Transcripts For CNBC Squawk On The Street 20240622

Low. Shake shack and tesla both getting slapped with downgrades. Star bucks raising prices but coffee addicts keep chucking. Well talk about why. First up it is the sign of a resilient u. S. Stock market. Eurozone officials are meeting today pushing for new reform proposes from the greek Prime Minister. Banks and stock markets remain closed. Pictures of people waiting outside the banks. Pensioners trying to withdraw some money. There is a sense, has tsipras built Political Capital post referendum in. I think that merkel is making a stand. Theres really good articles today about how merkel has emerged as being pretty much a dictator. And the wall street journal writing a story this morning about germanys rise in power over the last eight years. Its going to make it so it doesnt look good for tsipras. This dollar being strong earnings season starts tomorrow carl. Cut numbers, cut numbers, youre going to have to cut number for every international company. This is im very uncomfortable with this set up again. I leave. I come back. I still dont like the set up. Nothing has changed other than we figured out who is on the all star team. The set up is not good. The list of the companies with the biggest expected losses. Marathon, vetex, h r block. I happen to like h r block. They have a bigger quarter than others given tax time. The oil comparisons are going to be miserable. I think what people are going to do yesterday was biotechs day again. Between 2 00 and 4 00 the biotechs came back. Were in a deflationary environment. Copper down 0. 05 already and nothing has happened. What is continuing to happen is the chinese stock market is going down and i find myself more focussed on that than on whats going on in greece in part because of the move yesterday in oil and copper. Commodities, this idea that the chinese economy is going to take some sort of hit from the losses that people have suffered. Dont forget the stock market is up overall but they had this huge wave of entrance of new investigators who have gotten socked. Its something akin to what we saw back in the dot com boom. This happened in a matter of weeks, though. But there was the blow off, the 4,000 and 5,000 that happened right at the end and thats when a lot of people came in and they regret it. Theres an important analyst at the end of the journal story. Who did the china stories . It was brilliant. At the end, did you see who that was . Yes. The hairdresser. Yes. I did see that. Thats the shoe shine boy saying i need you to go buy. And out ipos that came in. And we discussed yesterday the different moves the Chinese Government has moved to try to stabilize things. The shanghai down. Shenzhen another 5. 3 decline. Down 40 from june. Maybe its Something Else thats pressuring copper and oil but thats got to be part of this. The lun, theres a lot of currencies, iron oar, gold. People are saying its not about whether iran is going to export more. Its commodities. Kmoitdcommodities club in collapse mode. The china market david, when you met with jack ma he talked about expanding into the United States. Ive watched this alibaba combination. It looks like its breaking down. Chinese consumer if they got caught up they were up to 1 million accounts a week. It wasnt just a small scale boom. Theres a lot of people who are caught. There are a lot of people who are caught. That said most of the savings in chiena is in banks, not in the stock market. But they had an incredible mini boom as we watched the stock market soar. But its something to keep a close on and its interesting to see how theyre grappling with it as they try to open up at the same time suffer the consequences perhaps, of opening up issue if you will, the margin requirements for example, and now theyre going back and forth and obviously theyre trying to undergrid the market from the government in terms of banks and finances and its notworking. This was the time when you were thinking maybe the chinese acceptable a lifeline to the greeks. Theyre busy trying to keep the stock market up. This is not jpmorgan. And the economy is not has strong as it has been. I use copper. The day rates for oil looking pretty good today, pretty strong. Theres a lot of cross currents but the strong dollar bothers me because tomorrow were not going to be talking about greece as much as well be talking about alcoa. Lets check in with jeff cut mother this morning. Hes in brussels. Good morning. Good morning to you, carl. In this building behind me the eurozone finance ministers have been in session for about two hours so far. Earlier as they were coming in i spoke to a couple of the key figures and lets just focus on the president of this finance ministers group. Hes the dutch finance minister but hes the one who draws this group together and i asked him about the markets, and the perception of volatility and is the robustness of the euro system at question because of the debate thats going on over whether greece will exit the eurozone. Lets just listen to what he told me. I think over the last weeks an months the euro group has been very nice in the stance and it means that we are prepared to do whatever it takes to strengthen the eurozone to keep it together and secondly that we cannot have an outcome in this process which damages our krelkt and that is also the pacic criteria for any package that we would agree to with the greeks. My interpretation of that is not that greece stays in the eurozone but essentially, like mr. The European Central Bank Governor told us before we will do whatever it takes to tamp down any instability of an orderly exit of greece if it comes to that. We understand the meeting is ongoing. Theyre talking about a fresh set of proposes. We saw the new greece finance minister turn up here. He didnt talk to the media. In the last half hour weve got an ipdndication from the commission that there will be a statement from the president of the euro group but at this stage, not a press conference. Draw your own conclusions from that. I would interpret that as maybe there will not be too much more progress on the poepzroposes that are being put out. We also have a leader summit coming up a little later on this morning to talk about whatever progress is made in the building behind me. And one question on optics as we watch all of this. Is it true theyre making repairs or somehow renovating the euro symbol where you are . Reporter well the euro symbol i think, were talking about the ecb in frankfort rather than the commission here in brussels and whats happened here, carl they moved into a much larger building because they took on a whole new slew of regulators after the financial crisis so what theyve done is moved out of the old building and i think theyre dismantling and taking away the euro sign from the old building. I have to say, it used to get quite a lot of abuse in its position. It was occasionally damaged by people throwing rocks at it who didnt really want to be part of the euro system. You know anticapitalists and so on and so forth. I think theyve just decided that before somebody sets light to it, theyll remove it from its Current Location and perhaps theyll reinstall it at the new ecb building in frankfort where it will be protected by security. Im not sure if it tells us too much about whether the euro continues to exist in its current form but its an interesting symbol for those who like to read into symbols. You got that right. Watching the discussions regarding greece. Unbelievable just i saw, your tweet was fantastic. These guys are just the germans are really under pressure. I think this is the beginning. I think they very much fear these other countries, a radical left wing government being elected in these other countries. Or far right wing too. Right. The germans really arent even allowed to have a right wing. Not in germany. I dont understand what youre saying. Well antiimmigrant. Im saying you could get a repudiation from the left if they give in too much to greece. Youll see leftist candidates win everywhere spain, and not ireland. In other words, im saying everyone says wont immediately spain come to the table and say we want better terms but they wont. Itll be a change of government. These current governments arent going to change the terms. Theyre completely hooked. Theyre addicted to the euro. So we have many years to deal with this . Well i mean as long as theres money in the banks. Yes. There were some we had, what do you have a stash of drachmas . If they go drachma, were going to greece. We could take the whole team. We could youd like that. Youd like to