rowe prices actually accepted the arrange that's another issue >> based on how he's acted in the past and based on what we've seen the reporting around this specific tweet and things leading up to it, doesn't seem like he had those official -- the rule -- there's a wall, there's rules in place for a reason, to protect shareholders and the process, he wants to go

outside the process. what do you know about this azelea bank thing? >> this is where all the worlds collide. she was a rapper, spending the week over at elon musk's house, because his girlfriend, is it? >> yeah. >> they met on twitter >> his girlfriend is grimes. >> bingo she had an instagram story she posted over the weekend saying i'm seeing elon musk, trying to protect himself outside of this tweet. now on the phone he's trying to secure things. >> he's in the kitchen on the phone, he doesn't have the funding. he's not good looking in person apparently >> i'm looking at a shot of you guys is that standard issue "new york times" wardrobe? >> uniform >> is it friendly? look at that

yes. yes, ponch we understand. >> there's a briefing. >> yes we understand. >> we get the briefing after you get yours from donald. >> this is not a -- this looks nothing like a trump tie >> no, putin might like that tie. >> you keep hoping for that connection god. >> ed lee, thank you >> of course >> see you back at the factory >> yeah. exactly. coming up, small business optimism surging near record levels kate rogers will dig through the new data next. and why you might be seeing pictures of these candy rooms popping up on your social media feeds. you're watching "squawk x"bo on cnbc

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time for the executive edge. small business confidence is near a record high kate rogers has the details of the nfib report, which we already know that's all we've been talking about since you sat down here. >> that's right. good morning the national federation of independent business is out with its monthly read on main street

confidence ticking up to 107.9 in july. this is the highest reading of president trump's time in office and one point away in the all-time high in 1983. the historical average is 98, so this is well above that reading. the biggest gains were in plans to increase employment, those who expect real sales to increase and those who believe now is a good time to expand the declines were seen in inventory. a stubborn problem remains labor quality. that's the top issue for main street outpacing taxes and government regulations and red tape bill dunkalberg told me the labor problem is getting worse saying a record high percent says qualified labor is their biggest problem. they want to grow and produce more output but it's harder to find people to produce that output these numbers might get worse. this is a conservative lobbying group, but wells fargo and gallop released their small business numbers, they're at the highest reading ever, and what

do you think the top problem is? labor quality. >> this is another thing that makes me nervous we are this close to the record high in small business confidence how much higher can it go? does it peak this is -- >> it's interesting because not one thing drove this month higher it's been the entire time that trump is in office is. they have a more conservative group but the economy is strong. >> conservative lobbying group, you mean they're pro business? you don't know about their social attitudes, do you we wouldn't came someone on the other side a liberal lobbying group. >> they're nonpartisan we make the distinction. >> they're nonpartisan they're conservative that's what we always say. >>nfi bush -- nfib is --

>> anyone who is not a conservative commentate sor is liberal commentator. >> no, no, no. if you advocate for lower regulations, lowering tax, all of those things would constitute, dare i say, a conservative -- >> pro business. i think you can be middle of the road and pro business in terms of social and everything else. >> if you're only defining politics based on social perspective, sure. that's not how the rest of the world does it. >> are they liberal anti-business? i guess they are now, because they prefer socialism to capitalism >> here's a question is higher tack taxes inherentl

for business >> yes higher taxes terrible for everyone >> you can take that position. the point is from a societal perspective, there's an argument to be made like deaf tights for the country are terrible so you have to somehow raise money. sometimes -- >> you cut spending. >> that's a conservative viewpoint. >> tariffs -- anti-tariffs are conservativ conservative >> it depends. >> in terms it of commentators, really that's a double standard. you would not call someone a liberal commentator. >> i would at&t provides edge-to-edge intelligence, covering virtually every part of your retail business. so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates.

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♪ welcome back to "squawk. our next guest's new project is a pop-up experience geared towards satisfying your inner willy wonka. candytopia ceo has a new pop-up. you're launching one here in new york so what is this? >> this is an experiential wonderland of candy in multiple rooms. it's immersive >> i buy a ticket?

>> you buy a ticket. >> how much does it cost >> $34 in new york >> and you get what for that >> you get an experience in every room you play in a giant marshmallow pit, shot with confetti cannons, go through a gallery of art made out of candy >> it's like a candy museum but you get to eat it while going? >> yes every room you get to, you get a piece of candy >> how long is the experience? >> about an hour >> this marshmallow pit. do you eat it? >> no. it's fake. >> it's fake >> thank goodness. >> where did you develop this idea from? >> my two partners and i came up with this idea last year we love the idea of giving back. there's a lot of anger in the world out there. we want to provide pure joy for an hour from every age group that's what the beauty of

candytopia is. it's ageless and timeless. everybody seems to love it >> what's the breakdown thus far? you do this in santa monica. >> it's about 25% kids and 75% adults it's instagram a lot of people are taking pictures but you're also interacting we the displays >> how many people are going through in a given day >> in santa monica we did 1,500 people a day >> the sourcing of the candy, you pay for that or is it product placement people give it to you because they want to be in there >> both. we don't want to inundate you with too many sponsors >> you're not going to virtue shame this guy on the sugar? seriously? you're just going to sit there >> we can talk about sugar >> you don't have to >> the world is very anti-sugar right now. >> oh, my. he will bully you into

submission >> it's like heroin. >> didn't warren buffett drink eight cokes a day and is worth $80 billion. >> for us it's about an hour you're having sugar. you're getting a sugar high for an hour. you can eat it or don't eat it i've watched parents as they go through with the kids. we also have a store at the end. you can buy additional candy or merchandise. >> is this something that could be a permanent installation? right now it's a pop-up. >> we've opened one. now we're going to run two >> where's the new york one going to be? >> in hotel pennsylvania >> the idea is just a couple months at a shot >> yeah. we don't want to overstay our welcome. it's more supply and demand. create the environment, get in and get out. >> i'd like an ice cream one >> i think it exists today >> oh, really? that would be messmessy. >> where do they do that >> she's downtown and has one in

l.a. as well. >> are you going to take this international? >> yes we're talking to two people. right now we're trying to figure out if we can get it done in december >> is this a london situation? dubai situation? >> something like that >> is it profitable? >> yes ticket sales and also merchandise. it's been a good run so far. >> very cool okay kids, run out there. >> john goodman. and you were great in all those movies you lost some weight not eating all that sugar, i guess. coming up, ken rogoff wants to change the way we run the economy. he'll be here at 8:30 a.m. "squawk box" will rhtac beig bk.

