it's all matters boeing. so it would include all programs. >> i think chairman mccain was driving the next question that i want to raise related to those precautions. i think are prudent. boeing obviously is one of our major defense contractors. they have many programs, some of which have problems of their own. the f-18, the tanker, the v-22 osprey, the f-15 apaches and chinooks in the army. do you think recusing yourself from these boeing related issues could negatively impact the department's decision making process? >> i don't believe so. in my view, i believe i can provide general guidance in terms of program execution and techniques to drive better performance without getting into the specifics of a particular program. >> thank you for that. in terms of your financial divestiture, you are or will soon be fully divested from all boeing stock except for your retirement? is that correct? >> if confirmed, i will divest. >> given your time at boeing and your success there, i presume it's safe to say it's made

it's all matters of boeing. it would include all programs. >> i think chairman mccain, the next question i want to raise related to those precautions which i think are prudent, boeing obviously is a major defense contractor. there are many programs, some of which have some troubles of their own, do you think recusing yourselves from these boeing related issues could negatively impact the departments decision-making process. >> i don't believe so. in my view i believe i can provide general guidance in terms of program execution and techniques to drive better performance without getting into the specifics of a particular program. >> thank you. in terms of your financial divestiture, you are, or will soon be fully divested from all boeing stock except for your retirement program, is that correct. >> if confirmed, i will divest. >> in your time at boeing and your success, i presume it's safe to say they have made you a very wealthy man over 30 years compared to most. >> they have treated me well. >> at this point in

boeing churned out a lot of cash and returned billions back to shareholders boeing today surpassed goldman sachs to be the priciest stock in the dow the world's largest aerospace company is up nearly 50%. >> reporter: pardon the pun, but boeing is soaring to new heights. how much greater efficiency? last quarter, their cashflow was almost double what wall street was expectin the company's cashflow is not slowing down we still expect year over year cash growth throughout the end of the geck aid. >> the bottom line comes as the company continues to cut jobs, many of them on its assembly lines, which have become more productive, thanks in part to increased automation and relentless focus on improving efficiency. >> the company has surprised myself and a lot of people on their ability to take costs out and drive more efficiency through the factory. >> the factory that builds the 737 max will be running at its highest level ever. cranking out almost 50 of the new planes every month. with airbus aggressively pricing planes and newcomers like comack in change in a expected to do the same, boeing'

the dow is way up, dom, because boeing, you see the dawe is up 75, boeing is up like $8 $7 or $8 andt's going to trade at an all-time high of almost $220 and why is that interesting? because in 2016, it was at $1 so >> wow >> at one point. so it's doubled in less than -- in less than two years and its market cap is now so high that it's almost a third of facebook's market cap. now explain that to me, dom chu. >> i'm not sure -- >> why would i rather own shares of boeing than some -- because i'm old. i guess i don't understand this new -- anyway. it's going to be $130 billion. facebook is almost $400 billion for people looking at each other's vacation pictures. >> i'm going to put it in golf terms because i think it's something that we can both identify with. these are all stocks that play roms, i guess. you know one of them is a pitching wedge, one of them is a pewter, one of them is a driver. there's a reason why some people would want to buy boeing and facebook and some of these other stocks instead but if you look at the picture overall i mean that boeing move is going to be about

boeing is a cash flow story, and they are delivering on that.w, you're looking at q2 was a watershed moment in cash flow increased guidance by 14% as they deliver on all the themes that they have been executing on, and what's driving that is the margin profile they are looking to get to mid-teens margins over the next couple of years. we're at -- boeing commercial aircraft was at 10% this quarter. the defense group was at 13% which was a record, but as we drive towards mid-teens this will generate even more cash flow and this is a cash flow story, so as boeing just executes on all of the themes, next generation aircraft, cost control, they will continue to march the mar egyptian up and cash flow will continue to increase actually why we're most excited about the chart and what people chart us and people not in the weeds and not paying attention, boeing is standing up the services group actually stood it up july the 1st and this is the next leg for the company. this is boeing getting deeper into the services, and these are higher margin businesse

