♪ >> live from new york where business never sleeps, this is "squawk box. >> good morning. we're live at the u.s. markets and let's take a check on u.s. equity futures at this hour after a record setting day, the s&p looking to gain on yesterday'sed a vansz. dow jones looking to add 84/85 points the nose dak had a closing high. hitting 3,000er for the tooirs time see what the axz action is look. and his testimony in fronted of congress yesterday and composite here

european equities, up by 8 slaegts 10 off a percent we had pretty good movement over it had it last 24 hours because off powell's testimony 1.60 -- we were over 190 10-year note, 2.056% >> if you're planning your day it's time for the crosswalk flan aer for try to pace yourself and this is right at the it very beginning of your day because you'd do vp oorks and later in your day, i'm watching washington do the same stang and he'll not see you.

how we're going to get numbers from delta airlines. after the close. you also have to be aware of ho, that's right >> i'm eves dropping >> you're down to five, are you not? as sooner as the numbers are out, i'll give you a free cnbc envelope did you see that engine yesterday with video >> kw the thingroiding around in the -- >> it did. i just saw people complaining they didn't feel like they andaus compensated enough for it sglrts then you would do if you saw that it --fer and if you saw nangen come across on a

flight -- >> i would mang. >> ohow would you notify somebody >> there's not enough money and someone decided to take a video to him, and his spirs. >> we have a developing story this morning in the middle oos they say five armed boats believed to belong to the iranian nuclear guard unsuccessfully -- but were stopped. no shots were fired but they say the royal navy ship did have its sons trained during the exchange iran says the parole boats were carrying out noormal dude aides. they separate the it persian golf and gulf of iran. another developing story that could impact oil prices

around the world with. a major storm praimpt prompting oil refineries aroubd the world. as the storm bears down and residents of central louisiana and upper dx dx coastline scrambling to prepare. they say it would be a hurricane by study frrtsz new lay revamped levy system >> stux watch this morning under pressure after anrgts mezzing earnings refort severance and others, including all that earnings before cash. abalists had expecteded it long time ceo was pushed out and he managed to get four new

drektszerred dhoo court. the comp an is reviewing its store plans. cut costs and changes the organizational structure you don't down >> heading off from behind >> no, i want him to keep the beb hind, just stack a aemp beds >> let's say you're driving by, there's a gear there's the girl bp >> bedroom, bathroom, and beyond >> that's long though. >> the activists wanted to sl the other devisions perhaps christmas tree shops er i don't know.

the market's pricing it. lockheed martin will keep its plant open they reeval krauted plansz to close the plant. they originally kept the craft closed and tweeting both thank you to lock heed martin one of of the truly great companies. they have 165 work withers and shares of nintendo they anounched the release of the switch light it would be volable aluable. >> go to break early and save time for our crypto interview coming up. i'm leaning heavily on you i defer to people who actually know nings

you had a bitcoin buzz when i was in diapers this is not a bit coin company, really >> the first registered sale >> black stock. >> bloc stack. >> i know just enough to be dangerous. i do actually understand but why would you want to pay for developing an application on the decentralized network with the token? >> because if you inivist in developing the network there are nets you don't have any ownership staik stake in the company and

it will be enhanced by the build up of the net wk but now this quarter a plus -- >> regulation, regulation. >> it's like the fledge llg umpuns youed this. they spent a lot of money trying to get the fcc to do it. he's going to be onset >> oh, really? >> oh, yeah. have you seen it >> i have. i think that can cut both ways because they do an amazing job ridic between the line and parody >> we can't share that one coming up we'll show you what fed chair powell said yesterday that got stocks higher

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[ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started. federal jerome powell giving a signal of possible cuts. >> in light of increased

uncertainties, we would closely moner itter the implications of incomeling information but the economic outlook and would act as appropriate to maintain the expangsz they saw a case for a somewhat more monetary policy had strengthen pd. forerse based on incoming data and other developments, it appears uncertainties about trade ngz its continue to weigh on the u.s. economic outlook. joining us to talk more about the economy, ed campbell, managing director at q and a at this point, given all the uncerternitiess that he see aptly listed in yert's testimony, what can they cut to the rally? >> well, i think it's more about sentiment and the market's got what they wanted to hear

yesterday but i do thing at this point we've got an lot up front. it's been a pretty exhilarating first half plus for equiaties. so in order to fuel the next leg, we need a turn around in the growth data and we rr not eseeing that as of yet >> you can see the case being made either way. even though chair powell wept out of hiss way t it seems to highlight the negative >> he certainly didn't seem like an optimistic guy yesterday. uncertainties have come back over the lagsz six weeks er the point is chair powell had all the time and power in the world yesterday to walk back market pricing for a rate cut and he can did not do that and ignoring his messaging we do it at our own peril. he said effectively to look

through the strong jobs data he got. >> and powell essentially said i don't care if that'ser a frame frk today's inflation data manages a lot. based on what powell said yesterday, i don't think i'll move the dial at all what are we looking at in term its of of how we characterize this great action they're talking about it being preventative it seems focussed on trying toing uninvert the curve, sitting above 2% the restf of the world is below that. it's an easing cycle or a preventive measure? >> it's like you said. more about kicking insurance against the it down side risks if yok look at the feds base kats, you would say this cut is not needed it's really insurance against the down side risk

you mention the inverted yield curve. that's the one thing flashing red on people's dash bords. but erwoo rr we're going to get employment claims. if you look at how yield spreads and other riliable indicators, their are not flashing the same alarming signal >> what's your outlook for the year in term tofz the markets i would imagine 25 basis points isn't enough to be an insurance cut in a recession i don't know if you think it's more off affnoivl? >> we think this is another growth slow down dwroob think the economy will eventually rebound in terms of our investment strategy, we're right around

neutral in terms of the majort classes. if we look at our market sentiment indicator, indicator exuberance at this point we need digest the move so far we're coshing but not bearish. i think central bank pivot that we see is going to earn it round the it growth data and the tool. so we're coshing right now but i don't think we've seen the cycle highs in terms off assets. >> when did you go neutral >> before the bounce back. >> we did look press mg to the down draft in may but we've missed some of the bounce back we've seen since then. >> is it priced for continued slow down. how do you play that >> in my view you have to pick one of two camps

are we in the 1990s or are we heading towards an easing cycle? heading back to zero because we're heading towards a 2020 recession and the idea we're going to cut three or four times in the middle is probably not accurate this is a 1990s situation. an insurance cut but from a bugger perspectiveb i'm totally happy being a little short coming to the nktst couple of months >> mot just a july point what does that do to you? there is a great expectation he'll come with an actual rate cut. >> let's expand the lens and realize almost every global central bank is easing it means global growth is going to get supportive.

maybe not when employment is so close, but we will see some stabilization and if woo have flomtsz easing >> if you believe what frances is tell itting us, then you should not be neutral. you should not fight the feds, plural >> i thij tratser are right. i guess what weir are looking at is markets look a little over bought and we need a digestion phase. based object our market sector indicating zub rnsz. >> it'sinatesting because if you lookality some of the short term tactical stuff it look thal way doesn't seem as though the world has bought into this

if the global growth is bottoming at the same time the fed gives inthat markets, that same time you come out of the flat period it all plays together every strategist said this is one and done flarts rr all the bang we're go tag get for our buck the easiest trade is always the wrong one. and thinking this is go tag last -- and everybody's got a 2950 upper end but by definition they are they're all 3,000 max. the wilson guy on your shoulder every week i'm watching >> he's a bear >> no kidding. and 93 this year --

>> about half a year to go >> the market's probably in decent shape until joe starts shaving everybody. >> no one remembers. they say something else it's like oh, that sounds good, jeff. and for years they're wrong and then -- >> good morning, jeff cline. we appreciate it >> this is a great story can coming up. i looked ahead we've got the it results of a new job satisfaction survey and people don't care about sorry. what they said was more important than salary. millennials. they're living in the basement anyway big tech under fire. wore rr going to give you gax.

♪ i tumble for you i tumble for you ♪ ♪ i tumble for you culture club time for had it executive edge workers value strong workplace culture above salary the study by jobs website, glass door asked them to rank their priorities for a satisfying career

65% said strong work plas culture was more important than salary and millennials viewed that number higher hundred u.s 55% rank culture as the highest priority >> is it like you got to be green or renewable energy in your space or -- >> a vibe. >> is it a vibe? how's our culture here is it lacking? >> it's empowering to employees. >> you made the point. so mad men, bad. >> but in the show -- >> orrer the office was probably bad workplace. >> i think what they're talking about is lots of feedback. how can you get better when you're part ooff a team, lots of

things he that make you feel like you're working towards something larger than just a product. >> i hate feedback when management weighs in. >> that was a great job you did. >> i get that from my viewer >> millennials don't feel as if as the aif there's a tremendous difference. >> which is ironic given the tightness of the laborer -- >> and so therefore if you'rer choosing among the jobs, if it's roughly the same money -- >> as we were talking about before they're not as young as you might think. they're up to 40 so you got to wonder about the younger ones >> it sounds good. >> you want the money. >> culture again what do you want to it do?

and someone says i want to change the world and they all laugh. that's not the way it is anymore. that's an antiquated -- >> that was early '80s regan's call do you think -- this sounds to me like you need a little maturing i got kids to put through school vacations i want to take taxes i want to pay and i need -- how long do you think this is going to last? >> till they hit 45. >> all right i like this story too because we're going to hit you where it hurts. if anyone ever wants one in this country, we might put a tarifff on it. he's ordering his top trade officials to investigate including alphabet, apple, facebook and amazon. says the investigation into the

attacks, which he says unfairly targets u.s. companies could result in tariffs on french cars >> the wine. >> the wine got me that scared me a little bit although we have great california wine. france would apply a 3% tax on revenues that tech companies reap from france a french finance ministry official says the attacks are compliant with agreements and it's inappropriate to use trade instruments in retaliation i guess -- >> uh-huh. >> get me one of those recently. >> i know. >> they made a convertible -- i thought those were made in kujo sound, washington?

anchor said that once. >> coming up new numbers on ventur ventur venturer investors at a record rate and sounding off on the first regulated token sale the ceo blocks that. we'll join in just a few minute. and a look at yesterday's s&p 500 winners and losers through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate...

