mr. blatter and mr. warner's activities, i would like to point out that those were private individual secret transactions. with the full resources of the department of justice and the fbi, it took four years to bring to light. we are a soccer organization with our greatest focus on developing all aspects of our sport in this country. i wanted to point out that those private transactions also work for regional sponsorship and regional broadcast rights. that has nothing to do with u.s. soccer and our rights, and our tv, and our sponsorship. i think that is an important part -- point of distinction i would like to make. >> mr. flynn, thank you. let me ask a follow-up question. when the u.s. department of justice and the u.s. attorney's office announced indictments you and your colleagues at the u.s. soccer federation would be surprised that there would be some activity occurring at fifa or concacaf that would result in indictments? that would surprise you? >> senator, i was not aware of any part of that inv

mr. blatter. great peril for the chance of hosting 2006 and having a seat we continued to give but that is a proper course of action to reform fifa. >> i want to make clear, mr. flynn, that my comments are directed against the collective you, not you personally executive officers, the board members, the organization u.s. soccer federation and i want to ask you as a matter of fact why he declined the invitation to be here today? >> when the notice came appearing, we anticipated rather broad and specific questions potentially, it was determined with outside counsel that i would appear before the senate subcommittee hearing. >> what's the reason that mr. july they didn't? >> i think it was a comfort level that i had more knowledge of the day-to-day operations and events, questions related to that. >> don't you think he has an obligation to answer the questions that we've been directing to you? >> i would answer if you're not comfortable with my answer can we be more than happy to respond in writing to

mr. blatter and mr. warner's activities, i would like to point out that those were private, individual, secret transactions that with the full resources of the department of justice and the fbi took four years to bring to light. we are a soccer organization with our greatest focus on developing all aspects of our sport in this country. so i wanted to point out that those private transactions also for for regional sponsorship and regional broadcast rights. that has nothing to do with u.s. soccer and our rights and our tv and our sponsorship. so i think that is an important point of distinction i would like to make. >> mr. flynn, thank you. let me ask a follow up yes to that. when the u.s. department of justice and the u.s. attorney's office announced indictments, you and your colleagues at the soccer federation would be surprised there could be some activity occurring at fifa or can cackaf that would result in indictments, that would be a surprise to you? >> senator, i was not aware of any part of that in

mr. blatter and mr. warner's activities, i would like to point out that those were private, individual, secret transactions that with the full resources of the department of justice and the fbi took four years to bring to light. we are a soccer organization with our greatest focus on developing all aspects of our sport in this country. so i wanted to point out that those private transactions also for regional sponsorship and regional broadcast rights. that has nothing to do with u.s. soccer and our rights and our tv and our sponsorship. so i think that is an important point of distinction i would like to make. >> mr. flynn, thank you. let me ask a follow-up question to that. when the u.s. department of justice and the u.s. attorney's office announced indictments, you and your colleagues at the soccer federation would be surprised there could be some activity occurring at fifa or concacaf that would result in indictments? that would be a surprise to you? >> senator, i was not aware of any part of that inv

mr. blatter? >> not only mr. blatter. there are dinosaurs in the executive committee that don't believe in reform. let me say this. we're going to see next week at the executive committee meeting fifa executive committee adopt new reforms. reforms that we recommended years ago to be adopted and that were put aside. it is not what is on paper. it is not going to be the compliance program. it is not going to be the change in governance structure, it is the culture of the organization that has to change. and you can't have a change in culture unless you have people within leadership that believe in ethics and values. >> let me ask you this then, what is the motivation for that change to occur? what needs to happen through the u.s. soccer federation, others around the globe, today what we're doing here, have any consequence on these issues because what i assume, that the opponent to change is financial. there is apparently significant amounts of money that surround fifa and those involved in this -- what you describe culture.

