Dow is up 25 points. S p is up by 2. Nasdaq up by close to 7. Overnight in asia, better than expected Economic Data coming out of japan. Factory output rising. 1 gain to the nikkei up by 166 points. If you take a look at early trading and european markets youll see at this point thing, relatively flat. Red arrows across the board. None of these major averages down by even 0. 2 . A race looking at how european average, up on asia. They read articles like that. They dont last long in these websites. No, they dont. I guess thats the same way with print. Were going to talk about the top stories. Do you like a fourday week where you have a friday off or a fourday week definitely a monday. Its pay it forward, right . Pay it forward. You dont do anything for the friday off of the foreday week. But were youve put in five last week and get three off. Its already tuesday, everybody. Monday is gone. Its better. Its better. Among our top stories this morning, price of crude and the only markets well be watching an opec meeting in vienna thats coming up on thursday. Most are not expecting any coordinated action on production at this point. But crude prices as you know have almost doubled after hitting threeyear lows in the winter. Down around 27 now, briefly above 50 at one point last week. There was a lot of scuttlebutt, display disruption, the new guy from saudi arabia, its all happening. Thats going to continue to be something that affects Everything Else. Anyway, its a holiday short trading week. Today, look for april personal income. And then the march smp caseshiller home price index out. As well as pmi and consume confidence for may. On wednesday, were getting may ism manufacturing and then the feds beige book. While on thursday, its may automatic so sales and adp wait a second, are you kidding me . End of the month. Friday . Friday . We just did that, honestly. Time goes fast were youre having fun. Oh, my god. The may employment report. The may employment report. Its still may. Its may 31st. Okay. That is amazing. Why do they keep taking that shot . Do they want me to look over there . They love us. Its two because of wapner. Wapner is out. He had an emergency issue. Im not allowed to do that hand signal on air, am i . Yeah, i know which one. Not here, either. Its cable, why cant i do that. Were so effective with our censoring. Anyway, familiar comments from st. Louis fed president jim bulliard speaking at a conference in seoul. Bullard said that the markets seem to be well prepared for a summer Interest Rate hike. I love traders theyre such babies. You think theyve been clear enough that maybe theres one coming in june or july . Do you think everybodys ready now, they got out some of the bad trades that might go wrong or something . Indicating a 30 , to 35 chance in june to 60 eat your food, eat your food. We coddle. All right. Here comes the airplane. Here comes the airplane. Open up. We coddle these people, dont we . This time, i think theyve been pretty transparent. God forbid, weve got to now, theyre moving it over. Just two cameras. You are so smooth. Yeah. Its me. Lets tell you about new developments in the drama over Sumner Redstones media empire. Viacoms directors vowing on monday they are not going without a fight. In a letter to shareholders, the six independent share shoholdery they plan to contest any battle. They believe Sumner Redstone is legally competent to act on his free will. A letter comes from redstone issue bd his spokesman who said he was considering ousting ceo chair Philippe Dauman from the board. That move to control the shares if redstone is deemed incompetent or dies. Shares of viacom have dropped about 50 in the last two years as its Cable Network suffer from viewers cutting the cord. The stock has risen more than 15 since redstone is removed from the trust. Many believe redstones daughter shari is behind the move. Shes supports les moonves over at cbs. You dont cut the cord on things that theyve got to have. Spongebob suddenly isnt as important. Its constantly new content that comes through. Comedy central with jon stewart. You know, it depends on espn, maybe advertising issues and down slightly. But comcast has been adding. Comcast has been adding. I mean, this is an issue that people saw coming for a long time. Its an interesting chess game when you realize that there was just this battle to deem him incompetei incompetent in a different lawsuit. Right. Its a classic when you come after me. Its a classic soap opera thing with families. People eat it up. I didnt read the article today. At this point yeah. Stocks to watch today. Jazz, Jazz Pharmaceuticals is buying celator for 1. 5 billion. 30. 25 a share double from basically where it was. The Company Announced that its treatment for a deadly form of leukemia helped older highrisk patients live longer than those who received standard care. That was that a late stage cancer trial. The coo of airbus says a slowdown in bookings this year is normal. The company has only secured 92 of those orders through the first four months of 2016. John laney says as long as airbus matches order, theyll be happy. Suncore said operations north of alberta are expected following a Massive Wildfire in the area, suncor has moved 4,000 employees back in the region and bringing in another 3500 this week. Air franceklm says it is in talks to sell a stake in its catering unit to chinas hma group. That business is worth about 529 million. Hma is stepping up Global Expansion agreeing in april to buy Swiss Airline Catering Group for 1. 5 billion. Reuters reports several japanese and chinese suitors interest in cit unit. First round bids for the leasing a fleet of over 350 planes are due in june. And the ceo of singapores noble group yousef aliriza has resigned. After being accused of overstating its assets by billions of dollars. Known shares since then down about 75 . Back to the markets. U. S. Equity futures, again, last trading day of the month. You can see there are green arrows. Dow up by 20 points. S p, a point higher. Nasdaq up by 5. We want to check out the treasury market. Joe was talking about the fmoc comphevn comments. Take a look at whats happening with the dollar. Right now, looks like in the currency markets the dollar is down by the euro and yen. The euro is trading at 1. 1146. The yen at 1. 1105. Gold prices look like down slightly. The dow and s p are coming off their best week since march. Lets get more on this holidayshortened week on wall street. Julian emanuel joins us now director of u. S. Equity and strategy at ubs. Along with don sciutto. Are either one of you june or july in terms of a next rate hike . More likely, july. If youre going to do it, you might as well do it in june. Might as well and doing it are two different things, do you think they will . I think they will. Theyve laid the groundwork. Ive on an advocate of they should be doing it. British is not going to affect the yen and euro as much as people think. Its going to affect the pound. I think holding Monetary Policy back because you convince xi to move rates were talking about how sensitive the fed is to the notion that they surprised someone. What is that all from . Are they generally, are they too worried about the slightest market tremors or whatever happens . Do they watch it too closely . And then do they take it to heart when people blame them for like a 200 or 300point selloff . They know that cant happen. Are they too sensitive . Theyre not day traders by any respect but the fact is you look at the financial crisis, things are more intersected than ever. By that respect theyre prudent about thinking about prudent . They are. Its been eight years. When was it 2000 almost 09. We never had a fed that was this intimately involved with this aspect of our life. You can say the same thing with Central Banks. Were not at 4. 