all right starwood you know well starwood does a lot of business in hot zones like at the military some for weapons and swap out for that ah you know they will you know tell us a gun you get towels you get you know access to the weight room and a collision a cough right i mean you serious whole thing russia right well ok forty seven is right but i mean obviously you have the situation where. the situation with the claims is crucial to seen things move forward between the two countries in terms of congress seriously considering the idea of lifting sanctions against cuba because that's the real logic behind the embargo to begin with the fact that cuba nationalized all american assets there so once you take that logic away say ok we settled the claims this isn't that why do we still have this environment place you know so you have groups right now such as engage cuba gauge cuba right now is a lobby base here in washington and they're getting a lot of corporate support right now to help push for further trade hurting gauge meant which it would because nowadays when people hear cuba to see m

then we looked at the filings of this company, colony starwood homes, we found they spent on averaget $800 a year per home on maintenance. so this family moves in last august. they live without heat. they have a roof that leaks. they keep calling and calling a one 800 number for the trade name this copy operates under. then one day she is lying in bed with her newborn baby and the ceiling, which has been leaking, the ceiling fan just falls on their bed. the other important thing about this family and listening to alec talk about the fees charged by christian's family, fees became a very important revenue source for this family as well. their sec filings show they had $26 million in fees and tenant clawbacks last year. when you look into wyatt is or that they were able -- that they filed 70 election notices against tenants or spoke to tenants who got eviction notices and six straight months, they end up in the cycle of eviction notices and late feels. they were late on their rent the very first month they moved in and suddenly they have a $95 late fee. there asked to pay the landlord'

strategic hotels and resorts and made a bid for starwood hotels, $14 billion, putting them in a bidding marriott hotels, then pulled out mysteriously of that. andre waiting for anbang the authorities to speak as fore may be implications its partnerships internationally, and that is what we will be focusing on in the weeks ahead. rishaad: thank you very much. taking bullish bets on china's equities market as they await the msci decision on whether a-shares will be added to benchmark indices. tell me a little bit about what is going on. we have been here before, haven't we? >> three times before. to moretioning now has narrow because msci has narrowed the number of stocks it can be added to its indices. on tuesday, june 20, we will a decision wednesday early hours hong kong time. kong -- isted in hong rishaad: let's bring it up. .tf's, all etf's >> kong andsted in hong focusing on large cap's, 169 companies, all large cap's come a-shares. on the right-hand side, it is mainly the difference between bullish and bearish options as negative. that is quite rare. rishaad: what does that tell us

forestar has an offer to be bought by starwood capital. d.r.n's plan involves keeping forestar as a publicly trading company. and pandora shares are higher in the premarket. "new york post" reports that verizon is considering a $100 million investment in the streaming music service. stemming from its interest in pandora's user data. and gap was upgraded to outperform from market perform at oppenheimer which says current strength in earnings and profit margins for the apparel retailer is not reflected yet in the stock price. chris suisse upgrading ebay to outperform from neutral saying platform changes and product innovation gives ebay several paths to earning -- >> the concept by the way, season five begins tomorrow right here on cnbc at 10:00 p.m. eastern. >> okay. good billboard. >> our guest host this morning is walter isaacson, president and ceo of the aspen institute and a cnbc contributor. good to see you. we've got to talk you to a little bit throughout this hour but haven't really gotten to talk to you about what you think is going on i

it also bid for starwood hotels, and it has a connection with the kushner family it was looking intonvesting into 666 5th avenue, a troubled property owned by the kushners it didn't happen at the same time it was there. that connection. in china, the chairman is probably best known for become the husband of the granddaughter of the chinese leader. so he is known here as a very politically well-connected person which is why this news sent shockwaves throughout the insurance industry a lot of people were worried about what they were seeing. the chinese government has been pushing the idea of trying to professionalize the insurance industry and trying to clean it up and what they see is that anbang as well as other insurers have been selling insurance but the insurance looks a lot like wealth management products alternative investments that yield a high return for investors. so they're not policies that provide protection for health and life anbang has been heavily using these types of products. analysts tell me that's probably the reason why anbang has been able to come from nowhere an

starwood manages one property, four points, they can continue.rth weej and, they can continue. the airlines, they can continue. the question is in the details in terms of how the trump administration defines an entity that's controlled by the cuban military. the cuban government during the final two years of the obama administration basically said if it will bring us money, we'll welcome it. if it costs us money or costs us control, then we're going to take it under advisement. there's an irony here and tragedy at the same time and that is president trump went to miami today, and the only two reasons he just didn't go there to play golf was the weather, and his cuba speech. had the obama administration and cuban government during the last two years focused on an election outcome last november that didn't include president-elect hillary clinton, then much of all of this, trump administration wouldn't have been able to do anything because u.s. businesses would have had such a landscape, such roots in cuba. but neither the cuban government nor the o

so if they reverse these obama-era rules, well then, starwood and other organizations that are lookingve in, they can't either. this creates a level playing field where trump -- because trump can't go there right now. >> yeah. and you always go back to who does this help? who ultimately does this help? and i'm not sure -- >> a very small group of people who are very hard core on this issue. >> yeah. and again, he's playing to the airplane hangar crowd constantly. it informs everything he does. somehow he has been convinced by the ideologues around him, bannon and miller, even though he's down to 35 or 36%, if he can hold on to them, that somehow down the road, he can -- >> hold on a second. we have to leave but michael, you have known president trump for decades. when you mention steve bannon, joe scarborough does all the time and i watch joe every day, if steve bannon wasn't there would things clean up, is this steve bannon or signature president trump? why are we blaming steve bannon? >> he's got to wear it. this is not bannon's fault or -- and it's not miller's fault. okay. they mak

