that's coming up next. >>> plus much more of simon hobbs on that new cries line ship. he's going to show us some of the fun stuff on board. looks like it's more scared than fun, but simon is a trooper. we're back in two. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] at bny mellon, our business is investments. now a waiting room is just a room. managing them, moving them, making them work. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon. >>> aig losing ground today. goldman sachs downgrading the insurer to neutral from buy, with the firm seeing limited up side for the stock. the stock is up more than 25% this year. it's down on today's trad

simon hobbs is on boor, recording on the embattled

simon hobbs is on boor, recording on the embattled industry, while showing us that the luxury that awaits the first passengers on this levi athan of the seas. >>> plus a story the whole country is talking about. >> i've been missing for ten years, and i'm out here, i'm free now. >> i came home and i was in my living room eating my big mac, and we hear this girl going nuts on the door. a shocking, stunning, disturbing story. three young women kidnapped separately in cleveland, finally freed at a dramatic rescue and 911 call. we will have details coming up.

>>> simon hobbs on the caribbean cruise ship "fire" 2000, right? 2,000 vacationers?flames began to burn, many are being flown back to baltimore as we speak. how much more can this industry take before fewer people simply sail? that's next on "power lunch." they considered all her assets, even those held elsewhere, giving her the confidence to pursue all her goals. when you want a financial advisor who sees the whole picture, turn to us. wells fargo advisors. both tylenol and bayer back & body are proven to be effective pain relievers tylenol works by blocking pain signals to your brain bayer back & body's dual action formula includes aspirin, which blocks pain at the site. try the power of bayer back & body. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can

. >> reporter: for "nightly business report" i'm simon hobbs. >> now the president of rosewood hotels and resorts is here to talk to us more about hotels. welcome. good to have you with us. you heard simon's report there. how are your bookings running for this summer compared with last year and how do your prices compare with a year ago? >> yeah. as simon pointed out our booking pace is 12% higher than last year. what it allows us to do because bookings are coming in advance, you know, recently up through the recession period the booking pattern was so much delayed whereas today it's picked up. so, therefore, it allows us to actually look at the average room rate and tweak the average room rate and get the best out of the daily rate and occupancies. >> how much can you tweak those rates because consumers are still very price conscious and listening to that report there can be sticker shock. >> think what we tried to do is rather than raise the prices it's basically meeting the demands and, of course, the demands are higher and, therefore, you know the turn away of our bookings is high

simon hobbs is going to tackle travel.wednesday, jackie deangelis is talking summer entertainment which apparently involves a roller coaster. on thursday, julia boorstin is is looking at the summer's hottest movies. and phil lebeau is going to round out the week with planes, trains and automobiles. how come we don't get these things? >> we get the barbecues. we get to grill on fridays sfwl i'll be at the tilted kilt. >>> up next, jc penney's biggest bull. he's going to make his case next. he might decide not to come on the show after that comment. [ male announcer ] we gave the new e-class some of the most advanced driver systems ever made. stereoscopic vision... distronic plus braking... lane keeping and steering assist... eleven enhanced systems in all. ♪ twelve, counting your adrenaline system. the 2014 e-class. the most intelligent, exhilarating mercedes-benz ever made. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. through mercedes-benz (announcer) scottrade k

simon hobbs is here with the details. >> a lot of europe isn't trading today.ons, central europe, switzerland actually didn't trade. in broad terms, hanging in to where we were after four weeks of consecutive gains. it's interesting the cyclicals have come back or the automotives have come back. deutsche bank, the likes of persia and volkswagen and porsche are doing well, as you can see. the irish give reequivalent to southwest came through with earnings. pur pushed the stock up to high. check out dhrks is ryan air over the last five years against southwest. almost parabolic towards the end of that. it's done much better than the originator, as you like. the other group that has moved today in europe are the mining stocks, the precious metals stocks. you've seen what's happened to gold and silver and all the rest of us. some not as far down as it were. it's going to be a busy week in europe this week. not just with the data. ben bernanke speaking here wednesday after the two-day meeting. then mario draghi will speak. it was ten months ago that in london he firs

simon hobbs is here, but he has been traveling and having a wonderful time as well.come back wit, sim. >> this summer, carnival is issuing its second profit warning in two months, because it's slashing prices to fill its ships. rivals royal caribbean and the freshly ipo'd norwegian have had better stock prices recently because they have firmer pricing. some analysts who were recommending carnival as a value play down here at the bottom are throwing in the towel. >> it seems like the perception problems here, that carnival has faced are continuing and it's going to take more time for this turnaround than we'd originally thought. >> now, in the hotel industry, data from bench marks str ventures that seven out of ten hotel rooms will be sold each summer night this year. that's almost back to the records that we set in 2007. again, the question is whether with that demand, hotel owners can raise prices. the ceo of sunstone is telling the likes of merritt and hilton and hyatt, who run his 26 big hotels to get more price ambitious. >> we're about 7% off of prior peak for h

