European equities, up by 8 slaegts 10 off a percent we had pretty Good Movement over it had it last 24 hours because off powells testimony 1. 60 we were over 190 10year note, 2. 056 if youre planning your day its time for the crosswalk flan aer for try to pace yourself and this is right at the it very beginning of your day because youd do vp oorks and later in your day, im watching washington do the same stang and hell not see you. How were going to get numbers from Delta Airlines. After the close. You also have to be aware of ho, thats right im eves dropping youre down to five, are you not . As sooner as the numbers are out, ill give you a free cnbc envelope did you see that engine yesterday with video kw the thingroiding around in the it did. I just saw people complaining they didnt feel like they andaus compensated enough for it sglrts then you would do if you saw that it fer and if you saw nangen come across on a flight i would mang. Ohow would you notify somebody theres not enough money and someone decided to take a video to him, and his spirs. We have a developing story this morning in the middle oos they say five armed boats believed to belong to the Iranian Nuclear guard unsuccessfully but were stopped. No shots were fired but they say the Royal Navy Ship did have its sons trained during the Exchange Iran says the parole boats were carrying out noormal dude aides. They separate the it persian golf and gulf of iran. Another developing story that could Impact Oil Prices around the world with. A major storm praimpt prompting Oil Refineries aroubd the world. As the storm bears down and residents of central louisiana and upper dx dx coastline scrambling to prepare. They say it would be a hurricane by study frrtsz new lay revamped levy system stux watch this morning under pressure after anrgts mezzing earnings refort severance and others, including all that earnings before cash. Abalists had expecteded it long time ceo was pushed out and he managed to get four new drektszerred dhoo court. The comp an is reviewing its store plans. Cut costs and changes the organizational structure you dont down heading off from behind no, i want him to keep the beb hind, just stack a aemp beds lets say youre driving by, theres a gear theres the girl bp bedroom, bathroom, and beyond thats long though. The activists wanted to sl the other devisions perhaps Christmas Tree shops er i dont know. The markets pricing it. Lockheed martin will keep its plant open they reeval krauted plansz to close the plant. They originally kept the craft closed and tweeting both thank you to lock heed martin one of of the truly great companies. They have 165 work withers and shares of nintendo they anounched the release of the switch light it would be volable aluable. Go to break early and save time for our crypto interview coming up. Im leaning heavily on you i defer to people who actually know nings you had a bitcoin buzz when i was in diapers this is not a bit coin company, really the first registered sale black stock. Bloc stack. I know just enough to be dangerous. I do actually understand but why would you want to pay for developing an application on the decentralized network with the token . Because if you inivist in developing the network there are nets you dont have any ownership staik stake in the company and it will be enhanced by the build up of the net wk but now this quarter a plus regulation, regulation. Its like the fledge llg umpuns youed this. They spent a lot of money trying to get the fcc to do it. Hes going to be onset oh, really . Oh, yeah. Have you seen it i have. I think that can cut both ways because they do an amazing job ridic between the line and parody we cant share that one coming up well show you what fed chair powell said yesterday that got stocks higher and tack a loosz amthe president owners get ready your daily dashboard from fidelity. A visual snapshot of your investments. Key portfolio events. All in one place. Because when its decision time. You need decision tech. Only from fidelity. You need decision tech. Mno kidding. Rd. But moving your internet and tv . Thats easy. Easy . easy . Easy. Because now xfinity lets you transfer your Service Online in just about a minute with a few simple steps. Really . Really. That was easy. Yup. Plus, with twohour appointment windows, its all on your schedule. Awesome. Now all you have to do is move. That thing. [ sigh ] introducing an easier way to move with xfinity. Its just another way were working to make your life simple, easy, awesome. Go to xfinity. Com moving to get started. Federal Jerome Powell giving a signal of possible cuts. In light of increased uncertainties, we would closely moner itter the implications of incomeling information but the Economic Outlook and would act as appropriate to maintain the expangsz they saw a case for a somewhat more Monetary Policy had strengthen pd. Forerse based on incoming data and other developments, it appears uncertainties about trade ngz its continue to weigh on the u. S. Economic outlook. Joining us to talk more about the economy, ed campbell, managing director at q and a at this point, given all the uncerternitiess that he see aptly listed in yerts testimony, what can they cut to the rally . Well, i think its more about sentiment and the markets got what they wanted to hear yesterday but i do thing at this point weve got an lot up front. Its been a pretty exhilarating first half plus for equiaties. So in order to fuel the next leg, we need a turn around in the growth data and we rr not eseeing that as of yet you can see the case being made either way. Even though chair powell wept out of hiss way t it seems to highlight the negative he certainly didnt seem like an optimistic guy yesterday. Uncertainties have come back over the lagsz six weeks er the point is chair powell had all the time and power in the world yesterday to walk back Market Pricing for a rate cut and he can did not do that and ignoring his messaging we do it at our own peril. He said effectively to look through the strong jobs data he got. And powell essentially said i dont care if thatser a frame frk todays inflation data manages a lot. Based on what powell said yesterday, i dont think ill move the dial at all what are we looking at in term its of of how we characterize this great action theyre talking about it being preventative it seems focussed on trying toing uninvert the curve, sitting above 2 the restf of the world is below that. Its an easing cycle or a preventive measure . Its like you said. More about kicking insurance against the it down side risks if yok look at the feds base kats, you would say this cut is not needed its really insurance against the down side risk you mention the inverted yield curve. Thats the one thing flashing red on peoples dash bords. But erwoo rr were going to get employment claims. If you look at how yield spreads and other riliable indicators, their are not flashing the same alarming signal whats your outlook for the year in term tofz the markets i would imagine 25 basis points isnt enough to be an insurance cut in a recession i dont know if you think its more off affnoivl . We think this is another growth slow down dwroob think the economy will eventually rebound in terms of our investment strategy, were right around neutral in terms of the majort classes. If we look at our Market Sentiment indicator, indicator exuberance at this point we need digest the move so far were coshing but not bearish. I think central bank pivot that we see is going to earn it round the it growth data and the tool. So were coshing right now but i dont think weve seen the cycle highs in terms off assets. When did you go neutral before the bounce back. We did look press mg to the down draft in may but weve missed some of the bounce back weve seen since then. Is it priced for continued slow down. How do you play that in my view you have to pick one of two camps are we in the 1990s or are we heading towards an easing cycle . Heading back to zero because were heading towards a 2020 recession and the idea were going to cut three or four times in the middle is probably not accurate this is a 1990s situation. An insurance cut but from a bugger perspectiveb im totally happy being a little short coming to the nktst couple of months mot just a july point what does that do to you . There is a great expectation hell come with an actual rate cut. Lets expand the lens and realize almost every Global Central Bank is easing it means Global Growth is going to get supportive. Maybe not when employment is so close, but we will see some stabilization and if woo have flomtsz easing if you believe what frances is tell itting us, then you should not be neutral. You should not fight the feds, plural i thij tratser are right. I guess what weir are looking at is markets look a little over bought and we need a digestion phase. Based object our market sector indicating zub rnsz. Itsinatesting because if you lookality some of the short term tactical stuff it look thal way doesnt seem as though the world has bought into this if the Global Growth is bottoming at the same time the fed gives inthat markets, that same time you come out of the flat period it all plays together every strategist said this is one and done flarts rr all the bang were go tag get for our buck the easiest trade is always the wrong one. And thinking this is go tag last and everybodys got a 2950 upper end but by definition they are theyre all 3,000 max. The wilson guy on your shoulder every week im watching hes a bear no kidding. And 93 this year about half a year to go the markets probably in decent shape until joe starts shaving everybody. No one remembers. They Say Something else its like oh, that sounds good, jeff. And for years theyre wrong and then good morning, jeff cline. We appreciate it this is a great story can coming up. I looked ahead weve got the it results of a new Job Satisfaction survey and people dont care about sorry. What they said was more important than salary. Millennials. Theyre living in the basement anyway big tech under fire. Wore rr going to give you gax. I tumble for you i tumble for you i tumble for you culture club time for had it executive edge workers value strong Workplace Culture above salary the study by jobs website, glass door asked them to rank their priorities for a satisfying career 65 said strong work plas culture was more important than salary and millennials viewed that number higher hundred u. S 55 rank culture as the highest priority is it like you got to be green or Renewable Energy in your space or a vibe. Is it a vibe . Hows our culture here is it lacking . Its empowering to employees. You made the point. So mad men, bad. But in the show orrer the office was probably bad workplace. I think what theyre talking about is lots of feedback. How can you get better when youre part ooff a team, lots of things he that make you feel like youre working towards something larger than just a product. I hate feedback when management weighs in. That was a great job you did. I get that from my viewer millennials dont feel as if as the aif theres a tremendous difference. Which is ironic given the tightness of the laborer and so therefore if yourer choosing among the jobs, if its roughly the same money as we were talking about before theyre not as young as you might think. Theyre up to 40 so you got to wonder about the younger ones it sounds good. You want the money. Culture again what do you want to it do . And someone says i want to change the world and they all laugh. Thats not the way it is anymore. Thats an antiquated that was early 80s regans call do you think this sounds to me like you need a little maturing i got kids to put through School Vacations i want to take taxes i want to pay and i need how long do you think this is going to last . Till they hit 45. All right i like this story too because were going to hit you where it hurts. If anyone ever wants one in this country, we might put a tarifff on it. Hes ordering his top trade officials to investigate including alphabet, apple, facebook and amazon. Says the investigation into the attacks, which he says unfairly targets u. S. Companies could result in tariffs on french cars the wine. The wine got me that scared me a little bit although we have great california wine. France would apply a 3 tax on revenues that Tech Companies reap from france a French Finance Ministry official says the attacks are compliant with agreements and its inappropriate to use trade instruments in retaliation i guess uhhuh. Get me one of those recently. I know. They made a convertible i thought those were made in kujo sound, washington . Anchor said that once. Coming up new numbers on ventur ventur venturer investors at a record rate and sounding off on the first regulated token sale the ceo blocks that. Well join in just a few minute. And a look at yesterdays s p 500 winners and losers through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. Welcome back youre watching squawk box live from times square lately ive been good morning u. S. Equity futureses are indicated higher after the turn around yesterday which reversed loss began on friday after figured it out then powell alaid erpoos that rate cuts were off the table maybe theyre back on now. Thats all that really matters brings the dou up about 50 points, nasdaq 20. S p briefly he had the hat definitely. A little early but theyre there. It was a record Second Quarter and the qtipo had exit value the reports says venturer investorser felt good to open and they include uberer, pinterest and they had been keeping companies private. Uber accounted for 49 of the total exit value speaking of ipos Cyber Security firm mcafee is planning to return theyre meeting with bankers to discuss a listing as soon as this year. Its owned by private equity firms along with intel and its interesting because the crowd strike, another ipo high and putensh ittal sumantic deal i guess you have to question is mcafee a more mature business its a bit of a cash cow business and asia business. B this could raise nearly 9 billion. Er could be the largest ipo this year issall retdy over prescribed friendship coming up were going to it tell you about a major milestone for block chain in the sec plus were awaiting results from Delta Airlines and well have an interview with the ceo of delta carvana is six years old this year and is the Fastest Growing place to buy a car in the nation. Its because we have thousands of people working hard to make our customers experiences the best. Its because we have tens of thousands of cars ready to be delivered to your doorstep. And its why hundreds of thousands of happy customers have ditched the dealership and bought their car online, earning us an average 4. 