boeing, ge, titans of industry. they find private lenders to finance the deals, not using exim loans. export subsidies may boost the profits of the corporations that get them. it's bad for the economy because it shifts capital economic growth and jobs from unsubsidized firms to subsidized once, also known as politically connected ones. even hurts some of our own domestic companies. delta can't buy boeing planes with subsidized exim loans, while foreign airlines like airindia can. prompting illegal lobbying battle between delta and boeing over the fate of ex-im. hanging onto it is nothing more than big fat corporations hanging onto their handouts, handouts that working americans pay for. here's the good news, in a bold move, president trump just nominated former congressman scott garrett to head the ex-im bank. here's garrett on the house floor two years ago. >> they are resurrecting this fund for corporate welfare. you see, the export-import bank transformed the role of government from a disinterested referee into a

one of the other things boeing puts out as well as a survey of pilots, boeing estimates that china willll over 100,000 pilots. notjust pilots. pilots are the cool job pilots. notjust pilots. pilots are the cooljob in the industry. you also need people to maintain the aircraft, so there is a lot of opportunity to employ people in the industry. there may not be enough supply of pilot's and maintenance people in china itself, especially good talent. they have to look outside of the mainland. they are indeed. there was an ad recently 4737 captains in an outlying province in china —— for 737 captains. it is a very good pay package for that kind of aircraft. you would be living in the hinterlands of china, you might be away from your family, if you are a foreign pilot. so there would be some sacrifices, but there are a lot of foreign pilots in china and emerging markets around the region. are the big question is now, of course, with all of these new aircraft coming onstream in china, what about the safety record? china is quite aggressive about its safety record. they have a lot of rules and

the boeing conference call by the way starts in about 15 minutes. interesting to see what he had to say on that call about the improved outlook the company is seeing for the remainder of this year raising that guidance by 60 cent ace share for full year earnings expectations guy backs to you. >> i'd like to know the last time we had the 8% move. that is amazing. ken good morning to you. >> good morning. >> a bunch of stories in here. is the stand out the guide itself the earnings guide the influence of 2787-on-cash flow what's the lead? >> well, the lead is not only the very strong free cash flow in the quarter, 4.5 billion but the company did raise it's free cash flow guidance up substantially so you have got the situation you have got, you know, weaker than expected top line just slightly as i still mentioned but you have the company turning these dollars into cash. 787 is a contributor there the best snefrl quarters the company sur prieds myself and a lot of people on their ability to take cost out and drive more efficiency through the factory. >

remember when everyone was writing off the stock of boeing in december?fter then president-elect trump came after them in a tweet about the cost of the new air force one? well, boeing's stock has run up more than 35% since then and it's rallied nearly 60% over the past 12 months 60% for a big cap stock like this it's been a fabulous leader for the aerospace group. now it's enkoirnlting whcounter quality problem. a lot of people are looking to take some profits. look, it's way too early to walk away from boeing although you can't blame anyone for selling some, because no one ever lost ringing the register but i feel hike you should at least swap into a different aerospace play, which brings me to another one, rockwell collins, col for you home gainers. here's a company that makes aerospace components from flight deck avionics, communications and training equipment while the stock has had a nice run, up 27% over the past year, it trades at a big dispoint to boeing and the overall market trades at a discount to the average stock. this could be the one for yo

boeing up 8 and 1/3 percent.a huge gain for one of the big dow components and that accounted for all of today's -- without boeing, the dow would have been negative today. interestingly. after the announcement about keeping rates unchanged, the dollar index just changed. and the dollar is at a virtual two year low against the euro. the euro rising on that day. okay let's go to kayla tou she at capitol hill the latest on the senate vote on health care. where are we now >> officially as we expected a few minutes ago, the vote to repeal only so that 2015 bill, that has failed. there are at least three senators on the republican side who have come out against it capito collins and heller, john mccain also just a few moments ago voting against a as well so there is not enough republican support for that to pass with a majority as we expected back to you. >> all right thank you. we'll get to the next incarnati incarnation. let me just point one more thing before i get to bob. you can tell your grandkids some day, kids,