relief rally stocks bouncing back as turkey fears cool at least for now. earnings alert home depot crushing wall street expectations and raising their full year outlook. plus the captain is in the house. it's decision time for jim furyk as he gets ready to put together the rest of the ryder cup team he will join us live in studio the second hour of "squawk box" tees off right now ♪ live from the beating heart of business, this is "squawk box. >> good morning. welcome back to "squawk box" here on cnbc i'm andrew ross sorkin along with michelle caruso-cabrera and joe kernen becky will be back with us tomorrow in the meantime, look at the equity futures nasdaq up about 42 points

higher s&p 500 up about 13 points higher we're going to have a lot more on turkey and the global markets. first want to get you up to speed on this morning's other headlines. home depot rising in premarket trading. $3.05 per share. that's 21 cents above estimates. the company also raised its full-year outlook. then there's tesla he's working with silver lake partners on a possible deal to take the automaker private this follow's musk's tweets from last week in which he first proposed an idea and said funding had been secured sources silver lake has been -- described as a private equity firm they did work on the dell deal they were behind that and many others in techland there's still some questions about who is advising who and

who is going to be advising the board versus who's going to be advising elon musk himself then there's tapestry out with its latest quarterly earnings. the company earned 60 cents per share for the latest quarter with revenue also topping forecasts. >> stocks higher by 2% in the premarket trading. >> carl icahn dropping his bid to drop cigna's deal for express scripts deal he said the crossover was too big. we realize there's no way we could win. shares of cigna and express scripts this morning -- i don't know whether cigna is trading or has changed hands yet. express scripts up less than a percent. watching the price of bitcoin, it dipped below the $6,000 level overnight the cryptocurrency market has been under pressure since late june after the decision to delay

a bitcoin etf. ether also plummeting, down 30% in the last week the u.s. has collected more than $1.4 billion from steel and aluminum tariffs in the last five months. the money goes to the treasury department's general coffers could take a bite out of the federal deficit. we're going to talk more about trade this morning with former senator bob kerrey turkey remains front and center willem marx squojoins us with t latest from istanbul where we've seen some stability in the lira. >> part of that could be the son of erdogan here said he will host a conference call with more than a thousand global investors later in the week. that will be no doubt an interesting conversation

although it doesn't seem he's going to be taking questions on that what we've heard in the last couple of hours, he's been addressing in ankara saying if you are to give up on investment possibilities as a turkish business, start using foreign currencie currencies, then you are in his words giving into the enemy. he called on his audience not only to boycott electronic goods but pick samsung over apple to potentially even use a local cell phone manufacturers as a better option. he acknowledged there would be some short-term economic pain, but says those responsible for that would also face their own costs. he was clearly referencing the united states there. he talked about how sanctions on turkey placed them in a long list of other countries around the world. take a listen. >> translator: it is clear that the economic issue is global the united states has not only targeted our country, but it has economically targeted countries

from china to russia, from iran to europe, right next door canada they've been targeted. >> pretty extraordinary language, as well, in terms of the uphill battle that essentially he said turks face today. he likened it not only to the 2016 failed coup attempt, also the battle in the first world war, as well as some medieval battles saying turks have to fight together to take on this world enemy. god will help in terms of exports and production of course, michelle, oil is a major import here. they cannot produce domestically that will be a challenge when it comes to buying in turkish lira. >> i don't know if you're aware and i was so surprised to see this myself. in today's "wall street journal" they've had a message that says

it's time to kick turkey out of nato i never thought we'd see that. it's incredible how erdogan has really turned people on him, what normally would be traditional allies what are the business -- what's the business community talking about there? when i look at the situation, it seems to me we're going to see a big wave of defaults because they owe -- the corporations there owe so much money in dollars or euros, they're not going to be able to pay it back. we're talking about major numbers of defaults which have got to have a ripple effect. >> you're right. we're talking about tens if not hundreds of billions of u.s. dollars in foreign-held debt that's going to be a challenge for smaller businesses the larger businesses, they're very unhappy with the situation. they're going to see some of the import costs rise. and in terms of the blame game we've heard from president erdogan here in istanbul,

they're not at all happy with this idea the u.s. is to blame for this they say there are underlying causes that have been going on for a long time and him trying to transition the blame to other people is not credible >> no. there's been so many self-inflicted wounds that we've been talking about for a long time willem, good job thank you. live from istanbul for us. >> willem. joining us now, andres garcia amia. i didn't want to leave out your second last name and sayyid hidar i'll start with you, because you wrote a -- did you see his notes? it's like a treatise on what is happening in turkey right now if you need background. that's on everybody's mind so we'll stick to turkey after that report. you bring up something interesting. and that is in august which is already a time when the junior

traders are around, that was when the russia default happened we're in a precarious position for things that may not be that significant to exert an oversized impact you're not predicting that happens from this, are you >> it's hard to say. because so far erdogan has not showed any signs of backing down or going to a more orthodox policy and if things get worse with the turkish lira, there will be increasing non-performing loans. you'll have a flow through to the european banking system. we've already seen that -- you know, some effect on the european banks and the you're row because of that. and also it's the most exposed countries with respect to turkish lira italy is one of the largest trading partners and they also have a significant ownership of a turkish bank. and spain as well. so, you know, i think there could be a knock-on effect there could also be con today

ge -- contagient to other countries. you have to assume that's a warning shot to the chinese. instead of since the 1990s and when mexico was under pressure the clinton administration set up a bailout for the mexicans. and then tried to stabilize every time there was an em crisis. >> you weren't enthralled with the recent snapback anyway you look at that as a bear market rally >> i think so. i think that's right you know, you're coming up to the next fed meeting they're going to raise rates the market's been unwilling to price in more rate hikes until you get closer to the rate hike that you're coming up to so there'll be more rate hikes starting to get priced in the

next month that will put pressure on em currencies you're getting a huge diverse risk you're seeing em underperform u.s. equities. u.s. growth remains strong and i don't know what's going to change that dynamic in the short-term >> andres, have you pulled your horns in at all on liking things outside the u.s. more than the u.s. or where are you >> no. i think in the short-term, i would agree that there is chance -- especially within emerging markets, through the channel of currencies. so we see, for instance, the south african riand trade off of sympathy so i definitely will attest that this could get worse in the short-term especially because turkey, the political situation is not improving. from a valuation standpoint, if you're looking three, five years out, even if you look out at the

pe ratio u.s. is above 30 em is at 13. that's basically only 20% of the time only 5% of the time in the u.s. has been above it. what does that tell me are the odds starting to stack up towards em actually outperforming over the next five years? >> don't look at her she's bearish. >> she's been bearish for a decade though. >> bears sound smart and bulls make money. >> there are people who make a living being bears but they just write now. >> bond guys usually sound smart. >> right >> exactly you'll never get fired at least from your writing job. you'll never get fired so this is worrisome i don't know turkey's not even theoretically it's not a size that could cause

a systemic problem >> it's actually a big economy that has a lot of trade links with europe. they'll be the ones that feel the brunt of it. if you look at seeing the eastern european currencies, they've been hit by the sanctions on turkey and russia that the trump administration is going to put on. >> what if it -- turkey is the tip of the iceberg of what the world is going to look like as interest rating, as central banks start to tighten what if this is just a sign of get ready, world >> don't forget that em went through basically two huge hiccups already. by the end of 2015, oil was at 30 bucks people were talking about china's currency basically breaking and em basically people said stay away, don't touch it. then we eventually saw some of it come back so i don't necessarily think we haven't seen any damage already done in em over the last couple of years that's important to mention.

