Lets take a quick look at the markets after a long weekend not after a long weekend. A week. Nasdaq up 25 points and the s p up. A longer weekend than usual. It was longer for me because i wasnt here friday. Here are the big stories. Greek banks reopening three weeks after they close. Capital controls remain in place including limits on withdrawals and no word yet on when the stock market might reopen. Although some are trying to play this with the etf and trades here. Increases in value and a tax agreed to on the new bailout terms have now taken effect on things like coffee and tea. Well hear more from Michelle Carusocabrera pulling double duty. Lets take a look at asia. It was another volatile session. The shanghai stocks closing higher. But closed up just shy of 1 . There have been a media report earlier in the session suggesting the government was studying how to end its bailout. Well continue to watch the ongoing volatility in china. Every day there seems to be a new story there. Also check out gold. Stunning action. Trading below 1100, since the First Time Since 2010 joe, people were asking if there was a fast finger trade taking place. There were 5 tons put on the market at once. Last week we said are we going to see below 1100 . We already talked at possibility of seeing one zero. But to see that in such a short period of time just looking at the fed chart and plus when you get to a certain level, thats when all of that has stopped. Its a hit and then down we go. But whether this is indicating a lower grid mark and tweeting this morning indicating deflationary figure reemerging globally with a lot of comphodaut fot of commodity its. Some stocks to watch. Barclays reportedly plans to cut more than 30,000 jobs in two years. Is this according to the times of london. The bank fired the ceo. And then the deal Lockheed Martin is reportedly agreeing to buy United Technologies kasikorsky business. The price tag is 8 billion. Sa korikorsky known for the black hawk helicopter. And lockheed makes a lot of things. And the ceo will talk about why sikorsky wasnt manage that utx wants to keep in its portfolio. How Many Companies are going to buy it. With the helicopter you saw you saw the rare metals i think it may have been im not sure lesley stahl on 60 minutes, anything you want to build, they already know all about, mostly defense stuff, but now they own the world here if the president sleeps thats the point, he probably wouldnt sleep very well there. Of course we never other deal news syngenta reportedly planning a series of meetings monsanto offering to buy sinyngenta 45 billion. Ceo hugh grant, not the actor reports on it. I like friendly deals so you know, we need the collaboration. And theres a lot of miles to travel that this one. Id like to talk to a real person across a real table. So weve got work to do. That is a strong accent. Wow. Friday, i said when i was leaving, i said i hope you do the squawk box what you did for see, i had thats almost funny, almost. That is funny. What was the recession to that . He liked and he laughed and goes yeah, thats it. Syngentas board has posted in hollywood deal news owners of miramax reportedly exploring a sale of the company. The company include Goodwill Hunting and pulp fiction. Reports say it could go for as much as 1 billion. We also have a busy week ahead in earnings central. Morgan standingley is the company to watch. This morning, well hear from ibm after the bell. Hasbro and halliburton reporting as well. Lets check the markets right now, we would have a positive open as indicated in earlier trading. S p up by 3 points. Down by 27. Nasdaq up by 5, of course. That is coming on the back of a day on friday when we saw nasdaq hitting a record high. Well see if that can continue. Much of that will hinge on what were seeing in europe. Just positive today as were getting comments out of german chancellor merkel or whether or not the deal will be successful. You can see what the comments are doing to the markets. Largely in the green. In asia lets take a look at where were trading there. We talked china earlier on. Hong kong and shanghai and australia up in the green. Oil, as we should mention, wti has been neg negative. And brent is up. The tenyear were seeing about a one basis point rise in the yield there to about 2. 36. And the dollar actually has been up today. A fractionally were watching the euro as well. 1. 08 is where it is against the dollar. When i checked the tenyear this morning on the way in it has all the european sovereigns there as well. Were way above that. Almost a point. I mean theyre down in 1. 6, 1. 7 area which makes you wonder. This is all since september. So whats happening in gold today. Yeah. Yellen said they are, basically. Yeah, they are. Theyre doing a quarter, i dont care what well see her at sometime. She did argue for doing it sooner and more gradually is what she was saying. Because i dont talk about what theyre going to do. I talk about what they should do. Okay. Is there they should definitely do a quarter. A quarter is not going to kill you. Get it started and theyve even skipped some. Lets see how it goes. Get a positive month, something other than zero. Eye werewith the imf and the word bank saying i told you so you dont think thats extra pressure until december at the very least . Watching the imf and world bank i think we got to bring back my man, straus con. He was good. Thank you. Why, whats going on in your greece continues to delineate the Global Market headlines. Banks are opening today. Very limited functionality. Michelle carusocabrera is here. Made her way back from athens in our Washington Bureau this morning. I was excited that youre going to be here arent you going to be onsite with us . Yes, im onsite with you. Joe. Looking forward to it. I dont know whats going behind the scenes. Did you want to come home a little earlier, is there some things going on there . I have been away a month, joe. Months go fast. I remember talking about when you were going to go. Then you went and then you never came back . I know the boss was trying to get me to go two weeks earlier. Once were there, were going to be there a long time so lets hold up. Right. You know all the kabuki dancing and here we are where we knew weed be most likely. And proof that all stories merge into one, joe, Dominique Strausskahn is going to influence the cuban government. Love him or hate him, he was a good head of the imf. Good at a lot of things. Anyway whats the headlines . Greece. You know we got to go you got to talk about this other stuff. Did you ever have to wait in an atm line you couldnt tell us when i asked you from here . No we brought a lot of cash with us, knowing that. What in the lining of your suitcase or anything . No, just carrying it. Wed been in cyprus without cash and it was a real problem. We werent going to make that mistake. Greece banks reopen today, the functionality of the banks is extremely crippled. It used to be you could take out 60 euros now 420 euros in a week. Whats the difference if you can take out 420 at once if your account. The elderly we watch struggle with inputting pins in atms, et cetera. And also people who had kept cash inside the safety deposit boxes. But youre still not abe to transfer money overseas which is a dramatic thing for greece. If youre a company relying on imports as they do you can still not overpay your suppliers. All of that restriction continues. Because of that inability to transfer money overseas that means that the Greek Stock Market could not function as it should. Stocks dont trade, bonds dont trade. Angela merkel before going on vacation was at the annual conference before doing the summer holiday. She indicated no haircut for greece although hinted at the possibility of extending maturities and lowering interest rates. Only when greece negotiates the bailout to the First Successful review with the apple mentioned imf, i want you to have one take away from this report. The minute Angela Merkel says its okay for greece to get a haircut, greece is done for. Greece will be leaving the euro. Remember within the german mindset, you cannot get a haircut. You cannot get debt forgiveness. You can take longer to pay your brethren back but a haircut is not permitted. The reason the finance minister is saying greece needs a haircut is because he wants greece to leave the euro. So shes committed to keeping greece in the euro thats why shes say nothing classical haircut at this point. Wow, were going to talk to our news maker of the hour joining us former ecb president jean claus troshet. I think we thought this was the most likely outcome at this point, mr. President. And at this point, we dont need a haircut, but if you were to do some zero coupon 100year extension, that the just like a haircut, isnt there . Yes i think were really contemplating on it. Because its not political reasons. Its extremely difficult. So many many government and parliament in europe lose money. Losing money. And how the imf is very keen on not losing money at all. So that does not prevent and having said that that you mention even more the duration of the loan. In that that would be considerable help. Additional help. I think we should not contemplate too much on the issue which is of course very very, spicy. But the reality of the situation is to implement the task. And that is absolutely key. Right. And might be the one positive outcome. Do you think if some of the Structural Reforms are put in that greece will be in a better position in the next couple of years . First of all, i hate to think that there are a lot of good things in what has been agreed upon. The idea that everything should be accelerated is of extreme importance. Also lets remember before the change with the cause of action of greece the International Community agreed upon the fact that greece was back to growth the imf established still in april projections that were giving greece 2. 5 of growth this year. And 2. 7 next year. So a lot has been lost in the, say, hesitation of greece during the last six months. But i hope very much that if that is we could be become to present day figures, after having really unfortunate time and also growth due to the adaptations. With now some of the comments mr. Schauble and i just wonder if you think there were certain parts of the Merkel Administration that really didnt want an exit and thought that that was probably the best outcome . Or was that in your view, i dont know if you use the term good cop bad cop, was that just to prove the point that they were serious . Or do you think there were certain contingencies that wanted greece out. First of all, in any democracy democracies, you have varying sensitivities. Since the very beginning of the debt crisis i could see a number of countries including germany, you had the sentiment that some countries should leave. And it was certainly not shared by the government. Certainly not shared by president schauble but it was very much in the air of the parliament because it was very much in the air of public debate. Not to mention the german party. Of course you had this success of stage. And the successes and that we should think again that greece was the last one to succeed because it started from a low point. With sensitivity, coming from athens the kind all in a diplomatic situation. There were some that came from athens and did an additional sensitivity. All taken into account, the position of the German Government and the position that made sense. And in disguise and the decision which has been taken which is obviously a decision to maintain that in the euro. And to expect from these, that these would be back on its feet and back to growth and job creation which is the okay. Mr. Trichet, we appreciate your time today. We will continue to talk to you about this as this story never