9 unemployment. Fact is, the fact is, if you look at the last three or four weeks the markets actually like the fact that the fed is calling the shots now, as oppose to the markets guiding the feds in a lot of ways which has been the case since the taper. The bottom line is, weve done nothing for a year because of entering into the socalled titan cycle. Weve only got be a quarter point so far. Everybody is waiting around. Weve made very little headway, whether it was the oil, oil collapse and the dollar. But it is difficult for the dollar to make headway in a tightening phase . I think whats happening our valuation are relative to activity. Theyve stretched those. Not at secure row Interest Rates. Again, relative to zero Interest Rates. Aggregate Economic Activity to drive it broader. U. S. Markets have difficulty going up. The real question is not whether the fed raises its rates 25 basis points or not, its what is the glide path towards their quote unquote normalization rate i have no idea what that should be. Neither do they, unfortunately. There seems like theres two issues. One is the fed doesnt want to surprise the markets and the markets are still 30, 35 pricing in a rate hike in june. The second is they dont want to lose credibility. After talking up the game, warning people that a rise is coming. If you dont do it in june, youre going to have to list ton a month of people criticizing you . Youre 100 correct. Remember week at a Year Anniversary in june. Theyve got 25 basis points out of it. If you really felt you needed to go where you needed that level of advertisement, you should have had more. Part of the problem for the market is, when you look at the data, the market wasnt anticipating the fed to go. The fed is data dependent. When the markets look to data, the markets said they dont need to go. Then they come out with the rhetoric and thats where they put the credibility on the line. Thats the mistake. Monetary at this stage should not be leading the economy. They should be following the economy and moving along with it. Theyre well ahead of it. Thats the problem that the markets get into every time they do something. All right. So if at some point, we think that the markets are or that the rates are going up for good reason, can then traders finally go, okay, this is actually positive . I think the last month has told you that its positive. If you look, the most encouraging thing, again, about the fed taking back the narrative in a lot of ways is the fact that financials have outperformed defenses as much as they have. And thats a very good sign. I dont know what youre talking about the fed took back the narrative. The only reason the fed has gone positive is because the markets indicated them strongly enough to say we can go up. Theyre scared and feckless and tiptoeing around normalizing rates. And its been nine years. Its a new world. And you know, coming off of zero is not an easy thing with the value, well see what happens. Were getting there. Yeah, well, well see what happens when they can look at rate effectively. Do you think were higher by the end of the year both of you . For the country . No, the stock market. Stock market . Probably not. We wont be higher . No. So theres headway . The fed is much farther along than the actual economy is. The economy is struggling. Its got global headwinds. Its got deflation head winds. Its devaluation, its not cheap. Gentlemen, thank you. When we come back from the garden state to the golden state. Hillary clinton cancelling Campaign Events in new jersey and announcing a fiveday swing in california. Later, well talk politicses with former Texas Governor rand paul hell join us. Takeover deal announced just moments ago in the Utility Industry Great Plains Energy buying wesstar energy. The deal is worth 60 per share. Closed at 52. 92 a share. W wesstar is the largest utility in the state of kansas. Bernie sanders rally was interrupted by protesters yesterday. Animal activists. Secret service covered sanders immediately and stopped the activists. At least one was met with a police baton. The group direct action everywhere took credit for the protests. They said they want to end violence against animals in the United States. Why is Bernie Sanders the target . Thats a good question. I read a couple reports on this and never got that. The rhetoric seems to cause violence at his rallies. Im not saying hes lopsided. It just seems to be his message. It just seems to be his message causes a lot of violence. Weve heard that before. Violence at a trump rally, even if theyre sent in by sanders people. Its odd for Animal Rights activists to be protesting at they want more of a socialist. Protesting him from the left. They want animals to rule us all, i guess. Bernie sanders is not the zoo director getting the flak about this. What are you going to do . Yeah. I know. The tranquilizer, it doesnt work. He was already hurting the child. He was dragging him around. They were very concerned about it. Its a terrible situation. Weve been there. I been there to see the gorillas with the family. I think he was one of the guys. Theyre so cool. Theyre awesome. They definitely interact. It looked at first like he was protecting the kid but then hes dragging him around. I get the same expression from you. The same grumpy the same gorilla attitude. For those of you who havent figured it out yet, ben white in politico is here. Weve seen Hillary Clinton saying shes cancelling some events taking place in new jersey muling out to california. Is that because she has to . It is because she has to. Shes probably going to get the nomination the total number, the last thing she wants on that day is the final head line to be Hillary Clinton loses california to Bernie Sanders. That would embolden sanders to go to the convention and demand more from her and it would look like she doesnt have a hard grip on the nomination. She leafs new jersey to go to california where polls show theyre pretty much tied. So she could avoid that negative headline but bernie won california. Maybe he can win enough superdelegates. Its important that she wins california. Even if she wins california is it a given no, Bernie Sanders has said he will be in the campaign throughout and not concede until the convention. Its not a give at all unless she wins california. To say shes won the biggest state in the nation. Shes got a big lead in the popular vote. We need to organize to take on donald trump here. Come into the fold. Its going to be tough either way. Its a lot easier. People say a tough primary makes you stronger. That may not be the case in this situation . Im not sure that is the case. Given how angry supporters are who think the superdelegate thing is not at all fair. Its party insiders. They think the Party Nomination process has not been fair. Its going to take a while to bring those people on board. If you remove the superdelegates would Hillary Clinton still win . She still has a couple more million votes and pledged lead in delegates. California is say proportional state so each will get delegates there. Youll have more pledged votes from sanders any way you cut it its hard to make the argument that he should make the nomination. You saw the huffing post piece that had to be taken down, it was a blog. It was a blog. This guy says hes got sources in the fbi that says an indictment is theyve decided to do it and theyre trying to figure out with justice, about how whats going to happen if they recommend it, and then justice decides not to do it. I just wonder where theres smoke theres fire. Does anyone have sources at the fbi who know this . People do have sources at the fbi. People who penned this piece, i dont know. And the delay on that saying that he had sources at the fbi. Whether its true. You can make some calls . Let me call josh gernstein. Maybe trump its been 11 years ago. 11 years ago. I know youre not a fan of this piece but this is based off of a document that was recently released. I know, though is donald trump worth the 10 billion that he claims . He should have said im mitt romney, im only worth 200 million. Then you find out oh, my god, hes actually worth 1. 5 billion. Were arguing about were arguing the question is the candidates veracity. Right, however, we are arguing about is he at thing the truth to voters . Hes telling the truth about exaggerating. Hes got my name on it. Let me just tell you what he said . How do you value that . Some of these valuations are based on nothing, okay. The piece says he claimed 575 million in income. Hes actually counting all revenue. Thats not the bottom line. The bottom line is a lot lower than. Six months ago, they told me the same thing. I know you dont care whether donald trump says what hes worth. And why because this is a new document out in june. Now hes the presumptive nominee for president. I think it matter what is he says about his own net worth which is one of his biggest claims to the nomination. Fabulously wealthy. So it could be 15 we dont know. The American People deserve to see them. People dont care about that. Maybe they dont care but i would like to know. Talking to billionaire and financialists who go through and value the properties . Right. It looks like hes overvalued the golf properties. In new york, westchester he values that club at 50 million. In a tax dispute, his lawyers valued it at 1. 35 million. That sounds like when you value your house, when you tell people how much its worth and when youre trying to decide what to pay. Its 1. 5 billion or 10 billion. I dont know, 1. 