good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick with brian sullivan brian, long time no see. it's been three minutes. >> i know. you might remember me from such shows as "worldwide exchange." say hello to my friend at the coffee cart outside. i miss him >> we will andrew will join us later this morning. he is live at the aspen ideas festival he has special guests like david rubenstein we will be joined by guest ken langone. he will be here on set with us on this monday morning, things are looking good if you are

bull the dow indicated up by 100 points 117. s&p futures up 20. nasdaq indicated up 84 stocks surged last week. the dow for the week up 5.4% the s&p was up 6.5%. nasdaq up whopping 7.5%. if you were not involved, you missed out on a lot. questions if this is the end of horrible times or the rally in the bear market. look at the averages from the record highs from the gains last week dow is 14.75% from the high set in january s&p climbed out of bear market territory. it is now down 18.8% that is right. just 18.8% from its january high that is still an incredibly lousy year nasdaq is down more than 28% 28.4% from the high it hit last

november look at what is happening with the treasury market. yields at low levels compared to the last couple months 10-year treasury at 3.17%. >> you still get paper statements on the 401(k), do yourself a favor take it from the mail to the garbage. do not open it it is ugly unless you were all cash think long term. one piece of good news is that gasoline prices are starting to tick lower national average fell about 4 cents. don't spend it all in one place, becky. $4.90 a gallon 12 cents below the record highs. california, according to aaa, average price is $6.32 crude oil is holding steady at $107 this matters for stocks, becky evercore put out a stock strategy note. they expect the s&p 500 may

rally in the short-term back to 4,000 before resuming down trend and falling back below 3,500 they don't see stocks stopping their fall longer term until gas prices turn around or continue to move consistently and significantly lower. gasoline prices, apparently matter to the stock market, too. >> because at this point, we are watching gasoline prices to really cut into consumer confidence and affecting people's travel. although, maybe not this week. aaais predicting 47 million people will travel 50 miles or more from home over the independence day weekend that would be an increase of more than 3% compared to what we saw a year ago in 2021 just shy of 2019 levels.

that was when there were not many people flying just driving because of covid. 47 million people are expected to travel this weekend concerns over flight cancellations could drive the increase brian, let's get back to the point and the markets. is this a temporary pause or will it get worse? it is tricky if you are trying to trade on the moves if you feel confident or not. >> one thing about gas prices, they are inelastic you think people would stop driving. they don't most people drive or fly because they have to or want to enough that they deal with the higher price. they will grumble and it is painful. it takes six-to-nine months to see economic drop off with the spike of gasoline. we did the story in the rbi in

wex, becky, about rents going up forget gasoline. energy costs this winter will be so high. we're seeing demand for air conditioning which will be so high and if it continues to get hotter, power costs will continue to go up. the consumer is getting whacked by gasoline, food, rents are too damn high. utility bills going up a scary time for the consumers >> those are the inputs the fed has little control over by raising rates. it is not likely to impact food and energy it would be tricky to cut off inflation that has been running rampant in those areas of the economy. you had an interesting conversation this morning about how rates could be going higher. much higher to tackle inflation.

if things fall off the cliff and you get into a bad recession and you look at europe you have done an excellent job of talking about the troubles with natural gas in particular if things get bleak there, especially this winter, could you be sitting on a situation where central banks there have to think about lowering rates? >> that's it thank you for that obviously the war, putin's insane war, is part of it. we were in uk in november, becky, talking about the gas chriss crisis in europe this was before putin invaded ukraine. they are trying to sell it as a putin story. this is a 20-year or 10-year policy disaster in the making. you can shutdown things. dirty coal fine should it down go to wind and solar you darn better make sure if you shutdown a coal plant that you have the back-up power to cover

the cost that is the issue. shutting things down without making sure that you have enough of that power. by the way, when it comes back to the previous point, becky, give me your over/under. anything less than blank hours and you are driving. for me, eight. eight or nine hours or under, i'm getting in the car rather than hopping on the plane. what is the quick rule of airline travel >> for me it is 10 soror 12. that is an impact of delaeys and problems of getting through the airport and kids through the airports we will drive 10 or 12 hours to see family rather than get on an airplane less to do gas prices, but airline delays and not sure you will get there and get stuck

>> last point to button it up with inflation and higher rates. think about this credit cards are revolving credit you can raise rates any time you want gasoline prices may tick down, but everybody that got the 0% financing for a year open this visa card. people better check revolving credit rates i guarantee the rates have gone to 20% paypal will have a buy now pay later with the max apr of 27%. buy something for $2,000 think about this watch your revolving credit rates. this is a sneaky hidden part the inflation story. not enough people are talking about it we just did. g7 leaders in germany. kayla tausche is with us meetings, kayla, started

yesterday and continue today we have the nato summit in madrid tomorrow. what are the key topics today? >> reporter: they have been talking for the last two days in the alps on matters of infrastructure and military assistance to ukraine and pledging to assist ukraine in its efforts to counter russian invasion for long as it takes. you see the host county here at the g7 assembling the world leaders for the family photo it is happening sooner than expected because of the inclement weather. the group of g7 operate during times of crisis. g7 was formed in the wake of the asian financial crisis in the '9 '90s g8 and the financial crisis. the largest economies trying to get together to solve problems

and figure out how to make policy across the board that would lift the countries out of rece recession. here the countries are on the brink of recession caused by the former member vladimir putin, whose russia was part of the gog8 olof scholz did not say in that russia would be uninvited from the g20 in indonesia in november these leaders have suggested that ukraine should have a seat at the table if russia is present. earlier today, ukraine's president zelenskyy urged leaders to end the war by this winter according to two european diplomats. whether that is possible remains to be seen we heard top military voices say perhaps september is the earliest you could see some negotiated settlement in

ukraine. the question is what happens after that can the sanctions genie be put back in the bottle sanctions are not designed to be permanent, but perhaps russia cannot go back to business as usual. we are trying to get a look at what the leaders have decided. it is a crisis moment and that is the posture in which they are operating. becky and brian. >> i'm glad to hear you bring that up, kayla what we heard over the weekend was talk of hundreds of millions of dollars going to renewable energy and the climate that's fine. we doid not hear how they were trying to negotiate the end to the war as russia is hitting apartment buildings in kyiv. they should talk about what is being done to end the war. deal with putin later.

end the suffering now. we haven't heard a lot about it. >> reporter: there is an acknowledgment as the war ends its final stages that vladimir putin may get desperate and seek to use more rocket fire or missile fire and perhaps even remote possibility of some nuclear weaponry that is the worst-case scenario that the leaders have been discussing behind the skocenes. you are right, brian there is a discussion about the negotiated outcome in the end, the western leaders say it comes down to what ukraine and russia are able to decide on their own. the biden administration was asked in recent days if the u.s. would be pushing ukraine to cede territory to say all right if that is what russia needs, we'll give it. the u.s. is not urging

ouagado one way or the other ukraine needs to do that whether that deal is on the table remains to be seen >> kayla tausche, thank you very much another developing story russia could enter the first major foreign debt default from over a century the grace period on two international bond mpayments ove $100 million lapsed last night russia attempted to pay in ruble and it was blocked by sanctions. becky, russia claimed it could have paid the debt, but western banks won't accept in rubles and russia is not paying in dollars. the first foreign currency debt default by russia since 1918 >> with another vladimir lenin. they would not pay the get the

czar czars built up this is brought about the sanctions. it is brought about by the strict rules implications are big it is raising all sorts of questions about what the bond holders do the international investors and whether they go aggressively and go after this or the more likely scenario is sit back and bide their time there will not be other international funds coming through. that is the impact of the sanctions to make sure that international investors think long and hard before investing additional money in russia it is a slower and longer long-term vice on the country. it hasn't impacted russia to this point because oil and gas prices have risen sharply and

still able to sell on the international markets. >> becky, we showed russia is selling as much crude oil around the world as before the sanctions and war. indian buying is up 658% china is buying as well. it is likely vladimir putin is making as much or more money from oil around the world as pre-sanctions. it is not coming to the west the global balance of shower sh power shifted. we saw prime minister modi coming into g7 if you get india on board to back off russian buying, maybe you have something right now, vladimir putin is making plenty of money globally. not from us. >> if this is a global market and russia is selling as much as before, how come oil prices have

risen? is that the demand picture and people coming back post-covid? where would they be if they were not able to sell oil where would prices be? >> i think the war is playing a part remember, oil prices were $90 at the end of last year they were already well on the way up what you have, becky, is masstive dpmass tive drawdowns from the fringe producers. el salvador. they produce a couple hundred thousand barrels a day the prime minister said they may shutoff in the next 48 hours libya has had a lot of problems with civil unrest. blocking ports nigeria. some of the production facilities are getting old you know that oil facilities need billion i dons of investme.

you have the marginal producers. el salvador and libya and nigeria. they are small, but if you take them offline and you have five or six, you have a tight global market >> g7 may wants to put pressure on stop buying it. if they are successful and nobody buys russian oil, how much of the premium in wti it is a tricky situation >> two ways to look at it. russia keeps producing nobody buys it and prices crash or russia keeps propducing and people buy and it spikes to $200. >> either scenario could play out. we have a lot of scenarios to play out on "squawk box." coming up, dow futures are up. they are up. we will see if we can continue

the momentum as we close out the second quarter, we have the strategy session. and later on, ken langdon will join becky in times square. you always want to hear what ken has to stay. stick around u need t. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire ♪ ♪ maconnecting to opportunityon. is just part of the hustle. ♪ ♪ opportunity is using data to create a competitive advantage. ♪ ♪