7 stars in the process. So if you didnt know about us before, you do now. Were carvana, and we want to give you the car buying experience you deserve. But prevagen helps your brain with an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. Virgin galactic is planning to go public it started as a joy ride and then became a necessity. Everything from Space Tourism to hopefully hypersonicb air travel im really looking forward to going. We are watching the price of bit coin and yesterday was above 13,000 comments from the fed chairman about maybe libra or facebook that seemed to derail some ohof recent rally crypto occurrency fell following that comment about faulks plan to launch that currency, libra we did actually have a meeting with representatives of facebook couple of months before everything libra raises many serious concerns regarding Money Laundering and these should be th thoroughly and publicly addressed before proceeding. Bitcoin had recent laclimbed down its up more than 200 meanwhile, a milestone of sorts for cryptorelated companies and block start ups. Well hold the first token sale this morning they cleared the 28 Million Offering under a regulation a plus which is an alternative to an ipo co founder and ceo who also consults on sillicon valley as well that was fine i have not seen that. You can talk to mike about that. Agon im not in sillicon valley at 11 00 a. M. , people could buy digital toekens. People call it quote on quote the minia ipo. Imagine the it wild west equities markets before the 1933 securities regulations and this is kind of like how the crypto omarkets are right now and what we have done by working with the regulators is we work with them to define a Legal Framework. What exactly in this case with block stack what does my digital token give me the it right to do . Why is it worth something to me . Basically rilts used as fuel to resist different types off assets orrer running smart contracts, you need this to execute them let me try to explain with an analogy. Imagine we discovered manhattan. And a single company, lets call them facebook epds up getting all property and everyone can live there for free. But they dont have a stake in the success oof whatever is happening and in the block stacks case, every user has property rights, their own piece of land, own their own information and everyone has a financial up side. Theres no company in the middle so you built a decentralized network. Open source code. It basically came out of research we escientists who built Core Technology as open source soft ware and people can run it to basically be part of this network. Our company doesnt control this network. And you would pay for doing that with one of your digical toekens . So there are already 100 applications built on top off this network and they include examples to google docs, linkedin and a whole listf of these applications that are already live and people can use them but theyre so proud when they see that im sort of and can we just move beyond this and talk about whether libra was a positive for crypto or a negative its going to other in more regulation mark zuckerberg, thats all i need is for him to have his hands in my wallet and everything else. Im not on facebook, so he doesnt. But good or bad for the industry im cautiousesly optimistic in the sense that facebook the company has done things in the past that would make you distrust the kwumpany but this team is new. I actually know the Leadership Team there and theyre trying to do the right thing with that said at some point facebook would have to figure out are they truly building an open system or oer orer are they going to end up building a permission system and they will have to figure out how to work with regulators as well. For me that offsets any positive from making it morer widespread it doesnt steam have any of the key characteristics of a bitcoin. I dont see how you regulate bitcoin. You can try but you really cant because everybody sort of owns it themselves. They own the rights to it. Thats the point, right because you dont want somebody to say threat it be. I feel like i feel initial signs and crypto people who just love it. J the function gives it lot off value. This is very important. This is the first token sale a year ago maybe you would have gone the route and all was Something Like 7 billion. It ground to a halt virtually 18 million in the First Quarter so what made you choose this route and do you think this opens the way for other companies that would look to ico and do this . Absolutely. First off all i hate that term it, ico so weve been living here for more than five years. So we didnt need to know this route just to raise capitol and just by looking that markets and there were so many bad actors and people were effectively raising cappal rr on half baked ideas. Thats when we started researching that if we were to do it professionally what would that look like thats when we did the first part of our toeng offering through a reg d offering that was limited in large funds that was 47 million rounds that we raised in 2017. And since then weve been work on the Legal Framework for opening up such offerings to the general public and youre working with the sec, audited financials and theyre wondering what is this thing and how do we understand it. With the regulator token offering like this quote on quote legitimate companies and may be etired of the scammy nature. Absolutely. I think the work weve done can serve as an example and they dont want to otherwise go down the route. Right its to the take like six years to get a ph. D. Right princetons better but i have it to go a little longer than that, right . Must h have had a pretty good start. Can you figure out a mechanism to value bit coin currently based on a metric that makes steens everyone. Theres one called place holder it prices follow models. And then models follow prices. These evolved like theyre interrelated so people are coming up with the initial models and they may be true, they may not be true but once enough people start using the models everyone be buying things with libra or bit coin i mean im on the side of bitcoin but cautiousesly optimistic anyway, thank you i hope you come back and continue with my education thanks for having me. Coming up well get you ready for the social media at the white house. Dont tell me coz it hurts [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Dont get mad. Ok ill admit. I didnt keep my place as clean as i would like cuz im way too busy. Whos got the time to chase around down dirt, dust and hair . So now, i use heavy duty swiffer sweeper and dusters. For hardtoreach places, duster makes it easy to clean. It captures dust in one swipe. Ha gotcha and sweeper heavy duty cloths lock away twice as much dirt and dust. It gets stuff deep in the grooves other tools can miss. Yknow what . My place. Is a lot cleaner now. Stop cleaning. Start swiffering. Welcome back the white house is holding a social media summit today, there wont be any social Media Companies in attendance. This is more to be a more of a vent session in fact, social Media Companies werent invited, instead, President Trump will meet with conservatives who say the platforms are bias against him he wrote this would be a very big and Important Media summit would he be president without social media yes, probably. Heritage university will be at the summit and congressmen like mark gaetz and marsha black. Blackburn has singled out snapchat lately for not doing enough to stop online predators, tweeting big tech will be held accountable for keeping kids safe so there is clearly reputational risks out of the summit today but what really has them worried is a potential for changes to the Legal Protections that they have from what users post on their site representative gaetz is calling for getting rid of the immunity entirely the real danger for the platforms is that todays summit sort of whips momentum behind those efforts. Back over to you. Certainly, stakes are pretty big. Thank you very much. For more lets bring in rob lui, and alex canterwitz Senior Reporter at buzzfeed, obviously, this is going to air a lot of complaints about these platforms, how they operate, how they decide who gets to air their views and not. What does it mean for the Business Practices do you think that these companies recognize there is a potential threat to the entire Business Model if this leads to policy changes . Yeah. I think they know there is not much that will happen to them. If you look at the way, the top three are military, amazon and google you skip da thousand and get to the Political Parties and congress and facebook is somewhere in the middle. I think they realize there will not be actual legislative action here i do think the threat can be meaningful it can show them, hey, listen, if you show continued bias, there is a chance we will change these laws even the fear that will happen will cause them to lay off some of that conservative videos that you know may or may not break the rules. So i think that were not going to see any legislation thoepg i dont think their Business Practices will allow that very much the fear might allow borderline platforms to stay up on the platform. Rob, you will be at the meeting. Is that one of the goals i dont think the government should be in the way of breaking them up or legislate on them i think conservatives should point out where they have seen suppression and bias against them lets face it, there are numerous examples. I think that will be on full display today. One of the issues, of course, rob, that the policies are reactive very often and are not necessarily clear beforehand, exactly what gets taken off their platforms. So do you think there should be some rule setting down the road . I think these companies probably need to do a better job of communicating to their users, particularly to conservatives about their own guidelines and the returns of service which they expect people to operate. I think thats unclear weve experienced our own examples where content has been pulled off these platforms it has later been restored we had a colleague that had an apology from twitter, because he was suspended temporarily. Sometimes these Companies Take actions. I think it leads to confusion and conservatives seem to be the often once on the end of that. Yesterday, we covered the fed chairs testimony in the house, i think there was surprise a number of questions he got about Facebooks Libra kind of crypto Payment System initiative. While not focusing on that it did show there was a tremendous amount of interest on both sides of the political spectrum for scrute fiezing everything these companies do scrutinizing everything these companies do thats right. Its an opportunity for both points of the aisle to score points they want to see they are holding the powerful companys feet to the fire lets make sure they are totally critiqued and any time there is an excess they get pulled back a little bit remember, again, these companies are pretty popular among consumers, people, citizens, so its kind of this tenuous walk through for politicians where they want to be hard, if theyre too hard, they might end up upsetting some of their constituents nobody wants their amazon prime to go away if they get broken up, and it takes three days to get your package to you, it becomes an issue for the person that broke them up. So i will keep that in mind as the politicians are grandstanding. We did get the news from a judge the president has the constitutional obligation not to block followers on twitter obviously, at some point everyone has to agree there are a certain way to operate on these platforms from it will be interesting to watch i imagine the president will have strong words at todays summit well will listening for him. Thank you. Coming up, were expecting results from Delta Airlines in the next few minutes we will bring you those numbers and a rsalpeon cn be c interview with the ceo of delta. Stay with us stay with us any time right from your computer all the Amazing Services of the post office only cheaper get our special tv offer a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again i was on the fence about changing from a manual to an electric toothbrush. But my