tv Squawk on the Street CNBC June 26, 2015 9:00am-11:01am EDT
miami. that's difficult. >> thank you for being here. >> thanks for having me. >> we'll probably be talking about greece on monday if case you want a preview of what we're doing. >> have a great weekend, everybody. great to see you both and have a great weekend. >> "squawk on the street" begins right now. ♪ >> good friday morning. welcome to "squawk on the street." we're at the new york stock exchange. three sessions left in q 2 and stocks looking to tiptoe into the weekend as these greek negotiations come down to a critical meeting tomorrow. china down another 8%. the ten-year is around 2.44. that's a few basis points from the high of the year and oil continues in that range around 59. the read map begins with futures in the u.s. shanghai plunges almost 8%. the worst loss in months.
>> nike, shares poised to open high. >> and microsoft ceo sends an e-mail saying there are tough choices ahead and me lays out the road ahead for the tech company. >> the watch is onto see if greece and the creditors can break an impasse as eurozone finance ministers prepare far meeting tomorrow. overnight in china the shanghai fell fell. the cover of the ft says they mention the word plan b on greece and words like ring fencing and capital controls and humanitarian aid if it comes to that. >> venezuela yesterday tapped into russia and china because they had probably raising noinl. i think greek offer to the germans was you can have my offer now.
nothing. they didn't ask them to pay for the casino license but i think they're saying to the germans, you cut the debt load by two-thirds and we'll pay you some interest or else we'll cut it and we'll pay you in something elsze. this is germany saying we have to punish you. and greece saying we don't even want your money anymore. we want to default. and i think that those who think, and my friend jim stuart has a good article about look what happened to argentina. right now russia and china stand ready to help in any transition. this country is going from the west to the east. not like -- not much unlike what it was during president's time. >> 50 50 right now. they have this meeting tomorrow at 5:00 p.m. merkel saying but beyond that no more meetings. no need for another emergency
summit after tomorrow night. >> merkel thinks -- i think there are people saying why did you lend us money? we never intended to give it back. it's a repudiation of the governments that have taken the money and they're saying listen, we want to be able to get our growth going, you give us 200 billion euro cut in how much we owe, and then no more kick the can and it's over. >> you said yesterday they need a plan. >> you listened to that? >> i did. i think they do. the germans have been somewhat intransigent given an economy that has suffered to dramatically. they don't want to show any leniency. >> merkel lost greece nature that's the headline. >> what does it mean? let's assume it finally ends and they actually do exit.
>> well the euro initially goes down. the dollar goes higher. many of our companies missed the quarters. a lot of numbers cuts. not a good time for us. >> so stronger dollar. >> some used to say that's a good thing. >> king dollar? my old partner, king dollar not so hot. our companies 27 out of 30 dow stocks, i'm taking numbers down if that happens. taking them down. actually, nike you can't take down because they did so well overseas. >> speaking of that. nike is poised to open at a record high again today. the dow component better than expected results helped by high margin shoes and apparel. orders for items scheduled for delivery through june. prices up revenue up. although, this morning on twitter you said don't biep. it's too late. >> it's going to be up 3 today. maybe even 4.
that was a clinic. now, i have been critical of some conference calls. that first tesla, the blackberry call was soho ren douse that i jumped all over someone and said you should not buy blackberry. this nike call is a clinic. it reminds me of when isaiah
thomas decided to take it to michael jordan. remember that in the jordan rules 30 for 30. this is about jordan ruling now. michael jordan. i mean what can i say? this is the jordan shoe on steroids steroids. how do they even know who michael jordan is? and they buy his shoes. >> they do. i see it many my house. >> jordan. >> yeah. yeah. it's out of control. the sneaker thing is kind of nuts. >> and it's the $117 to $130.
>> i see it all the time with a 12-year-old boy and it's scary. >> kevin plank, and i love him, he has to remember that he is up against the co-los sas. >> western europe was incredibly strong. but they had money only to buy sneakers and they
do. i was waiting for them to say that greece was good. >> and the margins are pretty good in sneakers. >> we try to explain that with my son, margin. he gets that. he doesn't care but he gets it. >> that's because you're paying. >> we're trying to pay that. >> you're no longer an atm? >> after the seventh pair you have to draw the line. >> if they can do it in the face of the dollar what's to say other people can't?
>> they have a proprietary product. >> something that a ge or cisco. >> facebook could. there's a technology company that reported last night, and that is micron and there is a company that is technology which is not commodity and it is nike. i urge people to read through this conference call if they want to hear a well orchestrated play. this is the way it should be. it was a shakespeare comedy. >> it has three acts. >> it does? >> mark parker is olivia. he is. remember? >> i do actually. >> i think olivia and jordan. >> many of us remember him from marathon man because that was a later appearance for him. >> is it safe? >> apparently it is for nike
investors. that's how i felt. i was in the dentist chair during an interview and i'm getting drilled and my dentist is, he says if it safe? i said it's safe. because i'm listening to icon. it's not safe. you wanted to say whatever i wanted to say. >> micron misses by $0.02. revenue was a miss. shares are down 14%. report today is titled somebody plees by a pc which is a big part of the problem. >> it is. if i worked at microsoft i'd be having a crisis of conscious. oh yeah they did in that all right. this was a conference call page six of the conference call they say that look it's bad. it's just bad. i mean i think that there were analysts who were really hopeful the stock would come down so much it had to bounce. >> stock was up 60% last year. it's down 40 % this year.
i mean it's like trading silver. >> well what happened is as soon as supply catches up to demand, and then as soon as the demand drops decline radedly cli you see it. bright spot here was nand. they tried to claim flash. you will know next year that's going to be bad too. that's another reason why micron micron, nail in the coffin. >> we saw downgrades in the last couple of weeks. >> good call. >> the analysts i mean very few people were caught on the wrong side of this. the conference call has an element of sadness to it. it's a shakespeare tragedy. my pc my pc a kingdom. trade you for a pc. >> yes. >> terrible. >> got it. >> we have a developing story this morning. one person was beheaded in an attack and an explosion at a air products gas factory in south
eastern france. banners with arabic writing were found near the body. they drove through the factory gate and caused an explosion. one suspect has been arrested. police are searching for someone else who might have been involved. we'll bring you any updates. in the meantime there's the tunisia shoot. 19 maybe more killed more. a mosque attack in kuwait strip. >> it's been a difficult morning. >> can the futures stop it already? >> you were critical of the futures already. >> whoo are those people? they're at star bucks. how much do you want to lose? i'll lose a million. what are they trading off of. >> who are those guys? >> well that ended bad, butch cassidy. those guys got butch and sun dance. >> you never really find out.