boeing's 747 brought cheap flying to the masses.ing it. this is the air plane that gave winds to the world. because of its size, because of its range and its economy. it made it possible for the airlines to fly economically anywhere in the world. but 50 years on airlines prefer smaller more fuel—efficient planes and boeing says it may finally stop making the jumbojet. says it may finally stop making the jumbo jet. and after all that hard work, all those miles, this is where 747 is come for a quiet retirement. in less than a day and entire jumbo jet has been reduced to that pile of rubble there, they're just smashing up rubble there, they're just smashing up the last piece of fuselage and all of that aluminium is going to be turned into beer cans. some of these seats are going back to the airline but others have been bought by private collectors and they're going to turn them into quirky office furniture. i can't get the films working, though. they've slightly different plans for this jumbo, a very rich person has bought the top half

take a look at sharesapple boeing is raising its 2017 earnings guidance by 60 cents a share to $9.800 going into today. most on wall street were expecting them to earn $9.39 for the year guys, i don't think i ever would have expected to see that type of a chart where boying is well outperforming shares of apple, at least today's move factoring into that, but in the last year, that's what we have seen between boeing and apple >> not to mention that today's move is almost a down gain phil lebeau, thank you >>> we'll return to look at facebook's top earnings after the close. >>> and we'll look at where foxconn will build their fstir stateside plant in "squawk alley" is back in a moment time's up, insufficient prenatal care. and administrative paperwork... your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you, too. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. ♪ >>> i'm courtney reagan. here's the cnbc news update at this hour. the senate con

is such a tragedy boeing is gaining the fine print of these two huge incentive packages that it has gotten from the state, that total more than $11 billion. >> reporter: meantime, education here is underfunded and the state only recently began re-investing in its troubled infrastructure >> we know if we grow intellectual talent, that fundamentally, it's the energy source that will drive the economies of the future. >> reporter: but the challenges leave washington in a precarious spot, and facing a nagging question has the state reached its peak or is there room to grow even higher > >> west virginia came in dead last from the coal industry and a lack of retraining worker program. its workforce is also the least educated in the nation >>> up next, we're on the money. stay save, a little device with a powerful purpose and message >>> and later, travel like a pro. how booking through an agent could send you on the trip of afe lifetime and now, a look at how the stock market ended the week. ♪ ♪ ♪ ♪ >>> the numbers are frightening. according to the u.n., 1 in 3 women worldwide will exper

boeing is helping out the dow.e're 100 points from 22,000. >> best month for stocks dow and s&p 500 since february best for nasdaq since january. other big milestones, crude oil up is 8% that really helped fuel some gains on wall street dollar is set for the worst month since back in january. losing another 2.5%. how does it all add up well, earnings are doing better. and that's certainly help stocks commodities are doing better copper made two new two year highs to day and the federal reserve is taking its slow and easy the question is do all the factors continue >> going forward, there are wobbles in technology. >> that's what i was going to touch on take a look at big tech. pretty much all in the red except for intel which is up very slightly. pretty much flat a lot of the earnings looked pretty g it's an interesting week as we look at apple and the others to come down the pike to see if that shifts sentiment on big tech. >> tesla i think is reporting earnings this week >> wednesday that's right >> apple go pro,

boeing is doing a great job. that's almost all boeing but the price you pay matters. at 20 times this year's earnings it's priced for perfection. >> literally as you're saying all of this, all i'm thinking about is the marks memo. >> yeah. >> and you said, hey, why get out now? >> no. no no. >> another 10%. >> i think you missed my point >> scott -- scott -- scott i think you -- >> why is everybody else laughing >> i think you missed my point look, what i said was -- first thing i said was i think howard marks is right, but i think you can still ride this until it rolls over. >> if one thing goes wrong -- >> yeah. exactly. >> is that emblematic of the overall market itself? >> look, on boeing -- no, it is not. i'll tell you why. the overall market, we've got to stop painting the overall market with the broad brush stroke. >> agree. >> amazon is not the same as intel. we're not talking about that it's not the same multiple if you look at a peg ratio, different companies. there are ways if you look the whole name of this game is buy low and sell high. there are places t

