kate kelly reports from austin. >> it may be more s has ceded from the union. but that independent spirit is being ch thin on friday greg abbott establisd the texas bouillon de fa for gold and other precious metals. officials t coming months will achieve a few objectives. one is to generate profits for texas, hopefully by luring gold . another is to re-establish gold as the basis for every day transact so that when you're buying somethi you can pay with a check or a credit card backed by gold as opposed to d lastly there's protecting gold from getting in under the tenth amendment, texast when roosevelt took back citizen's gold in order to shore up the flailing economy at the time. backers of texas's new law says it may have benefits too. >> a lot of people when they talk about currency and making payments the alway think in dollars. for people all over the world and i believe that we should maintain our current i think that gold and silver are legitimate constitutionally allowable pay sm and i would like to see the state be able to do that. >> a lot remains to

kate bilo live along kelly drive in philadelphia and kate all of a sudden everything is exploding across the area and i know you have some rain as wealth. >> reporter: it absolutely is exploding. kathy most of the day philadelphia has been pretty quiet. we had the storms off to the east and the ones off to the west. now this big lull of rain -- wall of rain is about to slam into the city. in the past 10 or 15 minutes the rain has really picked up in intensity along kelly drive. we've seen about four or five flashes of lightning. we're hearing rumbles of thunder so i put the umbrella down. we have the mast down on the truck we're not taking any chances being out in this. people running people boating along the schuylkill. kelly drive behind me so far we haven't had ton of rain here but what we're looking for for the rest of this evening is a flash flood threat maining on the roads. we know how dry it's been through the past month or so. the streams, the creeks can main the take it. the roads however especially roads that are prone to flooding kelly drive, martin luther king drive, the roa

kate kelly covering that story for us. some additional color on the situation. >> it's a tense time in san juan which the interview highlighted. we had governor garcia padilla saying that puerto rico's $72 billion in debts are not payable. raising questions about whether or not various issuers around the island including the electric authority, including general obligation bonds and others would be able to make debt servicing payments tomorrow that total almost $2 billion just due tomorrow. news crossed the wires at about 600 million of general obligation bond payments would be made. representative pierre luisi thinks the discussion needs to be about economic growth. it's not news that puerto rico has these issues. he thinks the message is wrong. default is not good for the island. he would not support it. he says some of the other measures under discussion there's no political support for. he would like to see chapter 9 which is only available to munts pallets. he would like to see statehood in the future and introduced l

payments for a number of years and increasing taxes and cutting spending will lead nowhere and kate kelly is live in san juan for us. is everyone owning puerto rico's triple tax-free debt waits and watches, right, kate? >> that's right, mandy. it's crunch time here in san juan where governor padilla as you just mentioned said very recently that the economy here rather is in a death spiral and that the island's debts are simply not payable. now he was referring, of course -- he was referring, of course, to some $12 billion in an overall debt load it a puerto rico holds, and tomorrow based on estimates from market participants i've spoken to some $1.9 billion is due to creditors above different loans, the puerto rican power authority, general obligation bonds among others default legally speaking is not supposed to be an option nor is chapter 9 bankruptcy though there has been legislation to try to change that. meanwhile though the governor is sending a message to investors that they need to show leniency or risk coming away with nothing. earlier today on cnbc muni bond expect looked into t

kate kelly there on the texas gold rush and looking remarkably dry in the circumstances.usly, gold traditionally a safe play has barely budged off growing concerns about greece. in fact, it's down nearly 4% this month and flat on the year. so why isn't greece moving gold? dennis gartman, editor of the gartman letter, is here with us on set. still a lousy trade after all these years, dennis. >> they still allow me to trade, still allow me on the show. >> gold is a lousy trade. not that you're a lousy trader. >> it's been a terrible trade if you've owned gold in dollar terms. no ifs ands or buts. it's been an absolutely wealth-destroying and psychologically destroying trade over the course of the last almost decade. if you own gold in other currency terms it's been a great trade. but in dollar terms it's been a terrible trade putimco is making a very smart move, taking delivery of their gold and moving it back to texas. i think that's a wise move. >> why? >> well, sitting on two endowment committees, one north carolina state and the university of akron, this is unusual for