i always assumed they got away. i'm kidding. >> that's my what my mom always told me. >> it didn't actually end badly for butch cassidy in real life. he died of natural causes. yeah. i was looking into him in utah. that's where he spent a lot of his time just so you know. >> i am learning more today. >> he went straight and lived into his 70s. >> you obviously did not go to college to get stupid unlike michael korlione. let's do some jurassic world. >> when we come back some interesting thoughts from both microsoft's ceo and co-founder bill gates. plus the ceo of necessarily, a live exclusive interview. >> he never talks. >> futures looking okay here as
we look into another weekend of uncertainty. more "squawk on the street" live from most nine when we return. m nine when we return. o nine when we return. re nine when we return. nine when we return. f nine when we return. r nine when we return. om nine when we return. p nine when we return. o nine when we return. st nine when we return. post nine when we return. the promise of the cloud is that every organization has unlimited access to information, no matter where they are. the microsoft cloud gives our team the power to instantly deliver critical information to people, whenever they need it. here at accuweather we get up to 10 billion data requests every day. the cloud allows us to scale up so we can handle that volume. we can help keep people safe
the news first reported by geek wire. we will need to innovate in new areas. cute against our plans and make some tough choices in areas where things are not working and solve hard problems in that drive where things aren't working. >> gates said it's not as extreme extreme as it was in 2000 but we'll have a few of these companies that tr v these preipo billion dollar valuations that won't be make that transition. he said i wouldn't go long on a basket of preipo companies. i wouldn't go short either. a lot of them are overvalued. >> i've been looking at drop box versus box. and you can make a case that drop box is too high. box is too low. i've been looking at air bb versus home away.
one high one low. is we live in a mobile first. microsoft missed that. cloud first, microsoft missed it. transformation, they didn't make it. this is another one that i wish i had been able to roll the clock back. why did he buy noek ya? >> well that was not his decision. >> what about the draft? >> the knicks were horrible. >> can i tell you how they drafted in microsoft, nowhere. >> i feel as though you are moving to a less positive place on satya. am i incorrect in that assumption? >> i think he's a good man. i know a guy if you got with mark he's a forward thinking guy. i think he came in with a head
of steam. not unlike a great athlete who comes into a steam and says i'm going to make a difference but the team itself is not necessarily the team that i think he thought it was. i think there's extraneous players. it's just not working right now. >> gates has asked about his wiggestwig biggest failures. he said the phone market there's a long list of things. >> look if you read the micron note you realize that pcs, if you made a bet with pcs, it's a sloppy bed. it's like when you're a kid and say mike maikake your bed. >> search margins are, yeah. >> there are these companies like google facebook apple, they got it right. satya. >> you mean the phone market and the search market. >> phone market. satya has to catch up. they have a great balance sheet. the fact that he was talking to
sales force, doesn't that say sales force is cloud and mobile and connectivity. >> but you've got to be willing to take a fairly large risk if you're going to pursue a deal of that size. there were discussions around it, as i reported. they never really got to the price where they could feel like they could do something but you're right, jim. you've got to be in a position to at least consider those kinds of significant game changers. >> game changers. buy a coke. >> jinx. by the way, speaking of a lot of these tech companies, looking back at the downgrades of the week. >> yes. >> netflix, amazon today it's target. we also got gm and goldman. this morgan note on china saying shares in shanghai could fall 2 to 30% by next year. >> wane hood is a fine analyst on the target. i think the change at the top about apparel and fashion, the
woman who was let go been there for more than 30 years. a target lifer. is it not time to have new people in apparel? apparel is very tough. paeshl especially when you have people like nordstrom blaming. walmart not yet with apparel but there are a lot of people way ahead in apparel and it's tricky, as we know but target was not making it in apparel. they weren't making it in drugs so they bring in cvs. i don't think that they're going to tolerate anything other than the best and she was not delivering. when you go there, i mean i was starting to go to kohls for my clothes. that says something. i don't know who you're using. >> i'm not sure i'm using either. >> i saw him once at tj max. didn't you go there once? >> i did. >> i knew knit. don't buy your underwear. you are charging so much more
for the same underwear i get at tj max, and i would show you right now if i could. >> there's a mental image -- >> thankful for that. >> next calvin klein model right here. >> when we come back cramer's mad dash. take a look at futures. 30-year just topped the year to date close and the ten-year is closing in on 2.47. we're back in a minute.
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typically we do see lower volumes. a lot of people heading to the beach. where are we starting this morning? >> finish line. the last couple of quarters has been a disappointment. they have an instore macy's. they have been selling the nikes that were not what people liked. it's all changed. this was an excellent quarter. and i have finish line on mad money. and it's going to be a victory lap at the finish line. >> is the turn around in a company like this a result in a change of execution or a result that the broader market is helping them out. not stock market but the broader market for what they're selling. >> i think the transition to macy's, but also it's the selection of nike that finish line gets. they got the right selection. nike and finish line are like partners but you have to get the right nikes. this time they had them.
we'll hear from the ceo tonight. biotech, crucial. alder bio, 4 .49 million shares being priced at 44.50. that will determine the face of biotech today. they have what many people think is a cure for migraines. block migraines. can you imagine? >> so this is being a primary raise? in other words, this money is going to the company? >> yes, and i have to tell you, watch out. right now the standard of care is botox for migraines. >> for recurring ones where you're getting them three or four times a week. >> i think brent sonders should buy this company. >> you never know what allergan might buy. >> they bought kythera.
>> i assume these guys aren't making money yet. that's the beauty of the capital market. >> nobody makes money. it's like the another company that's making oils. that's a part that doesn't get you high in marijuana. >> put that in your pipe and spoke it. >> it doesn't get you high. gw gwf ma that's a crowd pleaser. >> we're back after that.
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you're watching "squawk on the street" live from the financial capital of the world. the opening bell in just about the 0 seconds. the two big seconds from greece and china. we're headed for another weekend of uncertainty regarding greece. a meeting tomorrow in which merkel says that's going to be make or break at least before they potentially go into arrears. china's shenzhen they call it
china's daz nasdaq is down since june 12th. >> they opened 20 million new accounts. people margined and bought stock. china is on steroids and i don't trust that market one bit. anyone who's in there playing it, just go to the roulette table. that's a sure loser. >> morgan stanley today said it's the supply and the margin debt ratio to market cap. it's a decelerating company. it's the lack of earnings growth. >> it's stake eyes. paper tiger. i've been saying that. i'm not backing away from it. >> what does that mean? >> it means they do this big military buildup, don't worry about them. we keep thinking they're the strongest economy in the world. they're not. we are. i'm not being like a republican candidate. i'm just saying our economy is
stronger. >> here's a look at the s&p and the opening bell. down here today, exactly, a compensation company. another ipo, alarm.com, a provider of cloud-based services for remote control monitoring. we're talk to the ceo in squawk alley. adt is in into this thing. >> everyone. i've got to tell you the ambarella products which allows you to be able to see who's at your door on your concern,phone. a parent company of our network is involved in this. >> nike is going to be the big winner out of the gate. a 3 .4 gain on earnings. the ceo was a brilliant man.