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through projectup, comcast is committing $1 billion so millions more students can continue to get the tools they need to build a future of unlimited possibilities. welcome back let's talk about the markets and your money joining us for the trading week

and week is kevin anynickelson dana doerson friday was the best day since the jackson 5 was topping are the charts we'll take it. is it a short-term bear rally? >> i think at this point odds on recession are coming in 50/50 if you look at the pundits. it is common to have the bounces during a secular down trend. could we be at bottom? it means inflation is peaking. it would be nice if that is the case it will take more than what we have done to tame inflation.

we are not at bottom we may go up this week the long downtrend is going to come to bear that doesn't mean you shouldn't buy. don't try to time the exact bottom >> kevin, it seems everybody we speak with says the same thing or a version of it stocks can't stop going down until interest rates stop going up we had a huge move at the beginning of the year. the deirty secret of the 10-year treasury is they are in the same place. we are at the same level from 60 days ago have they stopped making aggressive moves >> they stopped making aggressive moves i don't think we have seen the peak in yields the fed said they will fight inflation at all costs they will continue to raise rates. that is why we think that yields

will go higher for the 10-year treasury we think that from the standpoint of equity markets, i agree with dana here we have not seen the bottom. we will be range bound at 3,400. consumer net worth has gone down that is typically going to help with the equilibrium of supply and demand the problem is this is a loop we have here. you know, we have the optimism in the market and all of a sudden, that will drive prices back up. at this point, i think we're going to see the 10-year treasury go back up and touch old highs around 3.5%. >> what will that mean, dana, for the equity market? can stocks withstand a 3.5% 10-year treasury and whatever 3.8% funds rate?

>> certainly i agree that is probably among the single biggest concerns the market has to contend with and why i have to say we have more to deal with before we're on the other side think where inflation is now fed is fighting it they have been clear they are focused on that we cannot have 1970 style inflation. they will fight that more than worry about the markets. at some point growth concerns cause them to back off we are not there yet you have to have some matching in rates with fed fund expectation which poibnts to higher that will be painful for markets. i hear people say growth we should look at growth that is still risky in terms of where we are with rates and where they need to go. >> kevin, you wonder what are we waiting for? fed will raise rates the next

few meetings that takes the drama off the table. some suggest at jackson hole symposium in august and steve liesman will be fthere in perso. then they will pivot and say we will wind down the cycle do you have a crystal ball >> i don't see it happening until later in the year. toward the end of the year actually when you think about it, when you look at the fed's end of the year projection for core pc, it is 4.3% now. they recently raised that. on the month over month basis, core pce has averaged about .4% per month. now that means in order for us to get inflation down to the fed projection by year end, it has

to average .35%. i don't see that happening i don't think the fed will be able to take the foot off the accelerator until november or december of this year. >> let's hope the traffic is not completely stopped ahead of them as they continue to accelerate kevin and dana, thank you. when we come back, another major company moving some of its people deep in the heart of texas. we have that story after this break. let's look at the biggest winners and losers in the s&p. las vegas sands is up 2.8% freeport is behind it at 2.78% gains. diamondback and trimble rounding out the top five et sys wn 3%.

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welcome back to "squawk box. time for executive edge. chevron is planning to sell headquarters in san ramon, california and give employees the option of moving to houston, texas. chevron will stay in california, but lease office space in san ramon. headquarters will remain in the area chevron said the current real estate market provides the opportunity to quote right size

the space. becky, chevron headquarters for oil and gas, the cleanest building i've ever seen especially since it is an oil and gas company, in some areas last year. i wonder if that is the final or legendary campus in the area now it is a housing development, i guess. >> they talk about wanting to right size and right place i don't know if they have a friendly welcoming environment there. you know, you get it people moving around i think it is surprising they make the move, but stay in california when you had other companies that said forget it. we're leaving for lower taxes. they're not doing that >> they will pay for people to move to houston. if you own your home in the bay area, you can get twice the house at half the price in houston. no state income tax. they have been poking around

houston real estate for a while. the chevron leaders, mike wirth is from colorado and has been in california forever the previous ceo was a fifth generation california n. they have a long root in the soil >> usually they change headquarters because the ceo wants to go. we have seen that time and time again. >> we're looking at you, boeing. chicago to northern virginia >> yup >> just happened >> employee base and better lobbying it happens same thing with tesla. coming up, travel nightmare. update on the more than 700 flights canceled just neyesterd alone. we have travel tips if you are one of the 47 million people planning to travel for the independence day weekend good luck. "squawk box" will be right back.

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good morning welcome back to "squawk box. here from nasdaq site at times square hi, becky. i wish we were in person i miss you >> in michigan >> oh, you are not supposed to say that i'm in -- fine i'm in michigan. by the way, it's 55 degrees with 50-mile-an-hour winds yesterday. it was like a november day i said happy thanksgiving to my family hopefully it will warm up soon we have the tin can with the string amazing modern television. dow futures up 74. nasdaq up 62 becky, maybe a little bit of momentum i feel like ever since i have been in the midwest, the markets have risen

is that a sign maybe it is a sign. >> stay there. sunny if you are looking at futures. you can feel warmer with that. later this week, the fourth of july holiday travel week will show if airlines reduced schedules enough to limit the number of flights that are canceled or delayed. phil lebeau has more and joins us my flight gets canceled and that still hoses me or they don't and we get left behind in the lurch. this is bad planning with the holiday weekend. >> i know a few people, becky, not next week, but in july and flights have been changed because the flight they were on is canceled and the frequencies and put on a later flight. it is not the end of the world this is what we will see over the next several weeks next weekend is a test for the

airline industry we talked about how they curtailed schedules and even with some of the curtailments, we are seeing cancellations saturday and sunday at 1,300 the delays is where you hear complaining. people say if i'm at the airport 45 minutes or an hour more than i have to be, it really throws my plans into a lurch. for the fourth of july, we are not quite at 2019 levels in terms of airline travel. we will be in terms of total 47.9 million according to aaa expected to travel 50 miles or more with 3.55 million of those taking a flight. we pointed out the airlines reduced schedules for july look at the airlines oag which runs schedules, they track them every day we asked them show us where they were in january and where they are now. they reduced schedules here in the united states by 17%

by the way, it will go up more as you have cancellations or reduced schedule from united from newark. i think we will hear from more airlines the next couple days. one other airline story that is front and center shares of spirit airlines. on friday, late friday after the market closed, the airline again picked frontier airlines as the airline it would like to merge with this was an enhanced offer for 4.13 $4.13 a share. jetblue has an opportunity here. nothing is stopping them from raising their bid again. thursday is when spirit shareholders are voting on the latest agreement the one approved by the spirit board on friday to merge with frontier you don't want to miss who we are talking within 45 minutes.

barry biffle ceo of frontier airlines we will talk about how close he is to getting deal gondone or approved with shareholders by the way, there is a payable upon agreement by shareholders a dividend$2.22 a share to spirit shareholders. >> we are tight on time. we will see you in a little bit with the ceo we are eager to hear from him. thank you, phil. see you in a little bit. joining us now to talk more about how to prepare for the summer travel season is brian kelly. i don't want to talk about points or how to fund a cheap flight, brian. i want to talk about whether you should feel confident when you book that flight and you are actually on that flight. i think that is the bigger

question phil laid this out at the top. fantastic. if you know you want to go somewhere, that's great. if you get burned as people have been getting burned, that means you won't plan the next vacation it means as a business traveler, you will think long and hard if you get canceled or delayed, the trip becomes a nightmare it is something people will put off. when does this bite the airlines >> delta airlines has always been the best biggest run u.s. airline. they canceled 7% of flights. this is it hg evitting everyone. it is not like choosing one airline over the other try to leave on the first flight of day those go out on time more than others book nonstops. if you connect, you are just asking for trouble if you have to connect, build in at least two hours domestically.

i'm saying four hours international. i had a layover in heathrow. i built in five hours. due to immigration and security, i barely made my flight. >> brian, how much is this a problem with the airlines not staffed and how much is the air tr traffic control? heathrow said don't come that early. you are jamming up airports. >> the demand is surging people are ready to travel with delays it is staffing. every airport, you arrive and no one to get the luggage to the plane. it is the airlines and covid there is a lot of employees who are calling out and need to be out for ten days catching this current wave of covid. it is not going to get be bebe better any time soon

today, 16% of newark flights canceled it is 6:43 a.m it will be a while hopefully this fall when summer travel dies down and a chance for the industry to broeeathe a little bit >> brian, come on. the weather is beautiful in ne newark i had a flight to newark two weeks ago. they canceled it quote for weather two days before the flight was supposed to takeoff tampa to newark canceled 48 hours in advance for weather weather is a very convenient excuse bring up the tsa chart again i know we're down 10% to 15% from total peak, but as we talked in the previous hour, brian, if we had a tsa number for domestic travel, i'll bet you it would be above any previous record because international travel is still awful.

the fact we're that close to me says more people seem to be getting on the plane in the united states than any time before what do you think about that >> absolutely. u.s. airports are packed i highly recommend if you don't have tsa pre-check global entry. invest in it today you know -- >> clear >> clear is a lifesaver when your flights get canceled, u.s. depoesn't have a bill of rights if you are flying in the eu, look all eu 261 compensation airlines have to pay for delays. in the u.s., don't go after airline. go after the credit card you use to book the flights. they have what is called trip interruption and delay coverage. that's where you get reimbursement. you have to be proactive see where your flight is coming

from i use flight aware flight aware will tell you when the captain files the flight plan that means you will probably takeoff. if that not happening and plane is not at the gate because the incoming flight is delayed, you have to be proactive rebook on an alternate flight. don't wait for the flight to be canceled >> great tips. thank you, brian great to see you when we come back, "top gun: maverick" hitting a milestone at the box office details next. don't miss our interview with ken langone his take the markets and the fed and inflationand more. stick around "squawk box" will be right back. i had no idea investing regularly could add up this much! ♪♪ go to investor.gov today to learn about compound interest

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it was tom cruise versus tom hanks at the box office. a tie. "elvis" brought in $30 million for the weekend. that is equal for "top gun: maverick" in the fifth weekend it has brought in more than $1 billion worldwide. "lightyear" had a drop off of 67%.