ends to some degree. Thank you. When we come back donald trump making waves again this weekend. This time for comments about john mccains war record and the backlash now coming from his own party. Were going to talk about it when we return. But first, heres a look back at this date in history. When you get up to 50 off thousands of hotels with travelocity it means you can also afford to get up to 50 swedisher swedish massages. Making it the place to find a place for summer escapes. Go and smell the roses. Ah aflac . Aflac i thought you said this guy was the best . Oh, hes a horrible stylist. Gah . But hes the best at paying claims fast really. Mmhmm. Paid mine in just one day. One day . Yea. Aaaflaaaac in just one day, we approve and pay. One day pay, only from aflac. Welcome backs to squawk box this morning. A major step forward in the fall in the relationship between the u. S. And cuba. The Cuban Mission in washington, d. C. Will officially become the embassy. The American Embassy will also open today in havana. It will be the first time in 54 years that respective embassies have been reopened in either country. Meantime to political news this morning. Donald trump refusing to apologize for his comments that he made over the weekend about senator john mccains military service. More from washington. Good morning, john. Good morning, andrew. You read it, you turn on the tv, youd think it was over but some people would say its over before it began. So where are we . Well, look, donald trump has managed to seize the spotlight in the race for a few weeks now. He continues to do that with the comments he made about john mccain. And the question is whether he has jumped the shark and soen the seeds of his own. If you ever thought that donald trump had a serious chance of winning the nomination. Hes not a politician but he is a chairman who has a knack for drawing that and instinct to respond when he got to a forum in iowa. This is where the republican field which is going to hold him back in the form of alienating donald trump. Now, youve got the wall street journal, a terribly critical column this morning, trump and his apologists applauding him when the is death knell . If hes going to get out when would he get out . I suspect he would get out if he suspected the whole thing was futile. As long as his poll numbers are where they are, which is second place nationally, i cant imagine that he would pause himself to leave the race. Its very small staff. Hes doing it with his own money. Hes got plenty of money going around. Hes spending half the time on campaign, half the time on business. Everybody else more than a fulltime deal. If the numbers start going down you know, there usually is a moment in an a candidate like him, john mccain in the last cycle, where the celebrity and the attention sort of builds to a peak and then the air goes out of the balloon . Is the balloon now hurt and the air is in the process of going out . Well find that out in the next couple of weeks. John we were asking about his comments on immigration. You point out that his poll numbers, even given those comments were improbable. But when do we get an indication that these comments have some sort of resonance outside the beltway . Do you see it impactinging him inghim in the polls . Well theres a segment of the Republican Party that does like very much the things that he was saying about immigrants. Talking about, in the Republican Party, about john mccain not as john mccain the political figure but john mccain the veteran that spent five years in captivity, thats a different thing and has the potential for alienating some of those people who cheer him on immigration. Weve got a couple weeks until the first debate which will take place on fox in early august. By all accounts donald trump would be in that debate. He qualifies for it bit poll standings. As hes not just within the top ten. Hes within the top two. So i suspect that moment might be the first time when a large audience sees him interacting on a big stage with other candidates. And how he treat them and will determine how voters react at least initially over the first month after these comments. Theres plenty that you could have said probably about John Mccain John about i dont know, about the way the election is going. He said some of that too. He did. But the weird i remember the selection, it was almost a selection that looked like he felt like he didnt have a chance and got elected on a hail mary pass. So you could do a lot of that stuff. Right. And you could spend five hours in a political camp and did you serve, john . I did not. Anybody that serves i cant even fathom that. So thats a tough one. Well as bobby jindal said yesterday when donald trump spends five years in a camp he can comment. Were not going to cover this anymore and then he does that there it is, the second story in the huffington post. Didnt he put it in the entertainment section again . I think they put it under the entertainment banner. Thats so stupid. Theres about three democrats Bernie Sanders shouldnt be under the entertainment section of the new york times. Coming up, getting ready for vacation thank you john but dont want to leave the fourlegged members of the family home alone new yorks jfk has a solution. Details on a luxury animal terminal. Complete with flat screens and tvs for dogs. If you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. Hurry, before this opportunity cools off. Share your summer moments in your mercedesbenz with us. By the time Police Arrive on a crime scene they could have little to go on. A vague description. A single piece of evidence. A partial plate number. With an app from ibm officers can now access over a billion police documents to find hidden connections and identify potential suspects. Ibm analytics helps one hundred thousand officers work smarter every day. Welcome back to squawk box. A couple years ago, you guys might remember this but at a benefit for a bunch of wall street people the Robin Hood Foundation the comedian john oliver was said the single biggest middle finger to a weak Global Economy is the fact that u. S. Consumers spend over 4 million on costumes for their pets. For halloween. That was 48 million that jfk is reportedly spending on a luxury terminal for animals. Its going to be called the ark, after noahs ark, from the niebl. Bible. Oh, thats so cute. 20,000 square feet just for dogs. Its obviously going to have housing capabilities for cattle for birds, for horses. But for the dogs its going to have flat scene tvs. Going to be run by a Company Called paradise for cause. I dont know what zoa does when you travel zoa is the female german shepherd. Plays a lot, dog parks. Congo, the designer dog, hes very smart. He is coming in august. Hes under the seat. Does have zahra go . Zahra goes with a friend who loves dogs. And zahra is not going to the ark . Well they dont stay at the ark. It sounds like it might be primarily for transportation of animals. Or if youre coming from an International Get nation. Its not a boarding place. I dont know. I dont know. And i whats with the flat screen . Ive never seen either dog watch the tv. There are channels for yeah but do they watch . Supposedly. Its an unused cargo terminal thats being demolished. But the not a kennel. You just dont leave them. It sounds like something you drop the animals that are riding in other parts of planes than a consumer plane. All right. Im talking about under armour were going to talk to dave gibbs about the british open. The final round is today. Jordan spieth kind of cool Jordan Spieth who is already a veteran of two majors. You know he wears like 18 under arm our logos. Study suddenly the guy in the lead at minus 12 is an amateur. And he was mistaken again and again for Jordan Spieth by a lot of the fans over in scotland because because he has had all the under armour on. He doesnt look like Jordan Spieth. But people not that familiar saw under armour you got at guy at minus 12 hes 22. How can an amateur do this at 22 . Well talk about this. So just doubled the number on this. Kevin plank, why do you sponsor this kid when he wasnt even the number one player . But thats been under arm ahours whole strategy to do more sponsorships. I dont know how you figure out to make it how do you figure out, you couldnt even tell, the man that was leading the thats right. Do you know who the last amateur to be leading, or maybe to win, i think, was bobby jones in the 20s. And the last person to win the first three majors too, i think was hogan. So this is so awesome whats happening at the open. Its nothing thats really going to like 9 00. So dont change the channel now. A havei have a quick story. A great new study came out yesterday from johns hopkins, there may be markers. Looks like there are actually markers they have discovered six years out there to tell you in advance that you have this. And maybe get you on drugs earlier. Some people did not even know it. But to the extent that we now have how much of a difference does six years six years . Believe it ive seen it a couple times in our family if you could get out six years ahead. Even if you could get an extra two or three years if you have a better sense of whats going on. Its a lot different than for somebody in their 90s that gets alzheimers. Like parkinsons, the heartbreaking. Would you want to know . If i was going to be how old . If i was going to be 60 or 70 yeah . Lets say late 60s, somebody says to you, you know what this is going to happen . I think by then by the time im in my late 60s, i think well be much better at understanding what about today . Would i want to know today . Yeah, id want to know. I think there are things that you can do just you know a lot of word games. Probably would do a lot of word games. Spar with you, yeah. In the meantime when we come back a game of ceo says. New finds in a major survey of Corporate Leaders with everything from firing finance to expectations. Well talk about that in just a moment. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . A new season brings a new look. A chance to try something different. This summer, challenge your preconceptions and experience a cadillac for yourself. The 2015 cadillac srx. Lease this from around 339 per month, or purchase with 0 apr financing. Xco0 a new survey of ceos just out this morning. Talking to more than 1200 executives on economic outlook, growth and concerns. And the global chairman of cpmg. John, you do the study every year. How is this years finding different than last year . Well we can two things differently, we broadened not just ceos, but ceos around the world. We have shortterm outlook. Confidence is up looking around the world, compared to last year, sing the strength and increased confidence of ceos around the world is really interesting. But whats interesting to me is that when you look at the optimists on the economy, on growth, on hiring you see 69 of ceos in europe optimistic 66 in asia. Only 52 in the u. S. Why do you think the u. S. Executives are less optimistic than those abroad . Well weve got to be careful with that what were really asking is compared to a year ago, are you more confident on where the economy is going. Frankly, the optimism in the u. S. Has been up for a couple of years. I think what were seeing in those percentages is just a bigger jump outside of the u. S. We have europe, a year ago, when you look back, kraefceos were despondent of what it used to be. And what about concerns . Cybersecurity just mentioned, but the dollar is what we care most about. Its interesting when you ask ceos what are the biggest concerns that theyre focused on its growth. Its geographic expansion. And certainly, regulatory which we talked about before is high on ceos lists. I think the surprising thing is how strongly this concern about competition