>> when i listened to the call the reverence that they have for each other, nike is truly a team at the top, and it's customer-driven and customer-focussed. it's the way it should be. the it's such a great company. >> shares are down oetis. coming up on its two year anniversary where there are no tax ramifications for a buyer. the company has had chairs and agreed to put two representatives on the board of directors. i don't like to go too deeply into how the sausage is made in terms of the reporting process but it might be helpful in this situation. let's call it five weeks ago, i had information, good information that in fact there had been at least a brief
information there. the way it was explained to me however, by somebody who would have known was that mike pearson, the ceo of value yent was doing in a sense almost a courtesy call on behalf of his large shareholder, bill ackman. they own a significant stake in valiant valiant. they also own a significant steak in zoetis. it was explained that nothing is going to come of this. they're not going to pursue this but they did as a courtesy take a look so to speak. it's unclear to me whether anything has occurred in the five weeks since i heard this. i did not pursue it in the sense of not wanting to report it. when you do all you have the sense of doing is sending the stock up as the journal did yesterday on this report of an approach. they got nothing more in their story that i saw that indicates there's much more to it. we'll see. a lot of wall street firms weigh in this morning saying it would be neutral to positive says
bmo. we don't see this as significantly accretive. morgan stanley says accretion could be costly. they see 7% delusion in 2016. rbc says our concern at the time is proximity to the salix deal that just closed. let me tell you again my judgment at the time was that this was not going to occur that it was not pursuing as story because it semis as though it was ephemeral. that may have changed but it may not have. and it doesn't necessarily mean that zeotis might not be under pressure the sell. it can do so without any ramifications. when you're spun off there's a two-year period you have to usually wait. that's what i can share but we'll see if there's anything more i have. i checked back in and it does appear that the approach that i
heard of was the same one the journal is reporting on. which wasn't much. >> well alaix, the ceo of zoetis is a frequent guest on mad money. he's done an excellent job. when you look at swine flu, they're nonpromotional who's in there solving it? zoetis. they are the company that the department of agriculture looks to. they've done remarkable science. it was a pfizer spinoff and i thought this was a shame. he's done everything he can to build value in this company and then they come along and do this. i hope he gets to keep the company. i hope this is not true. i think he's done a remarkable job. >> he does have an activist on his shares. nothing says they won't be
forced to look at something. however, it doesn't appear to be any traction. based at least on what i heard a number of weeks from somebody who absolutely knows what was going on. >> they jumped the stock 10%. >> that's why you have to be careful with these stories and that's why i sometimes don't want to do it because the market then gets the wrong message. because you see something like that, but as always let's see. there can always be more and we know valeant can change its mind. >> you do not pay 57 for the stock. it's moved from 53 to 57 overnight. >> valeant, they'd have to remain at least five times levered. they want to delever. they'd have to go back above it. it has a lot of pain points in it that don't seem likely or
that make it unlikely i think for valeant to pursue. but humana might happen. aetna seems to be the company. multiple parties interested. one of the parties cigna. could cigna ever really manage to get a shareholder vote for a deal given it would probably need one while it has anthem on its tail with aetna on its tail. aetna would not need a shareholder vote because it should issue less than 20% of its shares. we'll see whether we get something as soon as this weekend on this deal. >> are they going to send us that weekend e-mail again on saturday? i mean, i got it on saturday. i was gardening. i got the e-mail. so now i have to make calls.
come on. think of us. >> it's going to rain all weekend. >> no it isn't. why do you do that? >> it's a big country. some places will not get rain. >> where we live. >> california could use some of our rain. >> speaking of the insurers a lot of them seeing upgrades today. >> look, the hospitals, i think we'll read about more consolidation in the hospitals. this has more paying patients. hca has been a remarkable story, perhaps the best private equity to public maybe even better than dollar general, and remember how dicey hca was. they've been a fantastic performer. >> a heck of a move yesterday on the ruling. >> there were people short to stocks betting that the jeffchief justice was a capitalist.
he was one of the smartest guys in law school. everyone knew this guy was just brilliant and he's his own man and every time you see one of these decisions, people keep thinking he's going to go republican. he is so much more thoughtful than that. when are they going to wake up? this guy is one of the greatest justices ever in the supreme court. he's brilliant. >> that's an early call don't you think? >> my friends who knew him were always intimidated by him, top guys. >> well he did send it back to the legislative branch to the extebt that he seems to be sticking it out in what he said in his terms. >> real quickly, back to m&a land. ete down again sharply yesterday. got them up a tiny bit but if they don't get moving in the right direction, they're done for. the overall energy complex has been under some pressure lately despite what we believe is
coming potential consolidation. >> imminent. >> mlps we don't want to completely say they're -- they're not identical. >> not at all. >> and it's the companies that get stuff out of the ground and those who move it around. >> for are the natural gas companies identical. it is oil they want. there's no market for butane or propane. no market for natural gas. they can't fit them. they were burning the stuff off. they have to flair it. but that's anti-environmental. don't buy natural gas. a lot of people are saying it's chesapeake. it's going to get the bid, and i just want them to be careful. that's not the calls as i understand. >> finally some retail is working. este lauder close to a record high. >> lot of people are telling me stay focussed on coach. there's a turn.
i'm not getting that. i think restoration harbor is having a good quarter. way fair doing well. william sonoma doing well. nike had a west coast port problem. they said we're fine. the nike call. >> the dow is up 48 and about half of that is nike alone. let's goat bobet to bob on the floor. >> we had a nice open. it was mixed going in but we had a move to the up side in the futures a little while ago and that was the same situation in europe. europe was sort of on the mixed side about an hour and a half ago and it all rose on talk that maybe there was money, they could find money to extend the bailout for greece. no deal but talk about that moved the indices. the big talk was in china where there was a drop in the shanghai and shenzhen. the shanghai index is about 20% off the multiyear high but you have to understand it in the context of the cha zi rally.
the shanghai we're still up, there was a 60% rally from march to june and it's still up 30% for the year. the shenzhen is up. morgan stanley has a thoughtful piece on the china a shares. this is probably not a dip to buy, the big comment. they think the probabilities that we're at the top of the cycle for shanghai and shenzhen. they had four issues al of which we've talked about on this show. increased supply two earnings and a slowing economy, three, high valuations and high margin debt. all of this is well known. what would change things? an improving economy but they floated one idea. china should institute 401 k programs. they don't had one tax advantaged in the stock market. but that'll take a long time.