"minions" has a movie release this weekend brian. >> too soon to call it a flop, becky? i don't know >> probably not hitting expectations not hitting i don't know. >> probably not hitting expectations i don't know if i would call it a flop just yet. but not hitting expectations for sure. >> $152 million sounds good. let's talk about crypto pricesba we're seeing a gain this morning but not much to write home about. 21.4 for bitcoin and eenler is 132 and what did it meet for bitcoin backs etfs we'll talk about it coming up. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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the grfic said squawk coins. so let's talk about crypto and bitcoin in particular. volatility tamping down just a bit lately but still a big pop many hopes for bitcoin up a little bit. 21,400 but this kind of pales in comparison to what is coming and that is a possible decision from the securities and exchange commission on a crypt etf. joining us now is bart smith, global head of digital as eight strategy good to have you on the program here there is an s.e.c. commissioner by the name of the hester purse, i did a panel with her in 2018 knowing she's pushing for a bitcoin etf but she appears the only one on the agency five-person committee that is that aggressive about it do you expect the s.e.c. to deny

it -- bitcoin etfs. >> unfortunately yet i think there are decisions coming up next weeks so the bit wise decision is due this friday and the gray scale which is the biggest one is due next wednesday. it is speculated that they'll announce them together for the denial they're trading at a 30% discount so if they were disapproved, the market is telling you that they don't think that this round is going to be any different than the ones previous. >> and i guess the issue seemed, i mean cryptos are come fplicatd but this should not be if the s.e.c. denies the etf, they're saying we're not going to given you what you want until you give us what we want, which is some control or more regulatory ability over crypto itself, correct? >> it -- it could be interpreted

that way if you look at -- the thing that is most puzzling, that hester has pointed out on several occasions within the bitcoin and etf communities, that is puzzling, you have these three bitcoin futures and they settle to the same exchanges that the spot proposals settle to that are going to be denied and they've said so far these proposals have not demonstrated that these are manipulation. so you have one etfs that are there that settle for the exact same changes but in some cases they're resistant to manipulation but in other proposals they are not and i think that is what you are getting. >> i any so. and that decision should be coming down soon, probably some zis appointment. thank you. >> thank you so much

coming up, we have an exclusive interview with ken langon on the markets, the economy and inflation and much more that is coming up in the next hour plus we'll be speaking to frontier ceo bryifar bfle on the bidding war for spirit air it continues, he will make his case for why he has the best bid right now. "squawk box" will be right back.

good morning, stocks coming off the best day in more than two years. but where do we go from here and investor and home depot founder ken langon will share his thoughts and the g-7 meeting in germany to announce more sanctions and more trade bans against russia a live report. and the ceo of frontier airlines and the decision to sweeten the offer for a merger with spirit the second hour of "squawk box" begins right now well good monday morning and welcome back to "squawk box" here on cnbc we're live from the nasdaq market site in times square and in the mitton of michigan. >> i'm looking at the map of where you are.

beautiful area for sure. >> it is a long way from everywhere and but if -- listen, i'll say this i'm on the upper peninsula it is so nice to get out of the new new york area to talk to people about gas prices and inflation it is a different world here it is just totally a different ball game up here. and i like getting -- you know, becky, would you like to believe i'm a person of the people we'll see. >> i was going to say -- >> in fact the coffee guy is here is wondering why you're remote but i'll explain to him. you're talking to other people. >> i'll be back and i miss him and his coffee by the way, joe is off and randu is here but not here and he'll be joining you live in the next hour eat in the mountain time zone at the aspen ideas festival. >> we keep rolling, one time zone maybe two a little further west every morning for the

anchors. early morning just about everywhere less of an early morning here. so i'm the one in the best position with that but brian, i'm glad you're here and i'm glad that you're willing to get up and do these hours with you great to see you. >> you know i love being here and love being with you, becky it is all good and just nice. it feels relaxing. i'm not going to fly anywhere but it was a 16 1/2 hour drive. >> that is not bad. >> 16 1/2 hours, broke my record proud to say equity futures, see if they could break some records the worst first half to the year since 1970, mitigated a little bit by last week 3% gains across the board. some of the momentum carrying over to today, dow futures up 102 and nasdaq up 60 points. and we're seeing bond yields, and the ten year are back to where they were at two years

ago -- or good grief, two months ago. we haven't seen the bond market move that much and checking the price of oil, there is a price cap on russian oil at the-g 7 meetings over the weekend. and not a big follow through you talked about global demand well libya, they're saying that exports may cease because of civil unrest and ecuador may come offline and they may be keeping oil prices above $100 a barrel. >> regardless of what happened with russia. we have some great guests coming up in the hour in just a few minutes the ceo of frontier airlines will talk about the deal to buy spirit air. after frontine sweetened the deal on friday and later an exclusive interview with home depot co-founder ken langon here in studio with us as well and then in the next hour hand rue will join us from the as pen

idea festival with david rube ebb stein and john doerr so stick around. and no shortage of really incredibly news topics to talk with each of them about. >> yes also in the real world of aspen, very normal place. meantime, president biden, boris johnson and other g-7 members looking to turn up the heat on russia as europe navigates the energy crisis, inflation continues to ripple across the continent and globe and we have more on the agenda and what is become done and what may or may not happen kayla. >> well moments ago g-7 leaders issued a joint statement offering support for ukraine as long as it takes in their words to reach a negotiated resolution with russia. in that statement, the group did not stake out a position on whether ukraine should be ceding territory to reach a deal. saying it is up to ukraine to

decide on a pisettlement and this is after humanitarian and security assistance here in germany. appearing virtually to the leaders and the group in their statement calling on rur to reopen exports on the black sea. the group backed world bank efforts to rebuild ukraine and will help to secure ukraine now and in the future as part of that effort, the u.s. will be buying and sending to ukraine new longer range missiles that will shoot surface-to-air missiles, it will be sending that weaponry to ukraine and a course confirms it is same system used in washington to protect the white house and the capitol. but the alliance unity is being tested four countries have signed on to squeeze russia by banning gold exports but that is not all of them and while there is an agreement to pursue price caps that would

reap russian oil on the market, there is no agreement on what that would look like they did agree to export on russia once a member of the group, it is a dramatic shift from one year ago when the leaders gathers in and recognized the threat from china. but a massive public private infrastructure meant to counter the belt and road program. the u.s. is expected to contribute $200 billion to that effort and despite china not appearing in the joint statement that came out this morning, of course the g-7 leaders say they are trying not to lose sight of future threats as they work to counter the most pressing threat by russia. >> do you think anything concrete will come out of this there is a lot of talk are we going to get some real hard decisions made up there in the bavarian alps?

>> well, the heads of state are suggesting that a lot of the finer print is going to be negotiated by the g-7 countries finance ministers in the coming weeks. that getting this high level agreement to pursue some of the issues is the first step but actually putting the rubber to the road hasn't happened yet. that being said, this alignment on terrifics, the white house is going to be putting tariffs on $2.3 $2.3 million and they will no longer accept gold to keep oligarchs and the kremlin to pay debts and make purchases using things like gold if rubles are not accepted so there is some movement in that direction but there is also hope in the coming months there could be a negotiated resolution in ukraine and then a conversion about which measures go away >> yeah, that is a great point we talked about it earlier at some point we have to start talking about an end to this war

and the end of the suffering of the ukrainian people hit by missile attacks again over the weekend. kayla, thank you very much becky. >> let's look at oil prices once again this morning up above $107. $107.80 for wti. that is off of $120 but still high joining us now is jeff curry, goldman sachs global head of commodity research and we've been talking about how russia has been able to sell just as much, in fact even more oil than it was pre-sanctions and namely india and china and if russia is still selling just as much if not more oil, where would prices be in the sanctions actually worked and if india say got on board and said we won't buy any more oil like the g-7 ministers are trying to pressure it to do? >> i think you could look at product price and they tell you about where it would be.

let's not forget, while crude oil exports are okay when we look at what is going on ott product side, you still lost 500, or 700,000 barrels per day of product and when you do the adjusted price, you're somewhere around in the 150, 160 range so let's remember, product cracks are at record levels right now. and even at last week, diesel prices kept going up even as wti and brent sold off which is telling you, in use products are substantially higher right now really driven by that loss of product. so i think it is important to look at petroleum as opposed to just crude oil and i think you look at the product prices remember, jet fuel was trading like $300 a barrel a month and a half ago and diesel prices frequently spike into that $200 barrel range. so the product prices answer that question.