boeing the state's largest employer is cutting jobs, nearly 10,000 in the last year, prompting a big i told you so from the critics of insentives given the company. >> boeing is gaining the fine print of these two huge incentive packages that total more than $11 billion. >> reporter: and the state only recently began reinvesting in its troubling infrastructure. >> we know talent is going to drive the energy source of the future. >> reporter: but the challenges leave washington facing a nagging question. has the state reached its peek or is there room to grow higher? in mt. ranier national park, washington. >> its work force is also the least educated in the nation. >>> up next we're on the money. stay safe. a little device with a powerful purpose and message. and later travel like a pro. how booking through an agent could send you on the trip of a lifetime. and a look at how the stock market ended the week. ♪ juswho own them,ople every business is different. but every one of those businesses will need legal help as they age and grow. whether

all three counterregional threats work for the boeing system as a layered defense approach. demand is growing in the expectation as lawmakers and green light war money to develop more for "nightly business report", i'm morgan brennan. >> how should investors like you factor in geo political tensions could global flash points start to infect values? here with inpsych is paul christopher. market strategist with the wells fargo investment institute. welcome. good to have you with us. >> thank you. >> why do you think global tensions haven't affect ed the markets much over the past year nd especially not this year? england and elsewhere. this missile test yesterday. but the market seems to sort of roll merrily along. >> that's right. yeah, there's several reasons i can think of. one is frankly, we've had a synchronized recovery in place since the middle of last year and investors have just become aware of that. since late last year, call it november or december. the second is really the continued say ongoing use of stimlative monetary policies. there's just a lot of liquidity sl

building more capacity in that you don't want to be in commodity when on stream >> up next, chipotle, boeing, caol fd,co-ca,or mazon plus final trades when we come back hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go.

boe and ecb in the next. of a crackdown on wealth management products and shadow banking in china taking place as well. those of the things we are keeping tabs on. haidi: we are continuing to clampdown regulatory and the impact on financials, smaller banks exposed to these wealth management products now under scrutiny. it is a dollar weakness story. the dollar index falling to the weakest since august last year. shanghai, hong kong, shenzhen online. let's get it over to sophie. sophie: more losses for chinese stocks,'s sliding for a second day has concerns around the financial risk campaign rattling investors. politics is to protect investor interest in productive financial stability. the hang seng gaining .1%, extending a seven-day rally has hong kong stocks have become a refuge. we did have that strong fix from the pboc helping the yuan maintain its momentum, the offshore rate rising for a seventh straight session. onshore rate rising to the strongest level since october. taking a look at hong kong, which o

my view on boeing is -- ken's the expert in boeing i'm not the expert but the options guy. with that. the options right now are very expensive in boeing and i always look at a stock like boeing up 35% for the year where the options are very expensive and they should be expensive because if you own boeing you have money to spend on insurance so we're seeing a premium in the options going into earnings on july 26 they built out their services. that's being grown organically and ken knows more than me on this, but the miss on the a-380 was a good miss to make. the options market is saying it's a great stock, hold on to it and buy insurance on it and a lot of people seem to be doing that. >> dennis and ken, thank you both very much appreciate it. for more trading nation head to our website tradingnation.cnbc.com. >> coming, a big blow for the nfl. a couple of big advertisers sitting on the sidelines this season >> and now your trading nation stats of the day and a word from our sponsor. >> technicians often look to wedge patterns as cat lifts for stocks a bullish wedge occurs w