not clear if this move down we've seen are over yet. let's talk about ipos. talk about the one behind me in a minute. a mixed day for ipos again. serious therapeutics priced above. that's the finer. xactly an below and management company. that one below. appfolio low end. and alarm.com priced in the middle of the range. that's a mixed score card. eight yesterday, two winners. two didn't make it and four disappointments. they're really pushing back. behind me is xactly. they priced 7 million shares at $8. the price talk was 10 to $12. a little bit of pricing blow the range -- below the range. for nike you guys made some comments on it. the only way to understand this
is just look at the revenues. these are unbelievable numbers. north america up 14%. a typical company in the retail space struggled to get 2 to 4% revenue gains. double digit is spectacular. nike up 11% so far this year. it's over $100 again. this stock does 2 to 1. it went from 50 to 100 even after the split. >> at the close, a lot of stock moving around. it will be one of the biggest volume days of the year. we'll be covering that toward the close. >> bob, thank you. we're keeping a close eye on rates. >> there's some big moves going on in rates. and many just say it doesn't make sense. it's like a onjohn roberts, a big move but hard to defend but it isn't. let's look at a 24-hour chart of
bunds. that day started a rather move large to the up side moving through into the 90s. let's look at an april 1st start to bund. it's turned the chart. lookings as though it's extending the move. if you look at a june 1st ten-year minus bunds what you don't see is the spread relationship changing. that's a month to date. it's pretty much hovering around 150. let's put all the pieces together. if we're linked at the hip with the bunds, the difference between the two seem to be rather constant and the bund yields seem to move first, it's pretty easy to understand that they are playing the tune that our pressuretreasury market is marching to. you can see that it moved way after the rates moves as well. you really can't tie foreign exchange to this. look at the effects. several basis points of the high yield close of the year.
open the chart up year to date you can see it on the left side. if you open up the chart year date a 30-year bond they were toying with the highest yields of the year. they have moderated a bit. when we use highest yields of the year it's always based on the closed. one of the most important closes, friday closes. going to be a big day. back to you. >> see you soon. when we come back the number of uber cars in new york city could be changing soon at least if two city councilmembers have their way. meanwhile, sara eisen has an exclusive with the head of nestle. >> good morning. i'm here at consumer group forum. it's a pretty elite industry conference will weather food and household product companies are here to present. they are psiseeing a different
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still a number of cases pending including one on same sex marriage. we are live outside the supreme court again. >> reporter: five cases and counts and on same sex marriage at the top of the list. do they say it will fwk law of the land or do they still give some state the options to ban those marriages? a second issue the court has to consider, what do they do about marriages in other state? should they be recognized. another one, at issue here did
the epa unreasonably not consider the cost of regulations it was promulgated aimed at reducing greenhouse gases. there's an important capital punishment case here involving the drugs used in terms of lethal injections. the state of arizona is awaiting a redistricting plan ruling. the legislature claiming it usurps the power of that body in that issue and one other case basically involving gun laws and sentences. we are minutes away from today's decisions and we'll see if we have the kind of history made that we had yesterday. >> i hope the interns are stretching. we'll see you in a few minutes perhaps. we'll get to stop trading with jim in a moment. more than half of the rise in the dow is nike. we'll be right back.
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time for cramer and stop trading. >> jeffreys has a positive read through on this micron. it's a tough time for them but it remind us why they have to buy altera. you can't just be pc related. really good note out of ubc about horizon pharma. i've been saying this is the sun of allergan. i think they do more research. watch that stock. it has troubled. it could go up another 10% like that. >> what do they do? >> they buy discarded brands and make much more of them. they have bought an orphan drug company. biopharma which i told you was the incredible migraine drug, up a couple of bucks. >> and that's after they sold stocks. >> that company is on fire. they cannot be independent for too long. someone has to buy alder bio.
>> you think something good happens in brussels tomorrow? >> i think we're going to start hearing they want to take down the debt. the chinese will fund the transition. >> you don't think we're going to get a deal this weekend? >> no. the greeks are hardening their position. they want the germans to give them a marshal plan. the germans want what the allies gave the germans at versailles, and the greeks want what secretary marshal gave the germans after world war ii. it's so ironic that i hope merkel sees the mall sifallacy of history. how did that work out in history? >> not well. >> merkel today history and get it and stop being herbert hoover in a pantsuit. >> it's going to be a tense weekend. >> it is except for the sixer fans.
i don't think the knicks had to draft that guy. i think he would have come along. >> it was the only name that any knicks fan would imagine they hopefully wouldn't pick and they did. >> a lot of people are hoping they surprise new york. it's a tough place to walk into. >> maybe in three years he'll be doing like 8 points and three rebounds, we can hope. >> move to brooklyn and dot my team. >> your team is no better. >> what's on mad tonight? >> stunned by him. we're going to speak to jim white hurs and frank calderoni. and then a victory lap for the finish line he did come on the last time. it was a disappointing quarter. he's back. victory lap time. finish line goes higher. everyone, have a great weekend. >> i have to go. i have to take a call. >> every time i go he has a
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welcome back to "squawk on the street." i'm carl quintanilla along with david faber. sara eisen is at the global summit in new york. has some interviews coming up. more from sara in just a moment but first we're watching things at the supreme court. one decision could legalize same sex marriage. we'll bring you the head lines as soon as we get them. s&p with a six-point gain. good numbers out of nike. not good numbers out of micron. the news is anything out of greece and china sellingover night. >> a big gain in consumer
sentiment. remember, the bid june read came in at 94.6. the final read 96.1. how does that stack up? we all know? january we had the highest read back to 2004 at 98.1. if you pretend that didn't exist, this would be one of the strongest ones since 2007. solid read. expectations didn't change much. the one-year is 2 .7. five to ten-year is 2.6. the high >> thanks very much. three trading days left in the first half. stocks on the rise this morning following two straight sessions of losses but the watch is on as greek negotiations come down to critical meeting tomorrow. they have been given a monday deadline to break an impasse in
debt talks with creditors. we want -- hampton, let's get to you first in front of the supreme court, i think we have a ruling on same sex marriage. >> i'm going to go right to the key line here. the 14th amendment requires a state to license a marriage between two people of the same sex and to recognize a marriage between two people of the same sex when their marriage was lawfully performed out of state. that would same to me to indicate that the court has ruled that same sex marriage will be the law of the land going forward. the history of marriage between two persons of the opposite six begins with these two cases. the 14th amendment requires the
state to license marriage between two people of the same sex. it is, again, i'm getting more into this but the headline is same sex marriage will be the law of the land. and, again i want to get more into the opinion here. stay with me. >> well one thing is for sure hampton, everyone is doing what you are doing right now, and that is trying to delve into the decision. >> yeah. i did give you the key -- go ahead. >> it does appear here the question this morning would have been do states have to recognize or do they have to allow? it does look like they are going to have to allow marriages to be done in their own state. is that what you're seeing? >> reporter: yes, and i'm finding to find the companion question of what is a question of marriages performed in other states? do they have to be recognized across state lines?