>> how much of the product price is because of the what is happening with russia, because of the sanctions imposed and how much of it is because of our limited refining capacity. and again this just gets back to demand as every one of the stories that we touch on, airline flights, too much demand, there is not enough to go around. same story with refinery capacity we hear that the refiners, at least in the united states, are at like 94% capacity so there is not much more they could do even if there was additional oil that was supplied to some of these places. >> well, you have definitely lost u.s. refining capacity. we estimate 1.2 million barrels per day over the last several years. but the important point here is these markets are global and not local and when we look at the global refining capacity that could be utilized, you have taken out some of the russia refining capacity and we also don't have access to some of the key christians refining

capacity and whether it is steel, oil, aluminum, whatever it might be over the past two decades, we relied on the chinese growing capacity of copper smelters, steel mills, refineries and they're not willing to export all of this stuff any more and you combine that with the restrictions around russia, we've lost global refining capacity and that is why global product prices are reflected. >> jeff, i have a basic question which i hope is not dumb because i can't -- i honestly am trying to figure out what i'm missing here and that is this. they're talking about this potential price cap mechanism to cap the price of oil that is being bought in europe and parts of the world, but at the same time europe is saying they're going to stop buying oil as of january 1st. so why are they talking about price caps when they're going to stop buying them

is this some sneaky way of maybe saying, we're going to need to keep buying it but we're going to limit the amount of money vladimir putin could make, or would these caps just be for the couple of months left in the year when they're still buying it i haven't been able to figure that out. >> well thes wer-- the americans were the ones that introduced the price cap and the europeans introduced the sanctions and they're all in germany discussing these issues right now. but i think the key point is that that price cap will end up creating a loss of supplies. the idea, they put the price caps in there and that is going to keep supplies healthy but the bottom line is as price goes higher, it basically created a backwards in supply curve. the higher the price, the deeper the price cap is, then the russians don't have the incentive to supply the oil. this is all viewed strictly from a western view as opposed to thinking about how russia would respond to a price gap

because ultimately costs rise and everything from fuel, all of it continues to go up as oil prices go higher that then restricts the ability or the incentive for the russians to supply the oil so you have to look at it from both sides >> so jeff, all of that kind of put it in your pipe and smoke it and then tell us what this means for oil prices from here through the end of the year? or more importantly gasoline prices >> i'll tell you, that distinction is becoming critical here the bottom line, the situation across the energy space is incredibly bullish right now the pull back in prices that we saw last week, we would view that as a buying opportunity at the core of our bullish view of energy and commodities is the under-investment thesis and that applies today more than it did two, three weeks ago because you've seen an exodus of -- you

name it, investment continues to run from the space at a time sh should be be coming to the space. because ultimately the only way so solve the problems is through increased investment so we tick to our guns of oil prices moving this summer up into the $140 barrel range given record levels and that is a lot more upside to product prices. remember gasoline prices traded -- treaded water last week in the sell-off and diesel prices went up which is an indication just how tight these underlying markets one last point i want to say is when we think about what is going on in europe right now, with nord stream 1, the supply of gas going into europe, coming offer from russia, you're going to have to replace that gas and oil is going to be one of the places where you use to replace it so the upside risk on oil and other products is tremendous high right now >> thank you, jeff i think. >> it is such a confusing time

so much left to come this year and so much left to come in this show and a big one. the ceo of frontier airlines on the plan to stick with the deal with spirit. and we'll also him about the pilot shortage and summer travel and the state of the nuindustrya well and later on, home depot founder ken langon, an outspoken entrepreneur will join us as well and as we head to break, check on the monday markets. last week carrying on. we'll going to take a short break and carry on right after that stick around

frontier airlines offering to combine with spirit shareholders are set to vote on the deal this week phil lebeau joining us now with the ceo of frontier. >> let's bring in barry biffle you and i talked quite a bit before you guyed made the initial agreement with spirit. i'm not sure either of us thought that this would continue down the path that it has continued. give us some thoughts on finally getting another agreement with spirit as you head into

thursday's shareholder vote. >> well thanks for having us on, phil and we're really excited about this merger. and over the last few days we've luckily gotten iss to propose yes, to approving this merger and glass lewis. so really excited about it and we have increased our offer, $450 million in cash and 240 of that paid upon a yes vote up front. and we've increased the termination fee to $350 million. so this is clearly the right move for shareholders. we look forward to a vote and it is the right thing for consumers as well. >> barry, how concerned are you that jet blue could respond again, that they come back later today and say we're going to come up with a more of a prepayment to shareholders or reverse the back up fee even further. >> i wouldn't speculate. but this is a very clear choice.

our merger with frontier, with spirit lowers fares for consumers whereas the jet blue proposal with spirit would raise fares for consumers at a time when inflation is so important, i think lowering fares is much more important and from a consideration perspective, the spirit deal with frontier is 50 to $61 in value for the shareholders once they benefit from the normal multiples an the jet blue given it is a dead end on an anti-trust perspective, you're getting the reverse termination fee. it is very simple math >> you brought up whether or not regulators will approve a deal, any deal for spirit to merge with somebody. how confident are you that you could get this through regulatory approval. >> i think if you look today and as you mentioned before and talking about on this show every day is inflation and how important that is to the american consumer and it deal is important for consumers because

it lowers prices for consumers and more low fares to people in more places and as we're able to tell our story, we look for a positive result. >> i just wonder, jet blue and everything that it has done, do they almost win for losing in this situation they're costing you so much more what is the point where this deal would not make sense? are you getting anywhere near that >> look, i don't want to speculate on that and how they see it but i know this deal is good for consumers. it is good for our employees and it is great for shareholders and that is why we're real excited about the vote this week >> barry, let me shift gears and ask you about what you're seeing in terms of staffing right now i fly into denver quite a bit. dia is amess a lot of times people are waiting and it is very crowded there. how confident that you that you will be able to have the staffing nufd windustry wide to

alleviate the issues if not this summer than going into the fall. >> so we're really pleased our team has done a great job in making sure that we're ready for the summer our staffing levels are very good for summer i know there are some challenges with some providers and i know some airlines are having bigger challenges but i think that the biggest issues is what is going to happen with air traffic control. we're pleased with our performance. we're in third place in the last six weeks as we approach the summer season if fr a completion perspective, least canceled flights an the team is doing a great job but we're seeing elevated friction from air traffic control. and in fact my flight last night we were delayed an hour from a ground halt. >> and you talked to the secretary of transportation a week and a half ago and other ceo's told him you have to fix the air traffic control situation. are you confident that that is

going to happen. they're hurting on staffing just like every other industry. >> i know it is a top priority for the faa and i know they're spending a lot of time on it we had a big meeting down in florida last month and brought in experts and it is a difficult challenge but i know they're working on it. within our control, we did reduce our capacity to alleviate some of the congestion and wore looking at the rootings that crossed jacksonville center as an example to make sure that we don't have too much that squeezes the system. we're going to work through it and i think we'll still have a challenging summer across the industry but i know everybody is working hard to make sure that these things alleviate as time progresses, through the fall i think it gets much better. >> barry biffle, ceo of frontier airlines thank you so much for joining us today. we'll see if that happens on thursday that is when the shareholders of spirit are scheduled to vote on this latest agreement between spirit and frontier. brian, now the ball is in jet blue's court is it going to say, hey we have

another offer here or is this it are we finally going to see a shareholder vote on frontier and spirit merging happening on thursday brian, back to you. >> one of the more epic deal fights by the way, the ceo, i guess flying coach on frontier and good to hear he's suffering through delays like everybody else is. phil lebeau, thank you and did he fly the snow lynx or thealp ken langon will be your special guest. can you not miss that. lilefutures heading into monday. a tt carry through from last week do you futures up 123. we're glad to you have with us we're back right after this.

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some news just in from digital world acquisition, that is the special purpose acquisition company, the spac that was linked to former president trump's media platform truth social in an s.e.c. filing, digital world acquisition said subpoenas have been issued amid an ongoing proposed murther

digital world said it could delay, impede and prevent the business combination from being consummated. that is a spac that is down by 6.5% right now still to come this morning he's here. in studio. he's back. we're going to talk to special guest ken langon it is a interview you do not want to miss and that is next. plus, coverage from the aspen ideas festival andrew is joining us with exclusive interviewed with david rubenstein and john doerr. but when we come back, ken is here and he's live and stay tuned. you're watching "squawk box" and this is cnbc

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welcome back we have a very special guest join us this morning to talk about inflation and the fed and why he calls these times treacherous. let's welcome ken langon, home founder of home depot and it is good to see you, great to you have back here. >> maria, thanks for having me i look forward to being back and having some ziel og with you i miss joe and andy. but we'll make do without them i think i got the better of the draw today having you here and having those two guys on vacation or wherever they are. >> well let's talk about what you told us a year ago when you were here.

