that's a wrap for us, make sure you join us tomorrow. right now it is time for "squawk on the street" ♪ >> good wednesday morning, i am carl quintanilla with david faber and jim cramer coming up, steve easterbrook's interview. we got fallen yields from weak data out of europe and german's unemployment rises for nearly two years. our road map begins with global growth and trade war the yields are down, stocks are set to open sharp liloer

>> with easterbrook talks exclusively about how foot traffic is down. >> the retail route, abercrombie and canada goose tumbling. worries of trade tensions and global growth. dropping further in the negative negative territory depending on your slice this morning, you are looking at the big b biggest in version since '07 >> i woke up at 3:15, hoping to see something good it was so gloomy now

we. >> reporter: are in a preordaind hometown sap is supposed to lock up all of the companies they went air bus. numbers are being guided up and stocks are down. >> workday >> it is what it is. >> you could say workday >> i was reading a little bit. i like to read while you talk. >> that's a good moment. >> guys, stop talking about capri holdings we should talk about workdays. >> how could you do that >> i missed the beginning. sorry. >> we are logging on and trying to get our coffee. >> canada goose is really bad. >> i heard that. >> when we look at the yield curve and the fed and dallas fed and chicago fed, all these

points of data that some say have a recession do they or don't they? >> i have learned to never fight the bond if you a fiduciary anywhere, you would buy bond nobody is to say the bond market is wrong because of that you get stocks like 3m is down and caterpillar, i think caterpillar is having a good quarter >> you don't think 3m has a good quarter? >> 3m has structural issue the ceo up here at the bernst n bernstein's conference >> that's unfortunate. >> don't know the answer why >> you talked about frankly whether or not it is going to be

the ceo. i think you got this incredible scotch -- water table issue. remember ge? it keeps on getting dirtier. >> yes, they fought and fought >> what about number 16 and that annual is about how being sued a bunch of different states. >> you are talking about 3m. >> it does not mean well the ingredient and the water table and this lawsuit >> the fire foam >> i didn't think -- i think they'll be able to blow it off >> i really do >> don't mean to take it offline here in terms of our overall ma r macro. >> i am not being facetious, i

am promoting something you did the problem is beyond meat when you have people who stop you in the streets and say i love beyond meat i say well i got another thousand stocks are going down no, beyond meat, it is not a meat company it is the future what am i supposed to do it is the future what is beyond meat in the future listen to me at least i am teasing you. >> 51% of the flow is short. there are some people who are not gone >> they are shorting it. are they waiting for the impossible burger? >> wholly cow, i don't think the stock should be worth $5 million beyond meat is what?

compare beyond meat to dow chemical, will you >> the burger stuff are similar to what dow makes. >> that may be true. >> mcdonald's shares have been on a tear late ly 22% over the past year to date the company is two-thirds through a redesign its restaurants all around the world. tomorrow they bring that redesign in times square, it will be the busiest mcdonald's in the world three stories and 11,000 square feet and 18 self or kiosks >> i think as we executed the growth plan, we spent the first

two years turning the business around and had a couple of years of growth. i think we are beginning to identify further opportunity to accelerate growth. >> what about the holding back traffic? >> people are eating out less if you believe it or not. it has been progressively eating out less home delivery is someone we can participate. at the moment, market share and anyone who's getting broke because they are adding new units. we have stated as an ambition of ours it is a measure of the truth to help the business. last quarter we lead more traffic. we want to be stronger than

that >> we'll talk to the company they have hired some ai and more on whether they are interested in beyond meat or tealternative protein. >> everything he says is incredible and humility. he turned the chain around and yet there is a lot more to go. she's one of the most thoughtful people when you deal with them incorrectly is customers he can change the whole foods chain if he wants to he's very liberal when it comes to -- he believes in climate change >> part of it. >> which would lead what an order from impossible burger or beyond meat >> he has 1400 stores that are using that

>> i like the impossible more than the beyond. maybe the german taste is different. >> with mcdonald's all sourcing if they decide to step in, they tip the entire market >> with the famous dahlio story with the chicken mcnuggets and they need to come up with instruments instruments to help demand >> if they can tell you, if they do a real infinity, i order the same thing at mcdonald's for 25 years. why do they not know that? >> they should >> carl. come again today, some of the themes i am hearing are consumer remains relatively strong. the concerns are about the ceos and their view of the world. you got two here

and how he's feeling about things >> yeah, we usually ask him for a card on consumers and we put it to him flat here is what he said >> unemployment have been reduced and employment is growing. what we are seeing is slightly in asia. that again is a steady sweeping generalization, they have to get into region by region if differentiations are there as well >> i thought that was interesting. if you look at consumer conference board numbers we got yesterday and you slice it by age under 35, the chart looks nothing like the overall chart >> i was with a couple of executives over the last five

days they're entirely thinking about what those people want verses what say my generation wants insane >> they'll have these thing that is are 100 calories and they'll eat three of them. they snack and snack who eats seven times a day david, i want seven squares. did bell ever say i need you to eat seven times? millennials eat seven times a day. what the hell? at their desk, they're eating. don't you do your work >> literally snacking. >> it is not time you are working. >> oh, he's total millennials. jesus. >> it is egg mcmuffin that i like it is fantastic.

>> it is >> i went the weekend it opens my mom had a big mac fries and diet coke. she said now i had the meal i want for the rest of my life >> that was a heck of a story. that was uplifting thanks for that. at least you listen. >> i heard every word. >> really? >> i am workday due now. >> a rough morning for a number of retailers we'll fill you in on abercrombie and dick's sporting. take a look at the future as we brk isorng ck in a moment ♪

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you can see that number for abercrombie is making 19% today. >> when they get that forecast, maybe being flat next year, why do you want to own that stuff? why do you want to own it? >> hey, i spoke to dan reeves, from a canada goose. >> if you almost stop, you feel some pain, don't you or is that okay? >> this is not a good time to go by canada goose. they did have a good winner. >> what do you do? >> chinese consumers -- why would you add stores if you are not doing well it is a great brand. here is my problem with canada

goose. i am now an expert pleaser >> this is not the eisenhower. i think canada goose as good as i think. i found myself in a surreal position they have unbelievable growth. when you listen to the growth, they do have u.s.'s 40% growth this is not the season to buy. danny pointed out, the ceo who's terrific he said look, i put out a number and i deliver that number. it was analysts that got above some people are not playing under the game >> well, is it about sort of the chinese consumers or just about a thousand dollars parka that's easy to trade down on that

