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tv   Squawk Box  CNBC  June 8, 2015 6:00am-9:01am EDT

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♪ >> announcer: live from new york where business never sleeps, this is "squawk box." good morning, everybody. and welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernin and andrew ross sorkin. a huge weekend in the world of sports. at the top of the list american pharoah winning the triple crown. it's the first horse to take home that coveted title in nearly four decades. 90,000 people were on hand to witness history. many millions more watching on television in home. a lot of us wishing we could be there. more of the big money between the 3-year-old's accomplishments out there the morning. >> first, to business of the morning. u.s. equity futures. take a look now, you'll see at this point it looks like things are actually flat. we did have that jobs report on credit that came in better than expected. the market wasn't sure thousand react initially to that. you can see with that across the board, we will have more on
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the markets in just a moment. plus, we'll be joined by the newsmaker of the hour steve forbes is here. andrew has more of the morning's top stories. one of the big stories that we're watching as joe mentioned at the top of the show deutsche bank is announcing resignations. the management team of anshu jain and jurgen fitschen coming under fire. they're replaced by john cryan. we'll get more from you're colleagues in frankfurt, that's a big one. 39% of the shareholds voted to get them out. syngenta reporting a second takeover of monsanto. the swiss company saying it made no attempts to discuss. jed, monsanto reportedly pay to
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syngenta if they can't get a deal. the u.s. economy is going to expand at a lower rate than first expected. it puts a 2.4% on gdp growth. that's down for the forecast for the national association for business economics announcing that the soft patch could force the fed to raising rates. what do you think? in noble news today, japan's economy much faster than expected in the first quarter. gdp to a 2.9%. it had been 2.4%. in china, imports and exports shrinking again. economists say it's likely to add will add pressure on policymaking in beijing with a slump in that economy. and in turkey this weekend, national elections and erdogan's
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party lost its parliamentary majority after 13 years in power, after not switching to a presidential system. it was a system that unexpected setback. stocks are falling off this morning. and liter and the lira dropping to a record low against the dollar. it's not like we have to think about two currencies anymore. lira don't forget the lottery, do you know what it's doing again? >> i don't. >> i don't either. i think there are some crown us around. . >> at least for the good. >> it might help. you notice it like every couple of years. >> the dow 3 for anybody who is not familiar with it says when industrial is at new high it needs to be confirmed by the transfers. >> industrials are like 0.2%.
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>> but new highs. >> in may. and they don't hit any this year. >> right. >> the thing is there's new analysis that says the transport actually reached a crazy high about a year ago because of the airlines. and the airlines are so out of whack with the rest of the world because of what it used to be compared to what it is now. >> the dow can't go any higher. it's already worth $800 billion. >> so is dow 3 making sense? >> i don't know? >> makes as much sense as anything. let's tell you about what's on today's aquasidewalk planner. apple is holding its conference in san francisco. this is where they give sneak plans for companies that make apple devices. among things to watch, apple's plans to streaming and any enhancements to apple pay. and mcdonald's is going to
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be releasing its sales. this will be the last time that the company will be giving us that. from here on out, it will be in the quarterly basis. >> we'll get a miss -- >> we're going to miss seeing europe all strong. especially in france even though they look down at our friends in america. they can't get enough of american food. and even like french fries, as you know. >> this is right. >> because they messed up by going to the metric system. >> but that's a quarter pounder. a quarter pounder was the layer on that big mac. >> the quarter pounder, right. also talking about a little news out of washington the supreme court will be announcing decisions at 10:00 eastern time.
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there are 22 cases pending including a critical one on obamacare. >> really. interesting. let's check on the markets as they're kind of flattish, after what was, you know kind of -- i thought it was totally annoying after a great jobs number. once again, we see that we can't bank on anything in terms of good news being good news at this point. people still micro analyzing a quarter point. a quarter point off zero. and really just have -- every trader's life pass before his eyes on friday because of the prospect of a possible quarter point interest point on money. and you wonder why people look at wall street and shake heir heads sometimes. here's what's happening in europe. wow, lending much have plunged last week, late in the week. >> thursday or friday. >> and there's no one that doesn't think that some sort of can is going to somehow be
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advanced in the world by them and no one has anything on either side. the latest idea it's a great idea for what is a perpetual gdp bond. it doesn't pay any interest because i's a zero coupon. >> but if you're lucky, you get your money back? >> no, because it's perpetual. the 20-year like merrill lynch, you buy for $200 $300. and it matures at $1,000 right? but there's no interest paid each year. although you do have to amortize and pay taxes on it. if rates would come down you could buy some for 200 and have 400, and have a beautiful thing for that. but in this case, we're talk
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about securezero coupon, no interest. and the perpetual date. i've got some of those i want to sell you. >> i'm not interested. >> well, the germans are going to have to buy that. anyway, what else? as we look at what we did -- did we look at europe quickly? no. 2% in shanghai. interesting things going on with imports. energy 58.78 we'll see where the boon is headed to 70 or over 50. was that friday he was on? >> thursday. >> 80 what? >> 87. just turned to 87 last month. >> i saw schaapman on -- was it twitteree he's embarking on a cross country three-wheel motorcycle ride. and i looked at him, and he's
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got prepared. but he looks unbelievable. >> you know he's coming on next monday. >> guess how old he is? take a guess. he looks about 75 84. 84 life does not end at 84. i know. i know you think you're going to live forever, i know. that "the new york times" is still going to be publishing 20 years from now. >> he's funny, too. he tweets a lot. >> you know i read an article that i liked in your paper. >> yeah? >> yeah the navy s.e.a.l.s. they wanted to say they're killing civilians and out of control, but they couldn't because these guys are so awesome. but they couldn't. >> maybe something classy would definitely enjoy watching you, too. >> no, no. that's a bad idea. they can stick with some of
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those other channels. back to one of the biggest corporate stories of the morning. big changes in deutsche bank. and jill wescott joins us from frankfurt. good morning. >> reporter: we had had that big surprise yesterday in germany and europe both feel that they're stepping down and anshu jain is going to leave the company as early as end of june. jurgen fitschen will stay around until may of next year in order to facilitate the hanover to the new ceo who is john cryan. john cryan used to be the cfo of ubs. and he has a lot of experience in restructuring a company, 0 are a bank i should say. and that was actually showing in the market. he actually had a direct very positive reaction to the markets, that the shares were up by as much as 8% here in early
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trading today. so what needs to be done? well, we had a series of disappointing news coming out from the bank. the new strategy was actually not convincing anybody here. analysts with new investors, they were missing the proper targets not only once they were missing the cost targets not only once. so what needs to be done is a credible strategy. analysts are saying this new guy is actually very credible. he'll have the track record and the promising of overdelivering. i love that phrase. so you see, a lot of hoops are now been through that one personality. the next steps are clear. in july the bank has promised to give us more detail about the strategy because we don't know anything really when it comes to details. that will be the first time for him to actually appear most likely. back to you.
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>> thank you annette for that. if you saw the analyst over the weekend, he said we think that deutsche bank has transitioned from one of the least credible investment banks to one of the most highly regarded client list. we have had shouldn'tanshu jain on the program. we probably didn't give him hard enough time. joe, when was he on two months ago? >> i don't remember. >> you don't want to remember it anymore? >> i don't know -- i saw the deutsche bank story. i don't know. i don't know. >> this is probably the biggest on wall street -- >> not on wall street that's a foreign company that's here. huge leverage. for them to make the same kind of money that goldman does, basically every other bank outside of the u.s. has scaled back. the question is whether they're a player here two or three years
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from now or whether john cryan reverses that. >> what i don't understand is why so long of a lead time before -- >> may until the other guy -- what's his name? >> juergen fitschen. >> the guy is on trial for something. he's testifying -- >> he's been accused lying, perjury in a completely unrelated publishing lawsuit. again, why -- if this guy is supposed to be a savior and supposed to be the one that leads them and a great management team why the long -- >> that i don't know. i don't think it's that long. you think it's a full year? >> end of may. end of may. >> i thought it was this year. >> i do not know. end of may the other guy goes. meantime a news alert,
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sears holding with a smaller than expected loss. it continues to make progress towards a formation. and of a reit. joining us now old friend steve forbes chairman and editor in chief of "forbes." it's been a while. in talking to you in makeup just a couple of guys getting makeup on. last week you initially, a couple four years ago, said that was your guy initially, you said he's a much better candidate this time around. >> well he learned from that disastrous debate thing. he had major back surgery in 2012. his challenge is 500 other republicans are running.