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♪ welcome back you're watching "squawk box" live from times square ♪ lately i've been good morning

u.s. equity futureses are indicated higher after the turn around yesterday which reversed loss began on friday after figured it out then powell alaid erpoos that rate cuts were off the table maybe they're back on now. that's all that really matters brings the dou up about 50 points, nasdaq 20. >> s&p briefly he had the hat >> definitely. >> a little early but they're there. it was a record second quarter and the qtipo had exit value the reports says venturer investorser felt good to open and they include uberer,

pinterest and they had been keeping companies private. uber accounted for 49% of the total exit value speaking of ipos cyber security firm mcafee is planning to return they're meeting with bankers to discuss a listing as soon as this year. it's owned by private equity firms along with intel and it's interesting because the crowd strike, another ipo high and putensh ittal sumantic deal i guess you have to question is mcafee a more mature business it's a bit of a cash cow business

and asia business. b this could raise nearly $9 billion. er could be the largest ipo this year issall retdy over prescribed friendship coming up we're going to it tell you about a major milestone for block chain in the sec plus we're awaiting results from delta airlines and we'll have an interview with the ceo of delta carvana is six years old this year

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virgin galactic is planning to go public >> it started as a joy ride and then became a necessity. >> everything from space tourism to hopefully hypersonicb air travel >> i'm really looking forward to going. we are watching the price of bit coin and yesterday was above 13,000 comments from the fed chairman about maybe libra or facebook that seemed to derail some ohof recent rally crypto occurrency fell following that comment about faulk's plan to launch that currency, libra we did actually have a meeting with representatives of facebook couple of months before everything

libra raises many serious concerns regarding money laundering and these should be th thoroughly and publicly addressed before proceeding. >> bitcoin had recent laclimbed down it's up more than 200% meanwhile, a milestone of sorts for crypto-related companies and block start ups. we'll hold the first token sale this morning they cleared the $28 million offering under a regulation a plus which is an alternative to an ipo co founder and ceo who also consults on sillicon valley as well >> that was fine >> i have not seen that. you can talk to mike about that. >> agon i'm not in sillicon

valley at 11:00 a.m., people could buy digital toekens. >> people call it quote on quote the minia ipo. imagine the it wild west equities markets before the 1933 securities regulations and this is kind of like how the crypto omarkets are right now and what we have done by working with the regulators is we work with them to define a legal framework. >> what exactly in this case with block stack -- what does my digital token give me the it right to do? why is it worth something to me? >> basically rilts used as fuel

to resist different types off assets orrer running smart contracts, you need this to execute them let me try to explain with an analogy. imagine we discovered manhattan. and a single company, let's call them facebook epds up getting all property and everyone can live there for free. but they don't have a stake in the success oof whatever is happening and in the block stacks case, every user has property rights, their own piece of land, own their own information and everyone has a financial up side. there's no company in the middle >> so you built a decentralized network. >> open source code. >> it basically came out of research we escientists who built core

technology as open source soft ware and people can run it to basically be part of this network. our company doesn't control this network. >> and you would pay for doing that with one of your digical toekens? >> so there are already 100 applications built on top off this network and they include examples to google docs, linkedin and a whole listf of these applications that are already live and people can use them but they're so proud when they see that i'm sort of -- and can we just move beyond this and talk about whether libra was a positive for crypto or a negative

it's going to other in more regulation mark zuckerberg, that's all i need is for him to have his hands in my wallet and everything else. i'm not on facebook, so he doesn't. but good or bad for the industry >> i'm cautiousesly optimistic in the sense that facebook the company has done things in the past that would make you distrust the kwumpany but this team is new. i actually know the leadership team there and they're trying to do the right thing with that said at some point facebook would have to figure out are they truly building an open system or oer orer are they going to end up building a permission system and they will have to figure out how to work with regulators as well. >> for me that offsets any positive from making it morer widespread it doesn't steam have any of the key characteristics of a

bitcoin. i don't see how you regulate bitcoin. you can try but you really can't because everybody sort of owns it themselves. they own the rights to it. >> that's the point, right because you don't want somebody to say threat it be. >> i feel like i feel initial signs and crypto people who just love it. j the function gives it lot off value. >> this is very important. this is the first token sale a year ago maybe you would have gone the route and all was something like $7 billion. it ground to a halt virtually 18 million in the first quarter so what made you choose this route and do you think this opens the way for other

companies that would look to ico and do this? >> absolutely. first off all i hate that term it, ico so we've been living here for more than five years. so we didn't need to know this route just to raise capitol and just by looking that markets and there were so many bad actors and people were effectively raising cappal rr on half baked ideas. that's when we started researching that if we were to do it professionally what would that look like that's when we did the first part of our toeng offering through a reg d offering that was limited in large funds that was 47 million rounds that we raised in 2017. and since then we've been work

on the legal framework for opening up such offerings to the general public and you're working with the sec, audited financials and they're wondering what is this thing and how do we understand it. with the regulator token offering like this >> quote on quote legitimate companies and may be etired of the scammy nature. >> absolutely. i think the work we've done can serve as an example and they don't want to otherwise go down the route. >> right its to the take like six years to get a ph.d. right princeton's better but i have it to go a little longer than that, right? must h have had a pretty good start.

can you figure out a mechanism to value bit coin currently based on a metric that makes steens everyone. >> there's one called place holder it prices follow models. and then models follow prices. these evolved like -- they're interrelated so people are coming up with the initial models and they may be true, they may not be true but once enough people start using the models -- >> everyone be buying things with libra or bit coin >> i mean i'm on the side of bitcoin but cautiousesly optimistic >> anyway, thank you i hope you come back and continue with my education >> thanks for having me. >> coming up we'll get you ready

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welcome back the white house is holding a social media summit today, there won't be any social media companies in attendance. >> this is more to be a more of a vent session in fact, social media companies weren't invited, instead, president trump will meet with conservatives who say the platforms are bias against him he wrote this would be a very big and important media summit would he be president without social media yes, probably. heritage university will be at the summit and congressmen like mark gaetz and marsha black.

blackburn has singled out snapchat lately for not doing enough to stop online predators, tweeting big tech will be held accountable for keeping kids safe so there is clearly reputational risks out of the summit today but what really has them worried is a potential for changes to the legal protections that they have from what users post on their site representative gaetz is calling for getting rid of the immunity entirely the real danger for the platforms is that today's summit sort of whips momentum behind those efforts. back over to you. >> certainly, stakes are pretty big. thank you very much. for more let's bring in rob lui, and alex canterwitz senior reporter at buzzfeed, obviously, this is going to air a lot of complaints about these platforms, how they operate, how they decide who gets to air their views and not.

what does it mean for the business practices -- do you think that these companies recognize there is a potential threat to the entire business model if this leads to policy changes? >> yeah. i think they know there is not much that will happen to them. if you look at the way, the top three are military, amazon and google you skip da thousand and get to the political parties and congress and facebook is somewhere in the middle. i think they realize there will not be actual legislative action here i do think the threat can be meaningful it can show them, hey, listen, if you show continued bias, there is a chance we will change these laws even the fear that will happen will cause them to lay off some of that conservative videos that you know may or may not break the rules. so i think that we're not going to see any legislation thoepg i don't think their business practices will allow that very

much the fear might allow borderline platforms to stay up on the platform. >> rob, you will be at the meeting. is that one of the goals >> i don't think the government should be in the way of breaking them up or legislate on them i think conservatives should point out where they have seen suppression and bias against them let's face it, there are numerous examples. i think that will be on full display today. >> one of the issues, of course, rob, that the policies are reactive very often and are not necessarily clear beforehand, exactly what gets taken off their platforms. so do you think there should be some rule setting down the road? >> i think these companies probably need to do a better job of communicating to their users, particularly to conservatives about their own guidelines and the returns of service which they expect people to operate. i think that's unclear we've experienced our own examples where content has been pulled off these platforms it has later been restored

we had a colleague that had an apology from twitter, because he was suspended temporarily. sometimes these companies take actions. i think it leads to confusion and conservatives seem to be the often once on the end of that. >> yesterday, we covered the fed chair's testimony in the house, i think there was surprise a number of questions he got about facebook's libra kind of crypto payment system initiative. while not focusing on that it did show there was a tremendous amount of interest on both sides of the political spectrum for scrute fiezing everything these companies do >> -- scrutinizing everything these companies do >> that's right. it's an opportunity for both points of the aisle to score points they want to see they are holding the powerful company's feet to the fire let's make sure they are totally critiqued and any time there is an excess they get pulled back a little bit remember, again, these companies

are pretty popular among consumers, people, citizens, so it's kind of this tenuous walk through for politicians where they want to be hard, if they're too hard, they might end up upsetting some of their constituents nobody wants their amazon prime to go away if they get broken up, and it takes three days to get your package to you, it becomes an issue for the person that broke them up. so i will keep that in mind as the politicians are grandstanding. >> we did get the news from a judge the president has the constitutional obligation not to block followers on twitter obviously, at some point everyone has to agree there are a certain way to operate on these platforms from it will be interesting to watch i imagine the president will have strong words at today's summit >> we'll will listening for him. thank you. coming up, we're expecting results from delta airlines in the next few minutes we will bring you those numbers and a rsalpeon cn be c interview

with the ceo of delta. stay with us stay with us >> any time right from your computer all the amazing services of the post office only cheaper get our special tv offer a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again!