in other words, boeing's formally cyclical order stream has become a lot more secular and consistentn its growth hence, how the company with predict a staggering 6.1 trillion, with a "t" worth of demand for 41,000 planes over the next 20 years. that's what i call demand. these joins join macdonald's we're familiar with the resurgence of mickey d's mcdonald's is a complicated story. the best analogy for structure might be the u.s. constitution yep, it's all about separation of powers. in our government, nobody is more powerful than the president, but he has to convince members of congress to go along with the plans. the ceo of mcdonald's has a lot of authority, but he has to get the cooperation of franchisees if he wants to accomplish anything major that's the secret sauce i don't know if the fries will travel do i look like a fry master? and he's rolling out mobile ordering and promises there will be no mosh pit of customers starnlding arou i standing around. he's experimented overseas so now mcdonald's is winning back people who strayed from the fold at the same time getting them to

shares were up 23 cents to $58.888. >>> and boeing said it expects solid demand for aircraft personnel over the next two decades. aerospace and defense contractor said over the next 20 years it sees demand for more than 1 million pilots and technicians to support the world's growing commercial airplane fleet. boeing shares up a tick to 212.18. >>> shares of amazon rose today after a wall street analyst said the online retailer will one day be the most valuable company on the planet. a note to clients, the analyst wrote he says few competitive threats to its core retail and marketplace businesses. the stock is now trading firmly above $1,000 a share. it still trails apple, though, in market cap by a wide margin. now the amazon juggernaut may be setting its sights on a new target to disrupt. bob pisani takes a look. >> reporter: it's not just retailers. now there's a broader concern, amazon has the potential to disrupt middlemen in general. here's the issue. if you don't make the object you're selling, or you don't have some sort of intellectual property, then you're just a middleman. an

sponsored by boeing. "post game the "meet the press" facebook page. by boeing. > due to mature subject matter, viewer discretion is advised. ♪ >>> i got my throat split. i got my lung punctured. i got stabbed 40 times. >> the survivor of a vicious attack shares his story in hopes that these inmates will never commit such violence. but for another inmate -- >> this life is over for me. unfortunately, i don't believe in the next one. i wish i did. >> it's too late to turn back the clock. >> i l

patrick shanahan is a boeing executive responsible for manufacturing operations. the house will be back at two eastern. members will consider a bill that oversees and regulates the washington metro. later, bills related to gas pipeline construction. see the house live on c-span and the senate here on c-span2. tomorrow the senate foreign relations committee will consider the nomination of ms. gingrich. she is the wife of the former speaker newt gingrich. both nominees will testify during our live coverage tomorrow on c-span three. >> sunday on q&a. >> when we look at president obama's domestic legacy, i think there are two things that are very important that will have long-lasting, good consequences for the united states that can be summarized in four words. his two nominees to the supreme court. >> the second of our two-part interview with biographer david garo. he talks about his book rising star, the making of barack obama which covers president obama's life up to his winning the presidency. >> i think the point to emphasize here is that over the course of his p

may stay the boe's hands. want to point to the currency. 1624, youok at g #btv will see the second round of talks has begun with sterling in a better position against the u.s. dollar. sterling well below 1.27, whole fiveow 1.26, a figures difference. nejra: interesting, bearing in mind the bilt-bund spread. sticking with the prospects of a boe rate hike, bloomberg spoke to a dartmouth economist. >> i think not. we see a slowing economy. the labor market now looks to be a problem. real wages have fallen month i months since that decision last month and are now a negative. the economy is the slowest growing economy in the g-7 and e.u. 28. we expect following consumer demand and retail sales. and there is huge uncertainty over brexit. actually, it is more certain that negotiations are complete chaos. this absolutely is not time to do anything to rates. movean we expect the next to be, once again, down. jonathan: i said that just the think notnny, but you necessarily they should or should not, but they will hike i

the boe last raised interest rates.s one thing the bank of england cares about now, it is domestically generated inflation. they have ways of generating it. it has been replicated by us here at bloomberg. the white line there for the u.k. is now available on the bloomberg terminal. the vent line is the 2% inflation target. blue dottedne, the line, is the estimate of precrisis inflation. domestic generated inflation very important for the bank of england. jinping and merkel had supper last night. trump pushes back from his global leadership role. this is exports to china from germany and imports from china to germany. germany is exporting one and it is importing. the msci emerging market currency index is having its best year since 2010, despite a 5% slide in the bloomberg commodity index. halvedrrelation almost in 2017 from last year. wonderful chart. francine: thank you so much. 200 years since the bank of montreal became canada's first bank, predating the official birth of the country itself. joining us to talk about