in the market place is escalating right now. With ceos ranking as some of the highest concerns about losing countries to other competitors. Whether my products are going to be relevant three years from now. And the things that we can do to invest over that period if were going to stay in the strong position that we are today. Thats what theyre concerned with talks to ceos in the market. How does this had manifest in the market . We can say ceos are optimistic about growth but actually at the level where seeing people do acquisitions because they cant get Revenue Growth. So how does the optimism actually manifest itself in day to day . Make no mistake, this is still a really challenging economy to realize both in. While people are confident that the world is Getting Better growth is hard to come by in a lot of sectors. So i think when you look at the survey findings ceos are talking about doing certain things but manifest itself. Talked about increasing activity. Do you not think thats an increase in that . I think definitely outside of the United States, thats the case. From the u. S. Standpoint companies are getting more bullish over the last couple of years and feeling that there are still opportunity to be had. If theyre as bullish as youre talking about, wouldnt they be making big capital for Home Business as opposed to the buyout . I think thats reflective of how tough it is to realize organic growth. Is that the reason why kpmg is doing those deals youre speaking of a ceo thats doing a deal now . Listen i think that was more about expanding in a particular niche area it wasnt as much about expanding revenue. Theyve got revenue coming out of their ears. You dont even need this. But, you know andrew to your point, i think whats really heartening about this is the highering. Thats projected in this this. Its leading to ceos saying over the next seven or eight year 78 expect to increase hiring most of it significant. Half are saying all hiring is 6 to 10 . Is that going to happen here . Thats pretty much consistent across the globe. Can you come up with kpmg stands for . Its 6 30 in the morning, i can still do it. Theyre the founding partners. Coming up dave griggs of the british open is coming up. As we head to break, check out the futures as we lins to bcsc coming to the garden. Weve got ticks. Be right back. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Wild weather conditions forced the first monday finish since 1988. R it was good for me this monday finish. This is outstanding. Not good for the rest of the country, though. You have to call in sibling. It provided a sick note for all the folks that needed to call in sick today on their own twitter. There it is actually. This is a classic final round in the making. Not just Jordan Spieth. Im picking him, obviously, i wore him down for today and brought you on the show. You did. You got an am cure t. First amateur couldnt win since 1930 with it. Is unbelievable. Fine 27 the last time somebody led after three rounds also bobby jones an amateur. Watching Jordan Spieth at this point. Im not going to say its boring. But he hits the drives so consistently. He hits his irons so consistently well. It makes the course look almost like its not difficult. You see phil tiger. What you are seeing there is the difference two spieth right now the puter. He had ten fewer putts in round 38 hand the 2. He got mad and birdied, birdied, birdied. A lot of players get mad, they do the opposite. He plays well angry and gets bettered and better as the pressure comes on. Tom watson plays angry . He admitted that. I never seen a golfer like ha. Have you seen a millisecond of this tournament . I have. Will you go home and sigh the leaders tee off at 9 20 . We saw a summary on sports center. Does that count . No. Again, i like spieth. But there is Louis Oosthuizen who won at st. Andrews, he has been unbelievable. Jason day was the 54 leader at the u. S. Open and the british open. Hes so cool. If jordan doesnt pull it out. Id like to see jason day. 27yearsold suffered from vertigo at the open. He had an inner ear thing. An interesting financial note on this one you could have steve day, oosthuizen finishing second because an am cure cannot win the money. So if wall dunn this am cure wins, the money goes to the second place golfer for 1. 78 million. You heard a statistic at uab. He was sort of average. The best round is 67. He posted a 66 in the third round of the open. Again, you look at the difference between this kid who is actually older than spieth and dustin johnson. Its the mental edge this kid has, hes comfortable. Confident. He wasnt panicked. You see the greats. How does this young am cure do it . He is going up against the likes of Jordan Spieth. Who is younger . Unbelievable. And you know, there are bunkers in the middle of the fairway. Terrible. Or you got to play it backwards. Look the smythe slam is coming into focus. He could be the first to ever win the grand slam, ben hogan won in 53, didnt play because the timing didnt work out in that era. You want to talk about david, who is one of my part first at the 18th this year. David did you value, the nicest. He had a reputation at one point. I didnt know him ten. The greatest guy to play with nicest guy. Outstanding. To put himself if contention at one point until everyone went out there and put up low numbers him speaking of low numbers, there are big scores the day before, didnt he have to birdie 18 to make the cut . He did. He did. I cannot recall that one. You have to get your eyes a little lower on the leader board. Thats the story. Easy guy to root for. I think he boeing did 17 or suspect, had to come back and dig beep. He was off the radar, he was thought to be done in the game of golf. Now hes back. There are five guys right now fior six under on the course or in the clubhouse. It will take a low number. Hows the weather . Its cool rainy, a little windy, still low scores softening up the green, it will be awesome. Thank you. You look good. You didnt shave. Coming up when we return we got the top stories, Quarter Results from Morgan Stanley, the numbers and instant reaction. Greek banks are back after a threeweek shutdown. Robert hormack joins us. The return ocuba. Diplomatic reeces officially restored. Michelle Caruso Cabrera is there with a live update. Lockheed martin agreeing to buy scorecy buycy buysikors can i helicopters. Live from the beat of new york city this isin this is squawk box. Today becky quick has the day off t. Dow opens higher about 17andahalf points higher. S p 500 opens a pointandahalf higher and nasdaq a point higher. We are watching gold dropping to a five84 low earlier this morning. It traded below 11 humidity an ounce for the First Time Since march of 2010. In the meantime, jc morgan . Morgan stanley coming out with earnings sample the comparable number is 79 cents per share, estimates from analysts were for 74 cents a share. This looks like a beat on the bottom line. On the top line the company is reporting revenues excludeing adjustments made for Debt Securities of 9. 6 billion. Compared to about 9. 1 billion. When you look at revenues the only did at that time beat was wealth management. It was inline. Can you see morgan standly shares in the premarket up 28 and a third percent. Echoing the large cap banks. So far this earnings season, which is better thanthanexpected earnings. Today, greek banks opening, closed three weeks ago to prevent a financial collapse. Limits on withdrawals will remain in place up to 4820 euros in greece they can withdraw. Thats in addition to restrictions and wire payments abroad and taxes also take an effect today. Duties on food and public transport in greece jumping from 13 to 23 , that of course was a condition of the bailout, with i is still being negotiated. Poly, the u. S. And cuba are formally restoreing ties they will raise over a mansion that will serve as the countrys embassy in washington, d. C. That happens around 10 30 a. M. Eastern time. A cuban flack was added to the display, just after 48 00 this morning t. U. S. Embassy in havana will also open today, john kerry visits next month. That is the first time diplomatic relations have been restored. Michelle carusocabrera is joining us with more on this. Lockheed martin has agreed to buy sikroski for more than 8 billion. Its expected to make lockheed better and expand the sales. The deal is expected to be entered today. They watch for a cash deal if it involves stock, it could be a little more complicated to actually get improved. Diplomacy in the headlines drops on Irans Nuclear program and a third growing bailout in the next week he is the vice chairman at Kissinger Associates and former Goldman Sachs vice chair. He is also a former state department under secretary for Economic Growth energy and the environment. We can take on a lot of things here. Lets do greece first. There is a piece in the Financial Times the past three days talking about the relationship between germany and everybody else now and how much france is upset and portugal is upset and italy is upset just about how this all has gone down, what do you think it means . I do think there is a big division if new york germany and other countries on the same side as german, finland, so vacia. Theyre worse than finland. Tougher. Theyre certainly more assertive. They want a tougher deal t. Reason is many feel there there is a difficulty theyre not getting a lot of money and they want a tough deal t. Germans believe in rules. They believe, effect far whats happened is the greeks have constantly gotten money and really fought done what they say theyre going to do. On the other hand, they care about portugal . They do and i think they should care about france and i think that there is now a real divide between those two countries. Germany has the stronger voice but they can fought have europe working well if they dont have a seasonal relationship with the french. I think they want europe to hang towing. Other countries following, they dont want a deteriorating europe. They need it its helpful for them. If you get social deter youration in greece it strengthens the role of russia. Its an unstable part of the world yaempbway when you look at the eastern nation. They want tougher measures on the part of the greece. Some of the things theyre asking the gross to do like Regulatory Reform actually benefit the average growing. So i think the germans are trying to play both ends against the middle. They want to have stronger rules. They dont want the growings to leave or to deteriorates. Now you have the lines both saying maybe it would be a good idea to have a euro zone finance minister does that add a layer of complexity or is that a layer of outcome . If you dont have a common fiscal policy which they dont, its hard to have a single european financing. On the other hand, a greater degree, which the germans and the french did try to do have a greater degree of fiscal consistency, that is to say you have a budget deficit above 38 of the gdp. It didnt work the french and the germans, themselves werent always able adhere to that. I think america el have done their best to take the german position but not to appreciative to the extreme out of europe. Can we switch gears and talk about iran . When we sat down we started a little debate ourselves, with i is you look at the deal at least within 108 to 15 years, weve decide they could become a nuclear power. Would you agree with that statement. They could, if they knack, do move after ten or european years, the United States still would have many options and it said it is going to be vigilant if they decide to break out afterwards. There is nothing in this agree emthat prevents the United States and other countries from taking action against them after this period. You made the argument over the next five