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>> announcer: live from the beating heart of business, new york this is "squawk box. ♪ . >> good morning, welcome back to "squawk box" here on cnbc. i'm joe kernon along with mellissa lee >> force of habit. >> and mike santilli, u.s. equity futures at this hour indicated some of the best levels of the pre-market session up 94. the dow and nasdaq up, s&p up 8 frachlth what do we need to get 3,000 today? >> above 3,000 >> here's what's making headlines at this hour federal reserve chairman jay powell in the spotlight. he says the u.s. bank is committed to keeping the economy on the right track >> would it be fair to characterize, based on what we're seeing on those two factors, specifically, that a strong case could be made for

lowering >> so, yes as i mentioned, we think that uncertainty around trade policy and also global growth it's not all down to trade policy there is something going on with growth around the world, particularly around manufacturing and investment and trade and so that uncertainty is we think weighing on the xi. >> powell heads back to the hill today to testify before the senate banking committee we are watching bitcoin, currency fell sharply after launching digital currency libra. >> libra raises many serious concerns, regarding privacy, money laundering, consumer protection and financial stability. these are concerns that should be thoroughly and publicly addressed before proceeding. >> bitcoin has recently climbed back above $13,000 so far, it is up more than 200%. shares of bed, bath and beyond

are under pressure after another messy earnings report. the struggling retailer having severance and other costs, same store sales fell 6.6%. analysts expected a decline of 5.5%. delta airlines out with quarterly esults phil lebeau joins us with those numbers. >> reporter: mike, strong numbers as expected in the second quarter and a number of guidance raises for the remainder of the year. let's go over queue numbers, first of all, beat the street, 235 a share versus 228 hef knew slightly better than expected operating margins 17.1%. free cash flow $1.8 billion. they have now had 2.5 billion pre-cash flow this year. last year they had 3.3 the entire year and the improved guidance for the third quarter and remainder of the year, third quarter they are expecting to

earn between 210, the consensus, look for that to go up full year guidance, raising it by a quarter it was $6 to $7 a share now going up to a range of 6.75 to 7.25 this you got full-year pre-cash flow it was 2-to-3 billion. now they are saying they will have at least $3 billion now the return to cash to shareholders was at 2.5 billion. now it's at 3 billion. it's a lot of improvement there. we'll talk to the ceo of delta, ed bastian the a-330 will be retrofitted. >> it's brand-new. first flight going on today. >> second quarter, you beat the street, a lot stronger numbers than people expected earlier this year. there is so much demand this year, could have you flown for people if you had even more

capacity >> first for coming down, the best june quarter results in our history. to put that into context, to think about the $2 billion that's better than any five of the 90 years of our history. >> full years. >> full-year results, just what we had in the second quarter top line growth is really strong about 9% top line growth in the quarter. we also have another interesting stat, five of the ten revenue days in our history within the last 30 days we were full we took 454 million passengers, record levels. >> so square those results, which are, by any measure, fantastic results, square those results with the hand winging that we've seen by investors about the airline business over the last three months. you've seen the reaction of most shares i know you guys are close to an all time high. but when you talk to investors, we hear from investors, i'm not sure the airline business is that strong. how do you convince people you are just not seeing that

>> well, the momentum continues. the results in the quarter are not a one off. this is a trend line we have been seeing. our top line revenue has been growing ability 8% per year for the last two years and we're expecting to see that momentum continue into the back half of the year so we need to continue to show the results, this is different. raising that full year guide up to the top end of the original guide is very important for us and free cash flow as you mention. the cash flow delivery, which our investors were looking for to return the returns back to the park $3 billion of expected returns to shareholders. $4 billion of pre-cash flow for the full year. >> yesterday, fed chair powell talked about emergency emergencies around the world, different markets. you said when you spoke to us a few weeks back you guy versus noticed potentially softness in parts of asia. what are you seeing in regards to asia and particularly china on the transatlantic routes?

>> we've seen some softness both in the pacific as well as in the transatlantic. but relatively speaking it's modest compared to the overall picture. in asia, it's actually more japan for us than china. china we're up double digits in terms of passenger growth. we're cautious we're always keeping an eye on them demand and supply in asia. in europe, part of it is brexit. part is macrouncertainty mart is given certainty for europeans to fly yet that said, our overall transatlantic revenues also hit a new all time high? june so in context, it's not as strong as the domestic marketplace, it's doing fairly well. >> mellissa, go ahead. >> it's mellissa lee back in the studio i was wondering if you can quantify the kind of boost you got in the quarter or year-to-date from your competitor's woes concerning the 737 max ground and whether you think as this grounding seems to drag out further and further into time, that that benefit can

actually grow for you for delta going forward? >> well, as you know, mem lisa, we do -- owe mellissa, we do not fly the max. clearly, there was a benefit for the airline in the quarter it's not explaining the results we're seeing it's more of the strength of the brand and our service our people are putting forward. to put into context, at the start of this year, we're seeing domestics supply down maybe one-to-two points from the original forecasted levels it's still growing, it's still up 4% in the quarter one to 2% is not a significant amount, when you think of the fact that the competitors are do you know good job of covering off their most competitive routes and most lucrative routes we saw a marginal benefit. i don't think that's the reason for these numbers. >> do you see it growing as your competitors continue to shuffle, especially, the impact on the consumer and the traveling

public, you said recently about the airline industry has been traumatized by the grounding of the 737 max. the impact on the consumer has got to be pretty traumatic as well >> well, it is and, you know, i don't know when the plane is going to come back. as we've seen, it's taken longer than any less expected to see it returned to service. it's not going to be in place for the third quarter. maybe some time into the fourth quarter. we don't have a crystal ball on that but i do think consumer demand has shifted to delta, has been shifting to delta for several years now. the max may be contributing a little bit of benefit, i don't think it's a snippet to contribute >> one last question, people might be saying, why are they on an airplane? we are on a new a330, this will be flying from seattle to shanghai tonight in particular, you got the delta one configuration up here. the new business class, what are you noticing in terms of demand

to fly business class. are we getting more full fare paying people and less in upgrades in terms of hey, i got a bunch of miles, that's the only way i can afford to get into delta one >> we are are the launch customer in north america on this plane we're the first airline in north america flying it. last night was the first service. plane number two we're taking this to asia tonight. this product is fantastic. it's award winning the delta one suites that won an award last year for the if you product innovation in the market place. the other thing i love about the product is we're introducing the delta premium select which is a business cabin in our international cabin. we are seeing a question around passenger demand for the product has been phenomenal. the results have been great. the delta premium select is certainly i think one of the leading o -- >> are you seeing more people saying i will pay for this as opposed to i will only do it if

i can cash in enough miles >> no, we're seeing great demand overall, first class is paid, all the factors are up 65/70%. so when you think about that, we are saving some seats for our frequent flyers to make certain that they can upgrade. but most of it is coming in cash >> ed bastian, chairman/ceo of delta on a day guys where say that posted stronger than second quarter earnings and raised their full year guidance back to you. >> let's not give them the benefit there in the early going. thank you, phil. delta ceo paul jacobson will be speaking at the finance summit in chicago. he will be joined by leaders of the ibm, hyatt and dell and talk about the future work for the bottom line. head to cnbc.com to get a ticket >> i can't get enough of that i'm trying to -- >> it really triggered you that conversation we had about --

>> the workplace >> -- the workplace over salary. >> over salary i need to know, that was a great term a great term, i just need -- and i'm not, you know, i don't know how i'm going to feel if it's explained to me exactly what you are talking about. >> are people collaborative? are they look to work together or competitive with one another? >> it's not the stuff andrew loves all the socials, it's not the renewable stuff, carbon foot - >> it might be a part of it. >> i'm a vegan, no salt, sugar you know. >> even when he's not here you pick on him. it's amazing >> it's so easy. >> especially when he's not here >> it's easier then. easy either way. coming up, media moguls in the mountains, ceos of verizon joins us check out the futures at this hour, almost up triple digits on the dow.

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go to xfinity.com/moving to get started. a developing story this morning in the middle east u.s. officials say five armed boats believed to belong to the iranian revolutionary guard unsuccessfully tried to seize an oil tanker near the strait of hor mus, it was stopped -- straight of hormuz

they say they had them trained on the exchange. this morning, iran is denying the u.s. version of events and saying control boats were carrying out the duties. the same area where a u.s. military drone was shot down last month checking out crude prices this morning, they're up after a quarter percent yesterday. still to come, the biggest names in media are gathered in sun valley to discuss the state of the industry deals and more. julia boorstin is there and joins twus a preview. >> reporter: good morning, the ceos and techs are talking about the streaming wars and coming up, i'll be joined by vezorin's ceo to talk about the future of mobility that's after the break ♪ . or, here. kick your antacid habit with prilosec otc. one pill a day, 24 hours, zero heartburn.

media and telecom giants meeting in sun valley, idaho at the conference and julia boorstin joins us now with a special guest. >> reporter: hey, i am joined now by hans, ceo of verizon. we really appreciate it. so the big question for you is