5 billion, ill take. I would, too. But i think it matters to americans. At least the other candidate she is dishonest. Her email scandal is a big deal. Yet, you make it seem that i dont care about hillarys scandals and i do. I wish politico will start looking at the foundation stuff. Josh has written a lot about the foundation. Shes got major honesty problems, too, joe. What sounds better, politico or the puffington post . Which if youre going g ting t merge youre on the marriage of these two. Well, youre soul mates why dont you put the two together. You know, with people, you just, pool your resources. There are plenty of people at politico that i like a lot. You have a choice of politico or puffington post. I like puffington. Thats like puff the magic dragon. You started it by tweeting i enjoy it every time. I do. Thank you. The pleasure, always. Puffington post. I think you can sell that coming up, the new theme park in china is looking to take on disney, but some disney characters were spotted at the parks opening weekend. And disney says it will protect its intellectual property. As we head to break, s p 500 winners and losers. It takes two baby it takes two baby me and you today, were seeing new technologies make healthcare more personal with patientcentric, digital innovations; from selfmonitoring devices that can interpret personal data and enable targeted care, to Cloud Platforms that invite providers to collaborate with the patients they serve. Thats why over 90 of the top 25 Global Pharmaceutical Companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way Clinical Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement with innovative platforms and solutions. Our populations growing healthcare needs present growing opportunities for our clients to advance the future of medicine with digital, and improve the quality of lives. Its more than a nits reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. Welcome back. Time now for executive edge. A new theme park in china is taking on disney. And Business Owners are talking trash. And some expanding at wanda city over the weekend. Sounds like wally world, wanda city. Well, hopefully, you will, at least thats what chinas richest man hopes. Chinas richest man got himself in a bit of a dispute with disney this is just two weeks before soaping shy hang disneyland. The chairman of the wanda group opened his own theme park. This is a 3 million mega complex called wanda city. He said he hopes its going to promote Chinese Culture in the face of disney. Translator Chinese Culture led in the world for 2,000 years but for the last 300 years because of lagging development and the invasion of foreign cultures we have more or less lacked confidence in our own culture and have fawned over foreign culture. Reporter and just this month, wandas chairman was very critical of disney on state tv saying that disneys ambitions here would crumble in the face of local competition. And he also said that the frenzy over mickey mouse would soon pass. So, it was a its of a surprise when many visitors who went to wandas tourist attraction spotted mickey mouse shirts, snow white, captain america, as well as star wars storm troopers. Wanda said those characters are not part of a park but instead, part of a promotional event at one of the stores at the mall that has a license tour disney stuff. But disney did not take this very lightly in fact theyre very unhappy. They issue add state saying we have a Good Relationship with wanda, particularly in the film business, you including in the United States. And we are perplexed that mr. Wang would choose to have a public battles with. Disney is, as i said, two weeks away from its open of shanghai disneyland. This is the biggest park in the world. The company does actually have the backing of the government for its park. But just like so many other Foreign Companies it does face intellectual property issues and what Foreign Companies have been describing as an increasingly antiforeign atmosphere. Guys. Is there anything similar to mickey mouse for wanda. I dont know of any of the i mean, its going to be tough. Disneys got unbelievable reporter there are a lot of pagodas there are a lot of pagodas and dragons. But there are other characters that look similar to pokemon or to other characters that people have recognized in the past. So, yeah, they do might face intellectual Property Rights issues. Yeah, its just Disney Disney hasnt been slow either with just mickey and minnie and donald. Cant keep track of them all. Snow white and dumbo. Star wars. I dont want to inflict cultural things on to term. But a lost these things, i dont know, id like to share them. Some of them are in star wars. Some of it pretty good stuff. Its not all just a battle. And theres enough room for both. Lighten up a little. Yeah. All right, eunice. See, if wanda tries to open over here, forget about it. Im not going there if they try to inflict that they will. They do have this ambition. Wandas chairman said that he not only is going to open 15 theme parks in china, but theyless are hoping to open three or five overseas. And theyre not the only one, the major film company highlighting hollywood, theyve also made comments regarding conditionny. I think whats interesting, what both of them have said the selling point for their own parks is that they have a lot of them and the ticket price is cheap. About 30. Whereas for disney parks theyre priced at more than double that. But at the same time, disneys Business Strategy has always been to create fewer parks like in the United States, where you only have florida and california. And here you have quality of experience. Thats what disney says. With sharing cultures of both. It should be a twoway street. Eunice, thank you very much. Its becoming a Universal City parks better than disney for the total experience. Harry potter, the newest installation in california. Oreo cookie maker mondelez is intending to roll out new videos. It comes from the twist and dunk mobile app. The company is trying to move away from traditional and focus on more content. Mondelez launched in november 2012 and has hadded 7 billion downloads since then. Its not a loss, theyre actually making money on this. Coming up a disappointing Holiday Weekend for disney. The alice in wonderland failed to bring it. Is there actually a sequel . I didnt see it. Didnt they do a whole book in alice in wonderland . Anyway, back, were going to talk about hollywood winners and losers as we head to break. Im going to look that up. Lets look at whats happening on the european markets. You know youre going to fall tell them all the call just came in. Shes about to arrive. And with her, a flood of potential patients. A deluge of digital records. Xrays, mris. All on account. Of penelope. But with the help of at t, and a network that scales up and down ondemand, this hospital can be ready. Giving them the agility to be flexible reliable. Because no one knows like at t. It takesbut stealing itd work to eaonly took a few days. Female announcer protect your money. Find out if youre dealing with a registered investment professional at investor. Gov. Before you invest, investor. Gov. No, youre not yogonna watch it tch it we cant let you download on the goooooo youll just have to miss it yeah, youll just have to miss it we cant let you download. Uh, no thanks. I have x1 from xfinity so. Dont fall for directv. Xfinity lets you download your shows from anywhere. I used to like that song. Welcome back, everybody. Summer movie season kicking off over the weekend. Xmen apocalypse led the pack. Of xmen days of future past which opened on memorial day two years ago. Disneys alice through the Looking Glass brought in 32 million. That is well below the 62 million the original reboot brought in in 2010. Joining us now is barton crockett. Hes fbrs Capital Market Senior Analyst its. This was a disappointing weekend but is it something that the street wasnt expecting . No i think that this weekend was lighter than many people had thought for this particular period. But i think the overall trend for box office this quarter was that expectations were low. And that box office will come in line with that. I was thinking that it would do better and that the not going to happen. For disney, we thought they would do better than eps estimates for the year. With this movie, theyre likely to see a writedown in consensus for the year. What happened . Well, i think this movie didnt get the reviews. I think the kalice in wonderland movie in 2010 had a lot of hype in 3d which is not there. And the johnny depp didnt help. And then competition with xmen. I dont think there was as much competition with xmen in 2010. It seems like we have this conversation about movies every summer. About the depth of movies not being that good. How would you grade the overall of the Film Entertainment industry right now . I think theres been skepticism over the past years. Its pushed back. Had over 12 growth in the First Quarter. You had a very healthy Fourth Quarter for box office. Here in the second quarter, weve got tough comparisons to a year ago that had jurassic, inside out, fast and furious, one of those th iterations. I think well be down with the star wars coming up. Going through the stocks which ones do you like out of the group . Well, i think in the Movie Theater group, amc is very interesting with a play on their acquisition will be helpful for that the equity. I think within the studio stocks, the tv network conglomerates, viacom is interesting but its really not about their movies. Its about everythings happening there. Disney is investable, i think you got to pick your places. I think the movie performance has been rate. Just less from this weekend. Lets go back to viacom, you say its interesting because its whats happening there. Do you think this san opportunity to jump into the stock . Ive