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i think i'm the only one not running. it's up to a lot of good stiff competition out there which is good for the gop. >> we'll see. i saw him moving -- i tweeted that out last week. retweeted it. first rand paul and ted cruz with the demographics that just makes him marginal candidates at this point. white men were not elect a president again ever. >> demographics change the composition of the country changed and so will the politics of it. the whole phenomenon on the regan democrat came about because reagan figured out to reach various constituencies that haven't been republican before. the key thing, young people -- >> they like rand paul. >> they like the idea leave me alone. don't tell me what to do. don't take my soda away if i
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happen to want it. don't take my e-mails and things like that. the gop, i think that kind of conservatism. >> it says here, explaining the new headwinds in housing. while it's 63%. trying to get 70%. homeowners demographics. the urban institute predicts 3 in 4 new households this decade and 7 in 8 will be formed by minorities. 3 out of 4 and 7 out 8. now, if you can't appeal broadly -- >> well my reaction is so what? the key thing is to have a message. in 2012 the presidential candidate mitt romney did not have that kind of message. in his acceptance speech at the convention. only at the end did he say, here's five things i'll do almost as a footnote. so with the competition, among at least 15 these are nonmarginal candidates but that's going to force them to do
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what it's forced them to do come out with the flat text. and have the appeal to voters who haven't traditionally voted for the party. that always happens in american politics. >> that is a very different game plan than the clinton campaign is facing. they look like they're following barack obama's campaign which is to make sure they're appealing to people who might not be likely to vote but definitely vote for democrats if they were out there. >> it's unbelievable. it's a combination of -- you combine immigration and voting laws together. what's frustrating is no one is talk about these issues. take your pick growth entitlement reform. hillary clinton is talking about i'm going to be a champion for $15 an hour. you know she's talking to and for voting rights. and voting rights almost looks like a war on women issue to me. i think most people if they actually have an inclination to
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vote, i think they're going to vote in this country. but they're looking for the 99.1%. they figured out there's a lot more voters in 99% -- >> even carville -- >> but she's saying what the democrats are doing is fighting the last war. and the american people the american people most of them want to get this country moving again. s there a huge populist strange out there. but people are dissatisfied. and the idea that you can go with issues that people don't feel gets this economying ingmoving, they will beat her. >> joe has made this point, the social issues of the republican party have made it very complicated in terms of reaching 99%. >> well, in terms of social issues. most people now accept gay marriage, even if you're a
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conservative. they want it they can have it. that does not mean the country is going liberal in other areas. you go online you'll find a huegill following of conservative -- >> you're saying voters agree on that, but do the candidates agree on that? >> chris christie is pro-life. he won in a very blue state, because his agenda was mostly about getting the economy moving again. nationally reagan was pro-life in 1980. yet, he won suburbs where republicans normally didn't win. why? because he had an agenda that people felt met the issues at the time. >> however are the agenda and the person public perception on some of these issues has -- >> -- has changed. >> -- and very rapidly. >> but people want the economy to grow. people want to be able to control their health care instead of somebody saying see me in three months, maybe.
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or travel 300 miles to see a specialist. the key thing is and this is what's good about this republican party, if you go before an audience you think am i getting my message across. >> do you think there's too many people competing? >> no the more the merrier. this is very darwinian. it's going to bring up the best and cull the field. whose who's got it, who doesn't. >> who do you think in the early goings that? >> we'll see. because i like the ideas from the tax plans that these people are coming out with. the fact that jeb bush hasn't blown away the field as people thought he might three or four months ago. come up with something that is going to excite the base. nothing but competition to figure out how do i break through. >> are you laughing or are you taking it seriously? >> no he gave it a look last time. a serious look.
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and then decided newtot to do it. the reason why there's so many candidates, the fact that jeb bush didn't run away with the thing, people saw an opening and saying why not me? i've got a good record i've been a senator. >> do you think that hillary clinton is like a rope-a-dope, into thehouse white house? >> what people perceive may happen, of all people bernie sanders may beat her in the iowa caucuses. the iowa democrats are not very fond of secretary clinton. we saw that in 2008 and so when they vote -- >> and republicans either. >> well what it does it's going to wound and force her to do more than give a speech now and then. in terms of bernie sanders, she's going to have a debate. he will beat her in debates. she's not a fighter, out of
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shape. >> he's done debates. >> eight years ago is like 80 years ago. it's like a fighter. a year is a long time between fights. you've got to get in shape. she has not done that yet. i think when we have the first debates, bernie sanders is going to be seen as the winner. >> what experience does bernie sanders have in terms of recently doing debates and things like that? >> listen to him. he's got his agenda. he's winning audiences because he's firm. so the democratic race as dull as dishwater is going to perk up. with michael bloomberg, elizabeth warren whether a heavyweight can come in and seriously challenge her.
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>> running as a democrat? >> running as everything else. >> if he thought he could win, he could do it. but he's lived with that so long, i don't think he'd put himself out there, do you? what's he going to do he's not going to run for mayor of lond london. >> in the polls, if it ever flips, she would be in serious pain. >> one of the things you're seeing play out in american politics when there's huge dissatisfaction. the system brings up new ideas. that's why carver fail society miserably. they want to see the most unlikely candidate, round reagan in 1980. you're seeing the same process play out here. they want to move forward. i think it's very exciting. >> thank you. >> thank you. >> like our studio?
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>> love it. like becky more. >> okay. >> that's a good answer. >> >>, you too, joe. >> thank you. the big money behind the triple crown. we're going to talk all about it. first right now, as we head to a break, take a look at this date back in history. e financial noise financial noise financial noise financial noise
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a wire-to-wire victory, american pharoah became the first horse in 37 years to win the triple crown. of the senior vice president and contributor for nbc sports and msnbc. the first thing that you should do is change the spell oeg woulding of -- would egypt be mad? does anyone care if we make it o-a some of a-o. >> you can't change them once their registered. >> when we had the owners on i
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tried to crystallize my thinking why it could become something almost mystical. it has something to do with it's not a team it's not humans it's an animal. but out of thousands of horses over the past 37 years, that try to run fast there's something about the purity and beauty. i cried, and my kids were there. i mean i had -- you've heard the 90,000 people. there was no one that wanted someone else to win. >> it was amazing. i was lucky enough to be there. >> i'm glad i was at home watching. you heard the -- >> strangers were hugging and high fives. >> high fives. >> i saw a lot of people wiping tears away from their eyes. people that had been following the sport for their entire lives who never thought they would see this. or people my age who had read about affirmed in 1978. but you see it so it was an
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amazing moment. no doubt about it. >> the horse that doesn't make any money, that's not doing it for money. it knows it's ahead, i think. >> it's instinct. it's instinct. i think that horse has a really strong instinct to outrun other horses. you saw the way he ran that horse. he went straight to the lead. anytime there was another horse, materiality or frosted, tried to get to the lead said you're not passing me. and kicked it into another gear. it was a beautiful thing to watch. it was a beautiful animal. and it's not about the people. it's about the animal. >> what struck me i didn't realize that secretariat won by 30 length s. you saw american pharoah, you saw it winning by 5 1/2 lengths. >> there's a great photo at belmont, if you look of the jockey, of secretariat, looking
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back officer his shoulder and seeing all the other shoulders at the finish line they're specks. they're specks. >> i think they're headed to the blue farm. it's not just secretariat. did you actually watch, andrew? >> i watched the weekend. >> you missed them all. >> i was with henry, and we had -- we got stuck on the highway. anyway i want to know what the money part of this is. how much is in this now? >> money is amazing. the horse won $800,000 in total. which is nice. there's a bonus in the triple crown so that's nice. but the horse now is going to be making somewhere in the 30 50 arguably depending on how his offspring do in their races going forward, he could make $100 million as a stallion. that could. what. he's not done racing. >> could we see him possibly race in jersey in august.
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>> yes, jersey or saratoga. i think there's a good chance we'll see him somewhere in august. >> might outrun him. bad insurance on that. >> he likes to run. and he's just such -- how about tiger, 85. >> of all the things to talk about. so many things happen. do you have to say something negative about tiger? >> yeah we'll talk about the great playoffs. >> well he shot an 85. you know what was weird about it -- >> he shot on the par 4. he played alone on sunday. shot a 74. >> in like 2 1/2 hours by the way, he sped right through it. >> i didn't even talk with ron, for him winning another one in overtime, the lightning -- i like the lightning -- i like
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that -- >> lebron james, if he even wins another two games and gets to game seven i'll put that up there with the greatest performance in the nba. because he has no one around him. he came here to play with kyrie irving. kevin luck. and they're gone. he's out there with a couple of former nics. >> and he's putting on a performance -- >> the ratings went through the roof. the rating the highest on record. all weekend, people were stuck to their televisions. >> the biggest first game on saturday. >> french open. >> yes.
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>> how about that? that was pretty amazing. >> serena williams, also good ratings. and serena williams now at 20 grand slams. i don't think we talk enough we don't talk enough about serena williams. this is one of the greatest athletes in the last 100 years. only two now margaret court at 24 steffi graf at 22. and meanwhile, serena has the chance for the calendar grand slam. she's won't french open she's won wimbledon before she's won the u.s. open before. she could end up tied with steffi by the end of the year with a grand slam. >> you watch him afterward, i've never seen a bad thing with him, phil cossack so amazing. >> he's tough when he was younger, but he's turned into a really likable guy. he was trying to complete the career grand slam. and would have put a final
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punctuation mark on this tennis that we've been through. roger federer and rafael nadal both having a grand slam. djokovic had his chance. nadal is slowing down. >> nadal won 1 out of 10 of the opens. djokovic beat him. but he's old. >> a late bloomer. >> yes. >> you don't see that anymore. but wawrinka just with it. i wondered why djokovic kept taking it to the back hand. it's sort of the normal instinct that you want to hit it to your opponent. >> a 75-inch screen or high def, i don't ever remember watching the french open. watching andy murray. >> i wanted to make sure we got all the coverage. as a result, you saw hockey, the french open. >> sounds like you didn't leave
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your house this weekend? >> i don't have to go far. in and out, i'm checking on the phone. no but i played tennis too. >> it was an amazing weekend. >> thanks for coming in. coming up when we return roller coaster stocks we're not talking about volatility. stay tunes, "squawk box" returns in just a moment. innocence this cnbc program is sponsored by payden & regal.
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they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day. coming up it's a rite of summer. a trip to the amusement park. this year it could be a wild ride for thrill seekers and investors. we're going to talk about the biggest new coasters how big they can pay off in publicly traded companies. "squawk box" returns with the
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you are looking at two airplane fuel gauges. can you spot the difference? no? you can't see that? alright, let's take a look. the one on the right just used 1% less fuel than the one on the left. now, to an airline a 1% difference could save enough fuel to power hundreds of flights around the world. hey, look at that. pyramids. so you see, two things that are exactly the same have never been more different. ge software. get connected. get insights. get optimized. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?
