this is "squawk box. ♪ good morning welcome to "squawk box" live from the nasdaq market site right in times square, by the way, where a gentleman, did you see this last night. >> no. >> do you know what i'm talking about? >> i have no idea. >> was walking on a tight rope over times square right here. >> yes >> it happened last night. kelly evans is in. she did not see it becky quick is off maybe she stayed up late to watch. we'll show you what's going on ahead of the opening bell we're still three and a half hours away nasdaq up about 20 points. s&p 500 looking to open higher as well up close to three points higher we'll show you what's going on overnight in asia president xi and president trump will be meeting this week. you have green arrows across the board. european equities right now

are -- in the red but just marginally across the board. finally, the all important treasury yields this morning if you want to go ut and get yourself a 30-year mortgage on the fixed rate ten year is 2.031. >> crazy. >> crazy. president trump says the u.s. will impose major additional sanctions against iran today over the weekend the president said he called off those military strikes against iran over concerns about the loss of life but he hasn't ruled out using military in the future we'll get a live report from washington with the latest on this later this hour checking on crude prices we're up marginally today wti adding less than 1% right now brent barely positive. by the way just under 58 and just over $65 respectively are those levels the president taking aim at fed chair j. power in an interview with nbc's "meet the press.

he never threatened to demote powell but has the power to do so if he wanted. >> what he's done is 50 billion a month in quantitative tightening, that's ridiculous. what he's done is he raised interest rates too fast. >> you worry he'll hurt your re-election? >> i think the economy is so strong we're going to bull through it but i'm not happy with his actions. no, i don't think he's done a good job i think this, if he didn't raise rates -- obama had very low rates. so obama was playing with funny money. i wasn't i'm playing with the real stuff. >> the president saying he wasn't happy with powell's action. >> he's not threaten his job but then was threatening his job. >> you should have kept yellen in place if he thought she was so great >> right. >> any way >> was that an nbc broadcast of the -- >> it was. >> it was. >> oh, i watched it. it was wonderful. >> no, no, no. >> no, that was an abc broadcast. >> i didn't watch it. >> you were hyping it.

>> we're here in times square and it was literally running -- >> remember we couldn't get into the studio last week because they were setting up for it. >> is that what the trailers are for by the parking garage? oh >> he's walked across -- does it matter what you're walking across really? >> he was attached in this instance. >> i figured. >> new york wouldn't let him. >> i'm not saying anyone is rooting him for. doesn't that take the drama out of it. >> abc was "60 minutes". >> this was 8 to 9:30 broadcast. >> there was 8 to 9 as well on multa as well, too. >> i missed that one, too. >> multa i watch >> the ambassadorship. i know. >> small, manageable, you know what i mean. in the med terrainia it's not my problem. the call did not come, but it is

a beautiful place. some news on tech regulation out of washington. senators mark warner, josh holly are planning to introduce -- i can't believe you didn't watch afc. god all mighty and sort of just -- like that sort of bowing did you dvr it, at least hopefully you dvr'ed it. >> here it comes quid pro quo bipartisan legislation -- one is the president of the leader of the free world the other is a first-term congresswoman who is going to get primaried and probably not make it again. >> you're bowing to the president again? okay. >> today i -- i think he's legitimate president we haven't gotten your people to go that far yet, right because of the 3 million votes >> it's 6:04 in the morning. >> i didn't bring up trump i brought up aoc you didn't see her on "60 minutes". >> i missed that

that it's not jumping out at your iphone. would require big tech companies to disclose their value of user data the bill would force facebook, google and other major platforms to put a dollar amount on the personal data posted by their users. some estimates put that value between 5 and $20 each month >> we have deal news just crossing the wires right now el da row resorts agreed to merge with ceaser's. the combined company will be largest owner and operator and retain the ceaser's name upon completion of that name and ceaser's has been under activist pressure from carl icahn you're looking at is the stock there already up 14% just this morning. coming up, the company is on, president trump is set to meet with china's president xi at the end of the week we'll talk about what it could mean for your investments. here is a look at the biggest premarket winners and losers in the dow. we're back in two.

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welcome back to "squawk box" this morning a big week ahead for your money. here is what's on the agenda tomorrow, we get new home sales

and earnings coming from fedex wednesday, earnings from general mills and kb homes and durable goods. thursday, pending home sales and earnings from nike the big focus is on friday on president trump's meeting with president xi at the g-20 summit. check on the markets and how informsers can position their port polios ahethis week. good morning to you both >> good morning. >> i sort of reeled off a list of the things that are coming this week. do you care about any of them except for what's happening on friday in the grand scheme of the world? >> we're still just wrestling with how bad the economy will be versus how low interest rates can go low rates we know support equity prices i think if you were standing at the end of may, you could have argued that equities were at 10 to 15% discount given 2% on the ten-year, but half that discount

is gone. so, there's not a lot of juice left, even with the dovish comments from the fed. >> therefore you do what >> i think you hold steady, but i think the one opportunity is to go a little bit lower in market cap so the large caps have run fast. but mid caps and small caps are at a material discount to large caps in the u.s. >> broadly or go very -- >> i think you want to stay higher on quality just in case we get a curve steepener you don't want heavy debt company, so therefore a little higher quality but take advantage of the discounts and small cap. >> where are you >> yeah. good morning i do agree friday with the core pce number that's probably one of the key numbers that the fed is looking forward from now until july 31st. additionally even though fed said they're looking for the market expectation for inflation, the survey based measures might be of interest as well so five to ten-year expectation for inflation also comes in on

friday which could be something of interest. >> so that -- again, both of you are not really talking about the china issue. that doesn't really factor into the thinking >> well, it does obviously but i think in my mind this is not a bear hug moment. this is more of a shake gentleman's handshake and we see that they restart the negotiations, maybe talks but nothing comes out of it. >> do either of you think there's any positioning to be done one way or the other around this issue of iran is there any way to even handicap the situation >> look, the only thing you can do with respect to a concern about a big geopolitical risk is to go buy zero coupon bonds. but that's only if you have so much wealth that the only thing you need is diversify indication that's the only thing that's going to work if something really happens we could easily go to one and a half on a ten-year that's the only way you get there. >> in terms of how dovish we were sort of debating whether you keep powell in the place or

whether you should have had yellen in that role. what is your expectation in terms of how many times they cut this year? >> well, it was interesting if you listened to his comments, really focussing on the low inflation expectations, not as much on the trade piece because that way the path for a cut has been laid even if there is a benign resolution to the trade war. i think you'll see some dovishness that pce number is well below 2% all inflation metrics have come down about 50 bases points in the last year. i think you see some cuts but you might get a steepener out of that. >> just seems to me the only time the fed really wants to cut rates if there's an economic slow down. you think this fed led by powell wants to get out there if the data turns better, you know what, we're going to cut rates >> i think the fed put themselves in a corner with this forward guidance, you know you think of the kind of rate

cuts we have seen in the past. you can put them in two camps either the shallow rate cut trajectory, 1995, '9 8 or 2001, 2002, 2007, 2008 i think no matter what the fed does, this is a shallow rate cut. first of all -- >> why do you think forward guidance has put them in a box >> well, because they put the neutral rate from 275 to 250 think about in 2015 the fed embarked on this tightening cycle they had 3.5 as their forward-looking. >> so four years ago they were whole percentage point above where they are. >> absolutely. >> they completely changed their tune on that in a short period of time. >> correct i think the market has done the work with the fed with the ten year being done 125 bases points there's a financial ease in the markets and itself, but having said that, i think the insurance policy cut is here for the july meeting and then it's a toss up.

the fed looks at the incoming data, especially for the -- i know the fed is not data dependent on one particular number, but the nonpayroll number on july 5th is probably the key. >> let me ask you both a different question relates to what joe is talking -- news story he was talking about which is big tech. you were talking about big companies broadly. you want to go for smaller companies. will you touch any of the big tech right now so much of the holdings right now out there in the public specially on retail investors is still the fang stocks? >> i would rather have old tech, stuff with good profits and dividends than new tech, especially from a valuation perspective. >> cisco, oracle, those kinds of names? >> yeah. that's a safer bet. >> is that an argument in terms of what's going to happen in washington in terms of regulation >> no. it's just. more about good earnings growth, cash flow and dividends? >> are you in the same place some people think the fangs are vastly undervalued if washington doesn't do anything meaningful, you could

argue that these are screaming buys. >> yeah. well, i do like old tech but i do feel that when you look at china, they have one of the dependencies they have is on global tech supply chain, especially semis when you look at what this trade war may end up being, you know, i feel that, a, if the american doesn't want the u.s. companies to sell to china, that's bad for the american companies and secondly, the china wants to be self sustaining in some of these technologies you're gaining in competitor either way you look at it, the competition for the tech companies in the u.s. will be much more severe going forward >> okay. we'll leave the conversation there. thank you. >> thank you. >> nice to see you guys this morning. appreciate it. coming up a beloved childhood institution could be making a comeback. we'll tell you about the good news in toy land right after the break. and also, big movie, "toy story 4.

♪

welcome back fed exsaid yesterday that an operational error prevented a huawei package from being delivered to the united states china state-run global times said fedex is likely to be added to the government's unreliable entities list of foreign firms that harm the interest of chinese companies. fedex was already under scrutiny by china after an error led to huawei packages being misdirected last month

unbelievable really one package one package can do it? wow. >> fedex lost one of my packages, too. >> going to put them on your list >> have to start using dhl, yes. >> i mean, what do you do to the postal snfs that double secret, triple log rhythmic? >> the one from last month was different, right there was something a little more -- >> i just read it. coming out of china? there's like a lot of packages coming out of there, are there not? i think we can cut them some slack on one package, god. that's zero tolerance. they must be sick sigma. you remember that? >> no tolerance for error. >> i know. ge that was pretty funny trying to apply it to cnbc back in the day. remember it was like 15 years ago. >> before my time. >> no errors 7 million tries. try to get down to zero errors

with the news organization. >> no problem. no frob. japan's received shareholder approval to keep its ceo koji had recommended that share hold rs vote against his reappointment as ceo in april, they reported an annual loss and said they would not pay out bonuses to directors. last month they told the investment bank to improve its internal controls after a leak of internal information. he said he will take a pay cut in three months in response to that leak. the shares are shrugging it off. let's talk about toys r us it is making a comeback. former ceo is planning to launch a half dozen u.s. stores and ecommerce site hoping to do all this by the way in time for the holiday season new stores would be about a third of the size of the brand's big box stores that closed last year and also have more experiences like play areas key to getting kids in there they say they could minimize startup costs with consistent

inventory -- >> consignment. >> consistent but consignment model where manufacturers don't get paid until consumers buy the toys that would actually change the whole dynamic of the thing make them smaller. kids want to go there. >> the absence is felt out in our neck of the woods. new jersey the babies "r" us especially, maybe for me that's a little closer to home something you can go grab something quick. look, i love amazon, but it can't help when you need something in a pinch. >> you know, in new york they'll deliver it day of. >> that's still not good enough. >> day of is not good enough >> no. sometimes you need that sippy cup right now. >> kelly lives out in the land of grass and trees now she actually made the move. >> she made the move. >> did i tell you about the grill. we got a grill. >> wow >> whoa. >> yeah. >> not one of those little habachi, he has out on the fire hazard with the fake charcoal. you don't have anything. you have chinese takeout. >> we have chinese takeout.