spg, starwood preferred guests. marriott rewards.s benefit greatly from these loyalty programs because they get lead generation and help close sales by offering points. and makes a lot of sense from a business perspective that they would combine. this has been speculated for some time. reuters reported some weeks ago that they were already in talks. but how do you structure if you have exposure without decaying the debt? it is an underappreciated structure, referred to as a calendar call spread. we are selling the calendar call spread. a 30ly expiration, we buy strike call. in december, we sell a 35 strike call. to minimize exposure in the near term in terms of loss up to the july expiration. meantime, we have exposure in a nonlinear outcome in case a deal comes at it could be about $35. it is a nice way to structure a potential transaction here. julie: we will see what happens. thank you for joining us. scarlet: still ahead, india's prime minister set to arrive at the white house in just a few moments. live coverage of that later. ♪

in cash all other terms and conditions under the starwood merger agreement remain unchanged >>> a u.sv to pay clieng clieng $235 mi-- glaxosmithkline $235 million >>> white house tech week continues with another meeting with industry leaders. the president is expected to make remarks on emerging technology as well as new demonstrations of drones and universal broadband. eamon javers joins us now from the white house. good morning >> reporter: yeah, good morning. we're expecting some kind of drone demonstration here at the south lawn of the white house later today. we're outside of the southwest gate where we're waiting for some of the arrivals of some of those ceos who are expected here we don't cho what will happen with this drone demonstration. they haven't given us any details. let me tell you what's officially on the agenda here including drones at the top of the conversation, they are also going to be talking about tropical depressions, the technology, the safety surrounding the drone industry which they say is growing. they will talk about digital wireless and future of connecte

at the same time as making that bid for starwood hotels.m into a price war with marriott. they eventually pulled out of that. there is increased focus on some of these insurance backed conglomerates now and as this risk-taking is of increased concern, we have yet to hear is goingo what exactly on and we only have this statement to go on. we are going to have to see what impact it may have on international partners. >> thank you. beijing, morem from our interview with the apple boss tim cook. fiercestny faces its local competition anywhere in the world. cook says there are huge opportunities in china is an incredible market when it comes to talent and ideas. >> china for us, we make our decisions for long-term. we are not investing for next quarter or next year. we're thinking about many years out. ic megatrendshina there that make china a incredible market. i don't just mean a mel -- a market to sell in. i made a market for application developers. a million and a half application developers in china now. probably closer to 2 million. it is

then made a $12 billion bid for starwood hotels trumped by marriott, and the day that that bid was announced called on bang nobody answered the phone. i called on bang in china, no one answered -- >> what time was it? >> i was hosting 'squawk box" 7:00 p.m. something like that nobody answered the phone. their headquarters is above an auto body shop in some suburban office park. the guy is married to the granddaughter of the former premier. nobody questioned how they were making a $12 billion bid for anybody. >> you know what this reminds me of i used to work in tokyo. the first book i wrote was about the rise and fall of japan you had exactly the same kind of pattern where you had people coming out of nowhere suddenly creating vast global real estate empires going around grabbing up u.s. hotels. the four seasons in manhattan used to be owned by -- >> just to connect the dots. you're making the comparison here in terms of the rise and fall of japan and what's going on in china. >> i think that's absolutely the comparison the key point is this that china is growing very rapidly on the back of

we saw what happened with anbang , buying the waldorf a story, then a bid for starwood.e film holdings down as well. the point is you do this, but how much confidence is eroded in these companies, and how much confidence is eroded in the broader market? it was interesting the timing of this because it happened after the msci inclusion. >> i used to work at bank of america, and they did a stress test after the crisis and found out that bank of america failed it. what happened was that initially there was a stock market reaction, but however it created the situation in which risk management procedures were put in place that allow the bank to recover and make a good comeback. this is what we are looking at. this is the right thing to do. you sometimes have to look at this hard, and you want to avoid what japan did in the 1980's. rishaad: indeed, how closely do chinese authorities look at what 1980's, to japan in the going into the 1990's, never recovered sense. >> very close. bank of japan has a representative office in beijing, and one of the principal occupations of the r

the way that you and oz investigate -- invest relative to blackstone, where you once worked, or starwood, big real estate investors? steve: in a similar vein, we all raise commingled funds, we all , what across the spectrum i believe what makes us different is how we have a death -- integrated the real estate firm into everything that we do. erik: do you have more of an appetite for risk than they do? steve: we don't think it is risk. we think by casting a wider net, so we have invested in over 100 transactions, 19 different real estate related asset classes, the four major food groups, hotels, cell towers, gaming, senior housing, ski resorts, convenience and gas stations. we think by having a larger atal at the top -- funnel the top, but keeping that's big it tight at the bottom -- that spigot tight at the bottom, we can find the best balance. erik: given your outlook, how comfortable are you committing capital today and do you still think, as you look out, you will be up to generate the sort of mid-20% turns you are looking for -- returns you were looking for? steve: it is a market to

most famous for buying the waldorf astoria for $2 billion it bid for starwood hotels, and it has beened with kushner because it's interesting in a property in manhattan the company and the chairman specifically is probably most famous for something over here, which is that he is married to the granddaughter of the chinese leader ping. because he is so politically connected it sent a shiver of fear throughout the entire insurance industry when people heard this news. one insider had told me that the government is making strides and efforts to try to clean up the industry and what they're seeing is that anbang in particular has been heavily involved in technically offering insurance, but that the insurance looks like alternate investments that yield high returns to investors but not protection because of that we don't know whether or not anbang's chairma has anything to do with this, but the government is frowning on this practice >> okay. eunice yoon, thank you. >>> coming up, smart speakers. door locks, other devices all making homes more connected than ever hackers are taking notice.