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welcome back everybody. the theme parks are gearing up for a very busy season and go to great heights to keep people coming back for more. 17 roller coasters debuting. the most since 2008. they're taller they're faster they're scarier than anything you've seen today. investors with amusement park stocks. james hardigan is here. thanks for being here. what is the fury 325 at cedar? latest
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and greatest roller coaster from cedar fair at their amusement bark. it was a $30 million roller coaster. it's certainly going to give people a whole lot of enjoyment for the summertime. >> it's higher than the liberty. it's the first magnetic ride for a coaster whatever the heck that mean. these are roller coaster that i particularly don't want to ride on. i know our kids do want to ride on. is this payoff these are big investments for the theme parks. does this work? >> there's no rule of thumb, but traditionally, they do. one of the easiest ways to get people in your park is to have a big go-to new ride that you can build an advertising campaign around. i think you said it kids are really into big thrilling roller coasters. and they're going to bring their parents along with them. >> unfortunately for us. >> exactly.
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that's not the only way to get people in the parks. and obviously it's a very expensive way to get people in the parks. a lot of these other parks are going to have smaller, less expensive new attractions that they can use to draw people into their gates. but that's certainly one good way to do it. >> james, how much does a big coast like this cost? $30 million. that was just one of them. are we talking about half a dozen -- or more than half a dozen, a dozen? >> sure. that's likely going to be towards the high-end of how much a big roller coaster costs. we're certainly talking double digits in terms of millions of dollars. >> and do you amortize that had over how many years? >> well certainly, that's going to -- that's going to depend. i mean it's a capital expenditure for the purposes of the financials of these companies. and so you know they look at it as a long-term investment.
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but certainly that one year is going to get the biggest boost in terms of attendance and ultimately price increase and effect on this. >> you have outperform ratings at both six flags and cedar fair. why? >> those are really my two favorites. they're more of the regional amusement park plays, as opposed to the theme parks like a sea world. what i really like about these companies is "a," they're a really affordable form of entertainment. a day at the park is going to run maybe $40 to $45. eight hours of entertainment. you're looking at $5 to $6 per hour. you've got extremely affordable form of entertainment versus going to a movie, going to a sporting event. the other thing that you've got to love about these companies they essentially run regional monopolies. very few consumers in the united states are in a position to choose between more than one of these amusement parks in a given
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day. the parks are in the midwest. on the east coast. southeast. that's in stark contrast to more robust entertainment markets, like florida or southern california. that's where a company like sea word does a businessdisproportionate part of their business. >> james, thank you for your time this morning. coming up a man who defaulted on his student loans and says he's proving a point in the process. his weekend opinion piece. he'll join us next on set -- next.
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welcome back to "squawk box." an opinion piece in the "new york times" getting a lot of buzz over the weekend, it's titled "why i default on my student loans" and makes the case exactly that. we should say the social critic writes for the "time's" as well as the "wall street journal" and others, the author of five boovenlgs i read this peacefully over the weekend. half the time my blood was boiling. it is now the number three i think e-mailed story on that
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website. i want a quick quote. you had advocate for defaulting on your student loan and said if everyone acted as i did, chaos would result. the entire structure of american higher education would change. it sounds like that's what you want? >> well, you know i would like to see that. it's a fact that student loans are the only debt that cannot be discharged through bankruptcy or through except for the federal tax debt which you can settle. donald trump has declared bankruptcy time and time again. the owner of american haroa declared bankruptcy. >> you said things that aren't true. donald trump has not filed for bankruptcy. >> oh, yes, he has. >> his company, one of the companies he wasn't even a key owner of that had his name. he's never, so just don't say it's true, it hurts your case.
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>> yes, he has. >> personal bankruptcy? >> you are misinformed. >> for personal bankruptcy. >> whether it's a business whatever it is he filed for bankruptcy. when a 22-year-old is not allowed to do that. >> the question is there are a lot of people out there that have worked very hard going to school and have taken on jobs to pay it back. >> yes. >> you don't think it is completely unfair to all those people who actually pay their loan that you're just saying screw it? >> i'm not saying screw it. i did not say that to myself. i did not say i refused to pay my loans or took them out with the intention -- >> yes you did. >> i said i did not take a job or go into the earl or anything like that in order to pay off my loans. i decided i would become what i wanted to become. i went into default. i suffered because of that. but i do think that for me that was a better choice than having to go harnest myself in a job or three jobs to pay off a loan
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that i found pointless and overbearing. >> i did. that i did pay off my student loans after a number of years after i took them out. >> that's fine for you. that was your choice but i think -- >> you think it's fair to those who provide the loan to you that you have no intention of paying it back and are you effectively suggesting people who have taken these loans understanding their responsibility to the loan and then decide, you know what i'm not playing by the rules? >> well, again, i didn't say i decide not the play by the rules, i decided i would not take the kind of jobs enabling many tow pay $600 a month, which is what it was. as a result i went into default. as for other people my heart goes out to them. i think everybody needs to get by as they can. what i doily the is the education system in this country has to change. i think it's a shame that your chances should depend merely on birth that someone who comes from a wealthy family can go to school without taking on the burden of loans and someone who
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doesn't graduates with 30 40 $50,000 in debt. i think that's a shame. that's why people like bernie sanders are getting a lot of response. he wants a tax on certain financial transactions to make education more affordable. i'm all for that. >> i think education should be more affordable. i don't think that's in doubt. i think everyone heerpts it to be cheaper than it is and it has become outrageously expensive. >> that is true. the question how do you confront that and whether confronting it this way by not paying the loan i effectively thought the message at the end was everybody don't pay your loan because can you force the entire system to change because of it. was that not what you were trying to suggest? >> i don't think in an ideal situation it would be the worst thing in the world to have a national boycott like that. let me say, preface what i'm about to say by saying the might seem off the point. it's not. i have a daughter. i'm very sensitive to feminist issues. i feel very strongly about them. but it wouldn't be the worst
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thing in the world to have students walking around campuses carrying cash renlssters on their shoulders to protest the student debt. it wouldn't be the worst thing in the toward to have a massive student movement as students stay in berkly in the '60s. they have movements for free speech to protest being saddled with an unfair debt. >> let me ask you a second question bill gates talked about the idea that to get ahead in this country you really need to go to college. actually if you don't, are you truly in trouble. here's the quote, by 2025 two-thirsd of all jobs in the u.s. will require education beyond high school. if that's the case now we have two-thirsd of the country defaulting on their debt. what are we going to do? >> well i think the situation has to change. i think a lot of students can't finish school balls they are in debt. they can't stake i take out loans, especially poor and middle class students. i'm all for what mr. gates said. i think i read that article. he also talked about the problem of student debt.
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i hope he can find the way to address them. >> how is your daughter going to pay for student loans? >> i hope when she goes to school there will be someone in walk that will have made it more affordable to go to school and my son as well. >> here's the question if it isn't more affordable. would you tell her to take the loan and not pay it back or not go to school? >> i'd tell her to marry a nor weekian. or or norwegian. >> fascinating story. this morning's top stories, including apple's big developer's meeting. check out the futures this morning. they have been relatively flat all morning long. >> that is the case as well. stick around, "squawk box" will be right back. when a moment spontaneously turns romantic why pause to take a pill? and why stop what you're doing to find a bathroom?
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the jobs report providing clarity. our expert panel tells us june is too soon. july won't flight. it will be a september to remember. deutsche bank co-ceos announcing their departure. why the new ceo has a monumental challenge ahead of him. and a run for the ages. >> american fpharoh has won the triple crown. >> american pharoa has a blistering run in the beaumont stakes. now owners say the horse isn't done yet and neither are we. second hour of "squawk box" begins right now.
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♪ >> live from the beating heart of business, new york city this is "squawk box." >> welcome back to "squawk box" here on cnbc. first on business worldwide, i'm joe kerner. equity futures at this hour are down. nothing going on yet after what was an interesting session i guess on friday. >> that's why we do it joe. >> the market is like oh my god, it might be september when we have to pay a quarter% on our loans. i got to sell stocks off. >> which got a couple top stories, apple holding its world wide developer's conference. this is where the company often gafrs sneak peek on new plans. along the things to watch today apple's plans for music streaming to compete with spotify.
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this can be the new beat platform they talked about also enhancements to apple pay. syngenta rejecting monsanto. they made no attempts to address leg regular tore concerns if it can't get global regulatory approval. in turkey national elections, president urdu with n's party lost its majority after 13 years in power. stock there is are selling off and the lyra dropping to a record low. are you going to italy on your list? >> why italy? the turkish lira? >> then i'm talking about italy. just to get confused. things happen. >> there hasn't been an italian lira for six years? >> that's true. it's morning time. >> currency problems on the show.