hygienist said going electric could lead to way cleaner teeth. She said, get spired by dentists, with a round brush head. Go pro with oralb. Oralbs gentle rounded brush head removes more plaque along the gum line. For cleaner teeth and healthier gums. And unlike sonicare, oralb is the First Electric toothbrush brand accepted by the ada for its effectiveness and safety. What an amazing clean ill only use an oralb oralb. Brush like a pro. Earnings alert, delta ready to report, Ceo Ed Bastian joins us to talk results and the industry. Plus, we head to sun valley, idaho to speak to verizon about the future of media and more j. Powell previews today hearings at the second hour of squawk box begins right now. Announcer live from the beating heart of business, new york this is squawk box. Good morning, welcome back to squawk box here on cnbc. Im joe kernon along with mellissa lee force of habit. And mike santilli, u. S. Equity futures at this hour indicated some of the best levels of the premarket session up 94. The dow and nasdaq up, s p up 8 frachlth what do we need to get 3,000 today . Above 3,000 heres whats making headlines at this hour Federal Reserve chairman jay powell in the spotlight. He says the u. S. Bank is committed to keeping the economy on the right track would it be fair to characterize, based on what were seeing on those two factors, specifically, that a strong case could be made for lowering so, yes as i mentioned, we think that uncertainty around trade policy and also Global Growth its not all down to trade policy there is something going on with growth around the world, particularly around manufacturing and investment and trade and so that uncertainty is we think weighing on the xi. Powell heads back to the hill today to testify before the Senate Banking committee we are watching bitcoin, currency fell sharply after launching Digital Currency libra. Libra raises many serious concerns, regarding privacy, Money Laundering, Consumer Protection and financial stability. These are concerns that should be thoroughly and publicly addressed before proceeding. Bitcoin has recently climbed back above 13,000 so far, it is up more than 200 . Shares of bed, bath and beyond are under pressure after another messy earnings report. The struggling retailer having severance and other costs, same store sales fell 6. 6 . Analysts expected a decline of 5. 5 . Delta airlines out with quarterly esults phil lebeau joins us with those numbers. Reporter mike, strong numbers as expected in the Second Quarter and a number of guidance raises for the remainder of the year. Lets go over queue numbers, first of all, beat the street, 235 a share versus 228 hef knew slightly better than expected operating margins 17. 1 . Free cash flow 1. 8 billion. They have now had 2. 5 billion precash flow this year. Last year they had 3. 3 the entire year and the improved guidance for the Third Quarter and remainder of the year, Third Quarter they are expecting to earn between 210, the consensus, look for that to go up full year guidance, raising it by a quarter it was 6 to 7 a share now going up to a range of 6. 75 to 7. 25 this you got fullyear precash flow it was 2to3 billion. Now they are saying they will have at least 3 billion now the return to cash to shareholders was at 2. 5 billion. Now its at 3 billion. Its a lot of improvement there. Well talk to the ceo of delta, ed bastian the a330 will be retrofitted. Its brandnew. First flight going on today. Second quarter, you beat the street, a lot stronger numbers than people expected earlier this year. There is so much demand this year, could have you flown for people if you had even more capacity first for coming down, the best june Quarter Results in our history. To put that into context, to think about the 2 billion thats better than any five of the 90 years of our history. Full years. Fullyear results, just what we had in the Second Quarter top line growth is really strong about 9 top line growth in the quarter. We also have another interesting stat, five of the ten revenue days in our history within the last 30 days we were full we took 454 million passengers, record levels. So square those results, which are, by any measure, fantastic results, square those results with the hand winging that weve seen by investors about the Airline Business over the last three months. Youve seen the reaction of most shares i know you guys are close to an all time high. But when you talk to investors, we hear from investors, im not sure the Airline Business is that strong. How do you convince people you are just not seeing that well, the momentum continues. The results in the quarter are not a one off. This is a trend line we have been seeing. Our top line revenue has been growing ability 8 per year for the last two years and were expecting to see that momentum continue into the back half of the year so we need to continue to show the results, this is different. Raising that full year guide up to the top end of the original guide is very important for us and Free Cash Flow as you mention. The cash flow delivery, which our investors were looking for to return the returns back to the park 3 billion of expected returns to shareholders. 4 billion of precash flow for the full year. Yesterday, fed chair powell talked about emergency emergencies around the world, different markets. You said when you spoke to us a few weeks back you guy versus noticed potentially softness in parts of asia. What are you seeing in regards to asia and particularly china on the transatlantic routes . Weve seen some softness both in the pacific as well as in the transatlantic. But relatively speaking its modest compared to the overall picture. In asia, its actually more japan for us than china. China were up double digits in terms of passenger growth. Were cautious were always keeping an eye on them demand and supply in asia. In europe, part of it is brexit. Part is macrouncertainty mart is given certainty for europeans to fly yet that said, our overall transatlantic revenues also hit a new all time high . June so in context, its not as strong as the domestic marketplace, its doing fairly well. Mellissa, go ahead. Its mellissa lee back in the studio i was wondering if you can quantify the kind of boost you got in the quarter or yeartodate from your competitors woes concerning the 737 max ground and whether you think as this grounding seems to drag out further and further into time, that that benefit can actually grow for you for delta Going Forward . Well, as you know, mem lisa, we do owe mellissa, we do not fly the max. Clearly, there was a benefit for the airline in the quarter its not explaining the results were seeing its more of the strength of the brand and our service our people are putting forward. To put into context, at the start of this year, were seeing domestics supply down maybe onetotwo points from the original forecasted levels its still growing, its still up 4 in the quarter one to 2 is not a significant amount, when you think of the fact that the competitors are do you know good job of covering off their most competitive routes and most lucrative routes we saw a marginal benefit. I dont think thats the reason for these numbers. Do you see it growing as your competitors continue to shuffle, especially, the impact on the consumer and the traveling public, you said recently about the Airline Industry has been traumatized by the grounding of the 737 max. The impact on the consumer has got to be pretty traumatic as well well, it is and, you know, i dont know when the plane is going to come back. As weve seen, its taken longer than any less expected to see it returned to service. Its not going to be in place for the Third Quarter. Maybe some time into the fourth quarter. We dont have a crystal ball on that but i do think consumer demand has shifted to delta, has been shifting to delta for several years now. The max may be contributing a little bit of benefit, i dont think its a snippet to contribute one last question, people might be saying, why are they on an airplane . We are on a new a330, this will be flying from seattle to shanghai tonight in particular, you got the delta one configuration up here. The new business class, what are you noticing in terms of demand to fly business class. Are we getting more full fare paying people and less in upgrades in terms of hey, i got a bunch of miles, thats the only way i can afford to get into delta one we are are the launch customer in north america on this plane were the First Airline in north america flying it. Last night was the first service. Plane number two were taking this to asia tonight. This product is fantastic. Its Award Winning the delta one suites that won an award last year for the if you Product Innovation in the market place. The other thing i love about the product is were introducing the delta premium select which is a business cabin in our international cabin. We are seeing a question around passenger demand for the product has been phenomenal. The results have been great. The delta premium select is certainly i think one of the leading o are you seeing more people saying i will pay for this as opposed to i will only do it if i can cash in enough miles no, were seeing great demand overall, first class is paid, all the factors are up 65 70 . So when you think about that, we are saving some seats for our frequent flyers to make certain that they can upgrade. But most of it is coming in cash ed bastian, chairman ceo of delta on a day guys where say that posted stronger than Second Quarter earnings and raised their full year guidance back to you. Lets not give them the benefit there in the early going. Thank you, phil. Delta ceo Paul Jacobson will be speaking at the finance summit in chicago. He will be joined by leaders of the ibm, hyatt and dell and talk about the future work for the bottom line. Head to cnbc. Com to get a ticket i cant get enough of that im trying to it really triggered you that conversation we had about the workplace the workplace over salary. Over salary i need to know, that was a great term a great term, i just need and im not, you know, i dont know how im going to feel if its explained to me exactly what you are talking about. Are people collaborative . Are they look to Work Together or competitive with one another . Its not the stuff andrew loves all the socials, its not the renewable stuff, carbon foot it might be a part of it. Im a vegan, no salt, sugar you know. Even when hes not here you pick on him. Its amazing its so easy. Especially when hes not here its easier then. Easy either way. Coming up, media moguls in the mountains, ceos of verizon joins us check out the futures at this hour, almost up triple digits on the dow. Were coming right back. When you have nausea, heartburn, indigestion, upset stomach, diarrhea try new pepto liquicaps for fast relief and ultracoating. Nausea, heartburn, indigestion, upset stomach, diarrhea get powerful relief with new pepto bismol liquicaps. Mno kidding. Rd. But moving your internet and tv . Thats easy. Easy . easy . Easy. Because now xfinity lets you transfer your Service Online in just about a minute with a few simple steps. Really . Really. That was easy. Yup. Plus, with twohour appointment windows, its all on your schedule. Awesome. Now all you have to do is move. That thing. [ sigh ] introducing an easier way to move with xfinity. Its just another way were working to make your life simple, easy, awesome. Go to xfinity. Com moving to get started. A developing story this morning in the middle east u. S. Officials say five armed boats believed to belong to the Iranian Revolutionary guard unsuccessfully tried to seize an oil tanker near the strait of hor mus, it was stopped straight of hormuz they say they had them trained on the exchange. This morning, iran is denying the u. S. Version of events and saying control boats were carrying out the duties. The same area where a u. S. Military drone was shot down last month checking out crude prices this morning, theyre up after a quarter percent yesterday. Still to come, the biggest names in media are gathered in sun valley to discuss the state of the industry deals and more. Julia boorstin is there and joins twus a preview. Reporter good morning, the ceos and techs are talking about the streaming wars and coming up, ill be joined by vezorins ceo to talk about the future of mobility thats after the break. Or, here. Kick your antacid habit with prilosec otc. One pill a day, 24 hours, zero heartburn. Media and Telecom Giants meeting in sun valley, idaho at the conference and Julia Boorstin joins us now with a special guest. Reporter hey, i am joined now by hans, ceo of verizon. We really appreciate it. So the big question for you is 5g, how quickly you can roll it out. Also, competition with the other carriers, how can you reassure investors that you can stay ahead with this battle with cost issues and a potential price war being really problematic i think that first of all we have known 5g for several ears we were the first to do it at home, broadband. We were the first in the world to define mobility we have three 5g phones already out. We are of course ahead of the game we, of course, respect all of the competition. You know we pride ourselves, woo ter best network we have that all the time on 4g. We will have it on 5g. We dont have to work. But network is our strategy. It has been that to overcome verizon and thats important for us so i want every american to have a 5g phone in their hands and see the huge