been recommending viacom more aggressively going into this year, as we started to get a better sense of the instability at the top i think that creates more opportunity. With viacom, you have a stock trading thats pe, thats a high singledigit pe. And this is a company in a control situation, you would think of this as a takeout target, maybe a breakup where you can get better management ofthese properties. With the discussion at the top, you have to wonder if that control persists. And it could be in play to realize some of the parts. What if its not a situation where the company is in play but one where its being combined with cbs . I think that comes into play but i also dont think that cbs wants to buy viacom. Its pretty clear. If it did happen, i would expect that would not be a bad situation for viacom equity in something where cbs might look to exit a lot of the properties there. Perhaps tax efficiently. I think theres a lot of people who would like to have some of the viacom properties. Im not sure that any one entity wants to have all of them. And id put cbs in that count. Barton, thank you for joining us today. In 1865, the first one was alices adventures in wonderland, kept the adventures part. Louis carroll wasnt his name. Its a suda pseudonym. And then the sequel, i dont know how the sequel did in 1871 versus versus the original . Yeah. But they didnt need to like they didnt need to like come up with dumb dumber 2. They just actually did coming up see, thats why, because it would have been questions like that. Did you ever read . I read that, alice in wonderland. I started reading it to the girls. I never finished reading it to the girl. The dollar trading near its highest level in more than a month. Boris frostburg joins us to talk about the expectations with the next Interest Rate hike which starts tomorrow, in fact. Thats the way you do it money for nothing your chicks for free tmobile is going big for Small Business. Youll never get charged data overages, ever. Get your own 24 7 dedicated business account team. And with double the lte coverage in the last year you can get more done in more places. Right now get 2 lines with 10 gigs each for just a 100 bucks. And for a limited time get a hot spot free, yeah free. Switch your business to tmobile work today. Images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. They are. Do i look smarter . Now businesses can get more out of their data. Yeah, a little. Youre making money now, are you investing . Well, ive been doing some research. Let me introduce you to our broker. How much does he charge . I dont know. Okay. Uh, do you get your fees back if youre not happy . dad laughs wow, youre laughing. Thats not the way the world works. Well, the worlds changing. Are you asking enough questions about the way your wealth is managed . Wealth management, at charles schwab. Europ the dollar getting a boost. Climbing towards a twomonth high and growing expectations for a rate hike. Boris schlossberg. Managing director and a cnbc contribut contributor. Yellen closed, in your mind have to believe it will be june or july. She did not say no. Usually she is the biggest dove in the room and always pours cold water over any expectations. She didnt do that this time. I think its because they have to do something to gain credibility back. Theyve been backing off the whole idea of hiking rates for so long that, if they do it again, it will destroy their credibility going forward. Is it already in the Foreign Exchange markets . Not yet. I am surprised at how little fed funds are pricing in the project of june. The markets still remain skeptical about this. After they do it, does the euro go to 108 or 114. I think it has a chance of going down to 110, 110, 108. Its not in it yet. No. I think yen could bust out above 112. There is room to scope. The thing about the rate hike, why the market is not uberbullish is because i think it will be one and done and theyll wait if they do this. Theyll do now and wait until december to figure out what to do next. Theyre trying to do two things. Not screw up the economy by tightening up too fast too soon and at the same time establish escape velocity. They need to get into the normalization and not look like theyve been on the entire rate hike for a year now. The whole 75 basis points psychologically is the escape philosophy. Japan raised 25 basis points and had to come right back. If you get beyond the 50 point bear year you might be in the mode. Where does japan go from here in terms of negative rates and Everything Else . Will this be will this weaken the yen enough to where they hopefully they are starting to feel a lot better. Whats interesting now is before before the euro strengthened, the yen strengthened on the point that the fed was willing to do nothing. Now that the fed is trying to communicate with pretty Uncertain Terms that theyre going to hike rates it should help the other Central Banks with their policies. The boj needs the yen to be weaker. Ideally above 115. They backed off already the idea of a sales tax seeing how tight the conditions are in country right now. What does this do to things denominated in dollars . What does it do for the oil or gold market . Gold, already took a big tumble. Straight out of the playbook. I am still bullish gold long term because there is a lot of evidence saying, even if the dollar strengthens, gold could strengthen as well. This is the key thing. Depending on how equities go. I think if the dollar strengthens considerably we could have a wobble in the equity market in the summertime which could be positive for gold. So gold could loved it at 2,000. I am thinking i might buy you can still buy a maple leaf, right . Right. American eagles only 91 gold. You want to buy physical gold . Border guard . Im going to give the guy my efts. Which border are you going to . There is no border guard on south america. That was your reasoning behind getting a gun. Nobody cares about gold. With a gun, if other people have gold, you can take their gold. If other people have a gun too, you are in a standoff and then youre using gold as a barter just get a goldplated gun. A goldplated gun. Thats an idea. Thank you. People love gold at 1900. They hate it at 1200. Yeah. I am pretty bullish everybody should own a little bit. Its cool. Its heavy. Just there is a reason. I think ill buy two and then i can rub them together. Buy some jewelry. That will work out better for you. You get the dual pleasure. You buy it 99 pure, youre just buying gold. And depending on what happens in the gold market you may catch the bounce. As far as the dollar goes, i think dollar moderately positive for the next month or so, assuming the fed delivers what they promised. This will be the big thing. If they back off now credibility issue. Big credibility issue. If the fed backs off on the assumption that maybe we need a little bit more easing, i think it will be horrible for the stock market. Just like when the boj eased and everybody thought it would be great and it turned out to be terrible. Its time for Central Banks to establish credibility, so they need to hike rates. When we come back. Brick and mortar feeling the pressure from amazon. Well tell you which stocks are safe from the ecommerce giants reach. The president ial race in focus later. Well be joined by former texas congressman ron paul. Its how you stay connected to each other and to your customers. With centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. What aremaking a cake ht now . Ayla reminds me of like a master chef and emiana reminds me of like a monster chef. Uh oh. I dont see cake, i just see mess. Its like awful. It feels like i am not actually cleaning it up whats that make mommy do . doorbell whats that . Swiffer wetjet. So much stuff coming up. This is amazing woah. Wow. Now i feel more like making a mess is part of growing up. Stop cleaning. Start swiffering. Forget about selling may. Will the gains hold or is a summer swoon ahead . Countdown to california. Hillary clinton packing her bags and heading to the golden state hoping to hold off a Bernie Sanders surge ahead of the primary. Dont mess with adele. Why the pop star called out a fan fo filming her concert. The details straight ahead as the second hour of squawk box begins right now. I cant help feeling we could have had it all live from the beating heart of business, new york city, this is squawk box. You had my heart and soul welcome back. Tom it wasnt tom vibrating. It was his phone. Not a good start. By the way, it was toms phone. I could feel it all the way over here. It was we are. Welcome back to squawk box. First in business worldwide. Futures slightly higher for most of the morning. Still less than 20 minutes. Up 18 on the dow. Up 1. 25 on the s p. Oil prices under 50. 49. 47. In fact thats weird. Ice brent and w. T. I. Are the same. Exactly the same. 49. 