>> thank you >> love that suit. >> i do too. i love the suit. >> thanks. >> that is a hannibal lecter -- and then you're supposed to go -- >> no? >> you can't do this after labor day. only have two more weeks >> love your suit. >> your suit's nice too. >> i agree coming up when we return, bob kerrey is going to stop by the set to talk trade wars and america's heartland. mere he cos. stay tuned you're watching "squawk box" on cnbc

welcome back to "squawk box. the futures right now are suggesting a positive open the dow would open higher 127 points the s&p by 13 and the nasdaq by 42 in corporate news, shares of switch are down more than 20% this morning that's after the cloud computing company's earnings and revenue missed forecasts switch is also trimming its guidance for the year saying several contract wills take longer than anticipated to close. that stock is off 23%. mcdonald's and its franchisees announcing plans to spend $6 billion to modernize most restaurants in the u.s. by 2020 it's already launched with uber eats at more than 5,000 locations. now to a developing story

out of the uk. this is not a good one as things have progressed, they're now willing to say more than they said earlier london police say a crash outside the house of parliament appears to be a deliberate act the vehicle was driven into a barrier. the driver's been arrested on suspicion of terrorism or terrorist offenses. but he is not cooperating with police and looked into that closely. but i don't know if any of the injuries at this point are life threatening which would be a positive part of the story once again, right near parliament where a couple of those horrific incidents occurred on the bridge across the thames there but another incident over in london, unfortunately. as the summer winds down, the president's trade war is heating up joining us right now is former senator bob kerrey so much has taken place this summer and probably is going to

take place this fall where do you land on how damaging or not is there -- you know, i was actually going to spin it the wrong way. >> take your time. >> i'll leave it to you to tell us do you think that there's a possible win from these tariffs on the chinese >> well, if it produces a change in their policies, yeah. >> what do you think the chance is that that happens >> i think the chances are not good i think we would have been better staying in the transpacific partnership i think it's much harder unilaterally to get a country like china which is essentially a single party government. they control the press, they control -- >> but you do hear noises from china officials and the government by way of the state newspapers of just how anxious they are how they are fighting back at least with rhetoric in a way they never did before. >> they've got their own set of problems independent of

president trump. independent of tariffs trying to solve those problems won't be easy for them there's no question they need the united states market and no question in my view they've been violating those rules and making it more difficult for those of us who supported it at the time to say we did the right thing i think putting pressure on them is the right thing to do i think long-term it's good for china as well. in the short-term they've got to change their policies on intellectual properties and things -- >> how do you get them to the table? >> i think it's far easier if we just stayed in the transpacific partnership. >> cue the susan sarandon photo. at the dnc -- >> cue the -- >> -- holding up the big "x" through the tpp. i say that because no matter who won with all due respect, tpp was never going to happen. hillary clinton was against it president trump was against it by the way, the democratic party

has come against tpp i mean, it's very frustrating to listen to everybody say -- it was an easy win for president trump to say -- >> you're getting all worked up over this. >> i listen -- because over and over again i hear this criticism. >> i'm not susan sarandon, so ooum not defending her. >> but to say we should have stayed in the tpp, it wouldn't have happened. >> is donald trump saying i'm not doing anything unless the american people support it he's arguing against nafta i voted for nafta. my party didn't like it. labor didn't like it it's true that there's disagreements here but you expect a republican president to support trade and he's not and that's his decision. he wasn't influenced by susan sarandon he made a choice to say i'm going to get out of the tpp. all i'm saying is that weakens us >> my point is it was an easy political choice for him to make

because nobody wanted it anyway. >> i accept your apology, but all i'm saying we would be better and the democrats would be far better off and hillary would have been in a stronger position if she didn't oppose tpp. >> i'm not apologizing for president trump. when we talk about what could be done now, people repeatedly bring up tpp which was pointless. >> i got invited to talk about stuff and you ask my opinion and i think when it comes to trade, you're much better off with a multinational group with china it's far different to say america first and say america alone. it's harder to get negotiations going with china i'm saying china has got bad policy i think they need to change their policy they're not the only one >> there was talk that the u.s. would leave the wto. there's now talk that china should be kicked out of the wto. what do you think of that? >> that's a rhetorical -- there's talk people are saying? what is that all about that rhetorical thing, people

are talking about it no, i don't think china should be kicked out of the wto it would be a mistake for us to do it. but it's right to put pressure on them to get them to change their policy they made promises to agree to international rules and they've broken their promises. it's important for us to say that and stand up to them. >> let me ask you a different question there are companies that want to do business in china -- >> this is going to be fun i thought it was just going to be joe and i fighting. >> i'm thinking about google google may try to return to china. if you were a u.s. company and you advise u.s. companies all the time right now about how they can or cannot do business in china, you tell them what >> be careful. an agreement is a temporary interruption of the process. >> let me ask you a separate question that goes to relationships with other countries right now. this spat between saudi arabia

and canada >> whoa. that's a spat, all right >> it is it's more than a spat. and the question that's come up on this set multiple times now is, is it a function of our -- meaning the u.s. -- change legions of who our allies are. does saudi arabia feel they have rights to do things to do to canada they they wouldn't have 12, 18 months ago given the support it appeared we had as an ally of canada previously? >> look, i think bill salmn sal trying to adjust to a new world and he made a terrible mistake in my view responding to a single tweet it's a massive overreaction. and i do think this is a situation where it could be that president trump is a consequence of establishing a better relationship with mbs. it's possible to get him to reverse it it's not constructive for him to do this.

>> i want to end this on a positive note, give you a chance to be reasonable how many points will you give me when colorado plays nebraska on september 8th? ten? >> 17. >> you'll give me 17 >> yeah. >> wow >> not so bad. i'll take them >> will you? is it legal for us to talk about it >> it is now >> it is by the way, you guys let your brand get away >> cnbc or the buffaloes >> no, no. "squawk. first of all, there's no podcast. i checked it out to try to see -- >> can we talk about this off camera, bob? what are you -- i thought our brand was pretty good? >> it is but it's been stolen people are using it. >> oh. "squawk." >> but it's not this one >> 17 points all right. 17 pounts. coming up, we'll tell you

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good morning welcome back to "squawk box" right here on cnbc we're live at the nasdaq market site at times square among the stories front and center at this hour, sentiment rose to the second highest left in history up 0.7 just under the level reached in 1983 also coca-cola taking a minority stake in body armor that company includes former nba star kobe bryant as a major investor they will gain access to coke's bottling system and will include a path to ownership for coke financial terms were not disclosed. and another measure of inflation coming in about an hour from now. the government reports on import and export numbers for july. chinese start-up nio looking

to go on the ipo for now the company isn't planning to sell its cars outside of china and nio is backed by tencent holdings now to the latest story out of turkey and the rhetoric from their president. sara eisen joins us from fx currencies >> it is calmer out there. certainly the lira is up after a brutal beating over the past few days first time up in about a week. lost 14% on friday but today is seen as a technical move because president erdogan came out this morning not backing down, actually stepping up his fight with the united states urging turks to boycott apple and other u.s. technology companies. basically until either the u.s. pastor is released back home or until they act nor urgently to

contain the crisis there's no real relief seen in sight. that -- those are the two flash points, decisions the president of turkey could make to alleviate some of the pain and it's not just localized. especially in vulnerable emerging markets like china, south africa, and russia all are seeing relief against the dollar also watch the mexican paeso. could indicate some indiscriminate selling but i will show you overnight the indian rupee hit a low because the spotlight is on trade and deficits and both those numbers are rising in india. there's vulnerability. teleupshot here, it chose the crisis to spread pain. so far it's not a real emerging markets crisis and you're not seeing anything severe in terms of stress to the system in other places, but until turkey moves

to address the currency's free fall and president erdogan backs off of this, it's your fault the u.s. we don't have any crisis, everybody is vulnerable and the crisis could get worse what we're seeing is a technical bounce >> the next stage in this is wave of defaults in the currency this goes from a currency crisis to a debt crisis that's where you start to -- i mean, now you can see maybe there were wrong people on the side of the trade, we see stocks roll off and looks like defaults are coming >> that's why currency crises are so dangerous and have economic impacts because what happens is a country's currency devalues and all of those foreign loans, those turkish companies have been bingeing on foreign debt, get a lot more expensive to service. and they can't pay them off. >> if turkey were -- and we