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>> let's talk about the economy, economists rethinking their estimates for growth. steve leishman is here with more on that. >> i have no way to compare american pharoa. there is no comparison, swu one is a lumbering sluggering. what do you got? >> there are stockmarkets that aren't triple crown winners. >> why, what happens 87 years ago? >> let's get ken shaw on the case. >> don't you think we should clang thefell spelling of pharoa now? i would change it as a commemoration of defeat. >> muhammad. >> you want to be like -- >> so like i said i can't, i can tell you that morgan stanley, they've boosted their second quarter estimate of growth including the payroll from 1.5% to 2.7%. take a look at our graphic
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update different tracking estimates. we are now at 2.17. >> that 1.1 represents an upgrade to the atlanta instead. they are now 1.1. the top of the forecast still looking for a solid rebound. some of the commentary we got over the weekend. macro-advisers saying last year's data for may increased our confidence that gdp growth will firm in the second hear. whiteson said the uptick in employment in the retail and leisure sectors does at least suggest that core retail sales will continue. goldman sachs reporting the better growth and wage data have modestly increased in our liftoff. take a look at our dashboard in our cheap cnbc gravgs. which started off sort of the in the first quarter in the red there, which is a solid belief in the fed tightening in
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september. then what did we get. weak first quarter data and a second quarter and see that thing move over there? i can see it. then that eased off on the tightening. then we got even more lower inflation and lower corridor headlines. so that made september unclear. last week things changed. stronger data stronger construction. manufacturing data all of that leading towards, i think this jobs report pretty much puts us back in my cheap animation. strong jobs at 280 puts us back towards a september tightening being solid. i don't think if we put june on the table. maybe july if things go crazy. the 0.3% wage. >> the chief investment strategyist at us. michelle, would you agree with
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what steve laid out? >> absolutely. first of all, i was never worried as maybe others were about the rebound in the second quarter. i felt the underlying economy was fairly strong or solid. strong probably overstates it. i'm glad this makes everybody feel great about the second quarter. i think september is probably the most likely time. june is probably too soon july may be more in play. io eng the fed will feel an urgency to rush this first rate. >> here's what confuses me about the inflation numbers. it feels to me like we are less in charge inflation because of the strong dollar the preece of oil, a lot of things outside of our control. >> so how does that change the game for when we can expect to see inflation? >> even more fundamentally. you just have to wonder. we weren't seeing much inflation before we had the strong dollar
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and low oil. you wonder if structurally there aren't things technological developments robots whatever people want to talk about that have altered kind of the path for a certain level of growth. i think it feeds in. i think this fed is forward looking. even with inflation, unless inflation is moving noticeably and worsably lower with the unemployment rate in the economy has helped shol id. i don't want to overstate it. we have been growing 2-and-a-half for six yearsf seeing it 0 is not where we want to be. we are no longer in an emergency situation that requires the emergency rates we are sitting in now. >> why did the markets not like what they saw? shouldn't this be good news? finally, we are getting to the point where the economy can stand on its own two feet? >> i would not overinterpret friday's action. there is a lot going on.
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let's not forget about drama into the weekend. we had the spillover t. rate back up in the eurozone. so i wouldn't -- >> there was a knee-jerk re, a on that number? >> it should have gone up. not that it went down for other reasons. it could have gone up. >> we were all worried about the first quarter. was that real? this is really good news that we've snapped back. oh to be good news is good news. the idea that zero is not helping anymore. >> it hasn't helped in a while, right? >> anyway it can probably be negative. why not shop now in. >> if the reason for dock it you can't point to one now. if the benefits are gone why stay? >> what i think this is maybe a part of friday's reaction too, pulling forward. this will be september, right? to me especially at the imf report that came out. perhaps you wait until 2016. i think we have become a little
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too bad news is good news and somehow if the fed remains on the side line forever, that's good news. i completely disagreement i think we seen some healing in terms of structural damage done after the financial crisis. we have seeing more evidences the inflationary risks will evade. now we will focus on these are the environments we see when the economy gains traction. will you have job creation. there has to be a policy reaction. i think one of the things that steve talked about is the pace of it. i think it willing pragmatic, deliberate. i think we have to get careful just because we are going into september it doesn't mean. >> some say it's the defact o send end of the bernanke yelin put. >> they are not paying attention. >> w says very specifically. we are taking our queue from market pace of how we do things. i think there is an argument. >> temper tantrums?
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>> you followed this have corporate profit estimates changed along with the estimate for the economy? we were down negative in the first quarter down over negative 1% with doubts about the second quarter rebound. corporate profits were not, you know they were terrible for the first quarter, with no optimism for the rest of the year. now the economy has come back. i'm asking you, have corporate stipulates come back in what you hear in the guidance? >> they're not related t. economy as you have seen for the last six years, corporate profit don't need to be related when you got 0 interest rates. you can do all this different stuff. >> i'm throwing this out as a reason why the stockmarket is not. maybe have you an idea? >> i'd be careful about first quarter profits. they western that terrible. i'll tell you why, we came in
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with expectations of profits down 4-and-a-half percent. this was the best quarter of beats we had again. admittedly we lower expectations, you strip out the impact we have seen because of the energy effects, you a saw the underlying profits were 8 or 36r789s a lot of these things were transitory. whether it was the dollar or energy. i don't think it's such a bad story. i think profits in the second half will be a big thing. >> thursday is retail da that. we need to see, the conundrum. we had a strong third quarter. then they backed off despite strong job growth and lower oil prices. we will see what happens on thursday. >> mike, you are cutting your stock exposure to some of the retailers have anything to do with the retail number? >> no the fact that they've outperformed so substantially. we'd rather pick our bets in terms of the consumer discretionary. that will continue to benefit
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from employment growth gains and consumer balance sheets. >> with that great auto sales number you mentioned, the stage is set for a fairly healthy. >> with a rebound in gasoline prices. >> so you got strong expectations. expectations. >> maury harris walked across here. >> any other day john paulsen was walking by. >> i saw his body guard five steps behind him. >> rick perry. >> he walked out that way. walked back this way. >> last week too. >> she is ageless. >> of course. >> she looks perfect. >> michelle, mike thank you both for coming in. steve, thank you. the other big story, people on wall street talking about a deutsche bank over the weekend and announcing the resignations and the board naming res ran
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banker as the new ceo, becky asked the question why a year long? he will not officially take the helm. the co-ceo not the head of the whole thing for an entire year for a transitionary period. >> just to get him up tospeed? >> a lot of people think he is going to peel back the investment thing. >> not john crier. >> correct. >> did i say? >> no. john crion sounds like john crier almost. >> a different guy. nonetheless, the big thing will be what he does as everybody peels back. ups, totally swiss. >> i'm calling him for it. >> i don't think, they have branches over there. okay. still.
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>> they do in lira or deutsche marks? >> turkish lira. >> coming up. american pharoah, winning the triple crown saturday in style. robert frank is going to tell us what the owners have planned for the thoroughbred. next wilbur ross talking on set to talk about greece and the 2016 presidential field plus a former gm executive has a dim outlook for the future of tesla. bob lutz makes the case for selling your tesla shares. stick around for that. we'll be right back. back in a moment.
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first triple crown winner robert frank joins us now with more. thanks for bringing those guys to us on friday. it felt different all along i thought. those guys pence the senior ziat said this horse gliets indeed he did? >> what was interesting, he said he was so confident before that last race. when we had seen him before the derby and preakness, he said it's out of our hands at this point. before the belmonte he said, he's going to win. it's amazing. when you win the holy grail of
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horse racing they plan to continue racing him the rest of this year. he will enter the breeder's cup, one more race after that they say it's not about the money, it's about attracting more fans and sponsors to racing. with any sport, it's about a super star, a celebrity. he has that he keeps going. this is he doesn't see it as a risk and it's because it's not a financial risk. they have sold the breeding rights for about $10 million. it had a kicker if he won the triple crown that bumped it up to over $50 million. they expect him to stand for between 75 and $100,000 per stud. it could go higher if his offspring win on the track. the big money will come from pharoah's sire the dad. his fee shot up from 60,000 to
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$100,000 they also own the mare. pharoah has a unique combination, his dad bass bred for stamina, his mom for speed. you need that combination. experts say this is the magical combination that made the horse fast and last through the mile and a half. they own both horses which is very rare. >> those two horses can breed again? >> absolutely. can you guarantee people will pay a lot of money to have that combination again. >> what's the stake they get each baby horse? >> they just get the $100,000 if they have a successful foal. that's their fee. >> you said they get more if it starts winning? >> well for the additional stud. >> remember pioneer denial, american pharoah's dad just started breeding.
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if he has more offspring, that can go up. the record is storm cat a half a million per stud. so so pharoah and pioneer could go way up. >> they sold stud fees for american pharoah. i had herd $100 million will now be $100 million? >> people say it could go north of 50. i hadn't herd 100. generally, it depends on how these things do on the track later on. they can do three to 400 a year. so you know these numbers start, that's 30 million a year. it's 100 grand per pop. these numbers start adding up. it depends how these horses do on the track. they can breed five ten years. >> we know it's not a risk if he runs and gets injured. there was no contingency plans,
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nothing that said? >> i am sure something in the controversy it's the horse through the end of this year starting january 1st it's the new owner's horse. the $2 million prize is lying on the table. they might as well go for it. here it is. such an exciting race. >> a new horse come january? i would think you get an emotional attachment. >> they have visitation rights. that family loves that horse. >> that horse is so cuddly he's like a pet, a house dog. other horses are nasty, they bite. this horse is so confident about who he is, he is just sweet. like a labrador. he's so nice. >> my daughter loves horse, girls are horses when they're teenagers, this was big. she remembers smarty joan she is 15. we have been waiting for, did you cry? >> i did. i did. i didn't expect it. well, part of it is i want to point out.
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we have this documentary. we got so lucky at cnbc we started following this family weeks before the derby, not knowing they'd win the derby. then we followed them to the preakness, then to this race. so we have five weeks behind the scenes with the family and this horse as they go through this journey tonight at 10:00 on cnbc. we got so lucky. it's an amazing documentary. >> we have a guy, i can't remember the details, i think it was '98. he didn't win. i think he eventually took his own life. he was a friend of the show came on "squawk box," there goes back this whole triple crown thing. nbc had a great piece showing everything that's happened since the last. >> how many presidents were elected? in there presidents. >> seinfeld started, seinfeld and ended and "friends" i was in college. >> things were convinced this
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would never happen again. >> it's sort of mystical. people can worship horses sometimes. then they transcend the federal government. >> as they said, i said what's this going to mean for you? he said no one remembers the owners of a firm or secretariate. it's about the homplts it really is. >> coming up two convicted murders are on the loose. guys breaking out of prison. it's like shaw shank. breaking out of a maximum security prison in upstate new york. they could be anywhere. they're only 25 miles from the canadian border. hopefully we don't see these two guys walking by the set. we'll show you how they did it next.