what is your take on the base case of what the boe is going to do?> we also doubt that the bank of england will go ahead and hike this year. we don't pencil want in until late in 2019. we think the u.k. economy is slowing, and when it comes to willive decision the boe shrink away. they're putting up a scenario of hiking. he is an important figure. i think it is not just the obvious one, but the following inflation report in november. alix: good to see you. michael purvis, weeden global strategist, sticking with us. caroline hyde will be with us throughout the program. up, don't miss it, this is bloomberg. ♪ alix: this is "bloomberg daybreak." volume is light. equities are stopped pretty much across the board. interesting reactions taking place in the currency and bond markets. dollar-yen, four-month high. central-bank divergence, as is where it is playing out. bond bears getting a relief here. crude off over 1%. goldman sachs says there is a risk of oil below 40. by jamie dimond speaking today about the balance sheet unwind from the fed can be more d

whether it's bank of america or jpmorgan or goldman sachs and you start looking at other areas like boeing and microsoft -- >> you're not touting the bank earnings as being great? >> oh, come on. >> coca-cola, at&t, i've got you. >> are they near the top i think they're near the top yes, they are. >> highest close since '07. >> i'm in your corner, buddy. >> we're getting the facts and the facts are beats on the earnings side and revenue side and with few exceptions, this has been outstanding so far. we still have a lot to go. >> you with them >> i'm with them there's the so-called wall of worry out there. i don't think it exists. there's complacency. i agree with that. the question is, what do you do with that in terms of your investment outlook you can't plan for that black swan event sure, you take out protection. but i'm not sure that the vix needs as much now as it did in the past here's what you do find the best companies you can and you go long. sure, you go long on valuation on some of these and the old price in terms of a concentrated push forward, josh, you believe there's a much

leading boeing again, big mover. right now look at the leadership it's very similar to what we've seen through the year. we've got biotech was on the leader right at the open slightly negative. semiconductors, another leadership day generally all the leadership groups recently from the downside, materials, industrials, energy not doing much the oil is climbing towards 48 in the last couple of days we're going to enter a new phase of the earnings season we're through the first third, almost 40%, and it's going to turn to energy now and energy's very important because it's the biggest contributor to earnings for the second quarter and even the third quarter as well more than a quarter of all the earnings we're going to get, increases are going to be due to energy, tech and financial is going to be there too. and there's a big three. everything else is just 25%. so that's why we spent a lot of time on tech and financials and we're going to look at energy right now. now tomorrow, exxon and chevron are going to be reporti

as long as boeing can keep the momentum, that's good for the dow. told, if it help the been for boeing, the dow would be in the negative. shah, you were paying attention to facebook earnings, fascinating story. investors misread the numbers initially. >> when they came out, investors expecting a relationship vis-a-vis nongap to switch to full gap. >> let's tell people what gap, is my friend. >> generally accepted principles. the folks didn't recognize them, they realize my gosh, this is better than we thought. the epps were up 69%, the monthly users are up 19% to 2.01 billion monthly users. 66% of those are viewing daily. so the numbers are hitting it out of the park. the revenue out of the park, they hit it in the after-hours, they hit another record high. >> they did caution the limit to ad going they can put into the stream. that's got some concern going. >> they have cautioned for a while. 45% growth, tremendous revenue. gerri: hard to argue. here's what i'm going to argue with you. the dow at a record high. nasdaq, s&p 500, you know, there are

boeing and ford. stack smash records.h the nasdaq and s&p 500 closed at all-time highs yesterday. dow industrial expected to be up this morning again. we are looking at the major averages continuing to extend all-time highs. in your upcoming games across the board to report as well. at 200 apache%. caci three quarters of a percent. stocks mostly higher with the exception of korea as you see there. plug-in delay, attorney general jeff sessions is set to launch investigations into the intelligence community. he's not done there. the ag ready to crack down on sanctuary cities. >> these are the animals protecting for so long. >> my administration is launching a nationwide crackdown on sanctuary cities. maria: the latest in the department of justice this morning. a former house i.t. worker arrested at the border on bank fraud charges. he was trying to flee the country. florida congresswoman debbie wasserman schultz taken into custody by federal authorities while trying to flee the country. more on the investigation this mornin