>> he says china is doing great. you don't want to spend thousands of dollars on the park you got to figure out how much you save on the mortgage deduction. >> or not. >> why >> i deserve it. i was in the state that voted for hillary. >> son some of these names on abercrombie, inventory is at 7 that's a lot of merchandise that you will have to sell fix. >> tjx is down it is going to end up at tjx it will be $800 more because of our tariffs. >> i think it is nonsense, you want to buy something at tjx, it is going to be a lot cheaper than you think

it is. there is oil coming down beyond meat, okay, that's expensive. there you go there is a lot of inventory in the retail system that you typically do not pay more when every dress barn closes. >> dress barn never had that relevanc relevance. >> aboercrombie, if it happens repeatedly, we'll have a story for consumers. >> did you had sigh the jimmy choo number? >> that was bad court and versace, i went to a versace show in milan. >> to carl's point making a reflection of a weaker consumer. that's not the story they're not buying on there.

listen to brian cornell. they're shopping at target and walmart. someone downgraded costco. there is this thing, david, it is a colossal, they're shopping on etsy, they're not shopping a lot of places. >> the canada goose were eyeing, they got a cold room it is exciting >> will you try it on? >> yes >> you got to have a big winter coat, tell me where and when to buy one. >> we'll go to the outlet stores every single -- most of those companies make it for the outlets. people are sick of that. the millennials are wise >> we are now talking about the debt of the outlet malls

>> that tanger guy is going to come on and say no way >> that's true >> how come tanger is so smart and we are so stupid >> think about that while you i of your "mad dash" there's >> futures is coming up and the eng lldot ay. me park capital of the world, it also has the highest growth in manufacturing jobs in the us. it's a competition for the talent. employees need more than just a paycheck. you definitely want to take advantage of all the benefits you can get. 2/3 of employees said that the workplace is an important source for personal savings and protection solutions. the workplace should be a source of financial security. keeping your people happy is what keeps your people. that's financial wellness. put your employees on a path to financial wellness with prudential.

♪ welcome back to "squawk on the street," time for "mad dash." it is hump day here.

bed bath and beyond. they continue to say transformation and they announced four more directors to the board. they now have 13 directors and 12 have joined the board the last two years and 12 are independent and seven are woman. >> yes >> john duskin i mean it was the best of times of the worst some of the really long dickens' books. >> it is great to be an ak v activist the real win is to get it go away >> a lot they have to file through. there is an interim ceo. they got to pick a worthy ceo. who does not want to buy back stocks and as much as transformation and the

investme investment year. >> an investment, what does it mean >> right now they got to get the right ceo because what are we talking about? detro detroit? look out for pots and pans or hangers. did you see them >> they have a lot of stuff that's made in china from these stores >> no, they don't. >> a lot is head made in u.s. which is why they collects it too much >> they have to source them. >> yeah. >> we'll keep an eye on bed bath the ak vctivist can claim victo. speaking of stock prices, we got an opening, stay with us when "squawk on the street" returns my experience with usaa

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the 200-day, 27.76 obviously, it is not going to open that the that >> the first down month in the year that's a lot of months that are up if t the president said we are going to trade deal. apple is going to gap up tremendously we are just waiting. in the interim, we are not waiting in the sense of we are doing nothing. we are selling and waiting and i just think what will happen is that if you do get a trade deal. it will go without you and i think you're dam to do or dam if you don't >> huawei with this lawsuit. >> we got rare earth that's weapon, only a qume of

places you can get it. then again electric cars, would be really important for tesla. it is important. >> i see what happens. at the big board is trojan and hilton communications platform company. as brett is filling in, obviously going to be a week of the open oil we did not quite mention it strong enough. below 58 we got 11% saying it is late april. i don't think so much as blood as frankly these are just the future we have been stuck at 55 on a long-term forever. every siem time it goes up.

it goes back to the name there is plenty to go up in the world. are we using less of it? >> phil lebeau has taught us this we did not have the same fleet as we have five years ago and we don't use as much gases. nobody does. >> rare is real. of course you have an etf for it >> you do have supplies at recent highs you talk about the model neck and the premium which transports and get it out of there. you can do it by trains or trucks the pipe lylines were one big pipelines. they could not find enough the pipeline businesses is running into a wall here those companies can't raise rates.

what used to be a place for the wealthy to park their money. disast disasterous. it has been a rough time for a while. >> terrible. >> we can't get this stuff >> no longer a memo. >> corporations. >> a disaster. >> i think it is really interesting now. we were shipping china to mexico the price of natural gas to ship, you are losing money when you bcf. it is the cheapest natural gas in the world people keep on talking about inflation. that's what it is of one of the most important part. that's another example it is not going up >> i mean there is nothing new today in terms of china/u.s. yesterday we got the rare works

of those comments not official in china thai they're not much apple is down another 1% >> nowless than 12% of the year. its performance is in line of the s&p. market cap is approaching $800 billion on the downside the hostilities will move towards some sort of boycott something that -- >> look at fedex >> not sending huawei packaging. >> you can switch to dhl there is a lot of things they can do to apple that we won't know until it happens. >> right >> but, wow. it is becoming the negativity.

walmart. i was going to say zero edge this morning did a piece on the three trump cards they have. bond market and i am blanking at the third. obviously there is some places we have not seen yet you come to work and you just don't right now, this is now six straight down week for the dow >> yes >> and you start feeling it. i look at my twitter feed, i am short this morning you need everybody to be that negative before you buy. >> you are waiting for a trump put for a fed putt >> yes, i am >> you got to hit 2-2 on the 10 year imagine a five year with a hundred handle that's insane. >> horrible.

>> we are looking for tarp people hate stocks right now every time by the way -- that turned pretty quickly. >> senator warren. rehad resurgence in the poll she would be different for the stock market >> the time does a piece today about cutting off china from wall street. >> oh, i love that >> if that were to happen. >> yes, then people would start making money >> look at luckin? >> what happens to stocks if that happens >> you would not lose money on luckin how about 21 out of the three. you' yours getting killed >> chinese asset or capital

market would be -- >> do you think that's worst >> i the that's touink that's th >> how do companies deal with flooding from over there >> the prosecution rest. >> it would not hurt them. >> is it a benefit to us that we have all these great transparencies and rules of laws >> we are open minded. bannon and i -- >> what did bannon call you, a pal? >> a brother i do think it would be a statement that we can still do if they want to -- >> dow is down 120

beyond meat is up 3% we did talk to the ceo of mcdonald's >> we are on the promotional bases. when you look a the substitute ideas, i think it will be interesting for us would be to see who is particularly interested in that we are exploring that and trying to understand it better. unfortunately, give customers acceptability of that particular type of it is prepared in a different way. >> dwrour answer on the call about it involves complexity and whether it brings another layer

of complexity into the region? >> on daphney does she so we know it is complexity. whether demand make it worse we had a similar discussion maybe four years ago but, it certainly as complexity for the operation. we want to find a way to about isobar that. if sms -- >> does the buzz feel fattest of you? >> there is been a lot of cell side research on yopd meat for examp example. a major qsr furniture will sign

by year end? >> absolutely, no idea to say. the one thing about is donald attract attention and seeing anyone who wants to get scale to >> we look to mcdonald's in any way shape or form. >> if you step on the scale, we know what you did to the chicken during mcnuggets came out. the whole market tips on its tools. >> just sheer volume just because we serve around the world, if i just take a case here in the u.s., we'll make the announcement that was going a five-year announcement of the transition across because it takes that amount of time to make sure of specific supplies.