kate kelly is live in a very rainy austin texas with more. kate? >> reporter: hey brian.hat to do with their gold and they put that into writing with friday with a new bill signed into law by governor greg abbott that day that establishes the texas bouillon depository. this is the first state-owned gold and precious metals vault, vaults all over the country, one of which operated by the new york fed on behalf of other central banks and other investors but texas wants to establish its own. it will be a safe where people can store precious metals underground and it will establish a bank where people can write checks and use gold as a transactional legal tender. they are hoping to encourage that. they are also hoping that it will cause some major investors including the university of texas investor management company, the nation's second largest endowment, to repatriate allotted of gold that's stored out of state, up to $1 billion in physical gold is the estimate but that's not a done deal. >> if it is created and that provides us with a lower cost then we're very happy to u

cnbc's kate kelly has the details. >> after a pretty lackluster few years as the stock market ripped it's been a pretty good year for hedge funds with the asset class up nearly 4% through may according to hfr figures beating the s&p by a respectable margin. and while the top performers are kind of an eclectic bunch if you look at the list it includes a number of funds with exposure to booming equities markets in russia and china as well as an idiosyncratic best ideas fund that's got emerging markets as well as u.s. stock and currency trades. there are some general strategies work well out there too. equity hedge funds the trade long only are doing best. reports hfr recently. 5.1% up through may. event driven strategies which include multistrategy funds and activists in this categoriationization are up nearly 4% and emerging markets are on fire. among the substrategies shorting is a notable weak spot down nearly 3% and commodities are barely performing as well. looking at some specific names that show the tread nahall nahall shopin's fund which features just a dozen names or so is rep

meteorologist kate bill other is tracking storms live along kelly drive kate? hris. we do have have pretty steady rain coming down here along kelly drive and heavy thunderstorms rolling through the entire region. we are hearing thunder, we have seen a few flashes of lightening. trail has cleared out here. traffic is moving okay behind me since martin luther king drive behind us ape also schuylkill expressway. things are very slow. they will get slower. as you in move west that is where we have got heavy rain falling right now. lets go out to storm scan three. you can see what we're looking at this evening. we've got heavy rain lining up down i-95 corridor. heavy rain in the western suburbs right new we are seeing pockets of rain aroundard more area back through main line. down in portions of delaware county and that extend near baltimore area where strong thunderstorms are moving through and potentially or previously tornado warn storm pushing through salem county still with strong wind. take a look what we're expecting on the road for rest of tonight. we will w

we'll be watching closely, kelly. >> kate, we. thank you so much.en this and what's happening in greece is certainly catching -- >> uncanny, right? >> our kate kelly back at headquarters. take a look at markets. european markets are closed. perhaps that selling pressure migrating here. the dow is now down 218 points. 1.2% declines. the s&p down 25%. the nasdaq down 72%, almost 1.5%. and we have to talk about the impact on bonds, too. rick santelli, what are you seeing across that space? >> well, what i see actually is trying to get to the original issue that created the problem of greece. maybe we have to go back to two dates, may 29, june 1, 2005. want to know why? tune in after the break. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? here at td ameritrade, t

. >> let's go to kate kelly. >> dow jones just out with a report that the s.e.c. has opened multiple investigations into activist hedge funds. the question here whether or not these hedge fund formed alliances without making disclosure to property authorities. if that's the case it could be a violation of federal securities laws. we do know there are multiple investigations per dow jones and that requests for information have been sent to these hedge funds, melissa. we'll keep you updated as this unfolds. >> what would be in question? would it be the timing of when these hedge funds got in their position? were they colluding prior to -- >> i think that's a question. if you're going to form an investment group and taking a substantial stake in a company, more than 5% for instance you need to disclose you're part of a group and make sure the proper disclosures are made. otherwise you may have a strong impact on market prices as any major investor would, even acting on their own. especially if you have two and it's a material investment, that can move the needle for