talked about this yesterday. and you had said everyone always hates the imf until they need the imf. if christine lagarde said we need your help, what would she require? >> one of the big problems with that is first of all, erdogan doesn't look anywhere near calling in help for a bailout. it would be extremely embarrassing given some of his rhetoric which he said the fundamentals were strong. he's blaming social media. that would be embarrassing the second part of that problem is the u.s. is the largest shareholder in the imf we contribute the most money if this is a diplomatic fight between the u.s. and turkey, that's not going to be so hot for the imf to just swoop in >> the conditions will be very tough under any circumstances. >> right but that is how argentina did. and they've been raising rates and trying to combat this. >> hold in one second. we want to bring in portfolio manager of oppenheimer funds to talk about what's going on here. i hope you've heard the

conversation we've had here. turkey shows -- erdogan shows no signs of willing to do anything to stabilize this currency what's the next stage here we're just going to start seeing massive defaults out of turkey >> it has been a surprise to us how far he's been willing to push this. at this point you are reeling to crisis mode. when you look at historical standards, what you need to do at this stage is maybe some political sessions and headlines. a combination of rising interest rates. at this point, 5% or 10% -- >> maybe 20% >> you will take real interest rates, you would have to take them at least to o 10%. and we you need to announce a strong economic team

let's look at malaysia back in '97, '98 they had a twin deficit. they had a deficit of 6.5% of gdp. what they ended up was crush domestic demand and turn it into a current account surplus of 7%. turkey needs to show they want to cut spending and boost the savings ratio and basically turn the economy away from this debt fueled economic model that is becoming unsustainable all the countries with that kind of economic model will now be next in line >> that's what i can't figure out. clearly turkey's a mess and erdogan is not doing anything to make it better he's making it worse and deepening this fight with the united states. we've seen emerging market crises before contain themselves it's a small economy it's barely a trading partner with the u.s the question about how far this spreads and how vulnerable countries like china or russia really are haven't gotten a

straight answer. how bad can it get for those much more economically important countries? >> i would say that is the right question at this stage i would say there are two stages to answer that there is the immediate next line of fire is the south africas, the india, the indonesia, potentially russia because there's two components here the economic model as well as the contagion with respect to -- then the next stage ask, are we going to get emerging market investors to pull out all together because what you do? when you cannot liquidate your assets, you start liquidating the more liquid ones the south africa liquid currency or bond markets tend to get sold when you cannot sell less liquid assets >> and if everybody's going to bring risk down, you deleverage

everywhere >> yes from there, european markets more broadly by association because also we start going into september where either we'll be back in the headlines for budget approval reasons and you're seeing peripherals are widening you have a constellation of events on the global economy between august and september that may create a bit of a bit weakening sentiment. >> what i think is also interesting is that we're seeing currencies used as a political tool from this administration. and president trump has the ultimate leverage here in that he's got the u.s. dollar which everybody wants and which is the safe haven. he can exert this kind of pressure to get what he wants and places like turkey, he can do it in china which we're starting to see it actually working. the question is how far can he take this? and where does this experiment go it's not usually a tactic of an administration to rub salt in the wound of a country -- yes, turkey's got its own problems.

it's got to deal with its economy and monetary policy. but to make matters worse and bring them to breaking points, it'll be interesting to see how long they can remain in an island of calm sop far they've totally got president trump's back on this >> last word. >> it's been incredible. the u.s. market is the only one making new highs every day that from a financial market, you feel the dollar is not affecting your markets, your exports but eventually there will be a tightening in financial conditions this is what we saw back in 2015 >> thank you so much coming up when we return, look who joe ran into in the "squawk" lounge. ryder cup captain jim furyk is here they're going to make their way back to the set in just a moment when "squawk box" returns and joe's going to work on his swing.

welcome back to "squawk box. the futures right now are in positive territory the dow would open by 111. the nasdaq by 35 points. and it's an exciting morning

here, isn't it >> i'm showing him some of the iron i won this is my low round -- >> he's showing me trophies. >> low at 59 >> that was good though. that was matt, though, right >> yeah. jim furyk. we're all done we were just talking about this, too, with golf's major championships for the year and people after watching that and where tiger is now, we are jonesing for one more, something coming up. and it's going to happen on nbc. and it's going to be the ryder cup. it's september -- >> 28, 29, and 30. >> and we may have won the last one, but that was here >> that was here >> we've lost five straight. it might seem like there's nothing left for golf fans to get excited about. it's far from true the ryder cup just south of paris. okay u.s. looking for repeat of its win. this is the captain. for more on the team and who he's going to pick, he told me

he was going to tell me his captain's picks. but whether the ryder cup trophy is -- let's talk about it. >> this is the grandest event of all. everyone is jonesing for more major championships, but this is the biggest event in golf. right now the u.s. holds the cup. we've struggled. >> five straight losses. >> i was count iyou were counti. >> i was counting. when i hear that horrible chant, doesn't that make your blood boil >> their fans are spectacular as far as supporting their team, they're organized. they use chants from soccer games. they're witty and they're a big help to their team >> rub it for good luck, you said >> rub it for good luck for team usa and nbc sports and for my game which could use a lot of help. >> we have a solid team.

>> euro team, same thing though. >> same thing. you look at the top 20 in the world rankings, there's an even amount of europeans and americans. there's going to be a clash of two titans two really strong teams. but i have a lot of confidence i love the top eight guys that qualified through the pga. you mentioned the crowd over there. we need guys that thrive in that environment. i'm the u.s. captain, i'm proud to be. but patrick reed is captain america. we're proud to have him. >> poulter will be on the other side >> he's that spark, that fire, that energy. >> he plays well too >> he moved into that fourth spot in points. >> we got to figure out who else to pick here we put our heads together. i think you got to do tiger and phil >> all right. >> phil brings so much not just

on the course. >> both veteran leaders. it's great to see both guys playing well phil won world golf championship earlier this year. tiger has -- i think the word used is trending he's trending right now. playing great. that's fun for a captain to see. so we don't have to make any decisions until september 4th and september 10th but i like what i see. those guys are playing well. >> number one, you've already been quoting saying tiger's the only guy around that can will himself to play well and to score well on the front nine, what did he -- didn't he shoot 33 or 32 on the front nine when he didn't hit a fairway? >> i wasn't even playing and he made me nervous. shooting 32, 3 under par, keeps himself in the tournament. got a swing on the back nine started knocking down pins again. >> and all of a sudden his arms and body were in sync. >> nicolklaus did the same thing

>> and then brooks koepka who people still don't give him -- i mean, three out of six, he didn't play the masters. >> i like how they're saying brooks is under the radar. but he's won three of the last six majors he played you know, we talked about it earlier. he's that guy when all the chips are on the line. >> you went to school with phil, right? >> he went to arizona state. i went to university of arizona. he's basically beat me my whole career but we're good friends >> give us an idea the first guy out with bryce des champs -- >> guy is an unbelievable athlete. >> kuch? how do you keep him out? >> he's that solid rock. also in the team room, he's our class clown.