mr. blatter? >> not only mr. blatter. there are executives who don't believe in reform. let me say this. we are going to see next week at the executive committee meeting, fifa executive committee meeting adopt the reforms that we recommended years ago to be adopted and were put aside. it is not what is on paper. it is not the compliance program for the change in government berkshire. it is the culture of the organization that has changed but you can't have a change in culture unless you have people in the leadership that believes in ethics and values. >> what is the motivation for the change to occur? what needs to happen through the u.s. soccer federation, others around the globe. does it have been a consequence on the issue because i assume the opponent to change is financial. there is apparently significant amounts of money that surround fifa and those involved in what you describe is culture. what steps need to be overtaken today, tomorrow in the future. >> number one the sponsors have got to take -- not only the sponsors, big media outlet on media rights have got to

mr. blatter cannot leave had his head held high. he is trying to leave on his own terms still. >> another extraordinary die at offensive at a headquarters. >> fifa has given money to underdeveloped countries to promote the game. some claim it also helps fifa leaders buy loyalty from member associations. al jazeera reports from the caribbean island of angulia. >> welcome to the caribbean island nation of angulia. many here call it paradise, because of the white stand beaches and at turquoise waters. fishing and saying for the 16,000 people who live here is part of life for many. the national football team is ranked as the worst in the world. it's been 15 years since they won an official match and seven years since they scored a goal. they once lost to he will value have a door 12-0. there's a football only stadium in the capitol completed five years ago with money given to the angola football association by fifa. fifa has given $1.7 million to angulia in the past decade. >> would this stadium have been built without the help of seth

mr. foreman blatter? >> not only mr. blatter. there are dinosaurs in the executive committee that don't believe in reform. but let me say this. we're going to see next week at the executive committee meeting fifa executive committee adopt new reforms. reforms that we recommended years ago to be adopted and that were put aside. it's not what's on paper. it's not going to be the compliance program or the change in governance structure. it's going to be the culture of the organization that has to change and you can't have a change in culture unless you have people in leadership that believe in ethics and values. >> let me ask you this, then what is the motivation for that change to occur? what needs to happen through the u. s. soccer federation, others around the globe, today what we're doing here have any consequence on these issues? because what i assume that the opponent to change the financial. there's apparently significant amounts of money that surround fifa and those involved in this -- what you described culture so how is it

mr. blatter was personally involved in corruption. shares in china have suffered the biggest one-day fall in the past year, despite recent efforts by the government to support the market. the main index closed more than 8% down. analysts say it was triggered by weak economic data and lack of confidence. carrie gracie explains. reporter: for three weeks, the chinese government managed to hold off the storm. but today, it broke. beijing was congratulating itself on master minding a rally when the stock market saw its biggest one-they fall in eight years. this is the stuff of nightmares for a government which likes to be in control. why today, and why this scale? no one really knows. the only protectable thing about the market now is its unpredictability. and the alignment is spreading not only in china but around the world. >> china is hugely important for the world economy. the central bank in china will buy its own shares of the companies in the country. the entire world economy would have a problem and greece will look like a childre

mr. blatter is exactly the wrong man to lead reform. >> do you think that's the last chance for fifa or us journalists we love to talk about it but actually when it's going to come round to the next world cup people will still love football and the world cup will be the biggest sporting event going? >> well it's the biggest sporting event going but i think you have indications that this was an organization that is no longer viable. it needs top-down reform. and this is kind of you know it goes to the heart of the negotiation between the public and sport. at aen broaderat a much broader level. the least sport can do is the open administration and accountability to the public. >> looking ahead to the future a little bit who do you think would be the best successor to sepp blatter when it comes to putting fifa back on the straight and narrow, certainly changing its image? >> well i think we've got in fifa a cultural problem you know with great respect to the people in fifa. we need a breath of fresh air. this is an organization that is pervasive cultural problem. you look at great business bo