ten years, they can actually the u. S. That is and everybody else will be able to monitor whats going on. Thats my biggest worry, we will not be able to monitor. I would say the Monitoring Program seems like a whole lot of bunk. Anywhere anytime. Its not it may be anywhere but fought any time. If i want to inject what theyre doing, i have to call you up say, hello, they can appeal this this can go on 20 30 day surface. At least. Thats my concern is the monitoring process, the access process process. Our secretary can change the configuration of your centrifuges, frevenlgs you cant do that quickly. Even if they play by the rules, havent we are we delighted . None of the guys none of the americans are coming home. Not one word about changing their behavior in terms of funding terrorism. There are two issues that i have. One is the monitoring issue. I think were going to have to senator corcoran will have hearings, those hearings americans should listen to and just particularly on the question of monitoring. Besides a legacy for carrying and we got, what we did was, they were moving despite all the sanctions, much more closely to a nuclear breakout. Do you believe that . For years the Obama Administration said they werent there. It wasnt going to happen. Now all of a sudden they said oh my goodness if two months, if we dont do this. I dont know if its two months or not. They certainly will have less capacity for a period of time than they would have had there been no afwreemt. The second is i worked on the sanctions, it was very hard to get countries to adhere to those sanctions. At the current moment if the deal doesnt go through, a lot of countries are simply not going to adhere to the sanctions and the sanctions will likely fall apart. The other thing to remember is that the sanctions that enable them to get their 100 billion, they will be able to get the worst is 00 become t. United states will have sanctions except Agricultural Products and medicine will find it difficult to play with iran. They will have 150 billion more they can use to fund terrorists. To do a lot of things. To port the revolutionary guard the cuds forms. I have two major concerns. To support the assad regime and all the other this is the question what they have done is strengthen tear role as a Regional Power because tail have more money to utilize for all things theyre doing in the region and the Supreme Leader kho mr. Meney. You got a better deal. I dont know if i got a better deal. Were dealing with the five plus one. Is it worth souring relations with key allies like this in saudi arabia . This is where were going to have to do a lot better not just with israel which we certainly have to do a lot more. Ash carter is there today. Saudi arabia, the gull countries, this is the big worry i have that is that our allies in the gull the israelis and the other arabs will feel more put upon because they think we have done something without consulting them fully and they think now iran will be in a stronger position. I think it would have been harder to get a better deal at this point. And it juz set back the iranian program. Are they properly monitored . I want to see in the hearings. Are you sure there wont be 67 . 67 . You sure there wont be an override, 67 . Im not sure. Im not sure. I think you got two very good senator was will be conducting these hearings. What is schumer going to do . I suspect hell be very skeptical of the deal. I just wonder if it is it may not be. I can tell you, though, if its not approved for congress in effect overrides the president , the other countries are going to go ahead anyway and trade with iran and they will not interfere with sanctions. They will say a deal is reached t. Americans didnt adhere. So were in a difficult position now. All the other countries will move ahead one way or another. We can veto a resolution if we win. That will come up before. Its like negotiation, selling a house or something and we arrive at a deal and the other family is dancing in the streets, shooting out fire crackers, i know i messed up. Someone is that happy about it. Let me make a point about that. You see these people in the streets, these are 20 25 30yearold people. Theyre not necessarily. The whole political gamut. The whole spectrum in iran. Too conservatives. Their hope. Theyre happy here. The conservatives. Who is dancing in israel and saudi arabia. Let me tell you a point if tehran t. Conservatives were not necessarily happy the extreme leader told them go along with the deal. The people in the streets are mostly younger people. They were celebrating largely because they thought this would bring iran back into the global community. These are mostly younger people who want to be a part of the civilized international world. Thats what theyre hoping for. It would be nice if they were to extract it. Actually the behavior to make the regime itself civilized in the real world . They unfortunately dont have control over the systems. So the demonstrations dont indicate they made a big victory over the United States in the minds of the young people. They are pro average iranian. The people are deeply passion natalie antiamerican, antiisrael. The president has a nobel prize every third weekend like visitation rights wouldnt that have been easier . We are dealing with a complicated situation here. The question is not getting a perfect deal. We never get a perfect deal. Your answers are serious. Anyway, thank you, bob. A good party alliance. I dont understand. Im waiting. I have a kissinger connection him does he just fought watch . I dont know. You guys have discussed this right . Hes on the other side of this . Hes skeptical. I must say, there are a lot of points i still am fought clear about. You wouldnt know it from that interview. I told you, exactly, monitoring is the single biggest problem, if we cant get clear ideas with a high level of ashurngs i feel less confident about the deem. I think we need to have everything hashed out. Arafat, jimmy carter, right . Id rather get a real win. A golf tournament. Like a physics. Not in economics, god, thats even worse. Lets get some news on horizon pharmaceuticals. No one is going to associate you with all that. It was fascinating, sitting here. I discovered yeah. So horizon is in this unrequieted 3 billion bid. Theyre coming across with the second Quarter Results, coming in with revenue at 1872 million for the Second Quarter, topping analysts estimates of 1838 m raising their full year guidance for both sales and adjusted ebitda sales up to 6860 to 680 million. So a bid for depo med. Theyre not interested in. A company saying they are hoping this will give shareholders confidence in the deal. Well be talking with ceo tim walburt later on with jaim jim cramer. Up about 58 on that sekd Second Quarter preannounced. Hoping it gives the shareholders a willing inned to jump in. Depo med has not only rejected prior overture they put a poison pill in. Yes, they are stiff arming horizon, saying they are completely not interested and verizon saying they got an overlap in shareholders. People should be interested in this. Meg, we appreciate you bringing those footballs this morning. We will tune into your interview later on. Coming up, the Economic Data a busy one for earnings whark to watch in the markets this week thats coming up next. Then a live report from walk where the Cuban Embassy will ap for the first time in decades. And the money mistakes millennials are making the author has financial tips for the young generation. Stay tuned. Stocks coming off a strong week, the nasdaq posting its best week since october thanks, to performance from google. Here to weigh in on the marks is anastasia amroso. Its good to see you. We have europe up today, coin up today does that mean the markets can focus on earnings . Last week was a celebratory week for the market. Greece is hopefully behind us. Coin which is really important. We seen a turn around in chinese data at least for the month of june. Its now back to janet yellen the feds financial earnings were quite solid last week. What was your take away from Janet Yellens take away if that is focused on the feds . Joe seems to think a rate hike of 25 basis points is coming in definitely. Thats what i want i say what i want not what i want to do. She did say a rate hike that comes sooner but is more gradual will be understandable. I think december is very much on the table. I think what is happening with the economy right now. Its not its lacking strength. There is all the fundamentals sustainable in the u. S. , what is fought there is momentum. There is not this simple this acceleration in the Economic Growth a. Perfect example of that is retail sales football last week. Retail sales disappointed and if you look at the growth of retail sales with gasoline prices low or unemployment lower, the growth rate is lower than last year. So i think thats the reason why she is saying she has to lift off. The economy is doing better. Where do you think that momentum will come from . There are a lot of signs that maybe june was a more positive blitz, thats an indicator in a different direction. Yeah. That is the crucial question you think its lower in gasoline prices and foreign rates, higher housing, higher stock prices it boils down to wages. If we look at wages over the last ten years, actually inflation adjusted medium wage has not risen. Its fallen. That is what is missing in this piece of the puzzle. So final take away at going into this week we have earnings from cocacola, Morgan Stanley. I do want to add to the u. S. Equities this year. I think what you have to consider is that the aggregate value on the market is fought there, right . The stockmarket is not so cheap. I think the value reside underneath that aggregate. You have to look at individual stocks and sectors. If. If you see Revenue Growth it will be under that stock . Revenue and earnings group. Coming up gaugeing the economic plan tea face off on the best and worst proposals on jobs and taxes. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. Cheaters beware hackers have released large hunks of user data from the website Ashley Madison, promising discreet encounters for married people. The companys slogan is quote life is short, have an affair. They hacked into the Parent Company to shut down the service permanently, if they dont comply or continues releasing records for approximately 37 million users, between profiles customers and several fantasies, they say they are working to contain that week but den call your spouse. 37 million who are on the site. I dont believe it. I dont believe it. When you said that you wanted to do the Ashley Madison story earlier, i thought i said why does he want to do something on a retailer on the littles. That is like with just the end of days. Its like this is very popular, so you have a million married people going on to have affairs. Now its going to leak out. Theyre supposed to slip. Theyre not supposed to decide to go to a website to pursue one. Why get married then. Why get married . Im not discreet. I have never been to the site. I just want to be on record. You just got married i. I have never been to this site either. Is that what you want me to say . Why get married . Get divorced. Knock yourself out. Go crazy. Go to pla tos retreat. There are people trying to get crazy without getting divorced. They might be. I hope they do get out. We can tell you about diplomatic ties with cuba set to be restored into washington, d. C. We got michelle Caruso Cabrera live with a report when we come back. Urance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. Welcome back to squawk box on this morning. U. S. Employers are having trouble finding skilled workers according to a survey out this morning from the National Association for business economics. 