see them cut . I dont want to ever say that i say favor people doing badly but of course not. You want to buy more homes. My mexican homes get devalued by the moment. Thats a national tragedy. I dont mean to to be glib. My fatherinlaw was in argentina when it devalued. He said you saw people eating from garbage cans. I think there will be humanitarian aid to greece. Wouldnt it ironic if it came from the United States to tie over the greeks . No thank you. Well do anything with ukraine or iran. We have a problem with greece. Ukraine. Iran greece. Greece is a democracy. You might not like who they elect. Is there any day were not trying to get a deal done with iran. The country is internally vulnerable to any sweetness putin can offer down the road after that phone call yesterday . Im not a political guy. If they left the euro or stayed in the euro what we want is a decision, and we want it in 48 hours. In 48 hours the euro would go back up. We would not be faced with this tremendous number cutting thing when we get to earnings. And thats whats going to happen, and its not going to go well. You can talk about Constant Currency all you want. At a certain point people say no this is permanent. The dollar is staying strong. Cut number cut number. That starts tomorrow. The germans, big winner. They win no matter what. They win no matter what. Thats a rigged game. Thats what they call that. A rigged game. Merkel shes clemen sell. Im playing over. 1919 is playing over. History, it doesnt repeat. It rhymes. Ill take a look. Thank you. It comes from better terms from the germans, versailles. This is versailles in reverse. When we come back shake shack getting slapped this morning with a sell rating. Also ahead, carnival announcing its been granted u. S. Approval for travel to cuba. Well take another look at the futures this morning and watch the euro as well. A lot more squawk on the street live from post nine in just a moment. I take these out. To put in dr. Scholls active series insoles. They help reduce wear and tear on my legs, becuase they have triple zone protection. And reduce shock by 40 . So i feel like im ready to take on anything. Shake shack is falling in the premarket. Morgan stanley falling to equal weight. Shake shack still trading well above the january ipo price of 21 a share. Its down almost 6 in the premarkets. Theyre talking about margins out of pressure as they expand out of new york city. Bringing back crinkle cut fries costs money. This is a good analyst. Hes using a base case of 25. Does something that you never want to see. Its put a price earnings multiple on it. 325 times 25 earnings. Im putting that in the cult zone. And dont forget there is a lock up expiration at the end of the month. Hes got some figures here the trade out of a total of 37 million, 47 of the float is short. Thats how it spiked to 90. You read this and you feel like you know what this thing has been up on a short squeeze and can still go lower. Its a very tough read. It reads like you dont want to you feel like maybe i shouldnt go there. Maybe i should go to jack in the box. Weve talked about the valuation being crazy. More expensive than chipotle. Some enormous insane. Insane. For pointing this out in a Research Report is well we works at morgan stab stanley. Weve been saying this for months. Whats the impact of his Research Report . It will be felt for approximately i would argue differently, its probably over. I think he just peaked. Its done. Really . Yeah. Because weve stopped talking about it. Hated it at 90. At 60 we said too expensive. Did you see the disney upgrade from some guy . Now . Atlantic equities up to 150 the new target. Now . They like the franchise. Did you know star wars is coming out . They have some good franchises at disney we just discovered. Wow. Despicable them. Yeah. Thats a universal i like that. And i have to tell you, i love that series, and jer raszurassic world, on my mini vacation all people wanted to talk about is how they saw it, in cinemax or 3 d. Well get cramers mad dash and count down to the opening bell. A lot of other analysts we havent gotten to. A lot more when squawk on the street continues. Seems like weve hit a road block. That reminds me. Anyone have occasional constipation, diarrhea. Gas, bloating . Yes one Phillips Colon Health probiotic cap each day helps defend against occasional digestive issues. With three types of good bacteria. Live the regular life. Phillips. Seven out of ten Power Outages in the us are caused by weather. 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For all the confidence you need. Td ameritrade. Tech la. The less than seven minutes from the opening bell. Its tuesday. Youre back. Bigger than ever. You want to start with this potential deal. Initially people thought that this must have been friendly was horizon was up a couple of bucks. Every deal has been good and friendly. This is unfriendly. People feel that maybe this is a bridge too far for horizon. Ive had timothy wallberg many times. This will be accretive but no one wants to see hostile from anyone. This is a cross border, if you will given theyre an irish company. A great tax rate that will help them. Not easy to pull off. These are just many months. A quadruple thing in the trap peas. This one aint working. But it is worth 29. 25. The stock price is up. Well see where it goes. They say theyve been drying to engage since march. Is this a new pattern . Aetna goes down horizon goes down. The acquirer going down. Were you listening to my phone calls . No. I was picking tomatoes and zucchinis. I think thats important. Lets go to the other side. One of my favorites, fitbit baird comes out today with a piece which basically has done a huge survey of what people want. They want fitbit. They do not want the apple watch. They want the apple watch, okay but the fitbit theyre going crazy with. People want to upgrade fit. Its an eco system. The fit is going to have big numbers. I think they use a conservative margin number and they still have big numbers and theyre talking about a stock going much higher in the 50 price range. Apple watch, fitbit different crowd. Think eco system and im going to say it. Its got an eco system. People like to have things on their wrist that dont show anything. Heres the problem, david. Its really one of those things where people are going to say its short squeezed like shack. This is feeling short squeezes. Squeezish, and thats whats driving it right now and people are going to do a shack here. At this point, could it go to 50 . Yes, but understand that shorts are stramabling. We have the opening bell coming up right after this. My name is julia grinberg. I work in Energy Efficiency for pg e here in San Francisco. My job is to help my customers save money, save energy and save the environment. When it comes to renewable energy, pg e is absolutely committed to creating a clean energy future. One out of every four solar rooftops in america is in our service area. Its wonderful to work in the city where i live and help my neighbors and i feel like the work that i do reflects that every single day. Together, were building a better california. It took Tim Morehouse years to master the perfect lunge. But only one attempt to master depositing checks at chase atms. Technology designed for you. So you can easily master the way you bank. Youre watching squawk on the street live from the Financial Capital of the world. The opening bell in 60 seconds on a day where the eurozone finance ministers are once again meeting with greece. The germans reiterating no haircuts allowed, at least in our house. For a while the german bund was yielding 6. 