boeing's move comes on the back of 10% gain yesterday. on the flip side, the transports are having their worst day in over a month 5% below their record high get this, just breaking a few minutes ago, adp shares, they probably make your payroll checks, soaring on news that bill ackman's pershing square is building a stake in the company. >> i'm michelle caruso-cabrera it's the busiest names of the earnings season. check out the names, verizon, u.p.s., adp, mastercard, twit to name a few lr then the after-the-bell biggies, and this is a biggie, amazon, starbucks and intel. here to take us inside the number on this latest session is bob at the new york stock exchange bob? >> important thing right now s&p was up until 20 minutes ago. i just want to show you the faang names here a little droop apple is tooling along doing great, that propped a little bit there. same thing with google take a look here you can see in the the last 15 or 20 minutes. what i see here is absence of bids, very, very light volume, drip drop a little bit below the prio

industrial companies has just shot up among the companies which have seen their shares rise since boeing which besides civilian planes has a large range of military aircraft as well as lockheed martin a company famous for its fighter jets and missile systems and of course raytheon a major u.s. defense contractor. a top line defense discretionary number is six hundred three billion dollars that's a fifty four billion dollar increase. we must also ensure that nato members meet their financial obligations and pay what they owe. hundreds of billions of dollars of investments into the united states and jobs. however there are a growing suspicion is that the president simply favors those companies who supported him during his presidential campaign. process takes a closer look. president trump has chosen raytheon executive mark aspirate to be the next u.s. army secretary now why should you care well first of all trump loves the military industrial complex that was submitted new budget to rebuild our military we will give the men and women of america's armed services the resources you need beaut

in that case it is spacex and boeing. like -- the6 is spacex team is like, we are going to do this before boeing. function to forcing get things done. i can't tell you how important that contracting structure is. that is night and day. there is way too much in is the solehere it source cost plus contract. economics 101 -- whatever you incentivize, that will happen. finde company manages to some excuse to double the cost of the contract, they will get double the profit because they are getting a percentage. they will do exactly that. and they are not going to say no to requirements. the government will come up with some requirements. they could make a lot of sense, and some could double the price of the project. requirements,e the contractor will always say yes. >> there could be a future for you in government contracting at the state level. >> [laughter] hickenlooper: i find it so refreshing to have the unbridled truth. guess you're going to get some calls from investors suggesting you don't say that so frequently. i want

lobbyists in the united states and by the way the love is mutual apparently aerospace defense groups boeing and lockheed martin each donated one million dollars to trump's integration fund now they are enjoying the fruits of working with the new administration we have an administration that is significant and supports an international work for the domestic us in the street and the has opened several doors for us. so what's wrong with this i mean everyone's happy right well the answer comes from the thirty fourth president of the united states white david eisenhower in the councils of government we must guard guard against the acquisition of don't want that influence whether sought or runs by the military industrial complex. the but enjoyed by the disastrous rise of misplaced power exists and will persist. we must never let the weight of this combination in danger our liberties or the democratic process let's wait and see if history really has taught us anything about misplaced power and unwarranted influence we got rasmussen giago r.t. . but i'm a poet and says the time has come for russia

sponsored by boeing. >>> hello, everyone.re going to kick things off on this sunday with more attacks against the media from the commander in chief. the latest coming just this morning slamming the press. some argue he crossed the line with this tweet. that tweet coming after this jab last night against his favorite target. the press. >> the fake media is trying to silence us. but we will not let them. their agenda is not your agenda. you've been saying it. >> that moment played out during a speech to honor veterans. the president back now in his sum r retreatn