we spoke with you and you were very worried about inflation at that point i think what you said was that this was going to be a situation where federal stimulus was kind of like throwing a gasoline canister on what was already a white hot fire with inflation. and year later, unfortunately, it turns out you were right. >> you know, there was no upside to their assumption that it was transitory none whatsoever. the safe course of action would have been to put the brakes on then or raise ires then. and then i liken it to would you rather jump out of a two-story building or a ten-story building and have a chance to survive and right now we're in treacherous land because we have to pull this in. this current sense of maybe not as bad, i hope it is not as bad, but i think that the -- has to

raise interest rated 1% and next should be 1% and do a couple of those and get it done with and take the pain. you can't address inflation at a level that it is at now in a almost passive way it just won't work so i'm very concerned and i do believe that we've got a confluence of things here that exacerbate the problem we have the ukraine situation, we've got europe, we've got our social unrest in america which we must address. we have to figure out a way out to pull america. we need to be one again. we're dividing up worse and worse and i think if we don't do something about that, that coo be a real serious long-term problem for america. >> when you talk about the division, you're talking about things going back a few years with some of the protests back and forth, you're talking about the supreme court decision that just got handed down, what do you mean >> becky, i think this polarization has gone on for at

least 20 years think back to when newt gingrich was speaker of the house and the divisiveness that was there prevalent. it has gotten worse and worse and worse. and my concern is there is serious issues that need to be addressed. we need to take issue with the fact that our social security system, how are we going to make sure it is funded for people you have a huge wave of people about to enter retirement. and there are so many social issues that we have to address to work on together. and i don't mean to sound political but it is not political. i can't tell you how grateful i am that we have a man like joe manchin on the scenario. what he did, if you think inflation is bad now, think of what would have happened if bbb had passed how much more money would have been thrown on to the fire how much more gas. so i'm very concerned. we're a great nation we always will be. we're going to make sure we stay

great if we could pull all of the diverging parts together and say let's work together. you don't get everything you want and i don't get everything i want but together we'll have more than we have right now. and that is american that is what when we're at our best when we pull together as a nation and in world war 2, we whipped anybody's ass that came there front of us. why? because we were together this pandemic, where if you wear a mask you're one party and if you don't wear a mask you're another party. how petty do we get. if masks were the thing to wear to deal with the pandemic, wear the mask >> right. >> we've now concluded that we could measure people, measure people for what they are by things they do or don't do that is wrong. let's address it look, i put this on every morning. we are the greatest nation on earth. there will never be another america, ever, ever. believe me

and i'm passionate about that. that said, if we don't address the enemy within, the enemy within is our divisiveness, if we don't address that, our future won't be as bright as it would be if we did so -- >> i agree 100% with you i agree with tracing this back more than two decades. and it seems to get worse every year would you think there could be a common enemy like covid that could we unite around. that seem the like it could be a world war 2 moment where else do you find a common threat or enemy and makes people put aside their differences and say yes we agree with each other on these things and let's celebrate that. >> you start with a common point of view. i mean go back to inflation last year i didn't conclude that the chairman did what he did or didn't do what he should have done -- >> fed chairman. >> because he wanted to get reappointed. that is unfair i have no idea of knowing it and

you shouldn't reach that conclusion on the the other hand, i could understand people connecting the dots and saying wait a minute, look, a guy that i think that gets right better than anybody else, more than anybody else, is stan ruckmiller and we talk every day and last year we were both saying how insane it was that we weren't address the issue of inflation i saw it in our business i saw it in our food distribution business. you could see it in the consumer spending habits. used cars are selling for more than they sold for when they were brand-new i mean, that is insane so all of the signs were there and as i say, the safe course of action would have been to say, maybe it is transitory but we're not going to take the chance that it is not and put the brakes on. so now, would that have precipitated a recession maybe. if but if it did, it would be

less than by virtue what they have now. >> how inevitable is that recession in your view are we in a recession right now. >> never say never i think we're in a recession right now. my partner tom teague at salem loosing, we're getting calls from trailer manufacturers that they have availability six months ago they didn't things are starting to loosen up look at the inventory issues last week brian cornell spoke, he did the sensible thing. you never want to be a retailer out of stock for what your customer wants to buy. so he went off and has this great shortage on one hand and had a tremendous on the other hand and walmart, there is no one betner their business. walmart and target, they're all gagging on inventory for one reason they wanted to be in stock they are in stock. and they wanted to make sure they have what the customer

wants it when the customer wants it so they're digging out they'll be fine. but there is a good example of where we've to take the pain and i commend brian, i told him this the other day and you were there, i commend him for biting the bullet and not wishing the inventory out, and mark it down and move it out and get ready for next spring. have your shelves ready to take in next spring's fashion or whatever it is so, no, i think and i'm not second guessing anybody, but i think we made a tragic mistake by no not being more aggressive and assuming inflation was the real thing last year and there is no luxury in saying it is transitory none >> brian >> hey, mr. langon, it is brian sullivan i wish i was there in person >> you want me to call you okay go ahead. >> not yet but i'm getting there. ken. thank you. >> that merits it right there. >> it is fallen out every year

i'm getting up there, too. and here is the thing. i want to go back to the political thing. you mentioned politics and i remember tip o'neal when i was a kid in washington, d.c how much of what we have now is this permanent political class, and i'm not going to single out any party, okay, becky and i were born the same year. by the way, that year is when effectively joe biden, mitch mcconnell, chuck schumer, nancy pelosi, were all getting elected. these are people serving in office as long as i've been alive and i commend them for their public service but we're creating political permanent political classes in both parties by the way, that if just feels like it will degrade the ultimately matt trust in the institution of government. do you have a take on that >> yeah. i agree with you i support u.s. term limits

i think these guys ought to go home after a couple of terms and live with the laws they pass look, both parties, when their there, they never want to let go i asked mitch mcconnell, i had a private lunch with him a couple of years ago, him and walter buckley and i asked him, what do we do about term limits and his answer was you're not going to have term limits and that is the end of it. there aren't many joe manchins out there. think of the pressure that joe ma manchin has been under by his party for saying he wasn't going for the bbb or breaking up the filibuster there is a man that puts america ahead of his selfish or party's interest so bine, believe me, i'm all for term limits. i we need them

we need restoration of strength for our institutions including the supreme court. >> i wonder, ken, and i posted this article to social and ironically i understand the irony of posting it to social, from the atlantic, it is the best piece i've read in a long time called why the last ten years of american life have been uniquely stupid. that is their title not mine and they do talk about the impact of social media and i bring this up, i'm not blaming senator but for a guy like manchin or somebody else, these are people getting personal threats, addresses posted online, people could -- it is -- i wonder how much the way we communicate is impacting these politicians going behind their walled gardens, because lets be clear, it is not safe for some of these people to go to the grocery store. they get heckled why should they know how much a gallon of milk costs, ken, when they're going to get screamed at and filmed.

>> look. social media is a very dangerous thing. very dangerous you don't need editor ol quality, in other words, you need to have proof that you checked the facts and everything and you could go on there and say whatever bizarre thing want to say my middle son bruce has said to me time and again, how dangerous social media is. and it is. very dangerous. there is a responsibility factor that is missing there. you say something, and i mean frankly, let me be -- i don't mean to single him out but for chuck schumer to get in front of the supreme court and say we're coming after you and name these guys, this is scary stuff. but it is forced on them by the fact that they read all of the stuff in social media. you know, the fact that you have a right to say something brings with it the responsibility of what you say we're not doing that now some of the most bizarre things in the world are said on social media. i don't know how you stop it

but coy tell you right now, it is not constructive. my opinion. >> not constructive. it leads to additional division. >> more divisiveness more polarization. >> what do you think about the supreme court's decision to do what it did with roe v. wade, not just to say that the mississippi law could stand, but to overturn roe v. wade and kick it back to the states, which now you're going to have almost half of the states in the union on opposite sides of the situation. >> what do i think had they left it alone, i think they would have been better off. >> had they not overturned. >> had they not overturned it. based on what roberts said on the other hand, i make the analogy, when you play 20 people in a room and i whisper in your ear -- >> telephone. >> and it is no relevance to what ever i said i think the people that are strict constitutionalist are worried about that in other words, it is like a slice of salami.

the fact of the matter is the constitution is clearly stating on d-- i'm not a constitutional lawyer, but it states that which is not specifically given to the federal government is a province of the states and the people >> that is why clarence thomas wrote what he did. >> but that is scary what clarence thomas wrote by going beyond abortion, but thank god aliotta said we're not talking about that there is no connection here between the two. what do i think? i think if we were rational, if we were constructive toward each other we would sit in a room and say okay, look, how do we do it? well, number one, new york state has the most wide open abortion laws in the country. longest that you could take it out. to me, i have an issue with that i have trouble with aborting a nine month baby about to be born particularly since i've just had

a brand-new granddaughter three weeks ago and i see the beauty of this thing and her eyes and so what i'm saying is, i think there need to be limits in that regard on the other hand, on the other hand, i'm not going to judge anybody. i'm a devout roman catholic, i'm for life that said, i'll leave it up to god to decide when we all get up here who did what wrong and what right. that is mybelief but i think right now the last thing we need in america was more divisiveness and i'm praying to god that once this emotion settles down, that people will understand that abortions are not outlawed in america. they're outlawed in certain provinces, certain states. or they're restricted in certain states that is like the mississippi law, that is what precipitated that whole thing. the 15 weeks it is a spiritual issue if a certain sense because it hinges on your faith.

i wish we didn't have to deal with it but we do have to deal with it. >> complicated question. >> it is a complicated question, but it is a fair question. and i wouldn't want to be the supreme court justices making that decision. i'm not sure i agree with roberts saying why decide that now because that is like kicking the can down the road. look, it is not a federal right. technically when you read the constitution, it is not in the constitution, blackman who was a real estate lawyer, not a constitutional lawyer, blackman wrote the opinion based on privacy. >> right because there is so many other decisions that have gone -- that century specifically listed in the constitution if you're a strict constitutionalist, there is a different thing. but this is a longer conversation when we come back sh we're going to talk more about inflation, and happening with home depot

and more and ken will be with us for the rest of the morning. stick around "squawk box" will be right back. ♪♪ take the world by cloud. accenture let there be change. ♪ ♪ connecting to opportunity is just part of the hustle. ♪ ♪ opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps companies change the world. it's making complicated financial concepts seem simple. opportunity is making the dream of home ownership a reality... ♪ ♪