impact, the impact, the transform 5g will make in this country they downgraded on concerns the competitive environment has pricing issues how can you respond to those concerns when we have seen pricing wars in the past with other car years . I think first of all, it has always been a competitive market the wireless market is extremely competitive. It is nothing new to us. We are prepared, a big transformation, a network. We have a new goal to market we have a voluntary offering, almost 10,400 people leading us. We are prepared. Whatever we come up, verizon responded quickly. We will manage our shareholders, our customers, police, society, in general, thats our work. In your committed market, though, is changing. We have sprint, tmobile, any prediction on when that deal with close no, i wish i had one. I read the same newspapers as you. So we dont know, again, its an exciting market to be in, in broadband and 5g, the u. S. The local hype and discussion and the u. S. Is in lead of it. Its an exciting time to be here and work. There is a lot of speculation who can pie the sprint, tmobile assets, the dish, what kind of a fourth mobile carrier that could create what itself your thoughts on the creation of a whole new rival and what is interested in the mobile space right now i dont know, you know, again, we will compete i think that were already the first network, being the first in the world with 5g we will hammer on and execute and have a great team. That is doing that every day. So our main focusis to execute right now and multiple things will happen around it. One of the things we are hearing is a trade war with china. Hauwei says its in talks with verizon and other car years about licensing rights, up to a billion dollars in licensing rights them wlaus the latest is on tell us what the latest is on that. First of all, we dont have the equipment and impact on the chinese trade war in the first instance so for us, this is a normal event for us at the moment we are executing our strategy with our western, european, networks, we are first in the world. I think you cant do that without hauwei we are happy well see. Thats the sunshine act no. Other topic here in sun valley of course mna your rival you know, weve southeastern rivals, at t making massive moves in some media space. The at t deal closed in the past year, warner media, with what is your perspective especially in the media space what you will do next i think first of all, we are happy with our assets. We have put together our strategy right now based on our Verizon Media group. Our Verizon Business group and Consumer Group we have our assets in that, so i have said earlier that i wont execute on those right now in general, we wont execute on our strategy right now we think its a very compelling strategy with compelling assets in many ways going the opposite direction of at t i think if you are in the mobility space, you can go anywhere they will have different strategies for different categories in the world. We are very happy with our strategy hopefully, they are with their strategy. A lot of people have been taking about regulation. We spoke of this yesterday off camera yes. We are about to see there is time ability regulating the tech sector. Are you in a regulated space what is your perspective around antitrust, around privacy data, usage, data is something you deal with a lot . Yes no, i think first of all we understand the concerns and all of that, but ultimately, you need to remember that mobility, broadband, that combination in the 21st century infrastructure. If you can scale that, you can solve problems in the rest of the world that you have never thought about. We saw them sharpening up for regulation we cannot give the same opportunities for everyone in this world so thats very important secondly, i think the technology is moving so fast. No you do regulation, its moving so fast, so i think its up to responsible leaders and ultimately the customer still could face, were building our brand on trust and innovation. We know we need to fight every day to get the trust one thing you do wrong, you lose the trust. That has to regulate more important in the end ultimately, do you think the government should regulate google, facebook, or should they break them up . I think that regulation again is difficult in the tech sector. I think customers will ultimately judge them. I am worried if you will have different regulation all around the world for platforms, for example. Which means that the efficiency we are getting from them today that people tend to get bigger than healthcare, bigger than educational platform were going to lose that with the sustainable goals we have in the world, we want everybody to have the same chance i think that will be bad from thank you for taking the time with us this morning we really appreciate it. Guys, back over to you. Thank you very much we want to check stocks on fastennal. The highlights is in the release. They specifically say the margins went down. They have tried to raise prices to offset the tariffs placed on products sourced from china. They couldnt raise prices enough to offset the general inflations that they felt during the quarter. Theyre trying to take steps to continue to offset the costs of tariffs in china this is closely watched. They are citing the china trade wars, an impact on their business we heard this also from basf earlier. Often viewed as a global bellwether although in this caseb its more the margin as opposed to top line demand it seems down almost 6 in pre market. Coming up, the u. S. Investigate digital attacks in france that may end in tariffs. Plus the breakdown of j. Powells testimony and as we head to a break. Take a look at u. S. Equity futures. S p 500 due to rise about a quarter of a would put it over 3,000. The dow up 93 at the moment nasdaq looking to add to yesterday record foes up 22 points, well be right back. Y. But were also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. From the day youre born we never stop taking care of you. Still to come on squawk box, the powell rally, we will discuss and preview what he will say with david purdue. Plus, the u. S. And france, taxes on u. S. Companies that lead to tariffs. Is netflix winning the war with legacy media . Some argue, yes. Eeieill talk with rich grnfld, squawk box will be right back right back [ music playing ] when you have nausea, heartburn, indigestion, upset stomach, diarrhea try new pepto liquics for fast relief and ultracoating. Nausea, heartburn, indigestion, upset stomach, diarrhea get powerful relief with new pepto bismol liquicaps. Welcome back to squawk box the stock Index Futures right now are all higher across the board. The dow is set to open close to 100 points higher. S p up a quarter of a percent. We take it up above the 3,000 mark the white house now has another trade target france kayla taushe joins us. I understand the wine. I like french wine threatening tariffs on french cars do we know if anyone has bought one of those in the last five or six years in the United States, do you know . Reporter possibly collectors i imagine there are some people. Because theyre so rare. Reporter its unclear whether wine or cars will be swept up into this its expected to be a proportional response the u. S. Trade representative is investigating this possible retaliation specifically against france for a Digital Services tax. It would introduce a 3 charge on companies that make more than 25 Million Euros of revenue in france or 750 Million Euros of revenue overall globally ambassador robert light hauser yesterday said the move unfairly targets companies who are global leaders, it attacks apple, google, amazon and facebook. Ironically, its Companies Whose size are scrutinized by regulators and lawmakers here in the u. S. As well this move is seen as a proportional and justified response by the white house by hawks and doves and also by traditional critics of tariffs like the Top Republicans in the senate and the chamber of Commerce Chamber of commerce statement didnt necessarily say a possibly introduction of tariffs against france was a good thing, but the introduction of this tax, specifically against u. S. Based Multinational Companies for these services was a bad thing. All right, kayla, thank you Federal Reserve chairman Jerome Powell giving testimony before the House Financial Services committee yesterday. We see the economy as being in a good place and were exited to using our tools to keep it there. As weve discussed, theoverall economy is performing reasonably well but we see, what we called cross currents, prince ply trade developments and concerns over Global Growth. We see those and significant many participants at the last meeting saw those as weighing on the outlook and calling for possibly more accommodative policy chairman powell will now testify in front of the Senate Banking committee. Joining us, senator david purdue he will question the chairman later this morning its always a pleasure to see you. Thank you for joining us good morning. You saw the testimony, what did you think of his fairly downbeat comments on the economy. Hes talked about that before im anxious to hear his comments today. Were going to probe on that a little bit our economy is doing very well we heard yesterday now we produced 6 million new jobs since President Trump was sworn in the agenda is working right now. The trade issue definitely brings some uncertainty to the question i think thats what hes alluding to right now nobly. What are the questions in your mind that remain for the chairman i want to talk about labor. I think one of the restrictions on our growth right now is the labor force. When you have 7. 5 million jobs right now looking for people to fill them. Only 5 Million People looking for work so there is an issue there the second is inflation. The fed is trying to balance unemployment and inflation i think we got a few more details id like to hear based on his testimony yesterday. The Administration Says this is the best economy weve seen in a long time its strong on many fronts, including the labor front. Senator, how in your mind can you justify a 25 basis point cut or any kind of cut in the face of what is supposedly a very Strong Economy well, ill leave that to the governors, the board of governors and the fed. Thats their job. What do you think they should do as a sitting u. S. Senator i try not to comment on central bank policy. Ill say this i like their independence, what we got going in the xi right now. We have no inflation pressures right now from labor yet Commodity Prices seem okay its the uncertainty around the trade issue. We are flushed with cash the Capital Markets are strong right now. We got plenty of capital working in the economy because of our pullback if regulations, weve seen ceo confidence go up and Consumer Confidence go up because of that, Capital Expenditures jumped. Theyve tempered in the last six months i think were in a strong area for Capital Expenditures you should know, you know what thats like senator, i want to push back when you said you are a sitting u. S. Senator therefore, you dont want to comment on Monetary Policy that is not stopping a lot of other people doing so. What do you make of the president actually basically tear nook the fed chair . What youve heard the president say is hes challenged some of the questions. I dont have a problem with that i do that sometimes myself the primary thing right now is the independence of the fed. The central bank has served america very well. We had a problem years ago, we still do the four banks in the world have the largest Balance Sheets theyve had. They have been tempering that. We had negative Interest Rates in japan and some places in europe right now the global cost currents you heard chairman powell talk about around the world is concerning. It has very little at some point it has to do with trade. It has to do with what they are doing on the markets you heard this france tariff this is one of the strongest turn arounds i can find anywhere in u. S. History. Its because weve pulled back on regulation. We put a rational policy in place. We passed a tax bill that makes us more competitive and passed a doddfrank bill that frees up a lot of capital in small town america with our noble banks how much is self inflicted in some way the u. S. China trade war we have a potential trade war with europe. France is attacking u. S. Tech companies. We have a tariff tip with india. Some of it is our own doing. No well, lets look at what the big picture is telling us. The big picture is President Trump is trying to create a level playing field. Why is that important . We have to grow our exports. We only eggs port about 15 being offing a products into china, thats ridiculous thats less than australia what the president is trying to do long term will benefit this economy dramatically we know that weve got to grow exports. We got opportunities to do that. I applaud the president for the first time in the last 40 years standing up, telling the world what we need to do to create a level playing field. The fed chair listed yesterday one potential headwind, the debt ceiling that is something are you very in tune w. So how much of a headwind could that be for the u. S. Economy in your view . Well, here we are again were in a crisis mode again last minute. We have eight working days between now and the last of july when the senate and house typically go back in the state the debt ceiling right now is sometime early