>> we have that, too. >> you have a big, beautiful kitchen. we can make stuff in our kitchen, too. >> do we make stuff? >> we do occasionally. occasionally. >> you get a list to the people and what they should cook on any given day. >> the staff are you referring to the people as the staff >> that's nicer than saying the staff. or do you prefer staff i don't know i've never had a staff really. >> staff infection never had a staff. >> this is all sarcasm i know it's 6:23 in the morning. coming up when we return, a big weekend at the box office from "toy story 4. we have the numbers. we'll bring them to you from the u.s. and abroad. it's a big number right after the break. i got to go see this movie as we head to the break a look at friday's s&p winners and losers ♪

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♪ >> announcer: welcome back you're watching "squawk box," live from the nasdaq market site in times square. ♪ good morning positive green arrows again this morning for the major averages so far not big moves yet, but 31 on the dow. the s&p, which hit new high last week indicated up 3. the nasdaq indicated up about 22 points and election news out of turkey. turkey's opposition has won control in a re-run mayoral election that is handed a sharp rebuke to president erdogan. the previous opposition party victory's three months ago had been annulled after protests from the president's ak party

which claimed that there were voting irregularities. the opposition candidate beat the president's hand picked candidate by nearly 8,000 votes. the top three cities are now held in opposition. let's talk movie "toy story 4" taking the top spot the fourth movie in the beloved animated series earning $118 million in its debut in the u.s. we should say. we should say that fell short of the $150 million that analysts were expecting, but makes it the fourth highest open for an animated film of all time. that's amazing and the movie brought in an additional $120 million overseas it was so nice outside, at least on the east coast, that i think that -- >> finally. >> finally after monsoon season here. >> uh-huh. >> do you think if it opened a weekend sooner they would have done 150 million. >> kind of sort of on a rainy day, if this wasn't a block buster already >> maybe how about the average price of a gallon of gasoline fell by 11

cents over the past two weeks to bring the national average to 2.73 a gallon. >> okay. coming up when we return, fallout from president trump's new sanctions on iran. we'll talk about the impact on the price of oil with an analyst. helma will join us with what she has to say about all this. plus, here we go, folks, bitcoin hitting a 15-month high over the weekend. we will talk with wall street crypto king. >> joe kernen. >> joe is now on board to get thoughts on bitcoin's incredible 2019 rally stay tuned for that conversation and debate you're watching "squawk box" on e on, bcd lycn ♪ (osamah) cancer is... the ugliest disease mankind has ever faced.

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♪ welcome back to "squawk box. recapping the deal news just out this morning, casino operator el dorado resorts agreed to merge with ceaser's with a cash and stock deal works out to $8.6 billion the headline price tag but excludes debt because there's a lot of debt there they will retain the ceaser's name upon completion of the deal i think that makes sense ceaser is a bigger name than el dorado ceaser has been under activist pressure from carl icahn who was

awarded seats on ceaser's board earlier this year. >> what's the practical impact do you think of this >> not a big one. >> yeah. >> just more consolidation in the space that probably needs it. >> more beyond this you think? >> you're saying are there more -- there's not that many. some of the small guys will get together, but that was part of the issue. ceaser's needed something and that's what carl icahn was saying for a long time. >> he basically got what he wanted. >> he is the winner today. let's get a check on the broader markets ch u.s. we canty futures at this hour take a look across the s&p, dow and nasdaq, green we're still seeing although it's close. s&p up 3 points. dow implied higher than 30 the nasdaq by 22 pressure coming from the european session where they also started out stronger but that's been petering out. the impact across the treasury space. the ten year is over 10% but not my much. 2.037% 30 year just around 2 1/2. germany's 30 years almost negative but anyhow, president trump says

the u.s. will impose major additional sanctions against iran today let's get to eamon javers in washington with the very latest. do we know anything about the sanctions yet? >> we know that the president spent time other the weekend thinking about his iran strategy in the wake of calling off that air strike late last week the president now has to figure out what he wants from the region. in his interview chuck todd on nbc's meet the press, the president laid out his vision for what an iran deal would look like here's what he said. >> their inflation is through the roof they never had the highest in the world right now. worst than any place -- they're living not well. >> do you want to do a separate deal with iran or do you want to get everybody involves in the same deal? >> i don't care what kind of a deal it could be separate or it could be total. >> it's one on one talks you and the ayatollah or you and the president? >> here is what i want, anything that gets you to the result they

cannot have a nuclear weapon it's not about the straits lot of people covered that incorrectly. they cannot have a nuclear weapon they would use it. and they're not going to have a nuclear weapon. >> and meanwhile over the weekend the president did suggest that he wants to impose additional new sanctions on iran as early as today, not clear exactly what the administration is going to target given that american sanctions on iran have been fairly sweeping so far, but there may be some remaining sectors of their economy that can be targeted with new sanctions today and we'll wait for the white house to announce what that is later on this morning, guys. >> thanks. joining us to talk more about the tension and what they mean for the oil market is helima-croft it's interesting if you listen to the time line that was laid out with regard to the u.s. maybe responding to iran in the first place, it was all about, hey, we put in these sanctions on iran and ever since they've been targeting different assets across the region. so that's been going on since

mid april or so. >> right. >> what new sanctions do you expect now and will it not just cause iran's behavior to ratchet up further in response? >> that's the big concern. we had six tankers struck in the span of a month and major infrastructure pipeline hit, the hue this attacked sites in saudi arabia and restarted the nuclear program. so the question is if we impose additional sanctions are the iranians going to up their response or are they going to back down? the question is how much more is there to target? you can certainly target more individuals. you can certainly try to target more revolutionary guard cooperations you can be more stringent in enforcement. you can be very, very vigorous saying don't take the oil. telling countries not to take the gas. but they are already under very severe sanctions so the question is how much more can you do there are also reports that we may step up covert activities. that's interesting. >> we saw some of that over the weekends. >> those are what we'll probably

go to. you don't want to put boots on the ground, covert operation that type of escalation we can expect the issue is do the iranians back down in they show force when they're in a corner. >> one of the sort of analyses i saw about this is that the iranians want a higher oil price and one of the motivations is to cause the kinds of squirmishes may stop short of destroying their own economy but boost the international response >> the iranians have lost so many exports they are down 2 million barrels of exports from a year ago, 500,000 barrels at this point. it would have to be so high to offset that. of course they would like a higher oil price what they're trying to show to their rivals in the middle east, if we can't sell our oil, neither can you. >> so what is the international community supposed to do this is all being framed as

tensions between the u.s. and iran well, it wasn't our ships they blew out of the water. those were uae assets. one was a norwegian owned ship. >> was was a japanese ship japanese prime minister was in iran at the time one of the interesting interviews was hadley gamble's interview with brian hook. he said, look, it's not the role of the united states to be the only one to protect shipping lanes for crude going to asia. that's one of the question marks is are we going to start asking other countries to play a bigger role in the protection of sea lanes. >> if japan needs that oil -- >> china needs that oil. if singapore needs that oil are they going to play a role in the defense of their shipping lanes? >> do we want china policing the strait of hormuz and golf of hormon >> we have the blue water navy should the united states alone bare the financial costs of that that is coming into question. >> so we wait this announcement for possible sanctions which as you said we're 90% there

there's not a lot left to do maybe we get more covert actions and the president has said basically drawn a red line about their nuclear program. do you think that's something that's going to be acceptable? >> i think from the iranian standpoint they want to see significant concessions from our side in terms of peeling back the sanctions before they come to the negotiating table the iranian before have entered into negotiations but again we offered them things. if you think about the obama administration, we allowed them to retain the nuclear program or the parts of the nuclear program. you can keep your centrifuges, you can't spend the high level ones we made concessions to get them there. the question is will taking this hard line force them to yield or are they going to escalate in the interim. >> you think what, though? >> i expect long hot summer. i expect the iranians to try to push us as far as they can before they back down. >> "the new york times" story over the weekend said we made comments about iran's anti-kuwaited aircraft. >> they showed us.

>> they took that drone down. >> hey, we can take that drone down. >> $130 million drone we'll take out of the sky. >> they weren't sure they could shoot and hit a target that high this was an effort to see if we can do that. doesn't that embolden other actors to do the same thing? >> the iranians looked what happened in terms of the strike being called off and are questioning potential u.s. resolve. we do need to see are these sanctions significantly stepped up, what can be achieved through this covert action again, if your goal is to get oil prices lower this may not be the path to that. >> drones are the operative word there was a uss that had people on it. no kidding if they decide to do that -- >> oh, if they do that, if they basically or u.s. troops in iraq, i think that is a much more serious situation. >> that's what i mean, and they didn't. >> we have to see, yeah. they may be respecting certain red lines. >> that's when rubber meets the road, though that was trump's -- i thought the most incredible thing was

that trump told a confident that some of his inner circle are pushing for war and he thought it was -- he was dispairaging. i don't know if it was bolten. if you believe that story. >> is it pompeo. >> i don't know. if you believe the leaks as well but that's very telling. i thought -- i guess you can sign me up as some of the fatigued americans that are just like, enough over there. you know what i mean when he didn't do it, i'm not thinking, uh-oh, red line. i saw the journal that this is going to set us up for maybe a los of life of americans in future by not doing it now these counterfactual arguments are irritating for me. they don't know this will result in more american lives lost down the road than now. it criticize the restraint from when sit a piece of equipment the president heard 130 people

or whatever the collateral damage is and decides not to you can't win. i understand that. >> i think it's a reasonable question to ask tell me how this ends that is a -- >> how do we possibly know with iran how anything ever ends? they're bad actors >> so why if you're him do you want to telegraph the fact that you don't -- everybody in the world knows he doesn't want to get involved i think they believe him >> well because -- >> we continues to telegraph that. >> he let people know in syria i'm ready to press a button if i have to. he will press a button i guess he would accept some collateral damage, but i think it would take an escalation from here hopefully it doesn't come to that. >> the goal is if you want to make sure they never get another nuclear weapon, how do you do that >> he's doing a carrot stick with a thriving economy. >> if you could sit with him,

what would you advise him to do? >> outline what your goal is to ensure they don't have a nuclear weapon, you have to take it beyond -- you then have to offer them concessions at this point you look at -- he is saying i'm willing to sit down with you without preconditions. but if you look at the 12 demands we have outlined to the iranian government it's not simply you have no nuclear architecture you will not play any nasty role in the region. essentially totally change your behavior. >> are they backing down from that >> that is the question. what is the strategy are we willing to say, you know what, we're willing to allow you to have some type of regional activity we're not trying to change your regime, but we want to make sure you have no nuclear architecture in place what is the end goal your end goal was simply the nuclear weapon, then you may have to give up some of the other demands. >> i wonder. do you think the president needs to make more of a case to the

public who might be more skeptical about why it's going to be an overarching goal that the u.s. says to that country you can never have a nuclear program? >> i think that deep down we would like the theocracy of iran we want an arab spring type event. we have been waiting and waiting and waiting. but you think sooner or later the iranian people, they have had a taste of what the rest of the world has in the past, haven't they what keeps happening >> one thing we know about that -- >> why does it keep getting pushed off. >> that regime has been brutal in dealing with this they did have an arab springs in 2009 almost. hundreds of thousands of people in the streets and the security forces shut it down. i think one of the hopes that both of you -- almost like to bolton and obama they both had this view of the iranian population being young, more enlightened, more willing to make reproach mont with the west

it as hauls been this bet on the iranian population but they have a very brutal security force that can shut it down. >> it's tough. unfortunately we didn't get a lot of flowers thrown at us in iraq either. i'm not sure what finally happens. rumsfeld, come on in that's not exactly -- >> not quite. >> we can't -- you know, we can't transfer what we think culturally on different societies. i thought we learned that lesson we can't go in there and decide look we'll show you what democracy is like and you'll love it. it won't work in north korea or even china, right? wish it would. >> not going there for oil prices major story i think this summer. >> i'm just fascinated you slapped sanctions on. >> and tariffs. >> i thought you only slap tariffs. you can slap sanctions, tariffs. >> slap them. >> you can impose. slap is a better word. sounds better. >> thank you very much.

coming up, bitcoin hit $11,300 this weekend almost 11,000 again this morning, not quite it is up highest level since march of 22. we're not on break yet you have to do what you have to do we're going to talk with one of the street's crypto kings. that's kind of a moniker that gets thrown around a lot but, this guy is pretty good from susquehanna look at the shares of music streaming service spotify following early trading after ever core isi cut its rating to all the way to underperform. that's unusual "squawk box" coming right back woman: my reputation was trashed online.