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remembers welcome back. the supreme court's decision to reverse roe verse wade cnbc bertha coombs has more on this part. good morning. >> reporter: good morning, how doctor on demand works with 250 employers nationally providing benefit navigation and telehealthcare and access to

abortions for workers in the wakes of the dobbs ruling, the co-founder owen tripp. thank you so much for joining us this morning you have been working with large employers since the leak of the draft in may tell us about how employers are approaching this, those who have said that they are going to have benefits to help workers access abortion care? >> yeah, you can imagine the scramble that most employers felt when they saw the leaked memo and they knew that they wanted to continue to provide benefits like they have been for decades, but to do that across the state lines and understand the regulatory regime they would be operating in is quite a challenge. those were called in the early days, we continue to supply services to help members navigate to high quality care irregardless of the states they're in >> a number of employers, j.p.

morgan, amazon, citi, they have a mix of white collar an hourly workers. for hourly workers, especially, how difficult is this to be able to provide access? they've talked about providing travel benefits, but when it comes to the care, itself, the median price for an abortion in this country is north of $450. if someone has a high deductible plan, how accessible is that going to be? >> well, the exact pricing to the member and the underlying plan in this case the company, is going to be determined using codes that have already actually been set up and established. that's not the hard part figuring out travel to a provider who is safe to make sure the patient can receive the care both up front and follow up has been the really critical part so the employers are looking to see how it fits in and they are adding the travel benefit to insure safety and

getting that person back in the work force just as quickly as possible. >> how difficult is it to add it with regard to abortion as a posed to a hip replacement to go to a center of excellence? >> yeah. as you know, a number of our largest commerce already offer these services for things like hip surgeries, or cancer-related surgery. these are care -- this is care we that till i sillwe facilitatd these are well protocolized medical services, making sure the travel benefit works for members in different states and making sure they can get care after they return to their home state. that is really the critical piece of consideration in this particular change. but really no different than other travel-related care many of these companies have been

offering for long time. >> including health offers, recommendations for how to access care with a specialist. you are also a telehealth provider what are the complications for doctors on demand, plrl when for particularly when more than half hoff abortions are done medically rather than surgically in this country. >> our practice for the nearly thousand employers we provide care around the clock to members across the united states, we the not prescribe medical abortion we provide care services surrounding that care that would be related to abortion that includes behavioral health services and other specialty care and primary care. we make sure our members are going in person to the care of both high quality demonstrated to be safe we know we will be in hands and follow-up care different ones are taking different postures on this

for our providers, we do not provide medical abortions. >> if an employer or employee were to travel to a state outright banned to a state where there is telehealth and they self paid, would they still be reimbursed by most employers if they've chose to take that route? >> precisely the discussion that's happening some employers, including the ones you mentioned and our customers come out and said not only will the benefit but the travel related to that benefit will be covered. some other companies have taken a slightly more conservative posture, where they say they will cover the travel, not necessarily the medical benefit. other countries have waited until this moment, bertha, to make sure they have their ducks in a row they didn't want to get out too as far ahead of the ruling those are the ray nounsments you will be seeing this week. >> another thing a lot of people are talking about is the potential for litigation or

liability with states like texas, with their civil law that allows people to sue anyone who facilita facilitates or helps anyone in anyway facilitate an abortion, have you thought about that as a navigator and is that something you have been discussing with employers? >> of course our job is to put the member first. we started to make sure there was a patient-centered care. it's not new since we substantiated the company, we have been in a rapidly involving telehealth regulatory environment, where there are things we can do in certain states and things we can't do in other states we will always operate within the law and our firms are operating in these laws. putting the members at the absolute center of our universe. >> these are the ones people are

watching, affirming care your company does help with that for employers, is that the next shoe that employers are worried ab about? >> i think employers have been worried about that a lot have felt the same way, making sure that gender care is ac says and working across the country that is the evidence based best quality medicine is more narrowly distribute in areas where we have been providing travel-related services and quality assurances, you raise a good point, employers now are operating in a world where there is a lot of swirl. this was never in their job description. they're providing companies like ours to make sure they have the benefit of the latest information combined with a high quality centered approach. >> thank you so much for joining us this morning. becky, back to you >> thank you i also want to thank brian sullivan thanks for being here.

we will let you go for now have a good time good-bye >> we are going to have more from him up next, andrew is at the idea's festival he will be speaking to very special people from that event good to see you. >> it's good to see you. thanks, beck this morning corporate leaders and economists and so many more are gathering to discuss our lives and challenge our times. coming out, we have great guests, david rubenstein will be talking about the fed, inflation, later we will talk on the john do err to discuss, google, amazon, twitter, his thoughts on the risk of ose.ssion and future tech and clat the interviews and a lot more straight ahead as "squawk box"

rolls on.

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good morning, everybody, welcome back to "squawk box" here on cnbc we are live at the u.s. nasdaq market site in time's square

andrew is also here. he joins us from aspen, colorado, you have a lot of good guests out there >> did i frighten you away every time i show you up, you are gone. >> reporter: you know, i was thinking the same thing. it's not you >> i promise i won't break your legs >> i miss you. >> i miss you, too >> it's true i haven't seen you in person too long, are you right. every time you come in for whatever reason i have either been out and doing this remotely or from somewhere else i think i was sick at one point or had a cold. >> you both said you want to see the other one. >> make it a point, i'll provide it i won't come unless are you here how about that >> deal. i was genuinely upset and sad i

was not going to be in town to see you when you were there. so, nonetheless. >> joe is not here that scares the -- out of me >> that i know it may be better this way, nonetheless. we got a huge show coming up from here. ken will be a part of it throughout the hour. we will be speaking with david rubenstein in just a bit about the economy, about the war in ukraine. what's happening with the fed and so much more lots of issues being talked about here in aspen and lots of biggests we will be brigg to you not on "squawk" but cnbc and other parts of the networks. meantime, spirit airlines moving lower this morning the company said would approve a deal valued at $2.7 billion from frontier, the recent jetblue all sk

cash offer they believe it's unlikely that they would take it frontier ceo joined us on the show last hour. take a look. >> this is a very clear choice our merger with frontier, spirit actually lowers fares, whereas the jet blue proposal would raise fares for consumers. at a time when inflation is so important, lowering affairs for consumers is so important. >> reporter: they are set to vote on the latest agreement with frontier. that vote happens on thursday. of course, it's fpossible we could see another offer. have you changed your mind, becks. >> about what? >> at all, on this frontier/jetblue/spirit? >> what was my mind before >> i don't know. i thought that you were in the sort of highest bidder category. >> oh, no. no, no, no i think that, look,

the doj is going to get either a pretty tough look. i don't know what happens from this point, if there is a higher bid that comes back in but i do know that jetblue has effectively made this such an expensive proposition. even requeif they lose, this wi make a much less hampered competitor if the doj o'papprovs it this is a way to stick it in the eye. good luck with it. we'll see what happens, the ceo is making the call the last hour on the show that, no, this makes a lot of sense for them. he thinks it will be worthwhile. we'll see what happens it's getting down to the wire, though, with thursday coming up. it's also getting down to the wire to when we start trading. under 90 minutes to go

cnbc senior markets commentator mike santoli is looking at what's driving the market rebound. quickly, kim loangone is here you think this is a temporary relief rally or one that would last >> i would play it as it's temporary. we have a leg down, if we get into a full blown recession, depending on the severity, the market can work itself a lot lower. at least that's the way i position myself that if there is going to be more down draft, i'm ready for it as best i quarterback. >> that's because what you see in the economy >> look, if we get away from this white hot economy we have, to see supplies showing up, if we begin to see unemployment go from a shortage of people to an excess of people, these are all

factors that will impact the stockmarket and i think there is another leg down, i don't know, whatever it is, 10, 15, sure they have great management and strong balance sheets and a great cash flow and you can weather it >> that's his take what are you seeing from what you have seen historically and what you are watching with the charts >> well, i this i in general, you do have to be in that mode this year each rally is guilty until proven innocent. this is about the sixth or seventh time have you had a 5-to-10% rally off the low some attributes are maybe a little more in its favor, meaning it was more than it started. the market was cheaper when it started. we have quarter end tail winds in effect. we talked about this, where such under performance creates a rebalancing. maybe there is mechanical aspects of it.

i would say you are talking 4,000, 400 to 410 on the s&p 500 index fund before it kind of proves itself to be more than one of these relief rallies. so we'll see if the pattern holds or not one interesting aspect of a decline is it has been global and synchronized take a look at the s&p against the all country world index. essentially, this is the world together, similar declines on a year-to-date basis the u.s. still has outperformance this largely is because the u.s. came back to the pack because of our big growth stocks, which have led to the downside, be every they were allowing the u.s. to outperform, central banks are raising rates, slow down around the world. the equity markets are responding similarly, take a look at the index. the market cap and largest

semi-conductor stock nvidia, starting here, when you got that yields peak for a little while you see microsoft trying to make the case it's holding up better, nvidia has exposure sick cyclically so far this year, microsoft is getting a defensive feedback >> bear in mind, we've encouraged people as to take risks since '08, it's cheap money, in many respects, it's free money when you have that kind of environment, it's easy for people to rationalize sticking their neck out what we need to ask ours is how much is out there that's been done that can't carry itself at higher rates these deals have to be refinanced, these bonds come due. notes come due loans come due >> right. >> when do you that and and have

to reset your money, the question is, you can afford it a good example is these spacs. i'm in two, one worked out very well simply good foods. the other they're soundly financed if interest rates rise, they will be okay i think that what our federal, what the nation has done is to encourage risk-on far greater than improved and now we got to work our way through it. that's a part of my concern with a recession. >> right a recession coming that some of this stuff won't live on i will say, we had a conversation early this morning about what happens with central banks. they're all tightening now is there a position in the not too distant future where, is there a position at the time in the not too distant future where they have to start losing again

if you are facing -- i don't know what this is coming from. in any event -- >> we have a verizon commercial running. >> it's beneath us not sure why is there a time when central banks might have to tighten in the not too distant future and does that change things? >> the market seems to see its way towards that if you look at what's happened over the last week the slow down fierce and the lag effect of the tightening that's occurred the market is essentially saying, you get to the end of the year maybe short-term rates are up 3% a. little more next year if price is in, some loosening of that. a relatively compressed period, a current snapshot of the best guess is right now absolutely is the answer >> mike, thanks. good to see you. >> god invented equities for a reason air pockets. >> because