>> now they do have alternative europe the mcfeast. oh, he's always got a consider service time if you have to prepear something new in a different way that makes it hard >> look me a long time to get my possible burger. what thoughtful man, i think the stock can rally. i do point out 17% of people who leave beyond me are not -- >> they're people that don't leek the food chain and they want to eat dead animals it is cleaner for. we saw what happened request milk it took over the world there are five different kinds of milk to have. beyond meat represents a group of people who are not vegetar n

vegetarian that's why steve is correct trying to federal government ouou figure out how the government is. >> i thought that piece was fatuous. >> you diplomat lidn't like it >> no. beyond the next quarter, taking it hard. down 5%. general mills. >> we are getting words from the justice department that special counsel robert mueller will make a statement today at 11:00 a.m. southeastern time on the investigation into the interference and 2016 presidential election. that's all we got on that. >> well, there is a guy that can turn the market. >> this general mills though, i

the blue pop blows >> it is usually painful fofr th for them to do that. the big moves surprise a lot of people >> speaking of the doj in a completely different area, if they want to come back to sprint or t-mobile is possible. >> we have been following closely ever since the fcc basically says yes >> we think this meets the public interest that is the merger of the sprint and t-mobile >> what are people familiar with the occasion th they are meeting they are obviously trying to figure out a way forward remember last week i indicated

there was a lot of resistance in the part of the staff and raheem according to sources they want the best the conversations are focused on that would in in fact address competitions of concerns and keep the proaspect of the deal >> i don't have more details on that those discussions have been going on for some time since the fcc came out of his review of the deal >> the doj not necessarily working across purpose but certainlily but not working o on -- >> we'll follow with it. i am seeing what these guys are willing to offer and what they are asking in terms of structural remedies that they

are talking about. >> it is interesting to talk to the tower company. the amount of money that's going to cost for 5g that's another whole scheme of thought that i cannen over f tam people >> that caused a lot of people short falls. >> the edge market, this is what you need to use, expand. your edge and world and engagement, this is fabulous >> fabulous, it does not matter and that's going to turn a certain point. >> you can't have fabulous business and just step the socks to go down and down. >> you look at -- they do a lot of cyber security, they mind their data that was an amazing quarter and if stocks go down pretty big

people don't like the stocks right now but they'll come back to him it is really slowing >> no correlation to growth of brown world. >> vm wear, no kor realizaticor. >> can you >> i am looking at qualcomm, only up 14%. >> kristine wilson taking on significant issue, in terms of the fcc, women against qualcomm. it is going to be a while for the night circus will c conceivably steel. a court dangerous and trust. >> anyone believe it >> we'll see

we bounce to the 200 days on the s&p. we are down 171 on the dow seema modi got what's moving on the floors commodity fallen in unison here with the exception of china. >> global picture. you will see that socks in europe and japan and ending oerl of 1%. the sector check here to give you an idea of what that sector are fairly worse it is those economic names and early trade. what's interesting about yesterday, biedespite the calls. ended lower on the day today slightly higher for utility. let's dig in the dow transport now dow is down about 8% for the month. this is 20 stocks that are

combined out of those three, the airlines i have feared the worst, american airlines and delta and southwest. it is down for 17% for american airlines two big question the mark is trying to answer now how low will the ten year go you slip 36 basis points how will the current trade dispute. what kind of economic impact we'll have on that front we get the michigan manufacturing survey at 10 pam trying to pm ai on friday where economists are expecting a reading below 50 which would indicate a con transaction. guys, back to you. >> when we come back the ceo of hilton, today's bill ringer here. the big board, we'll get is take on business and the wake of trade tensions and encreaincreay on consumers

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we're down 224 on the dow. down 22 on the s&p some of the word names include some retail, capri holdings, a story today. general mills downgraded over at goldman to sell. stock trading with jim in a minute don't go away. puppy school is in session.

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xfinity xfi gives you the speed, coverage and control you need. manage your wifi network from anywhere when you download the xfi app today. let's get to jim and stock trading. >> sometimes it doesn't matter how good, how good you are dick's an amazing quarter. what is important is that three months ago they took out the guns guns are very profitable they are bringing in a lot of customers. they still did that kind of number it doesn't matter now. what you do is you file that away and wait until after you feel like the interest rates have come to the bottom, and recognize that this was the best -- one of best retailers for this period. congratulations to the dick's people it won't matter today. won't matter file it away and remember that these companies did well

by the way, interesting tesla is up even though it is -- >> tesla is up 1%. >> margin issues too. >> there you go. i think we're in the market now where i think you could bounce it should bounce dick's was quite good. workday was great. general mills is a downgrade that is fatuous. i think the company is doing very well. >> you defer to the bond market. >> that's the problem. if interest rates go -- it is amazing i have to say this -- if the interest rates would go up a little, the markets would like it i can't recall in my career i'm rooting for higher interest rates. that's nuts. >> tonight >> i got pvh tonight, power company. logite logitech, is it still hot? i don't know and the ag business has gotten

bad. even though, by the way, futures are up, corn has bombed. so, i mean, but they're not caught up in the trade war they're the old caterpillars, farm equipment we'll talk to martin, maybe he'll make us feel better. >> we'll see you tonight >> little down >> i can tell. >> don't take it so hard. >> what's next >> next is the 10:00 hour. >> yeah. >> robert mueller at 11:00. >> yes when we come back, more of our exclusive with mcdonald's steve easterbrook. we'll look for mueller in an hour's time. dow down 206 pnc bank has technology to help make banking easier, like.. pnc easy lock, so you can easily lock your credit card when its maximum limit differs from its vertical limit. and clover flex, for when you need to take credit cards when no one carries cash. or requesting a call to help get a new credit card-

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♪ good wednesday morning welcome back to "squawk on the street." i'm carl quintanilla with sara eisen and david faber at post nine of the new york stock exchange more selling after yesterday's sell-off as well dow down 215 2781, just a couple of points above the s&p's 200-day moving average. >> our road map for the hour starts with big moves in the bond market.