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a manhunt on the way for two convicted killers who escaped from the maximum security clinton correctional facility and dan maura, new york. here is how it happened. they stuffed their bunk, to make it look like they were sleeping and they were escapeing from
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separate cells. each used power tools to cut through a steel wall to reach a catwalk, which i would have had problems with, it's six stories high. they then shimmied down a tunnel broke through a brick wall and cut an entrance and an exit in a two-foot wide pipe before breaking a steel lock on a manhole cover a block away from the prison hole and left behind a post-it note readle "have a nice day." hundreds of law enforcement officers are scouring the prison in the andirondacks, governor cuomo offered a reward and news to me power tools were used. >> that's why there are suspicions they had help. how can you possibly get your hands on power tools when you were in prison. >> i didn't know those were standard issue. >> not i think you can get anything you want. the most astonishing underground economy pence these prisons. >> they probably say it's the documentary.
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>> because the documentary. once you get in there, you realize you can get anything you want. you want drug you can get drug power tools? literally kfc, somebody will get you. >> it shows you hollywood in shaw shank, he could have gotten a power tool. >> it was a ridiculous gem cutting. >> that would take forever. >> none of them did the crime. you think that's a unique story to tell when you were in prison you didn't do it? >> maybe it's true. >> i don't know why he did it. robin, trust them. >> when we come back culture inzor wilbur ross is a part of a consortium that took a massive stake in one of the largest banks. wilbur will join us right here
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>> welcome back to "squawk box," front and center at this hour general electric sells its lending unit to the investment board t. transaction is worth essentially more than $10 billion in assets. it will come around 8:00 eastern. the last time they would give us a monthly read. by the way on that front, they've had so many bad results, i think they shouldn't be giving out results. analysts were upset about it. alleges shares of sears trading higher, the retailer planning to raise $2.6 billion from the spin-off of 200 stores t. company expects to launch a rights offering to buy shares in that read on friday. >> the new melissa mccarthy samberg is this weekend's box office champ.
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spice aseen her to a drng russ mission in the field. last week's top flick came in second place this weekend. theed a ken venture an andreas earned $2 million. and a disappointing debut for the entourage minnesota it finished fourth behind the low budget horror movie "insidious chapter 3." greece kicking the can. the next investment is investing. w.o. ross and company invested $1.8 billion in euro bank in greece's third largest bank. someone was joking wilbur there is no such thing as a perpetual zero coupon bond is there? i want one. i want to issue some of those.
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>> that's right. it should be classed as a asset not a liability. >> really? >> we know that greece. it's theatre. what's the result. what's the best that creditors can invest? and why are you investing in it? >> one by one. i think the end game. i think they make a deal. i think it's the pensions and to lesser degree the tax on the electricity. those are the stiff issue. i think every knows, look, the death ritvo now is something at a 2.5 coupon. it's long term already. if you make it 100 years or perpetual. big deal i don't think that's the issue.
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the issue is whether greece make some reforms that give political cover to the other countries to go along with the debt for bearance. >> you were serious, two-and-a-half to 1 hundred? >> that basically is a zero coup upon perpetual bond. >> it would be perpetual relative to me. >> unless singularity comes with head transplants and they start working on humans. >> robots to the rescue. >> i'm not sure they'll need us. you know what i mean? the jury is still out. if this will be enough to mullfy anyone worried about sell-offs in global markets. people will say, oh gooldz greece is fixed. >> i think the greek thing has been overplayed relative to global markets any i west virginia it's 2% of the gdp. it imports 50 billion euros from
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the rest of the eu. that's big relative to greece. greece has only got 11 million people. but 50 million you're ross which won't go to zero is a drop in the budget for the eu. >> what happens to you if there is not a deal? what's your exposure? >> it will be very bad. >> how bad? >> well the danger would be a collapse of the banking system. ritvo now it's on life support over 80 billion euros of ela money. if that stops coming in and they go out of the eu and they go to the -- it will be very bad, that 80 billion euros probably would have twice the cost it had before. >> did you think a deal was going to happen already? you are an investment thesis? >> our thesis was samarra was going to when when he called the special election. that's where we went in rome. >> i ask this i think most
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people on wall street are expecting a deal will get done. when we talked to them. they lay odds on that that range from 20 to 40% that a deal doesn't go through. >> in reality, the odds are either zero or 100%. it won't be a 50% deal. i think a deal goes through, i don't think that mr. sampras would have dispatched to brussels this morning which he did for informal unscheduled talks if he didn't think he could get something together before the big g-7 meeting on wednesday. now, this is fought really agenda item for g-7 because greece has first got to come back with a counterproposal and my guess ises that what the two member ministers will be doing today. >> can you get a daily look at how much your kwemt investment is on that thing? >> unfortunately, it trades
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publicly. >> that's what i'm getting too, i have never seen wilbur roth. i never seen lawson ross together. how much has he lost on this investment? >> i don't know, we are down 30 million euros, something like that. >> on a percentage basis. >> it's a 100 percentage. it's a strong investment for us. >> how much is the investment? >> around 50. >> it's pretty big. then if it works, will you end up making it? >> if it works, i think we'll have a chance to average them before the stock goes back up. >> they haven't done that yet? >> it isn't certain yet. >> then you might not be as certain as you appear to be. it will get done. >> if i'm wrong, it can come back and give me a ha ha. >> i know what 30 million euros means to wilbur ross. >> is that 30 million equity or the debt on top of snit. >> straight equity. >> that warranted a little pat
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for you at this point. okay. what did you think of that 280? you loved the reports? you liked the market reaction? >> very good. how about the market reaction. is it frustrating or just to be expected? >> it's enough trying to figure the market on a day b day basis. if you may made the market the equivalent of the electrocardio pedgram, you would think it was about to have a heart attack. >> that gives you the economy is at least 2.5% gdp. >> i think two-and-a-half may be on the high side. >> you were a chris christie guy last time weren't you? >> well, back before romney ran, yes, certainly. >> then romney. now you are all in with jeb bush this time? >> not all in with anyone he's trusting the rnc, whose job is to get money together so when
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there is a punitive nominee, it doesn't run out of cash before the convention. last time romney got caught in this big vacuum. so there is an effort now to build up a cash catch so that that won't happen again until i get through with that it's not really appropriate to back one candidate. >> you did sit through i think speeches where six laid out the plans for you, was this like quick? >> governor rick scott of florida had an economic summit. he had a half a dozen of the republican candidates there, but each had about 20 minutes strictly to give their plans for the economy then ten minute q & a. not a debate. >> who was there, who was most impressive? >> marco rubio had to come by video because there was the big senate vote that morning. so that gave him a little disadvantage because it's not the same thing on video as being
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in the studio. jen was there walker was there. scott perry was there. ted cruz was there and huckabee was there. >> and your take away on that? >> well the one who got by far the most applause was jeb. that's partly because it's home country. partly because he did a very good job. i think the most amuseing thing was huckabee. he must have gotten eight or ten pleasant laughs out of the people. so he's back in his tv personage i think more than campaign person annual. the others did okay. so i don't think anybody got really knocked out. i don't think anybody really leap frocked. >> can i ask you quickly about another investment that you've made? this is a huge investment. you poured about $2 billion into marine transport in recent history. >> yes. >> we have watched crude oil
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prices collapse. in some cases, i think the takers were being used as storage. >> that's correct. >> what's happened in the industry? >> the collapse of crude oil is good for tankers. the largest single costs is what they call bunker fuel. but the physical volume has been very good t. rates on crude tankers are about five times what they were a year ago and the rates on product tankers are three times t. turn around is starting starting. >> don't be a stranger. we're going to get an update on all these. >> good will you have to come back out of the summer. >> everybody tries to get there. that's the problem. i know. i'm going. i think go west young man. who goes to western new jersey? nobody. i mean you hear a pin drop. >> it is probably undervalued out there.
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>> that's what killed me. >> helicopter. >> coming up when we return tesla announced the home battery back in april. vice chairman bob watts says it's time for shareholders to explain. he will explain his bearish outlook on tesla when we return. you get an industry leading broadband network and cloud and hosting services. centurylink. your link to what's next.
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there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too.