>> because when you got equity you got cushion. you look at some balance sheets, they're created by these leverage yields and the businesses have to leverage. >> we've seen it again and again, if you are lower leverage, are you in trouble >> there are times that's your cushion but the interest rates over the last 14 years, you almost totally got to take on risk that's nuts. >> a different day >> that's ken langone. he will be with us andrew has some exciting guests coming up. >> thanks, coming up, we will talk markets, inflation, the economy and maybe a little about leverage the carlisle groups, david rubenstein will be with us in just a moment. he is live here on the set stay tuned you are watching "squawk box" on

cnbc

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the festival billionaire investor and philanthropist david rubenstein, co-chairman of the carlisle group we should mention nbc universal group is the media partner david, thank you for joining us. we have been talking all morning about the markets and the economy. i know you had a chance to listen to ken langone's comments to the extent you can tell us what is happening inside the portfolio of carlisle what you are seeing in terms of performance? >> obviously, we are trying to avoid a recession. the fed has taken action it's trying to get rid of inflation as well. when you increase interest rates, sometimes you don't have a soft landing nobody knows how that will work out. the two biggest issues is what will happen with china, is a xoifd policy going to make it slow down that they will not help and how long is this war in russia and ukraine going to

last what is the impact on the energy market i don't think it is inevitabling to a recession it's not tough to avoid one but it's not inevitable. >> maybe this is a head fake in terms of where the marks are what is the house view inside carlisle when you have investment communities, by the way, this is important, private investments, but where you will mark those investments, frankly, relative to the markets. >> i don't think we have one prominent view we have different people, different points of view i don't think we are headed into a recession. prices have come down, technology has come down a deal. in the buyout ebitda multiples are still in double digit levels. >> has it changed your outlook in terms of what you are buying? the good news is stuff is cheaper in terms of the equity

price. however, i assume the debt is costing you more >> remember in the early day itself of buyouts, you were boroughing 90% today it's 40% debt cost is not equally ebitda multiples haven't come down as they should but will drift down debt is readily available. i don't think people are waiting for markets to be more clear about where they're going. deals are getting done last year, more buyout deals were done than ever. we're on pace this year. >> ken is back in the studio, wants to get on this conversation >> david, i understand your point about having less debt, the lower the rate of return on your investment, because you are not leveraged. you are safer but not leveraged. >> that depends. >> go ahead. >> if the purchase price is lower, that helps a lot, too >> but you said they're still

paying double digit multiples for ebitda >> it's not necessarily 14 times. it might be closer to 11 or 12 times. so they've come down a fair bit. >> so there is less risk >> ken, the last thing i want to do is get in a debate with ken langone, he's made a lot more money than i will make. >> i haven't, i'm trying to catch up to you. >> i doubt that. but, ken, he's a very perceptive person who knows the markets very well. i'm not a market technology person my view based on what i see is deals are getting done prices are slightly lower than they were. but on the other hand, buyout terms add a lot more value than they used to it used to be leveraging companies and hope the mark bails them out now we have a lot of people that add value. it's not just the market the way it used to be. >> you mentioned china as a risk factors or turning points in

this sort of whole where things head what do you think will happen there? >> nobody knows until after xi jinping is elected to his third term when that happens in november, i this i the policies will be clearer. right now the covid policies are not as clear to the west as they like the chinese partners build up two top technology companies i think they are easing up that will be better for people like us to invest there. >> do you want to be buying into the energy space now how do you think of old fossil fuel energy versus new maybe more climate-friendly energy, at the same time we're having a debate where they're moving towards, more climate friendly energy might be costing us in the near term. >> everybody wants more friendly climate energy we learned the world is very heavily dependent on carbon

energy right now the world is scrambling and energy prices are high, they're down to $108 a barrel i think they will come down increasingly u.s. supply is increasing. we are producing about 12 million barrels per day, which is very good for the u.s., saudi arabia and others will be increasing their production as well i don't think we have a supply problem. the world recognized, you can't go to carbon neutral policy overnight. >> i think this might be a unique barometer of confidence in the marketplace, if you will. which is you were a great philanthropist ken can speak to this as well. you ask people all the time for money. i want to know how those conversations have gone and how they might have shifted over past two or three months >> well, it's easier to ask people for money when they're feeling wealthy.

you get, let's see what the markets are doing and so an and so forth people are not worried about pinching pennies i think philanthropy is in pretty good shape. >> have those conversations shifted? >> i think you have to recognize some people always feel it's harder to give away money when they're not as wealthy it was famously said, how much money do you need to feel substantially secure he said twice whatever have you. if you have a billion but you have 2 billion or 3 billion you don't feel you are giving away as much money. these people are wealthy people are giving away but not quite the pace when they are more boyiant

>> giving it away at a time when there are fewer people in need what you need is the countercyclical giving so when you get into a recession, more people are in need, you need that to be put to work is there rainy day funds that can save for these things? how would you look around at this moment? >> well, right now, the philanthropy, the united states gives roughly 2.2% gdp every year, including the latest causes, which is about 40% i think it's holding up. there is no doubt some people feel less wealthy. i'd like to remind people it doesn't only mean giving money it can be giving your time and energy the most valuable thing is your time you can make more money. you can't get more time a. lot of people are doing volunteering that's very valuable the people that don't have a lot of money to give away i encourage them to give their

time and philanthropy doesn't mean only money is being given away >> you did the interview at the last interviews with ruth bader ginsberg before she died >> yes >> you asked her about roe in that interview, she even talked a bit about how at one point she had written down she thought roe went too far >> correct >> i am curious what you think of that interview today. >> she was not beloved by all womens groups when she was considered for the u.s. court of appeals and the supreme court. the womens groups didn't love her. president carter put her on the d.c. circuit president clinton put her on the supreme court. she criticized the reasoning of roe. many scholars criticized and the supreme court isn't the only organization, she supported the outcome.

she didn't think the reasoning was so good a. lot of womens groups were critical later she became a well respected person in the womens equality movement of women she received criticism early on. >> what do you think she would think today? >> i don't think she would be pleased with what the supreme court did. obviously, she was in the majority that's pretty obvious. >> great to see you, sir appreciate it. we got a lot more coming up right here from aspen. we will be speaking a little bit with legendary investor john doerr. what to do about it and force the markets. we come back with all of that and of course ken langone back after this q, a fund that gives me access to...

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. welcome back to "squawk box" here on cnbc robinhood is higher. the shares are higher from goldman sachs to neutral goldman did cut the price target the stock is going up by 2.5%. check out coin base, losing ground on a downgrade to sell from neutral, citing a continue fall in crypto prices and slower activity coinbase shares down 5 3/4%.

coming back, may durable goods orders are next. we'll be right back. oh, that's wrong. what's wrong? your swing. that's terrible... you gotta put your knees into it, put your knees into it. that's too smooth. too smooth? watch this. ♪♪ you try it. ♪♪ better. ♪♪ oh, you gotta move your feet. charles. alright, alright, i'm going. i'm going.

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welcome back to "squawk box. rich santelli here live at cmhq first of the breaking news this week in the form of a play preliminary durable goods orders expected up one-tenth of 1%. in the rear view mirror we lott

a tonth, it moves up .4. if we strip out transportation, it sticks up nicely, up .7, much better-than-expected we lose .2, the last look .4 the urns to .2 pro,y for capital spending, it's up over double expectations up half of 1% finally, if we switch from orders to shipments, it's up .8 of 1%. it equals .8 last month on our final read these are much better than anticipated numbers. we reversed the reads in february interest rates are doing better, in large part, equities are doing better they will have a nice week last week and do look at yields up about 10 basis points, lately, you want to pay close attention

in the european sovereign debt market becky, back to you >> thank you very much let's bring the conversation back to the co-founder of home depot and i want to talk about home depot, before we do, you wanted to add on >> i want to reenforce what david said about philanthropy and giving of yourself that itself the greatest need pe have is to get talented quality people to put their shoulder to the wheel. we'll eventually get something out of your wallet time is what we need of. the recovery center, we got a wonderful woman by the name of carla, she runs our quality patient care program quality and patient care, because of the enormous effort she and her committee make on an every day basis. that's why people go to hospitals, to get better so i can't stress more my

encouragement of what david said giving of yourself my wife at the boys club in new york now more recently at theal mo medical center they are made for the betterment of mankind you don't get rewarded in the sense of a big check more precious right now your talent and your commitment and effort to help us get the job done so all of you out there who can't write a check, do something far greater, give of yourself please do it >> excellent let's talk a bit about home depot. >> sure. >> most retellers are in the same boat, facing too much inventory, a huge slump that's come incomes stuff they have to unload, get rid of, home depot is operating in the same environment, what's different? >> the seasonality is lawn and patio and lawn mowers and