47. There is usually a premium to brent. St. Louis fed president James Bullard says the Financial Markets are well prepared for a summer Interest Rate hike. At a singapore News Conference he said the u. S. Economy seems to be recovering, though he did not specify which summer meeting might be the most likely for a right increase. Market betting on july at this point but plenty assuming that june is a very live meeting too. A multibilliondollar utility merger announced. Great plains energy, the parent of kansas city power and light, is buyer westar energy. It will pay 8. 6 billion in cash and stock. That is worth about 60 a year. Oracle and hewlettpackard enterprise are heading to court. The hardware is sold by the hp spinoff. Last trading day of may. Dow up. 6 . S p higher by 1. 6 . The nasdaq has nuchjumped more 3 . Joining us is tom lee and oksana. Youre going to do fixed income for us. Start with tom just to see what if you want equity exposure buy the dips if there are any in june. Thats the takeaway from what you think, even with all the fed talk and possible action . Yes. I think part of it is the fed tightened in december. This would be their second hike. I think we have to just keep in mind the market has priced in a lot more tightening already. Maybe not in the fed futures but in financial conditions. We have inflation picking up, commodities bottoming. The dollar is not gaining any more. High yield is probably the most important thing to focus on. Its telling us the stock market should have doubledigit gains this year. So high yield . Whats high yield telling us . What did he mean by that. Im going on the record saying high yield may actually be a better investment at this point than equities because if we are looking at a tepid sort of muddlethrough recovery, historically high yield has tended to do well during periods like this. What equities have going for them, from a dividend standpoint theyre yielding 3 above what youre getting on high quality, the Higher Quality bond space. Another important point for the realm of fixed income in general is that everything thats said about fixed income these days is hinging on speculating about the fed, whether the fed will go in june or whether theyll go in july, et cetera. This entire morning as i was sitting in the green room, every speaker you have had here has talked about it. The reality is that, irrespective of whether the fed goes in june or july or doesnt go in june or july, the sad truth about fixed income today for investors is that its never been less equipped to deliver the three reasons they hold it. Thats true irrespective of your opinion of whether rates are moving sideways or going higher or lower. The runway is limited. I think there needs to be a different approach for diversification for portfolios today. You say you liked high yield will outperform stocks but you dont like high yield. We do like high yield. Absolutely. Youre saying you get paid for the risk. The one area in fixed income i think where you are getting paid for the risk is high yield. To give you an idea certainly the energy and commodities sector will continue to have issues and defaults will continue to escalate. The actual default has been not even. 5 . Fundamentally that space is okay. Its certainly not looking like something thats going to experience several times the defaults that we are seeing today. Even if you were to factor it in, youre getting paid to take the risk. If you are in an active management framework that can focus on issues that will not be why is it so different today . Why has the entire structure changed where you think you need to find other ways to diversify . The issue is that, when you buy a bond, you are taking on a number of risks. So if you look at a highquality bond, Investment Grade bond, you are taking an Interest Rate risk. Liquidity risk. Only one acts as a diverse fier during periods of stress for equities thats Interest Rate risk. Interest rate risk is exceptionally limited in the ability to deliver the diversification. If you look at global indices theyre yielding barely 1 , probably around. 7 . Thats with Central Banks globally nearly fully deployed. What is it that you are hoping to get from that space . We have been spending a lot of time talking to investors are rethinking your approach to diversificati diversification. Yeartodate youve seen over 40 billion flowing into high walt fixed income. Over half towards passive strategies. Tracking indices that are over 80 government bonds. Considering that the market is not pricing in a fed move with barely 30 , 35 for june, maybe slightly higher for july. The reality is the market has not caught up with that reality. I think there could be significant downward pressure there. I made the point, tom, the u. S. Dollar three mistakes people can make. The dollar, i would think, if they raise it, its already seen its already back its gotten stronger based on the concept that they are going to raise, right . Do you see it going to 108, again, the euro, for example . I think the dollar has been flat for the last 15 months. Even with another hike, its already in the dollar. Yeah. I mean its you know, if the dollar is flat, earnings are going to actually have a benefit from weaker dollar. I think consensus this year has gotten a lot of things wrong. A lot of people said sell in may. Were up. 5 . Its been a year of underperformance for the stock market. Nobody feels flush right now from staying in equities. You could have pulled a rum am still skin. A lot of things move but the stock market is exactly flat. Thats not a bad thing, right, because, you know, i think there is a case being made this morning that highyield is a good market. Youre making the same case. Doubledigit returns, right. Thats happened 15 times since 1985. 14 of the 15 times stock market returns when highyield was double digit at least 10 . Average is 22 . You can buy highyield stocks right now . I have worked with the high yield market for 20 years as an analyst. If high yield will do as well as it is the stock market will do even better. See, i would buy the stock market then. Yeah, because you get dividends for diversification i need the high yield too. You dont worry about defaults. Its more liquid. Stock market could be up even more. Youre getting two different markets. If you look at the high yield space, essentially youre getting a midcap, growth type exposure. If you were to translate that into equity terms. You can plan around that and diverse diversify accordingly. If you were playing that space, you can sort of expose yourself to other parts of the equity market to reap the benefits. Tom, just to clarify. You like u. S. Stocks but only on dips . Or you would tell people to buy anyway . I just think were almost to new highs. And yet every client we see thinks the world is ending, theyre cash. They all said sell in may. You know, today, you know almost 40 i think its actually probably close to 60 of the s p now has a cash return yield. So thats dividend plus buyback. Stocks are really cheap. Thank you both. When we come back, keeping up with amazon. Traditional retailers are spending billions to compete with the ecommerce giant. But is it too little, too late . Well talk to an analyst next. Get ready for the rio Olympic Games by switching to xfinity x1. Show me gymnastics. X1 lets you search by sport, watch nbcs highlights and catch every live event on your tv with nbc sports live extra. Im getting ready. Are you . X1 will change the way you experience nbcuniversals coverage of the rio Olympic Games. Call or go online today to switch to x1. Amazons retail domination sorry. Go. I didnt know we were on air. Amazons retail domination forcing other companies to play a game of catchup. Amazon is up more than 60 over the last year. Traditional resalers like macys and target in the red. Courtney reagan joins us with a few ways to amazonproof your portfolio. Good morning. Good morning to you, joe. Happy tuesday. Were on air. We made it. Were here. Amazon is a formidable force. Amazon may not be the only way to play the retail space. I have some analyst picks to help you amazonproof your portfolio, at least a little bit. Two paths retailers can take to create a competitive mote around amazon. Differentiated Shopping Experience and selling products with emotional connections. Both harder for amazon to offer online. Tjx companies and ross stores for the treasure hunt. Selling beauty and ulta for consumers needing the inperson testing on product first. Restoration hardware for the curated store experience. And lbrands for the emotional connections. Bras are definitely hard to try on online. Broader sectors. Key bank points to the handbag luxury space as those with lower risk and higher opportunity when it comes to competing with amazon. Lululemon and under armour are two brands that are important in the athletic space and amazon would have a hard time coming up with an alternative since price is less than a decision factor for both of those brands. They think tiffany is more insulated since fine jewelry is something most prefer to buy in person. Blue nile, online only, hasnt done well. Tiffanys has not done well. If youre looking for against amazon, perhaps a play to consider. Stay here, courtney. Robert durvell, thank you for coming in today. If