he keeps aempbl loose. we've got some young players. we've got some veteran guys in there. >> zach? >> zach johnson. three years about we had billy horschel, we had already made our picks. for those guys on the outside looking in, good showing in the next few weeks, they could get our eye. >> the last one, the euros are probably not that happy with what happened last time. they got spanked and they've spanked us and it's felt horrible. there was the time we had it won and justin rose and poulter -- >> i was part of that. sergio flipped our match with me >> and justin rose hit that putt on 17 or whatever. >> sick. >> so they're going to want

revenge. this is going to be big. and tiger's back and we've got this guy koepka's game itself, hitting at 340. those fairways are like this >> it seems he keeps getting bigger and stronger as well. >> right how about that -- what was that a 5 iron on 16 or whatever >> 248 for me that's like a good 3 wood from 248. >> so this really is -- is this on nbc and this is a -- >> dan hicks, johnny miller, whole crew will be there >> have you watched the open coverage has fox got -- are they going to get it together? i'm looking forward to our team. i am i'm looking forward to our -- >> wow i wouldn't take a shot at the european team like that. wow. >> i'm just saying -- >> this is cable >> i got you >> this is the real world. i got it >> i'm not used to those guys yet. i'm not. >> understood. understood it's different it's different you know, listening to johnny

miller's voice on the open that many years, it's different >> nance and faldoare great too. >> that's the other network as well i don't know if we're allowed to say. >> i didn't know we were going to -- it's like i've known you forever. good luck. >> appreciate it thanks for having me on. >> thank you. >> he won olympic -- >> o limp ya fiellympia fields. a lot of the guys on my team tell me they were 7 when that was played >> you're a bumblebee. looking at bumblebee's body, cannot fly you cannot hit a golf ball the way that -- the jim furyk swing. >> that's good >> it comes back square, right anyone ever tell you you're swinging wrong >> my dad was my teacher

he was a golf professional i'm not mechanically inclined. like, i can't fix anything at the house. i'm not mechanical everything is by feel. dad realized that. he was a great teacher and realized that you can repeat what's natural we worked on the fundamentals from there. >> they gave us a lot of time to cover other stuff. wait a minute. it's on nbc. i can probably take this right to 9:00 if i really pushed it. anyway, september 28th to the 30th golf channel and nbc tiger won't be vice-captain, i don't think. i think he's going to be playing. i'm available for vice captain >> player, vice captain, no matter what role he's in, he is a major help having him on your side, the guys look up to him. he's mentored a lot of these playser. he's going to be a big help for me >> i forgot jon rahm is going to

be a bad guy, isn't he >> not a bad guy just on the other side. >> we could go on and on and on. andrew, we're going to come back to stocks to watch see, for me that's a letdown >> it's what we do >> i forgot about that coming up when we return this morning, some stocks to watch. we will talk tesla, musk, bitcoin, all of it as we head to break, check out this morning's biggest premarket dow winners and losers stay tuned you're watching "squawk box" right heren bc ocn today, there are more sensors on our planet than people. we're putting ai into everything, and everything into the cloud. it's all so... smart. but how do you work with it? ask this farmer. he's using satellite data to help increase crop yields. that's smart for the food we eat. at this port, supply chains are becoming more transparent with blockchain. that's smart for millions of shipments. in this lab, researchers are working with watson

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let's take a look at some stocks to watch. let's start with calloway golf no, i'm kidding. advanced auto parts higher in premarket trading. reporting quarterly profit of $1.97 a share. the auto parts retailer also increased its full year outlook. urban outfitters downgraded from baird. saying they are narrowly valued. switch taking a big hit this morning. switch went public in october. earned 2 cents a share that was short of the 4 cent estimate also lowered its full year guidance coming up, home depot raising its full year outlook.

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depot posts a big earnings beat. harvard professor ken rogoff wants to change the way we grade the trump economy. >> and "squawk" in space how richard branson's venture is competing with musk's spacex fo the space race the final hour of "squawk box" begins right now from new york, the most powerful city in the world, this is "squawk box." >> good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen along with andrew ross sorkin and michelle caruso-cabrera home depot, futures are up 118 nasdaq indicated up 37 points or

so treasury yields have been back up overnight last i saw was 2.90% we're still talking about the turkish lira michelle is getting boned up more on what's going on there. >> we got a couple guests coming up >> is there anywhere else you read the truth rather than the journal -- >> it's pretty rare. >> oh, goodness. >> i'm not kidding >> go ahead. you want to say something? >> no. >> you can't possibly say in "the new york times. you could not -- >> i can't -- you -- >> you couldn't possibly deposit that as reasonable >> we're back to the same -- >> you couldn't say that is reasonable >> continue on >> all right here are the stories that investors are going to be talking about. home depot is rising in premarket trading. the home improvement retailer reported earnings of $3.05 a

share. revenue and comparable same store sales also bed forecasts that stock is higher up by 2% in premarket trade. tesla ceo elon musk says he's working with silver lake partners on a possible deal to take the automaker private this follows musk's tweets last week in which he first proposed the privatization idea stock down a buck and a half this is the common -- company known as coach london police say a crash outside the house of parliament appears to be a deliberate act the vehicle was drin into a barrier. the driver has been arrested on terrorist offenses he is not cooperating with police thus far.

so another event london with a vehicle. turkey's currency crisis putting the emerging markets under the microscope dom chu joins us now with more we've been talking about it much of the morning it's not just turkey it hasn't been a great quarter for em and starters. >> no. it hasn't been in the rising dollar to raise interest rates really been putting emerging markets under pressure we've been talking so much about turkey for good reason it could be one of those reasons why are catalysts for a potential contagion. we are seeing slight science of it right now there's a reason why at face value, turkey's market value represented less than 1% of the emerging markets index as of the end of june worth just about 0.75% if you look at the countries or

jurisdictions that have the most influence, no surprise in the index. china is the far and away biggest component of it. south korea is about 15% taiwan, 12%. india -- we have seen some issues with their currency on that side. and then south africa. a big hot spot right now that we aren't talking nearly enough about. if you look at the eem, this is the etf that tracks me merging markets on that index. you can see here a huge move to the downside we're seeing a bit of a bump right now. turkey doesn't factor into that market i want to show you a couple others that people are watching now inside of those markets. take a look at this one here which tracks what's happening with the south african markets you can see again those shares off by about 9% this year. trajectory down as the dollar rises. then also one more, michelle

indonesia. we definitely don't talk about this one as much here. this is another country that's seen a lot of that emerging market stretch taking it on the chin. off 15% this year. a couple looks at what's going on here. back over to you >> lots of debt. thank you, dom let's take a closer look at turkey's relationship with the united states. joining us now is steven cook. he's the author of "false dawn." good to have you here. >> pleasure. >> you seen this op-ed in "the wall street journal" they've translated it from french nato should give turkey the boot that erdogan is sharing western secrets with people who are -- we consider our rivaling if not our enemies. and now it's time. it wasn't that long ago there was talk about turkey joining the european union and now there's a push from one

of the leading french intellectuals to push them out of nato. what do you think of that? >> well, there is no mechanism to push a country out of nato. the only way turkey leaves nato is by its own decision of course turkey is an ally. but it's not a partner that's precisely what bernard is talking about. turkey has undermined american foreign policy with regard to russia, the fight against the islamic state in syria has also undermined american efforts to contain iran and arrest its nuclear development. under those circumstances, it's very, very hard to think of turkey as a strategic ally of the united states and the west broadly. >> what happens from here? does erdogan back down in any way? does he care about this currency crisis or will he care when you get this eventual wave

if not some hundreds of billions worth of defaults from his country. because they borrowed in dollars and euros. >> there's some evidence that despite his public rhetoric of hanging tough and making -- and encouraging turks to exchange dollars and euros for lira as a nationalist virtue, there are some signs that it is a concern. that's being read as an effort on the part of the turks to come to some sort of agreement on the detention of this american pastor andrew brunson who has become a flash point in the relationship between the two countries. and of course contributed to the currency crisis. all that being said, president erdogan has taken a very hard nationalist position when it comes to the currency crisis in turkey's economy declaring the united states is in economic warfare against