666. That was a fun one. The more they talk the more the dollar goes higher. The more i dont like the setup and i think that this morning the Early Morning when the futures were soaring, who is that . Who is that bullish . I question their thinking. Meanwhile, warnings from the likes of amd. Samsung looking for a decline. People are talking about cell phone peaking but we keep getting different reports that thats not true. A lot of people are fretting now. This is on apple ive never seen so many people be so upset when the stock is going up when the rest of the stock is going down. How many negative stories can you have about the watch . Can you wait in the watch isnt rolled out. Its just a subtle launch. At the big board, tekla celebrating its recent opening. And on the right, a company focusing on cancer research. Sales are down since opening week. Third party data. When it starts being in the stores and people can take a look at it david, i love it. You do not love it. You dont. You dont love it. Admit it. You dont. I like i have a thing at night. And i love it. Yesterday i lost power. Yours . I just i dont know. No watch . Hes not wearing it after about a week. It tells time. His other one. Hes a me lenillennialmillennial. I forget to charge it. Theres a couple of issues. Im in an apple watch family. Everybody has done. Thats how we communicate. Im agent 99. Youre 8 6. I like barbara. Once again, were seeing the airlines enjoy this decline in oil. And the one you want to watch is delta. They, all the other Airlines Report the last week of july. They report in the middle of july. I think numbers have been cut and cut. It sells at nine times earnings. There are probably still some downgrades to come but that is the one that where the line is drawn in the sand that these stocks could sell at eight, seven, six times earnings. There is a very difficult american air merger of systems coming together for u. S. Airways. Theyre close. But youre still having to check in at one or the other if youre issued the ticket. Ive flown a lot of delta. To see these guys upgrade their planes. Sometimes you get on a plane and its like its 1975 still. I was in a plain in czech republican, and it was an old plane. Yes. Id rather be in the blade going to east hampton. Making the noise. Its like 7,000. What is that about. You said you dont like the setup, but the upgrades we mentioned the disney. Lulu, clm, tiffany, none of them . Tiffany is interesting because when tiffany put out the forecast, i thought it was extremely aggressive. And this morning bern seens piece says no and theyre doing it on new product. Silver jewelry. Is that a compliment to the improving consumer . I was worried about the stronger dollar but theyre saying this 500 and under product, they think its going to work. This was a very bullish, 20 times earnings. This was a bullish report. I dont want to get in his way. This one can go higher. I want to come back to the theme in oil prices for a moment. Weve had a significant drop. Yesterday the biggest drop weve seen since february. Were back in the low 50s and were not sitting here talking as we often did about the impact, the benefits to the consumer, where thats going to show up if it does. Weve seen so much of it go into savings given some of the data weve gotten. That said its got to be an issue in this market. We mentioned the airlines a moment ago but isnt there a broader, and then to energy where you and i expect deals. Im looking for deals. I think oil, were spending a lot of time on moneyoil tonight on mad money. I thought the oil would you were saying 60. I thought the oil could hold because i felt production was going to drop. I misjudged iran and the amount that they intend to pump which is very high. I think the china slow down is interesting but the rig count did jump a little bit. A lot of people felt the rig count, even though its been cut in half i was going with the boon pickens view. Thats that in the second half the oil is stronger and now i feel im kind of out there. And in your defense, you pointed out some time ago that the margin the ability of those who were trackfracking in this country to make more money was in place. Production has continues perhaps more strongly than people anticipated. Particularly in natural gas where there is unbelievable production. But oil, yes. Theyve lowered the break even dramatically dramatically, but i just there is a tremendous technical pressure on oil. Well see the builds tomorrow but i didnt i was i did not think that there would be such a belief that iran could flood the market with oil. I dont think they can. We havent done tesla. We should. This is Morgan Stanley cutting to a hold talking about the battery business being in their infancy, arguing that tesla will be a dominant player. They raised their target to 20 20 280. You thought was weird. You dont raise your price target. We talked about shake shake. The tesla, the numbers that hesenhes looking at for tesla. Hes talking about 20 going to 22 but its 2020 numbers. Theyre basing their numbers on 2020 . I think, thats a lot of vision. Thats too much vision. So i think that the stock has had a very big run. They were looking for a reason to take somebody off the table. Tesla doesnt trade on the numbers. Does not trade on the numbers. Pinnacle entertainment up sharply. Pnk, glpi has been after it for some time. Theyve increased the fixed Exchange Ratio for this prop koe. They want the Property Company of pinnacle. Thats a 54 increase to the previously announced ratio. They were up almost 8 up 7 now. They say this may be the last theyre disappointed by the rejection. Previously and this is a final effort to Reach Agreement on terms that will be attractive to both you and your shareholders. This revised proposal. Pinnacle wasnt that mentioned in delivering alpha last year as a stock to buy . Might have been. You seem to have a lot of fascination with verizon entering a bidding war for customers. Is this cash back . Have you seen that ad for verizon where the canadian geese are they go and migrate away from verizon. I tweeted it and now theres a u turn of the canadian geese for 300 if you come back john legere is not mincing words. Hes saying theres going to be even more defection if you follow john cramer twitter. John does most of his advertising for hi feed. Just kidding. These guys are at war. There is war. Did you see the tweet fight last week . My gosh. That was amazing. I missed it and then i saw it. I was like youve got to be kidding me. Theyre using curse words. It was great. And theyre scrappy. These are phone numbers. Theyre supposed to be boring and were not supposed to care about them. How can they be exciting . What is this . This has to stop. Dow is down 32 points as we have an eagle eye on the headlines regarding greece. Lets get to Mary Thompson on the floor. Reporter we continue to see an up tick in transportation stocks reflecting the weakness. We continue to see in oil prices utilities getting a bit as bond yields continue to move. The focus of todays trading greece china and oil. I want to start with western union. This company saying it is going to be opening the lines to the banks in greece. So people in 31 Different Countries can send money to their family members or friends in greece. The 60 euro limit will still apply. And the s p 500, the euro at a fiveweek low right now. How does that affect s p 500 companys . The median s p 500 company gets about a third of its revenue overseas. About 7 from yrp. Copper were watching. Yesterday coming close to a fivemonth low. It continues to extend the decline. We want to take a look at free port mac marin. Lets turn to the hong kong etf. Sell off there. There is concern of course given the governments stimulus that has been added and a number of shares being added. Were also watching the junk space. The reason for this is a sudden sell off in oil. Keep in mind a number of these junk Bond Companies are in the oil space so this is an area to watch given the pullback weve seen in oil prices. Were watching tech. Amd issuing a warn because of weak pc demand. Well see how that affects things. The sox, holding up. Its not holding up. I want to end with ge saying it will be taking a 16 billion after tax charge because of the sale of the ge finance assets. Sales happening a little bit faster then a expected in the charge as large as it is a little bit smaller than expected. The dow is off 44 points. Back to you, david. Thanks very much. I wanted to go back to a theme, if you watched the stock prices of acquiring companies lately in this incredibly robust m a market, you will say they have been down a bit lately. Thats something, at least, something of an outlier that in this market that weve seen given how often the acquiring stock price goes up. Is there a unifying theme here . Hard to say that there is but its worth mentioning. Take a look at centene. Look at the move down there. Health net lower multiple. It will bring a lower multiple for the Overall Company because the growth rate is lower but they believe its a deal thats necessary in terms of advancing and broadening their product port foalfolio portfolio. There had been thought that if humana stayed independent, it might make a bid but thats not happening. I mentioned aetna. You saw what happened yesterday in aetnas price. There was speculation for a potential deal for quite some time. The price tag for humana was perhaps higher than some people anticipated. Humana yesterday lowered the guidance for the year because of cms and what happened with medicare. I think its medicare right . But the