triggering all sorts of concerns about the economic outlook should you be listening to the warning? >> our exclusive with mcdonald's ceo steve easterbrook on china trade, big business growth abroad and much more. >> and chinese tourism to the u.s. dropping for the first time in 15 years. hear what the ceo of hilton hotels has to say about that and a lot more. >> by the way, learning this morning that special council robert mueller will be speaking at 11:00 a.m. eastern time on the investigation into russian interference and the 2016 presidential election. of course, we will take you live to washington as soon as that begins >> in the meantime, stocks deep in the red this morning, dow down 200 points. bond yields falling triggering concerns over the broader economic outlook our senior economic reporter steve liesman joins us now with more what do you make of it all, steve? >> a yield curve inversion when short dated treasury yields like one month, two month, ten year yield less it is a fairly consistent

recession indicator and you can see that in this next chart. the gray areas are the recessions, the circles are when it goes negative, anywhere from eight months to 24 months ahead of time. it will -- it tends to signal a recession. we're not quite there yet on the deep kind of inversion that has previously signaled recessions, but we are close mufg writes the bond mark set frightening the stock market with the death spiral in yields setting off alarm bells for investors as an inverted yield curve says a recession is near recession fears have led markets to increasingly price in a fed rate cut this year you can see some of these probabilities are really high. 58%. that's for september, a few months away. get to the end of the year, 85% probability for a rate cut january, 95% probability ubs pointing out its credit recession model not flashing red because there has been no tightening of credit standards by banks

ubs says low policy rates and global qe make the yield curve inversion different this time. i know people get skeptical about that some fed officials are sympathetic with that idea several also expressed concern about the economic signal from the inversion. what do they do? fed unlikely to react i would say just to this inversion it is going to wait for more confirmation that the yield curve is sending a true recessionary signal before acting that would be my take. >> steve, is it crazy to talk about recession when consumer confidence is relatively high, the consumer in good shape, unemployment at the lowest it's been in decades or not >> conflicting signals in the economy? yes, there most definitely r the unemployment numbers are terrific the wage numbers are good. even the growth numbers, i don't think they're that shabby, right. you have that strong 3% number in the first quarter and i'm pretty happy that we're running at 16 in the second quarter. i average the two quarters

together, you do a first half around 2.25, 2.50, that's pretty good the wild card, sara, the tariffs. nobody knows quite what to do with them. it is interesting to me that the bond market seems to be treating tariffs as a deflationary or disinflationary event. remember, they're raising prices that's what tariffs do but the idea is that the bond market is focused on the back end, the weaker global growth that comes from it and potentially washing up on our shores the weaker u.s. growth. >> steve liesman, thank you. >> pleasure. >> joining us now, mark, the chief investment officer at ubs global wealth management and gabriela santos is back. good to see you both gabriela, how severe would you take the bond market warning if you're a stock market investor >> we look at the yield curve, we don't ignore it what it is telling us this is a later cycle economy. next month in june this will tie

the longest expansion on record. but we don't treat it as a crystal ball and we're very sympathetic to this argument that there are a lot of demand forces serving as very heavy anchors on the yield curve that distort the signal it could be sending at a normal cycle. the fed balance sheet, process of winddown, treasuries, as well as a lot of foreign demand, something we saw on tuesday after the european parliamentary election. >> doesn't spook you away from stocks >> it doesn't spook us necessarily in and of itself we are concerned by the risk of trade tensions but that is a slightly separate issue than the discussion around the yield curve. >> mark, what about you? >> well, i think it is a great point to look at something like what is going on around the world and it certainly is true that global pmissparked demand r things like treasury we're later cycle, but we think

the cycle is on hold because the fed is indicated that it is on hold so when you look at the u.s. economy in totality, you have great hard data around things like unemployment and growing productivity and it is the softer data that is around sentiment which is coming in weaker now >> if you look at the reaction in the market, utilities are the only group that is higher. which you might expect when bond yields go down yesterday was a funky day because you got those low yields and the consumer staples and utilities got hit the hardest. what do you do with the defensive secretadefense defensive sectors? >> our characterization of the economy right now later cycles a signal we're getting from the yield curve, we're seeing a slowdown from last year's sprint pace, totally expected back to a 2% average growth rate we would still characterize recession odds as low. it is not an easy call to be full in on defensives, ignoring

the cyclicals altogether we would -- what we would do is a better balance between the growth tech side and the value side, which will include some of the defensive stocks, but not exclusively. it will also include some other stocks that are more income friendly, but also cyclical, things like financials and energy so a better balance between the two, acknowledging late cycle rest and the potential downside from the trade war >> when do you start arguing the fed is too tight, if we're in a trade war? >> i think it would very much depend what the next step is if all we do is just remain in this uncertain scenario, this heavy cloud hanging between -- behind us, that's okay if we take that next step, that next escalation of 25% tariffs on $300 billion, that say much more serious scenario for the economy. and then we do expect the fed to cut focusing on the negative economic -- >> best case, we don't do that fourth list. >> the best case now is yes, but we do acknowledge the risk has gone up over the past, well, since the 5th of may

>> so i was looking at a list of 52 week lows, we got email, a lot of retailers on that list. tapestry, macy's, kohl's, nordstrom, gap, foot locker, capri holdings is the consumer fine or not? >> well, you know, given the employment situation, i think the consumer is doing well that said, you know, that's not our favorite sector. globally or in the united states i like this idea of looking at the sides of tech that are less likely to get caught up in the trade war, more on the -- some of the communications and internet side. and then also looking at value, things like energy, because we do think that there is still global demand for oil, and that they can improve as we get further into the year. >> where would you be around the world? you have more of a global view when it comes to asset allocation are you better off outside the

u.s. or in it? >> we think so we're neutral on u.s. equities i can tell you i've been traveling around the world both the united states and china, and one thing i think is important for your viewers to understand is that, you know, opinion leaders in the united states will say china has more to lose, but when you're traveling in asia, they believe the united states has more to lose. both sides have levers here to pull and we don't think they're done pulling them. we don't think that either side is rushing to a deal right now and so i think on the equities, we would look more towards doing some relative value trades, something like being overweight canadian stocks and underweight the swiss stocks, for example. >> everyone and no one is an expert in this trade dispute it is very difficult to truly understand what is going to happen if i make an assumption that we are going to go to 25 on the $300 billion, what should i be doing? >> we think in that case a

further escalation, that would be a negative for the chinese economy, would require more stimulus on their side but would also be a negative for the u.s. economy >> do i pull back my allocation to equitys >> we're thinking about being more neutral, the stock bond side, right? and within equities what we're thinking more about is that better balance between growth and value and also strategies that can allow us to hedge a little bit on the downside with options. so you can participate ifthat doesn't happen, right, you can participate on the market rally, but you are hedged on the downside in case that worse outcome does happen. >> that may be taking place now. >> i think some of it, right the market is very healthily adjusting for that uncertain outlook on trade, what it means for the economy and earnings, that's healthy to see. but if we have that 25% escalation, then you would see more downside in the market. >> mark, reuters has a good piece out about the street's median year end target, 2925 is actually higher than it was in