turkey it's going to be a very difficult political climbdown for him to move away from that and pursue orthodox policies >> he wrote an op-ed in "the new york times" over the weekend where he claims there are alternatives people say, oh, maybe he can turn to china. maybe he can turn to russia or qatar. do any of those countries have the money or the will to help him out to the degree that he would need >> well, there's stwo things about that op-ed that are important to recognize one, president erdogan only told half the story i don't think we would expect anything other but there's a long list of american complaints to go along with turkish grievances and american policy. secondly, he does have some options. certainly the chinese which have positioned themselves as competent managers of the global economy might want to come in and buy turkey on the cheap. they have developed a strategic

relationship with the turks and have lots of money but it's a tiny country and tur ke key's problems are vast. relief through the skbreshl financial institutions like the international monetary fund in which the united states has a very important say >> right meaning that if they did turn to the imf, there would be the traditional economic pressure that the imf puts on any country to mend their ways, let the central bank be independent, et cetera then there would be the political pressure that would come through that process. >> that's right. there's a new twist to his in lawsuit july, the senate foreign relations committee passed out of committee unanimously. democrats and republicans agreeing 100% that united states should not support any economic bailout of turkey from the financial institutions as long

as turkey is holding citizens unlawfully there's 15 to 20 other turkish americans being held on trumped up charges in jail >> they are upset about turkey wanting to buy from russia this missile air defense system >> this is a very, very big deal the turks plan to buy the s-400 which is an advanced air defense system because the turks will rely on the russians for maintenance and software for that system and because the turks plan to have about a hundred f-35 aircraft, the most advanced airplane in the u.s. inventory in service in the turkish force, there's a potential for russia to glean information about it this is something congress is worried about.

>> yeah, livid what do you think of president trump's handi inin inling of th situation? what did you think of the tweet? >> you have to give credit where credit is due. the president has applied pressure when other countries have been unwilling to do so of course one can be surprised i think the tweet announcing tariffs last friday just as the lira was sliding was gratuitous. it was though perfectly in line with the kind of president's way of going about diplomacy and applying pressure on other countries. but it was seen -- the problem with it was that it fed into president erdogan -- overall, the new pressure on turkey over holding american citizens as bargaining chips and undermining americans is a welcome change

from previous administration >> thanks so much. good to have you on. when we return, the first of the retail reports they are in and they're both beats. courtney reagan is here to break down results from home depot and the company formerly known as coach. we'll talk about it after the break. then harvard's ken rogoff is here to talk about the economy and a new way of measuring it. plus the space race. we're going to take you inside virginia galactic's bid to take taurus o tourists out of this world you've got a lot more to come up on "squawk box." right here own cnbc. let's begin.

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in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. welcome back to "squawk box. the futures right now still triple digits on the dow after home depot which we're going to get to in just a moment. up 112 s&p indicated up 11 and nasdaq 35 nio filing to go public on the new york stock exchange. nio looking to raise as much as $1.8 billion in the initial public offering. for now the company isn't planning to sell its cars outside of china nio is backed by tencent holdings shares of tencent are falling big-time this morning

after chinese regulators stopped the tech giant from selling its blockbuster video game monster hunter world the game is no longer available because the contents do not meet regulatory requirements. the ft reports that the removal was due to bureaucratic infighting in china's new media regulator where they still have lots and lots of censorship. tencent is lower by 3.5% and it's a very big week for retail earnings. courtney reagan has a rundown of those results coming in. >> this morning actually we have a big scan of the retail perspective. let's start with home improvement. so while monday saw home builder weakness, there's little to worry about in the reports this morning. the retailer reporting $3.05 a share for the second quarter that's 21 cents above.

also up its full year expectations the ceo said the business rebounded from seasonal issues if the first quarter and exceeded expectations. its global comparable sales beat 6% u.s. comps alone grew 8.1% that's the strongest in nine quarters slightly higher in the premarket trading. shares of tapestry also higher the parent company of coach, kate spade, and stewart weissman showing better than expected earnings and revenue slightly shy of analyst expectations revenue forecasts in line to slightly higher. comparable sales at coach grew 2% comps fell 3% at kate spade. but that's better than the 7% did kle

decline analysts were expecting. there's no comp breakdown for the much smaller stewart weissman, but expectations fell short. much smaller than the other two brands >> what do we have coming up later this week? >> walmart's the big win macy's tomorrow but walmart on thursday that, of course, is the biggie always is. >> home depot, it's a retailer buzz it's a home improvement >> it is a home improvement retailer but it's an important economic indicator. >> it is but is it retail >> it is even on a day like black friday, there's a lot of searchings that come up in the google search for home depot black friday. if you need a washing machine, that's the day to do it. it can be an important retailer. >> i'm going to try that this year >> what?

>> honey, i got you something great. a new washing machine. >> i thought you were going to take her shopping online >> no. buying a washer and drier. not a good idea. >> i would take a kitchen remodel. don't knock it >> tiffany, cartier. >> jewels don't fix everything >> you wouldn't do tiffany though >> no. i'd probably go to somebody. >> i know you. >> he's got a guy, probably, right? >> oh, yeah. >> everybody needs a guy >> i'll give you my husband's number if you want to hook him up with your guy >> he's been in between harry winston and the guys on 47th aren't you >> you don't want to pay retail do you >> never want to pay retail. ever never. >> not going to a place where there's ten places on one

counter there. he's not doing that. no, no he needs a room to go in >> thank you, courtney >> you got it. >> i don't know how it always goes -- >> coming up, australia versus austria. those countries competing in the world's list of the most livable city we'll tell you what factors are considered and which country took the top spot. "squawk box" will be right back.

♪ move other, australia. austria now claims the world's most livable city. vienna has taken the top spot. melbourne held that addition tin - distinction for the last seven years. they looked at health care, culture, environment, education, infrastructure remember brian sullivan and i, we had a -- drinks together right nx to st. stevens. >> you did vienna is beautiful. >> it is

>> vienna's low crime rate -- and we went and saw straus and it's in this beautiful palace. they've been doing it the same way since the 18th century crime rate and downgraded european security threats pushed vienna over the top this year. you go down along the canal and it's all bohemian restaurants and bars. >> did you see the dancers the waltzers >> no. >> the waltzers and the tule dresses? >> i'm not that much of a tourist. everything runs pretty well in vienna people seem to be going places on time. then we went to budapest where things are not -- they're sort of just going -- >> they're hungry. >> no. just more free form. in vienna, things are -- if you can look and check things by

your -- >> uh-huh. and bearish on liquor this morning. surveillance video caught a bear wandering into a connecticut liquor store yesterday this is crazy bruce's discount liquor in bristol. the bear walks right through the automatic doors, into the vestibule. >> it's like he's done it before >> you know, he's looking for something to drink thirsty. the quick-thinking employees quickly hooked the latches on the second set of doors so the bear couldn't get in an unsuspecting customer walked through the vestibule without noticing the bear was there. and was quickly ushered inside the bear ran off no one was hurt. >> you see the guy coming in he doesn't see the bear. just walks in. get in, get in close the door >> gets some liquor and wine you think the bear's red or white wine

>> i think it's vodka or gin fermented apples, right? don't bears get drunk in the winter because they eat fermented apples during hibernation? >> boo boo >> that is so old. >> yeah. yogi and boo boo >> yes >> you remember yogi and boo boo? >> yeah. coming up, breaking economic data in july import and export numbers are just minutes away. it should be judged over the long-term not the short-term that's according to ken rogoff ken's going to join us after a quick break. look at the uieseqti at this hour, in positive territory.