35 of economists said they are experiencing shortages of Skilled Labor in the most recent quarter. Grocery chain ac filed for bankruptcy the owner of path mark listed assets and liables of more than 18 billion. Amp has been in bankruptcy before. At the box os par velsantman taking the top spot with a 58 million debut. Universals train wreck with amy schumer also turning in a strong open 32 million in tick sales. That makes it one of the biggest comedy successes this summer. And also we should note a company deal that we have been talking about all morning, lockheed do you el to buy sikorski is official. Its buying it and has been undergoing a revealing of the assets. Buyers say that price tag could be closer to 9 billion. We will get you that release as soon as we have it. Its on the universal . I did not forget. The jurassic 5 manyle. And mignons. They will probably do well. The car point of view and then Jurassic World. The question of course whether analysts and investors start to look at Jurassic World and say its a repeatable event. Thats the big complication. This guy will be back. We had a bubba gumpf. Diplomatic relations between the u. S. And cuba officially restored today with the opening of the Cuban Embassy in washington, d. C. Michelle caruso bab rer ra joins us. Are you going back when this is all over michelle . Reporter maybe. You are right, angie, today it is official. This is the day that the u. S. And cuba reestablished relations for the first time in 50 years. Behind me is what used to be the cuban intersection, as of today, it is now the Cuban Embassy, there will be a flag raising later this morning him as for the United States the state department is trying to be as unceremonious today as possible it seems the raising of the cuban flag happened at 48 00 a. M. This morning shall we say there is no ceremony happening at what is now the u. S. Embassy in havana. So today is the day. Heres whats crucial now. This is just the first step. If cuba is going to reenter the World Economy there is a lot or hurdle to go through t. Cuban government owes a lot of people a lot of money. Lets go through some of it. First of all, 5811 certified american planes back which fidel castro took over in the early stikts 60s. Wars full of dusty old flames. There are certified claims cocacola, major corporations and the out standing face value add to that something called the paris club debt. Money that the cuban government owes to oths cuban governments. Thats 15 billion and there is hond club debt. Debt that cube owes on defaulted bond they issued in the early with 80s and paid almost nothing on. There is a lot of debate a. Lot of london hedge funds own that 8 cents on the dollar then already the exiles that left cuba and had tear family assets seized. We spoke to the gaut po sugar factory. They stock traded and the daughter to the founder still remembers the day they got the call and that their father had lost everything. He got this phone call and he just turned around. He said theyve taken over and we were like what do we do now . Reporter how much those exile claims are worth . In the billions. There are many in miami who expect if they dont get their houses back they expect to have some money. Who will help . Dominique straus con, one and two. Megan only one. Now hes actually going to advise on the negotiations of the paris club and the london club guys back to you. Thank you, michelle. We appreciate it. In three months cnbc will be hosting its third debate. With so many candidates it comes with a variety. Joining me to navigate these is tony frado and gerard bernstein, a senior fellow on budget and policies and priority and both are contributors to cnbc. So all of their economic woes are a thing of the past. Given the, i dont know generous relations. Not really why theyre both smiling. Tony weve talked in the past and i mean i just look at an overall issue, my point is you can get over around some of these social divisive issues that the republicans seem to they get that in their way a lot. They should own economic. Jared would say, no no we can talk about middle wage and a champion of the middle class. It would be nice to deliver on prosperity for people and republicans should own that. They dont, i dont know. They need to read arrer chur brookes new book. I think everyone should read his back. Its a trick book. Are you right. There is a great opportunity to talk about you know pro growth economic policies, obviously, what are we up to 19 voices on the republican side with differing takes on it. But there are some good ideas out there i think there is wages and employment. Its a good opportunity. We will hear from jeb and scott walker. Rubio they all have a lot of ideas out there and its going to be a good debate. I cant wait to see who prevails. You know im supporting jeb i think it will be a really good debate. I dont want to be mean but the tank is empty. Youve had six years of trying to do redistribution to help people in need theyre worse off. You need growth something more. Wages will go up. The disparity will pharaoh again. You need growth. You need 38 or 48 gdp t. Tank is empty. Heres the thing, heres the thing, i agree with you that growth is key. But i also think its important for all of us to recognize that accordingto nonpartisan analysis, the potential growth rate is something around 28 . If you look at the growth rate of productivity and the labor force, that gets you to around 2 maybe 2 first half if you push it. Thats about where we are. What has to happen to achieve more growth. I dont disagree with you or tony on this point. I think distribution is key. Growth is critical. You have to think what will help the economy grow faster . There are two bake ideas. One is investment. The other is increased labor supplies. One of the things i like about Hillary Clintons platform is she is drilling down on both of those. She has an idea of capitalize gains. She also has a lot of ideas of breaking down barriers to labor forced entries for women. That will help increase the supply side oft the economy and it could push you up growth. Its absolutely necessary. Its not sufficient to reach the middle class. Therefore, i would disagree that somehow we dont have to worry about that. Inequality is alive and well. How would you tinker tony with the growth ideas of the republicans to try to maybe, i dont know at least give sol not lip service, is there a way that you can adjust the dials of supply side growth to make sure more trickled down because i dont have a better word for it . Yeah. Thats been a great program. Republicans are, you like trickled down government. You got your choice trickled down government or trickled down i dont think its that dirty of a word go ahead, tony. I think the way is two ways. We want to talk about how to increasing investment in r d, bake research increasing investment in firms, right, thats where we will see the greatest generation of productivity. We need to reverse this recent trend that weve seen in work force participation. Theres ways we can increase potential growth t. Other thing, tow, a lot of their candidates are talking about this is increasing the competitiveness of individuals. Thats really something we need to think about. Education, skills, because if you think about what americans are worried about, theyre worried what their kids will do how they will compete in the future when the robots take over, the chinese take over. What other jobs will be there for my kids . So education and how they acquire the skills to compete in a Global Economy. Jared, lets redistribute opportunity. Why dont you come up with stuff there . Whats your best idea . I dont know if we have to redistribute productivity. Tony frado is making me nervous. He makes a lot more sense than the candidates. The idea there is that it wouldnt take much. I agree t. Idea is you are talking triple down economics. Thats what mitt romney ran on and people before him. The idea is if you give tax cuts to rich and hope it works. What tony is talking about and i talk about as well great investments, i agree, its better to invest in opportunity. You have to precisely through the education and ideas you heard about. That takes resources that doesnt come for free. Its not going to be if you werent in bed with the teachers union, the democrats cant do anything. Sex education. Too many sacred cows. We saw the conflict with secretary clintons speech the other day. She was talking about uber and the sharing economy and attack on uber. I dont think they were unionized i dont think Hillary Clinton suffers from the kind of disease you are talking about. One of the things she has consistently done is positioned herself not unlike her husband, in a way that shes willing to talk about anything she is putting all kind of things on the table. So i think keep your eyes on that. It seems like she is trying to position herself definitely to the left. If we look at what bill clinton talked about. Spousal reform welfare reform balancing the buck pro trade. She cannot run on those things. I dont know. Look, the economy has changed since the days of bill clinton. We had numerous growth cycles. We saw on this show earlier, we saw them struggling to get ahead. I dont think you can run on a bill clinton platform say today is 1992 its not. You want to comment on donald trump . John mccains heroism. I have disagreements with john mccain. The guy what do you want him to do . Hes dead. Hes out. He will not win the nomination. He can only be interruptive. Should they let him in the debate . They should not let him in the debate. Some think of a democrats for Trump Foundation getting started. It will go handinhand with the rape fant sidesing bern fisanders . This guy is bad news. Okay. Yes, bernie is a real role model for a lot of candidates. You may not love Bernie Bernie is better than trump. Democrats can police democrats. I dont want to see donald trump vying for my partys nomination. I agree. Both parties have their problems. Thank you guys. When we come back Financial Advice for millennials. The money mistakes the young generation is making john spooner explains how to fix them. Squawk box will be right back. 08. Welcome block to squawk box millennials have gotten a bad rep. They may have better financial habits than older generation, john spooner is here to discuss this. Hes an investor at Morgan Stanley. He has a new book out no one ever told us that. Money and life lessons for young adults it helps Young Millennials to grow up and be more book smart. We were discussing during the commercial blake, sometimes millennials, i want to say, im not going to paint a huge brush, a broad brush here there is stuff that can be annoying there is an annoying factor to some of the pillmillennials that dont want to take advice . Its a huge problem. What is that about . This is the most challenged generations in many way, almost a clueless generation in so many ways. For instance, there is a huge Advertising Agency in my building Downtown Boston and going up on the elevator and down there are 5800 young people employed there. Four get on the elevator on one floor, each individually on their smartphones and fought talking to each other. So i started to ask them about a year ago where do you see yourselves in five years . Around i get two answers. One is i see me working for myself. They have no idea how thats going to take shape. Its kind of a knee jerk answer. The second answer is where am i going to be in five years . I dont know where im going to be next week. This is typical. I talk to dozens of young people every week. I get totes across the country. They all say, hepp help me can you help me with my pitiful life in the future . And its an education problem its clueless in reality. I hear from people all over the country. What do you want to teach them if all of a