boeing shares road a fraction to 202.37. zblnc >>> it was close, now, berkshire hathaway way has agreed to pay 9 billion for the energy future holding company, one of the nation's biggest power transmission outfit, but berkshire may face competition. elliot management is considering a rival bid. berkshire hathaway finished up 25$,00 >>> mondoleze said the cyber attack would impact its final results. the maker of oreos and sour patch kids said the shipping it experienced would cause revenue growth for the second quarter to fall 3%. the shares were none the less up 16 cents on the session to 43.22. >>> sears is closing more stores. they said it will shut eight sears and 35 unprofitable k-mart stores by early october. sears also said it will continue to open smaller constant stores, which it focus on its strong erakat cats. the shares were off to $7.78. >>> rothwell collins is raising exp new buyback program by authorization to cover buybacks into 2018. shares were unchanged, but finished up nearly 1% to 106.36 and the mobile s

the dow would be negative without boeing. at&t up 5% right now.09? nearly 10 years? straight to bill lee, form head of north america economics of citigroup, now the chief economist. why isn't inflation moving higher? because clearly that's what's holding the federal reserve back? >> you are absolutely right. three indicators you should be looking at. how much are firms hiring? there's not a lot of wage pressure. are wages growing at more than 2.5%? they're not. and finally, do firms have pricing power? can they raise prices and leave it there? they can't. every time the firm tries to raise prices, they have to lower it again. there's not a lot of incipient inflation in the underlying economy, the fed should be on hold. here's where we have the real problem, we don't have principles, we have leadership and personalities driving it. that's why congress is trying to pass laws about putting governance into the fed. >> the things you're looking at are things like just look for better jobs numbers and better move to the upside. here goes a great move, t

i don't think the boe will hike in august. as long as the gdp report this month is not a disaster for the u.k., my preference would be to put long risk on sterling into that decision. the boe may take the opportunity to provide a little support under the pound. euro-sterling, as long as we're at these levels in the gdp report isn't a disaster, i would be looking to put risk on the long side of the pound. francine: do you do euro-dollar or euro-pound? pound-dollar or euro-pound? stephen: i would be more interested in doing this from a euro-sterling perspective. on the one hand you have political risks from a snap election, how labour is doing in the polls, those are going to materialize. the rate revealed of eight in september. party conferences in october. that will largely offset the impact of a weaker dollar. there's not a lot of move on either side. euro-sterling is the one where you want to look for opportunities. francine: what do you make of the hawkish comments from governor carney? unclear whether it was some kind whet

boeing, lockheed and grumt. also watch to replace the minuteman three missiles to drop from three to twoment a deal expected to be worth at least $60 billion over three decades. northrup, boeing and lockheed are all bidding. nato allies just s4% this year after intense pressure from president trump. and while it will take time for approval, a flurry of arms deals will boost futures. i'm morgan brennan. >> still ahead, why small caps could delive >>> warren buffett's berkshire hathaway way is buying 700 million shares in bank of america. that makes him the largest shareholder in that bank. berkshire plans to convert the purchase into common shares. it gives the holder the right, but not the obligation, to buy a security at a certain price and quantity at future time. also the top shareholder of wells fargo. >>> cara therapeutics tanks. that's where we begin the market focus. they cut the rating on the stock today to neutral from buy. saying the results from the company's pain medication study were disappointing.

. >> did you >> it's like boeing.e're not as bad as you think it lends itself to another story as well which leads to goings on about charter which is this belief that verizon needs to do a deal for content although that's highly unlikely but to your point that quarter was a good one given expectations. you don't want to go too far it wasn't the quarter they had 7 or 10 years ago when they owned the network. >> that's why john said to me on twitter that's really good, well terrific because you have 3.5 times growth i bothered david this weekend thinking this was going to be like the biggest thing ever and didn't realize that it was a non-starter. it ran so great, i thought we were going to come in here and it's just going to be battle royal. >> it's far from over. >> it was an interesting statement we got last night from charter itself so softbank now, masa is just very difficult to understand exactly other than he just wants everything potentially. >> well doesn't musk want everything there's kind of a want everythin