kate? >> kelly, people are very shocked.le presence traveling all over the world working with clients seven days a week, all night. to think he passed and at this very young age unexpectedly is just a shock to everybody. everybody i've spokeown to on wall street be this they in the hedge fund world, private equity alumni of jpmorgan, people still there, share that surprise and really sad necessary. sheryl sandberg posted something on facebook about her sadness at the loss of a friend and collaborator. jpmorgan of course one of the underwriters for facebook's deal, its ipo. and i do remember when her book came out, "lean in," jimmy lee, interestingly, being a man, put together a women-only breakfast at jpmorgan in sheryl's honor and she spoke about the book and brought together really quite an array of women not just from wall street but from the legal community, from the entertainment community, and he really was somebody that was good at bringing people together. so i think wall street and beyond will feel the loss. >> he w

wasn't a royal photographer behind the camera though, it was their mom, duchess kate. kelly co-beyeah is in london with more. kelly, good morning. >> reporter: good morning, erica, what toward beat prince george in the high socks shall right? duchess kate, she actually studied photography as part of her art degree and she put those skills to use a couple of weeks ago while home with the children. prince george is perfectly posed, a smile, a kiss and a proud mom behind the camera. kate snaps the four photos herself at the couple's country home two weeks after the giving birth to princess charlotte elizabeth diana. it's the first glitches of the future king not as a feisty only child, but a big brother. just like with george's first family picture, taken by grand pa middleton, prince william and duchess kate are doing things their own way. giving twitter followers the first look at george and charlotte together saturday night, as a thank you for the stacks of cards and gifts. and twitter responded with a chorus of so cute. prince george was kristened in the same london chapel

our own kate kelly joins us when mr. currie is here. thanks for coming back.s is a nonevent with opec? >> it's a nonevent from a market perspective. it's moving from a quote base system to going to capacity. when i look at the event that was probably the most interesting this morning. is indonesia's interest in actual actually joining opec. there's only one reason you could ask why would an importing country want to join the organization that's become a mark the tool, a branding mechanism to be able to track capital. you look at drilling in saudi arabia, core opec is going straight up. if we think about indonesia with the ore ban, their focus was to track capital. i like it use the term, instead of opec. owe pick. organization of petroleum investing companies. >> if the jobs report tells us that the economy continues to improve, globally the numbers continue to improve, especially in europe, how does that factor into your now forecast for where you think oil is going to go? has it changed at all as a result of that in. >> i definitely think we have seen an imp

our michelle caruso-cabrera is live in athens with the latest on the negotiations there and kate kelly is in puerto rico's capital as the commonwealth stocks trying to rebound following the worst day of stocks in a couple of years. the s&p 500 still tracking for its first down quarter in the last ten. so joe, a little bit of a bounce today. but you can feel the nervousness that remains in the market as a result of the issues that we laid out at the top of the show here. >> it's not just about nervousness, it's about speculators and risk managers selling any type of rebound they're getting in the market. that's what happened yesterday and what's happening today. that's going to be the pattern and the trend until we deepen into the weeks of july and get some economic data as long as some earnings guidance. >> steve grasso, give us an idea of what you're thinking down there. you're on the 50 yard line of this action. and what sort of levels are you watching and should we have our eye on today? >> 200-day, that's the biggest level in the s&p cash. let's call it 2054. just as joe just said.

kate kelly now following the story of hedge funds that were betting big, maybe finding themselves on the wrong side of this trade. >> what's interesting here, the most notable players in the market invested in some way in greece whether it's through bonds or equities. one person i'm thinking of, paulson, green light capital, york capital is another one. a lot of -- and dan started a $750 million -- they have not started but at its peak in 2013-2014. so people are betting that there might be volatility but there would be great yields and returns in the coming years and that we would probably not come to this place. however, the hedge funds i've connected with the last day or two are really just very focused on this to the extent people were shrugging it off or complacent. i don't think they are now. the betting is there may be a deal. 6 60/40 in favor of a deal. they're preparing for every eventuality. i think there's a feeling that if you are in greek equities, you've written them down to zero. your issue was two months ago or when alexis tsipras was elected. you could see this comin