february before this trade war really erupted your expectations for separate from your own call, but what do you think the street gets religion if at all on year end targets or earnings? >> look, i think that it is -- it is one of these issues where we talked -- you were talking earlier on the show about is there a trump put and a fed put and keep in mind the president can take these tariffs off, you know, at some point when it starts to really hurt the u.s. economy. and i think that that's why given the strength of the hard data, many of the economists and forecasters out there are not willing to give up on higher markets this year. so there is some -- there is certainly some truth to that that you just can't give up because both sides still have reasons to strike a deal at this point. and so while we don't think that you're going to get one at the g-20, maybe later in the year

they find a basis for an accord. >> my other question, sectorwise, what do you do with technology stocks which have gotten caught up in the cross hairs between huawei and china is threatening to pull rare earth metals, have you done work on who might be exposed and what you do with that overall sector? >> so for technology, we don't want to completely abandon it, right. it is a strong structural story there around software and cloud computing and ai so we can't give up on it. but i think the tendency over the past few years because it was such a strong performer was to be all in on tech and growth. and all that we're advising is to maybe take some trips off that table and start to have a better balance between technology as well as other sectors. i think it is a story more of being more cautious, more balanced, but not abandoning the story altogether. >> mark and gabriela, thank you, both >> thank you when we come back this morning, shares of mcdonald's on

a tear in recent weeks up nearly 100% since steve easterbrook took the helm 16 quarters ago we spoke clexclusively with easterbrook. don't go away. we're down 215 >> what we got here isn't very efficient to get us where we neat to g need to get to it is having that hunger, that agility, that you can be big and fast in business, i think traditionally back in the day, the big eat the small, today the fast eat the slow. there's one thing you can be sure of. they're changing by the nanosecond. that's why cognizant created a unique engineering approach to design and build new digital products. learn how cognizant softvision designs experiences and engineers outcomes. ♪ cool.

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mcdonald's shares hit all time highs last week easterbrook gave us a tour of the new location they have in times square it will be one of the busiest mcdonald's in the world and feature the changes the company has been making. new designs, mobile pay, digital kiosks called the experience of the future and now that the company is about two-thirds of the way through all of its renovations, we started with whether we're seeing a return yet from all those investments. are we at a point now where the tickup in sales is more than offsetting the loss in sales during construction? >> yeah, we turned that around the first quarter of this year last year it was a little bit of a drag, because we were remodeling so many restaurants we had downtime you describe

now we flip a little bit a little bit of a tailwind as opposed to the head wind. >> is it fair to say you're extending iin inthis investment window at what point does that become more of a concern for investors? >> i think we need to continue growing, don't we? if where we're investing that money is helping drive growth across the restaurants, i think the shareholders and investors will be satisfied. we want to bring our own operators with us as well, they're investing their hard earned dollars as well that always means we have a business case, you know. i think we got a wonderful check and balance in the system to help us make sure we spend that innovative money in the right way. >> what is dynamic yield brought to you yet so far. >> a lot of excitement first acquisition for 20 years an acquisition in the way that

was different from the past. not looking at different restaurant businesses to try to expand our footprint, bringing a capability, ip and talent into our business that can help us accelerate the growth model. so we completed the deal mid-april, and then two weeks, we had that technical capability in 800 drive throughs here in the u.s. it is a very, very rapid execution implementation. >> labor under severe pressure now to raise wages, harassment training, but where is the employee in terms of their relationship to mcdonald's and do you think 15 on the federal level is a reasonable possibility? >> i think overall if you look around the world, not just the u.s., look at our mature an emerging markets, you're finding the labor pool getting tighter and tighter. when you're in the service industry like we are, we have to have well motivated and fully staffed restaurants. so, yeah, we are working hard making sure we keep turnover, we

keep pay competitive it is tight. we're finding this is as tight as it has been for a number of years. >> a big part of the piece was about the company's ambitions in china. big strategic step and now where does that stand? in light of everything we know about the u.s. relationship? >> inevitably it remains a big bet for us absolutely we got new strategic partners there, which was -- new partners within the country and now who have actually accelerated the program. largely opened over 400 restaurants in 2018. they opened another 400 restaurants in this current year now become the second largest market by restaurant number in our entire 120 markets, this after the u.s. so knowing exactly where we want to be. we have a strong presence in the tier one cities and the partners are helping us to expand to tier three, four and five cities, going further west through china and confident in the market and

confident in the partners we have got there. >> how do you quantify or characterize risk to the brand, as an american brand, to regulatory pressures in response to something we might do as a country? >> ultimately, none of this is new to us. we operate in 120 countries around the world there are always going to be issues, geopolitical level and part of our strength is our diversification. so clearly we want to be sensitive to it. clearly. having that local ownership helps localize mcdonald's and china. we have a minority partner as well from the u.s. as well so, yeah, i think we have a good balance now between the ownership there and the future we have. and clearly wherever we try to establish our business, we have local supply chains as best we can, local management, local operator and localized mcdonald's to be as effective as we can and consumers recognize that, different menus, different tone of voice, different style of marketing. that, i think, entirely helps

insulate any sort of issues if any events unfold. >> fair to say all the recent tension has not altered mcdonald's strategic or tactical strategies in china? >> absolutely not. in the shorter term, business slowed down a little bit as the economy slowed down a little bit in china in terms of long-term interests, very important market for us and i think will stay that way for as long as i can imagine. >> last thing here, been to the company i think 15 quarters now. and in that time you changed the food, restaurants, m&a, i just wonder, given the string of comp growth how you feel about your tenure at this stage we know what the stock has done. >> less about my tenure. more around, i think, getting the culture of the business one where we have more speed, open minded, taking a little more risk and fortunately that has been working i think we're getting more things right than wrong.