sudden its at the same time . Every corporation in america has almost at the top of their list this subject. How do we engage millennials and get them to buy our products and services. This is a book that educates millennials in a society of 3800 million americans, 78 billion people on the planet. You do you separate yourself from the crowd, make yourselves a little different . So the education problem, its the schools are not teaching young people Practical Solutions to think. Second the problem is the home where parents want to be buddies with their kids not teach them the eternal lessons about what they will have to cope with the bumps on the road and the tough stuff when they get out into the world. And i find that these kids are desperate or find counsel, im hooked on my show silly con valley. Have you all these brilliant nerds entitled and but as brilliant as they, are if you watch the show theyre clues will about how to operate in the real world. We have a not so clueless millennial on the set here. Im not a posed. People still think. They do think joe is a millennial. I have to say you have a lot of good advice in this book about building relationships, culling people that have been there for a long time about being more humble. Right. About your job. I have to say as a millennial mile the single most common question i get from people is should i go to afternoon old lying company with a lucrative long match or look for a job at a company that will give me equities . What advice would you give them . Well when you are young you have to think about getting to the f word eventually which is Financial Security and freedom how you do you get to the fword . I was taught by my mentor in the business years ago, if you want to really create net worth and you dont own the business concentrate, dont diversify, a different concept and a lot of modern portfolio therapy. So along with your 4081k, with young people 25 to 40plus, you should go for longterm growth of your capital. It should include diversifying your 4081k plan. My concept in addition to this is find something you call your stake in life company. Something you believe is going to be around for the next 20 years that you can accumulate slowly and every single time you get bad markets, add to it. It should be something you believe in. Congratulations on the book. We got to run. Its called no one ever told us that. We appreciate you joen spooner coming on today. Thank you. Coming up big movers, the stocks to watch coming up next. Well, because it tells us something powerful about progress that whether times are good or bad, people and their ideas will continue to move the world forward. As long as they have someone to believe in them. Citi financed the transatlantic cable that connected continents. And the panama canal, that made our world a smaller place. We backed the Marshall Plan that helped europe regain its strength. And pioneered the atm, for cash, anytime. For over two centuries weve supported dreams like these, and the people and companies behind them. So why should that matter to you . Because, today, we are still helping progress makers turn their ideas into reality. And the next great idea could be yours. Seven out of ten Power Outages in the us are caused by weather. But utilities can now predict where the power will go out, within a few city blocks. Working with ibm theyre combining micro weather forecasts with detailed data from local sensors. To predict where outages are likely to occur. And send crews exactly where theyre needed, when theyre needed. Ibm analytics from the internet of things is making energy smarter every day. Coming up. Toy wars, hasbro earnings out. The ceo brian goulder will join us next to break down the companys quarter. Well be back if a moment. 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. Lease select cts models in stock the longest for around 399 per month. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. A big week for the markets. Earnings hit high fear with nearly a quarter of the s p reporting. The strategist sets up the week ahead on wall street. Donald trump stirring the pot yet again, targeting john mccain. They talk president ial politics and trash talking as the republican nomination race heats up. And a city full of self driving cars a. Multimillion dollar experiment about to open its roads for the first time. A look at how Car Companies like ford and gm will use the autonomous city to improve road safety t. Final hour of squawk box begins right now. Live from the most powerful city new york this is squawk box. Welcome back to squawk box on cnbc. Becky is off today. Shes back later this week. We are less than 90 minutes away from the opening bell on wall street t. Futures up 25 points. They havent done anything. They havent moved. Its interesting watching the nasdaq last week. Google was unbelievable as it got closer to apple, one two, three, now, apple, google. Microsoft. Adding 65 billion in market cap in one da i. On that one day. Amazing. Check out the markets in europe this hour which more tends good things for us. Portends good things for us. Italy up almost 28 , positive arrows everywhere. Asia was not bad. Well see some of the other stories investors will be talking about. Greek banks are reopening. Putting limits on a ban of wire transfers abroad. No date though on when the stockmarket might reopen. Meantime increases if valueadded tax agreed to under the bailout have taken effect. Lockheed martin buying the sikorski aircraft. Tax benefits result from the deal. Utx thorgz a repurchase of up to 75 million shares this morning. Barclays reportedly plans to cut more than 30,000 jobs in two years, this according to times of london. They fired a ceo earlier this month. The replacement, who wants that job. Who would want to run a big British Investment bank anymore . Bill winters. Bill winters might. I would not want that. That is a company in an identity crisis. Youd have to take a pay cut. Exactly. Among other things and are you not that popular in the u. K. If you are running a bank. No. Should we talk about other stocks this morning, what do you think . He wants to talk about my popularity. A few stocks on the move Morgan Stanley posting better tan expected earnings and revenues. Sales have risen sharply on the news, they have done something no other Bank Reported so far, they managed to see revenues rise in equity and fixed physical trading. Amazon upraided to outperform from market perform. The analyst says the company has gained traction in a number of retail markets. It will be the number one u. S. Apparel retailer by 2017 on the back of that upgrade. It looks like shares are up shy of 28 . Front and center for investors, earnings a quarter of the s p 5800. Tail be in focus for investors this week. Lets bring in Jamie Paulsen at Wells Capital management this morning. Ahead oof these earnings reports, would you put money down, jim, today on the assumption we will actually see top line and bottom line growth this week . Well, you know i think the earnings season, andrew so far has kind of gone like it has in the past here where everyone you know advises down on earnings and come into this season expecting a 38, decline. We will have another outperforming quarter with slightly low single digit rise in earnings results. So far, thats kind of been the case. Most companies again outpacing. That means you want money down . Well we might go up a little bit here in the interim on better earnings reports, maybe better economic reports here. Im still concerned, though about the big event which is still hanging out there. I think we have been through these warmup acts with china and greece and puerto rico and the like. The big event is yet to come. Thats the fed. I think it will happen yet this year. Even if it hasnt were talking september or december at this point . Oh well well see. I lean more towards september. You think that will knock all these gains offer . Thats going to be a onetwo punch . Well the history of first fed tightenings. Its been 150. It hasnt been a good record. The market did well in the 84 following the 50s. Since fine 60 its gone down four of the seven years since then. In the next 12 months. Its only managed a 58 gain six out of the seven times. So it doesnt do well were going to the mother of all monetary using cycles. We are finally going to take the vote and skate right through that. Seems unrealistic. The fed will start this cycle because theyve waited so long at one of the highest values. If you are right. And investors are watching you this morning speaking what are they supposed to do and just to put it in perspective, you had this view now for several months. To some extent the market was sideways you would have missed these dpans in the past couple weeks. Absolutely. I have kind of been more cautious since late last year. I still a. Thats kind of my play. Im not saying it couldnt go higher in the intricate i think we might get a full blown correction yet. I think the main catalyst to my concern is the fed changing its stripes, we finally move to an upward rate cycle in this country. I think you move to the rest of the world. I think most of the rest of the world is not in a situation the United States is in. Most of the rest of the world has not reached full employment. They do not need to start raising rates, moving towards more hostile policies towards the financial markets. Most of them are much earlier in their earnings cycle. They have much more earnings upside because the Profit Margins arent maximized already. The Earnings Growth hasnt slowed down. Most perform in the occupation in the last three years. So i think europe and japan are the merging worked. The commodity countries they had in australia. They got pound last year inflation kernlts all offer you to hide out if you will. You want her to go in september or you think she goes in september in now i think she will. And i want her to. Thats where im at. Me too. Just to show she can. She wants to. She nodes to. Agree. Joe we will tighten from the lowest unemployment rate. Quarter point. Ouch its too tight. 