you were to add a name to the list, who would it be . Well throw walmart into the list. Against amazon . Not that its amazonproof. But we think it has the Financial Flexibility to effectively compete longer term. I think that theyve taken a longerterm perspective. The near term is an improved situation with where the low end consumer is. Lower gas prices and increased wages. Theyve put together a pretty good threeyear plan that theyre executing nicely. Is that because they have the resources to go head to head even in the ecommerce world . We dont expect walmart to overtake amazon. We think theyre playing for the number two seat at the table. Thats funny to hear. Walmart playing for the number two seat. When you look at their core retail bricks and mortar business, theyre executing that business nicely. Seven consecutive positive samestore sales, six consecutive increases in traffic. Inventory is down 6 in the u. S. The basic retailing 101 theyre doing pretty nicely. Do they need to be online even more than they are or i am asking because allen joined us recently and his thought was the traditional retailers chasing ecommerce, maybe its not the best bet. All the things you pointed to as to why walmart is doing well is in the stores. The consumer is going online at a rapid clip. I believe most successful retailers need to have a competent bricks and mortar plus online strategy. One of the things walmart is doing, one of their competitive advantages is the grocery business. Theyve narrowed their focus a bit. Grocery online, instore pickup with the grocery. Grocery home delivery. And theyre executing that pretty nicely right now as well. Theyre trying to balance it all and i think doing a fine job with. They have the longerterm time hi horizon to invest in online, in associates, in the stores. And theyre doing it well. I think the ecommerce growth for walmart was pretty low in the last quarter. 7 . It has decelerated. Right. I think that really signifies the need to invest in it. If you look at where the world is going walmart is investing a billion plus. Theyre losing a billion dollars in ecommerce as well. They understand the urgency of being there. I think the deceleration in the numbers makes us understand that the money theyre putting towards it is likely money well spent. Its either invest heavily and try to be relevant or do nothing and become a lot less relevant. I think the investments theyre making should pay off over time. When you look at amazons business, the size of amazon, theyre reaccelerating their u. S. Business. When you think about the lead that they have and watching the numbers play out, you know, in a variety of categories. I think the environment is moving that way and walmart is trying to get to that point in time. Do you agree that amazon is the retailkiller and is hurting all the other stores dramatically . Its definitely a major factor. Look at egm as a growth vehicle. Electronics general merchandise, the north american segment was up 32 in the First Quarter. Reaccelerated from the Fourth Quarter. Those numbers versus a 1 comp in walmart and low single digit comp at many other retailers. There are a few strong retailers who can effectively compete but its definitely amazon is a force to be reckoned with. Its not going away anytime soon. Theyve invested heavily for 20 years to get to where they are today. Robert and courtney, thank you. Coming up, adele has one request for concertgoers, put down the video camera. Pop stars strong words for one fan. I would be embarrassed if i was the person. Well tell you what she said. Here is quick check on the futures as we head to break. In global news. South korean Officials Say a north Korean Missile launch likely failed today. This is the latest in a string of highprofile failures. It somewhat tempers recent worries that pyongyang was pushing quickly towards its goal of a nucleartip missile that could reach americas mainland. India telling apple it can open stores in the country if it creates jobs. The government says that its discussing apple Foreign Direct Investment application that seeks a waiver from a local sourcing rule. India wants the tech giant to sell at least 30 locally sourced goods if it wishes to open shops in the country. Apple ceo tim cook met the indian Prime Minister a week ago. Cooks trip to india expected to set the stage for the companys expansion in india. A new survey this morning focusing on brexit fears. A third of top executives say theyve spent up to one Million Pounds preparing for the consequence of leaving the eu. They intend to relocate parts of their operation. You can dance, sing and propose to your significant other, but dont film adeles concerts. The pop star calling out an audience member for recording the performance instead of watching it live. At the concert in italy adele asked her to take down the tripod because this is a real show. Here here. Either watch it on your video player or watch it in real life. I go to things when my kids have chorus concerts and people tape the whole thing. Theyre playing with ive tried to tape it and i realize im not watching them. I am watching it on the video camera instead of watching them. I have to hold it like this to actually what theyre doing. Have you ever watched one after . I have taped things with my iphone and ive never gone back and watched. I have shown the grandparents. I have never actually gone back to watch it for myself. The video camera used to be something 25, 30 years ago, wow. Really cool. Now there is no one that cant it drives me nuts at the school concerts, the people who bring their ipads and hold the whole thing up. Be discreet. Youre blocking everyone else from seeing. They dont care. But everything is on video now. Its scary. You have to remember that, too, or you could be the espn reporter reaming the poor parking lot you know . Yes. I think about that now. I am a better person. Because youre being surveilled all the time. Not on purpose. Yeah. Youre supposed to have a reckoning and a right. Better person. Squawk sports news, the nbas western conference finals came down to game seven last night. Didnt really surprise me, even 31. You win 73, 74 games. Youre going all the way. The Golden State Warriors fighting back from being down 31 in a series against the Oklahoma City thunder. They trailed by six points at halftime and put the hammer down. Curry drilled a deep three late in the Fourth Quarter, putting the game out of reach for the thunder. The warriors win 9688 to punch their ticket to the finals where, for the second Straight Year, theyll face lebron and the cleveland cavaliers. Is it thursday when it starts . The reds scored 11 runs yesterday. Joey votto, two hits, three noi rbis. In hockey last night. Game one of the stanley cup finals. The Pittsburgh Penguins led by captain Sidney Crosby facing off against the San Jose Sharks in the firstever trip to the finals. The penguins took a 32 lead in the late third period and held on to win the game. Game two is tomorrow night. Wednesday night. When we come back, we have a lot to talk about. Donald trumps tax controversy. The secret Service Getting handson with Bernie Sanders. And Hillary Clinton switching to plan b to try to win california. Well talk about the race for the white house next. For decades, investors have used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. You wouldnt take medicine without checking the side effects. Hey honey. Huh. The good news is my hypertension is gone. So why would you invest without checking brokercheck . Check your broker with brokercheck. One more time i go, higher powers taking a hold on me one more time i go. Higher powers taking hold among the stories front and center. A busy day tofor economics numbers. The government will be issuing april personal income and spending numbers in about an hour. Later, the caseshiller report and consumer confidence. Apple reportedly planning to lengthen the time between full iphone model changes to three years rather than two years. According to japans nikkei newspaper. That would be in response to a slowing market and difficulty trying to make significant advancements. Martin sen has committed swoid suicide. Three years after the companys chief Financial Officer took his own life. Zurich insurance . Yeex. In political news. The u. S. Chamber of commerce wants to keep the status quo. The nations big ez business lobby announces today to raise money for tight senate races to keep the gop from losing control of the chamber in november. The gop is defending like 24 seats, the dems, only ten seats. Its 54 right now. Mmhmm. And that would mean how many that would mean 46 democrats. Except one is not a democrat. Is he a democrat specifically. He is now. You feeling the bern . He is running as democrat nominee. In the senate he was an independent. He was. Now he claims he is a democrat. He has won 28 states and counting. You know that, i know. One week away from the last major contest in the democratic race. The california primary. Joining us former u. S. Congressman harold ford and president and founder of the