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a bitcoin alert. the crypto currency rose above the $11,000 mark early this morning, hitting a more than 15-month high. it has pulled back some since those highs. it's up nearly 200% for the year. joining us now, bart smith head of digital assets susquehanna. welcome. let's just start with what the latest news buzz is is the introduction of libra. was that a positive for bitcoin? for me it was because it illustrated to me some of the actual benefits in innovation you see in bitcoin that was absent from libra, and it was sort of an enemy of my enemy what is this that makes bitcoin look good is that part of it, or is it just the possibility of mass adoption by corporate america? >> so i think it's clearly a

positive for bitcoin you know, i think that one point you want to think about libra, libra is not a crypto currency it's a digital token it's a digital token that we call a stable coin it's backed by government issued currency it's held in global custody banks and the transactions are validated by a bunch of corporations which include visa, mastercard, facebook, and a bunch of silicon valley vcs. it uses a blockchain to move assets across borders, and i think that that is exciting. i think it shows development in the space, but i do think there's two reasons why it is clearly a benefit for bitcoin. one is in my experience most of the time when people dig into bitcoin and really understand it, they tend to be more positive about it. when people are negative about bitcoin it tends to be ill

informed generally speaking, and so if 2 billion users in facebook, some percentage of them start to kind of look at libra and understand how it's different and similar from bitcoin, i think that that's a positive >> did you see the piece in the journal, there's a -- for domestic use it'd probably be more expensive than just regular banking. for international i guess it might be a little bit better the corporations and the people involved get all the float, number two i mean, i've seen it said like this, bart, that fiat currency is currency for government, libra is currency for corporations only bitcoin is currency for the people, for the people themselves i'm feeling like, you know, an evangelist almost. is that wrong? this looks like it's all about the money -- and i don't know. who made facebook -- who put facebook in charge of giving currency to the rest of the world, some social media site. why should they be the ones in a position to dictate how digital

currency works how anointed them? of all places to anoint, why facebook with their history? that'd be the last person i'd give the keys to >> right, well, again, there's two 2 billion users there. >> okay. >> there's a business model. right, they're trying to compete more with venmo. i would think this is more of a competition to venmo than it is to bitcoin. >> at least you said it's not a crypto currency. it's a digital currency. >> the price spike in bitcoin right now, i think there's a view somehow as you articulated that because people are going to be more interested or aware of libra that's going to somehow get them interested in bitcoin the one piece of this i'm not sure we all understand yet is facebook is going to come out with this wallet, and this wallet could go to 2 billion people or a lot of people who are going to ultimately use libra if they use libra at all it's not clear that this digital wallet is going to be used to

transfer bitcoin, and so if all thes libra, sure or use it as a token to simply to make these transactions it's not clear to me you're going to keep all your money stored in bitcoin and keep moving over into libra in this digital wallet because it's not clear the digital wallet will allow bitcoin in it. >> right, i agree 100% i don't think this rise from 9 to 11 is driven in large part by libra, right like there were three reasons why people were buying last week the first was that most of the people who trade bitcoin for profit trade on technicals and there was a lot of resistance area in the upper 9,000s that broke, and once that broke 9,000 and a psychological barrier of 10,000 it shot up. when the rallies in bitcoin happen during u.s. business hours, it's almost always led by the futures. the futures are trading $100 over last week, and when it got to 9,000 at the beginning of

last week, there was a lot of discussion about minors taking profit above $9,000 to fund their operations none of that had anything to do with libra oftentimes we see these headlines. we see the price of bitcoin move and we try to connect the dots where maybe they shouldn't be connected. >> are we overpriced now >> i was going to ask you, how do you price there's a way of looking at the entire network and people have come to 13, $14,000 prices this use coguy has like a 400,000 for bitcoin as an eventual target based on the size of the network as it grows. is this below fair value, above? i've finally conceded there's inherent value with the way it's set up if we can send a movie through thin air onto a phone using digital technology, why can't we figure out something that has a unit of work that is all that

currency does? it can be a real currency of value. >> we've been talking about this forever: the only distinction -- >> what is -- what is fair value, bart? >> you know, that's for the market to decide i think the interesting thing is now that the futures trade i do think the futures will prevent these parabolic moves. i don't think we go from 10 to 20 we could go from 10 to 13. >> okay. good bart smith, crypto king. i don't know, that gets thrown around. >> no, it's getting thrown your way. >> i'm a toddler one person said it's like watching a baby take its first step that's me. i've got to start somewhere. we have to get to the top of the hour we're going to head to friday's g20 meeting between the presidents of u.s. and china we'll talk to wesley clark we'll be right back.

the countdown is on. president trump set to meet with china's president xi at the end of the week. we'll get you ready for the g20 summit and what it could mean for your money. el dorado goes all in. the casino operator clinching a cash in stock deal for cesar's. >> did caesar live here?

>> no. >> i didn't think so. >> that story and more of your monday morning headlines straight ahead. questions and concerns about the meatless meat craze, how healthy is it, we'll debate that as the second hour of squawk box begins right now ♪ take it easy, take it easy >> announcer: live from the beating heart of business, new york this is "squawk box. good morning, welcome to "squawk box" right here on cnbc as the eagles play, along with joe cur rran, kelly evans is hanging out with us. u.s. equity futures two and a half hours ahead of the open this morning we do have green arrows here in the united states across the board. 25 points up the dow would be right about now. nasdaq looking to open 15 points higher s&p 500 looking to open a little more than two points higher. >> other than joe being a bitcoin believer, here's what's

making headlines this hour el dorado resort is buying caesars for $12 a share or $8.6 billion the combined company will keep the caesars name shares up nearly 15% premarket, el dorado is down 4%. senators mark warner and josh holly are planning to introduce bipartisan legislation that would require big tech companies to disclose the value of user data it would force facebook, google and other major platforms to put a dollar amount on the personal data posted by their users most of the faang stocks are frangsal fractionally higher. toy story 4 took the box office this week the movie brought in $118 million in its north american debut that was shy of the 150 million bucks analysts were expecting, but still medication it the fourth highest opening for an an mailed film of all time. the movie took in about the same

amount, $120 million overseas. >> is everybody back, sorkin is tom hanks? >> they're all there. >> tim allen's in it keanu reeves is in it this time. i don't know if he's been in it before. >> i don't think so. although i only saw the original one. >> some toy that does karate >> i don't know. i watched a little bit behind the scenes. >> is he just stoned all the time keanu reeves is he bill or dete. >> bill or ted or john wick. >> which one, i'm just asking. >> i'm told he was ted. >> i love all those people but my son's 17. he's not psyched to see it anymore. >> he's looking for someone to go with. >> sorkins. >> he going to be dripping on me with your sinus stuff? >> what we do is we have those great -- >> put the family between me and you and i'll come. >> at the movie theater we go to, we have those big seats that

go flat and the whole thing, like the flatbeds. >> yeah, yeah. you're recovering, but i don't want to be dripped on at the movie in my popcorn. i like buttered popcorn. >> oh, please. anyway, president trump set to meet with president xi at the g20 meeting. that meeting along with iran puts geopolitical concerns for the market front and center. kayla kay kayla tausche. >> that was a one week special, but it's great to see you guys. >> good to have you up here. >> go. >> this week is president trump's third g20, it has the potential to be the newsiest yet. there's no formal schedule that's been released but trump has said he'll have bilateral meetings with the japanese prime minister shinzo abe. russian president vladimir putin he said he may bring up election interferen

interferen interference an emissary of sorts with iran's supreme leader trump telling the news the iranians went to him and said what do we do with trump, can we make a deal? is there something that can be done that's what the prime minister told me. i said do you mind if i say that if i have to, he said not particularly they came to prime minister abe. he then called me. i said send the following message to the iranians, you can't have nuclear weapons other than that we can sit down and make a deal, end quote the economic world is focused on that meeting with president xi not to reach a trade deal but to usher in potentially a new period of productive negotiations that could portend a deal down the line he thinks the realistic outcome of the meeting would be to suspend the last tariff, for china to purchase more u.s. goods and a wholesale reopening of these talks the vice president we should note, a china hawk was supposed to give a speech today in washington that's been postponed, and administration officials says

the delay is due to productive conversations with china and hopes for progress at the g20. >> okay. kayla, thank you for that. for more on the g20, we want to welcome in wesley clark, retired four star army general and nato allied commander good morning to you. >> good morning. >> let's separate these things i want to talk iran first, and then we'll get into china. that will happen at the end of the week given the situation in iran, if you were advising president trump right now, you would tell him to do what >> i'd say steady on course, no military retaliations, talk about increased sanctions, but you got to really be open to these dialogues because we've kind of hit the upper limit. it's pretty clear you can't use military retaliation against iran they don't want to invite it, so it's a came on increasing leverage you've got the leverage --

>> you don't think they're trying to invite it? >> no, no. not by their -- not by their direct action. they want to put the blame on the united states, so if the united states, they want to goad the united states into action, but they don't want to escalate themselves to such an extent that they're accused of initiating it. >> there are people inside the administration who believe that last week's actions were an escalation. >> they were an escalation, but what they did is they caught the united states at the limit of what we can do at this point, so we've got prime minister abe, president abe, he's been over there. this is the time to take advantage of the opening and get some dialogue going with iran. you've got the leverage. now do the talking look, you're not going to get everything that secretary pompeo wants in his 12 points iran's still going to be iran. but it's important to dialogue we need our west european allies with us on this and in order to deal with china. this is a time to sort of look

at where we are in iran and hold right here and try to work the dialogue piece you could still give threats you could still do cyber john bolton can still be out there, but got to have a two-track approach not just pressure but also dialogue. >> president trump says that he is prepared to speak with them with no preconditions. is that appropriate? >> yeah, that's a good way to start it of course they know there are preconditions. not necessarily preconditions, but they know there's things they can't get out of, and they don't expect these negotiations to be easy, but what they want to do is get the united states sba into a position where we're talking, and then they can apply their leverage to it one thing i learned in my experience if you can avoid the killing and get the dim ldiplom talking and arguing you can make progress we've got leverage. >> general when you hear the president on twitter or on television effectively threaten iran, saying we will -- i don't

know if he used the phrase we'll blow them to smithereens but similar kinds of ideas, what is the benefit or danger of that kind of rhetoric >> well, it's become -- president trump's become typecast at this point, so he's in danger of sort of escalating a crisis and then coming in and trying to solve it thus far it hasn't worked that well, so we blew up the crisis with north korea through his rhetoric basically, but we don't have an agreement with north korea, so we're really talking tough with china, but really not that much has happened constructively with china. we're talking tough on iran. you can do this play two or three times but it eventually discredits itself. so he needs to put the diplomats to work, get the foundations in place. i'm hopeful that in beijing what we'll get is a pause in a tariff and we will, in fact, have an opening of constructive talks.