25 basis points. No that hurts. Thats ridiculous. We dont call it tight. We need another word. I agree, normalization. Still not normal. Its a c change from what this market leads to. I dont think you have been wrong either. If you are timing every 5 move you have been wrong. You have been saying sideways what are we up a point, a percentage point . Yeah. You will leave it there. I wish they would have started it earlier, which is good. We will go into it with vulnerabilitys, the longest period without a correction. There is vulnerabilitys the feds will start this process with. Theyre not around anymore. Then you got jobs. You got john hank. You know. You got to get a lot of love. Jim, thank you for joining us. We appreciate it. A toy story. I will talk to brian goulder. Hasbro revenue, benefiting from its boys in the preschool division the ceo joins us on the squawk news line. We were talking to you in relation last week. We had a sidebyside of hasbrought vs. Matel. We have the point they have tieins with other popular Media Connection and whether its movies or something else. Barbie is sort of stuck out there. Its barbie you even have Jurassic World coming up. As a company, we are trying to focus on stories and merchant experiences, thats true for our franchise brand. You are right. We have lots of Great Entertainment partners walt disney universal Jurassic World and performing very well above our expectations. Is there anything you have introduced not tied to somethings like that or a videogame . I said i would hate to try to attract the ascension e tension of kids that can have an unbelievable experience mesmerizeing with video games . Tom hanks in big would have a real problem coming up with something that kids would want to play with. One of the biggest growth peers for the quarter is play dough. Its growing globally. Howd you get that going again . Last two years its about creating diversity, kids love it. Kids have done a great job. We had great growth this past quarter. Nerf is another brand, there is a certain amount of story telling and innovative product. With nerf you got guns. Those are blasters. What are you doing with nerf . Follows in football and stuff like that. You have blasters. Exactly. Days are numbered. Hey, brian, obviously, the dis fipartnership with frozen, Jurassic World is great. Do you think that being an independent toy maker is what made those deals possible . Issight 2020 . We have focused on rebuilding partnerships and our Partnership Came as a result of our building our girls business north of a billion over the last decade. We started ten years ago building girls, our expertise. We had the opportunity to do some business with them prior to frozen we are launching disney decentants. It comes out in the next couple of weeks. We had an opportunity to show them our expertise and we built our expertise. So worry very much looking forward to launching the princess and frozen doll lines in january, 2016. Did i see mr. Potatohead . You still got him . Of course. I love him. Yu to put a finer point on fridays, is there any reason you think you need to own an Entertainment Company . We are creating our own content right now. We relit our 1250th half hour of kids programing. Our programing is on the air all around the world. Transformers is on the air in more than 1850 geographys so ourer merging market business was up 89 . Shows were on the air in all those countries. You are a grownup. Brian, before we go play dough, i get you got a lot of things you squeeze it through and make things with it. Play sets are great. If you havent played with playdough lately. It comes out. We do a lot of playdoughs in the house. With the kids . Sometimes. I wont do it on my own. God knows with you. I dont know how you keep it fresh. I dont want to know. Anyway, brian, thank you. I appreciate it. Good luck. Hes doing well. Unbelievable matel. 46 over the last year. When we come back. Donald trump setting off another firestorm, politicos ben white will join us after this break. Center stage Quarterly Results. Ibm, microsoft, apple. The names you need to watch just ahead. Squawk box will be right back. Nz youve always wanted. But you better get here fast. Yay, daddys here here you go, honey. Thank you. Because a good thing like this wont last forever. See your authorized dealer for an incredible offer on the exhilarating c300 sport sedan. But hurry, offers end soon. Share your summer moments in your mercedesbenz with us. On to politics now. The big story over the weekend, of course, Donald Trumps attack on senator john mccain. Trump said on saturday quote, hes not a war hero he was a war hero because he was captured. I like people who werent captured. Donald trump on the today show this morning, had this to say about that comment. We talk about john mccain. I think its great. He is a brave man him all of that, we dont talk about the people that werent cap cured. That itself what i was trying to refer to and i think i did. And by the way, few see the news conference, right afterwards a few minutes afterwards, everyone was perfect. I never to the this was an issue. Senator john mccain on msnbcs morning joe. The question should mr. Trump apologize . I think he may owe an apology to the family of those who having ary piesed in conflict and those who have undergone the prison experience in serving tear country. Your reaction to all this. Why the political contributor cnbc and mr. Morning money himself . Is it over . I cant believe donald trump calling john mccain not a war hero. Is it over for donald trump . Yeah. I dont think so no. Wall street journal has a harsh piece out this morning, suggesting that republicans should be distancing himself if they havent already. Most of them are some saying he needs to apologize. Ted cruz not so much. He wants trumps voters. Cruz is a guy that is antiimmigration, has similar views to trump. He crashes, he wants to take the journal. They call out the conservative media elite. For letting this happen. Right. I am pribl for the radio people and stuff that have been pumping him up. Yeah that could be. But he registers in the polls. Therefore, he has to be covered. Anybody leading the republican president ial poll. The ling i thing, god bless you and the media. But bern fisanders, 25 from you know raped by three men as a fantasy. You get Ovarian Cancer from fought having an orgasm. Wants to change our system of economic what weve used and change to socialism and yet prepath r pass. What does he the huffington post, what section of media would you put them in . I have many good friends. Could we put it in the parity section of journal i. Rism . Its not covered far left. All these horrible republicans. 17 , they give him 23 or 24 hour . Whats the chance that fox decides, were not going to have a debate . There is a chance i think, if the outcry continues to ride i think it will be very hard for him to do that because of the numbers where he is. If we had a pullout tomorrow that was 5 and plunging they will have a way to get him out of the debate. You want him in that debate . Yeah. The only thing is if the elders say its an embarrassment. Ratings wise hes in there in the polls. Usa today among the postread newspapers in this country above the fold today he is polk so well after all of these. We are waiting to see if this knocks him in. Is to the media talking in severals . What about polling well . Its a fractured race right now. Hes number 28. He is not above 28. If you arent in the 20s . Let me say one thing each party with the establishment, with traditional establishment. I may not have a thousand words words. Both are satisfied, talking straight to people they come home to jeb bush or marco rubio or scott walker one of the more traditional candidates. This will be a funny story. Trump is leading the polls. He gets big crowds he will not beat Hillary Clinton. The comparison has been made a lot. They both have not well thought out particulars on policies other than everybody is a dumb my and an idiot and says things he doesnt agree with and build a big fence to keep the immigrants out and he will press china and take the oil. As they fire people up they are not people who will lead the country. Country. He does not want to be treasury 2nd either. True. Ben white, a real journalist coming up, so you want to be a millionaire . We are looking to help you out. We have details after the break. 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. Welcome back to squawk box. Who wants to be a millionaire . Online service redditments to convince 18 million users to do fate a dollar to a randomly selected user. You must be a user for longer than 30 days a history of activity on the site. To enter, you post a comment on the millionaire makers. The drawing takes place on the third friday of every month. Each previous attempt has fallen sort with the luckiest winner having just over 11 billion. When we come back next Morgan Stanley cfo speaking to cnbc about the banks Quarterly Results in the financials. That stock is trading off its 52week high. First, though, take a look at u. S. Equities futures. S p 500 up about 2andahalf points. We are back in a moment. Its a fact. Kind of like shopping hungry equals overshopping. Welcome back do squawk box paypal begins trading as an independent Public Company today following its separation from ebay trading on the fax under the ticker cypl. They will have the lower gas tax, alaska has the lowest then topping the weekend box afc, north american ticket sales the best to debut. Morgan stanleys latest Quarterly Results, Mary Thompson just got off the phone and joins us with details. John cruzan holding the first Conference Call this week. Morgan stanley delivering betterthanexpected revenue and earnings. They say they saw client flows. Lower volumes and a steady performance a standout revenue rising 30 . Calling it a balanced quarter. He downplayed reports that morgan is looking to expand this business after years of downsizing. While advisory fees were relatively flat cruiseen say Morgan Stanleys backlock remains strong and they are encouraged by the strategic level its seen. They managed to deliver improved pretax margins of 23 in the quarter. Morgan continues to build the loading business in this brokerage business. A trend he called cyclical than secular. Compensation rose and the comp ratio came in below the target terms in the first quarter. If wealth management, that target remains above the target of 55 . But it did decline in the quarter 57 . Joe, back to you. Mary, thank you apple, ibm, a few to report tech stocks. All right. Joe, we have a situation where the Tech Companies have influence on the overall mark. If you take a look at ibm and apple. The stock over the past year brought in Different Directions ibm has been a lager. Apple up by nearly 40. Lets take a look. Because they ran the number and how the stocks performed. Ibm we had a number of reports. They beat earnings estimates 19 out of the last 22 times. What happened is interesting. Its down 1. 5 after regardless whether it beats or not then its traded negative after earnings twothird of the time. Now, apple, a different story here with regard to the averages historically at least over the last five years. It as seen earnings estimates 19 of the last 22 times. Its averaged a half a percent gain. Now, the interesting part about this is its a bit of a coin toss positive 55 of the time all tow, over the course of the last two years we have seen apple trade more positively than not. Again, the numbers to set the stage. This is not a predictor of what will happen here. Just an idea of what these guys typically do over time. So joe, interesting moves here both stocks are in need of a bit of a sat a list. Ibm this afternoon and apple later on this week. Back over to you, joe. Id like to see that ibm report on revenues not earnings. And Service Contract signings. There are so many metrics. The revenue is down from where it was five years ago . Ened it declined year over year. Remember, buy backs will us as be a part of the discussion. When you buy back stock, thats how you are beating earnings every time i dont know it hasnt hurt the stock prices either . Heres the interesting part. A lot of people say now, its been a while since shes taken over. The question then becomes whether or not the initiative that shes putting in place are going to give ibm that catalyst to move forward. Okay we know its been the worst performer on the dow for the last two years, now people are looking at this company saying if there is a positive revenue catalyst. If they can show some signs, it might be a value place. You have it up there on ibm. I dont know if you call it tech. Its 1860 billion. Look at google and amazon facebook and take your pick of who is left apple 7850 billion. This is a 169 billion company now. I dont know if you call it a giant anymore. Yes, you are right. Maybe not yet. When you compare it to those guys for sure. Remember sentiment changes in the marketplace every once in a while. Ibm has that track record of reinventing it. Its just about whether that Company Shows signs of life. Right. Lets hear more on what investors should expect from the likes of apple and microsoft. Market managing director and Senior Analyst and fun to watch ibm in light of buffet too. Because he moves in. He says he finds more. Six shares. I dont know whether, do you think he is grad he made that initial purchase . He hasnt made money yet . This happen a battle. At this point. You got the number for him. On revenue. 