polling company, kelley ann convey. Hillary clinton looks like she is changing her schedule. Shell be campaigning in california. Harold, its looking like a tighter race . Thats a big part of it. Maintaining the momentum that she has. Shell get enough delegates after california to secure the nomination. Score board is still relevant when it comes to this. Bernie sanders has raised important issues. Hes raised some issues that the spotlight should stay on not only throughout the race but throughout the next presidency which i believe will be Hillary Clinton. The energy he has generated, its hard to imagine it going anywhere but to Hillary Clinton. Some of them could go to trump and some could stay home. The bulk of his supporters and even Bernie Sanders who has publicly stated that he would support the democratic nominee, not donald trump. When you ask the questions about Supreme Court nominees, Climate Change, income inequality. I believe mrs. Clinton has a more compelling message. Will some Bernie Sanders supporters demanding more . Of course. That happens in every president ial race when you have urging of a thirdparty candidacy. If that materializes, i cant imagine how that doesnt help Hillary Clinton in the fall. I like where Hillary Clinton is. If Bernie Sanders choosing to stay running, he has every right to. Kelly anne, it seemed earlier in the race that the republicans had a much tougher time, now it seems like the democrats are facing a little bit of hurdles as donald trump has kind of taken over as the presumptive he is going to be the republican nominee. Thats the point. Donald trump has something today that Hillary Clinton still does not have. He is the president ial nominee of his party. I believe, had they not cleared the field for Hillary Clinton, she would already be the nominee. She has a difficult time in a one on one race, whether its barack obama in 08. Bernie sanders right now. Donald trump in the polls. She seems to have a difficult time waging the twofront war against both sanders and trump. Theyre even struggling with changing the message. This woman ought to get a refund an her focus groups. Its practically june, and she is struggling to find a good message. I disagree with the fine congressman whom i respect enormously. Bernie sanders promised a quote, messy convention. His folks will not go gently into the night. They believe hes not just raised important issues, they believe the issues ought to be the dominant, front and center part of the conversation going into the convention. She said, im not changing my positions. Im sticking with my positions. It puts her in a quandary if she is pushed farther left and alienates more moderate voters. Income inequality, Climate Change, two of the most prominent issues and concerns that Bernie Sanders has expressed and his voters and supporters have evidenced. Mrs. Clinton is where he is on the issues. Climate change comes in like 2 . It may be the case. The first conversation is about Bernie Sanders supporters. If she consolidates the supporters, the numbers you are seeing now kelly anne has a better understanding that ill ever have but if she is able to consolidate the support, i think her numbers go up against trump. When it comes to moderates and independent. Mitt romney i believe the independent vote in 2012 still lost the race. I am not saying shell lose the vote in 2016 is that an argument for hillary adopting more of sanders positions and not worrying about the moderates . Some would argue the opposite. I am saying the math dictates that if mrs. Clinton holds the coalition that barack obama built in 2012 she can win in 2016. She has not locked it up. In a few days i think that will be the case. When the score board indicates she has enough delegates to be nominee i hope mr. Sanders and his supporters will respect that and focus on unification. You are always a great party man. I like that. But it was a bad week last week with the Inspector General report. I know that, you know, the clinton camp is still with theres nothing to see here, theres nothing to see here. I dont know how many shoes drop before its an indictment would probably be at that point that spin wont work. Let me bring up something important that was in the journal today. I think this is what a lot of americans are looking at now. Weve seen 20 years of the clintons sort of no rules it may not be against the law, but no rule seems too flimsy to sort of bend or at least push out to the very end of the ethical the ethical spectrum. Maybe we can bring this up mcgurn has a piece of it today that i asked for. You got that . Here it is. In clinton world, anything that isnt found criminal becomes even putting aside the question of criminality. We know the following. While in a position of trust she deliberately chose to put security at risk, maybe she didnt know it was classified or not, but setting up her home server. In doing so, she also concealed what should have been public records. Youll never see most of the emails that were personal. In the year since she has been found out every Public Statement she made the coverup has been worse than the crime. She refused to cooperate. Finally, the last same thing. The last conclusion, which is damning to some extent, harold, i think, just that you never is that all . Maybe thats the end of it. Isnt there sort of a perception that with the clinton foundation, right on the edge all the time. I think there is an equally broad perception that this family has been under a kind of scrutiny unlike any political family. Its the vast rightwing conspiracy . I am not saying that. I didnt call it that it is Bernie Sanders. I dont vote in the democratic primaries. We havent laid a glove on this woman yet. Donald trump is right saying i havent even started. Hillary clinton does best when she looks like a victim of the right wing. She cant claim that in this instance. The last point he made she failed to cooperate. She wont debate bernie. Its the sort of argument that she is above the law. She says shell cooperate with the fbi. As long as this is hanging over her head and part of a legitimate news story, news cycle, she cant grab the news cycles back for herself and its why americans find her to be dishonest and untrustworthy. Both of these candidates have such high unlikables. Theyre for different reasons. I believe, becky, the more that the left tries to paint donald trump as a misogynist, sexist, racist, they keep doing that, by the time november rolls around nothing will strike people as new information. I asked for this last paragraph too. Inner short, this is a woman who never tells the truth when a lie will serve her purpose equally well. Hes entitled to that opinion. This is a race between two people. I have heard kelly annes comment about mrs. Clinton. I think this race will be not litigated on mr. Trumps personal behavior. It will be litigated on his public record. Some will argue he is a belowaverage real estate developer. He argues that mrs. Clinton is crooked and i think the record will reflect that. As we look at Trump University and the things he tried to do, is this how he will act as president. Those were aired in the primaries. All the things being raised about mrs. Clinton, many have been raised during her 20year career. Her position on libya. She has problems i think on the issues. In large part because a noncardcarrying member of the vast rightwing, mr. Bernie sanders has forced her hand on. You mentioned, joe, Climate Change is way down in the polls in terms of priority. Whats up is terrorism. When you see mrs. Clinton putting her own private email the need to be sneaky above national security, it bothers americans. I hope, harold, that the contest ends up being about issues and that donald trump will force a conversation on health care, terrorism and the economy. If he engages in the continued name calling, it wont happen. She got 21. 5 million to give 92 speeches. She gives speeches for free now and nobody seems to want to listen to them. Donald trump has the momentum. As anybody in politics knows, harold knows. You cannot substitute for a quality candidate. You need a candidate who is compelling, inspirational and people want to follow. So far mrs. Clinton does not measure up. Those golf courses are not belowaverage. I know youve probably played them. I played one of them, yes, sir. Those are not belowaverage real estate. Look, i think as we look at the business its not really a belowaverage he has been successful in many ways. But for him to argue as he has been that he has the best management agents to lead this country, i think it will be put to the test. Wouldnt the worst private sector guy in the world be better than what weve had . As he ran in the primary, the number of people who have openly opposed him. Many of the networks in this shows best friends and best advisors and best spokespeople were not for him from the beginning for a variety of reasons and theyll all have to answer the questions now. They all may say we dont like Hillary Clinton and we believe he would be best. That doesnt exclude some of the questions raised about him early on. Too take anything what hes accomplished i have never seen a person dominate and shape the narrative like he has in the moment. Democrat or republican. He deserves great credit. What i hope well shift to is a conversation about the issues. When i asked cruz isnt going to get it. Shell back trump. All of the guys may have gone initially with christie for a reason. They went to two or three people before they jumped to trump. 