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welcome back to "squawk box," elon musk said to speak later this morning at the annual convention in new orleans one day before the tesla shareholder meeting. the stock up 25% since announcing the company's home battery product in early april. joining us to talk about this is bob lutz the former gm vice chairman and contributor. good morning to you, bob. i gather you think this whole thing is a charade or at least not nearly worth what the stockmarket and investor versus put on this? >> no i don't think it's a charade. but i think it's greatly overvalued, because having batteries as back-up storage has been around hundreds of years. since weight doesn't matter if the battery is stationary
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really the cheapest and most effective back-up battery systems are made out of lead acid since you don't have to carry it. so i don't, i can't understand the fascination with this and then there is the fact that he's got a car business which is by global standards still infiniteesmal small yet he has to turn a profit on the car business. the prospects for making money on the cars is pretty slim. the company is also hemorrhageing cash. so i think what we're seeing here is that echatillon, whom i really like and admire greatly but every time the question is well what about the car business? he says never mind the car business i have an even better idea. then he rolls out the battery thing. so i guess i'm not recommending cell i'm not an analyst. i'm saying if i were a holder i would think now is about the top
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that that stock is going to attain. >> let me make the bullish case this is not a charade. there is an argument to be made. you tell me if i'm wrong, in terms of scale, if they get this gigafactory going it will take every other car company so long to catch up but there will become a moment at which they really actually do take off and take off profitably that may be several years from now. if they can actually hit that turning point, all of a sudden the game changes. is that the storied stock? >> how about never? because win look at lithium ion batteries the process of making lithium ion batteryings is almost totally automated. whether you have a factory in china or the united states it's all fully automated equipment behind glass whether you have two assembly lines or 15 it
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doesn't matter. the highest cost in a lithium ion battery is not the assembly labor, it's the raw materials and the raw materials have to be procured at a certain price and everybody pays more or less the same price. echatillon says i fought out every country that produces lithium. therefore, i now control the global supply of lithium. then i say there is a chance he is going to gain a competitive advantage. other than that boy, i don't see it. >> how quickly would it take mary barra at gm to catch up in terms of physical production of batteries, if that strategically was something they needed to do? >> you wouldn't want to do that. there is so much lithium in the world and most of the big companies was in china and as i said the size of the factory is
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not going to make a big difference in costs. it just won't. material costs are material costs. it doesn't matter how big your factory s. i always have to emphasize, echatillon musk's battery, tesla's battery is no different from everybody else's battery. it's litium ion. there is no secret sauce in that battery t. only reason that tesla is having a greater range than other electric vehicles is because they cram more battery in. that's about it. the other thing, few look at the market right now, because of the low price of gasoline and the sort of an ebing in the general interests in electric vehicles boy, electric vehicles are poor sellers right now. so he's also struggling somewhat with a non-receptive market. >> i want to get your views on
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two other things. last week we had harry wilson on the show. we were talking about uber and sort of the future of vehicles and actually roger mcna me was on the show. he made the suction he thinks long term this is probably ten, 15 years od out, actually everything will become centrally owned. many people won't own vehicles at all. they will be centrally owned. we will rent them. jump in a car for a minute. park it. someone else there is sort of the uber zip car version of life. does that make sense to you? >> yes totally. i think it's inevitable. when i talk about the autonomous car. that's exactly what it will be. these individual modules to fit into trains for the freeway. which have people most people will not want to own. and the whole uber concept which
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i neverlyreally thought of. the whole uber concept is really autonomous cars that are being directed by drivers. unfortunately as a car guy, i do see. it's the only way we will beat urban congestion. we can't do it with everybody owning a large car. so i think this model of cars on demand, where you need them. drop them off, billed monthly for the service is exactly the way it's going to go. >> bob, thank you for your projection. we will talk about tesla, see you soon. >> i'm keeping my car. coming up controversy over a new tell all book about new york oog's wealthy elite. day one i said that's a crock.
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publishers planting a future version of the prime it as.
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>> the wealthy elite may contain more fiction than fact. the primeates has errors. she spent six years doing field
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work. the new york post says she only lived in her park've apartment three years. the publisher said it would append a net to future additions. there are all sorts of inconsistencies. she said she went to a gym and it wasn't opened when this would have happened. a macaroon store that that wasn't opened. shelves quoted somewhere when somebody confronted her on the life bonus thing we talked about and raised eyebrows about. she said some people had told her about it wasn't a trend. >> she couldn't name anybody who. >> i don't know the history be you there now seems to be enough of these things plus a publisher saying well, there are some inconsistencies, we were trying to protect people single people giving the husband a bonus
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instead of the wife giving him the bonus? they hadn't been married? >> who runs our house? >> i have not got an bonus t. bonuses haven't gone either way. anyway. >> i asked my husband to come into a furniture store to look at furniture this weekend. he goes i want to take a nap. let me go to sleep. will you do what you want anyways. so go ahead. tackling subjects as diverse as casino card counting and a heist of moon rocks, in his new book, he is taking on russia. we will too when "squawk box" comes right back.
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is apple music streaming service ready to compete with spotify and pandora? today's big announcement. will it move the stock and should you be a buyer? your first look at today's world wide developers conference. ben is here to talk power, corruption and billionaires in russia. he is here to explain. plus san andreas rumbling theatres across the country. the movie's producer joins us to talk fact or fiction. and king of the track. >> american pharoah has won the triple crown! >> we talk ad dollars for the
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triple crown winner american pharoah. the final hour of "squawk box" begins right now. >> live from the most powerful city in the world, new york. this is "squawk box." >> i think i should read this very fast. this is cnbc first in business world wide we have been watching the futures this morning. so far things have been relatively flat. mcdonald's, a dow component trading higher the numbers are better than expected t. global kompbs were down joe, you were right. the u.s. is worth it just barely. but europe was considerably better. from yeah 2.3. >> up 2.3%. they point out it was strong
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results in the u.k. strong results in germany and france overall, europe was doing better. >> isn't that where they set everything up? >> yes, coming from europe. >> from the u.k. >> what happened though, in the u.s. is traffic was actually negative. customer traffic was negative. that's a bad thing, they do say they were trying to do this like having limited time new menus. >> it's amazing, in constant currency, systemwide sales rose 1.8%. if you look at just not constant currency not up down 7.2. >> that's huge. a strong huge head wind for american corporations still. >> yes, it is. we are having our 20-year anniversary. when you talk a lot of the news
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is in debt for mcdonald's. it seems like yesterday they had a couple ceos pass away. 11 or $12. it was written off then t. market cap is now $91 billion. back then it was a $10 billion company. this is only ten, 12 15 years ago. suspect like that. >> maybe 12 years ago. >> they were young. they had succession problems. but then the guy came in and did pretty well for a good five six, seven years. >> what's kind of amazing to watch is this will be the last time to get these monthly numbers from mcdonald's. the news is bad, wal-mart no longer gives monthly home store sales. >> i'm not against this. i think this creates all sort of powerful noise and perverse
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incentives. >> look, you can look at these monthly numbers, with wal-mart we had a good feel. >> how much can it be a bad thing? just to know about sales every month? >> this goes to the larger short-term nature. >> not really. >> that would be earnings trying to manage earnings just to disclose what your sales are for transparency sake. >> obviously, mcdonald's. >> i don't want the transparency. >> it forces the stores and companies to think in ways not long term. mcdonald's has to pursue a turn around effort that will take them years. if they have to sit around. >> if it's working, we're not going to know it. >> i think it leads to less volatility on a monthly basis instead of being shocked on a quarterly basis. >> that's when good things happen. we will get to versatility to a year from now.
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>> there we go. >> let's talk about the top stories investors will be talking about. deutsche bank is announcing resignations the manager team had been under a lot of fire. the shares at the bank were trading higher. syngenta taking a second proposal. this is a $2 million reverse fee saying the u.s. rival made no concerns. sear's plans to raise $2.6 billion from the spin-off of 2 humidity stores t. retailer expects a launch rights offering to buy shares shares creating higher on that news. >> in market turmoil in turkey the ruling party failing to get a ruling majority and stocks down sharply do the math on 6% here t. country's currency also taking a big hit. so that's one of the front page stories that we're seeing and as
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far as u.s. interests there, it's hard to really understand. >> except for the turkey in syria. >> it's hard to handicap islamisting, secular lines it's a weird situation there. >> right. >> it's not going to turn into sariia law. it is an sigh lammist date. a lot of people chafed a that. >> this does mean there will be more chaos there the parliamentary system is a lot more noticeable. >> you have been there enough to know. >> are you kidding me? >> you haven't been there. >> yeah. >> it changes it to an f. >> that's seinfeld's place. >> obama. >> i thought seinfeld got there first. >> by a long shot.
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>> apple, though, this morning, apple kick off the world wide developer's conference the tech giant slated for music. what else can apple fanatics expect? brian white is in san francisco the global head of tech. john fits gerald will be cover dhak event all day. the "new york times" best selling author is here an apple fan i believe. you also have a new book out. we should talk about that in a little bit about russian billionaires. i don't know if we should worry about your safety or our safety. in the meantime, brian and john. what are you expecting? we know about the music. tell us about excuse me the surprises that are on your list. >> well i don't think there is going to be a ton of surprises today. so typically, we get an update ios 9. the macios 10 update i think we
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will see incremental improvements. it's all about enhancing the ecosystem. this is the huge differentiator of apple. i think we will hear more about it today. >> john one of the things we heard about tim cook particularly in the last week for basically taking people's data and monetize it through advertising some people talked about today, apple pay, an upgrade that might allow loyalty programs to be attached. how would that work and would apple have that data? >> i don't know how that would work. tim cook is also specifically said they are not going to use point of sale data. they're not going to collect that. so it would be tricky to pull off loyalty in the way some retailers want. do expect apple to make the premium argument to developers.
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because this is the audience that wants to make money off the iphone and an him in the wars they won the premiums here. there is a lot of doubt about that last cycle. what was going to happen in china, what was going to happen in the u.s. with samsung, apple is going to reverse samsungs developed markets has continued to be strong in developing markets and in china. expect them to say, hey, here are all the billions of dollars and extend that argument as they start to show some of the tweaks and fixes they are making to mobile software and ios and also on the mac platform and expect them to do things like connected home, rule out more detail on exactly how that will work with the first developers and devices to check to the ihome ecosystem and also some tweets around siri and search on ios. there's a product proactive that we learned about on 9:00 to 5:00
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anticipating what your needs might be. expect apple to say you can turn it off if you want. we are using this to help you get through your day. >> do you have an apple watch? one of the other things we may hear about is allowing developers to actually operate directly on the watch without having to use the phone. >> i don't have the watch. my mom has it. she loves it. she calls it her friend. she has it all the time. i got rid of wearing the watch when i got a phone. i want to get a watch as soon as i don't have to have the phone him when they're not tied together, i'll definitely get the watch. right now, it's not there for me yet. i'll get there. i don't need to know what time it is. i don't need a watch for that purpose. i need a watch that will do stuff for me. i'm getting there. siri is there, you are forced to hire from your cousin or something that doesn't do anything. can i do this? sir i have like i can't help you
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with that. i'm waiting until siri can help me with things. >> are you a spotify user? >> i do sometimes not spotify but stream. i guess i have used spotify. i love the whole streaming thing. it's like radio again. >> how big a business do you think apple's music service can be and how worried should spotify really be? >> well i this i for ap. it's not necessarily about cap curing a huge market opportunity. it's not that big. i think it's a couple billion dollars i think for apple what it is is really giving the user what they want. you know when you have 800 million itune users, apple is really about giving people what they want and keeping people locked into this ecosystem. and i think apple spay the same way. it's a great product.