this year, we actually would have had the treasury not been using extraordinary measures, wed already hit it that will hit sometime in september. We got eight working days now between now and the end of judgment trying to get the appropriations done on the other side, getting the budget deal is moving. Secretary mnuchin and Speaker Pelosi are supposed to meet later today. Im hopeful they can break there down we can move in the short term, i think we can get that done that it would be twothirds of this discretionary budget what are the odds of getting it done by the 31st of july . Theyre good. A week ago, i was nervous. We did it on humanitarian, supplement am. Once the president breaks the log jam like he did on those two issues, i think with mnuchin meeting with pelosi, i think we have an opportunity to do that. Thank you for your time david perdue. Coming up, netflix losing two most popular shows, is it a sign like warner media are gaining leverage or has netflix aealrdy won the game well discuss thatf a the break. Well discuss thatf a the break. Hey. So whether im processing claims due to this fine gentleman. car engine starting or suggesting priums for this young lady. Ai can help change everything at this company. Expect more from ai. Ibm watson. Jimmys gotten used to his whole yup, hes gone noseblind. Odors. He thinks it smells fine, but his mom smells this. Luckily for all your hardtowash fabrics. Theres febreze fabric refresher. Febreze doesnt just mask, it eliminates odors youve. Gone noseblind to. And try Febreze Unstopables for fabric. With up to twice the fresh scent power, youll want to try it. Again and again and maybe just one more time. Indulge in irresistible freshness. Febreze unstopables. Breathe happy. Mno kidding. Rd. But moving your internet and tv . Thats easy. Easy . easy . Easy. Because now xfinity lets you transfer your Service Online in just about a minute with a few simple steps. Really . Really. That was easy. Yup. Plus, with twohour appointment windows, its all on your schedule. Awesome. Now all you have to do is move. That thing. [ sigh ] introducing an easier way to move with xfinity. Its just another way were working to make your life simple, easy, awesome. Go to xfinity. Com moving to get started. No one is going to compete with netflix in gross subscribers. I plev they have won the game. There is nothing i can see will dislodge them. Amazon is in a different business in that its selling prime, which gives you all sorts of Services Just among them, video and Television Disney has the best chance, just because of its very, very popular content. And the money and distribution that, of course, isc cramer barry diller weighing in on the streaming war. Netflix is losing as rivals are ramping up competition for eyeball and subscribers s. Diller right has netflix already won the game joining us to discuss is rich greenfield, a tnt analyst at btig a lot of alphabet soup first of all, rich, i want you to convince our view, they should be interested in media as we are i think they are in it this whole sun valley, everything we do we love it. I dont know why, should they . People are spending more time watching content than ever before the amount of amazing content being created. What we have learned playing off what diller just said is the whole world is actually going to streaming. Linear tv, no offense to what we are doing right here, its in trouble. Its in secular decline. But video viewing is exploding literally exploding. I dont care whether we talk netflix, amazon, disney plus or hbo max or facebook, you see snapchat doing more shows. Content is exploding have you so much amazing content, with more money put in than ever before, this is the best time to be a consumer who loves content. We have that discussion s. Content still king why is that ever just not, you know because the platform matters even more now. Not as much as content . You need content. But you look at Something Like birdbox. Birdbox or murder mystery, murder mystery is not the best movie. I dont know if you watched it on netflix i tried to i did not get to it but when you put great content in front of the consumer, sorry, good content, not great content in front of the consumer, you dont charge incrementally for it, make it easy to watch on any device, pick up and start. You dont always need to have the best, people dont watch game of thrones 24 7 right now they turn on cnbc, food network you had them talk object about this yesterday people watch things not only high end come dis and dramas there is a diverse set of content people watch every day so when you build these services, you need to have lots of content that fits all different times of viewership. You think netflix has a pretty good meat everybody is getting into that business thats the difference from last year. Last year we werent sure everyone was going to chase. Now everyone is saying, netflix, are you right. There is the way the world is doing. Can anyone do it better than net flex they have the contoept. Disney has the best content with the fox acquisition. But remember, content is just a piece of this technology, i mean, the Actual Experience of what netflix creates, the Global Platform, the quality of streaming on every device everywhere in the world. Why cant disney do it . Have you ever tried to download a show on amazon prime, vs. Netflix. We wouldnt have enough time relative to the second it takes on Netflix Technology is hard and netflix, thats all they do i think there is something to be said for the only thing netflix does is streaming video. All the other companies we can talk about they do many other things. I think thats a distraction or makes it hard to focus purely on streaming. Look, it certainly argues, you think about sun valley, it argues, all of these Companies Need to get bigger i heard david on here yesterday, you asked him if he was for sale he said no way discovery is for sale. There may not be a buyer because Companies Like comcast and disney and via com, cbs havent merged yet there will be consolidation. I was thinking 16 billion or so thats a big number. Youd have to take 30, wouldnt you . Comcast is a pretty big company. Disney is a big company, via koym and cbs. Wouldnt you have to take 35 oring . The headwinds are not going oway, i call the next five years the let in flicks era, the netflix effect core cuting is getting worse all the companies that are entering the bundle, all the great content, mannedalarian, all these are coming on services that dont require a bundle. I think you will see core cutting. I dont know how much youd spend, id be shocked if you didnt see greater consolidation over the next two years. If are you on netflix right now, the question is not oh, no, obviously, they have the momentum its not necessarily theyre not going away right now. But, what itself the path and the pace to whatever number of global subs you think is really there, what they need to make the Business Model work really well was it three or four or 500 million . If you think about it, three years ago, if you asked ne your Netflix Global subscribers in the coming year, you would have said probably 4to5 million, call it around 16, Million Subscriber additions a year. Last year they put up 30 theyre accelerating q1, obviously, was a good quarter. Well see what q1 looks like next week. My point is, theyve crushed expectations, could this be a 3 or 4 Million Subscriber business absolutely the scale is pretty incredible theyre Getting Started in asia. Theyve done incredibly well in the western world, including middle east and europe its been incredible asia is the next frontier, theyre just scratching the surface in india and japan the middle class in india is bigger than the United States market there is a huge long term potential as they expand overseas all these other Companies Getting into the streaming space makes it easier for the consumer they will look at the price value of the bundle. Comcast still has broadband, directv is suffering, thats a hard place to be. In terms of consolidation, who is on the for kale list . Should we think of buyers being not just Media Companies by fang companies . The fang companies to date have looked at what netflix has created, what amazon has created and go, why do we need to buy one of these countries we have lots of money, money is not a problem for apple. So if they want to go higher, Jennifer Anson and Reese Witherspoon i think they will hire you all they will hire the talent out of the industry and just recreate a studio from scratch. The existing companies, though, are all going tokind of rush a much as they can to get bigger and big zber with which acquisition . You mentioned discovery . Lions gate, for instance . Lions gate, mgm, Companies Like twitter should be achoired. That could add a lot of value as a platform. Spotify is a company that should get acquired looking at the Global Platform it provides. I think you will see substantial consolidation over the years as people realize its not just content. Everybody will win. You point out there is still a lot of owe shows people carry. Arent things going to fall by the wayside . If you look at friends and the Office Leaving Netflix i think one of the mistakes being made is you werent signing up to watch friends or the office. You dengue end your subscription when house of cards was over. You were board and its comfort television friend isnt on netflix. Do you watch Something Else because there is a gaville other shows on your bucket list . Im betting you will find Something Else like you found a murder mystery yet, you are going to stumble upon it . I thought i might i might not. In that vote, Sandra Bullock was peaking. Why didnt she die you couldnt steer that thing down i had to suspend a lot of disbelief with old bird bath. You look at the rock, the rock is dog movie on netflix a huge 130 million movie. I thought millennials were experiential is watching a screen an experience this is never going to go out of fashion . Content . I think people want to watch content wherever they want on their terms. And nobody is going to lose it sounds like really great days for media. I think cable and broadcast are going to face real challenges thats why their pivoting. Disney threw down the gaunt. They are telling you, the future is not the bundle. You had eiger on cnbc saying nobody wants to pay for 150 channels anymore its interesting to see, as you launch new streaming services, that increases the hole in the buck, how does wall street hand him the troughs between tradeoffs between new businesses can you make prediction, who will buy whom . Viacom will merge and theyre going to make the next step. This is just the beginning whether its discovery or lions gate or mgm you combine cbs and viacom buying a Smaller Company you either buy or scale up or youre a seller. I dont think sitting still anymore makes sense. The only asset i think shouldnt get bought, we heard headlines of univision being for sale. I cant understand why anybody wants to buy that asset at this valuation today. I asked you off camera about valuations between netflix and disney or netflix and comcast. You think its okay. You wouldnt not one is over valued versus the other because of the future, the growth rate consumer love and technology are really hard. And the global business. The fact that netflix has people watching is rarely original. Its not undiscovered its a 165 billion company. It was a 30 billion company sure. People hated it at 30 billion. People hated it at 100 million. Is it going to a trillion its going a lot higher it is maybe you know but these things happen. As you look at it over the next few years, this is just the beginning. Theyre all telling you, streaming is the future. Netflix is the future. All right thank you, rich. Coming up, a preview of todays hearing on the hill, well talk fed and the market and chief economist and the futures, the dow is up 94. Squawk box returns after this break. Or could it turn out differently . My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 of patients on eliquis didnt experience another. And eliquis has significantly less major bleeding than the standard treatment. Eliquis is fdaapproved and has both. Dont stop eliquis unless your doctor tells you to. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. If you had a spinal injection while on eliquis call your doctor right away if you have tingling, numbness, or muscle weakness. While taking eliquis, you may bruise more easily and it may take longer than usual for bleeding to stop. Seek immediate medical care for sudden signs of bleeding, like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planned medical or dental procedures. Whats around the corner could be surprising. Ask your doctor about eliquis. Whats around the corner could be surprising. Is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. Every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Because the possibilities of life and investing are greater when we come together. Jay powell on capitol hill, take two the markets like what they heard from the fed chief yesterday what does he have up his sleeve today. The deltas company ceo talks to us. Plus, evening the score. Well be joined by the man representing halfof the u. S. World soccer team. Find out how he is writing the lopsided pay structure in sports as the final hour of squawk box begins right now. Announcer live from the most powerful city in the world, new york this is squawk box. Good morning, welcome back to squawk box here on cnbc its already 8 00. Live from the Nasdaq Market site if times square im joe kernon along with mellissa lee were talking about media, are you sure were not in a media bubble i think when we talk about netflix and streaming. Are you interested in media i kind of am. Are you talking about trunk and newspapers i am not so much an investor, im a viewer its media or its a low bar. This is true. Good to have you here with us lets look at the futures, which are up triple digits, 106 points theyd give up 3,000 on the s p. We never closeed that high before nasdaq indicated up about 27 in treasury yields, given up kind of figure them out 2. 