again, we're not going to get everything we want out of the chinese. they're not going to bet their restraint on assistance in chinese law. they don't want to do that the party is in control of everything in china. ultimately anyway. and so for us to insist on law is a little bit of a misunderstanding of what china's all about. what we can expect is relief on intellectual property, some greater privacy for u.s. firms here willing to invest, and maybe some restraints on chinese assistant to state owned industries competing in the international industries. >> fair enough general clark we always appreciate your time, your perspective and thank you for hanging out with us this morning. >> thank you. >> thank you. >> you bet. >> when we come back, a lot more on "squawk box" this morning and later the rise of meatless meat, beyond meat's public debut has been nothing short of

spectacul spectacular. late last week a consumer advocacy group sounded the alarm on harmful chemicals used in the mfrping process of these meatless meats how safe is meatless meat. we'll discuss that and more. stay tuned, you're watching squawk box on cnbc hey! i'm bill slowsky jr.,

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♪ welcome back to "squawk box" this morning u.s. futures were marginally higher the last time we checked. the s&p was only up about three points and it's now turned nearly negative. it's up a quarter point. dow is looking for a 15 point higher open. nasdaq about 11. we're watching bitcoin this morning. it soared above 11,000 this weekend. we're going to talking crypto in just a few minutes with the crypto king, the other one >> another one >> yes >> the next great crypto king on our list this morning. let's talk about president trump right now. he took some aim over the weekend at fed chair jay powell in an interview with "meet the press. he said he never threatened to demote powell, but he has the

power to do so if he wanted, which kind of felt like a threat here's what he had to say. >> what he's done is 50 billion a month in quantitative tightening that's ridiculous. he's raised interest rates too fast. >> are you worried he's going to hurt your re-election. >> >> i think the economy's so strong we're going to bull through it, but i'm not happy with his actions, no i don't think he's done a good job. i think this, if he didn't raise rates, obama had very low rates, so obama was playing with funny money, i wasn't. i'm playing with the real stuff. >> president trump said he wasn't happy with powell's actions and doesn't think he's done a good job. do you think he's going to really end up demoting him what do you think? >> i mean, good luck trying to game out anything that happens >> if he wins a second term. >> you see now the jockeys by everybody to be the fed chair, you see cash car ree calling for a half point rate cut. i'm not saying they wouldn't have done so otherwise, but it comes with the added possibility you might be the guy if the president's serious about this -- >> it all of a sudden becomes

political. >> even if it's not political, it basically is a fascinating way for him to get his point across in that room by simply opening up the possibility that one of the other people in that room could have that job maybe >> shocked that there's political going on in casablanca >> we've always tried to at least -- i don't know if you think it's pretend, but that the fed -- >> it is pretend, you know that. you know that hwc until the day we lost him about greenspan. >> totally >> and tried to -- you know, it's just -- >> the question is whether doing it this publicly politicizes -- look, the reason why we've had these questions for the last several years, it's been politicizing it in a public way. >> it doesn't help that it looks like all that grousing a year ago was absolutely well-founded by trump and once again i'm not saying he knew everything and is a genius and whether you think it's out of the mouths of babes or how it works, there's a lot of smart

people that think that december was a mistake and he shouldn't have done it and listened to trump. that's z scary for you. i know. >> maybe he should have just stuck with the last fed chair given what's going on. >> it's interesting he says obama got a good one. >> and he's saying he had funny money to work with i want my funny money. none of us want funny money dictating -- >> exactly if we could just get more bitcoin, we wouldn't worry about the fed and central banks. that's the whole problem. >> this is an unbelievable transformation that's the whole problem, these central bankers, we neat to decentralize. >> now you're just playing along. >> andrew, i don't know. i think joe is going to own bitcoin by the end of the week. >> decentralized, that's what we theed. >> he said these are my people. >> they're my people they are coming up, we're going to talk deals and the markets and later the ceo -- now i love bitcoin

anyway, ceo of circle joins us to discuss the crypto currency market and what's driving the rally.

. 2019 shaping up to be a year of deals for a check on some of the volume of some of the mid sized deals and what they mean to the flow of m&a, we want to bring in robert brown ceo for the americas of lincoln international advisory, rob. thank you for joining us right now. we've been talking about this big deal this morning, i don't know if you saw the caesars transaction this morning i don't know if you put that in the category of big deals or a mid-sized deal for you >> i'd probably say that's a larger deal. >> that's in the larger deal the thing you think we're not focused enough on are these smaller transactions >> yeah, i think if you -- i think the economy as a whole is really driven by the middle market and clearly if you look at volume of transactions, the vast majority of the volumes of

transactions is under a billion dollars. what we refer to as the middle market >> and so to the extent that we believe the m&a market is a proxy or a indicator of confidence in the marketplace, some people think that m&a typically is even more representative of confidence than the actual stock market given how confident a ceo feels in the corner office about their own business, you think that we actually have a good ways to run here the question of course is is it a forward looking indicator or a back ward looking indicator? >> i think you're dpaexactly ri. in order to go out and buy a company for a ceo you have to have a good degree of optimism about the future i do think we have a fair amount of runway. we have a situation right now where if you look at the amount of money that is stacked into the coffers of corporate america, driven not only by growth in the economy but by the tax cuts when you cut corporate taxes by a third there's lots of cash for

ceos to spend, and then you layer the amount of drink powder sitting in the buyout funds in the private equity world, we have a situation right now where the demand to acquire high quality companies far outstrips the supply of those companies, which is why you're seeing a somewhat frothy m&a market in terms of valuations. >> i was going to ask if you're seeing a lot of stupid deals being done larry was talking about one of the biggest risks to the economy from low, low interestrates is this zombiefication where firms are kept alive that shouldn't be kept alive or deals are getting done that shouldn't be getting done do you see stuff like that happening today? >> i don't know. it's hard to predict the stupid deals when they happen, but i think when money is as available and as cheap as it is, you do tend to see people stretching beyond their comfort zones when you see companies do that or investors do that, often those deals don't work out as

planned. >> stretching in what way? >> stretching in terms of the value they're going to pay stretching in terms of how quickly they will move, stretching in terms of buying things that are outside of their existing core competencies, adding another leg to the stool so to speak. >> i know it's probably tough for you to give examples of that but maybe you can compare this with what you think this is analogous to in terms of previous cycles? >> i think the cycle is a little bit different in that particularly in the middle market if you look at a lot of the capital that is funding deals in the middle market, it's private capital. it's not public capital. that capital is going to be available in good economies and bad economies. it's not dependent on raising public equity or public debts. even if there's a hiccup in the economy, even if we move into a cyclical downturn, that capital's not going away i think the data shows that as an economy picks up, that capital floods back into the market pretty quickly, so i do think unlike in past markets

where you've seen banks and regulated entities funding a lot of these deals, a lot of the transactions and a lot of the debt is funded from private entries where the capital is committed and they're unregulated. if the economy holds up and there's stability, you know, geopolitically, the m&a market we're in has some legs to it. >> isn't the great irony of all of this that towards the end of a cycle, this is not when you want -- when you feel confident you should not be doing a deal traditionally, it should be when everybody is nervous, they're anxious. they don't know what's about to happen that's usually the best time to do a transaction, and nobody ever does. >> right there is a bit of a herd mentality when times are good and deals are getting done people feel like well now's the time to do them. when things pull back and investors pull their horns in. >> bingo. >> people say well, they're not doing deals. you're right, a lot of money has been made from a contrary yan view of the m&a markets to put money to work when others are

not putting it to work. >> so you think we're frothy, are we bubbly? >> you know, it's tough to tell. we are definitely at very high valuations for companies but as i said you have this capital imbalance right now that's not going away. the demand to put money to work in the m&a market is so much greater than the supply, and then i think if you layer on top of that, there are a couple of clouds on the horizon. >> yeah. >> the trade issues that we have right now with china, that is starting to affect the deal economy, and particularly in the industrial world and the consumer world, that are much more reliant on imports and exports. if a trade deal gets cut with china in the next six months or before the election cycle, and i think there seems to be a belief in the market that that's going to happen. >> right. >> i think that could actually boost the market we're in today. and i think the other uncertainty that's out there globally is brexit, so i think for the next six months the brits and the europeans work out a soft landing for brexit, i

think you have another pop in the market >> yeah. too much money chasing this stuff. rob, thanks very much for joining us >> thank you. coming up, will president trump and president xi strike a trade deal when they meet in japan this week like he was just saying we'll discuss the best and worst outcomes with senator rick scott. plus, it's officially grilling season, and if you're thinking of getting your grill game on with meatless meat, if it's meatless, you're not alone. beyond meat is one of the hottest ipos of the year some say this is just the beginning after it's what, sex tup led, we'll talk about growth prospects ahead. my ideal cloud? it has to work like air traffic control. it's gotta let new data integrate with data from our existing systems. ♪ ♪ be able to pull from reservation platforms built 20 years ago.

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♪ still to come on "squawk box," betting on bitcoin, the ceo of circle joins us to discuss the rally in the crypto currency that interview is straight ahead. plus, ready, set, meet, president trump andpresident x will be meeting later this week at the g20 in japan. we'll discuss the possible outcome with world bank president. and woody and buzz lightyear do

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welcome back to "squawk box" this morning it is a very big week for bitcoin, the crypto currency rising above the $11,000 mark over the weekend hitting a more than 15% -- or 15-month high it has since pulled back it's now under 11,000, 10805 joining us to discuss what is driving this, jeremy allaire jeremy got on this band wagon a long time ago, and boy was he early. jeremy, explain what has happened you think over the last, let's call it three months and then of course the last two or three weeks. >> sure, thanks for having me on you know, back in december when the market really bottomed, we started to see long-term kind of conviction investors begin to build significant positions in

the kind of core digital assets, and that kind of gradually unfolded into, you know, q2 where people kind of declared the crypto spring arriving, and really, i think what was happening was the sort of fundamentals of the technology have been advancing really, really rapidly there's a broader understanding of crypto assets as an asset class. people could see that there were more retail and institutional platforms and regulatory frameworks coming into place, and then, you know, ultimately anticipation that the sort of next generation blockchains including what we heard about last week with libra association, you know, kind of really as indicators of what is ultimately going to be a massive mainstream phenomenon touching billions of people. >> explain this to me, until and unless you tell me that there's going to be a true chain of custody and a true almost insurance program on bitcoin, not on leb ibra or these other

currencies, it is unclear to me how and when bitcoin backs this sort of universal adoption and i look at libra and i get the idea of all of these electronic wallets that will get created by anybody who's got a facebook account i get that, but if that wallet doesn't allow me to keep bitcoin or other like currencies in it, i don't really get this sort of mass adoption idea from, and i'm not suggesting i'm a complete skeptic, i actually think bitcoin's a fascinating and very interesting phenomena, and may very well take over eventually, but i don't see what you're seeing at this moment. >> you haveto really differentiate between a couple of things, you know. there are many different types of, you know, digital assets and crypto currencies. you have sort of these stable coins, which libra is an example of, u.s. dollar coin, which circle and coin base issue is a very -- another very prominent