♪ we are just seconds away now from import/export data for july let's show you what's going on real quick

we have green arrows across the board after a couple of dow components released earnings better than expected we're thinking of home depot in that case. nasdaq up 36 points, s&p up about 10 the 10-year right this moment is standing at $2.82.884%. we want to get to rick santelli. >> imports as expected our last look for june came in down 0.4%. revised down only 0.1% also a subtle revision from down 0.3% to down 0.4% last month. year over year number on import prices is 4.8% 4.8% any let's look at -- now, the

down 0.5% is a big variation from expectations of up 0.1% and that year over year number for those of you who were shocked at 4.8%, keep in mind that's following a slightly revised 4.7% it was about 0.3% hotter than expected so we have to keep in mind that there's going to be a lot of issues going on with import/export prices potentially due to getting in front of the tariffs, behavior modification due to potential tariff issues of course the 23rd is the big day there. yes, 2.88% looks like the global narrowly missed another close call of sky falling, joe back to you. >> yep we'll keep an eye on it. weaver going to talk to rogoff now, the -- >> good guy. smart guy, joe >> smart guy and we're going to talk a little

bit about the trump economy. i want to talk to him about turkey though. see how much we really do need to worry obviously nobody knows our next guest rogoff has been bullish but he might be having doubts for the long-term but i looked at your doubts, ken. they're very theoretical and way off in the distance. i think we get some near term bounce for some of it that i don't think you see. talking about the environmental stuff. let's start with turkey. can we start with turkey and whether you think this gets out of hand? >> it is not easy to have a global debt crisis in a period where interest rates are so low. real inflation adjusted interest rates are very, very low and you don't have to move hard to make an adjustment the way you might in a sharply rising

interest rate environment. >> interesting >> as far as argentina determines, it is possible and if you're going to be as bull headed as turkey, it is possible debt is high a lot of debt is in dollars. and so the dollar appreciates it but i do see risks for sure over the longer term. there's a lot of things you can prevent it from really blowing up right now >> before turkey, we talked about italy and they're not totally unrelated either >> not at all. >> does italy worry you? >> well, if global interest rates were to rise significantly, you know, just back to what they were, you know, five years ago much less ten years ago, you know, where maybe more than five years ago but the real long-term interest rating 2.5%, 3%, now they're around 1%.

i don't know what turkey would do i don't know what the european union would do i think when that happens, these highly endebted countries, their interest rates go up much more it's politically vulnerable. again, they're not paying much to borrow europe's able to sort of roll things up. >> you've been positive on some of the deregular e regulations like fax reform. we've got some deficit numbers trillion dollar deficits could be around for awhile we saw it's mainly based on spending that they're at a record is that part of your reason thinking it might be just a near

term growth boom or it's over -- >> i think that's a piece of it. the big thing is -- first of all, it is a work in progress. we don't know, he's have been for example, challenging the asen den si of china are his policies going to accelerate it or make a reagan-like change with what happened with russia we don't know. you know, the kind of things that worry me are the environment. it's a lot more expensive to clean up in the long run than the short run. >> you're talking about plastics or industrial waste? you're co2 cleaning tup it down the road and now there's going to be -- you're also assuming that paris would have actually somehow -- that the curve higher would have been lessened if that agreement stayed in force.

i don't buy that >> i will agree with you completely that the paris accord was grossly insufficient i favor you saying, you know, some sort of tax system instead of this very complicated quantity system they have. but i think denying that there is a problem certainly not contributing to a solution >> i'm not -- for example, if -- i think if we had forced exxon to totally, you know, divest in hi hydrocarr bonn -- then we see the natural gas revolution and clean hydrocarbon. however you want to characterize it and i think that some of the obama restrictions on power plants and some of these things,

i think long-term those would be more than getting rid of them. so i suggest the blanket statement to me is a red herring. it's not real. >> yeah. i mean, but that's why most economists favor something along the line of a carbon tax which allows the private sector to react to it. it's not a command and control approach which is closer to the paris accord >> we need to go back further. we'll have a discussion some time where i'm not necessarily sure -- i refer to it as a phantom menace trace levels of a colorless o r odorless gas you also think trump's not funding science or that he's -- that there's some damage to institutions or to the political culture that could have long-term effects. that seems pie in the sky, too, about whether that comes home to roost as far as economic growth goes >> pie in the sky? i mean, i think institutions are

at the core of what makes us is a strong country >> one man's institutions is another man's draining the swamp. >> indeed some people in the trump administration says we're aiming to damage the institutions we don't like the institutions again, i did say it's a work in progress but i do think undermining the culture, our political culture, he's not doing it by himself and the left bears plenty of responsibility for this for sure but if you look at what causes growth in the long run in different economies, the work of many before them, it's your institutions i think undermining them is a problem. you mentioned science. it's really been flat for

awhile >> yes >> and i think that should be, you know -- that's a big mistake. >> basic science is where all the 10, 20, 30 years from -- you don't know you don't see the absence of the investment in basic science for years. you don't make some of the advances >> absolutely. and it's going on in the private sector for sure. but it's more -- >> i know. >> it fosters small firm growth competition. >> and you don't need a near term profit. you do things because they need to be done i would say even space, it's becoming more privatized now but even that, you needed the government's involvement there to -- like, going to mars -- there's not money going to mars right away, obviously. >> yeah. >> all right what else was i -- i guess that's basically it. you want to talk about something? >> no, no. we have some breaking news >> all right ken, we'll see good-bye then thank you, ken we do have breaking news

crossing as we speak tesla announcing the formation of a special committee to evaluate elon musk's proposal to take the company private the automaker says the committee has not -- and this is important -- has not received a formal proposal from musk and has not reached any conclusion on the advisability of such a deal the committee is composed of only three people. i want to g through each of them with you so you understand their history, their background, and to the extent you want to measure their independence brad boss is on this list. he used to be the cfo of solar city that company acquired by tesla that company formerly controlled also by elon musk. then you have robin denhome. she joined the board in 2004 she has been the ceo of telestra company. then finally, linda johnson rice

of the johnson family. she's been back at that company. but a couple people not on the list that are just worth mentioning when you think about this board, i think there's questions about why these three, what their history really is is this is the strongest group in terms of how they're going to think about this in relative -- >> can i ask one more question are you suggesting they're not as independent as others or shouldn't be part to asays a deal >> i think there's two other people who you would have liked to see on an independent committee like this that are going to be the jury as to whether a private transaction

should go ahead or not the question is why they're not on that committee. >> so i do wonder about this sentence this special committee has the full power and authority of the board of directors to take any and all actions on the board of directors as it deems necessary. but ultimately it will get decided by the full board, no? it's only going to be decided by these three people >>. >> we should also tell you because we've been talking this morning about advisers last night elon musk went on twitter and said goldman sachs was advising him he also said that lipton and munger was advising him on the legal side this group has a different group. latham and watkins, the law firm, is advising them currently as well as wilson's son. so we will see who else joins them they are going to be adding a financial adviser when and if they get an actual proposal.

so there's a lot going on here, guys >> i'm kind of with you. i still think there's some scramb scrambling whether that was an accurate tweet or not they're making it look good. i don't know i'm still a little bit -- >> well, look. the next question is does the s.e.c. jump in here. if you think the s.e.c. today is a more business friendly s.e.c. than historically, part of the calculus has to be do you make an example of elon musk at the extense of the company and its employees? do you not when do you do it? >> you're talking about whether there's wiggle room in the law itself >> don't we believe the s.e.c. is involved? isn't the reporting indicating that >> there's no question they're looking into it. the question is what does that action look like >> funding has been secured.