13 out of 15. Ginnys argument on all this why do we want it . They were so on cloud. They missed the boat. Its climbing up mount ever estest in terms of the acquisitions on the horizon . Thats why you compare this to a microsoft. What company would be a catalyst . I think its big data Cyber Security and cloud. They have a fame like splumpg or tableox . It fits the bill. They need to make changes, otherwise, like joe said well sit here continue to look at sort of this thing meander, really comes down to the only way you put fuel in the enj inin terms of growth is big data Cyber Security and cloud. The question from investors is, what is ibms history of successfully integrating businesses what is the history of doing that and doing it well . Its been a checkered past. I think now really there is challenges in terms of what it can do. It all comes down to that you mow the cloud and some of the newer growth areas to show some sort of traction there. But really you can cut your way for growth. Thats what investors have focused on. Are you starting to see glimmer on cloud . Are you seeing glimmers in terms of what they are trying to build on not the low calorie revenue, what you would call . I think on some of those, have you seen some green shoots. The issue is the meat and potatoes have major overhang. It comes down to a lot of the other companies, emc, oracle. Ibm is not alone. They have moved much more towards cloud. Now the companies have to make a big decision. How about microsoft . Theyve got that great Annuity Business that the amount of revenues that occur for that company is unbelievable. Its been impressive per share relative to the bomber. He has ripped the band jade off realizing microsoft needs to get there on cloud. Investors haveer cloo cheered it. I call eight picasso, going relative to all the other large happenings. Thats why investors leak what they see in terms of the growth on cloud. Now you got windows 10 coming out next week you gottesman the catalyst. The big difference between microsoft and ibm. Microsoft they feel like theyve taken off the rosecolored class ifs. They see themselves ibm came into oracle emc, they think theyre the company they were fivetoseven years ago, which theyre not. Im wondering what you think about apple. Obviously, its going to be a quarter will iphones again will be the standout. We hope to get some sort of numbers on apple watch deliveries in the quarter. Then there is the iwad in some ways that is they singe the hope on this idea that enterprises would start to buy them once they had the apps develop to help them. That hasnt panned out either. The message on the street has been waiting for a new ipad. It comes out later this year. The big issue into Apple Earnings is that 58o number. Can they have that shipment above 50 million . China has been a little overhang. You are seeing more optimism hang into tomorrow night you will start to see those iphone legs on iphone 6. China, we believe is the high octane fuel and it breaks above highs with a good print. You go into next year with the watch, with apple pay, with a lot of the other group areas. Thats the third leg of the stool. Thats what investors will want to see. So europe up pregrowth in the sky with apple . I view this. We talked about before this has been the stuck in the mud period since the developer conference. This is going to be really approve me quarter. Ultimately, thats how we get to that trillion dollar mark. Well get there. Can they show that coin continues to be that fuel . Can iphone 68 continue to have the legs . Then you have 6s later this year. That could give you the growth. Thats key to cash. No other phone maker will be smart enough to leapfrog . I mean, annualpple continues to be the gold standard. I think the issue that they have to continue to innovate. Also, what they have done in carolina is a huge game changer. Thats really the growth market. A lot of skeptics will say that will never be 20 revenue. We ultimately need 40 revenue by 2015. My daughter is doing the radio thing. You put in who you like. It does it for you. I download ten rems. Im in an rem phase. Assets. Hes just discovered streaming music. And this is only the appetizer. Screaming tv. You think that comes in the fall . Later this fall we will have streaming tv. The cord cutter. Another adding to it that we are seeing. Thank you, sir. When we return we got a fun story the jettisons have landed in michigan. We got a look at the city. Self driving cars. What makes auto makers and scientists there, what theyre looking to accomplish. Fril lebeau joins us from the grand opening of m city next. The only difference that little blue thingy. You see it . Using ge software, the light can. Welcome back to squawk box the dow is set to open higher. The s p up a pointandahalf. The fax up ten points. Check out shares of vivint solar. It is being acquired by sunedison. Its the second largest installer of solar panels. Its up about 43 in the premarket tradeing on that news. Mcity is a 23acre mini metropolis in michigan. Auto makers can test cars. It opens for Business Today. That is where we find our phil lebeau. I imagine you got a first look at this. What does it look like . Reporter imagine a hollywood set. Thats the best analogy i have kayla. Thank you as we pull out a little bit here. It looks like a regular suburban street behind me. Maybe people at sidewalk cafes. Thats a facade its not real. It puts them in certain six and seeing how they react again in a controlled environment. This is closed off to the public. Heres what m city really is its an attempt to do more. To be at the forefront when it comes to autonomous drive vehicle research. The university of michigan is at the heart of this doing the work here. The question is how soon will we see self riding cars . Folks, that technology is being tested. Tesla is a good example. Auto pilot will likely be in the model f here. You will have fully you a on the pus models on highways between 2020 and 2025. Closer to 2030 thats when we are likely to see fully Autonomous Cars and trucks on the road on the highway and the city drivingful self driving cars are already on the road being tested. Primarily in the Silicon Valley. Thats one reason why a number of the auto makers and Auto Executives in this area said wait a second lets see what kind of research can be done in southeastern michigan. The future of the autos is not all in the Silicon Valley despite the fact many people believe thats the case. What believes that more than others . Investors. Take a look at shares with tesla and gm. No comparison at all. A lot of this has to do guys we talked about this for sometime. When you talk with an a lists and big institutional investors, almost all of them say the same thing. Wheres the future . What is going on with tesla . I rarely hear people say what is going on with gm with ford even tow they are on the putting edge when it comes to autonomous drive vehicles. Mcity will be opening for Business Today and guys some of this stuff is very very cool. It will be interesting to see how it develops over the next couple of years . Thank you, phil. When we return we will head down to the New York Stock Exchange and check in with jim cramer for the week ahead on wall street. Futures still in the green. We are back in a moment. Stocks on the move this morning. Andrew . Yeah. What stocks are on the move thing . You tell me. Exelixis. Where do you imp fiez the syllable . Its a small market cap but a big winner. The company, thats the symbol f. Its a Kidney Cancer treatment that has shown survival in studies meeting the primary end point. Lovely. Lets get down to jim crimer at the New York Stock Exchange. How do you pronounce it . This drug had been a failure a couple of times. Thats why it went down. The renal cancer most people had hopes for it. Most people on wall street didnt. This is a stunning development. The stock will go back up. This was not supposed to happen. Gymwe have a big week of earnings, ibm and many others this week. Ibm you talked correctly about it. Fastgrowing stuff has to grow faster and slower stuff not drop off. We started to seeing this whole quarter, guys going up right in front of the quarter, netflix being the best example. Google the next best example. Amazon, two example vs show me blow out. The upgrades dont mention this quarter. They say watch for 2017 for the number one apparel retailer its walmart and target. Do you buy it . Theyre all like that. None of them say listen this is the blowout. Theyve all been very focussed on 2020 because no one wants to say buy it ahead of this quarter. Then it sounds like they got a call. What they have is theyve done models that shows a breakout of the Cloud Business being good. When i read it they say buy ahead of the quarter. We want what about papal. The numbers that i have been using for a little bit lower than with the sun king was going over at sun trust. Hes been the best guy, peck. 1. 47 means you could get to 50 with a multiple. It should trade higher than visa and mastercard. Its a must own. Its the Fastest GrowingCredit Card Company with no risk. Because it becomes a takeover target . No. Its not tremendous earnings power. We also know it was give an lot of membership. Oney. It has been hidden within a company that the ceo is really smart. The numbers are going to be raised over and over again. The targets being used are very low. Ive been using a 45 targets, when i read the reports, its going to go to 50. Well see you in a couple of minutes. Up next an intense moment for a pro surfer over the weekend that was captured on video. Well show you what happened again and what he had to say about the incident after the break. 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. In the us, three in ten College Students drop out. But how can you spot whos at risk . The one who lives far from campus . The one who works the night shift . The one with new responsibilities . One thing cant tell you, but the right combination can. Universities are using ibm analytics to understand pressures in and out of the classroom some expect to cut dropout rates by twentyfive percent. Ibm analytics is working to make education smarter every day. Check this out. An amazing escape for a surfer and it was all caught an tape. Professional surfer mick fanning came face to face with a shark and got out of the water unharmed. It was a terrifying encounter, and it all unfolded on live tv. Hopefully with a delay, you would hope. The surfer fighting back after the shark knocked him off his board. He supposedly hit him. I was waiting for the teeth to come out there. I was swimming. I was like oh. Did you get a couple punches in in. I punched it in the back yeah. Wow, hes quite composed. I would not be composed. They shared the first place because neither guy went back in. They tied. I dont blame them. Needless to say they did not get back in the water. Incredible footage. We have some other news. Its a bid of what were calling nerd news. An australian teen felix, winning the 2015 rubix cube championship. The 19yearold averaged 19 seconds. The first competition was held in budapest and how its held every two years. People used to take the stickers off and that was obvious, though. Have do you do it . Ive never solved one. There must be some trick to do it that fast. Ill bet theres some sort of instructional. Just leave it the way you bought it. Look at the dexterity. Thats unbelievable. Not even breaking a suite. Weat. Thank you for being here. Squawk on the street begins right now. Good monday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer and jim faber. The peak of earnings season arrives this week, everything from amazon to apple, ibm to gm. S p is four points below the record close. Were around 2. 37 or so. Oil is key after dipping below 50 for the First Time Since april