5g, how quickly you can roll it out. also, competition with the other carriers, how can you reassure investors that you can stay ahead with this battle with cost issues and a potential price war being really problematic >> i think that first of all we have known 5g for several ears we were the first to do it at home, broadband. we were the first in the world to define mobility we have three 5g phones already out. we are of course ahead of the game we, of course, respect all of the competition. you know we pride ourselves, woo ter best network we have that all the time on 4g. we will have it on 5g. we don't have to work. but network is our strategy. it has been that to overcome verizon and that's important for us so i want every american to have a 5g phone in their hands and see the huge impact, the impact,

the transform 5g will make in this country >> they downgraded on concerns the competitive environment has pricing issues how can you respond to those concerns when we have seen pricing wars in the past with other car years? >> i think first of all, it has always been a competitive market the wireless market is extremely competitive. it is nothing new to us. we are prepared, a big transformation, a network. we have a new goal to market we have a voluntary offering, almost 10,400 people leading us. we are prepared. whatever we come up, verizon responded quickly. we will manage our shareholders, our customers, police, society, in general, that's our work. >> in your committed market, though, is changing. we have sprint, t-mobile, any prediction on when that deal with close >> no, i wish i had one. i read the same newspapers as

you. so we don't know, again, it's an exciting market to be in, in broadband and 5g, the u.s. the local hype and discussion and the u.s. is in lead of it. it's an exciting time to be here and work. >> there is a lot of speculation who can pie the sprint, t-mobile assets, the dish, what kind of a fourth mobile carrier that could create what itself your thoughts on the creation of a whole new rival and what is interested in the mobile space right now >> i don't know, you know, again, we will compete i think that we're already the first network, being the first in the world with 5g we will hammer on and execute and have a great team. >> that is doing that every day. so our main focusis to execute right now and multiple things will happen around it. >> one of the things we are hearing is a trade war with china. hauwei says it's in talks with verizon and other car years

about licensing rights, up to a billion dollars in licensing rights them wlaus the latest is on -- tell us what the latest is on that. >> first of all, we don't have the equipment and impact on the chinese trade war in the first instance so for us, this is a normal event for us at the moment we are executing our strategy with our western, european, networks, we are first in the world. i think you can't do that without hauwei we are happy we'll see. >> that's the sunshine act >> no. >> other topic here in sun valley of course mna your rival you know, we've southeastern rivals, at&t making massive moves in some media space. the at&t deal closed in the past year, warner media, with what is your perspective especially in the media space what you will do next >> i think first of all, we are happy with our assets. we have put together our strategy right now based on our

verizon media group. our verizon business group and consumer group we have our assets in that, so i have said earlier that i won't execute on those right now in general, we won't execute on our strategy right now we think it's a very compelling strategy with compelling assets >> in many ways going the opposite direction of at&t >> i think if you are in the mobility space, you can go anywhere they will have different strategies for different categories in the world. we are very happy with our strategy hopefully, they are with their strategy. >> a lot of people have been taking about regulation. we spoke of this yesterday off camera >> yes. >> we are about to see there is time ability regulating the tech sector. are you in a regulated space what is your perspective around anti-trust, around privacy data, usage, data is something you deal with a lot? >> yes no, i think first of all we understand the concerns and all

of that, but ultimately, you need to remember that mobility, broadband, that combination in the 21st century infrastructure. if you can scale that, you can solve problems in the rest of the world that you have never thought about. we saw them sharpening up for regulation we cannot give the same opportunities for everyone in this world so that's very important secondly, i think the technology is moving so fast. no you do regulation, it's moving so fast, so i think it's up to responsible leaders and ultimately the customer still could face, we're building our brand on trust and innovation. we know we need to fight every day to get the trust one thing you do wrong, you lose the trust. >> that has to regulate more important in the end >> ultimately, do you think the government should regulate google, facebook, or should they break them up? >> i think that regulation again is difficult in the tech sector. i think customers will

ultimately judge them. i am worried if you will have different regulation all around the world for platforms, for example. which means that the efficiency we are getting from them today that people tend to get bigger than healthcare, bigger than educational platform we're going to lose that with the sustainable goals we have in the world, we want everybody to have the same chance i think that will be bad from thank you for taking the time with us this morning we really appreciate it. guys, back over to you. >> thank you very much we want to check stocks on fastennal. the highlights is in the release. they specifically say the margins went down. they have tried to raise prices to offset the tariffs placed on products sourced from china. they couldn't raise prices enough to offset the general inflations that they felt during the quarter. they're trying to take steps to continue to offset the costs of tariffs in china this is closely watched.

they are citing the china trade wars, an impact on their business we heard this also from basf earlier. >> often viewed as a global bellwether although in this caseb it's more the margin as opposed to top line demand it seems down almost 6% in pre market. coming up, the u.s. investigate digital attacks in france that may end in tariffs. plus the breakdown of j. powell's testimony and as we head to a break. take a look at u.s. equity futures. s&p 500 due to rise about a quarter of a% would put it over 3,000. the dow up 93 at the moment nasdaq looking to add to yesterday record foes up 22 points, we'll be right back. y. but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms,

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still to come on "squawk box," the powell rally, we will discuss and preview what he will say with david purdue. plus, the u.s. and france, taxes on u.s. companies that lead to tariffs. is netflix winning the war

with legacy media? some argue, yes. eeieill talk with rich grnfld, "squawk box" will be right back right back [ music playing ] ♪ when you have nausea, heartburn, ♪ ♪ indigestion, upset stomach, diarrhea ♪ try new pepto liquics for fast relief and ultra-coating.

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welcome back to "squawk box" the stock index futures right

now are all higher across the board. the dow is set to open close to 100 points higher. s&p up a quarter of a percent. we take it up above the 3,000 mark >> the white house now has another trade target france kayla taushe joins us. i understand the wine. i like french wine threatening tariffs on french cars do we know if anyone has bought one of those in the last five or six years in the united states, do you know? >> reporter: possibly collectors i imagine there are some people. >> because they're so rare. >> reporter: it's unclear whether wine or cars will be swept up into this it's expected to be a proportional response the u.s. trade representative is investigating this possible retaliation specifically against france for a digital services tax.

it would introduce a 3% charge on companies that make more than 25 million euros of revenue in france or 750 million euros of revenue overall globally ambassador robert light hauser yesterday said the move unfairly targets companies who are global leaders, it attacks apple, google, amazon and facebook. ironically, it's companies whose size are scrutinized by regulators and lawmakers here in the u.s. as well this move is seen as a proportional and justified response by the white house by hawks and doves and also by traditional critics of tariffs like the top republicans in the senate and the chamber of commerce chamber of commerce' statement didn't necessarily say a possibly introduction of tariffs against france was a good thing, but the introduction of this tax, specifically against

u.s.-based multi-national companies for these services was a bad thing. >> all right, kayla, thank you federal reserve chairman jerome powell giving testimony before the house financial services committee yesterday. >> we see the economy as being in a good place and we're exited to using our tools to keep it there. as we've discussed, theoverall economy is performing reasonably well but we see, what we called cross currents, prince ply trade developments and concerns over global growth. we see those and significant many participants at the last meeting saw those as weighing on the outlook and calling for possibly more accommodative policy >> chairman powell will now testify in front of the senate banking committee. joining us, senator david purdue he will question the chairman later this morning it's always a pleasure to see

you. thank you for joining us >> good morning. >> you saw the testimony, what did you think of his fairly downbeat comments on the economy. >> he's talked about that before i'm anxious to hear his comments today. we're going to probe on that a little bit our economy is doing very well we heard yesterday now we produced 6 million new jobs since president trump was sworn in the agenda is working right now. the trade issue definitely brings some uncertainty to the question i think that's what he's alluding to right now nobly. >> what are the questions in your mind that remain for the chairman >> i want to talk about labor. i think one of the restrictions on our growth right now is the labor force. when you have 7.5 million jobs right now looking for people to fill them. only 5 million people looking for work so there is an issue there the second is inflation. the fed is trying to balance unemployment and inflation i think we got a few more details i'd like to hear based on his testimony yesterday. >> the administration says this

is the best economy we've seen in a long time it's strong on many fronts, including the labor front. senator, how in your mind can you justify a 25 basis point cut or any kind of cut in the face of what is supposedly a very strong economy >> well, i'll leave that to the governors, the board of governors and the fed. that's their job. >> what do you think they should do >> as a sitting u.s. senator i try not to comment on central bank policy. i'll say this i like their independence, what we got going in the xi right now. we have no inflation pressures right now from labor yet commodity prices seem okay it's the uncertainty around the trade issue. we are flushed with cash the capital markets are strong right now. we got plenty of capital working in the economy because of our pullback if regulations, we've seen ceo confidence go up and consumer confidence go up because of that, capital expenditures jumped. they've tempered in the last six months

i think we're in a strong area for capital expenditures >> you should know, you know what that's like senator, i want to push back when you said you are a sitting u.s. senator therefore, you don't want to comment on monetary policy >> that is not stopping a lot of other people doing so. what do you make of the president actually basically tear nook the fed chair? >> what you've heard the president say is he's challenged some of the questions. i don't have a problem with that i do that sometimes myself the primary thing right now is the independence of the fed. the central bank has served america very well. we had a problem years ago, we still do the four banks in the world have the largest balance sheets they've had. they have been tempering that. we had negative interest rates in japan and some places in europe right now the global cost currents you heard chairman powell talk about around the world is concerning. it has very little at some point it has to do with trade. it has to do with what they are doing on the markets

you heard this france tariff this is one of the strongest turn arounds i can find anywhere in u.s. history. it's because we've pulled back on regulation. we put a rational policy in place. we passed a tax bill that makes us more competitive and passed a dodd-frank bill that frees up a lot of capital in small town america with our noble banks >> how much is self inflicted in some way the u.s.-china trade war we have a potential trade war with europe. france is attacking u.s. tech companies. we have a tariff tip with india. some of it is our own doing. no >> well, let's look at what the big picture is telling us. the big picture is president trump is trying to create a level playing field. why is that important? we have to grow our exports. we only eggs port about $15 being offing a products into china, that's ridiculous that's less than australia what the president is trying to do long term will benefit this economy dramatically

we know that we've got to grow exports. we got opportunities to do that. i applaud the president for the first time in the last 40 years standing up, telling the world what we need to do to create a level playing field. >> the fed chair listed yesterday one potential headwind, the debt ceiling >> that is something are you very in tune w. so how much of a headwind could that be for the u.s. economy in your view? >> well, here we are again we're in a crisis mode again last minute. we have eight working days between now and the last of july when the senate and house typically go back in the state the debt ceiling right now is sometime early this year, we actually would have had the treasury not been using extraordinary measures, we'd already hit it >> that will hit sometime in september. we got eight working days now between now and the end of judgment trying to get the appropriations done on the other side, getting the budget deal is moving. secretary mnuchin and speaker

pelosi are supposed to meet later today. i'm hopeful they can break there down we can move in the short term, i think we can get that done >> that it would be two-thirds of this discretionary budget >> what are the odds of getting it done by the 31st of july? >> they're good. a week ago, i was nervous. we did it on humanitarian, supplement am. once the president breaks the log jam like he did on those two issues, i think with mnuchin meeting with pelosi, i think we have an opportunity to do that. >> thank you for your time david perdue. coming up, netflix losing two most popular shows, is it a sign like warner media are gaining leverage or has netflix aealrdy won the game we'll discuss thatf a the break. we'll discuss thatf a the break. >>