again, on the principle decision delivered as expected by the justice, the right of same sex couples to marry is also drived from the 14th amendment guarantee of equal protection they are connected in a profound way. the court has acknowledged the interlocking nature of these safeguards in the legal treatment of gays and less bee yens. the liberty of the person and under due process and equal protection clause of the 14th amendment, couples of the same sex may not be deprived of the life of that liberty again from the majority opinion. >> a moment us decision. >> this sound sweeping. thank you for that. i see pete williams on nbc calling it a total victory for advocates of same sex marriage. interesting.
kennedy we knew was going to be critical in this decision. the roberts accidentdescent is something to note as well. join us new york times columnist. this is history. >> this is amazing. i can't believe -- i mean thrilled to be sitting here when this great moment comes but i think, first of all, it enshrines kennedy in a history role whether you agree or disagree. secondly, what i think is amazing from what i've just heard is that they found it an equal protection right. that i want to read the whole opinion but that is a very sweeping ruling that not only would affect marriage but every other right that is conferred by society. for example, discrimination in the workplace. i mean every claim that, you know that other disadvantaged groups have brought can now be
brought by gays and lesbians. the it goes beyond the majorrriage issue. >> four dissents in this one. in a week where the confederate flag became a debate in this country, this is going to spark more debate despite the final decision. >> this is a free country, and there ought to be debate. i think it's interesting that roberts joined the minority on this ruling. he was excoriated for his ruling in the health care issue yesterday, and i was thinking then i said yell that's not a radical opinion nature that was a fairly conservative opinion and one that was fairly obvious. i never thought that would not prevail but i thought if he find an equal protection right for gays and lesbians that would be a real departure from his state of philosophy. so i'm not that surprised he
decided to stay in the minority. >> kennedy always thought to be the key vote. let's get back to hampton with a little more analysis on that decision which you've been reading through. >> reporter: one final piece in terms of what a success this is with the advocates. this deals with marriages out of state. the 14th amendment requires states to acknowledge marriagings out of state. they may recognize -- performed by another state on the ground of its same sex character. that was part two. again, a total victory across the board for major equality advocates. back to you. >> jim, policy fallout here? >> law of the land. >> private sector public
policy. >> i think there's going to be a lot of fallout. everybody is going to have to examine their policies to make sure that gays and lesbians are given the same rights and same protections that other classified groups got. i think exxon mobile has thrown in the towel and given the same benefits to same sex companies but if others are hold outs they'll have to re-examine that. >> the respon don't's argument that allowing same sex couples to wed will harm marriage as a constitution rests on a counter intuitive view of marriage and parenthood. the first amendment adheres that those in their religion -- >> right. >> look i think -- we've always had a very diverse society. and the constitution had been
there and has done an amazing job and the court has done an amazing job of protecting people and keeping people from being oh oppressed. you have to balance these and weigh these. i think this is another important step forward in making sure that that balance is maintained in a healthy way. >> a great deal has happened in a relatively short amount of time on this particular issue. i think you could go back even five years and tell people this would be the law of the land and they would have looked at you in complete shock. >> i agree with you. i think it's astounding. it wasn't that long ago that i think gay rights advocates were looking at the issues of the right to serve in the military the right not to be discriminated against in the workplace and the right to mary. and of those three things i would have said the workplace maybe would come in my life. maybe the military.
marriage? i thought never, and here we have the marriage now. the military we have. the workplace is still an issue but i think with this opinion, that is going to be a difficult thing to see, and the states are probably going to have bring these laws into compliance as well. i think we'll see challenges soon. >> the supreme court already weighed in when david boiz got together. an interesting argument against that was a momentous decision. >> kennedy's language in that case lit a park of optimism for people waiting for this day. let's face it. this is the big one. this is huge. >> and i'm thinking back. i remember a couple of years ago in new york that was momentous. it's happened piecemeal in various states. >> i think one reason the court could get itself to this position is a number of states have had gay marriage for a number of years.
has anything changed? it seems to have made the society a little bit more stable. the world didn't shift in its axis because gay people were get getting married and nonguy families, they were the least bit affected. >> the journal did polling on this earlier in the week, and in jury room, general, it's supported. >> and it's generational the journal poll numbers for the younger people are off the chart in favor of it. when i talk to them i have students and nephews and nieces i bring the issue up with them and they say this is not an issue. they have moved onto other things. >> but you've done a lot of reporting on corporate america, in particular, i remember the story you did on ceos that were public or not about their sexuality and you mentioned they were playing catchup. is that your sense in terms of
corporate network? there have been some companies that have been ahead of 24this, a hand full. >> a few. the corporate world has been very cautious about this, and -- but let's face it. they were cautious on the race issue too. they're not traditionally going to be boldly out there on a civil rights issue. that's surprising me because they should be concerned about the bottom line and you would think that would be race and gender neutral and sexual orientation neutral. but look what happened with civil rights. once it's all established, they got really out in front on it and have done some great work. i think the same thing is going to happen with gays and lesbians. >> the indiana law and the likes of tim cook was fairly significant. >> the abortion ruling was controversial.
my gut feeling is this is not a prolonged controversy. partly because of the younger generation. raising their own children this is just not going to be an issue and i have to say from my perspective, it's a better world because of it. >> social media beginning to respond. hillary clinton just tweeted her support for the decision saying proud to celebrate a victory for marriage equality and the courage and determination of lgbt americans that made it possible. the president just tweeted the same saying today is a big step in our march toward equallity. gay and lesbian cup cans now have a right to marry like anyone else. >> and in an opinion they write many people will rejoice in this decision and begrudge none their celebration. contrast to his descent
yesterday which was scathing. >> i have to say he has a way with words. >> yes, he does. i don't always agree with him, but he expresses himself clearly eni'll and i'll look forward to reading his whole opinion. >> reporter: we understand that chief justice is reading his opinion from the bench he wrote the principle dissent. this is from john roberts. this court is not a legislature. whether same sex marriage is a good idea should be of no concern to us. under the constitution judges have the power to say what the law is not what it should be. the people who ratified the constitution authorized courts to exercise neither force for will but merely judgment. although the policy arguments for extending marriage to same sex couples may be compelling, the legal elements for requiring it are not. a key excerpt from the
descenting opinion of chief justice john roberts. >> thank you. also in washington on k street watching some of the response. >> reporter: good morning. we're standing on k street in downtown washington d.c. talking to passers by. everybody got the news on their hand held and reaction here overwhelmingly positive. haven't heard one negative review of the decision so far. talking to the people coming by. d.c. a major east coast metropolitan. not a place you expect opposition but if you look at the trend line what's stunning about the polling of gay marriage going back to 1996 is it has steadily improved for the pro gay marriage side. the lines crossed in about 2010 when the approved gay marriage overwhelmed the disapproved and it's been going sense then.