kate kelly is on the at exchange in brokerage conference and has a special guest. katie?am here with cftc chairman who was kind enough to join us on the year anniversary of his year into the job. thank you for being here. >> it's a pleasure to be here. >> glad to have you. the hot topic is the oil market. it has been on a super wild ride and a decline of more than 40%. a lot of day to day and week to week volatility. do you have concerns about misconduct and how are you approaching it? >> we engage in surveillance across all of our markets. we are focussing on the futures markets. the derivatives and we get a transaction tape and we get reports from large traders and if we see evidence of improper activity or concerns we will look into it and we will take action. the oil market is a global market. there very powerful forces at work here. everything from the shale revolution and outlook in this country. there very powerful market forces at work and i am not an economist and don't forecast prices. that's not my job. we will engage in surveillance and take action where we se

joining today's panel for more thoughts, evan newmark and kate kelly. welcome.toli and guy adami. let me start with you. yesterday we were talking about what a positive tone there was in the market shrugging off some of the greece news. what do you make of the giveback today? >> it's been the pattern, you get to the top end of the range and people see it as an opportunity to rest and pull back. subtle rick off action underneath the surface today. high-yield bonds, underperformed high grade bonds. seemed like a general softening. it's hard to make a case i think, that the market is radically mispriced here. we haven't fed on hold. greece being strung out. earnings flattened out and the market going sideways for months. >> i agree. i think we are desperate for a news story. i think the world moved on from greece. >> will that be the case until it happens? >> i think the worst thing is for them to kind of fudge some kind of agreement with greece and then have another thing going on for another three months till they break the terms, whatever they agree to. best thi

let's get more on this with kate kelly. >> hey there, mandy. activists veteran jana partners made a big move in recent months on conagra and went public with its 7.2% stake last night. their persistent underperformance stems primarily from its early 2013 purchase of a private label food manufacturers that's responsible for stocking grocery and other retailers with products like hot cereal and mayonnaise that they then put their own names on. jana wants not only a top to bottom strategic cost and capital review with recommendations for changes, it has put together a handful of potential new directors, including its own founder barry rosenstein and two food industry veterans who have also bought conagra shares alongside jana. though jana has launch dozens of campaigns since its 2001 founding, they have nominated directors on only three past occasions according to 13d monitor monitor, more recently at a canadian company, a bid that failed in 2013. >> thanks for that. conagra at an all-time high today. >>> how can you play moves by activist investo

and i know you knew him and joe knew him and somebody else who knew him well was kate kelly.orning to reflect on jimmy lee's life. >> i'll never forget the first couple of times i met jimmy. i was in my early 20s working at "the wall street journal." he invited me to the office to have sandwiches. when you're a reporter covering finance as you guys remember, it's very daunting. and, you know, he had all these flat screens and incredible view. and the phone would ring and he'd actually pick up and have a generic conversation with hey buddy, yeah, we're going to get going on this deal. then he'd write something down on a note card and it'd say something like barry diller. and i was like wow. he was great at talking about the ropes and how finance worked. and the conversations got more sophisticated when i had a clue. but it was striking. i know he did that to a number of generations. >> absolutely. i think people don't appreciate because, you know, here we're looking at images of him, but he was not a regular guest. he came on cnbc a handful of times. but he was responsible for

kate kelly, thank you. from there over the next couple weeks. thanks. >>> when we come baa b, the state of business. and as we head to a break right now, look at the u.s. equity futures. different picture from yesterday. this morning looks like the dow futures are up by about 110 right now. s&p up by 14.5 and nasdaq by 29 points. "squawk box" will be right back. ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? >>> welcome back to "squawk box" this morning. let's take a look at some stocks on the move. pentair shares are jumping after a 7% stake was made. pushing for pentair to consolidate the industry by buying its rivals. nelson peltz will be a guest at the delivering alpha event that