stable coin instead of a basket of currencies, it's a u.s. dollar coin. you have -- and then you have, you know, non-sovereign digital currencies and there are quite a few, and obviously the kind of dominant one is bitcoin. and i think our view is that, you know, ultimately end users, individuals, institutions are going to have, you know, kind of crypto finance accounts where they're able to hold lots of these types of digital assets and they're going to be able to send and receive all of them it's not going to be a winner takes all model. for, you know, sort of everyday payments that you need to denominate in, you know, your salary, your salaried currency or where you pay your taxes, we think that fiat or government issued money based crypto currencies are going to grow in popularity governments are going to figure out ways to regulate the issuers of those, which is already happening, but at the same time, you know, the bitcoin thesis is very much that we are going to

see continued growth in non-sovereign money. >> right. >> and non-sovereign money is going to become more important, not less important, and that more people around the world are going to see the value of a censorship resistant, highly secure digital asset such as bitcoin. >> what do you make of what seems to be a correlation, at least this time around but not typically, between the price of bitcoin and gold in terms of how much it's risen recently >> well, i think, you know, clearly the kind of bitcoin economic philosophy, which is the sort of austrian economic philosophy, the scare asset with a very predictable supply has always been something that seems very well-aligned with people who are interested in kind of sound money approaches to assets and so as a safe haven asset, as a hedge asset, as a kind of global macro asset, it has a lot of celerities and there--

similarities >> just walk us through the future if you will, take me ten years out. i get a salary i get it in u.s. dollars i assume it still comes into a regular bank i don't know i'm going to take that i'm going to move some of that into a circle account or coin base account or my new facebook wallet or whatnot, and then the piece of this that i don't get is i'm going to put some of that in bitcoin as an investment, as an investment like a commodity like in gold or i'm going to leave it there because that's being to be more stable? i assume that's going to be less stable than what i'm going to use for transactions using a libra or a -- this is what i'm trying to understand, sort of the use case, how it actually would work >> sure, i mean, i think our view is that these digital tokens, these crypto assets are going to begin to proliferate every type of financial

instrument so you're going to have the sort of native digital assets like bitcoin that are sort of commodities that you may invest in if you want to invest and get exposure to chommodities you're also going to have stable coins. our view is similar to the libra view we think over the next three to five years that new global digital current units that are baskets of sovereign money and potentially non-sovereign money will become preferred for individuals around the world to transact with each other rather than individual fiat currencies. so in that ten-year time frame we think global currencies will be established they'll be digital currency based. they'll be based on a trade weighted, gdp adjusted kind of balance of weights, and that will be how you transact every day, how you get your salary, how you pay for things with everyone everywhere, and finally there are going to be a lot of digital assets that really are -- they represent some type of investment contract it could be a loan, a mortgage, the equivalent of equity in a company, traditional securities,

any type of financial contract will get implemented as a digital asset, and those will be tradeable in these capital markets. >> jeremy, someone who's pretty smart last week told me that this is going to poke the -- this is going to wake the sleeping giant of regulation from governments around the world, and you already saw the reaction to libra from french finance ministers and bank of england and mark carney. we're going to subject this to the highest standard of regulation this would be out of the question that libra becomes a sovereign currency maxine waters. money is political, obviously, and i'm reading from hayek and others that government gets its power from a monopoly on both violence and money, and they're going to give up that power very, very begrudgingly, and now with libra it's so much more mainstream

that you may be really waking up the regulators that's why i can see this almost as a negative at some point. >> yeah, i mean, i think this is -- you know, in many ways a massive inflection point, including a wake-up call as you say. >> not in a good way necessarily. >> well, i think ultimately it because at the end of the day, the this infrastructure, blockchain infrastructure, public layers of infrastructure on the internet are a major new breakthrough in how we can operationalize and organize our societies and economies, and we need governments to collaborate with technical innovators and industry to figure it out, so it's not a us versus them. it's a let's figure it out at the enof td of the day, yes, governments care about protecting their about to have a treasury or collect taxes, but they also care about things like having a stable economy, participating in the global economy, you know, returning capital as effectively as

possible to productive use by individuals and businesses, and they certainly care about protecting people from crime and from fraud, and so these fundamental principles can be applied, whether you're talking about the legacy banking system, the banking system of 150 years ago, or this new kind of digital currency world that we're entering into. it's got to be a collaboration these problems need to be solved with e spent six years working with regulators at circle and i think now we're going to see an increase in that that's not just going to be facebook that's going to be a lot of companies trying to figure this out. >> jeremy, you say you're a crypto king or god, small g, what is the status of a crypto god versus a crypto king who outranks whom? do you know that hierarchy >> i don't know that there's really a hierarchy in this realm. remember, we're all decentralized. >> is the -- is a thousand th of

a bitcoin named yet? someone is suggesting the name the kernen as a 1000th of a bitcoin. would you be down with that or not? >> i think you should, you know, submit a request to github where the code's managed. >> i'd like to see -- >> i want the sorkin to be 1/10 thousand of a bitcoin. i'd like to be one log higher, jeremy >> you can get there. >> do you have any sway? >> have you met the dude maybe not. >> no, i don't know who satoshi is. >> you think it's ylan, right? >> i don't think it's elon at all. >> it's a group. >> it's not you, is it >> it might be me. see, i don't want to give that away. coming up, meatless meat, what the hell is that.

it makes no sense to me. it's like jumbo shrimp meatless meat. just that should tell you right there to short this. just kidding rapid growth pushing up the stock up since its debut and now the company is ready to expand, details after the break. >> here are the futures at this hour we're up about 22.

♪ feels like the first time, feels like the very first time ♪ welcome back to "squawk box," beyond meat the top performing ipo of the year, and now it is rolling out a new product. ground beef, aditi roy joins us this morning she has the details about -- joe's doing a little bit of, you know, a little wiggle, a little anxious. so tell us about this. >> well, in the coming days, andrew, beyond meat's latest product plant based ground meat will be hitting grocery store shelves marking the company's rapid growth you'll be able to find it at safew safeway, target, walmart, sprouts and a whole lot more beyond meat's products are in 30,000 grocery stores, restaurants, hotels and universities around the world. its q1 revenues were actually about equally split between grocery and restaurant sales and the company keeps growing.

beyond meat guided it with more than double its full-year revenue this year over last. the company's investing in this growth by spending on r&d, marketing and expanding supply it's resulting in widening net losses here's why they're doing it. last year beyond meat made up about 2% of the growing u.s. alternative meat market, according to euro monitor, which means there's a lot of unmarked territory in this space and a lot of competition for it with tyson foods, purdue and impossible foods launching their own plant based products this year investors are still betting on beyond with shares up more than 500% since its ipo joe, i know you think it's kind of an ok psy moron to call it meatless meat. >> you know what, what was bitcoin 2009, it's 2019 i'm thinking it might be something give me like ten years and i'll be eating all meatless meat i guess. i have a question, though.

>> sure. >> if i'm a vegan, let's say i should choose to follow andrew and become -- >> i'm not a vegan. >> oh, you're not a vegan. >> are you a vegetarian? >> no, jonas makes up this phoniness kind of conspiracy >> i'm not saying it is a conspiracy >> among people who -- >> i was giving you the benefit -- your carbon footprint, i know you think about that a lot >> if you're a vegan -- >> that might be appeal to me. can i have a meatless beyond meat burger? >> it still counts, yes, it still counts being vegan interesting because these companies, i know impossible and beyond meat, they are catering to people who are meat lovers. they're right next to the -- >> but you can qualify as a vegan? i thought they added -- don't they add some kind of grease or something? i don't -- to get that consistency and taste, i thought they added something back to --

>> heem? >> impossible foods adds the heem molecule which satisfies our meat cravings. that's interesting i don't know that's -- >> i don't think you're a vegan if you have that heem stuff, are you? >> that's true that's a good question that's probably beyond my pay scale right now, very scientific question we'll have to get back to you on that. >> beyond meat doesn't use the heem. >> beyond meat does not use the heem molecule. >> are they pulled from the ground gently, hopefully they're not cut, the cabbage and -- thank you, aditi >> thank you. >> let's bring in r.j., consu r consumer equity strategist you must have had a bunch of these if you're going to talk expertly i hear the sausage might be okay other than that, does it -- do

you qualify as a vegan if you eat this stuff >> yeah, i don't know the definition >> you're an analyst. >> not my territory. as a consumer, as a nonvegan, i'm the target audience, i guess, for both beyond meat and -- >> do you like it? >> it does taste like meat there is a lot of curiosity about do these taste like meat that's driving the consumer growth now. >> the health -- the interesting thing to me, it is one thing for people to go, hey, there is something on the market that tastes good that is not meat, what happens when they look at the nutritional profiles and say wait a minute, a ton of carbs, more calories, you saw tyson launch the hybrid thing, some meat but less and with other stuff mixed into it. as people get more educated about this, you think still a choice they're going to want to make >> that's the question we're asking, how sustainable is this. i think you're right there is going to be a lot of people who try it and realize maybe this isn't the greatest

substitute for meat products go back to the original. i think this will find an audience vegans or other consumers, i think they will adopt this i think there will be a place for it i don't think it will be a fad as a curiosity factor slows, i think we'll see consumer adoption slow as well. >> the proliferation of competitors. so beyond meat at 152. here's my question how long can it stay up there before it becomes totally boring and commoditized tyson coming out with their offerings. nestle has something in the works and impossible is obviously out there as well. they're not going to have this market to themselves for long, are they >> you're right. not the big guys getting into it, though, the traditional cpg players getting into the space now, revitalizing brands they had in the past or coming out with new products. i think interesting to see, i think this thing probably stays elevated through the lockup period on october. and then as the new products come to market, later this year, early next year, we might see

more competition one of the things we're hearing from restaurant customers is they can't keep up the suppliers on this side, whether beyond, impossible, can't keep up with demand now. >> it is more health r.j., it is more expensive, right? >> it is, it is. >> but the idea that you have a mass migration because of the carbon footprints and things like that, that -- i don't necessarily see us -- people not flying, not driving, and if you look at the biggest concerns on any polls for voters, it is not -- it is pretty far down worrying about a carbon footprint. is it lower in cholesterol is there a good reason to do this as far as being more healthy or not if not, i can't see that causing an entire move of where everyone says, geez -- i like cows too, i hear they're sweet animals and stuff. i'm not sure -- i don't think about it a lot

i got three dogs i love animals is that going to be enough to make this permanent? >> i mean, i think there is certainly an audience for it i think that certainly -- >> based on what >> based on what -- i think there is -- what we have seen is a movement toward very specific diets. i think either that vegan or vegetarian or, you know, just trying to stay way from red meat, there is an audience trying to do that. >> do you do that? you say, oh, we got to cut down on red meat. >> that's all -- for me, i think it is relative i have no problem with any of that stuff. >> i think there is an audience for that group and, you know it not for everybody. there are groups we talked who tried it, aren't going to go back to it there are some groups who tested it and, hey, i like it, i'll continue to have this in my diet there is an audience i don't think it is a fad. i think the adoption rate we have seen coming out of the gates of the ipo, that's probably not sustainable. >> i think the cows on the chick-fil-a ads could be -- remember how the verizon guy went to sprint

those cows eat more chicken. i think they may be the beyond meat spokespeople. >> you should be the spokespeople the rate you're going, you'll be the spokesperson for beyond meat. >> in ten years. >> ten years from now. there is a learning curve for me it is very slow, andrew. you'll see it will happen to you some day it will happen to you. it is called wisdom. r.j., thank you. appreciate it. >> coming up, we'll discuss iran, g-20 meeting at the end of the week, the trade talks with china and much, much more with senator rick scott he'll join us right after the break. check out futures this hour, which are struggling to stay positive a moment ago. the s&p hanging on to a 1 1/2 gain we'll be right back.