the nation here is strongly on the side of gay marriage. everybody we've talked to is on the side of the supreme court as well. >> the hash tag love wins is starting to become a thing. one more line here from the majority decision. >> written by kennedy, by the way which is interesting to note. >> with respect to aasserted basis for excludeing same sex couples, it's appropriate observe these involve the rights of to consenting adults whose marriage would cause to problems to themselves. >> i thought the quotations from the robert's dissent. you could have almost cut and pasted that language out of his health care ruling. the thing that the court is not a legislature, and that clearly is where he's going to come down. it's interesting that that can end up being either supporting
conservative or liberals. i don't think it's surprising that he supported the health care law even though he may personally disagree with it. i have no idea. here he says we are unconcerned with whether it's a good thing or not. it's simply not our place to make this rulging. arguing for judicial constraint. i think to say that we don't think -- consider whether it's good or bad. in an ideal world, that's possible. it's hard for me to believe that they didn't think about it. but you have to hand it to him. he's been consistent. >> from kennedy, no union is more profound than marriage. he goes onto say it would misunderstood these men and women to say they disrespect the idea of marriage nature their plea is they respect it so deeply that they seek to find its fulfillment for themselves. their hope is not to be
condemned to live in loneliness excluded from this institution. they ask for equal dignity in the eyes of the law. the constitution grants them that right. sweeping language. >> sweeping language waj. elle kwebt oquent language. i was at my nephew's wedding in indiana over the weekend. you listen to the minister speak to the bride and the groom about the importance of marriage and what it means. kennedy is doing the same things from the highest court in the land. maybe this is a good thing for all couples to think a little bit about. wait a minute. marriage is something really significant and profound. it's easy to forget that but it is something very profound ar aspirational and noble in human tradition and i think kennedy's words capture that. >> slow but steady progression of civil rights. i saw a tweet, loving versus
virginia which was very important in terms of racial equality equality, if you will, which still has a long way to go but we continue to move that way and the supreme court seems to eventually get there. >> i think that's an important people. many people contributed to getting to this point. the supreme court itself is a very conservative body. it has to be by its nature. it's not elected. it can't get too far out in front. everybody in this fight who kind of pushed the ball forward and got the polls to the point where there's a majority of support made it possible for this court to rule. no matter how much the logic of it makes sense, there hadn't done this without a ground swell of support. >> as someone said we can just call it marriage now. we haven't had a chance to talk about yesterday's decision. in terms of -- that health care
debate is doing to range on. >> that will rage on. first of all, i was not surprised. the only thing that surprised me is anyone was surprised. the idea that you interpret a statute the way the legislature intended it is so old. i that's the long-established tradition. the word state, i always thought that was a weak state. it can mean nation state, state. there is some ambiguity about that. the only surprise to me is it ever got to the supreme court in the first place. the other thing that surprised me was the health care stocks boomed yesterday on this. i thought really? that never even occurred to me. >> the hospital stocks in particular were up dramatically yesterday. and you would have expected -- i didn't realize that was much differentiation of an opinion. it could have gone against but --
>> i can only conclude there were a lot of investigatorors listening to the wrong people. i would never have bet this thing was going to fail over one word. definitely, i wasn't surprised. i think it's the right decision and i think roberts made the right call. i'm surprised the backlash has been so severe. but maybe they'll simmer down. >> we're hearing from corporate america. united airlines. today's history ruling is a long awaited victory. we applaud the supreme court affording same sex couples the respect and dignity they deserve under the law. the supreme court ruling on same sex marriage, it is now the law of the land. we'll have more on this later on this morning. dow is up almost 100 points. we're back in just a minute.
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the decision five four. the court is done for the day. there was one other decision involving essentially gun laws going forward. i don't quite have that just yet but anyway we are done for the day. we will be back here on monday to close out this term with three cases left. back to you. >> hampton pearson doing the work today. our thanks to you. for more on same-sex marriage let's bring in a democratic congress member. good morning to you. are you there? we might have lost him, i guess. not surprising given the crossing wins in this breaking news environment. we are going to hear from the president at 11:00 p.m. eastern
time -- 11:00 a.m. eastern time. this time on his favor on a week where he got fast track authority. it's been a remarkable week for the white house. >> i'm sure there's going to be a lot of celebrating there half some rough periods. again, i just think that the history nape of this is tremendous. getting a chance to look at the opinion itself and it's so clear that it is embracing the whole sweep of the equal protection clause the 14th amendment for the right to marry. it goes beyond the issue of marriage. it would have been historyic. it will be an effect across other laws as well. >> the president was not in favor of same-sex marriage in 20008, not that long ago. it was his vice president to seemed to voice the issue. >> forced the issue but it's where you get in the end.
i think that's what matters. he hadn't been alone in trying to get his head around this issue and initially having maybe some reservation. that's what's been happening. the speed with which it's happen second-degree one happen second-degree one of the remarkable things. >> congressman ma roney, are you there? >> yes, i am. >> how can do you put today's decision into context? >> it's historic and emotional. for me, personally, it means that my partner and i have been who have been together for 23 years and married for one year and raising three children together, for us it means our family is no longer treated less than or unequal in the eyes of our own country's laws and i think because this is cnbc we should also point out the business community way ahead of
our political institutions for years recognizing that more america to be great, we have to -- we don't have people to waste, and we have to let everybody play. and the business community led to way and continues to in many states where we see backlash and discrimination. it's an emotional day for those of us personally affected by it. >> that's a good point on corporate america. it hasn't been easy in some states we've seen that in indiana. why do you think companies stuck their neck out? >> because what matters in a free economy is talent and merit and rewarding excellence. and anything that impedes human contribution gets in the way. it creates inefficiency in a free market economy. the free market gets credit for demanding that the recruiting be unfettered and we allow people to have access to the higher levels if they have the talent
to get there. part of what makes this a great country is we believe we all get to merit on our merits and that's what our political institutions are still catching up to. look what happened in indiana and arkansas. really, it was the business community that said this is nuts to start going backwards and start discriminating people on the basis of sexual orientation. we have people who allow people to be fired on this basis, so there's still work to do. >> i agree with it. free market i agree with those comments. people should be hired, fired, promoted on their merits. i would just modify the comments to say some businesses were in the forefront. i remember when disney first let gay people have their meetings in disney world. there were boycott threats. on the other hand, as i've said here before it was only within
the last year that we had an openly gay ceo of a morfortun 500 company. we have a hand full of openly gay ceos at nonfortune 500 companies. it took a long time for them to identify themselves as gay. at the upper level of corporate america, on boards no. it's not something they have really pushed or championed to any great extent but i think with that ruling now, the tide will change and i think the remaining barriers will drop fast. >> mike huckabee is out. >> i aglee with all that. my point is that if you look and compare where the private sector is to the public sector on this and look at who wants to do recruiting at the best universities in the country and the fact that they'd be shut out
if they didn't have policies e lined with equality and equal access. i just think that the public sector is to far behind in what's happening in the environment. in terms of sports teams, businesses, our policies need to catch up to the country and what is exciting today is that the court is ruling fundament equality in the founding documents in a way that all americans should be proud of. ultimately, this is not even about lgbt families like mine. this is about america. it's about whether we live in a country where we are all free and equal under the law and it's a great day for those of us to believe we don't have people to waste in this country. that has profound impacts. we will continue to attract the greatest talcent. >> congressman, thank you for
your time. >> thank you so much. >> sawn patrick maloney of new york. i'll tell you who's also celebrating today? d.j.s, wedding planners, somebody wrote on twitter, divorce lawyers. i think it's a $50 billion business. >> divorce? wedding planning. >> in many states activity legal but now it's the law of the land. >> the economic consequences, this is a blessing for the states that weren't permitting it. i kept hearing talking to business people that recruiting talented people into states that did not allow guy marriage was becoming increasingly different you get kids coming out of stanford, they didn't want to move to a place where people were being discriminated.