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febreze unstopables. breathe happy. mno kidding.rd. but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online in just about a minute with a few simple steps. really? really.

that was easy. yup. plus, with two-hour appointment windows, it's all on your schedule. awesome. now all you have to do is move...that thing. [ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started. . no one is going to compete with netflix in gross subscribers. i plev they have won the game. there is nothing i can see will dislodge them. amazon is in a different business in that it's selling prime, which gives you all sorts of services just among them, video and television disney has the best chance, just because of its very, very popular content. and the money and distribution >> that, of course, isc cramer

barry diller weighing in on the streaming war. netflix is losing as rivals are ramping up competition for eyeball and subscribers s. diller right has netflix already won the game joining us to discuss is rich greenfield, a tnt analyst at btig a lot of alphabet soup first of all, rich, i want you to convince our view, they should be interested in media as we are i think they are in it this whole sun valley, everything we do we love it. i don't know why, should they? >> people are spending more time watching content than ever before the amount of amazing content being created. what we have learned playing off what diller just said is the whole world is actually going to streaming. linear tv, no offense to what we are doing right here, it's in trouble. it's in secular decline. but video viewing is exploding

literally exploding. i don't care whether we talk netflix, amazon, disney plus or hbo max or facebook, you see snapchat doing more shows. content is exploding have you so much amazing content, with more money put in than ever before, this is the best time to be a consumer who loves content. >> we have that discussion s. content still king why is that ever just not, you know >> because the platform matters even more now. >> not as much as content? >> you need content. but you look at something like birdbox. birdbox or murder mystery, murder mystery is not the best movie. i don't know if you watched it on netflix >> i tried to i did not get to it >> but when you put great content in front of the consumer, sorry, good content, not great content in front of the consumer, you don't charge incrementally for it, make it

easy to watch on any device, pick up and start. you don't always need to have the best, people don't watch "game of thrones" 24/7 right now they turn on cnbc, food network you had them talk object about this yesterday people watch things not only high end come dis and dramas there is a diverse set of content people watch every day so when you build these services, you need to have lots of content that fits all different times of viewership. >> you think netflix has a pretty good meat everybody is getting into that business >> that's the difference from last year. last year we weren't sure everyone was going to chase. now everyone is saying, netflix, are you right. there is the way the world is doing. >> can anyone do it better than net flex >> they have the contoept. disney has the best content with the fox acquisition. but remember, content is just a piece of this technology, i mean, the actual experience of

what netflix creates, the global platform, the quality of streaming on every device everywhere in the world. >> why can't disney do it? >> have you ever tried to download a show on amazon prime, vs. netflix. we wouldn't have enough time relative to the second it takes on netflix technology is hard and netflix, that's all they do i think there is something to be said for the only thing netflix does is streaming video. all the other companies we can talk about they do many other things. i think that's a distraction or makes it hard to focus purely on streaming. look, it certainly argues, you think about sun valley, it argues, all of these companies need to get bigger i heard david on here yesterday, you asked him if he was for sale he said no way discovery is for sale. there may not be a buyer because companies like comcast and disney and via com, cbs haven't

merged yet there will be consolidation. >> i was thinking 16 billion or so that's a big number. you'd have to take 30, wouldn't you? >> comcast is a pretty big company. disney is a big company, via koym and cbs. >> wouldn't you have to take 35 oring? >> the headwinds are not going o'way, i call the next five years the let in flicks era, the netflix effect core cuting is getting worse all the companies that are entering the bundle, all the great content, mannedalarian, all these are coming on services that don't require a bundle. i think you will see core cutting. i don't know how much you'd spend, i'd be shocked if you didn't see greater consolidation over the next two years. >> if are you on netflix right now, the question is not oh, no, obviously, they have the momentum it's not necessarily

>> they're not going away right now. >> but, what itself the path and the pace to whatever number of global subs you think is really there, what they need to make the business model work really well was it three or four or 500 million? >> if you think about it, three years ago, if you asked ne your netflix global subscribers in the coming year, you would have said probably 4-to-5 million, call it around 16, million subscriber additions a year. last year they put up 30 they're accelerating q1, obviously, was a good quarter. we'll see what q1 looks like next week. my point is, they've crushed expectations, could this be a 3 or 4 million subscriber business absolutely the scale is pretty incredible they're getting started in asia. they've done incredibly well in the western world, including middle east and europe

it's been incredible asia is the next frontier, they're just scratching the surface in india and japan the middle class in india is bigger than the united states market there is a huge long term potential as they expand overseas all these other companies getting into the streaming space makes it easier for the consumer they will look at the price value of the bundle. comcast still has broadband, directv is suffering, that's a hard place to be. >> in terms of consolidation, who is on the for kale list? should we think of buyers being not just media companies by fang companies? >> the fang companies to date have looked at what netflix has created, what amazon has created and go, why do we need to buy one of these countries we have lots of money, money is not a problem for apple. so if they want to go higher, jennifer anson and reese

witherspoon i think they will hire you all they will hire the talent out of the industry and just recreate a studio from scratch. the existing companies, though, are all going tokind of rush a much as they can to get bigger and big zber with which acquisition? you mentioned discovery? lion's gate, for instance? >> lion's gate, mgm, companies like twitter should be achoired. >> that could add a lot of value as a platform. spotify is a company that should get acquired looking at the global platform it provides. i think you will see substantial consolidation over the years as people realize it's not just content. >> everybody will win. you point out there is still a lot of owe shows people carry. aren't things going to fall by the wayside? >> if you look at "friends" and "the office" leaving netflix

i think one of the mistakes being made is you weren't signing up to watch "friends" or "the office. >> you dengue end your subscription when "house of cards" was over. >> you were board and it's comfort television "friend" isn't on netflix. do you watch something else because there is a gaville other shows on your bucket list? i'm betting you will find something else like you found a murder mystery yet, you are going to stumble upon it? >> i thought i might i might not. in that vote, sandra bullock was peaking. why didn't she die you couldn't steer that thing down i had to suspend a lot of disbelief with old "bird bath. >> you look at the rock, the rock is dog movie on netflix a huge $130 million movie.

>> i thought millennial's were experiential is watching a screen an experience this is never going to go out of fashion? content? >> i think people want to watch content wherever they want on their terms. >> and nobody is going to lose it sounds like really great days for media. >> i think cable and broadcast are going to face real challenges that's why their pivoting. disney threw down the gaunt. they are telling you, the future is not the bundle. you had eiger on cnbc saying nobody wants to pay for 150 channels anymore it's interesting to see, as you launch new streaming services, that increases the hole in the buck, how does wall street hand him the troughs between tradeoffs between new businesses >> can you make prediction, who will buy whom? >> viacom will merge and they're going to make the next step.

this is just the beginning whether it's discovery or lion's gate or mgm -- >> you combine cbs and viacom buying a smaller company >> you either buy or scale up or you're a seller. i don't think sitting still anymore makes sense. the only asset i think shouldn't get bought, we heard headlines of univision being for sale. i can't understand why anybody wants to buy that asset at this valuation today. >> i asked you off camera about valuations between netflix and disney or netflix and comcast. you think it's okay. you wouldn't -- not one is over valued versus the other because of the future, the growth rate >> consumer love and technology are really hard. and the global business. the fact that netflix has people watching is rarely original. >> it's not undiscovered it's a $165 billion company. it was a $30 billion company >> sure. >> people hated it at 30

billion. people hated it at 100 million. >> is it going to a trillion >> it's going a lot higher >> it is >> maybe you know but these things happen. as you look at it over the next few years, this is just the beginning. they're all telling you, streaming is the future. netflix is the future. >> all right thank you, rich. coming up, a preview of today's hearing on the hill, we'll talk fed and the market and chief economist and the futures, the dow is up 94. "squawk box" returns after this break. ♪ or could it turn out differently? my doctor recommended eliquis. eliquis is proven to treat and help prevent another dvt or pe blood clot... almost 98% of patients on eliquis didn't experience another. ...and eliquis has significantly less major bleeding than the standard treatment. eliquis is fda-approved and has both. don't stop eliquis unless your doctor tells you to. eliquis can cause serious and in rare cases fatal bleeding.

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jay powell on capitol hill, take two the markets like what they heard from the fed chief yesterday what does he have up his sleeve today. the delta's company ceo talks to us. plus, evening the score. we'll be joined by the man representing half-of the u.s. world soccer team. find out how he is writing the lopsided pay structure in sports as the final hour of "squawk box" begins right now.