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i don't think a lot will impact apple's future over the next couple years. i think they realize, look we got this whole thing started with music, with itunes. here we are. this business is starting to decline what is happening, is younger users want strategic. we're not there. they gave them a leap frock into this market. we will see exciting things today. >> what's the chance they land taylor swift? will that be the music coup of the day? >> it would be the music clue of the day. there is a decent chance jay-z did not land her with title. not a big revenue impact. it's an important foundational tent poles including apple pay and the watch that makes apple's ecosystem that much more valuable and sticky. it's very important to you. >> thank you sticking around. we will talk russian alleguard.
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>> in fact when we come back we will be talking about vladimir putin in power for over 15 years the latest book "once upon a time in russia" two billions took advantage and right now as we head to a break, here's what's coming up later in the hour including larry lindsay on the economy. and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach,
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i can't wait. welcome back to "squawk box," president obama is in europe for the g-7 summit. it used to be called the g-8. according to rebels trying to overthrow ukraine's government. that's all. among other agenda items. president obama is looking to extends economic sanctions against russia. those penalties are set to expire at the end of july. let's get to our guest house, the best selling author with a new book out this month. it is called once upon a time in russia t. rise of the alleguard's. ben, it is great to see you. i don't know how you fog these books out so quickly. >> this one came about. it took about a year.
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it took longer than my usual book. i got stuck into this story. it's a little terrifying. >> the idea of writing about russian alleguards. were there moments you said forget it this isn't worth it? >> i got all california he called me up and said come to london, i want you to meet me guys that want to tell you a story. i flew to london. >> literally. he said he picked up the story. >> many times, they're always terrifying, ability gun runners, brett, is this dangerous on a scale of one to ten? it's an eight. that's why he didn't want to tell me what it was. there was all the security lots maybe 30 40 security guys there is an allegaring and russians there.
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i don't want to do it. it's scary, it's intevenlts i heard the storiant these two allegarks that built these massive fortunes as communism fell and how putin came out of that i was blown away. there were crazy moments. brett and i were sitting, he goes are we going to get killed for writing this? he said, you watch too many movies. i said what if we say the wrong thing? he said don't say the wrong thing. it's an amazing story. it has been very exciting. >> these two gentleman, one of them was a supporter of boris jett yeltsin from before. >> the godfather of the kremlin a mathematician who became a car salesman also r almost assassinated. hsu is dliefr was decapitated. he was covered in burns he decided i'm going into politics as well t. only way to be safe
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in russia is to be a political businessman. an acretia, he worked his way into yeltsin's family and became a giant guy and mote roman abramovich, the dashing toy salesman from siberia that would make rubber ducks. they met and abramovich was 26 and came to him and said let's build an oil company together t. largest oil company then the whole story quickly, yet sin was starting to get old. he was going to die. they needed someone to take over. they decided we need a cog. a low level guy to control, someone loyal. they found putin. >> a guy from the kgb. >> the assistant to the mayor of saint petersburg he said up a car dealership. we'll create him and own him. >> total miscalculation. everyone is always
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misunderstanding putden. even now we still misunderstand putin. he's not who you think he is. he is shirtless on a horse he is an incredible strong man and hand picked him. they placed him in the presidency. they invite him to stalin's house. you see bullet holes he sits them down and says you all maik made a lot of money. you can keep your money. >> i have actually heard a copy hat gotten to putin. mr. reagan plenty that have it. sources that i don't reveal. >> barezofski was found hanging in his bathtub. ruled a suicide. >> what about roman? >> r0e78en is phenom'ly wealthy. he has a missile defense system
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he owns a home in saint barts. >> will he be reading this? >> i don't know what people are going to think of it. it's a thrilleresque story. i don't think it is a negative story story. >> she meets with the g-7 leaders. trade bills could hinge on a house vote. we will talk to dockman patrick mchenry who will join us next to discuss it. the life behind it. ♪ .next to discuss it. .♪
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. >> the trade battle continues in congress supporters of the president's plan hope the bill will be passed by the end of the month. join us now with more on the vote crossing party lines, making for strange be bed fellows. a republican supporter. patrick mchenry. >> we still have hillary clinton. it's very strange the way that this is happening. >> she was very deeply involved when she's in administration. it's like she doesn't know
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what's happening. which is shocking to me. this is the president's top legislative priority at the moment. yet, hillary clinton is the presumptive democratic nominee won't get off the fence here. >> i don't think you are speaking, it's not shocking to you she is not taking the stand. >> it's pretty fair. >> say i'm somewhat skeptical of her. >> there you go. >> it's years it has been in the public eye. obviously. at this point when we hear even from the right that nobody knows what itself in this there is climate change stuff and obama is doing all this stuff, does anybody know? >> we are talking trade authority t. mechanism in which the house and senate have a trade agreement that.
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means we have to construct how we deal with trade agreements. it is our internal process if congress. it also dictates before we have a vote. >> that's a red hering. >> congress actually has oversight. if we pass this legislation members of congress can go to every negotiator around. we're currently fought credentialed for that. it mandates a public disclosure piece an gives us input with the administration. if they don't comply a fat chance they will get any agreement passed. we need to pass trade promotion authority so we can restrict with this president his actions. >> you the person in the past is someone that said you're going to be going doctor-to-door selling one of the president's programs. >> you would have said? that's what has people
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wondering. it has me wondering. the president makes so much sense, what was it about this that, i mean don't look at it and say isn't there something you don't like here? >> right. the republicans, look at policy if you look at policy of bringing down taxes, we are republicans. we're in favor of that. so when we're talking about tariffs, they're taxes, if they say we have the ability to negotiate for them to bring their taxes down. >> well, because it's all these red herrings that come out that are accusations and if you look at what the labor unions the sierra club have teamed up to doitative made some inventive assertions, what they're saying in my district which is very anti-labor, you need to restrict the president's authority.
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you need not to give him authority. >> you need more democrats or hold the line with republicans? >> if you look at the last time we had trade promotion authority, we had 25 democrats. if the president is in the 20s, i think if the president hits 30. i think it's possible. but what this has to be led by is republicans and republicans need to understand the opportunity to restrict as presidents. >> maybe you can tell thank you, chief deputy. >> still to come. larry lindsay on the delta bond market. concerns about the future of the eurozone. later, what the heck was up with this guy? creeping in the stands on saturday at belmonte park a look at the winners and losers when it comes to endorsements and advertising. take a look at u.s. equity futures on this monday morning back in a moment.
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welcome back to "squawk box." vail resorts earnings falling sort of estimates. mcdonald's same store sales, results driven by strength in euro. general electric sells its lending unit to the canadian investment plan pension board that. transaction is said to be worth more than $10 billion in assets. you are next guest says the central bank lacks credibility. larry lindsay is also a former federal reserve governor and former national council director. larry, it's great to see you, thanks, for joining us. >> thanks for having me becky. >> so you say that the federal reserve is actually increasing risk. the fed is looking at this and probably thinking that they are decreasing risks by not creating risks sooner.
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>> they are reducing one-half of the risk profile by delaying things. they are blowing air into the blue. making sure that everything runs smoothly risks are necessarily two-sided. by delaying action what they mean is when they have to move they have to move much more quickly and to me that's a much more detablizing type of risk than adjustment upward if rates. >> and your criticism of the feds has been more pointed lately. is that because they've waited so long to raise? >> i think becky i look back to get my dissertation. if they had asked me the question you have the information why unemployment is five-and-a-half. the economy is growing at two. inflation is one-and-a-half what do you think the fed rates
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should be. >> the one answer that would have gotten me kicked out for sure is zero. we are not what anyone would think in the grand scheme of things is appropriate t. funds rate is too low. so the question is how do we get to a higher fed funds rate. >> the question is do we do it slowly or start sooner or wait until we are forced to do it by the bond market or events or statistics. then we have to move much more quickly. by far, the best approach is to do it fairly and quickly mr. play devil's advocate here t. fed is looking at superiority very quickly. any american industrialist can tell you they can't raise rates by the strength of the dollar, that would throw more chaos into the system. what do you say to that? >> well there is no empirical evidence that the dollar has any effect short term usgdp.