06 with new highs in the market and 3 gdp and sub4 unemployment, all makes perfect sense. We have a market flash. Politico says the Trump Administration has withdrawn a proposal to eliminate drug plans. They are rising sharply, in fact United Health is up by more than 2 walgreens up 3 . Cvs a gain of 4 , all higher Delta Airlines reporting Second Quarter results last hour the company reporting adjusted earnings of 275. Revenues came inline, delta raised the profits following strong travel demand joining us, delta Ceo Ed Bastian commented on the ongoing troubles with boeing 737 max boeing does not fly the plane and he says that helped so much. We do not fly the max and clearly there was a benefit for the airline in the quarter i dont think there was a significant benefit. Clearly, its not explaining the strength of the brand and the service our people are putting forth. We saw a marginal bench i dont think thats the reason for these numbers. Lets again take a look at shares of delta up 2 . 52week highs just over 61. Fed chairman j. Powell sits down for day two of testimony in congress plenty of questions on the outlook for policies remains Steve Leishman joins us with more you think after five hours, all the questions would be answered. You would think we need more one question was answered squarely fed chairman Jerome Powells dovish testimony, its clear a rate cut is on the way, how big a cut and after july, how many cuts sit one and done or is start of an easing psych that could push down rates over the course of a year lets look at the probabilities for july only. The chance of a cut is 100 , with the chance of 25 at 72 , a chance of a 50 basis point cut at 28 before the testimony, that 50 probability was down near zero he says powells comments,er dovish to keep alive the 50 basis point rate cut this month. We still think 25 is much more likely its difficult to look through the pricing of one month in thes markets to the later months. But the market looks priced now for 75 basis points or threequarters easing over the rest of the year here are the probabilities you got your 100 in july we showed you 75 for september. September, 60 there is skepticism about the need for one, record high stock prices, low unemployment you already have low rates you trend gdp growth all this suggests, especially chairman powell looking through the strong jobs report the fed is no longer data dependent. He cant predict what he will do, he doesnt know how he will react to the data. We want to bring in our guests and former chair she will bear, welcome to you both. I will pick up where steve sort of left off on his report. That is how fed chair powell addressed the strong jobs report we got the message toll looked through that one data point. Does that sort of discount the data we will get in the weeks leading up to this next fed meeting . They are leaning so far forward towards easing its hard to imagine a data point that will pull them back they were close at the june meeting. He was far forward in the press conference they confirmed it in the minutes and in his testimony in some sense, you should listen to what he didnt say and what he didnt say at all is push back against the expectation of easing it having decided not to do that it meant he was accepting. In that case, silence implies consent. Sheila, what did you make of the testimony yesterday. And what did you think the fed chair might have left out . Well, i do think he really emphasized the weaknesses and kind of glossed over the strength i agree, it was highly dovish. I think he linked himself into a basis cut. Im not sure why they raised in december when they should have hit pause it seems like theyre going the opposite direction one good part about this politically, it was a masterful performance. Nobody will suspect he is doing there to help the Trump Administration, even though the trump bashing of jerome pow em we have been confident, they are doing based on what is good for economy. I have no doubt thats what is driving the motivation. You said you werent really sure of why he would lock himself in to this extent. Do you think that he is seeing cross currents that are maybe even worse maybe maybe he is seeing something we are not seeing but it was a very strong jobs report im very optimistic, i have a true stand with china, hopefully, get a trade agreement there, the whole premise we use low Interest Rates to drive the economy. We have been doing that a decade now. Alan greenspan throughout 12, 13 years, was able to manage, mute the cycles with aggressive Interest Rate policy it was still over 5 back then a lot of people think thats what led to the excesses that let the tech bubble burst. There are downsides by doing this he didnt mention that at all. I find that disappointing. Vince, where does this rate cut fit in to where the cycle is globally its a manufacturing slow down, clearly. Most of the weaknesses in overseas economies we have this anomaly where shortterm rates are high across the rest of the world. Is this really a response to a genuine threat to the economic expansion . A lot of confusion here, including, 75 basis points of ease is priced into markets is not buying insurance thats a panicked response to economic weakness. When you look around, its hard to see that sort of weakness in the u. S. Economy so more than anything, i think you are right. The fed feels uncomfortable sticking out among the community of advanced economies Central Banks and that pressure on the dollar, the force of low rates, you know, 13 trillion of sovereign debts and negative yields around the world. Thats leaving them to want to get into better alignment. One point to sheila, sheilas point about what the chair didnt also say, there was no admission of guilt everything was late breaking developments, that said, here is this new risk to the noble outlook or risk on trade there was no sense that, gee, maybe that last move in december was a little too much or maybe we havent gotten the inflation we expected that led us to this tightening were correcting that and the problem is, if you dont admit that, then you are probably not acknowledging it in your own discussions. Steve i was just going to ask she louisiana i think sheila behr probably dealt with the federal se serve at the fdic than any other chairman, because she was with them lockstep during the crisis, working on policy. She larks you remember, there was a dynamic on the Federal Reserve, you had your hawks that kind of limited how far youd go right you had your doves that were like lets go all the way. As a reporter, you cover that dynamic. Im missing that dynamic here. When you look at the Federal Reserve now, do you see the same old idea there are some people that say lets not go that far and some people saying lets go all the way here or everybody says, lets cut, we are all on board . Yeah, it seems to be a unified front at this point. You know, i think there again, i think there is some dynamic with the president unfortunately bashing the fed and chairman powell personally. My guess its feeding into that unanimity. I dont sense the more robust discussions we are seeing previously you are seeing that on the supervisory side theyre still easing on the supervisory side too so are you more on the left brainer catch or the randy cross camp im going to talk too randy later today . I know randy well i served with him in the Bush Administration i have respect for him i am in the moral camp i think if theyre going to keep this party going with the asset bubble you know highly accommodative Monetary Policy creates, they need to be tightening, not loosening on supervisory policy theyre not leverage loans a lot of worrying about it fought doing a lot about it. No chemicalistic buffers there are a lot of things they are not doing now. I think they are right on that for sure. Guys. We will let you go we appreciate it sheila will stick around we want to discuss millennials and credit cards, called invest in you, ready, set, go, the microinvesting app sheila is a member of the Advisory Council she has an oped out, sheila, the numbers are staggering in terms of how many millennials get caught up in this bad debt cycle . It is, theyre sharing, after early on showing a bit of a version, especially the credit card debt, theyre all in now, and not managing it well i think thats unfortunate its as a society, we bear some responsibility for that you look at their life experiences. They lived through a crisis caused by too much debt. Into recovery that was generated by trying to borrow at very low rates, punishing savers, rewarding borrowers. They are encouraged to take out student debt to pay for college our government has been highly profitable, too, during most of their lives. I think theyre confused about it i dont think they know how to manage it or understand it they dont care about salary. They care about Workplace Culture. Thats what we were talking about earlier, huh there is a bigger problem you do need to earn a paycheck, though, it helps with your debt service. I think im easier on millennials and harder on baby boomers, my generation i think financial basics they dont get or understand. Front and center of that is debt what is it, how do you use it . I think there is a real drift. I was pleased to see the Treasury Department to come out with a recommendation to make a Financial Literacy mandatory, at least at the College Level i have been a longterm advocate for that it should be in court year after year its not millennials are a pronounced problem. Lets face it, the whole society does not do a good job is the core education, lack of education or do Credit Card Companies bear some responsibility i think they bear some responsibility they are cynical about it. Some of them there is a lot of research that shows that the millennials like the big up front rewards, even though the ability to transfer and as your balance might be a better bet for them. Some of the issueers are buying into that with aggressive marketing so, i think thats unfortunate. Sheila, great to have you, thank you very much. You can seed sheilas piece, visit cnbc. Com, invest in you. We should know Comcast Centers are investors in akorn. Coming up, a repeat world cup winner still vastly underpaid when it comes to the sports biggest tournament what are the lopsided economics behind this . How can soccer leaders get it when we come back . We will try to find some answers, the man whose Company Represents more than half of this summers championship team. Stay tuned you are watching squawk box on cnbc hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Yes, we play sports, yes, we play soccer. Were female athletes. Were so much more thanthat ar you so much more than that are you more than a fan. Are you more than someone who just supports sports are you more than someone who tunes in every four years. That was soccer star reckon rappinhoe at new york city hall, following the u. S. Womens National Soccer team america defeated the netherlands on sunday to win its fourth world cup. We will talk about equality in sports we head out to sun valley idaho, Julia Boorstin joins us with a special guest. Reporter thanks, so much, i am joined by casey wasserman, a super sports act you run a large sports agency. Wasserman. You are now announcing a new division, the collective focused on female athletes tell us about this. It starts with incredible leadership, elizabeth lindsay, some of the most talented executives in the industry who have really pushed our company forward. We represent some of the greatest athletes in the world we advise big Global Brands how they connect with consumers. Obviously, women are incredibly important. So taking that expertise that leadership, to bring it altogether so we can speak to the scale thats required in the world today under one banner taking advantage of all of your assets so you worked with nike, in helping them deal with their issues around not continuing to pay their athletes and this is something that became a huge issue for nike and the touch point for the industry, what was your role in that what do you think that whole issue will mean for a few more athletes going for . Well, lindsay represents an Incredible Group of athletes, a shoe renewal and brought it to my attention pregnancy was treat similarly to other athletes, to her credit, she pushed hard. I had relations with nike and to nikes credit, a yearandahalf ago they made a change in that contract i think what happened afterwards is nike didnt go about talking about it in the way they should have but they did the right thing with the clients our leadership in the industry allowed us to push that forward, frankly, its a great thing we did for the clients. You represent about half the womens soccer team, it seems to me like there is a moment right now happening. How would you