♪ >> announcer: 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 it's already 8:00. live from the nasdaq market site if time's square i'm joe kernon along with mellissa lee we're talking about media, are you sure we're not in a media bubble >> i think when we talk about netflix and streaming. >> are you interested in media >> i kind of am. >> are you talking about trunk and newspapers >> i am not so much an investor, i'm a viewer >> it's media or it's a low bar. >> this is true. >> good to have you here with us let's look at the futures, which are up triple digits, 106 points they'd give up 3,000 on the s&p.

we never closeed that high before nasdaq indicated up about 27 in treasury yields, given up kind of figure them out 2.06% with new highs in the market and 3% gdp and sub4% unemployment, all makes perfect sense. >> we have a market flash. politico says the trump administration has withdrawn a proposal to eliminate drug plans. they are rising sharply, in fact united health is up by more than 2% walgreens up 3%. cvs a gain of 4%, all higher >> delta airlines reporting second quarter results last hour the company reporting adjusted earnings of 275. revenues came inline, delta raised the profits following strong travel demand joining us, delta ceo ed bastian

commented on the ongoing troubles with boeing 737 max boeing does not fly the plane and he says that helped so much. >> we do not fly the max and clearly there was a benefit for the airline in the quarter i don't think there was a significant benefit. clearly, it's not explaining the strength of the brand and the service our people are putting forth. we saw a marginal bench i don't think that's the reason for these numbers. >> let's again take a look at shares of delta up 2%. 52-week highs just over 61. fed chairman j. powell sits down for day two of testimony in congress plenty of questions on the outlook for policies remains steve leishman joins us with more you think after five hours, all the questions would be answered. >> you would think we need more one question was answered squarely fed chairman jerome powells dovish testimony, it's clear a

rate cut is on the way, how big a cut and after july, how many cuts sit one and done or is start of an easing psych that could push down rates over the course of a year let's look at the probabilities for july only. the chance of a cut is 100%, with the chance of 25 at 72%, a chance of a 50 basis point cut at 28% before the testimony, that 50% probability was down near zero he says powell's comments,er dovish to keep alive the 50 basis point rate cut this month. we still think 25 is much more likely it's difficult to look through the pricing of one month in thes markets to the later months. but the market looks priced now for 75 basis points or three-quarters easing over the rest of the year here are the probabilities you got your 100 in july we showed you 75% for september.

september, 60% there is skepticism about the need for one, record high stock prices, low unemployment you already have low rates you trend gdp growth all this suggests, especially chairman powell looking through the strong jobs report the fed is no longer data dependent. he can't predict what he will do, he doesn't know how he will react to the data. >> we want to bring in our guests and former chair she will bear, welcome to you both. i will pick up where steve sort of left off on his report. >> that is how fed chair powell addressed the strong jobs report we got the message toll looked through that one data point. does that sort of discount the data we will get in the weeks leading up to this next fed meeting? >>they are leaning so far forward towards easing it's hard to imagine a data point that will pull them back they were close at the june

meeting. he was far forward in the press conference they confirmed it in the minutes and in his testimony in some sense, you should listen to what he didn't say and what he didn't say at all is push back against the expectation of easing it having decided not to do that it meant he was accepting. in that case, silence implies consent. >> sheila, what did you make of the testimony yesterday. >> and what did you think the fed chair might have left out? >> well, i do think he really emphasized the weaknesses and kind of glossed over the strength i agree, it was highly dovish. i think he linked himself into a basis cut. i'm not sure why they raised in december when they should have hit pause it seems like they're going the opposite direction one good part about this politically, it was a masterful performance. nobody will suspect he is doing there to help the trump administration, even though the

trump bashing of jerome pow em we have been confident, they are doing based on what is good for economy. i have no doubt that's what is driving the motivation. >> you said you weren't really sure of why he would lock himself in to this extent. do you think that he is seeing cross currents that are maybe even worse >> maybe maybe he is seeing something we are not seeing but it was a very strong jobs report i'm very optimistic, i have a true stand with china, hopefully, get a trade agreement there, the whole premise we use low interest rates to drive the economy. we have been doing that a decade now. alan greenspan throughout 12, 13 years, was able to manage, mute the cycles with aggressive interest rate policy it was still over 5% back then a lot of people think that's what led to the excesses that let the tech bubble burst.

there are downsides by doing this he didn't mention that at all. i find that disappointing. >> vince, where does this rate cut fit in to where the cycle is globally it's a manufacturing slow down, clearly. most of the weaknesses in overseas economies we have this anomaly where short-term rates are high across the rest of the world. is this really a response to a genuine threat to the economic expansion? >> a lot of confusion here, including, 75 basis points of ease is priced into markets is not buying insurance that's a panicked response to economic weakness. when you look around, it's hard to see that sort of weakness in the u.s. economy so more than anything, i think you are right. the fed feels uncomfortable sticking out among the community of advanced economies central banks and that pressure on the dollar, the force of low rates, you know, $13 trillion of

sovereign debts and negative yields around the world. that's leaving them to want to get into better alignment. one point to sheila, sheila's point about what the chair didn't also say, there was no admission of guilt everything was late breaking developments, that said, here is this new risk to the noble outlook or risk on trade there was no sense that, gee, maybe that last move in december was a little too much or maybe we haven't gotten the inflation we expected that led us to this tightening we're correcting that and the problem is, if you don't admit that, then you are probably not acknowledging it in your own discussions. >> steve >> i was just going to ask she louisiana i think sheila behr probably dealt with the federal se serve at the fdic than any other chairman, because she was with them lockstep during the crisis, working on policy.

she larks you remember, there was a dynamic on the federal reserve, you had your hawks that kind of limited how far you'd go >> right >> you had your doves that were like let's go all the way. as a reporter, you cover that dynamic. i'm missing that dynamic here. when you look at the federal reserve now, do you see the same old idea there are some people that say let's not go that far and some people saying let's go all the way here or everybody says, let's cut, we are all on board? >> yeah, it seems to be a unified front at this point. you know, i think there again, i think there is some dynamic with the president unfortunately bashing the fed and chairman powell personally. my guess it's feeding into that unanimity. i don't sense the more robust discussions we are seeing previously you are seeing that on the supervisory side they're still easing on the supervisory side too >> so are you more on the left brainer catch or the randy cross

camp i'm going to talk too randy later today? >> i know randy well i served with him in the bush administration i have respect for him i am in the moral camp i think if they're going to keep this party going with the asset bubble you know highly accommodative monetary policy creates, they need to be tightening, not loosening on supervisory policy they're not leverage loans a lot of worrying about it fought doing a lot about it. no chemicalistic buffers there are a lot of things they are not doing now. i think they are right on that for sure. >> guys. we will let you go we appreciate it sheila will stick around we want to discuss millennial's and credit cards, called invest in you, ready, set, go, the microinvesting app sheila is a member of the advisory council she has an op-ed out, sheila,

the numbers are staggering in terms of how many millennial's get caught up in this bad debt cycle? >> it is, they're sharing, after early on showing a bit of a version, especially the credit card debt, they're all in now, and not managing it well i think that's unfortunate it's as a society, we bear some responsibility for that you look at their life experiences. they lived through a crisis caused by too much debt. into recovery that was generated by trying to borrow at very low rates, punishing savers, rewarding borrowers. they are encouraged to take out student debt to pay for college our government has been highly profitable, too, during most of their lives. i think they're confused about it i don't think they know how to manage it or understand it >> they don't care about salary. they care about workplace culture. >> that's what we were talking about earlier, huh >> there is a bigger problem >> you do need to earn a paycheck, though, it helps with your debt service. >> i think i'm easier on

millennial's and harder on baby boomers, my generation i think financial basics they don't get or understand. front and center of that is debt what is it, how do you use it? i think there is a real drift. i was pleased to see the treasury department to come out with a recommendation to make a financial literacy mandatory, at least at the college level i have been a long-term advocate for that it should be in court year after year it's not millennial's are a pronounced problem. let's face it, the whole society does not do a good job >> is the core education, lack of education or do credit card companies bear some responsibility >> i think they bear some responsibility they are cynical about it. some of them there is a lot of research that shows that the millennial's like the big up front rewards, even though the ability to transfer and as your balance might be a better bet for them. some of the issueers are buying into that with aggressive marketing so, i think that's

unfortunate. >> sheila, great to have you, thank you very much. you can seed sheila's piece, visit cnbc.com, invest in you. we should know comcast centers are investors in akorn. >> coming up, a repeat world cup winner still vastly underpaid when it comes to the sports biggest tournament what are the lopsided economics behind this? how can soccer leaders get it when we come back? we will try to find some answers, the man whose company represents more than half of this summer's championship team. stay tuned you are watching "squawk box" on cnbc >> hey! i'm bill slowsky jr.,

i live on my own now!

i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. . yes, we play sports, yes, we play soccer. we're female athletes. we're so much more thanthat ar you so much more than that are you more than a fan. are you more than someone who just supports sports are you more than someone who tunes in every four years. >> that was soccer star reckon rappinhoe at new york city hall, following the u.s. women's national soccer team

america defeated the netherlands on sunday to win it's fourth world cup. we will talk about equality in sports we head out to sun valley idaho, julia boorstin joins us with a special guest. >> reporter: thanks, so much, i am joined by casey wasserman, a super sports act you run a large sports agency. wasserman. you are now announcing a new division, the collective focused on female athletes tell us about this. >> it starts with incredible leadership, elizabeth lindsay, some of the most talented executives in the industry who have really pushed our company forward. we represent some of the greatest athletes in the world we advise big global brands how they connect with consumers. obviously, women are incredibly important. so taking that expertise that leadership, to bring it altogether so we can speak to the scale that's required in the world today under one banner

taking advantage of all of your assets >> so you worked with nike, in helping them deal with their issues around not continuing to pay their athletes and this is something that became a huge issue for nike and the touch point for the industry, what was your role in that what do you think that whole issue will mean for a few more athletes going for? >> well, lindsay represents an incredible group of athletes, a shoe renewal and brought it to my attention pregnancy was treat similarly to other athletes, to her credit, she pushed hard. i had relations with nike and to nike's credit, a year-and-a-half ago they made a change in that contract i think what happened afterwards is nike didn't go about talking about it in the way they should have but they did the right thing with the clients our leadership in the industry allowed us to push that forward, frankly, it's a great thing we did for the clients. >> you represent about half the