stock price was down. And people wondering well what is that going to mean overall at this point . Antitrust is the key consideration when it comes to aetna and humana and the time its going to take for this deal to actually get done. Theres another reason why perhaps aetna shares are not doing particularly well but even charter. It hasnt been down very much but remember the run up with the potential deal for time warner. Now you can see that stock hasnt done well since the announcement of the time warner deal. And avago, that incredible acquiring machine announces a deal to acquire broad come. They are down since that deal. Is there a unifying theme that ties these together . Probably not. Its an incredible m a market. Theres so much volume. The spreads are large in a lot of the names or conceivably large because the deal time is the time to close is going to be a long one, and in fact youre also talking about a good amount of risk when it comes to antitrust for some of the names that are out there including aetna. But it is interesting. One of the underpinnings of this extraordinarily m a market one that i would continue to expect to be strong has been the performance of the acquiring companies stocks. Well watch to see how these things do. Given the time lines, the spreads may tighten as they get closer and you may start to see people say theres an opportunity. Right now people seem to be approaching with caution. I think its a major change. One of the things that really made you feel uncomfortable if you were a short seller that if a company got bought the stock went up or if they made a bid. Now people say the process is a little reversed. Horizon and avago are two of the great acquirers. Lets be careful. Until we get through this period, this is part of a bad setup. Well see. You are shorting the acquirer typically if its a to be deal but they want fundamental investors to flock to the investor. Thats not going on right now. Were also talking about a market that hasnt been particularly strong lately. But humana where is that be . The cut numbers. This stock is very over valued without a bid. Well see what happens with anthem and cigna. By the way, on aetna, having a couple of moments there. The idea that u and h will come over the top. Thats another reason why the stock may have come down. It seems highly unlikely at this point that they would choose to do say. Cant say with certainty that they wont decide to do that but it appears unlikely that theyll get involved. Reuters is now saying greece will submit their new proposal maybe wednesday, not today which had been expected in large part by investors . What . It just doesnt end. Doesnt end. It doesnt end. All right. With that lets check in with Rick Santelli. Reporter were indeed seeing a much bigger affect on Global Markets today than we did yesterday. Look at a twoday chart of tenyear. Yesterday looks flat compared to the movement today. The same could be said for bunds. Everybody wants to make the story of greece the grand experiment running out of other peoples money. 60 euros a day. A lot of people are getting it. Its really about the Chinese Markets and how it affects everything whether its research in certain Commodity Markets or how thats unraveling. Many down here call it the big margin call in china and china would affect europe as well. That really is the big story. Tenyears today starting on march 1st, something should jump out at you. 224 was the first significant high yield spike. We went back on a closing basis. Weve talked about that. This is a big area. If you look at whats going on since april 1st in bunds, their first significant yield to the left of the chart there is 72 basis points. Theyre trading below it. We want to watch it on a closing basis. When it comes to whats going on in europe nothing says it better than looking at one of the southern economys tenyear. Look at spain. Since june 1st, its not like you can pick out something is going on. When you open up a fiveyear chart its hard to say whats going on is the end all of market influence but these are the markets to watch should everything change in response to the vote and theyre not really moving in a way thats putting fear in the eyes of brussels. Now, if we want to look at what the shanghai composite has been doing. You want to Pay Attention to this chart. If we look at the shanghai chart what you should see here on a tenyear chart is weve been there and done that once before but the spikes tend to be easy and significant to recognize. This looks like one of the patterns and the last chart, lets go back to the euro. Is the influence greece or is political experience contagion on a political scene ultimately . I cant tell you. But i can tell you under 110 on a close is significant for whatever reason and today euros are hot. Its possible we can get that close. David, back to you. Ill take it rick. In the meantime oil below 52 now. Reporter . That just happened. The pressure pretty steep. The next technical level i was looking at was 5 1. 55. Were about to take that out. We saw a 7. 7 drop. We started the session stronger but this momentum to the downside is really taking over. Brent crude now lower by 44 cents as well. Were both directions positive here. The deadline for Nuclear Talks with iran being extended for several days. Thats one of the main issues. The iranians have oil in floating storage. It is ready to come to market. It would take time but traders are looking at the extension of the talks and believing progress is being made. We have a dollar rally as well pressuring crude at this point. Since we are talking out probably shortly that 51 55 level, traders are looking to the high 40s for the next top for crude. Potentially within the coming days. Thank you very much. When we come back carnival ceo, the crew ship operator getting approval for ships to go to cuba. Whats clear is that this meeting for greece and the eu off to an awkward start today. Were back in just a minute. A new season brings a new look. A chance to try something different. This summer, challenge your preconceptions and experience a cadillac for yourself. Take advantage of our summer offers. The 2015 cadillac srx, a crossover with space safety, and style. Lease this from around 339 per month. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Watching the markets, which are down 25 points on the dow but the tenyear is one to watch. We hit 220 just a moment ago. Bounced just a touch but thats a hair trigger as we watch the headlines coming in from bustles. Well get to stop trading with jim in just a moment. Being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. [ male announcer ] we know theyre out there. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner brighter future. At boeing, thats what building Something Better is all about. Time for cramer and stop trading. I want people to watch free port fcx. They are both in free fall. I think they bought fcx at the high. To some people this is going to lead to a slow down. There are some people calling for a recession based on commodities. Odd that were hearing people want rate hikes at the same time that this company which is the most inflation sensitive company in our universe is being killed. Lets be careful. The set up is bad. A deep dive in oil as you have to. We have viasat. You want to watch netflix on a plane, there you go and gig sky. This allows you to switch seamlessly to another carrier when youre in another country. You dont have to check in with your company and say im going to mexico. You can charge me all you want for roaming. This is on an apple device. Watch out. Apple, i said something good. Nobody cares. Apple, zucchini. Thats not a fruit. Raising a number of limes. Jim, see you tonight. We will keep an eye on all the developments regarding greece. Also ahead, carnival Ceo Arnold Donald with the dow down 61 session lows. Back in a moment. Good tuesday morning. Welcome back to squawk on the street. Im Carl Quintanilla with simon hops hobbs, sara eisen, and david faber. Apparently no presentation today. Maybe tomorrow. Thats according to one official. Dow is at session lows. Oil not helping matters. Carnival announcing plans to set sail for cuba. Well talk to the ceo about that historic announcement in just a few minutes. Plus the president of the counsel on foreign relation weighing in on greece and why we should all be more worried about the fall in chinas stock market. And oil is falling after the second biggest drop of the year. Well find out what the next for that commodity will be. And Virgin America announcing theyre allowing streaming of videos