describe the response to the soccer teams win and what they will mean for your business Going Forward in terms of sponsorships and new media deals . Well, lets start with theyre an Incredible Group of women who have been the most dom noont soccer team maybe in the world let alone womens soccer they are a dominant soccer team period they are an Incredible Group of athletes and leaders in our world so to win at this moment in time is incredible. To have leadership on that team like megan and alex morgan and others to really be an incredible voice the way they have handled this entire process this situation, to be xend and our job is to serve them in every way we can, which is about creating more opportunity, more awareness, more avenues for them to be leaders. They are an Incredible Group for you as agents, do you think these athletes are seen as having an audience and a fan base much bigger than women and young girls . I certainly hope so they do. Theyve captivated this country. The country of france was completely engaged in the worlds world cup to their credit i cant tell you how many people, the first question they have me. How many people do you represent . Do you represent megan its incredible. I hope the world recognizes how powerful they can be they have been focused on equal pay, the fact that they are getting paid less and have more revenue and higher ratings. What will change that . Its an untenable position for soccer they should be paid equally. I dont know why its taking so long or a question they have four stars on their jersey they are the model of success in every way, they deserve equal pay. It shouldnt be a conversation that were talking about it, if they have to win a world cup to make it a thing is crazy this should have been done a long time ago. Shame on u. S. Soccer for not doing more. How soon do you think that will be . The day it brought up and made it a public issue it should have been done every day is run with day too long now that world cup is over, were seeing phenomenal female athletes play in wimbledon, what itself sort of next big thing that will continue to raise the profile with some of your clients . I think the league structures, the wnba, which season is going on right now doing incredible things for women sports, women athletes my daughter looks up to league players. It continues to have the support of not just nba owners, the Larger Community obviously of the olympics in 2020, where there are more women on team usa than men they win more medals and they are the kind of people you want your kids to be. So whether its katie la deck ki or our track stars, you will see incredible performances in tokyo. We need to have every chance to achieve the success they do on the field off the field. Thank you for taking time to talk to us today guys, over to you. July Yellowstone National park thank you very much come julia, thank you very much. Stay tuned you are watching squawk box on cnbc we can do the screening at her house. Hi. This is the man thats going to check your eyes grandma. Cognizant ai solutions are helping Healthcare Companies advance diagnostics and prevent blindness in patients with diabetes. Everything looks good. You have beautiful eyes. Virgin galactic is planning to go public its an exciting time. The Investment Community is beginning to take intan in it. It was wealthy people going for a joyride. As it became a necessity basically, its about capitalizing everything from Space Tourism to potentially hypersonic air travel. We are the only station at the Company Whose sheship is shaped like an airplane. Welcome back to squawk box. The future versus added to the gains in the premarket session up 117 now on the dow and the nasdaq indicated up 26, s p up 8. 5. Coming up, breaking nick data, the latest reason jobless claims out in justines mut we will have potentially markmoving data for you as squawk box returns whoa. Travis in it made it. Its amazing. Oh is that traviss app . Its pretty cool, isnt it . Theres two of them. Theyre multiplying. No, guys, its me. See, im real. Im real he thinks hes real. Geico. Over 75 years of savings and service. Who used expedia to book the Vacation Rental that led to the ride which took them to the place where they discovered that sometimes a little down time can lift you right up. Flights, hotels, cars, activities, Vacation Rentals. Expedia. Everything you need to go. Welcome back to squawk box on cnbc, live in squawk square. Were trying to get that started virally. Were seconds away from the latest read on cpi and jobs will claims, the futures are now 120 ahead on the dow jones s p would be up above 3,000. The nasdaq is solidly higher to new ground of 27 points, the ten year treasury note is now at 2. 06 this morning. The surge to 2. 1 powell talked yesterday, it fell below 2. 6. Rick, you have some numbers for us, . Give them to us, please. Yes, the buzzer, please lets start out with jobless claims, sham we . They moved from 220,000 down to 209,000. So we shaved 13,000. That was slightly revised. It was originally released continuing claims moved up a smidge from 1. 69 plus million to 1. 723. Now for the money number, the cpi for the month of june up. 1 on headline, thats actually hotter than expected we were looking for unchanged, following 110. Strip off food and energy a bit hotter up. 3, year over year up 1. 6 and my number maybe year over year core 2. 1 it started in march of 2018. This is now the 16th consecutive month. The cpi obviously should have more of an impact on the psyche of investors tan ppi you know, its not happening its definitely warmer tan we are anticipating on the core you are right, joe, 206. Matter of fact, we settled yesterday at 206 the day before, now we popped up the 208. I find it very interesting to find whether we agree or disagree on the signals that the fed chairman is sending regarding easing if it will have efficacy in controlling the issues they are trying to tame in the final analysis, it is very interesting that the curve continues to hold its steepness. The shortened is really where all the rambunctious trading was. We havent dipped below 2 it will be fascinating to watch the particularly 30year bonds the 30year bonds were really quite oblivious to some of the pressures pushing rates down and prices up over the last weekandahalf or so over to you. We have watched the ten year pick up in we saw the dow up 180. A small percentage move. But i guess its easy to figure. Its a little loter. Anything that throws any cold water on the rate cut scenario, people dont like it god forbid the economy grows more than anticipated. We all know what this is. We have to figure out how much of this is being you know fed is a crutch for the equity markets. You have to wait and see. Where did you get florida or some guy i bet you on the floor. I took it from him. It was a favor so no worries. If we talk about having a boot on your neck. Are you ready for it do you have that prop ready, too . Reporter i wear those props every day, hopefully, i wont have this be a daily prop. At least not any time soon interest go ahead. Thanks, rick. Joining us to talk more about the economy and this latest data, we are talking about jim paulsen is here. First, lets get to cnbc economic reporter Steve Leishman for his take. Yes, thanks very much, mike there is some firmness in this report here. Kind of interesting that fed chairman jay powell has kind of come off his idea that some of the decline in the cpi and inflation number was transitory just as some of the transitory things reversed themselves first of all, have you this big decline in gasoline prices i think that appears to be reversing itself a big increase in power prices, 1. 1 remember we went through how there was a change in methodology, big data, now its come back as well, medical care has been up 0. 3 and some other factors in here look like theyre pretty firm, including housing, shelter, this is going to translate into perhaps a somewhat higher pce core which is what the Federal Reserve uses most the other thing thats interesting is the jobless claims number tells us that the job market remains pretty strong and maybe that 200,000 plus number we got on friday was not a fluke. So its pretty interesting you still have this firmness in jobs and firmness here in inflation. Well see if that continues. It certainly will, steve. Jim, fit this into the general outlook here do you think the markets will have to do a rethink on maybe not whether we get a cut in july and how deep this will go. Were not making this very easy, are we we keep challenging the fed will be cutting rates with a pretty strong job market and inflation turning back up to full employment. Back at 8500 maybe . I think they will do t. But its difficult to make the regular case for easing right now. I think there is still a good case on two fronts one is the fed funds rate is so out of bounds with any rate in the world, just to get in the same zip code as the rest of the world assesses things. And then i still think, too, that we got, they can fully take that risk oust of the marketplace. I think with the hot cpi number today, the fed looks at its two risks. Which one is a dual mandate. Which one is riskier i still think you come on riskier as the growth side of the equation and if inflation comes up, you know, to some extent, i would like to see inflation come up before the next recession if we go into the next session with a building to show overheat, that might be a success. I think the fed you know is going to go ahead and but theyre not making this easy. No no, theyre not how are that priced, both might have a little bit of life in it and the fact that the fed maybe is going to do the one and wait and see for a while. I think a lot theyre one and done i kind of do im kind of interested there is not a lot of people expecting aksccelerated economi growth hardly any economists are predicting that. Yet if you step pack from everything, were good, we bought the money sly 1 to 2. 5 we got 130 basis point drop in longterm yields and yield ace cross the spectrum we got fiscal deficit as a percent of gdp from 3. 7 a year ago to 4. 7 . With all that still lakes, normally, everyone would be predicting a pickup and virtually no one s. I think its going to pick up and thats why i think the fed may cut this rate. Then i think they will be done, i think rates might be going up before the year is out as the economy starts to go pack. Have we seen, steve, fed funds futures move for later cuts at this point you know, if fall sen wasnt so darn compelling, i wouldnt lift that up im clickening on it now its going to refresh in a minute i dont see it really move no you are still 100 on july, you are still 77 on september. So, no, that rate cut is still pretty much baked in hey, guys, we have sheila there. I didnt know she was going to be there i didnt look at the guest list. I was going to call her. I have an interview with fed choice chair randy quarless. Do you mind . I was going to ask her about some of the banking changes out there. Let me say one other thing jim is right that most people are predicting weaker growth the kind of belief in the continuing benefits of the tax cuts, people pretty much dialed out along with the idea i think they wrongly dialed in the idea that the spending from last year was going to be in 2018. But, in fact, it seems to have come over and the journal wrote a story about the missing stimulus in the national accounts, i think eventually shows up can you put a number on that are you 2andahalf to 3 . Are they getting the glorious 3 number again this year i dont know about 3 i think were back in the 2ish to two and a yartquarter, to twoandahalf its been wonderful for bringing Unemployment Rate down and wonderful more futureing the stock market up. I dont see where that is so bad. We had three growth in the First Quarter. We are probably around 2 in the second the full also and intern also of the Second Quarter, steve, will be better than the first and i just think people are a little too pessimistic on this slowing down one big oddity weve never had fiscal stimulus this late in a psych to him this magnitude before i think that will screw with everyones traditional playbook here yield curve may be inverted. This is the first time we had inverted yield curve with expansive juice. Im not sure which one will win out. I suspect it will be fiscal policy. We will see if that good news remains good news for the markets. Steve, jim, rick, thank you very much. Coming up, what if you held a certainly media summit and social media didnt show up . Well, thats what can happen in washington at least when it comes to the major players. We will explain and jeffrey epstein, he is facing charges with underage girls. His fortesun dont appear to be all thats advertised. Well have that story when squawk box returns. Their new resources on Jeffrey Epsteins coverage of underage girls there is a lot of the piece, a lot of good reporting. But of the names, the bold faced names, im from ohio weeksner how did he get ron pearlman down in palm beach . Its bizarre that this guys scope and his contacts were so wide i mean, he must have been a pretty engaging guy. Right . Yeah. I mean, he strikes me. I have never met him personally. He strikes me as a guy that has a townhouse and people from culture, business, politics, come over for dinners, long discussions, and he has ties to harvard at one point he is known as a mathematician even though he doesnt have an undergraduate degree she