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how much is your data worth? why a bipartisan group of senators want to force social media companies to disclose how they monetize your information >> trade tensions in the global economy. world bank president david malpass joins us to talk about the biggest risks to growth and the fallout from president trump's tariffs. the final week of the year's first half we'll discuss the market outlook for the third and fourth

quarters especially in some under the radar sectors as the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york, this is "squawk box. good morning welcome back to "squawk box" here on cnbc, live from the nasdaq market site in times square i'm joe kernen with andrew ross sorkin, not a vegan or a vegetarian bit my head off, which would be meat he would not be. kelly evans is here as well. becky is off today enjoying it? >> i was vegan for a few years i was. >> is that when you went off twitter? kind of the same -- >> no. >> you're still off, aren't you? >> i am. >> but you're happy. >> i'm this close to getting back on facebook, i'll tell you. >> facebook? >> which of all the ones i

never -- i know. it is a long story, but i try to get my son in the fourth of july parade and everything is on facebook, every person, every contact point -- >> our guest host this hour, a sitting u.s. senator, florida senator rick scott, great to have you watching the senate in action, what else have you got to do might as well come here. >> there is good things happening. >> helping the country >> we're getting some -- >> this millennium >> we're getting some judges confirmed. >> okay. >> that's important. >> you're right. i take it back i take it back the futures right now are indicated up about 34 points on the dow. nasdaq indicated up 20 or so the s&p indicated up 2.25. this is the populist thing you look at the polls, the house does worse than the senate, but we're frustrated with the entire operation. >> you should be it is completely dysfunctional i've been up there six months, people don't talk to each other.

>> i saw the kavanaugh hearings, that made me feel good about the senate. >> not at all. >> go ahead. >> hurry up. hurry up. >> we have headlines >> here comes the censor like the ccp here come the censors. >> here are the stories that investors will be talking about this morning president trump going after his fed chief, jay powell, once again. he did it over the weekend in an interview with nbc's "meet the press. the president said he never threatened to demote powell but said he has the power to do so if he wanted you can figure out whether you take that as a threat. here's what he had to say. >> what he's done is 50 billion a month in quantitative tightening that's ridiculous. what he's done is -- he raised interest rates too fast. >> you worry about re-election >> i think the economy is so strong, we'll bull through it. but i'm not happy with his actions, no. i don't think he's done a good job. i think this -- if he didn't raise rates, obama had very low

rates. obama was playing with funny money. i wasn't i'm playing with the real stuff. >> president trump said he wasn't happy with powell's actions and doesn't think he's done a good job. i have to say, i thought president trump did a good job in that interview. separately, two u.s. senators planning today -- what what is that >> the alternate universe where joe embraces bitcoin and andrew thinks trump did a great job >> can we roll the videotape, please what did you just say? what did you just say? >> i said i thought he, the president, did very well in that interview. >> trump >> the president. >> you don't usually call the president trump. >> i was making a comment that i thought his -- i thought he did well in that interview. >> don't suck up to scott because he's here. >> i'm not >> okay. >> just being an honest broker objective honest broker. >> aren't you surprised interest rates are as low as they are for so long with $22 trillion worth of debt? >> i am and for a very long

time, the president was upset about that and that's why he got rid of the last fed chair. and that's why it is surprising that he's now in this situation. let's talk about that in a second hang tight two other stories real quick two u.s. senators planning today to introduce bipartisan legislation that would require big tech companies to disclose the value of user data i want to talk to you about this one as well. the bill from mark warner and republican senator josh holly would face fork, google, other major platforms to put a dollar amount on the personal data used by their users big deal this morning, eldorado resort buying caesars, cash and stock. $8.6 billion the total number, the combined company will keep the caesars name and create one of the largest gaming companies in the country in a statement this morning, the big winner of today's outcome, carl icahn saying, while i criticize the caesars board when i took a major position several

months ago, i would now like to do something that i rarely do, which is praise a board of directors for acting responsibly. and decisively in negotiating and approving this transformational transaction he, of course, the activist behind pushing them to do this very deal. >> that's a third surreal thing that happened so far world leaders including president trump gearing up for the g-20 summit in japan and could be a make or break gath gathering for the u.s. when it comes to trade kayla tausche has a look ahead kayla? >> president trump begins in osaka, japan, on thursday. mr. trump will meet with the host country leader prime minister shinzo abe. and he's also teased formal bilaterals with vladimir putin an confirmed an extended meeting with china's xi jinping. trade and middle east tensions are at the top of the agenda this week. mr. trump told nbc's chuck todd that this is his message to

tehran >> look, you can't have nuclear weapons. and if you want to talk about it, good otherwise, you can live in a shattered economy for a long time to come >> the meeting with chinia's president xi jinping could usher in a new period of productive talks between washington and beijing. derrick scissors says the reopening of talks could be accompanied by a suspension of the last u.s. tariff round and a new purchase of u.s. goods by china. the trump administration has been send something mixed messaged on china. the commerce department black listed other firms on friday, even as the president delivered a hawkish china speech said for today and administration official there citing hopes for progress at the g-20 this week, joe. >> all right, kayla, thank you stay tuned got some great guests coming up here rising trade barriers, sharper than expected slowdowns and economies paved the way for the world bank to reduce the forecast over the year

joining us is david malpass, friend of the show, the brains behind the operation as his wife adele that is a good friend and she -- is she in ifb right now >> be calm. >> be calm you were -- i would say it is fair to say kind of seen as a disrupter when you came to the world bank and your name was bandied about. do you feel like you've -- you're cleaning up a bit of a mess or you had some good stuff to start with and it is moving forward in a positive way? >> i -- i think it is moving forward in a positive way. but because there is a focus there is a purpose to it, which, for me, is to have individual countries do better than they have been doing. if you think about the world, lots of the news every day is on deals in the u.s., it is on growth in the u.s. and europe and japan.

but for the reality of billions of people, hundreds of billion -- billions of people, excuse me, is what their country is doing that day. so that's kenya, how do you get fertilizer to grow crops that's south africa, how do you get electricity when there is a brownout and so on down? in that regard, the bank can have a good impact i'm helping by helping it focus on those good outcomes >> do you feel like at this point for lack of a better term, are we getting the bank for a buck that we deserve and i can't imagine every under developed region of the world is ready for just a private sector partnership. there still must be places that just absolutely need help just with medicine, food, shelter, water, whatever. >> the world bank does some of both there is a praft secretaivate sm

that tries to invest in the most fragile state there is a private sector partner also it tries to identify changes in the climate that can make for a better private sector so there is a full recognition that growth and profit value added has to come from some kind of private sector activity but then for -- in a lot of cases, the transfers still go to the governments. now the question is what are you -- the issue is to try to get the governments to move as quickly as possible toward liberalizing markets, toward allowing people to have some freedom of pricing, of the products they decide to produce. and also the type of jobs that they can get, meaning what kind of technical training is available or can they aspire to? >> david, you're a free market guy. where are you on the friction that maybe is sort of -- sort of

bringing it upon ourselves in global trade with tariffs. is it worth it for china are you behind that policy that the trump administration is following? >> well, i worked on china quite a bit. i don't work on it now in the sense of tariffs, but i would say, you know, china was moving in the '90s and in the 2000s toward market policies, toward liberalized pricing. i was there, i went off in the '90s they and they were liberalizing the pricing in one sector after another with huge economic gains that brought, you know, china lifted 850 million people out of poverty, which is hugely helpful to the rest of the world so that was a good trend as we stand now, there are parts of the economy that are state dominated, many parts. that have subsidies and so as they could compete fairly, that

helps the rest of the world. can i make one other point, joe, that when people talk a lot about international trade or tariffs, to -- for most countries, the internal trade, the commerce they have between businesses, between one town and another, is even more important than their international trade so i would like to see a lot of focus on how do you allow businesses to exchange goods and to complete a contract that oftentimes is the critical thing in getting more growth >> kelly was just showing me where negative interest rates are around the world what is happening? and you could have been on the fed. you could have been on a fed head at some point can you tell us -- >> still could be. >> still could be. >> what -- where are we? what's going on? >> one thing going on is prices are pretty stable around the world. and inflation is pretty low. which invites investment >> can you tell us why

is it innovation is it savings? is it demographics >> no, i do have strong views on that, that inflation usually comes from too much money. and so in the '70s, remember what the u.s. was doing, was spending money both on -- in the '60s on guns and butter, on military and on social programs at the same time and so that was not a helpful, workable strategy. >> and it is different today it is? with 22 trillion and with central banks and qe infinity and these low rates? it seems like we ought to -- >> deficits. >> yeah. that sounds like it is ripe for inflation. why are we here? >> i want to go to developing countries. a lot of them have made remarkable strides in stabilizing their own situation and bringing inflation down. and that's the building block for more investment. and so i think we can focus on that from the -- from central

banks doing good jobs, you have the chance to create or to create an environment that allows a lot of growth that's what we're working on in egypt or aspire to in pakistan where they had a big problem with devaluations, with weakness of currency and with high inflation. if you can break that spiral, you can get a better life. india, think about that, over a billion people that are operating with an actual currency that functions and that is dependable, somewhat dependable for the people. those are big achievements. >> so you're the most important thing for the entire globe is growth are you optimistic that we're in a good growth environment? we have things set up well >> no, i'm optimistic about people and about if there are good policies, you can get ahead, that is -- that i think is true, but global growth has

slowed we lowered our forecast to 2.6% in early in june and then in particular europe has slowed quite substantially and so from the standpoint of developing countries, that has a negative impact because they're physically many of them are close to europe. and also investment in developing countries has slowed, which is a problem for the future. >> they're playing us out. one world bank sort of question. bitcoin, so many of these developed countries or developing countries, that's where people using bitcoin but there is also a question of whether governments ultimately will clamp down on this. what do you think is going to happen >> also, they're using mobile banking and that's been a liberating factor for a lot of people and it depends on the different systems and different countries. if the governments alou s s alo can get a lot of financial inclusion. >> what your long-term handicapping of this one thing that countries had a

monopoly on is currency. i don't know if they have want to give that up? >> i don't know if bitcoin or block chain is as important as a liberalization of an interm market that allows people to hold money of real value >> david malpass, thank you. >> yeah. >> appreciate it. more coming up on "squawk box" this morning. we're going to be talking with our guest host this morning, florida senator rick scott about how taxes have turned into a catalyst for migration to florida. but are president trump's tax policies hitting americans unfairly based on where they live we'll discuss that and so much more stay tuned u' wchg quk x" right here on cnbc is your daily commute. is you should be mad at people who forget they're in public. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick and simple so you can strike when the time is right.