simon hobbs has more. just how has royal caribbean handles the situation? damage control?e thing is for sure. it's clear that royal caribbean has not only taken lessons, but wants to be seen to have taken lessons from the bad response to carnival's almost unending stream of marine incidents. the second major fire at sea for the industry broke out yesterday on boor the "grandeur of the seas" passengers were ordered to grab their life jackets and report to master stations. passengers remained at that emergency posts for another two hours, in other words until dawn. you can see there's substantial damage to several decks at the rear of the ship. royal caribbean says all the passengers are accounted for, and in a moment we'll have the first video to the point that you were making, importantly in contrast to the no show we got from carnival's execs on the "triumph" fire earerhir and the photo of him ca tea meet the ships and they have them tphy imat social media and put on their website. the other thing lucky in this i because the shipts power. it could get into port, and quite

simon hobbs with more on that. >> it really points to the assets particularly here.ther into a territory we have not seen since the summer of 2008. so basically five-year highs because of what the central bank is doing. because the stocks are cheap. but the economic situation is very poor. today the governor of the bank of england, the outgoing governor of the bank of england was able to say that he saw recovery in sight as unemployment rose again in britain. but the figures are written large for what happened in the first quarter of the year. just see the difference between what we had here in the united states and the rest of europe. these are annualized rates. europe reports its data in a different way than the united states. and you can see as jpmorgan puts it the euro zone is still in a prolonged recession and the weakness spread to the courts. so france contracted as an annualized rate of 0.7% in the first quarter. now you can say the very cold winter had a lot to do with that. but most people would point to what is still very large and controversial. back to y

simon hobbs, we'll see you -- >> you reminded me.oks like the dow is in positive territory. we started the day lower. then we moved higher as well as the consumer sentiment. really a broad market lift over the last couple of minutes going into the european close here. if you can take a look at the dollar index, you see a strong move to the upside after we got the better than expected data. on the flip side, if you look at the bond etfs pushing them to near 52-week lows, you can see a number of them. we're going to watch them carefully as we move them as well. cyclicals are strong again today and also for the month. this is the last month -- the last day of the day so we're looking at comparisons there. some are the consumer names. this is because of the yields and the ten-year is moving higher today. the financial is seeing financials in the big banks. the goldman sachs and bank of america is moving higher. let's talk about the month and year to date. the strongest start to the year since 1995. as we look at the dow as we end here, 4

i'm carl quintanilla with simon hobbs and david faber.er the s&p did break a streak of five record-setting days on thursday. europe and japan, as you heard becky saying, big stories today as dollar yen breaks through the hundred mark for the first time in four years. our road map begins with the treasury secretary jack lew in a cnbc exclusive saying we're not going to hit the ceiling until labor day. >> countdown to bernanke. the the fed chairman ben bernanke will be speak live on the economy. >> activist investor carl icahn launching a takeover offer for dell and he'll be on "fast money" today. we're going to travel through the numbers. but anxiety over the debt limit in a cnbc exclusive this morning. steve liesman conducted that interview and is live from london with more. steve, good morning. >> good morning, carl. secretary lew telling me that we would hit the statutory debt limbity in days, but don't panic, because what really matters is the effective debt limit which is when the treasury actually can no longer borrow and secretary l

it's simon hobbs.king about the cyber threat as being a national threat, but actually it is fought by individual companies and individual attacks that have to individually have to protect themselves. do you think we have the right struck are in fighting off what is happening at the moment because it doesn't appear that we're leveraging economies of scale to fight what is a national attack. >> couldn't agree more with your comment. it's individuals, businesses and its countries that are vulnerable here and i think that's why we were pleased that symantec with the president's executive order and we're hoping legislation can go through so we can do exactly what you're saying and whether it's information sharing. the bad guys are getting more sophisticated and the threaten viernment is exploding and we all need to work together and do a better job for the constituencies, people, companies and guidance. >> can i push you further on the strength of the tech lob ney a moment and in a desire to encourage silic