so to be complete this current quarter, 16 quarters of growth, 4 consecutive years. >> interesting to hear him talk about putting the pedal to the metal on china, given everything we know. i think back to when they went into russia in the '80s and '90s, a lot of experience working in emerging markets, hard core emerging markets we'll see. are the chinese willing to give them a carveout if this gets bad and if they don't, will this test mcdonald's ability to navigate political waters? >> i like the vintage video of you and the documentary, back in 2007 but that is a good question, right? kfc, mcdonald's, starbucks, those have got to be the three most exposed in terms of on the ground in china, american names, is he worried about that worried about boycotts and -- >> doesn't sound like it from what he told us right there. it is more -- again, local ownership, partners in the region, makes a big difference that some of the -- for instance tech companies we talk about

with exposure. >> we were also just talking about how amazing that turn around has been. whether it is him, he's modest not to take credit, but i remember before he came, it was quarter after quarter of same store sales decline, especially in the u.s., people thought millennials were never going to go to mcdonald's, on all the wrong trends, stores were not, you know, fun to go in and the food was totally out of vogue. and it is amazing how he's turned that around all day breakfast was a turning point. and then the sort of the momentum came from there >> a gamble that prior regimes were unwilling to make because they were so big when you renovate your living room like they're doing to the restaurants, it is hard to live in for a while, but they made some gambles and it seems to have paid off in the short-term. given what we know about the globe now, you can see why the stock responded. >> it is defensive play. so this is not a kraft heinz this is a defensive play that growing like a coca-cola, like procter & gamble and they have

outperformed in this market, growth and defense in a tough economy. and dividends. >> helpful we're watching the market bounce a little bit here down 161 >> when we come back, ceo of hilton hotels on the state of chinese tourism in america the trade war and the fight against airbnb a quick check as carl just mentioned on where we are at this hour. off the lows of the session, still another down day s&p is off half a percent. sell-off into the close yesterday, five down weeks coming into this week as trade war concerns continue to rattle this market. especially with bonds. we'll be right back.

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time for etf spotlight mike santoli looking at high dividend stock etfs and why they haven't offered that much shelter from the current sell-off. >> a little bit counterintuitive we had bond yields collapsing to year and a half lows you had utility stocks as you see here, the xlu has done very well this month. this is a month to date chart of these etfs the dvy, sdy is the s&p 500.

spiders, dividend aristocrats, they really haven't helped you out much relative to the s&p 500. why is that? what is inside these etfs is a lot of financials, 15%, 16% in each one of them consumer discretionary industrials. what utilities give investors at least a perception is extremely predictable cash flows what you don't get wh, they havt done that well, even though the yields are good, sdy is more like 2.5%, still premiums to the ten year note. one year basis, it is a relatively similar story you had new highs for utilities. but the rest of the -- the s&p give or take a little bit with in particular the dvy, more value oriented ford motor company, the leading holder, underperforming by quite a bit. a chase for yield, but investors have been discerning about where

they want to get that yield from. >> we talked about at what point some of the staples and utilities and real estate will start to see some sell signals anything soon? >> well, yesterday was interesting, you had some underperformance by the eye t t utilities, real estate sometimes the stock market kind of sniffs out a move is basically maybe soon going to b running its course you've seen the low in treasury yields for morning it is very early, but i do think you have a lot of stretch sentiment in the short-term. i'm alert for a possibility of a month in reversal. >> speaking of that, the s&p 500 now down less than half a percent. apple has come back so far in this session, up now, mike. >> exactly a lot of the bellwether, a lot of the hard hit stuff seems like it is trying to lift now you really have not gotten any kind of a perpurge or flush

index is very contained. seems maybe the market is saying, you know, it has been more of the same, already under a lot of pressure, had sentiment reset quite a bit. >> mike, we'll watch it as david says we're now down 147. let's get to sue herera with a news update. >> good morning, carl. good morning, everyone here's what's happening at this hour president trump warning the consequences will be devastating if alabama republican roy moore seeks the senate seat again in 2020 his 2017 campaign was battered by allegations of sexual harassment of teenagers. trump tweeting that he has nothing against roy moore, but said he cannot win a british judge ruling that former foreign secretary boris johnson will be summoned to court over allegations he lied and misled the public during the brexit referendum campaign this when johnson claimed britain contributed $442 million to the european union each week. the louvre museum has reopened to the public after it was closed on monday when

workers complaining of overcrowding walked out. hundreds of frustrated tourists who had been waiting several hours in line this morning expressed relief they would be allowed entry. the museum is closed on tuesdays and nepal is commemorating the anniversary of the first ascent of mount everest. government officials at the event celebrating edmund hillary and ten zzig norgay back downtown to you >> sue, thank you. as we head to a quick break, check out the retailers, a lot reporting today, dick's, abercrombie & fitch, capri holdings and canada goose, canada goose losing more than 20%. when we come back, the ceo of hilton hotels explains why he won't try out the airbnb

business model like some of his competitors are doing. and at 11:00 a.m. eastern time, we'll take you live to washington special counsel robert mueller will be speaking on the investigation into russian interference in the 2016 presidential election. pp're all over that live when it haens. "squawk on the street" will be right back dow is down 140.

hilton hotels ringing the opening bell, celebrating the company's 100th anniversary. >> we have not seen, to be honest, any direct impact from the trade war. we have a relatively sizable business in china, but keeping in perspective it makes up about a little over 3% of our bottom line we have a big business for outbound chinese business. we have a growth business in china in terms of adding new hotels and when i look across

the spectrum, you know, in, you know, in china, in country business, outbound business, i look at our growth on the development side, i have not seen any real impact. >> even chinese tourists visiting the u.s.? >> chinese tourists are -- have gone down, but that started last year before the trade war started. so and was not a material part of our business. so, you know, reality is i know that's what everybody is talking about. we haven't really seen any material impact in our business. we're obviously hopeful that calm heads prevail and a deal is made my biggest worry about the trade war as i think would be the case with everybody you talk to is does it trigger other things does it really trigger a more material slowdown in the broader global economy, in the u.s. economy, and those are things that, of course, you know, that i worry about. i haven't seen it yet, you know, looking at our business in the u.s. and around the world. business is quite good. >> you don't see any evidence of the global slowdown?

>> i would say yes but consistent with what i've been saying, this year is a little bit slower growth than last year around the world but still reasonably good growth and that's what we have been saying we came into the year saying we think coming off of the -- what was a pretty darn good year in 2018, the 2019 would be another very good year, but same store growth would be a little bit slower and that's exactly what we have seen so, yes, we are seeing a little bit of slowdown, but i would say if you look at the -- every month we have been progressing through the year, i haven't seen any real material difference as this has been escalating. >> pretty optimistic take there. also said he sees the u.s. consumer in fairly strong shape. slower than last year. but not a total slowdown we also had to discuss airbnb. especially with marriott getting into home sharing. and whether nassetta sees them as a threat to their business or not. >> i think the answer is no. i'm well chronicled in this.