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we export gdp and import 20% so the gains to the consumer are generally longr larger than competitiveness t. dollar moves up and down when i was a fed governor the mantra was you move through currency moves like you move through oil moves. >> i think the move we have seen in the last six month has been spectacular. >> yes but in the case of currency, it takes two to tango. a lot of the foreign exchange movement has not been driven by u.s. policy but ebc policy. even if you took the narrow view here that's what we should be focusing on. why did the ecb do it? they did it because they were desperate. now, few are a risk minimizeer, you have two choices, you can
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try to get a little extra competitiveness by weakening the dollar or you can worry about europe implodeing and stopping them from their exit strategy which is to weaken the euro. again the lowest risk of approach would be to care more about europe implodeing than care a little about competitive ness ness. >> there are some adults making decisions and they're not, i mean they're all smart. they all went to college. it seems awfully clear to me. >> they're all also friends of miempblt we're disagreeing about politics. >> you make a lot of sense, though, to me the benefits of staying at zero long ago have evaporated and so if you ever think you need to be
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anticipatory all of this meddling might have unintended consequences, i'd get out as soon as i possibly could because i'm not getting anything for staying at zero in the first place. i still think their managing stockmarkets. when they see the slightest bit of trepidation, they fold. i don't think those should be people running the fed. >> well, they shouldn't be. i don't think they r. if you think of which times of error you will be blamed for, if they were to move and the economy were to turn down everyone would be mad at the fed. we the public and the political class loves to have everything going up. you know that's why we're in bubble number three. we had bubble number one in the '90s. bubble number two in the oos. now we're in bubble number three. it's a lot of fun while the bubble is going up no one wants to be accused of ending the
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party. they said it was the job of the fed. it is the job of the feds to take away the punch bowl before the party gets started. >> you don't get into the hall of fame for heroes by turning easy money and keeping the punch bowl going. you get it with voelker when you take the punch bowl away and administer the medicine that is good long term. >> well i remember someone throwing a party and i think in fact the hall of fame works both ways. and that's you know i think that's a concern that we have and in general policy-making has become increasingly short-term focusing on every last wiggle in the data rather than taking a look at the long-term picture, which is rates have to be higher. is it lower risks to do it slowly and gradually and start
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sooner or wait to move until you absolutely have to? >> larry, i'm sorry we have to end here. come see us in studio. we miss you. >> thanks. we look forward to it. >> okay. see you soon. >> "san andreas" raking in another $100 million. it happened in the same place. movie producer bill flynn, later an unforget about performance that moovrn means sponsorship, maybe a book permanently. we take a look at the big winners. "squawk box" will be right back. financial noise financial noise
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let's get down to the new york stock exchange. jim cramer is standing by. jim we saw the mcdonald's numbers this mo. what did you think? >> ethink they had the same kind of turn around they experienced in europe again. the united states is more difficult. we hear they are demoralized. anywhere any turn on the globe is positive. this is poised to go higher. although, obviously, if interest rates go higher nobody will care. i like what he's doing. i think they have to improve the quality domestically. make the inchees more excited about having a mcdonald's franchise than anything else. >> it looks like the u.s. is the more sticking point. they pointed out traffic. was down in the united states
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once again. >> look. almost everybody is having big numbers in american restaurants. almost everybody. it is disableing. yet when you ask these restaurateurs who are they taking from? nobody says we're winning over people from mcdonald's. denny's last week told me no no we're not taking them from mcdonald's, mcdonald's is losing to everybody. it's not clear. >> we will see you in 17 minutes. thank you. we will talk movies earthquake movie "san andrea's" leading the box office t. producer of "san andreas" and other films that have grossed more than a billion dollars world wide. he is working on a couple films. crawls, beau on the success of this film. help us with this in terms of trying to understand what's going on in hollywood. when it comes to movies like this and hollywood tent pole of films and how you think about
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those types of films versus frankly the films like disney i assume you are trying to do but in a different way? >> yes, i'm drink driven by concepts. we are making ploifs for the world now. that's a new sometime of film making. you have to think about universal themes big ideas and you know things that really translate to the entire globe and it's a new world out there and it's exciting though because, you know we are doing two-to-one overseas to the u.s. and u.s. is now in my opinion is a territory against the entire world. so it's you really have to think big in terms of how you make your pictures now. i think have you to have really clean ideas.
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and relatable human kind of emotions that the world can kind of connect to no matter where they are. >> and how much of it has to be action then? versus talking? people have to be talking to each other? >> there a lot of talking and die loss it meant there were a few days of simply pure dialogue, drama and driving, but i think the you need the heart and the human component to elevate the film. you know i think that's where people get a little bit wrong. i think people just lean into just big concept. big spect cam. in a movie like "san andreas" characters that you love. at the core of "san andreas" it's about a family coming together. i think that concept of a broken family trying to reunite is
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something the entire world can text to in a majorer way. >> you were telling us you won't even write a book unless you think there is a movie in it. >> i choose my book now if i feel like it can't be a movie, i wouldn't necessarily write the book. beau and i have been working on a couple things. i have been doing this more and more where i think of the movie and the book simultaneously. so i sell the movie and the book, sometimes the movie first and then the book. what i love about what beau does is he really thinks about this big, big picture. i want to ask you ability the rock. i know you have worked with the rock for a while now in a number of films. he is someone who is huge everywhere. everyone loves the rock. i know the rock. did you know early on that you worked with him, this was going to be this massive international star? >> you know what i really did. i did journey to mysterious island with dwayne johnson and i knew on day one when i sat with him and we went and made that movie in hawaii i never seen
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anyone more focused, works harder, and more lovable and more talented than someone like dwavenlt i worked with a lot of actors, there are a lot of amazing actors out there. there is something about dwayne. he's a true global movie star and it's something that he wears extremely well. he wears it. also he really wants it. when we were making jt journey to mysterious island." what is your goal? he says i want to be the biggest movie star in the world. it was so convincing. i made three movies with him. i made "herk lows" it was fantastic. "san andreas" he took it to a new level, to a new place as an actor. i think he shows vulnerability. i think that's what's taking the movie over the top. >> can i ask you about china? you had this huge weekend in china. china now is about, is it half the size of america in terms of ticket sales? where is that going? is it going to be all about
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making movies big in china? >> well i mean china is the number two market in fields and nothing is slowing it down. and they love movies there, and you do have to keep that in mine t. great thing too, is that we travel the world with our movies. and promote swrr hard and that's something that dwayne is so good. he travels everywhere and shakes every single hand. i think on those travels, you get a severance of people what they want. what they respond to. we did have a good feeling at warner brothers and myself and brad peyton and dwayne we had a good feeling that they respond to this very big concept, this relatable movie, natural disaster and earthquakes are things that we all kind of have to deal with and we have to survive and push through and persevere, but at the same time there is that kind of that family element that we felt like the chinese audience would
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respond to and fortunately it worked. >> hey, did you watch, you've seen the original earthquake again haven't you? >> absolutely. >> when i was saying i don't, ez geeze, there was earthquake movie out. who starred in it. charlton heston ava gardner. that was a while ago, beau that was over 40 years ago, so i think it was time. i think you are right. >> there was a the inspiration. 1974 was the last earthquake. people forget like these movies those movies thoseer win allen films had amazing casts, towering inferno was nominated. that res amazing movies that people just kind of forgot about. at the same time i wanted to make really do also the technology has changed so much with hd 3d and both with visual effects. we felt we could take "san
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andreas" to a level we didn't see before. >> before we go, i was readth about this particular film cgi, you tried to do a the cost of doing it in real life and the danger of doing it that way? >> i mean it's like we're incredibly safe and we have the best stunt teams in the world. it was very important to the director and myself to really do everything in camera. we really wanted to create and build these sets. i feel like while you need visual affects to make the movies, i feel the audience is a little fatigued by actors in front of green screen. we built everything. we built the high-rise inside the tsunami, we built where the earthquake starts. we really sky dive into at&t park. i think you really need to do as much as you can in camera. i think the audience knows it. the audience is too smart and you have to use the deep
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background for visual effects and take them on the ride. that's what the audience wants from movies like this. >> beau flynn, thank you. congratulations on the filament. come on next time you're in new york. >> i will. thank you so much. >> when we come back this morning, a wild run for american pharoah. now that we finally have a triple crown winners, what kind of sponsorships and products will be sold, and what's up with the creepy king in the stands? we have that right after the break. centurylink you get advanced technology solutions from a trusted it partner. including cloud and hosting services - all backed by an industry leading broadband network and people committed to helping you grow your business. you get a company that's more than just the sum of it's parts. centurylink. your link to what's next. being a keen observer of the world has gotten you far but what if you
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american pharoah galloped to greatness on saturday trampling any doubts of his ability to be a triple crown winner. now endorsements advertisers and even the king are reaping the rewards on the back of the belmont winner. jane wells joins us with more. did you cry? i cried. >> i was screaming at the tv jumping up and down. it was fantastic. but, joe, now it begins. expect to see american pharoah toys calendars, merchandise from fanatics this according to a leverage agency that has managed most of the licensing
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deals for the horses. quote, we will be calling wheaties. i want to talk about two sponsorships. first, the burger king photo bombing a photo. burger king would not tell us what they paid but said as a good friend of bob baffert racing stables, the ting wanted to be there to celebrate this monumental movement and congratulate american pharoah on their crowning. you may remember the king walked may weather into the ring. the second sponsor monster energy, thought to be one of the biggest deals ever for a racehorse but the logo wasn't that visible until the trophy presentation. the exposure for monster topped $2.25 million but the king photo
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bomb was only worth $137,000. really? all i know is i want to know which dugout the king is going to be at during the world series. he's on a roll or should i say a bun. back to you. >> every shot of the horse and victor espinoza has wheels up on the leg too, as you saw. >> true. >> i don't know what victor paid for that, but it's like betting on a winner and they won, in every historical shot is going to have that. >> follow the king. >> i don't like that creepy king. what's he made of? >> i love him. >> you know what? that doesn't surprise me. jane likes to walk on the wild side. we'll leave it at that. when we return more from our best host, a programming note tomorrow tim arm strong talks about verizon buying his company and the future of media.
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andrew, you're trying to talk him into writing another one. you have to. don't stay here for us. if you need to do it go do it. thanks for spending time with us. >> once upon a time in russia will be a movie as well. >> thanks for joining us. "squawk on the street" begins right now. ♪ >> gondod monday morning. we're at the new york stock exchange. could this be the week we get some confirmation on the jobs number. mcdonald's sales today. bonds trying to alley after the sell off on friday own kud oil back below $59. livi


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