during their flights. And well ask him about the slide in oil prices. We start with greece. Eurozone finance ministers are meeting in brussels today waiting for proposals from the griek Prime Minister ahead of a Leader Meeting tonight. We are live in athens. Michelle, whats the latest on the cash situation there . Reporter its still pretty tough. There are lines at the atms, the correspondent for the ft reporting that the greeks showed up empty handed or with an incredibly similar proposal to the one from a week ago. Heres the problem. The economy has gotten far worse and every single day the economy gets worse, the financing gap gets bigger because they have less tax revenue. They have to make up with it for tougher measures. And they dont want that. Every day goes by with the banks closed, it gets harder. In the meantime after the situation with the ecb yesterday increasing the haircut, that means more collateral has to be posted. Theyre still putting a squeeze on the banks. One man was asked what would happen to his bank if greece left the euro. He didnt answer her question directly. However, he did give insight into what this new currency if it were to occur what it might ultimately be worth. So youd have the drachma trading and my guess is it would trade somewhere between 25 and 0. 50 on the euro. It would be a pretty bad haircut for the people and if you think about it cutting the value of the currency would automatically cut the value of their pensions and everything else. Reporter their purchasing power would be far lower. They face incredible inflation because they import so many products. Back to you. Thank you michelle. A pretty volatile week for the markets as we continue to keep your eye on greece and of course, the wild swings in chinas market. Again, overnight the dow right now down 73 points this morning. Joining us to talk about the Market Impact a wells fargo investment president. And a currency strategist. Darlg daryl, are you surprised the dow is only down 76 points that were not seeing more . Actually i think the markets are anticipating that a deal comes out of brussels or something forward progress happens there. I think if we get on the back of today or early tomorrow and we dont see any type of forward movement, thats where i think you see the markets i dont know why the expectation is that theres a deal. The reports from the ft is that greeks walked in empty handed again. Theres one more meeting tonight between european leader and it looks like thats it theyre out of cash. Tsipras needs to come with a proposal similar to the juncker proposal from before. I think if they can make similar progress, the markets will react on top of the fact that its well documented that greece is somewhat ring fesnced at this point. In 2012 spains tenyear yields for 7 . Theyre nowhere close to that now. It is con danedtained a little bit at this point. Many have been looking for the euro to slide. Over the past few sessions were getting the Material Weakness in the currency today, especially against the dollar. What does that tell you . I think were all talking about economics but this is becoming a very serious political issue. Somebody wise said any Civilized Society is only three meals away from pure anarchy, and as you can see from the reports, by next week they have killed off the Greek Economy at this point. If we dont have a deal within the next 48 hours, we could be looking at Food Shortages and medicine shortages in greece over the next couple of weeks. That is not going to make for pretty pictures. And i was going to say at this point its really merkels to win or lose. Tsipras to going to come back with a proposal but they need to act on it quickly and she has a very deliberate personality, and at this point it calls for an impulsive, tactical leadership. Itll be interesting. The question is what the connections are back to this economy and to this stock market. We live in a world now where were super connected and we can see whats happening. Years have gone by and that was mass genocide and nobody knew it. Its a different world in what we can see. The question is the degree to which it comes back and affects the market or whether it reinforces one of the major dynamics which is the fed isnt raising rates here. And janet yellen may say rises are further off than we thought. We will see the minutes for the june minutes tomorrow and she speaks on friday. The issue is are there one or two rate cuts autoof the minutes. Im not sure that the greece situation, especially with the markets reaction fully pushes off the fed. We still think theres a 40 likelihood of a september rate increase, and we actually think the fed will continue down the path. The Economic Data is better. Economic data has been printing two, twice positive surprises for every negative surprise. Its an environment where the fed has the ammunition if they want to raise rates. I would disagree with that. Let me say for the record that we have our reporters on the ground in brussels saying that one has left the meeting looking extremely tired and strained. That might mean nothing. But if there is the prospect that greece is going to leave the eurozone and no one knows what its implying. Theres no way shell raise rates here. The classic thing would be to talk about a unified front. Youll hear the commentary of weak first half of the year low inflation and global risks. Those will be the issues theyll outline and use as the cover if they dont want to do september. I dont know a lot of people who would agree to you. Do you think this alters the feds path due to the fact that the Market Reaction has been muted . It has nothing to do with the Market Reaction. There is to inflation in the wage data. Theres mass i global risk with greece goes under and we dont know what the cross clat rl risks and Janet Yellens personality is cautious. Shes going to hold off. If they solve it this week, we can talk about a rate hike. If they dont, i dont think theres a rate hike in september. Good to see you both. Dow now down 111. S p negative for the year once again. Lets go to Rick Santelli. Reporter were under 220 now and tens under 3 in 30s. Were hovering just shy of 5. 4 million job openings continues to hover and create new records going back to 2000 when the data was originally created. Lets look quickly. Hires 5 million. Separations 4. 7 million. Those components are fairly unchanged from april. But all hovering near the best levels weve seen in this data series but everybody continues to monitor the big margin call in china. Back to you. Up next on the program an historical announce from carnival. Planning to set sail for cuba next year. The ceo will join us live here at post nine when squawk on the street comes right back. When you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. Thats where at t can help. At t has the tools and the network you need to make working as one easier than ever. Virtually anywhere. Leaving you free to focus on what matters most. \ blns the for over 60,000 california foster children, having Necessary School supplies can mean the difference between success and failure. The day i start, im already behind. I never know what im gonna need. New school new classes, new kids. Its hard starting over. To help, sleep train is collecting School Supplies for local foster children. Bring your gift to any sleep train and help a foster child start the school year right. Not everyone can be a Foster Parent but anyone can help a foster child. The departments of treasury and commerce are granting the first license to operate direct cruises from this country to cuba. The license has gone to carnival but it will only apply to one ship launching from miami. Passengers will have to sign up to cultural activities that support the people of cuba once theyre on the island. The ceo joins us here at post nine. Good morning. An historic moment for you. Absolutely. An historic moment for us and the cruise industry. Were privileged to have received the licenses and its the first important step to ultimately receiving cuban approvals so we can sail and our intention is sail may of 2016. Its not a done deal . Are you able to get to cuba . Today we have to have authority from the cuban authorities. Were waiting on that . Were working on that right now. Thats interesting. This is only limited as i understand it to a socially aware brand which links people to doing certain things when they arrive at the island. Fathom we launched a few weeks ago. It wasnt launched for cube baa. The initial launches are to the dominican republican. Great experience for the travelers and systematic