i fundamentally think it is a different business we have done a lot of work to understand it. we have done a lot of work with our customers to ask them, you know what do you think of it, how do you use it, do you want us -- do you need us, do you want us to be -- >> marriott is getting into home sharing. >> one of our competitors is and the more we talk to customers, the more confidence i have that it is not the right thing for us to do at the moment we're always going to be looking at it and if we need to change tactics, what we're really focused on now because it is what our customers are telling us they want from us is being the premium player that means focusing on high quality, consistent branded experiences, which is taking product, wrapping it in service, you know, with the number one great place to work culture in the world, and adding technology to it, loyalty to it and putting it all in a package that is really done at a consistent high quality way where customers pay a premium for it, they know what to expect and we deliver for

them and that's what we do well that's what we have been rewarded for, that's why we're growing faster than our competition, why the new unit growth is coming in, that's why the model is resilient and the reality is, it is not that the home sharing model is a bad business, it is just different than what i just described. >> it feels like we're having some sort of convergence they bought hotel tonight. marriott getting into home sharing. they're preparing to go public they're increasingly catering to corporate travel >> when i talk to our customers, there is this little thing that i sort of have grown up with, like, focus and discipline and that is when i talk to our customers, they tell us what they want from us, and so my attitude is i want to do even more to give them what they want and do it even better. make our products even more consistent, higher quality, do an even better job with service, invest in technology like crazy to delight them and take the friction out make loyalty somethinging th it club you have to be a member of.

that's what customers want and i think it is -- i can't judge it for other people, i think if we get those things right, that we're going to perform really, really well in the short, intermediate and long-term. we'll keep looking at that there is some convergence, but fundamentally there are different models by definition what we do in terms of quality and consistency is something different than i think they produce or can produce. we'll see. time will tell, but for us, focus really matters. >> chris, ceo of hilton hotels, which has been an outperformer in the market so far this year, really over the last year or so. i asked him about that he said they got a different model and that wall street is really catching on to that they don't just move with the cyclical stocks like some of their competitors around spending and that's because their unit growth, their asset light continues to drive earninginearn i ings and cash flows and the story plays out as you see in their long-term performance.

>> interesting i thought his differentiation in terms of their model and his unwillingness to say, hey, we're going to go down that road did he outline at all the characteristics that he sees in terms of the consumer for airbnb versus the consumer of a hilton? >> no, but he did try to distinguish himself more as a service business, service, quality, rewards programs, all the things they offer that airbnb does not offer. of course, there was a headline in march that more rooms were booked on airbnb last year than hilton and all of the subsidiaries airbnb has been pushing into the corporate travel space, he said, look, we're always looking at it we're not ignoring it. but we, you know -- >> made a distinct decision different than a competer. >> with marriott going into it i think the convergence will be interesting. they're continuing to open up hotels all over the world and fill those hotels. so their growth actually is pretty good right now so they haven't had to step back and

deal with is this really a -- >> interesting that airbnb is trying to do more of the service through some partnerships at least here in new york city because they understand that consumers need something other than a roof over their heads >> absolutely. i also thought, guys, when he said on china was relevant, especially for investors and this conversation we're having today about how much of a slowdown there is and he said he hasn't really seen a direct impact of the trade war. >> echoes what easterbrook told us for mcdonald's, there has been a slowing in sort of the normal slowdown that you would expect in late cycle and we have seen all around the world. the impact of the war itself, trade war itself, is still too early to tell. >> i found a little surprising because we did get that news just this week that chinese tourists to the u.s., that growth rate fell last year for the first time, i don't know, in -- >> 15 years? >> yeah, a long time 6% drop. we did see warnings both from the chinese side and the u.s. side on tourism about visiting each other's countries and i wonder if that had to do with

it he wasn't going there. he just said, you know what, maybe slower than last year, but nothing extreme and we still think everybody is in a good spending mood. >> when we come back, cutting ties, the makers of oxycontin facing pressure from nonprofits. we'll get that story next. monitoring movement out of washington, of course, about 20 minutes until we expect to see the special counsel robert mueller speaking at 11:00 a.m. eastern time on the investigation into russian interference in the 2016 election there is a look at the justice department live. we're down 180 "squawk on the street" back after a break. at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad.

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software stocks soaring this year some say the group is about to get even hotter. find out which names to buy on tradingnation.cnbc.com more "squawk on the street" is coming up.

retailers getting hurt this morning. dominic chu joins us with more. >> let's give you some of the notable names moving sharply

lower in trading so far this early part of the morning. the biggest decliners so far we're seeing in the retail space, abercrombie & fitch, not an s&p 500, but it did miss on some comparable store sales, measures you see those shares down by 25%. we're also watching canada goose shares, another big decliner, we're moving now 20 som% or 25% lower after it missed sales barely the guidance for sales growth over the course of the next few years is coming in slower than over the course of the past eight quarters, we're watching those shares as well michael kors parent company capri holdings posting guidance that missed wall street expectations as well those shares moving to the downside one bright spot had been at one point dick's sporting goods. if you look at those shares, they did stage a reversal through the premarket into what is happening with regular trading right now and some of it, some traders say, has to do with comments being made on the conference call now, where

management is talking about whether tariffs will have an impact on their results, the guidance they say for their coming full year is not factoring in yet a full rise to 25% for some of the hard line-items that may be affected at dick's sporting goods that's the reason why we're seeing the shares reverse course, up premarket, and now moving to the downside in the regular session. back over to you guys. >> a lot of -- a lot of notes saying that was not a high quality beat thank you. besides the retailers, there is pain out there. the dow has turned south again down 214 points. s&p 500 now down almost .7%.los yesterday as well. we're watching the bond market, of course, and we're watching these trade tensions, which only go from bad to worse, and if you follow the chinese media overnight and the people's daily and everything like that, the rhetoric is picking up don't say we didn't warn you was

the latest phrase from a people's daily op-ed apparently that has only been used two times in the newspaper's history, 1963, ahead of china's border war with india in 1987 before china went to war with vietnam. >> interesting we talked about rare earth metals with jim and how they're beginning to use that as a rhetorical weapon. >> we're getting hit harder than them this week at least, or at least it shifted lately, whether that's because they're supportinging their market or not. and there is also this bond move we're watching, 222 on the ten year, deep near negative territory on that inversion, three-month ten year and that can mean all sorts of things can mean the inflation outlook is getting weaker, more disinflationary because of the weaker growth, the growth outlook getting weaker or the bond market is pushing this fed to cut rates, which continues to be priced in this year