true or false. >> false on its face unless you believe his intent was something different an we've gone over this before a million times. we've had all sorts of people including our own president who has tweeted out things and people say what did he intend? funding secured in his mind versus in reality? >> it's different for -- when the stock goes up and you've got convertibles >> in the middle of the segssio, the trading session. >> twitter is a terrible, terrible place to try to disclose -- >> i'm not sure it is. everybody gets it at the same time. >> it is full disclosure, almost, isn't it it teaches you how to link to a press release. but any time you're dealing -- >> have you noticed the president's tweets have got much longer coming up, "squawk" in space. we're going to bring you an

update on virgin galactic's progress on the space race first though morgan brennan has an update on spacex. >> we're talking about elon musk's other company, spacex unfailing its new spacecraft it's going to carry astronauts to space we've got an inside look after the break.

welcome back to "squawk box. as questions swirl around musk's

plans for tesla, his spacex plan looks into carrying astronauts in space >> spacex displaying a mockup of crew dragon. four cushioned seats tilted up to a touch screen that would display progress in flight this is under construction on the rocket factory floor as the spacecraft goes through the progress with nasa the business opportunity will, quote, not be a losing proposition for spacex but that safety is the primary concern. >> i would love to say that this mission is going to be like every other mission because i want every rocket and capsule to be reliable, but i can tell you there'll be about 7,000 extra sets of eyes on the build of this system, the testing of this system, and all the interfaces >> now, crew dragon is the

result of the multi-year program which includes rival boeing. the mission is to send astronauts to the soil which has not happened since 2007 the timelines for both have repeatedly slipped now targeting april of next year for the manned test. and boeing, mid-2019 what makes this so notable is this is the first time we've got this up close and personal look at this dragon capsule from spacex this will serve as the template for sending humans past the moon and eventually to mars potentially. >> great thank you for that one quick mention because i've been going through some of this musk tesla stuff we were talking about the three directors. bus historically, he was not considered an independent director now he's become considered an independent director so just put that on the table. a lot of people questioning the

choice of these three individuals and what that is about. meantime -- >> thank you, sorry to interrupt the space story. we're going back to space now. virgin galactic suffered a fatal accident during a test of its spaceship 2 back in 2014 but a test of its spaceship in 2014. those involved have come long way. joining us right now, a staff writer for "the new yorker." good morning to you. >> good morning. thanks for having me on. >> your newist piece appears in the august 20th edition of the magazine it's called virgin galactic's rocket man when do you think we are all going to space, nicholas >> all of us, or the first sort of -- the first passenger flights. >> when do you -- >> i think virgin galactic -- they are looking to try to

complete their flight-test program at which point the highly qualifiedestr test pilot prove the at i think they are doing that in the next year or two after that, richard branson and his children will get on the flight they will be the first passengers i think passenger flights for the 600 people who have already reserved a ticket will start soon after that. >> given all the work you have done on this topic when will your family jump on one of these. >> it depends, i would have jumped on the flight that i watched in april from the runway if i had the opportunity there are seats in the back right now currently flying unoccupied my confidence -- watching the test pilots and watching how they respond to pressures and whatnot, i would sit in the back of one now as for when i would put my wife and children on the back i may want to give it a little bit more time. >> in terms of the race between

branson musk and bezos, who is winning? if that's a fair way to look at it. >> spacex is the industry leader the juggernaut they are proving they can fire massive rockets on a repeated scale. they have had some accidents, et cetera, but the competition is between virgin ga lacktive and blue origin. they are exploring the area 62 miles above sea level. in perspective, 62 miles before sea level that's where blue origin and virgin galactic are trying to go mars is 330 million miles. there are matters of scale in terms of what the companies are trying to do. >> nicholas, i read your piece it was quite long and quite detailed and actually quite rifting. one of the things when we talk about the business of space, the emerging space race and all the private companies coming into

the fold that sort of gets missed is what it takes in terms of these former military men and women and test pilots who are actually getting into these vehicles to run the tests. the fact that it is in many situation as life and death experience for them. which also speaks to the fact that it is a very different thing from putting a professional into one of these capsules versus a tourist. >> right right. that's what i think -- and that's why virgin galactic is only, their seven pilots are all former military test pilots. and let's make sure that these skilled individual who have already had you know, 30 years of risky military test piloting careers, that they can do this with confidence before we start putting passengers in the back that's kind of i think the challenge for virgin galactic and blue origin as well is getting to that point when you are confident that you can do this safely and that repeatability is something that's manageable.

you know, i think it's not only the test pilots who are doing this the crazy thing is that in mohave, california, in the middle of nowhere, there is this hub of innovation and risk and sort of excitement with all of these engineers that are trying to do something that's never been done coupled with this older generation of test pilots. it is a pretty wild scene. >> nicholas, thank you congratulations on the piece. >> thanks for having me on talk to you soon. >> down at the new york stock exchange jim cramer joins us now. do you want to talk about things like home depot or the circus that is tesla at this point? >> home depot, big company, extraordinary numbers, particularly because the gardening season was weak in the month of may in the midwest and the northeast. it is a testament to how much money home depot they makes and what a fabulous merchant they are. money per square foot. there wasn't anybody in home

depot that didn't look good. yet they managed to do it. i think this is once again a testament to one of the best in the industry. >> jim, i noticed we are not on the same side on this twitter management by twitter issue. i think ceo should not -- >> i did that -- >> it's all good we love each other i just want to understand your view i think that twitter is a terrible place to be disclosing market moving information without a press release that has the true nuance. 280 character is just not enough. >> well, i think that the issue here is not the dissemination. it's who is doing the disseminating. i think it is absolute' a great way. you put a link to it it's democratic. a lot of people can look at it all at once. when you do it the way elon did it, it is more of an ambush, not necessarily well thought out i'm just saying that i think that reuter's versus literally

twitter, i prefer twitter as the way versus reuter's. i didn't get a reuter's line before i was professional. but you certainly could have this it is a way to disseminate it. >> what do you think of the committee that's going to evaluate the tesla bid or no bid since they haven't gotten one yet? >> it's elon musk. it's exactly what mark cuban said on halftime yesterday you get what you pay for here with musk. are these people independent, are they smart they are elon musk people. do we really know whether silver lake is in reuter's comes in and says they are not. the guy -- what he says, what he does, requires a huge leap of faith. but the idea that somehow the s.e.c. is going to crack down on him -- it took five years for the s.e.c. to crack down on thernos. carry his book you would have cracked down on them in a nanosecond

don't count on the s.e.c.s they are like the wheels of justice, andrew, and they grind very slowly. >> i do believe that silver lake is around the hoop the question is what role they lle going to play, whether they wi invest or not i don't see them being an adviser. we'll see. thanks, jim. ♪ you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia.

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let's take one final look at the futures as we head into the opening hour about 111 now. home depot strong, helping the dow. s&p up 11. nasdaq up 36 michelle, we won't see you for a while. >> always a pleasure to be on with the both of you i enjoy it so much. >> good to have you. >> make sure you join us tomorrow squawk on the street did you see furyk? that was awesome squawk on the street ♪ ♪ good tuesday morning welcome to squawk on the street. i'm carl with jim at the new york stock exchange. david faber has the morning off. futures are up after four days down for is s&p. the lonnest losing streak since march. lira