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new tax rules on state and local deductions affected 11 million americans last year. and now -- >> we can all raise our hands. >> now robert frank joins us now with more on the real estate winners and losers in the salt wars, which has a whole new meaning now. >> yeah, low salt, high salt, high salt raised my blood pressure. >> sodium. >> manhattan home prices are falling for the first time since the financial crisis and the decline actually started with

the new tax law. chart from deutsche bank shows that real estate price growth in manhattan started slowing after 2014 and 2015. that was the peak. prices started falling in mid-2018 that was right after the so-called salt changes the new salt tax caps -- capped that estimated affected $14 billion just for new yorkers last year. housing experts predicted that manhattan real estate prices would fall by 10% over two years. so far, down 5% and sales have declined for six straight quarters that's first time that's ever happened florida has been the biggest beneficiary. about 64,000 new yorkers moved to florida between 2017 and 2018 the town of doral launching a, quote, unhappy new yorkers website and campaign telling new yorkers high taxes, rotten weather, outrageous cost of living, what's not to like

someone making a million dollars a year in manhattan according to the website would save $235,000 moving to florida. they had a little calculator there. you can type in your income and see how much you will save. >> but florida is hot. it is humid. >> we have a breeze. >> how are the beaches up here >> i went to one for the first time it was sandy, so looked pretty good. >> in the summer, beautiful. >> by the way, it was happening already. look at connecticut. before salt, you had a home over $2 million, couldn't sell it look at illinois, look at chicago. home prices already going down it was going to happen in new york whether salt happened or not. why should florida taxpayers subsidize taxpayers in new york city >> you and i had this conversation before, talk about sub subsidizeti

subsidizetion, new york is subsidizing florida already. >> we get half as much money per person for medicaid as new york gets half as much we pay more than you do in transportation when people pay their taxes, working here, they retire to florida and get medicare that's the number. so if you can keep -- if you didn't have your ttaches so high up here, you -- all those people want be moving to florida and you wouldn't lose all the made care doll medicare dollars if you look at medicaid, transportation -- >> but the transportation issue is a different issue here. the cost of transportation in new york city is, you know, stratospheric trying to move this number of people around to create an efficient economy, no? >> we have 21.6 million people we're trying to move all around the state. we have 126 million tourists that came in we have a lot of people

traveling an entire long, long state. 15, 19 hours of traveling in the entire state >> here is the challenge for florida, i think i heard a lot of wealthy people who moved down who say the challenge in florida is the schools are too crowded. too many people in the public schools. the waiting list for the private schools are astronomical how do you fix that? >> we're number one in higher education, according to u.s. news & world report. we have 650 charter schools, so we're growing pretty fast. if you go to palm beach, you know, they want more private schools. everybody is coming in, they want more private schools. that's not true if you go to places like where i live in naples or tampa or orlando, places like that so many people are -- >> there is not overcrowding on that coast >> no. there is not -- >> state wide there is not at all. >> public school overcrowding is a high class problem >> better than the public schools emptying out because

the -- >> miami and palm beach, so many people move in from new york and want their kids in private schools. if you look at our k-12 system, we do unbelievably well in standardized tests compared to other states around the country. people are happy with the public schools. the people from new york are not used to public schools they can go to. >> there are hearings in the house about trump teachers, from firefighters, from police, that say that at the local community level this is going to hurt, it is going to affect emergency services because towns just simply won't have the money. where does -- where does politically is anything going to happen can it happen? >> so when i walked into my job in -- i started in 2011, we lost 800,000 jobs we had a state that had raised tax and regulation i did the open i cut taxes the first year cut regulation our revenues grew by 35% our gdp in eight years grew by 35%. new york has to start saying i

can't -- they keep raising taxes. cuomo is great for us. i send him thank you notes raise your taxes, i'll send you another thank you note prits ge pritzker in illinois, he'll send all the people to florida. they're leaving states and coming to florida. >> can you actually -- she called it a high class problem to some extent there is a question of can you afford them all to come to florida given the services you have to provide >> and the infrastructure and roads and traffic. >> so first off, i left the state with $3 billion a year annual surpluses we went -- took transportation budget from 7 to $10 billion a year and increased k-12 funding. that's not an issue of money i cut taxes 100 times. i don't need more money. i need to spend the money better all indictment. >> there is a business man around here, a hot topic all the time, and he said, you know, i could move to florida, it would cost me a third as much living

here but it would cost me a third as much business that's a moneymaker for people and that's the gap still the lower cost of living, but lower income too. >> i agree there is -- you have to build a community. that's happening in palm beach, happened in miami. you're getting big hedge fund movement there you start to have all these people working together. >> we don't have the data yet on 2018 we don't know how many people have left. more importantly that their incomes are. if you look at prior to 2018, the people who moved from new york to florida are low income people, under $50,000, looking for a more affordable life is that -- >> and a job >> and a job we have plenty of zblojobs in o states we have every age group moving to florida now people retiring down there, people getting jobs. we added 1.7 million jobs to my eight years as gafrn overnor. we were down when i left to

61,000 people on unemployment. 61,000 out of 21.6 million people we were on a roll. and everybody is moving there. >> we're going to continue this conversation with the senator. and we appreciate you being here >> also coming up, new bipartisan tech regulations are being unveiled this morning in washington they're all about valuing and protecting personal information that we're asked to reveal to the biggest tech companies we'll have a live report analysis just ahead with a now apple turning negative in premarket trade. u' wchg quk x" on cnbc woman: my reputation was trashed online.

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coming up, we'll get you caught up on the new regulations being unveiled today that target the biggest social media companies. and assets in turkey on the rise today after the political opposition there scored a local election win against the country's president. we'll talk emerging markets with paul hickey in a little bit when isquawk" returns rightft aer th

welcome back to "squawk box. two u.s. senators and colleagues of our guest host rick scott this morning are out with a new proposal that would add transparency to how social media companies monetize user data to ylan mui with more. >> this comes from a bipartisan

pair of senators who are introducing this bill this morning and it creates a crucial link between privacy and price democratic senator mark warner and josh hawley want to calculate the value of all davidia thdavi of the data they collect and disclose that. the s.e.c. would be in charge of creating the formulas for determining the value of the data companies would have to file a report every year that includes contracts with third parties that collect data and also allow users to delete their information. warner told axios on hbo last night this is a step toward a bigger transformation. >> what, cheeri lclearly i don' it will be the long-term status quo case is this all of this personal information that is being sucked out of us, oftentimes unknowingly as we use our phones and devices on a regular basis, that that is not

something that is entirely owned by the platform company. >> one of the main arguments against breaking up big tech is that it is really hard to show how the average person is being harmed since these products are all free forcing companies to put a price on our privacy could make it easier to prove that they have monopoly power but warner is not on the breakup bandwagon yet. his co-sponsor josh hawley is, how far capital hill is willing to go will depend in part on how silicon valley responds to bills like these back to you. >> thank you >> joining us to talk more about this is ed lee, cnbc contributor. julia boorstin is here for the chat as well and rick scott, senator, can i start with you on this these are your colleagues. how serious should we be taking this effort? does this mean it is -- as good as done or -- >> no, no, no. i think everybody wants to understand what they're doing and everybody wants to protect your privacy

i think that's a -- that's what we're trying to do the -- i want to understand what the purpose is this is going to cost a lot of money to put together. >> what do you think the purpose is what would a purpose to you be that says, okay, this is worth doing versus not >> i want to understand the end goal tork p goal, how do i make sure you can protect your privacy, how do i make sure you know what you're signing up for, things like that that would be more important to me. >> ed, what you to think about that at a time people are obsessed with privacy and, you know, more of that issue, does this move get at -- what do you think it would get at >> i have the same question. what is the endgame here i lot of this information is available in terms if you're looking at facebook in particular, that's the totem for a lot of what the bill is trying to get we have a sense of how much revenueuser they're

getting. >> do you know roughly what that is >> i think in north america, $10 and $12 per month for a user if you want to take the information out, you can take the information out. i don't get a sense of consequence. if i don't comply or -- if you get this data, what do i do with it i don't understand what they're trying to get at there are nuanced areas this bill could cover, though, it is trying to do, facebook, for example, has a tester app, what they were trying to do is see what other apps they're using within your ios environment. >> opt into that. >> exactly you didn't know that the users weren't aware of it. it was a way for facebook to gather data on competitive apps. where should we go julia has a sense of that as well that's something that this bill seems to try to edge into, but without being as -- it should be more explicit for those types of things, i think. >> that's absolutely right i think the thing most

interesting to me about this bill is that so much of this data is so explicitly out there already. every quarter facebook reports average revenue per user one thing notable about that, look at the first quarter, facebook reported an average of $6.42 per user per average worldwide. the place where facebook makes the most money is in the u.s., over $30 in revenue per user in the first quarter alone. that's a number that is growing very consistently every single quarter. and so the question i think that this bill poses is whether people, when asked the question are you willing to allow facebook to make $10 from you this month, whether they'll click through or say that doesn't sound right, i'll opt out, rather than seeing the ads. i think people are so used to getting services for free in exchange for ads, i think that's going to become another number that -- another number people see, another box people check. >> doesn't change behavior.

>> yeah. there is -- right now i would say you said before there is an obsession with privacy there is an obsession with talking about privacy. but what we have seen very little evidence that consumers really are going to be making any changes to their behavior as a result of all -- >> you can separate privacy out from, you any, the -- how they're doing business and further to the question of whether our consumers are satisfied with the value they're providing to the company the flip side is, okay, don't provide them the value, you can pay them $10 or 12 bucks yourself for the service. >> exactly people are used to getting for free, they like that there is -- i can do so many things for free again, what is the consequence what are you protecting exactly for the consumer beyond, well, now i know my data is out there in this form, it is worth this much to facebook and to others now what >> realistically, do you see any meaningful, real regulation that would have a big impact on the big tech companies >> i think -- >> coming in the next 12 to 24

months >> i think making sure you can protect your own privacy. >> you think it is coming? >> i think it is going to happen >> definitely? what does that look -- what version of that are we getting >> i don't know. i don't know what version it is. i think you'll be able to control your own information i think you'll be able to opt out easier it is hard to opt out now. >> what about holding these companies liable for the content that is on the system? >> i think -- i don't know if something will pass. there is a lot of -- >> there is a much harder one to get through. >> there say lot of interest in that. >> if they get it through, correct me if i'm wrong if you change section 230 of the communications decency -- that is what allows even platforms like craigslist, for example, to not be responsible for content on their platforms wouldn't that change the way the internetwork works. >> completely changes. >> should that really -- should there be any movement on that? >> i think it would be difficult to get something like that passed we don't want bad things

happening on the internet. >> of course. >> we have our families. >> there is normal laws for that. >> very difficult task to do you control your privacy, i think we have some options to do some things there. you getting -- taking back all your information, i think we have options there. >> do you think of these platforms as a place that are supposed to provide a full-on freedom of speech, say whatever you want situation or not? that to me is a fundamental question >> i believe -- i think we all believe in freedom of speech i think we all -- >> everybody believes in freedom of speech. this newsstand out here doesn't have to sell every magazine and newspaper that is available. they don't it is a market, actually free market, they can decide to sell the magazine or not sell the magazine. >> i think it is very difficult for them to discriminate if they -- if they're tied to discrimination, i think they will absolutely get regulated. >> discrimination based on what, though >> democrat, conservative, liberal, things like that.