wholistic transformation working along dominicans with a history of impact. In cuba its an opportunity for americans who go into their arts. This is not Carte Blanche for you to sail there . Not traditional cruising. It is under the 12 authorized forms of travel that exist today. Thats why were able to do it. Fathom has been transformational because it allowed us to fit within those compliance criteria. Fathom evolved from a concept of how do we take travelers who really want to go places immerse themselves and grow themselves individually and have impact . Are you going to Police People in could i go to cuba and drink rum and smoke cigars and you say youre going to meet the locals . We will be in compliance. Were not police. Were not going to enforce that way but were going to document and report and people that have a right to go to cuba could have gotten, you know authority to do that or approval to do that. You guys will have studied what the infrastructure is in cuba. Does it have the infrastructure to take big ships . Were selling the adonia that should carry 700 guests. We know that ship can easily get in a number of ports. We still have to work with the cubans to have all the infrastructure so the guests have the experience that we would like them to have but thats going to happen. Is this in a sense a toejroejen horse. Can you go in and get a land grab . Its not. Were interesting a building a great cruise industry. Once the embargo is lifted, were looking forward to normal cruising there but it does give us the establish to establish a cruise industry. Im wondering how your cruising business is doing in yrn europe. Have you seen any changes in the way the people cruise around the mediterranean . It continues to do well but it has been impacted by the Macro Economic malaise and some of the gee owe political tensions but we mentioned the Second Quarter Earnings Report we are still projecting for the full year yield improvement. Bookings are continuing to next year and we continue optimistic in europe but its a challenge and a drag from a Macro Economic in europe as well as a geo political. Looks like fuel is changing. With fuel its kind of a double edged sword. We get the lower fuel prices but the Exchange Rate hits us. The stronger dollar hurts. We beat our guidance last while we are seeing some benefit from fuel between the collars we have, 50 of the fuel requirements are collared so we dont get the benefit of lower pricing and then with the dollar moving the wrong way, we see a benefit but the net benefit isnt what people might think. Lets go back to greece. How does a ship work . What happens if for example, the structures of greece break down and they dont have people at the ports . Can you land in do you pay cash . How does it work . If there is not people to manage the ports and stuff, were not going to take guests in. If that was to happen we would not. Do you make contingencies for not being able to suddenly pay port staff for a cruise underway . We would reroute the ships. We can entertain guests for an extended period of time and have a great time. They also went to see the destination. If its safe and the processes are in place, well take guests to the destination. If not, were never going to risk a guest. Good to see you. Thank you for coming in. Arnold donald here the ceo of karn valg. When we come back richard hass joins us to weigh in on grease and talk about chiethe china stock market. President obama and treasury secretary have both been reaching out to leaders in the last 24 hours as greece scrambles to propose its final proposal. Is greece to big to fail . Joining us president of the counsel on fortune relations. The fact that the president has been on the phone with the french president is a reminder that the greek crisis has geo political consequences far beyond just the market volatility and what happens economically. What are the risks in your mind . I think the principle risk is market. Europe constitutes a quarter of the worlds economy. The real question is what consequences might this have for europe and everyone else. The geo political risks say if russia plays a large role is modest. The russian economy doesnt have a lot to offer greece or anybody else. Do you see the risk of greece having to leave nato or the eu if they cant work out a deal in the next 48 hours or is greeces position within those broader institutions safe . I think greece is likely to remain within the eu as well as nato. That said i wouldnt exaggerate their contributions to either. In most cases now within nato greece footnotes are basically takes an exception that doesnt really support the consensus. Theyve been out of the mainstream now for some time. You said in your notes to your producer that the greek drama is a distraction from whats happening in the chinese stock market. Weve been following it. Theyre constantly intervening. Whats really happening in china . Well. Well theres an awful lot of speculative things going on. And the reason i think this is consequential is political stability in china, and the government has derived from increased standards of living. If china has finally hit serious head wins and theres an adjustment throughout the society, what we can then expect is all sorts of political tightening and potentially some unrest. Im not saying the greece story deserves less attention but i think the china story deserves more. Somebody said yesterday as far as china is concerned, whats happening now is theyre not going to be able to lead us out. Theyre not going to alpha more than, at the moment in a serious downside scenario. Is that correct . There was never chance to me that china could play that role. Theyre in an enormous shift in their economy. Away from an export economy. Theyve got to move to a domestic consumption led model. That was going to be a difficult transition of several years and now were beginning to see signs of how difficult it is. The only country that could potentially lead the world ahead is the United States and as well as were doing, were still underperforming. On putin, im wondering why youre not more worried about him trying to insert himself even under the radar in that political block, getting more influence in a country that already seems to be open to anyone who can help them in any way. I think you get some more influence toward that end. I dont understand the strategic purpose or where it all ends up. This isnt the cold war. Its not clear to me what sort of strategic advantages would necessarily accrue to mr. Putin if for example, he did end up with a slightly larger economic or political role in athens. What does it buy him . You tell me. Thats not that obvious to me. What is your prognosis for greece . I i think were going to see a barter and skrip, ious being issued, and the optimist says theres a chance for a larger deal in new loans. If not that youre going to see some version of a grexit possibly with some humanitarian help along the way if the social fabric in greece begins to break down. As you know the german calculation, the risks of setting a bad precedent here are greater than the risk of contagion given portugal and spain. And i think the euro is fine without greece. It sounds like a lot of turbulence ahead. Thank you for joining us from washington today and the president of the council on foreign relations. Straight ahead on the program, crude oil falling once again today having had its second biggest drop of the year. Prices have fallen as you can see, 14 in just one week. Find out where they will go from here after the break. [music] defiance is in our bones. New citracal pearls. Delicious berries and cream. Soft, chewable, calcium plus vitamin d. Only from citracal. [ male announcer ] legalzoom has helped start over 1 million businesses. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. Hello, everyone. Here is your news update at this hour. The iran Nuclear Talks have been extended once again. This time until friday. Foreign ministers from the six world powers meeting to discuss the impasse in the absence of irans foreign minister. The star quarter back at Florida University has been discussed from the team. Video has surfaced of him arguing with a woman before punching her in the face at a bar on june 24th. He is facing a charge of misdemeanor battery. A three alarm fire at louisvilles whiskey row. It spread to two buildings. All of them are part of a project to redevelop the historic buildings. No one reported hurt. And long time subway spokesman jarod foegl is the subject of a child important investigation. Fbi agents raided his indiana home early this morning. He was escorted out by authorities. He has been detained but not arrested. Agents did, however, remove electronics from his home. That is your cnb update at this hour. Lets get back to squawk on the street. We have breaking news now from the imf. Not on greece but actually on the u. S. Financial system. The imf just releasing its own version of a stress test. Saying banks are healthier and stronger than we were five years ago which is the last time we got this report but theyre also, quote, bigger and more interconnected. New risks that the imf is highlighting here. Emerging in Insurance Companies and mutual funds. The imf is calling on the u. S. To create an independent National Regulator for the Insurance Industry saying the risks for the u. S. Financial system include the big amount of leverage thats been building up in Insurance Companies specifically and in mutual funds in this era of zero rates. These are risks theyre highlighting for congress and regulators regulators like the sec to consider. Its interesting they flagged the leverage built all. Lets come back to the fact were down 141 points on the dow. The greeks did not offer on the new on the table at todays meeting. That was the request of the rest of the eurozone. There was a finance ministers meeting. Apparently they said you can deal with whats on the meeting. Nothing new. Now the leaders will meet within the next two hours again with nothing on the table. Thats not terribly encouraging. I mean there is a lot of conjecture as some people put it that maybe they had discussed some elements of a would be proposal and were told to go back, like you have to present something more rigid and we have to respond formally. Theres a bunch of game theory. And the market isnt happy. Tenyear is a source of concern as weve back to 220. We have the Leaders Summit tonight. Theyve indicated theyre still open to talks. The attitude has changed a little bit after the no vote on the referendum but the key will be whether greece shows up and brings something to that table. But its more than that. Has the horse bolted . Do they trust the greeks to implement anything in and actually can the European Central bank reverse the run on the banks in greece . Can you convince people youre going to stay in the eurozone and you dont have to take your money out . And how is the deep sliding crude affecting the hedge funds in we have more on that . They went long here. Reporter the market has been net long for some time. Some people believe in it. In other ways its a head scratcher. With many on holiday last week and now, relatively low volume could be amplifying the volatility. A rally peaked in may giving away. Members on theed last thanks giving to hold firm on their quota giving the market a huge down swing. It had great finished to 2014. The average Commodity Hedge Fund is up 1 through may. And some key players and bear in mind the dates are a little mixed. Its sort of a lagging tracker with the performance is for these funds including londons Merchant Commodity Fund which was last years second best performer overall. Its fallen 4 through june. Others like andy halls saled on the spring highs. They were bullish at the time. The current outlook even after yesterday, kind of depends on whether the current bearish factors, concerns about additional barrels being brought online by iran and the economy is slowing persists. One area of contention, whether or not the Global Markets are as oversupplied as some think. Some believe it has been exaggerated and believe a release may be overstating the problem. Others like the merchant funds king and Goldman Sachs believe the needed balances of supply and demand hasnt happened yet and well have to look at the third or Fourth Quarter to see the bottom set in. As kate mentioned, crude oil settling losses. Yesterday the second worse day of the year. Joining us today to talk is the Nasdaq Energy analyst with more. Good morning. Good morning. Perfect storm. It sound like a report i could have read in january. Yes. I think that the biggest news from the past couple of days has been whats happened in china because everything going on in iran and greece those are things that the market has been digesting for some time but i dont think that the market really anticipated that things were quite as bad as they were in china, and that had been a big tool in the arsenal of the oil bull out there who said oil demand was understated and could supply us to the up drive driven by china. Thats thrown into question. Are you a buyer of the argument that some of the supply projections were overstated . I think the supply is really strong if not just from the u. S. But from other sources. Weve had multiple careers of oil at above 100. Thats really created investments and all sorts of supply thats committed and now coming to market. I think the supply factor should remain robust for the next two years. Low for the year is 44 and change. Likelihood you think we revisit that . I dont know if well get down to that level but i think theres certainly up side as captain, were looking at a tight range between 45 and 55678955. How much of this is china demand . Are you able to separate the various dynamics . No. When you have a perfect storm, its hard to parse out but i think that the newest bit of information and the biggest shock to the market yesterday was the story from china because that was linked to the main argument for the oil bulls so far. Oil had been largely priced in. Weve seen it in copper and iron oar, the china story taking effect. Im curious on iron whats priced in. And is there potential for a surprise . Theres about 40 Million Barrels in tankers that could come to market pretty immediately if a deal is generated. I think that there is more of a delay on the socalled 800,000 barrels that would take more time to come to market in terms of inspections and all sorts of other delays in terms of getting the old Iranian Oil Fields ramped up. I think its more of a headline risk than anything else in terms of fundamental supply in the near term. You also have a stronger dollar affect bid whats happening or not in greece. Its at a onemonth high against the euro. The hallmarks of the past 15 or 20 years that has been supportive of oil prices, those seem on the cusp of reversing as the fed seems closer to making that rate reversal. Theres going to be more inherent resistance to upward momentum in oil prices than weve had previously. Just when you think were out, they pull you back in. Thanks for your insight. Well see you soon. Coming up Virgin America taking a big step toward streaming movies from the ground in the skies. The airline ceo will join us for a live exclusive interview to tell us about their new offering on the new planes. And later on squawk alley, Walt Mossberg will present his answer to siri. Visit legalzoom today for the legal help you need to start and run your business. Legalzoom. Legal help is here. [ male announcer ] eligible for medicare . Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. 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I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Stocks have just taken a sharp turn even lower than they were after the open. The dow now is down 186 points. The s p 500 is down a little more than 1 . The nasdaq getting hid the hardest down almost 2 . In terms of s p, bringing up the rear is financials and energy. The groups in the green today, utilities and consumer staples. That has a lot to do with buying treasuries lower yields and with that we go to chicago because Rick Santelli has the santelli exchange. Good morning. Id like to welcome any guest i. R. A. Harris. No matter the crisis, i remember in the 87 crash there was rumors of plunge protection but they stifled it. This was not use they wanted out and reporters that talked about it probably got nasty contact phone calls. Now this is the world we live in. Basically china, japan, United States weve taken so much risk out of investing. Its now governments picking who gets money and who doesnt, isnt it . Because its all driven by headlines. And we live in a world where everything gets read and magnified. Central banks and governments make the mistake of paying attention to the stock markets. If youre doing the right things stock market will make care of themselves. We know floors under things artificial floors never work. Now, i know greece is a big story. Of course because news moves markets. And it isnt whether its fundamental news or political as in this case it moves markets. The type of trading on computers moves markets but it isnt a fundamental economic story like