barbecue grills, they're season am to an extent. for the most part, their inventory is standard quarter-to-quarter home depot, i don't know, i haven't been on the board if 14 years. >> you are still involved. >> i go into stores all the time i talk to the kid on the floor, which i love doing home depot is made entirely by those kids that put the aprons on it's clear to me that home depot is okay. i don't think it will be what it was like i don't think it will be what it was like the last two years with, don't forget, home depot's sales went from 100 to 150 billion, a big jump, rising because of the pandemic. we benefitted from the pandemic. i think right now home depot's position, they have a big

emphasis on the pro and maintenance repair operations. that's recession resistant so they're in good shape i don't believe their inventories were out of line they were heavier than they are. we can work through it just fine they make a major episode at thanksgiving and christmas, season amendment things so i think there is enough space there, we will be able to accommodate it you want to make sure you don't put too much in the store that makes it tough for the customer to navigate. i am optimism i mick with home depot the long term. >> you are convinced not only is a recession coming >> i have a chance we are in one now. >> how do you thanks things up >> nothing i make sure i check in with manage s all the time and don't lose

them i don't trade these positions, last week i spokes to paul williams about how he sees things and he's fairly constructive right now i was anxious when he was going to be able to talk more about this big deal in europe. i can't pronounce it right, eli lilly, which is on a hot streak right now. they got a brand-new drug they are starting to sell next week it's a diabetic drug it has significant implications for obesity. they got a great pipeline, a great management team. that itself the other thing. my first concern is who is running the company. you look home depot with ted deckish, i sleep good at fight management is important. now do they take care of their people the most important thing is how

you treat them right you respect them, let them know they matter. people want to know they can make a difference. >> it's harder to deal when you have people at home i think. >> you have to make effort to do it don't forget, they can't do it from home. they are willing to work so it's management it's how you treat your people your balance sheet it's your cash one of the things i look at hard is how safe are the dividends? that goes back to the balance sheet and the cash flow. my portfolio is what it was two years ago, beyond depo, bank of america. j.p. morgan. home depot, eli lilly. option tier healthcare there is a big play going on with a healthcare provision

outside of hospital system so option care, a lot of the new drugs coming out are not orally prescribed so you have a big business out there. nurses going to people's homes or having regional centers so there is one that i'm very, very excited about it's a recent edichlths i love it management's first class you look at the results and the cash flow. >> a recent addition with you three years. it shows you have a long-term investor >> my depo is from founding the company. j.p. morgan is 16 years. of course, back again, i look at brian moynihan, a great manager, a good leader. they're hard to measure, they're subjective but you take your best shot so that's my plight >> ken langone would be will us.

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welcome back to "squawk box. we are live in aspen at the aspen ideas festival energy and high costs are some of the big themes at this festival here. oil prices as we all know this

morning are higher and higher. we'll show if you you want to buy a barrel wti crude, you can do it for $107 we are using the energy as the jumping off point for our next biggest, john doerr is here. also the author of speed&scale and we are here at the doerer center you donated. >> welcome to my center. >> this is your home, thank you for having us. >> a pleasure. >> let's talk about energy it is the big topic here an interesting moment, we have been talking climate and climate-friendly energy. there is a debate whether that

has pushed too far, given the moment we are now living in, given russia-ukraine the price of oil and what not. how do you think of those two issues >> i think now is the time when it's incredibly clear we have to double down on the free abundant energy sources not controlled by petro dictators. we are funding both sides of this war over ukraine with putin. and we need more sources of energy we especially need more sources of clean energy. it's a false choice here we are have to do both >> the question is there, some say it's a false choice to focus on climate and energy because it hasn't happened fast enough. the question i ask you is, is there technology out there today you think can be implemented to bring down the price of energy in the immediate term in the say next 12 or 18 months

>> in 18 months, you can deploy new solar energy at scale. you can not build a new lick questionification plant in that period of time so, yes. >> sow think it's a false choice to suggest afternoon what we need to be doing is doing more drilling, refining a lot of the issues i am sure some of the big energy companies that spoke in washington that biden administration met last week >> biden says we don't need to doctor ill to meet the market need we got enough reserves >> if that's true, how do you look at the price of energy today and what it may or may not do to the economy right now? >> i'm not an energy expert. my take is the prices are responding to your audience more than anyone else will happen with efforts to put price caps through insurance companies in

western nations on an energy transaction between china and russia i don't know how we will put price caps and make them effective. >> then we have a larger issue if you believe it will spiral, do you believe it will, in terms of costs >> i believe we are in epic troop situation from a fossil fuel economy to a clean energy economy. the largest economic developments of our times. it ranks up with the impact. in real ref las vegass, there is winners and losers i think it's the best opportunity of our lifetime. the road will be bumpy >> here to the bumpy piece this is the hard part a. lot of people are looking at stockmarket and inflationary pressures, thinking that things may get worse rather than better at least in the near term. maybe you were going to suggest

there is near term or too short-term thinking. there is a lot people thick, how do we fix this now the administration is concerned about inflation now. our elected leaders are often concerned about inflation. >> what is the lowest hanging fruit? >> in the plan the most immediate thing in the plan is to cut methane emissions, weeks and wasted and flared methane which is a productive hydrocarbon, we're tossing it into the air like it's a free and open sewer if we acted on the recommendations that came out of the most recent accords, we could lower the global warming by 4 degrees c >> what does that mean and who has to do that >> the large oil companies pledged they will put in place better and more effective caps

and controls on their wells. one of the most important developments in a project called climate trace, where 50 non-profits are coming to pool their data on emissions around the world. think of google earth, a kind of map you can track the carbon emissions. specifically focused on methane as a first and most potent gas >> i want to pivot if you will to your other life in silicon valley as an early investment capital in some of the companies we know today. when you look at the tech companies that have come down, in some cases more than 50%. these are under valued, properly valued what's happening here? >> i think the markets were over valued and i am really the last of your guests you should ask

for what's going on with those markets. >> put the public markets aside, these are moments, historically, venture capital either has gotten burned because they've invested in all sorts of companies that were growth, growth, growth, without profits. so you know, we've seen what that looked like at post-2001. but at the same time, these also have been moments where vintage capitalists have been most successful >> for 50 years now the growth, growth, growth, theic sector benefitted from the unrelenting of morris law. we have the class of computing microchips every year, a 40% annualized improvement moore's law is slowing, but it's being replaced by innovations in artificial intelligence as a way to get better performance out of computing. >> so, therefore, your view is what

you look at the valley and all of the companies funded that, by the way, may need more capital that think there may be access to more capital? or is it a much more rough road? >> well, we have too many some companies don't deserve more capital but the excellent companies will be able to access the capital they need. >> great to see you. thank you for welcoming us to your house, if you will. >> thanks, andrew. let's get to the new york stock exchange. jim cramer joins us now. so much happening, things are quite a bit better after last week. of the impression that maybe not, we could still be facing

some difficult times ahead. >> there is no doubt we are. i think there's kind of a general collapse in commodities. just one after another after another. it is a recession, there will be some stocks that do well and most will do poorly. there is the claiming economic activity which we both know is always bad. >> that's the whole point. do you need any more evidence you are heading into a recession than that? >> no. it's a shame we have to do it. they stated too easy to long. there are people who just were too willing to give away free

money. this is the consequences >> not every recession is created equal. how much pain will it take? you think about it from the markets perspective and tom's perspective. >> when your next-door neighbor is out of work it's a recession, when you are out of work it's a recession. let's agree to one thing, we have had some significant excesses in this economy, interest rates have been kept too long to load. look at what it's done to retirement. we are paying a price for it. >> maybe a couple hundred. i'll get my way to do that.

>> you know that that's where we have to go. >> if inflation is 5%, you have to take it to 7%, i hope we don't go to 10% but we have to go to a lot higher than three or 4%. >> i agree. >> economics don't change for there is no way in the world you can store enough energy to move it on what you need just for gasoline alone. it's a massive demand. and it's going to take years to

address that. >> we cannot be germany, where people who very much want to go green, i think we need to go brown for a while before we go green. >> 42 years ago, we had three mile island. not one human hair was injured. we ave one of the most logical ways to generate energy in massive quantities, that's nuclear power. that was purely a political decision. >> we had great systems here. ge has a great system. they know how to make these things and they need them very

badly. >> get 80% of their energy from nuclear power. germany may reconsider their position on nuclear power. i heard one of the latest efforts is going to be to put a roof over our parking lot and put solar panels on top of the roof of the parking lot. can you imagine how ugly that is going to look? >> refineries don't look all that pretty either. >> they are spending $130 billion over the next few years.

>> we are going to run. doing remarkable things, they don't get enough credit for it. they are taking shareholder money to do what's right. we'll be right back emma see you later, jim.

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>> don't give up on america. i would feel better if more people avail themselves of the political process. i am very concerned about the professional standing of the politicians, we need more joe manchin to take a stand without regard to politics. i still believe we are the greatest country on earth, think about 1940 maneuver in war. and look at what we did. we are and will be the greatest nation for a long time to come. don't sell us short. we are going to have to take

some pain. but i think we'll be fine and i think i can't wait for the next 10 or 15 years. >> we are very pleased to see you again. >> andrew, thank you for all the great guests. i know we have more through the day. thank you everybody for joining us. >> i'm going to be there. you and me. >> i am carl, jim cramer life on the new york stock exchange. more chatter about whether this rebalancing can keep a rally going. the futures have lost some gains. watch for g7 headlines, nato and opec