women's soccer team, it seems to me like there is a moment right now happening. how would you describe the response to the soccer team's win and what they will mean for your business going forward in terms of sponsorships and new media deals? >> well, let's start with they're an incredible group of women who have been the most dom noont soccer team maybe in the world let alone women's soccer they are a dominant soccer team period they are an incredible group of athletes and leaders in our world so to win at this moment in time is incredible. to have leadership on that team like megan and alex morgan and others to really be an incredible voice the way they have handled this entire process this situation, to be xend and our job is to serve them in every way we can, which is about creating more opportunity, more awareness, more avenues for them to be leaders. they are an incredible group >> for you as agents, do you

think these athletes are seen as having an audience and a fan base much bigger than women and young girls? >> i certainly hope so they do. they've captivated this country. the country of france was completely engaged in the world's world cup to their credit i can't tell you how many people, the first question they have me. how many people do you represent? do you represent megan it's incredible. i hope the world recognizes how powerful they can be >> they have been focused on equal pay, the fact that they are getting paid less and have more revenue and higher ratings. what will change that? >> it's an untenable position for soccer they should be paid equally. i don't know why it's taking so long or a question they have four stars on their jersey they are the model of success in every way, they deserve equal pay. it shouldn't be a conversation that we're talking about it, if they have to win a world cup to make it a thing is crazy

this should have been done a long time ago. shame on u.s. soccer for not doing more. >> how soon do you think that will be? >> the day it brought up and made it a public issue it should have been done every day is run with day too long >> now that world cup is over, we're seeing phenomenal female athletes play in wimbledon, what itself sort of next big thing that will continue to raise the profile with some of your clients? >> i think the league structures, the wnba, which season is going on right now doing incredible things for women sports, women athletes my daughter looks up to league players. it continues to have the support of not just nba owners, the larger community obviously of the olympics in 2020, where there are more women on team usa than men they win more medals and they are the kind of people you want your kids to be. so whether it's katie la deck ki

or our track stars, you will see incredible performances in tokyo. we need to have every chance to achieve the success they do on the field off the field. >> thank you for taking time to talk to us today guys, over to you. >> july yellowstone national park thank you very much come -- julia, thank you very much. stay tuned you are watching "squawk box" on cnbc we can do the screening at her house. hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪

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hypersonic air travel. >> we are the only station at the company whose she'ship is shaped like an airplane. welcome back to "squawk box. the future versus added to the gains in the pre-market session up 117 now on the dow and the nasdaq indicated up 26, s&p up 8.5. coming up, breaking nick data, the latest reason jobless claims out in justines mut we will have potentially mark-moving data for you as "squawk box" returns whoa. travis in it made it. it's amazing. oh is that travis's app? it's pretty cool, isn't it? there's two of them. they're multiplying. no, guys, its me. see, i'm real. i'm real! he thinks he's real. geico. over 75 years of savings and service.

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welcome back to "squawk box" on cnbc, live in "squawk" square. we're trying to get that started virally. we're seconds away from the latest read on cpi and jobs will claims, the futures are now 120 ahead on the dow jones s&p would be up above 3,000. the nasdaq is solidly higher to new ground of 27 points, the ten

year treasury note is now at 2.06 this morning. the surge to 2.1 powell talked yesterday, it fell below 2.6. rick, you have some numbers for us,? give them to us, please. >> yes, the buzzer, please let's start out with jobless claims, sham we? they moved from 220,000 down to 209,000. so we shaved 13,000. that was slightly revised. it was originally released continuing claims moved up a smidge from 1.69 plus million to 1.723. now for the money number, the cpi for the month of june up .1 on headline, that's actually hotter than expected we were looking for unchanged, following 110. strip off food and energy a bit hotter up .3, year over year up

1.6 and my number maybe year over year core 2.1 it started in march of 2018. this is now the 16th consecutive month. the cpi obviously should have more of an impact on the psyche of investors tan ppi you know, it's not happening it's definitely warmer tan we are anticipating on the core you are right, joe, 206. matter of fact, we settled yesterday at 206 the day before, now we popped up the 208. i find it very interesting to find whether we agree or disagree on the signals that the fed chairman is sending regarding easing if it will have efficacy in controlling the issues they are trying to tame in the final analysis, it is very interesting that the curve continues to hold its steepness. the shortened is really where

all the rambunctious trading was. we haven't dipped below 2% it will be fascinating to watch the particularly 30-year bonds the 30-year bonds were really quite oblivious to some of the pressures pushing rates down and prices up over the last week-and-a-half or so over to you. >> we have watched the ten year pick up in -- we saw the dow up 180. a small percentage move. but i guess it's easy to figure. it's a little loter. anything that throws any cold water on the rate cut scenario, people don't like it god forbid the economy grows more than anticipated. >> we all know what this is. we have to figure out how much of this is being you know fed is a crutch for the equity markets. you have to wait and see. >> where did you get florida >> or some guy

>> i bet you on the floor. >> i took it from him. it was a favor so no worries. >> if we talk about having a boot on your neck. are you ready for it do you have that prop ready, too? >> reporter: i wear those props every day, hopefully, i won't have this be a daily prop. at least not any time soon interest go ahead. >> thanks, rick. joining us to talk more about the economy and this latest data, we are talking about jim paulsen is here. first, let's get to cnbc economic reporter steve leishman for his take. >> yes, thanks very much, mike there is some firmness in this report here. kind of interesting that fed chairman jay powell has kind of come off his idea that some of the decline in the cpi and inflation number was transitory just as some of the transitory things reversed themselves first of all, have you this big decline in gasoline prices i think that appears to be

reversing itself a big increase in power prices, 1.1% remember we went through how there was a change in methodology, big data, now it's come back as well, medical care has been up 0.3% and some other factors in here look like they're pretty firm, including housing, shelter, this is going to translate into perhaps a somewhat higher pce core which is what the federal reserve uses most the other thing that's interesting is the jobless claims number tells us that the job market remains pretty strong and maybe that 200,000 plus number we got on friday was not a fluke. so it's pretty interesting you still have this firmness in jobs and firmness here in inflation. we'll see if that continues. >> it certainly will, steve. jim, fit this into the general outlook here do you think the markets will have to do a rethink on maybe not whether we get a cut in july and how deep this will go. >> we're not making this very

easy, are we >> we keep challenging the fed will be cutting rates with a pretty strong job market and inflation turning back up to full employment. >> back at 8500 maybe? >> i think they will do t. but it's difficult to make the regular case for easing right now. i think there is still a good case on two fronts one is the fed funds rate is so out of bounds with any rate in the world, just to get in the same zip code as the rest of the world assesses things. and then i still think, too, that we got, they can fully take that risk oust of the marketplace. i think with the hot cpi number today, the fed looks at its two risks. which one is a dual mandate. which one is riskier i still think you come on riskier as the growth side of the equation and if inflation comes up, you know, to some extent, i would like to see inflation come up before the next recession if we go into the next session

with a building to show overheat, that might be a success. i think the fed you know is going to go ahead and but they're not making this easy. >> no no, they're not how are that priced, both might have a little bit of life in it and the fact that the fed maybe is going to do the one and wait and see for a while. >> i think a lot they're one and done i kind of do i'm kind of interested there is not a lot of people expecting aksccelerated economi growth hardly any economists are predicting that. yet if you step pack from everything, we're good, we bought the money sly 1% to 2.5 we got 130 basis point drop in long-term yields and yield ace cross the spectrum we got fiscal deficit as a percent of gdp from 3.7 a year ago to 4.7%. with all that still lakes, normally, everyone would be

predicting a pickup and virtually no one s. i think it's going to pick up and that's why i think the fed may cut this rate. then i think they will be done, i think rates might be going up before the year is out as the economy starts to go pack. >> have we seen, steve, fed funds futures move for later cuts at this point >> you know, if fall sen wasn't so darn compelling, i wouldn't lift that up i'm clickening on it now it's going to refresh in a minute i don't see it really move no you are still 100 on july, you are still 77 on september. so, no, that rate cut is still pretty much baked in hey, guys, we have sheila there. i didn't know she was going to be there i didn't look at the guest list. i was going to call her. i have an interview with fed choice chair randy quarless. do you mind? i was going to ask her about

some of the banking changes out there. let me say one other thing jim is right that most people are predicting weaker growth the kind of belief in the continuing benefits of the tax cuts, people pretty much dialed out along with the idea i think they wrongly dialed in the idea that the spending from last year was going to be in 2018. but, in fact, it seems to have come over and the journal wrote a story about the missing stimulus in the national accounts, i think eventually shows up can you put a number on that are you 2-and-a-half to 3? are they getting the glorious 3% number again this year >> i don't know about 3 i think we're back in the 2-ish to two and a yartquarter, to two-and-a-half it's been wonderful for bringing unemployment rate down and wonderful more futureing the stock market up. i don't see where that is so bad. we had three growth in the first quarter. we are probably around 2 in the

second the full also and intern also of the second quarter, steve, will be better than the first and i just think people are a little too pessimistic on this slowing down one big oddity we've never had fiscal stimulus this late in a psych to him this magnitude before i think that will screw with everyone's traditional playbook here yield curve may be inverted. this is the first time we had inverted yield curve with expansive juice. i'm not sure which one will win out. i suspect it will be fiscal policy. >> we will see if that good news remains good news for the markets. steve, jim, rick, thank you very much. coming up, what if you held a certainly media summit and social media didn't show up? well, that's what can happen in washington at least when it comes to the major players. we will explain and jeffrey epstein, he is facing charges with underage girls. his fortesun don't appear to be

all that's advertised. we'll have that story when "squawk box" returns >

. their new resources on jeffrey epstein's coverage of underage girls there is a lot of the piece, a lot of good reporting. but of the names, the bold faced names, i'm from ohio weeksner how did he get ron pearlman down in palm beach? it's bizarre that this guy's scope and his contacts were so wide i mean, he must have been a pretty engaging guy. right? >> yeah. i mean, he strikes me. i have never met him personally. he strikes me as a guy that has a townhouse and people from culture, business, politics,

come over for dinners, long discussions, and he has ties to harvard at one point he is known as a mathematician even though he doesn't have an undergraduate degree she philanthropic. lots of ties the weeksner introduction. apparently he charmed the chairman of aeon insurance on an airplane at some point in the fine 80s who then introduced him to weeksn wexner's team >> a meeting on a plane, leads him to the ceo of aeuon. >> he was unhappy and property epstein on to manage his money it seems like what epstein was doing according to our reporting. i should say i work with a great group of colleagues on this is sort of a family office type of thing before we used that term he would manage wexner's wealth

and hills family members and their wealth the exact nature is unknown as is the fee structure you know, if he were charging 1% for example of somebody like leslie wexners assets, that can bring in sizable fees. we don't know if that was what he was doing. >> we commonly referred to him as a hedge fund manager, obviously, given him the billion fair title none of it seems to fit. not a lot of a foot print in terms of trading activities or pilings. >> it shows his real estate is 2 million zone he has an island in the caribbean and a fabulous townhouse. >> not one of the best islands, i don't think. on the lower end, not in the best neighborhood. >> right >> so anyway, he has a huge ranch in new mexico.