china. Chie dma has longterm ramifications. If this group thats in control of china doesnt get investors confidence back, bad things can happen h. Of course. The debt load is enormous. Use it has collateral against loans. This is everywhere in the china world of finance. Everything is credit based. And we dont know. Weve seen supposed use numbers for copper but its been sitting in a warehouse and used for other loans. And as long as the underlying collateral is rising in value, all things are good f. Its like housing. When housing prices are up that was the Collateral Base and all things were good. As soon as the collateral gives away, youre now in a debt situation. The problem is china has been and people have warned that they have so much excess capacity that they cant carry all this debt. You trade markets. You have to watch grease and chinese headlines but what your strategy and a little more macro sense . You know what . Again, we have talked about this and i said four months ago with you that greece was going to play the referendum card because thats what they have. And one talked about its all politics and its not economic contagion in europe. Its political contagion and merkel knows this. They fear the referendum more than anything else and thats what tsipras played as his card. Its not a whirlwind yet but germans are going to wake up one day and with the afd gaining in stachture and they will gain in stature and say we want a referendum on whether the greeks really want to be the guarantee of the entire european credit card. And as all political spectrums take one step to the left. Back to you. Thank you very much. When we come back, an interview with the ceo of Virgin America. S p is down 20 below the 200day moving average for the First Time Since october. Were back in a minute. [ male announcer ] we know theyre out there. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner brighter future. At boeing, thats what building Something Better is all about. As sara mentioned, big drop midday here in shares of the s p down 20 points fell below the for the day. Lets go to dijsselbloem. Hes not yet presented new proposals but he will first of all now send us quite quickly a new letter requesting for esm support and following that he will present proposals from the greek side on what the substance would look like on which we could reach an agreement. So we will do that as quickly as possible, already tomorrow morning well have another Conference Call to talk about this letter with a formal request for esm support. That will for me be the signal to start the process. First step will be to ask the institutions to assess financial situation in greece financing needs, debt sustainability and then we will have another eurogroup to decide whether we will formally start the talks on a possible program. The ministers also broadly agreed that if there is to be another esm program which supports it would have to be a mediumterm program for reasons of credibility, the problems in greece are deep and will need our attention for quite a time to come. So we would be talking about a medium term program. Are you optimistic after what you heard from the new minister . Its too early to say. You must realize that in the mind of the eurogroup, the problems in greece do really need credible reforms to deal with those problems. Therefore, we need to hear from the greek government whether they have such reforms in mind whether they are prepared politically prepared to do those. Thats what we will hear from them very, very soon. [ talking at once ] do you expect concrete proposal today . We were under the suggestion that they might have come today, but they were not available yet. First step now is to have a new letter. The old letter had a number of different requests. We would like to receive a new letter and we will receive it quite quickly. Do we have time for all this . Do we have time for all this . There is a great sense of urgency, we all share it. The greek colleague shares it we share it. We all know how very difficult the situation in greece is as we speak. And time is very short. And more so as we go on. Is there a chance that the ecb will receive [ inaudible ] in order to continue to receive [ inaudible ] . We never give strong signals to the ecb because they are independent. They will independently assess the situation from day to day and take their decisions. Are we still talking about the program, mr. President . There you see the head of the eurogroup, the dutch finance minister leaving that meeting, sounding perhaps more optimistic than you might have thought. Lets send it over to sue herera. Thank you very much, simon as you can deduce the eurogroup meeting has ended. No new proposals from greece according to the cypriot finance minister. He says it is coming and that echos what we just heard out of greece. In terms of what else is going to happen with the eurogroup meeting being over now we have found out that cyprus will meet with merkel and hollande before the eu summit. In addition to that mr. Tspiras will meet with parliament on wednesday. We dont know the contents. That will depend on whether or not they will be able to get that second letter just reverend l referenced to the eurogroup in time. Right now there are no further meetings scheduled according to the cypriot minister. Well keep you posted. Its not over yet. Obviously, yes. Thats the takeover from the dutch finance minister. Thank you very much sue herera as we watch the Market Reaction. Dow off the lows still down 135. Lets send it over to jon fortt with a look at whats coming up on squawk alley. Well continue to watch the markets, the nasdaq skill down about 1. 25 . Also well talk chips, amd had a warning, samsung also warned of numbers that arent going to be so good for the quarterly reports. Well dig into that. Finally, Walt Mossberg has a look at amazons new gadget. All that and more coming up on squawk alley. Here is a simple math problem. Two trains leave st. Louis for albuquerque at the same time. Same cargo, same size, same power. Which one arrives first . Hint its not the one on the left. The speedy guy on the right is part of an intelligent system that creates the optimal trip profile for all trains on the line. And the one on the left . Uh, looks like itll be counting cows for awhile. So maybe the same things arent quite the same. Ge software. Get connected. Get insights. Get optimized. A new season brings a new look. A chance to try something different. This summer, challenge your preconceptions and experience a cadillac for yourself. Take advantage of our summer offers. The 2015 cadillac srx, a crossover with space safety, and style. Lease this from around 339 per month. Travel and leisure announcing its rules for best domestic airline. The top spot goes to Virgin America again. This mornings announcement marks the eighth year in a row that Virgin America has won. The aco separately announcing its new plans will now be equipped with a fresh wifi system that will deliver a tenfold increase in internet speeds allowing passengers to better stream video from the ground in flight. Joining us now exclusively from San Francisco is Virgin Americas ceo david kush. Welcome back to the program. Good to be here again. After the eighth year do you put it in the adverts. We do put it in the advertising. We know our competitors have been upgrading products and investing in it. Even after kind of their onslaught of new products we were able to retain the top award. Now its our turn to introduce new products. Were quite gratified by it. What will the new wifi system do on the new planes not the whole fleet but the new planes that the Current System doesnt do . Were starting out with the new planes. The first thing it does of course, it uses ka satellite across the domestic u. S. That will deliver speeds up to 30 times the speed of the original atg antenna that most Airlines Still Fly and ten times what our current aircraft will do. Essentially youll be able to stream video with absolutely no headache. What we think is interesting about this antenna, its a dual antenna that uses the ku satellites across the pacific. We can have a single antenna, offer fast wifi across the u. S. And adequate wifi to hawaii now. That is obviously the new route. How much of a competitive advantage is this . We think its a Significant Competitive advantage. United has some ka jetblue has some ka but no one has the combination of ka and ku. They can have the ku system with slower u. S. Speeds or a ka system with only internet over the u. S. This is a new antenna developed by viasat. We think its a leading e