>> interesting question. very interesting question. >> quick disney. while we still got everybody here "toy story 4" did well at the box office, fourth installment, blah, blah, blah, $118 million in the u.s. this weekend best debut for a "toy story" film but below what analysts were expecting what is the message for disney shareholders, you know, can they -- is this peak disney? >> well, look, kelly, the film did give disney the fourth -- now four of the top performing opening box office weekends this year no question that disney dominates the box office, 34% of all box office market share this year so disney is certainly in a dominating position when testimoit comes to anything regarding a theatrical release of a movie. question is why did it not perform better estimates were anywhere between 140 million and 200 million and the range of excuses being given for that potential explanations one of which is that disney

usually releases its pixar movies on father's day weekend, considered a better weekend for drawing a family audience. and it is also considered better in terms of vacation schedules so disney will be returning to father's day with its pixar release next year. this weekend did not prove to be as profitable. and then there are other issues like, you know, we had a big opening day numbers for this movie, compared to other animated movies. but family films tend not to have a really big opening weekend. they tend to have a longer burn over time. so various explanations here then also the question of franchise fatigue. >> yeah. >> i think ultimately this will -- it will be on the disney plus streaming service that's where you'll be able to watch these things if you're family, you missed it in the theater, want to catch up later on, want to watch all the toy stories in one, that's where you pay for it eventually it will come back they'll make up whatever short fall. >> the parks are packed. the ships are packed my daughter went on a disney

cruise, packed expensive, she told me my grandkids will watch "toy story 4," 10, 15, 20 times. >> you'll pay each month for the privilege of having that at the ready too. julia, we got to go. why didn't they release it on father's day this year what happened? >> it is always a democrlicate e trying to figure out release schedules. they had avengers endgame and lion king coming up. but sometimes it comeses down to international reasons. they wanted to release toy story the same weekend all around the world. especially in big markets like china. i think it was tied into that international timing >> andrew's sunshine theory. >> east coast -- >> i thought it was too nice outside on the east coast to see the movies. >> that duactually does play in things the weather can impact how many people go out to a film. >> julia, thank you. appreciate it very much. coming up, emerging markets in focus -- >> bitcoin again >> no.

it is -- no. it is fun to do "squawk box. if you don't follow us, you should pretty funny, good videos. in focus at "squawk box," you can't do that. >> no. i'll look over your shoulder >> final week. on my screen, you can't see it because -- i talk about you a lot. you can't look over. check out this chart of turkey's stock market in istanbul shares rising after the political opposition won a redo of an election in the country's largest city seen as a big setback for turkey's president we'll ask paul hickey what it means for emerging markets and your portfolio wn quk x" tus.he"sawbo under this buttonwood tree, is where people first gathered to form the stock exchange which brought people together to invest in all the things that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions.

because the possibilities of life and investing are greater when we come together. ♪ dear tech, let's talk. you blaze trails... but you have the power to do so much more. let's not just develop apps, let's develop apps that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to take input from everyone. so let's do it all, together. ♪ ♪ let's expect more from technology. let's put smart to work. ♪ ♪

welcome back to "squawk box. take a look at the chart of the turkish stock market shares rising today after an opposition candidate won the mayoral election in that city in a redo of a vote held three months ago it could signal a turning point for the powers that be in turkey seema mody has all of the detail and break june of whdown of wha. >> erdogan suffering a major defeat, losing another seat to the energized republic people's party that has taken hold of turkey's major metropolitan cities the party's win comes after erdogan shocked the country in march by calling for a revote in

the city of istanbul, a city he was mayor of 25 years ago. the election was seen as a referendum against him a slowing economy, soaring unemployment and concerns of authoritarianism weakened support for the turkish leader in the past year and pushed the lira down more than 20%. the question is whether losing the important and symbolic city of istanbul means erdogan has lost turkey. the market seems to havedecide that growing support for his opposition is good news, worth noting the lira has given back some of its gains on the prospect of u.s. sanctions following turkey's decision to buy a russian defense system sort of competing stories this morning. >> four years until his next election. >> 2023. a lot of foreign policy experts say a coup or some type of health problem is the only thing that could lead to him stepping down at this point we'll see what the opposition party can do with this new election in istanbul and use it toward their favor. >> seema, thank you. our next guest has emerging markets are an tractive area now.

let's welcome paul hickey, co-founder of bespoke investment group and mark santoli joins us from the nyse with -- flying wallendas blocking the access to the nasdaq or something, mike? >> i got an appointment here at 9:00, joe. didn't see how i could do both. >> mike is up next >> are you -- oh, okay, you're sitting in for someone today all right. >> yeah. >> i'm not going to take that personally we love having you down here so, paul, some type of watershed event you think or just funny the way fundamentals sometimes match up with where you ought to be technically >> sometimes things line up altogether turkey has been a worry in the emerging market space. this is -- it is rallying. overall, you have the ecb and the fed come out talking more dovish policy, going forward, that's great for emerging markets. it weakens the dollar. it helps boost the economies of these emerging economies

but also from perspective of u.s. investor, the currency translation. think about it, last year, brazil up 15% local currency terms from the ewz, the etf that tracks it, flat. you get the added juice of a weaker dollar, boosting your overseas returns when you look at it, emerging markets, eemtf is at the same level as that 12 years ago and so it has been -- it has been pretty much a lost generation for emerging markets. and that's the time you want to step in a bean thighs thiuy the. they definitely have more demographic trends working in their favor in the emerging areas. from a real long-term perspective, it is a positive. >> i don't see how it could get any better for them. it is amazing it has been a lost decade this is the easiest money has ever been and this is a time where you wouldn't have to worry about rising rates somehow, derailing economies and all

these places where they're so sensitive to a currency fluctuation or rising -- why hasn't it been better? >> we had a strng dollong dollar that's one factor impacting things you look at emerging market performance relative to the u.s., it tracks the performance to the dollar. you have a dollar in the rally where a dollar slows in '08 and trending trier ever since, that's why you tend to -- that's right around when emerging markets peaked that's the key to look for, the currency if you think the fed will be continue to be more dovish going forward, look at emerging markets. >> what is europe going to do? they say they want to ease, look at the bond yields there already. what are they going to start buying stocks? japanese central bank owns 20% of the parent company of uniglow? it is bizarre. we're living in bizarre world. >> at what point is enough if that's not going to boost things, if that's not going to boost the economy, look at japan, look at europe, what is going to boost the economys?

they have demographics working against them in some of these developed markets like japan. >> they need rick scott over there. you -- when is is the last time you heard anybody in these european countries talking about rick scott-like president trump-like fiscal policys? always about easing. seems to be a political issue. >> how can we keep running trillion dollar deficits, $22 trillion worth of debt, not fixing social security, not fixing medicare, not investing in infrastructure. and no one is talking about it >> the ten years under 2%. >> right. >> nobody talks about it in large part because we change our tax policy, which you think was an advantage tax plan that actually -- >> that's one way to do it it is going to cost us a trillion dollars part of the problem you're talking about. >> it costs us, if it doesn't help grow the economy. if it grows the economy, what i did in florida, we cut taxes 100 times and we grew our economy by 35%. it works if you do it the right way. >> not clear it pays for itself. >> it has to -- if it doesn't

pay for itself, you can't do it. >> right now, the cbo will tell you, it does not pay for itself. >> you got to do tax policy that pays for itself. you got to work on -- >> you were not against the tax policy on day one we said it wasn't going to pay for itself. >> i believe taxes pay for itself i haven't seen the cbo report. i believe what i did in florida, by cutting taxes every year, year after year, it paid for itself we can't have higher corporate taxes and expect companies to grow here. >> i'm saying between the federal tax policy on both corporations and individuals and you can decide how you want to move those. >> you would raise corporate taxes? >> by the way, i'm not necessarily -- i would probably have left corporate taxes at -- i would probably put them at 25. >> put us at a disadvantage. >> potentially i would have then raised -- i would have raised individual taxes. want to bring them down 20, sure there is no effort to balance them. >> people don't believe there is value in government now. they're fed up with taxes.

>> i get that. you can't complain about the costs. you take way services. it is very complicated. >> you got to get a return on every dollar you spend there 4,000 lines in the budget. if i do something that say social program, does it work that's what we don't do in government >> i'm not disagreeing with you. i'm suggesting you said we have $22 trillion of debt in the -- >> we can't keep doing this. >> i don't disagree with you got to figure out how to balance that >> worried about that last trillion anyway, not -- >> i think the issue is -- >> mike, thank you for joining us you have comments? mike >> what i was going to say is, you can flip that around and say nobody is talking about the u.s., fiscal situation, kelly asked about europe should be saying why is germany running a balanced budget? we keep talking about the german ten year they have over a trillion euros of ten years outstanding not a huge chunk of debt

that's the only thing that might change that setup in europe. >> if germany borrowed another trillion to fund -- >> the fiscal side has to come through. you would think if they want to change the overall setup there in terms of growth, in terms of inflation expectations >> look at that ten-year bund yield, minus .3% people say why would you own something with a negative yield? the price action has been pretty good these -- the rick rieder line from last week, people buy bonds in europe for the upside and equities for the carry. >> look at u.s. treasuries, ten years up 10% year to date. would i want to be buying treasuries at low yields probably not i would have said that a year ago. >> exactly the price action keeps showing some upside. mike, so you think this will ever happen, that there is a conversation and i guess it is not even about, you know, spending the trillion dollars, but on what? it would be hard for me to imagine germany saying we'll do a trillion dollar tax cut. it is just not in the cards, is it >> the fact that it is hard to imagine suggests that it is not

that palletable politically. i don't know if that's where it is going but who knows if you have to get to a greater kind of perceived crisis point over there before you unlock things. the other thing, you talk about japan, people in japan, it has been kind of this lost generation without hardship for the domestic population. so per capita, gdp has gone up debt levels don't matter, central bank involvement doesn't matter in terms of life of the population we all headed there, i don't know that's something you have to keep in mind. >> don't look now, but i'm waiting for all these wall street -- all these sell side, i dent know wh don't know what to call them all the ones that are down to 2750 the dow isn't far from a new high either, is it >> it is not really, you know, like a quarter of a percent or something like that so, yeah, obviously i think sentiment got too conservative

and negative and defensive and that's reflected, consensus is where the s&p is around, 2950. that's where we are. seeing if we have to burn up a little more of that pessimism in the form of higher stock prices and see if that works for a little while. >> we had cooperman saying that this looks like we're embarking on one of the final stages whatever you want to call it, the euphoria stage i don't know whether that's true or not, but the blowoff that could take us to 3100, 3200, something like that. >> i don't know if that would qualify as euphoria if we got it for that point who knows. we have been waiting for that for a while. i think january 2018 approxim e approximating something close to that but it burned out quickly. >> that wilson guy at morgan stanley, you know, 2400 it could go there 2750 looks like where it should be we could hit 3,000 in the meantime i don't know what the -- i don't know what is that? it is like a 20% rate. you're saying nothing. >> got a lot of voices in your

head >> i do. i do you know that i have voices? you can tell >> picking that up, yeah >> resemble that, i just said that before. i'll sue you for defamation of character. thank you, mike santoli. governor scott will be with us coming up, a little bit mo, re with our guest host, florida senator, former governor, senator, governor, rick scott. and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa" we're the webber family. we're the tenney's we're the hayles, and we're usaa members for life. ♪ get your usaa auto insurance quote today. ♪ what do advisors look for don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain.

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we want to thank our guest host florida senator rick scott. thank you very much. join us tomorrow "squawk on the street" begins right now. thank you, kelly ♪ good morning and welcome to "squawk on the street. i'm david faber with sara eisen and mike santoli, live from the new york stock exchange. jim has the morning off. carl is on assignment in vietnam. companies are racing there to produce their goods to avoid a hit from china tariffs carl will report live from hanoi tomorrow with an in depth look at the country's manufacturing boom be sure to watch his made in