kate kelly joins us from austin texas. >> hey andrew.m standing in austin in front of the texas state capitol where lawmakers have just laid the legal groundwork for establishing the first state-owned gold and precious metals vault in the u.s. the depository signed into law by governor greg abbott will allow people to store gold silver, other precious metals here in a state-owned facility that will have certain protections that others don't at what officials hope will be competitive rates. i spoke yesterday to dallas area legislator giovanni, the sponsor of the bill. he described his goals. >> what usually happens in any sort of down faul -- potential downfall is people start to lose faith. and we saw that in 2008 when we saw massive outflows of capital all over the country and out of our system. so what i think this does is it creates another option. and i think that alone ends up improving consumer confidence. >> in other words, the federal government under the tenth amendment, texas believes will not be able to confiscate gold in any

kate france, and tunisia. we are learning more about the massacre in tunisia. 39 were enjoying vacations at a beach resort when they were gunned down during a terrifying scene. kelly, good evening >> reporter: kate good evening. you can see the crowds gathering at the gates of this hotel. there are hundreds here. on a march against terrorism in this country. many of the witnesses we spoke to are convinced there was more than one attacker. but the government says there was one gunman a university student dressed for the day on the beach hiding an assault rifle in his beach umbrella. one attacker one gun. and dozens slaughtered on the sand. the horrifying attack captured on cell phone. >> thought it was an explosion. >> reporter: matthew and his girlfriend diane darlington barricaded themselves in their hotel room, recording the chaos blow. >> you could hear the screams and absolute horrid screaming. >> reporter: police say the lone gunman had four clips and a grenade. witnesses say he was able to move from the beach to the pool area and the side street before he was shot and killed. at the airport today, some survivors were at a loss for words. >> it was just a com

from the weather center a as we continue to track the storms but our kate bilo is in the storms along the schuylkill river and kelly drive in philadelphia where we have had some heavy rain, kate but nothing like what we have seen in new jersey. >> reporter: that is right kathy. it has been picking up for past few minutes now. this is probably some of the heaviest rain we have been seeing as that wall of rain moves in the city. we have not seen severe wet are they have seen off to the south but we have had rumbles of thunder flashes of lightening along kelly drive. you you can see kelly drive is moving okay. we have large puddles forming these road are prone to flooding they are low lying road along the river if you come over with us this way we have our buddy here, she went behind camera, of course, 76, schuylkill expressway, martin luther king drive everything looking like a slow to the crawl right now. everything is slow. not only wet road and spray but falling rain. it is falling at a steady clip at the moment. you can see it hitting cue kill river there. that bill slow down as well as wipers are going and rain

kelly. back over to you. >> all right, kate thank you.we didn't know the greek banks were in serious trouble. restricted default. will that have practical implications beyond what we've already seen? >> with the banks not open and basically people thinking they're insolvent without some kind of a fix here i don't know that it tells us much we didn't know before. >> there are four major greek banks. alpha pereas nbg, euro bank. nbg trades here and was hit hard today. sara, we're not sure when the greek stock market is going to reopen. >> it's going to be hard to see whether the market and the banks can open in any meaningful way ahead of this referendum on sunday. that's what we're going to be watching. there is talk and reports that they'll open at least just for the pensioners on thursday. sunday's the big vote. tomorrow's the imf payment. by the prime minister alexis tsipras tweets this afternoon it doesn't look like they're going to be paying that payment, calling themselves asphyxiated by the austerity. he wonders how can we actually

addressed by kate connor and the first thing that i want to address today a letter we received upon may 27 lecture which asks for a number of things one is it additional set backs from the kelly center we're going to do that and show you a new design we've submitted that to t n d c yes they've asked for additional materials and entertainments of the lightwells and we've agreed that that as well they've asked us to agree to assist curry center that is adjacent to our building on the other side to protect it's garden and we've agreed it to that as well. >> it is also asked us to address the o can say building and presented by kate connor we were able to remove the stair tower at the request of the staff and set back leveling feet between turk and our new building and remove that stair tower inside the building with a loss of 4 unit we're not in front of you the design change that was rhetoric by t n d c requires us to lose another 4 units we've agreed to do that as well i've made a number of changes to try to accommodate the concerns to the neighborhoods the other issue that was mentioned the provision of the below grade unit i've addresses this back in september and in septemb