. >>> simon hobbs with a look at what's coming up next hour. >> you may have had fun so far, scott, buting to be even more fun. we'll have our third major data point on the housing market. we'll look at where this market is going to trade now, what will happen to the difficult den stocks and the cyclicals. and also the power of the $50 membership at costco. we'll be looking at that company in particular. that's the next hour of "squawk on the street." i'll have more awkward conversations than i'm equipped for, because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. ready to plan for your future? we'll help you get there. everybody has different ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large profess

great simon hobbs taking my spot. changing the world is exhausting business.ting and the transforming and the revolutionizing. it's enough to make you forget that you're flying five hundred miles an hour on a chair that just became a bed. you see, we're doing some changing of our own. ah, we can talk about it later. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving. just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before. >>> welcome back to "squawk on the street." breaking news. may philly fed coming in at minus 5.2. big miss there as well. we were expected an up-2 number. when was the la

simon hobbs, back to you. >> good morning to you, rick.le wanted to hear today. the manufacturing is still expanding in the united states and we're cutting our losses, as you can see. there was concern that the world was slowing down after we got data from china overnight. certainly, rick mentions the commodities and we were down over 3% on oil and over 3% on copper. we are off those lows as you can see, but still, there is a huge concern, carl, about the growth outlook moving forward and not least with the move with the bond markets. >> commodities responding more to the adp than to the ism and we'll see if that changes throughout the day. let's bring in cnbc senior economics correspondent steve liesman talking about some of those numbers. steve, let's do ism and walk us back to what adp said this morning. >> yeah. i'm just looking at these ism numbers, and i didn't like what i saw in terms of the employment number, the components there. let me give you the details, it is down 52 from 54, and it's weaker than it had been. new orders were

simon hobbs said a wonderful thing this morning.ident is going to celebrate the better than expected good data because many in his base are not necessarily involved in the positives. so this is probably why the president doesn't go out and say wow, this is a great stock market, there's a lot of issues going on here. yesterday we had technical problems. we had the founder of nanex. i want to play a piece we did when we had some technical difficulties. >> we needy versety of precipitation. when all you have are machines that are lightning fast, you have to allow other participants to have an opportunity to buy the market when it's down 10%. a lot of people didn't have enough information to be involved. >> very significant interview. i urge all viewers and listeners to go to cnbc.com and watch. his conclusions are significantly different than the sec conclusions. we need to pay a lot of attention to the inner workings of the coequity markings. >> thank you for the shoutout. coming up, charlie munger. it's a big buffett weekend here on

. >> we have simon hobbs with a look at what's coming up in the next hour. >> we have the interview of netflix on cnbc. we'll talk about this move and today we're led lower by the defenses, horizon, johnson & johnson, at&t. how safe are defenses in your portfolio if the bond market is beginning to turn. also we'll take a deep dive into hour two. that's hour two of "squawk on the street." [ male announcer ] we gave the new e-class some of the most advanced driver systems ever made. stereoscopic vision... distronic plus braking... lane keeping and steering assist... eleven enhanced systems in all. ♪ twelve, counting your adrenaline system. the 2014 e-class. the most intelligent, exhilarating mercedes-benz ever made. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official

simon hobb, i want to ask you about the note you put out on jamie dimon as to whether j.p.rs. >> well, my issue is not the chairman and ceo split. my issue is having board accountability and management accountability for transparency and oversight and holding their management's feet to the fire. so can lee raymond go toe to toe with jamie doimon? i'm going down to tampa next tuesday to hopefully find out. >> mike, we want to thank you. >> if jamie dimon was to leave, then the stock could fall 10% perhaps with a huge market loss. >> yeah. i put out a note yesterday saying that j.p. morgan market value could decline by $20 billion, if not only jamie dimon was stripped of the chairman position, but if he also left as ceo. is this bluffing? partially, but it goes to the point if you strip to the chairman position, maybe he doesn't stay as long. >> meek, we want to thank you very much for joining us today. >> we've been speaking with mike mayo and an analyst at clsa. here at the morgan stanley analyst meeting i want to keep you with one last thought. he was talking about the fin

let's get to simon hobbs. to remain in negative territory, despite the rebound in the united states. in many senses it's a perfect storm for a classic day. you have the ben bernanke fallout. you have manufacturing in china and the data is also bad. so the mining stocks have continued to fall through the session. that's why there's been no rebound. the automotive sector is in negative territory. clearly chi ma is a major focus for them as well. simply creating the trade of the day, which is to show automotives. banks are also down around europe, which is very interesting. and they sold off in the equity markets and the bond marks to a great extent. a lot is being made of the fact that yields are higher in spain and italy. the bond market has turned. people are booking profits after the huge gains that were made there. but let's get perspective. still german bonds. if you look at the spread between spain and german bonds, it's still down from where you were if you have to move today. i mention the data in europe