mr. blatter. openly criticize sepp blatter or try to publicize the corruption while inside fifa? >> the executive committee members are elected by regional confederations. however, mr. blatter has exercised undue influence over those elections and blatter undermined the independence of the executive committee. matt: you did write a book exposing a lot of the things happening in fifa. sepp blatter would make ridiculous suggestions to the executive committee and even if they did not agree with them they did not always support his suggestions for the way fifa would work. >> the executive committee that is the reason why we failed to oppose his proposals to choose to world cup venues in 2010 at such an early date. that was the beginning. matt: 2010 was the first time they chose to world cup destinations at once. they chose qatar, which does not make any sense. why would anyone want to play there? it is too hot and they have no history in soccer. and russia. it is like committee members were trading vo

mr. seth blatter in a recent election. we did so including potential impact on our possible bid, the host the 2026 mens world cup. but u.s. soccer believes good governance and good leadership at fifa is paramount and more important to the sport than hosting any individual world cup. going forward we believe reform will have to start at the top beginning with the election of a new fifa president in light of mr. blatter's stated intention to resign. u.s. soccer will look to the new president to lead this reform. we understand many traditional soccer powers also believe it is time for a change. u.s. soccer will continue to work with like minded national associations and confederations to promote change and to alter the culture at fifa. at concacaf appointed a three-person special committee which includes u.s. soccer's president to help guide through this period of turmoil. and over the july 4th weekend concacaf recommendation committee unanimously approved a series of sweeping reforms to discuss governance, and compliance and

mr. blatter anderctiv mr. warner's activities i would like to.out that those were private individual, secret transactions that with the four resourcesfullars to b resources of the department of justice and fbi chick forwe a s four years to bring light. we are a soccer organization with our greatest focus onhicountr developing all aspects of our support. i wantedi wanted to.out that private transactions also were for regionalt is aimpo sponsorship and regional broadcast which has nothingould to do with us soccer and our rights and our tv andk you. sponsorship which is an important distinction. >> let me ask a follow-up. when the us department of justice attorney's office announced indictments you and your colleagues would bewhen u.s. departme surprisednt that they're would so be some activity occurring r cuemack's. indi >> sen., i was not not aware of any part of the investigation. >> the fact that someone wassed indicted surprises you. >> i just was not involved. arrested focused on domestic cy ber business.ha

mr. sepp blatter in a recent election.e did so including potential impact on our possible bid, the host the 2026 mens world cup. but u.s. soccer believes good governance and good leadership at fifa is paramount and more important to the sport than hosting any individual world cup. going forward we believe reform will have to start at the top beginning with the election of a new fifa president in light of mr. blatter's stated intention to resign. u.s. soccer will look to the new president to lead this reform. we understand many traditional soccer powers also believe it is time for a change. u.s. soccer will continue to work with like minded national associations and confederations to promote change and to alter the culture at fifa. at concacaf, efforts proceeded more rapidly. concacaf appointed a three-person special committee which includes u.s. soccer's president to help guide through this period of turmoil. and over the july 4th weekend concacaf recommendation committee unanimously approved a series of sweeping reforms t

mr. blatter is exactly the wrong man to lead reform. >> chris human maintaining his lead in duer de france 16, molina after a 201 kilometer gap. he is 3 minutes and 10 seconds clear of the field with five stages to go. he looks certain to win the tour for a second time. >> formula one is to retire the number of bianci after the death of the 21-year-old french driver on friday. the governing body has announced his old number 17 will no longer be available to drivers next season as a mark of respect. he suffered severe injuries when he crashed his car during last october's japanese grand prix. he spent nine months in a coma before finally losing his fight for life on friday. >> and that is sport. >> thank you very much indeed. is there life elsewhere in space? it's a question that has plagued kozmologists for ears. those like steven hawkings the largest ever search for life has begun. ? >> it's estimated there are tens of billions of habitual planets in our gaeks our galaxy alone. >> that's a the question humans have been asking for thousands of years. scientists including professor stephen