>> yeah. hard to imagine. but there we are 2227 moving on, companies and nonprofits are cutting ties with the wealthy family that is behind the oxycontin producer purdue pharma. robert frank joins us now, more on that story. >> good morning. the list does grow longer by the day. jpmorgan and mckenzie, metropolitan museum and the tate all institutions cutting ties with the billionaire sackler family or purdue pharma. saying it ended its relationship with purdue pharma over its alleged role in the opioid crisis jpmorgan managed some of the company's cash and bill payments mckenzie saying it won't work for purdue any longer after a lawsuit revealed that mckenzie had advised purdue on how to boost sales of oxycontin on the family side, hedge fund hilldean capital management and balter capital both returning funds to the family and separate of the museums and charities that received tens of millions from the sacklers over the decades including the met, the

guggenheim, the tate, natural history, all saying it will no longer accept sackler gifts. the family's net worth around $13 billion. they agreed to contribute $75 million toward that $270 million settlement in oklahoma that purdue settled david sackler, one of eight family members who served on the board, is listing his apartment on new york's upper east side, so this will be a test of their name in the market for $6.5 million, the sacklers saying in a statement that while the allegations against our family are false and unfair, we understand that accepting gifts at this time would put certain organizations in a difficult position purdue, the company, which is separate, saying it has multiple banking relationships and that its banking and financial service needs will not be affected guys, back to you. >> there is different branches of the sackler family, aren't there? some more connected with purdue than others, i guess. >> that's right. there are two basic branches, what is known as the a and b

side, depending who they're descended from there is an emerging split eight members on the board, they all said for years they were passive investors, passive board members. of course, these cases in massachusetts and new york seeking evidence that they were more than that therefore their fortune fortune be on the hook for some of this. there is a growing divergence now between the a and b group as to sort of how to deal with some of those e-mails that have emerged, how to deal with the settlements and i think as we go forward you could see each of the members of the family sort of staking out their own position so this is going to get complicated. as the talk of bankruptcy for purdue develops the question is, if and when this is settled how much and who pays and is this family going to be on the hook for part of it >> >> right. robert, thank you. >> thank you >> robert frank. okay we got ten minutes left in our show, but we're going to have mueller at the top of the hour people getting ready for that. what are you going to be discussing at the end of the

trading day? >> anything can happen in the final hour of trade. good voices to guide us through, former ceo scott mcnealy on the impact -- on technology of all of this. what a rare earth export ban would mean we don't import a lot but they are valuable, i guess, in key areas of technology like cell phones charter major lender in asia will join us in an exclusive hopefully we'll get from him what the impact is on local business in asia, how much of a slow down there is and what plans these companies are making. >> that's a good one we have a lot to handle tonight on the "closing bell." a few moments from now, special counsel robert mueller speaking at 11:00 a.m. eastern time in about ten minutes on the investigation into russian interference in the election of 2016 we're going to take you liveo shgt nt. t

just moments from now special counsel robert mueller will be making a statement on the investigation into russian interference in the 2016 presidential election. our eamon javers joining us from the white house with more. >> good morning, sara. this was publicly, entirely

unexpected and comes at a pivotal time in washington as democrats have really been on the fence on the issue of impeaching this president of the united states. anything robert mueller says here publicly could tip the balance on that decision one way or the other it bears watching this morning a senior administration official, though, tells me it was not entirely unexpected inside the white house the administration was given a head's up by the department of justice last night, i am told. the special counsel robert mueller would be making this statement today. now the question is, what is he going to say we don't know the answer to that it's not clear whether the white house knows the answer to that up on capitol hill they've been wrangling with mueller about whether or not he will appear publicly to testify on capitol hill and answer democrats' questions about the president's conduct. we are told that in this set of remarks that he's about to make at the department of justice, he's not going to answer questions from reporters, so that answers one question about

what's going to happen today at the department of justice, meanwhile, this comes amid a period of tension between robert mueller and his boss, bill barr, the attorney general remember that mueller sent that letter in late march effectively complaining to barr that he didn't feel that barr had summarized the context and substance of what he found in his investigation accurately to the public, leading to public confusion. so this comes now at a point of tension between those two men and it also comes at a time here at the white house in which the white house has fully embraced the mueller report and mueller himself saying that they found no collusion and no obstruction, although that's not technically x exactly what mueller said in his report this white house has thrown their arms around the report saying it exonerates the president and ready to move on and complaining democrats want a do over. here comes robert mueller to speak to the public at 11:00 eastern time at the department of justice and we have no idea what he's going to say and how it's going to tip the balance on

any of those delicate political questions. guys >> in classic mueller style, nothing has leaked about what he's about to say to any of the major news outlets in advance. we do take note that barr is going to be on cbs tomorrow evening. interesting to hear him speak and mueller, of course, first public comments in a couple years. >> sure. most americans don't even know what mueller's voice sounds like he's been almost entirely silent in public around all of this, despite the intense public interest in this he has said just about nothing on camera. one or two moments where reporters caught him going in and out of a washington restaurant here in d.c. and he did say no comment his voice actually has been recorded in that period of time, but nothing substantive. his report so far has spoken for itself and now he's going to speak for himself publicly so many questions swirling around what he's going to say. you're right, we have had no leaks. this is classic robert mueller here

a surprise announcement, no leaks about what he's going to say and high drama here in washington, d.c. >> we were actually having a conversation during the commercial break about the fact that this is taking place at the justice department, and whether there's any significance to that and whether mueller would actually go ahead and criticize the boss, the a.g., barr, at that location. >> well, so interesting, right i mean mueller, by all accounts, is sort of a regular order guy he's not somebody who likes to go rogue or buck the system. we don't expect that behavior from him that would be out of character here but the fact that it does happen at the department of justice indicates what we all know which is that mueller is still a department of justice employee we got some indicationfrom the special counsel's office after the report was filed that in just a couple days mueller would be leaving government service. that never happened. we never got a full explanation as to why mueller never left the department of justice. he's still there and he's still an employee so that's the podium he's going to be using today we also don't know exactly where

bill barr is in all of this. the attorney general had an event scheduled in anchorage, alaska, today, not clear whether he's going to appear at the side of robert mueller today or make a statement afterward or whether he's in washington at all or not right now. the expectation was that he would be in alaska today that's a long flight home to get home on short notice we'll see whether he appears at the department of justice today or later on this afternoon >> yeah. i think we just got a two-minute warning so we'll expect to run on time here elon with us as well there had been speculation that he would be -- that he could potentially respond to some claims in michael wolff's new book, these reported claims, about what exactly they considered during the investigation, but "washington post" this morning sort of knocks that down >> yeah. so as eamon said we'll have to see what he lays out in these statements but as eamon mentioned he has been in protracted negotiations with house democrats over whether or not to testify on capitol hill currently the expectation is

that he would come at some time in the coming weeks. he would make a public opening statement, but then testify privately. house judiciary committee chairman jerry nadler said that mueller wanted to remain above the political spectacle, above the political fray we'll see if he can accomplish that during his statement here right now, washington has been caught off guard by this announcement most lawmakers are at home in their districts traveling overseas we are expecting to hear from house speaker nancy pelosi later on this afternoon so we'll see if what he says in the coming minutes moves the needle at all and what the democrats' response will be to that in. >> i wonder in terms of the chairs of various committees, whether it's government oversight or judiciary or intelligence, i assume they, too, have little advance knowledge of what the special counsel is about to say. actually let's get to the podium here's robert mueller. >> thank you for being here. two years ago the acting attorney general asked m