texas, austin a big technology center. the supreme court has given them a gift nature they are now going to find it easier to recruit people coming out of college. >> thanks for your time. what a great to be here. >> it's a great day to be here. dow hanging in up about 100 points. a lot more coverage of the decision and the market in a moment. it's part adrenaline and part adventure. it's part geek and part chic. it's part relaxation and part exhilaration. it's part sports car and part suv. and the best part? the 2015 gla. it's 100% mercedes-benz.
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good morning, everyone. here yours cnbc news update. terrorism overseas. air products says all of the employees have been accounted for and evacuated following an attack and explosion at the gas factory in france that left one man decapitated and several injured. an anti-terrorism prosecutor is investigating multiple people now in custody. a pair of gunmen killed at least 27 people on a beach in tunisia. security forces killing one of the attackers. the other fled the scene. iraq releasing video showing air strikes in the northern and western part of the country. and u.s. rock singer courtney love caught up in the violent protests against uber yesterday. she wrote on her twitter and
account saying her car was ambushed and destroyed. that is your update this hour. back to "squawk on the street." >> just a few days left in q 2 and the first half markets mixed here. dow is up a half percent. nike good for 30% of that. we have a chief equity strategist with us. good to see you. >> and you. >> we don't know the outcome on that decision on greece but also the third quarter tends to be a little treacherous. what's your game plan in. >> a lot of that will depend on earnings. my guess if you look at the economic numbers over the last six weeks, we've seen improvement from the consumer. better job numbers, better
retail sales, better housing numbers, the confidence number this morning. i think the economy is picking up from where it was and we have a good shot at during the third quarter releasing a 3% gdp for the second quarter and that should lead to good earnings on the upside compared to the first quarter related to falling energy and the rising dollar. >> all of which could result to a raise in rates. if that happens, for those who believe the bull market is influenced by the -- >> if those people are right, it certainly will. my guess is they're not right. not that the lower rates on the part of the fed for a long period of time haven't helped. they certainly have. but as you know earnings have exploded as well. there's a real underlying
improvement. those earnings absent the fed's help have to continue to improve. my view is is a necessary condition for a decent second half equity market is an improvement in the earnings environment, and i think we get it from the consumer. >> bob, do you chase things that tend to work well? do you follow the financials into a rising rate environment or do you take a gamble on the transports which haven't behaved like a growing economy would suggest? >> i lean to sticking with the financials. they're working. they've been wonderful stocks really since the october of last year's low. i would also stick with those companies that can get unit growth and don't require pricing power that takes you to health care parts of technology. the deeper cyclical side of the market which does include transports and energy and materials, without pricing power, i think they'll continue to lag. >> what about the dollar bob?
a stronger economy, higher rates, just obviously not in sync with the rest of the world, perhaps a stronger dollar yet again. how does that impact earnings in your opinion and do you stay away with these with more international expo insure. >> my portfolios are still heavily domestically oriented for the reason you said. we have a run on the dollar and a pause for the last few months. while i think we see more dollar strength, especially against the euro, i'm not sure it's tomorrow morning that that happens, but i would still be under weight the multinationals. slower growth overseas and the rising currency why not remain domestic? >> yeah. you make a good point about the consumer, which does appear to be doing better and the retail sales numbers we're getting but a lot of it will pivot around what jobs continue to do right? >> absolutely. a jobs and wages. >> and are you expecting an acceleration in the back half?
>> look if we can continue the jobs numbers that is the unit growth, the new jobs and the initial unemployment claims at recent numbers, i think we'll be just fine. that's an economy that's growing faster than trend. the delta, i think in the second half, carl comes with wages. we start to see some increases. the employment cost index has begun to move up a bit. i think we'll get some more enough to give the consumer a little more confidence a few more dollars to spend and at least initially, not enough to create pressure on corporate march gins. margins. we could have a great quarter. >> good weekend. we'll see you soon. in the meantime nike shares on the rise after the company crushed earnings expectations. strong product demand showing no signs of abating. what is continuing to drive
nike's competitive advantage? we have a retail analyst janing us this morning. >> thanks for having me. >> we had discussion this morning. we're going into the quarter worrying about the dollar as we did last quarter. here's a company that flies in the face after owl of those expectations? how do they do it? >> they continue to impress. the beat was really driven buy top line margins. they continue to drive innovation which is driving newness and they're also growing the market and this is allowing them to raise prices and drive the top line in margins. >> cramer was asked this morning if he could recommend buying and he said the time to buy it has past. i think our target is $109. too rich for your blood? >> yeah. we have a market performer rate on nike. i think this is priced into the stock. it's trading about 23 times forward year earnings. it's above the 10-year arch. we would rather we like under
armor instead. it's more expensive. trades at 59 times. you're also getting what we see as at least five years if not more of high 20 low 30% top line growth out of them. >> you talk about the price of the stock. what about the price of the sneakers? can they continue to drive price or will they reach a point where consumers say no more? >> the consumer right now continues to accept it. and i think as long as nike can continue to add new innovation to get the consumer to pay more i think skurm will continue to accept it. >> you make the point, you write there are concerns that under armor will start to take significant market share. we've seen what they've done to the likes of adidas and, for instance in that number two and number three space. how far do they have to travel to make a dent out of nike's share? >> right now i really think that both nike and under armor can continue to perform well. the market, a active wear market
is growing. that helps out, and then you have other weaker players struggling such as adidas and puma and reebok. i think that under armor can continue to seek share from the weaker players for the time being. >> we've talked about nike's trouble in the past with getting golf going again. what is the core of the engine that's working? sitis it women? >> basketball continues to rise. and then also women's is working very well for them. it was up 20% in the quarter. it was over 20 % of the total. their goal is to get to $7 billion by 2017 and i think they're on that trek. >> sort of explains lulu which is awfully close to another all
time high today. thanks for your time. >> thanks. >> up next the rare exclusive interview with the ceo of nestle. find out how the largest food company in the world dealing with the trend of natural and organic. plus, what he thinks about the demand from the middle class. "squawk on the street" coming right back. what if there were only one kind of dog? then it would be easy to know everything about that one breed. but in fact, there are over three hundred breeds of dogs. because no one can be an expert in every one... an app powered by ibm watson will help vets tap specialized knowledge in the cloud for every breed... and whatever else walks, flies or slithers through the door. ibm watson is working to make medicine smarter every day.