philanthropic. Lots of ties the weeksner introduction. Apparently he charmed the chairman of aeon insurance on an airplane at some point in the fine 80s who then introduced him to weeksn wexners team a meeting on a plane, leads him to the ceo of aeuon. He was unhappy and property epstein on to manage his money it seems like what epstein was doing according to our reporting. I should say i work with a great group of colleagues on this is sort of a Family Office type of thing before we used that term he would manage wexners wealth and hills family members and their wealth the exact nature is unknown as is the Fee Structure you know, if he were charging 1 for example of somebody like Leslie Wexners assets, that can bring in sizable fees. We dont know if that was what he was doing. We commonly referred to him as a hedge fund manager, obviously, given him the billion fair title none of it seems to fit. Not a lot of a foot print in terms of trading activities or pilings. It shows his real estate is 2 million zone he has an island in the caribbean and a fabulous townhouse. Not one of the best islands, i dont think. On the lower end, not in the best neighborhood. Right so anyway, he has a huge ranch in new mexico. He has a number of properties clearly worth real money in terms of his assets and cash, we dont know. He was a Private Banking client of Deutsche Bank we talk about that and the fact that he was actively currency trading until earlier this year when Deutsche Bank parted ways with him as a client for reputational bizarre. Reputational issues as opposed to 12 years ago when the charges were first brought. Thats the other odd thing, in 2008 as reported, there was a similar set of charges of what many regard now as too light of a sentence at that point you would think people would fall away he did apparently break ties with wexner and Apollo Management people continue to contact him socially there was a coinvestment that black and some of his children made with epstein in a small environmental admissions Device Company as recently as 2011 and reportedly, epstein was on the board of leon black and his familys foundation until 2012 i should add the blacks are now saying that was like a typo. It shouldnt have been on the 990s actually he resigned in 07. There were social ties that went on. What will you do the rest of the day, theing in week. This story, where are you going . I think i will respond to all the incoming tips we are getting about lpts of epsteinscareer that may be questionable or deserve further inquiry. My colleagues at the times are doing great work your boss is here, ed lee you told me you are running the entire no. Did we have to clear it with him . Absolutely. He came up with my talking points you want to come on . Exactly i had the cards back here. She is watching im here for you, joe i just wondered in all seriousness, great jim stewart led this effort. I think as i dont know how much is there. But were owe its not necessarily a business story until you start taking these angles im not saying we have a pure interest in these things its such a big story. We follow. You didnt talk about steve hoffenberg, a former owner of the fork post and convicted fraudster. There is a forfeiture element. For other assets thatry not able to 62 you are that when needed is going to be a real story line, not to mention people are keen to know more about who this guy is, how he became this pugent soundtive this pugitively wealthy figure President Trump convening events on social media, its lacking key participants mellissa, its called a social media summit. But there are no social Media Companies. In fact, i am told they were not even invited instead, President Trump is meeting with conservatives who say the platforms are biased against them this morning, the president used twitter to tout the summit saying it will be very big and very important and would he be president would you tell social media . He said, yes, arguably he says they are abusing section 230, which gives them Legal Protection from users post and thats the bedrock of their Business Model however, i suspect there will be a lot of debate whether to change or get rid of those protection also, meanwhile, Internet Companies are trying to run offense on this a trade group that represents the major platforms is joining forces with 14 other conservative groups to oppose any changes to section 230. In a letter to capitol hill. They said content moderation by large tech firms is far from perfect, but weakening or removing section 230 would strengthen the hand to silent speech trump is scheduled to speak at 3 45, we will keep you posted on what he says, back over to you. Thanks, appreciate it facebook is not invited to this afternoons summit, but it will certainly be discussed. The company has been under fire in walk. Now Silicon Valley may be shifting investment views when it comes to social media joining to us talk about this from from a partner at Venture Partners and here with us the New York TimesCorporate Media reporter and cnbc contributor ed lee. Welcome to you both. What do you make of this of facebook not being there, ed we should call this what it is its a Campaign Event at the white house for a lot of his supporters online. Right. If you want to do a Campaign Event. If you want to calm it a social media summit and say this is a way to conven people within this circle and talk about issues in terms of whether there is censorship or not. Thats a different matter. I dont think thats what this looks like hi, good morning. Thanks for being up with us. I dont know what time my god. No problem. Happy to be here were early stage investors. We invest in seed and series a companies. A big Consumer Trend were seeing in terms of how people are thinking about the world around them is how do they gather, where do they find community, where do they connect. And historically, thats been across platforms like facebook, twitter, name all the social platforms. Increasingly, were seeing this Swiss Army Knife type approach not working as effectively for users. Theres too many things going on, and its becoming unwieldy because of that, were seeing a trend around companies and founders going out and starting businesses that are more single purpose. A place where a user can do one or very few things and if you think about some of the conversations that are happening on facebook or some of these other social platforms, lets say communities that are talking about their intimate health details, People Living with medical conditions or families who have children with medical conditions, and as we think about how consumers are perceiving and viewing the trust or the lack of trust on some of these social platforms, we see the opportunity for standalone platforms that can begin to form and develop and be billiondollar businesses where people find more trust around very specific things, such as health thats interesting because so much of the investment thesis right now in the valley, at least for the last few years, has been anything that might remotely take on facebook or google is not investable you shouldnt put money into that seems like youre getting at something here that sort of gets around that, or has the sentiment shifted . So there are a lot of behaviors that live today on facebook or other social platforms and not all of these behaviors are well accommodated for. These behaviors, we believe, can be standalone businesses an example is discord. That communication around gaming and the interaction in these gaming communitiesing happen on a platform like a facebook or a twitter, wherever. But the fact that discord can live on its own and how these interactions and intimate, connected ways really exemplifies theres appetite for that and increasingly, especially with younger generations, with gen z, which a lot of investors are thinking very deeply about, how do these individuals think, communicate, perceive the world around them. Theres tremendous opportunity to build something thats very unique for them and for the way they live and exist and create in this world. Thats what the summit is kind of getting at, too, if you think about it its our cipher, our little group here we trust each other. We like to talk to each other, including trump, right but in terms of these investment dollars going into these sort of very specialized, smaller companies, that sort of gives into the idea that the size of facebook, the size of these mega platforms are really, you know, consuming all the oxygen in the room thats the argument for breaking up these companies yeah, let me give you an example. We just invested in a company this past spring called costar. Its a social app centered around astrology astrology has existed for over 2,000 years in many different forms. If you go on facebook or instagram, youll see lots of hashtags and post where is people are talking about astrology and using it to find connection and community we see theres an opportunity to unbundle that out of these social platforms and build a standalone app and a standalone social community thats entirely centered around this thats the entire if you wepurpf costar. Were seeing this kind of Human Connection on this social platform whats really exciting is i think especially in an era when people are more lonely, more depressed, there is this desire to connect around these very specific Interest Groups just with everything you said in mind, what was your initial response when libra was announced . Powell was talking about it yesterday. Just off the top of your head, what did you think and where is that headed, good bad for facebook, will it last so theres a lot of interesting things happening in the market right now, and theres opportunity for these big platforms to capture different parts of it, whether thats a marketplace, whether thats social, image sharing, whatever it is i think its an interesting space for them to get into and for their users to have exposure too early to tell where its headed, but clearly a lot of appetite and interest for people to see what are the other things that these platforms can offer and whether its something that consumers will latch on to okay. I would ask you, but were out of time. Next time yeah, next time if you have time whenever you want you ask me thank you for taking the time to come over and hope to see you again. Lets head down to the New York Stock Exchange jim cramer joining us now. I was just looking at your twitter feed i always try to do that to figure out what youre thinking about. I cant anticipate whats on your mind today . Delta on your mind we try to stay away from powell as much as we can and stay in the real world i think that theres a presumption that earnings are going to be bad or else powell wouldnt be doing what hes doing. I think that presumption is wrong. I think there are a lot of companies that are making a lot of money, but theyre not doing it with as many people i think that when i look at what delta is doing and what i know delta is doing behind the scenes to make it so the technology is better, i think these companies are very shrewd. Any pickup in business at all, theyre going to make a lot of money. Delta had some deecent business. Weve got to stop thinking powell is looking at earnings and start thinking about powell looking at these aggregate numbers and saying theres no inflation, lets just cut numbers and get back theyre so out of whack. We changed the inverted yield curve back to where it should be our rates are way too high next thing you know, we have a real bull market going i think thats going to happen, a new leg to the bull. We got the china truce, and the entire sell side street said be careful because this is one and done and theres not going to be anymore positive developments now that we got that and the market i said, i bet you the market keeps going because everybody is at 2950 on the s p. Here we are. Oh, look, morgan stanley, firm i love, earlier this week said, look, put money where your mouth is, sell stocks. I want to put money where my mouth is, buy stocks i know. Im going to watch that call joe, i hate it. I am hoping for it to be wrong. My wife said, why are you so positive i said, i know i should turn, i just cant you need to yore hualf full better to be half empty. Thanks, jim. Johnson johnson is a baby company. But were also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. From the day youre born we never stop taking care of you. From the day youre born take prilosec otc and take control of heartburn. So you dont have to stash antacids here. Here. Or, here. Kick your antacid habit with prilosec otc. One pill a day, 24 hours, zero heartburn. So should the way you bank. Virtual wallet from pnc bank. Just one way pnc is modernizing banking to help make things easier. Pnc bank. Make today the day. Final check on the markets moderated a little after that cpi number but still positive across the board almost 100 points on the dow the s p would not be above 3,00 now. Hopefully these sell side guys can get it up to 2850. Make sure you join us tomorrow squawk on the street is next good thursday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer and david faber at the New York Stock Exchange. It is powell day two this time banking after paving the way yesterday for a rate cut, steepening the curve by the most in a twoday period europe mixed bonds over there continue to see a significant selloff. Our own ten year near 208. Core cpi runs a bit warm our road map begins with s p 500 3k th