he has a number of properties clearly worth real money in terms of his assets and cash, we don't know. he was a private banking client of deutsche bank we talk about that and the fact that he was actively currency trading until earlier this year when deutsche bank parted ways with him as a client >> for reputational bizarre. >> reputational issues >> as opposed to 12 years ago when the charges were first brought. >> that's the other odd thing, in 2008 as reported, there was a similar set of charges of what many regard now as too light of a sentence at that point you would think people would fall away he did apparently break ties with wexner and apollo management people continue to contact him socially there was a co-investment that black and some of his children made with epstein in a small environmental admissions device company as recently as 2011 and

reportedly, epstein was on the board of leon black and his family's foundation until 2012 i should add the blacks are now saying that was like a typo. it shouldn't have been on the 990s actually he resigned in '07. there were social ties that went on. >> what will you do the rest of the day, theing in week. this story, where are you going? >> i think i will respond to all the incoming tips we are getting about lpts of epstein'scareer that may be questionable or deserve further inquiry. my colleagues at the "time's" are doing great work >> your boss is here, ed lee you told me you are running the entire - >> no. >> did we have to clear it with him? >> absolutely. he came up with my talking points you want to come on? >> exactly i had the cards back here. >> she is watching >> i'm here for you, joe

>> i just wondered >> in all seriousness, great jim stewart led this effort. >> i think as i don't know how much is there. but we're owe it's not necessarily a business story until you start taking these angles i'm not saying we have a pure interest in these things it's such a big story. >> we follow. >> you didn't talk about steve hoffenberg, a former owner of the fork post and convicted fraudster. there is a forfeiture element. for other assets thatry not able to 62 you are that when needed is going to be a real story line, not to mention people are keen to know more about who this guy is, how he became this pugent soundtive this pugitively wealthy figure president trump convening events on social media, it's

lacking key participants >> mellissa, it's called a social media summit. but there are no social media companies. in fact, i am told they were not even invited instead, president trump is meeting with conservatives who say the platforms are biased against them this morning, the president used twitter to tout the summit saying it will be very big and very important and would he be president would you tell social media? he said, yes, arguably he says they are abusing section 230, which gives them legal protection from users post and that's the bedrock of their business model however, i suspect there will be a lot of debate whether to change or get rid of those protection also, meanwhile, internet companies are trying to run offense on this a trade group that represents the major platforms is joining forces with 14 other conservative groups to oppose any changes to section 230. in a letter to capitol hill. they said content moderation by

large tech firms is far from perfect, but weakening or removing section 230 would strengthen the hand to silent speech trump is scheduled to speak at 3:45, we will keep you posted on what he says, back over to you. >> thanks, appreciate it facebook is not invited to this afternoon's summit, but it will certainly be discussed. the company has been under fire in walk. now silicon valley may be shifting investment views when it comes to social media joining to us talk about this from from a partner at venture partners and here with us the "new york times" corporate media reporter and cnbc contributor ed lee. welcome to you both. what do you make of this -- of facebook not being there, ed >> we should call this what it is it's a campaign event at the white house for a lot of his supporters online. right. if you want to do a campaign event. if you want to calm it a social

media summit and say this is a way to conven people within this circle and talk about issues in terms of whether there is censorship or not. that's a different matter. i don't think that's what this looks like >> hi, >> good morning. thanks for being up with us. i don't know what time -- my god. >> no problem. happy to be here we're early stage investors. we invest in seed and series a companies. a big consumer trend we're seeing in terms of how people are thinking about the world around them is how do they gather, where do they find community, where do they connect. and historically, that's been across platforms like facebook, twitter, name all the social platforms. increasingly, we're seeing this swiss army knife type approach not working as effectively for users. there's too many things going on, and it's becoming unwieldy because of that, we're seeing a trend around companies and founders going out and starting businesses that are more single

purpose. a place where a user can do one or very few things and if you think about some of the conversations that are happening on facebook or some of these other social platforms, let's say communities that are talking about their intimate health details, people living with medical conditions or families who have children with medical conditions, and as we think about how consumers are perceiving and viewing the trust or the lack of trust on some of these social platforms, we see the opportunity for standalone platforms that can begin to form and develop and be billion-dollar businesses where people find more trust around very specific things, such as health >> that's interesting because so much of the investment thesis right now in the valley, at least for the last few years, has been anything that might remotely take on facebook or google is not investable you shouldn't put money into that seems like you're getting at something here that sort of gets around that, or has the sentiment shifted? >> so there are a lot of

behaviors that live today on facebook or other social platforms and not all of these behaviors are well accommodated for. these behaviors, we believe, can be standalone businesses an example is discord. that communication around gaming and the interaction in these gaming communitiesing happen on a platform like a facebook or a twitter, wherever. but the fact that discord can live on its own and how these interactions and intimate, connected ways really exemplifies there's appetite for that and increasingly, especially with younger generations, with gen z, which a lot of investors are thinking very deeply about, how do these individuals think, communicate, perceive the world around them. there's tremendous opportunity to build something that's very unique for them and for the way they live and exist and create in this world. >> that's what the summit is kind of getting at, too, if you think about it it's our cipher, our little group here we trust each other. we like to talk to each other, including trump, right >> but in terms of these investment dollars going into these sort of very specialized,

smaller companies, that sort of gives into the idea that the size of facebook, the size of these mega platforms are really, you know, consuming all the oxygen in the room that's the argument for breaking up these companies >> yeah, let me give you an example. we just invested in a company this past spring called co-star. it's a social app centered around astrology astrology has existed for over 2,000 years in many different forms. if you go on facebook or instagram, you'll see lots of hashtags and post where is people are talking about astrology and using it to find connection and community we see there's an opportunity to unbundle that out of these social platforms and build a standalone app and a standalone social community that's entirely centered around this that's the entire if you wepurpf co-star. we're seeing this kind of human connection on this social platform what's really exciting is i think especially in an era when

people are more lonely, more depressed, there is this desire to connect around these very specific interest groups >> just with everything you said in mind, what was your initial response when libra was announced? powell was talking about it yesterday. just off the top of your head, what did you think and where is that headed, good/bad for facebook, will it last >> so there's a lot of interesting things happening in the market right now, and there's opportunity for these big platforms to capture different parts of it, whether that's a marketplace, whether that's social, image sharing, whatever it is i think it's an interesting space for them to get into and for their users to have exposure too early to tell where it's headed, but clearly a lot of appetite and interest for people to see what are the other things that these platforms can offer and whether it's something that consumers will latch on to >> okay. i would ask you, but we're out of time.

>> next time >> yeah, next time if you have time >> whenever you want you ask me >> thank you for taking the time to come over and hope to see you again. let's head down to the new york stock exchange jim cramer joining us now. i was just looking at your twitter feed i always try to do that to figure out what you're thinking about. i can't anticipate -- what's on your mind today? delta on your mind we try to stay away from powell as much as we can and stay in the real world >> i think that there's a presumption that earnings are going to be bad or else powell wouldn't be doing what he's doing. i think that presumption is wrong. i think there are a lot of companies that are making a lot of money, but they're not doing it with as many people i think that when i look at what delta is doing and what i know delta is doing behind the scenes to make it so the technology is

better, i think these companies are very shrewd. any pickup in business at all, they're going to make a lot of money. delta had some deecent business. we've got to stop thinking powell is looking at earnings and start thinking about powell looking at these aggregate numbers and saying there's no inflation, let's just cut numbers and get back they're so out of whack. we changed the inverted yield curve back to where it should be our rates are way too high next thing you know, we have a real bull market going i think that's going to happen, a new leg to the bull. >> we got the china truce, and the entire sell side street said be careful because this is one and done and there's not going to be anymore positive developments now that we got that and the market -- i said, i bet you the market keeps going because everybody is at 2950 on the s&p. here we are. >> oh, look, morgan stanley, firm i love, earlier this week

said, look, put money where your mouth is, sell stocks. i want to put money where my mouth is, buy stocks >> i know. i'm going to watch that call >> joe, i hate it. >> i am hoping for it to be wrong. >> my wife said, why are you so positive i said, i know i should turn, i just can't >> you need to yore hu'alf full better to be half empty. thanks, jim. johnson & johnson is a baby company. but we're also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. from the day you're born we never stop taking care of you. from the day you're born take prilosec otc and take control of heartburn. so you don't have to stash antacids here... here... or, here.

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final check on the markets moderated a little after that

cpi number but still positive across the board almost 100 points on the dow the s&p would not be above 3,00 now. hopefully these sell side guys can get it up to 2850. make sure you join us tomorrow "squawk on the street" is next ♪ ♪ good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. it is powell day two this time banking after paving the way yesterday for a rate cut, steepening the curve by the most in a two-day period europe mixed bonds over there continue to see a significant selloff. our own ten year near 208. core cpi runs a bit warm our road map begins with s&p 500 3k th