mr. blatter wants to go on his own face and stop humiliation but many in the executive committee want himaway and there is a chance he will step down at any moment but looks like they will probably have to wait a little longer and december would seem the most likely date for the election of a new man. it might spill in the new year and this is what they are discussing because the date is a quite difficult one to nail down. >> in terms of that succession could you wait for the man to replace blatter? >> this is the intriguing thing and it was always going to be he who replaced blatter and blatter remains on promise in 2015 and why the falling out and is he going to throw his hat in the ring and i think he is waiting for certainty and wants to be sure he will win any election perhaps against the candidate from outside of futbol from a figurehead and not straightforward and the talk is he is getting support and not just europe but needs support from africa as well conceivably to be sure that he can go from becoming european futbol leader to world futbol leader. >> likely somebody outside of

mr. blatter or the heads of big international sporting federations deserve special recognition. obel prize, it's those people. >> that's recommendation possible. >> okay. blatter, who will step down as fifa president in february met with putin saturday in st. petersburg. blatter said fifa fully supports russia, of course, holding the 2016 world cup. no deal seen there, no uh-uh. >> "new york post" the port authority of new york and new jersey is going to knock down and rebuild, wait for it laguardia airport in new york city. andrew cuomo announced a plan to modernize and expand the facility through a public/private partnership. the four terminals will be knocked down and built into one larger terminal unfortunately, not before friday when i go back. plans call for construction to begin next year. an estimated $4 billion and will create 8,000 jobs. the airport will remain operations during construction and the runway layout will remain the same as will -- >> not one dollar over budget i protect. >> or one day late. >> how long will it take? >> how long does it take to take off at

mr. blatter is stepping down as fifa head over the huge scandal many of you all are familiar with.ndicted frankly, having to do with taking bribes for votes. >> is he like the jon stewart of britain? >> i don't know. we're not familiar with him. he looks like he's doing a serious service. sepp blatter? on the positive side for the soccer federation the newest version of the official video game has women soccer players. alex morgan is featured on the 16th u.s. addition. a canadian star on the canadian addition. for the first time there are women teams in the game. world's most popular video games. that's fantastic. >> the latest novel by harper lee is a big hit. harpercollins is calling it its fastest seller in history selling 1.1 million copies in the u.s. and canada. it was completed before her pulitzer prize winning "to kill a mockingbird." set in the same town 20 years later. >> the instagram website is taking a page out of the mobile version. sharing social network adding a search feature. users will be able to search user accounts just like smartphone. it now has more than 300

mr. blatter or the heads of big international sporting federations or the olympic games deserve special recognitione that deserves the nobel prize, it's these people. some of his economic principles are pretty inven tif you would think. that's not a real nobel prize anyway. >> the economics one, right. >>> coming up living the high life. the coo of ritz carlton joins us with a read on luxury travel. then we're going to talk plastic cars with the ceo of the world's largest collector auction house. as we head to break, take a look at the pharma stocks this morning. pfizer and merck trading. we're going to talk to an analyst in just a few minutes. >>> welcome back to "squawk box" right here on cnbc. among the stories that are front and -- the stocks that are front and center dupont earnings matching estimates but revenues falling short. shares right now you can see are down in the premarket. also pfizer earnings and revenues beating the street. the pharma giant raising its full year outlook. plus check out shares of merck this morning because earnings are topping by a nickel. don't miss the ceo ken fr

meanwhile, president sepp blatter will not attend the women's world cup final due to quote, personal reasons. >> surprised that from mrat blatter. i wonder if he's going on a family holiday? visiting the doj. >> perhaps. >> or more likely he's not going to leave switzerland whatsoever. let's remind you the headlines before break. negotiations with greece are put on hold until after sunday's referendum. puerto rico makes it's scheduled bond payments avoiding a possible default and attorneys generals are set to hold separate news conferences discussing the bp oil spill. we're back in two. >>> now puerto rico made all of it's bond payments due on july 1st according to a government spokesperson avoiding a possible default. the power authority made it's scheduled payment with the help of an advance from bond insurers. puerto rico's governor signed a $9.8 billion budget for fiscal 2015 and 2016 and lawmakers say public workers will still get paid. earlier, on wednesday, moody's cut bonds further into junk status. >> let's have a quick look at european markets very strong yesterday yesterday. they have softened throughout th