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consumer goods mor umforum in new york city. we're here with the ceo from nestle. he's also the co-chair of the consumer goods forum. it's good to see you. welcome to town. >> it's a pleasure. >> in looking at good companies, it's a tough period whether you're look at nestle general mills, sales growth is hard to come buy. why is that the case right now in. >> i wouldn't say this is new. we are part of a society and in general the economy is not growing so nicely and we are part of that. i see opportunities. we have been growing through the crisis every year and that is what matters. >> there's also the shift with the consumer. you have the economics on one hand and the change in the consumer going for healthier food. you're taking the artificial dye out of butter finger. >> there's somewhere 'a
reconnecting on certain new trends. and the consumer has changed what he values. if you have healthy diet but what is natural, whether it's gluten-free, there's new concepts coming up and we have tloink and connect with these trends. it's not new all of a sudden. >> do you aim to like so many other food companies and restaurant companies, take out artificials flavors and ingredients? >> i think we have been one of the first companies to say that that's our commitment. we have policies in reducing sugar, trans-fat so that's an ongoing thing but what we see is an acceleration, they call it the millennials. there's no mystery if you think about the natural, artisanal. >> so many of your products
from the frozen aisle to the snacking aisle, butterfinger kit-kat, how do you do it with these brands? >> the brands have the argument. we have to bring them over connect with the qualities that are playing into the new trend and reformulating working on the products communicating about them cleaning up labels and that's what we have communicated by saying we take out colorants and artificial flavors and all that we have done that also in europe. it's an ongoing process connecting. what woo doe see is an acceleration that's where you may feel a little disconnect in an ambience where you have this growth. go what's going to be the pricing, do you have to raise prices for consumers? >> we're not in the pricing vaus, we are in the value creation business. we're going to create value. that's meaningful we're going
to build in more arguments. >> global inflation or global deflation. which is the bigger threat right now? >> look. depends on the region. europe went to some deflation. ploois prices went down linked with cost. >> i do believe there's going to be that's what we play into. >> china has been tough for you lately. you also see that as the big growth opportunity. how bad is the economy environment in china root now in. >> 1.3 billion consumers working for growth. we had a resetting. we saw easily spoiled with huge double-digit growth figures. these economies when they continue double-digit growth. heats up the engine. somewhere they have to reset the social fabric has to be constructed and that takes more time. but definitely there is so many new opportunities there. we are there enjoying it. it's not always easy.
but that's how things are. >> we were talking about the brand portfolio. we've seen a lot of changes in this environment. kraft and heinz getting together it's a 3g world in the consumer staples business. are you looking to add brands or divest brands at this point? >> it's not a 3g world, 3g is part of the world. we're always churning and improving our brands. we do it through our portfolio management. >> you got rid of jenny craig and power bar. >> for example. we have certain ways to judge our criteria. it has to fit for the nutrition and health and wellness complement. so it has to be strategic. it has to make business sense. it has to be categories where we can win. where we have research and development that can add value. and that's these criteria are changing. >> dynamic. >> jim cramer wants to know how you feel about buying white wave? >> i feel nothing.
>> no but is that an interesting category to you? this sort of alternative milk space? >> we have many brands in that vein already, in our portfolio. it's not something that i would say no way. but we have built quite a bit of those arguments in our portfolio. >> i mentioned 3g that's a cost-cutting push driving pricing in the food industry. do you feel you're doing enough in the cost-cutting side? >> internally i'm known as never happy. we have a process called necessarily continuing excellence, we have been permanently going after waste in our supply chain. and being more effective and more efficient. and that's the vein we want to walk in the future. >> when it comes to the economics. the tough economic environment. europe has come back a little bit. do they risk going back down whatever happens with greece another uncertain weekend and another deadline, is that a risk
for the european economy? >> it creates uncertainty and instability. never an environment that you flourish in. mind you, there again necessarily has grown in europe every year in spite of the crisis. think that has to do with innovation we have new platforms, our pet care business has done very well. new products and aligning our operations there. >> i think for us to find opportunities. >> how big of a headache is foreign exchange for you. i think it's obviously an issue. we're seeing it in the results, especially in switzerland, we saw the biggest central bank move of the year. >> in general we have a national hedge. we produce normally locally. 95% of our products are produced locally. now we are based in switzerland. we consolidate the swiss franc, the swiss franc is strong. and so that's not new. you may refer to the national
bank decision at the beginning of the year. but the euro is 1.7 swiss francs a few year ago. it was down to 1.. we knew that the swiss firm was -- >> you did get negative yields on necessarily bonds. how about that? >> it's a little bit -- gives you like a story. it shows quite underlying things that the weather is coping with. >> we do have our headquarters in the swiss franc. in switzerland and swiss franc. we have r&d that is two-thirds in the swiss franc. mind you that makes a little impact, yes, but for us to handle that. >> we've got to go it's good to catch up with you, paul bulke the ceo of necessarily. david faber, the world's biggest food company. >> yes indeed. don't hear from them too often. sarah eisen. president obama set to make a statement on the supreme court's
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court decision declaring that same-sex couple does have the right to marry anywhere in the united states. while we await the president on this historic day, we want to get to hampton pearson who has been manning our post outside the supreme court. hampton, good morning once again. >> hi, carl if anything the celebration of same-sex marriage as the law of the land has begun appropriately enough here on the steps of the supreme court. while you may be able to see behind me at the top of the steps a little more security presence especially plainclothes as well as uniform. what those folks are actually looking out on we've had a doubling of the crowds here. they have been in full rally mode in the hour or so since we had the landmark decision delivered. there was a moment here where a gay men's chorus gathered and sang the star-spangled banner. all of that on this historic day. meantime, i do want to come back to a couple of pieces of the opinions on both sides of this. that really show the
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