11. 5 million voters now he just passed he has the highest, most historic number of voters. I feel as a republican, really as a conservative, you cant ignore the voters will. I would agree. How can you he lost. How can you believe 10 millions voters who have gone for sanders on the field. Bill clinton can never run in this party. I dont know if harold ford could. This i dont recognize the democratic party. Where are the blue dog democrats. I would say the same about both parties. They all think its rightwing. I think in some ways this is a positive when both parties get shaken like this. I agree. Shed your skin. Bernie sanders has done that on the democratic side. This is a new you would be a good veep pick. He would be a good veep pick. It will be very interesting to watch over the next the next several weeks how tokyostyle ramen noodles. Freshly made in the japanese tradition, each batch is small. Special. Unique. Every bowl blurring the line between food. And art. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients. Stepbysteprecipes. Delivered to your door. Get your first two meals free blueapron. Com cook. Welcome back, everyone. Viacoms board of directors gearing up or a legal battle with Sumner Redstone as the fight for the media empire heats up. Julia boorstin joins us with the latest. Good morning. Good morning to you. Viacoms Board Members are preparing to fight to hold on to the seats and control of the giant. The independent director issuing a letter to shareholders and employees saying theyll fight any attempt to remove them from the companys 11member board saying well contest the removal in it comes because we see it as a responsibility to the noncontrol shareholders at viacom who own 90 of the equity of the company. And to the legacy of a man we greatly admire and consider a dear friend. The letter saying the assertion that redstone was, quote, acting of his own free will and with the mental competency to do so is inexplicable. Viacom shares down 50 over the past two years. Reports that a change in management might be in the works did send shares higher on friday. Whats next . Solerno is trying to meet with redstone and dauman is going to court next week. When we come back, well have more of this mornings stocks to watch. Plus veteran Hedge Fund Investor steve cohen is fed up with the lack of talent in his industry. Now hes doing something about it. Well take you inside his Trading School when squawk box comes right back. Ilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. The first stock index was created over 100 years ago as a benchmark for average. Yet many people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. Welcome back to squawk box, everyone. Steve cohen has not been shy expressing his thoughts about the lack of talent in the hedge fund industry. Now hes trying to do something about the problem. Kate kelly joins us with a look into his newly established Trading School. At a recent conference in california he minced no words. Frankly, im blown away by the lack of talent. Its not easy to find great people. So, hes taking matters into his own hands. In two months his firm will graduate its first class of nine students from its Trading School. All have landed jobs workingfte. They recently hosted an allday seminar for college sophomores. They say they received 400 applicants for that day alone. Here is what one student had to say. The most beneficial thing i have learned so far today is when chris said, the only puzzle that hasnt been solved in the world yet is the Capital Markets. I think thats so true, i just want to be a part of kind of solving that puzzle. Selective as point 72 is, students in general and other jobseekers feel they cant be picky. The economy doesnt feel strong to them, despite the data and banking jobs are not what they once were. One candidate is looking for it as a third career after a math teacher didnt work out and a stint at Chemical Companies wasnt a right fit. Hedge funds are underperforming in a big way. And investors are pulling money out. The hope is that the new generation will turn it around for them or play a role. Do you think cohen looks at this and says there is a talent dearth because fewer people are coming into the industry post financial crash or there are so many more hedge funds and its hard to find qualified people because more are snapping them up . I think its the latter. When he said that before he was referring to the senior or midlevel manager. Of course, what he is doing is trying to bring in the new generation, the younger generation, and train them up, which is a little bit of a different problem but same relative idea. What i am hearing is, underperformance, consolidation in the industry, which is early stage but is probably on its way to happening, is kind of crimping the talent pool. Also, those who were good are well paid and incentivized and not looking to go anywhere. His firm had its legal troubles. Some people left over the years. That may have played a role. There are a number of factors. They look at the Capital Markets as the only puzzle that hasnt been solved. I agree that hasnt been solved but the cure for cancer and all kinds of other big puzzles are out there. One anecdotal observation i would make is a lot of new sort of millennials graduating out of college or i even spoke to Business School students. They are interested in silicon valley. They want to change the world. They want to do something disruptive and game changing. Capital markets i find it interesting. I know you guys do too, but it perhaps doesnt have the sense of mission as some of the other jobs might. Kate, thank you. The coo of airbus says a slowdown in bookings this year is in his words normal. It follows years of strong orders. The company has only secured 92 orders for the first four months of 2016. John lahey says as long as orders match deliveries airbus will be content. Also in the airline sector. Air france, klm, in talks to sell a stake in the catering unit to chinas aka group. The business is worth 529 million. Agreed in april to buy Swiss Airline Catering Company gate group. Several suitors expressing interest in c. I. T. Groups Aircraft Leasing unit. Firstround bids for the leasing arm, which owns a fleet of more than 350 planes, are due in june. Katy perrys 89 million twitter follows were in for a surprise last night. The pop stars twitter account was hacked. Her page was filled with profanity and slurs. Not like the usual ones, as well as a tweet to her rival, taylor swift. The tweets, though, if youre going to run and follow her youre probably already following her. 89 million. Anyway, the tweets have been deleted. My next story has been deleted just like the tweets. Ill let you talk about brexit. My next one i was going to repeat the adele story. One of mine was gone too, the box office. When we come back, we will talk about the brexit. The vote is quickly approaching. Well talk to former German Defense minister about what it might mean for the eu economy. Later, dont miss former texas congressman ron paul who joins us to talk about the race for the white house. Stay tuned. Youre watching boston red ssq cnbc, first in business worldwide. The dow headed for its strongest winning streak in two years. One last session in the month. Is it time to sell in may and go away, or will the summer be a sizzler for stocks . Decision 2016. Donald trump working to unify the gop in his run for the white house. Former congressman ron paul tells us what he needs to hear from the candidate before he throws his support behind the businessman. Go cold or go home. Starbucks betting big on iced coffee this summer. Well hear from the ceo. As the final hour of squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Welcome back to squawk box here on cnbc, first in business worldwide. Im joe kernen along with rebecca quick. Andrew is off today. Were less than 90 minutes away from the opening bell on wall street. All green across the board this morning. A little better than weve seen for the morning session. 3. 5 on the dow. 3 on the s p and 5 on the nasdaq. The european markets at least one turned positive now. Its been up and down this session. Not huge moves in any of the boards so far today. They started out a little bit firmer on some asianpositive action in equities. Now theyre all red again, actually. Barely. Among todays top stories, a flurry of economic statistics. 8 30 eastern time we get april personal spending numbers. At 9 00, the caseshiller report. As all of that happens well watch what the markets are doing. The dow is on track for the fourth consecutive positive month. That would be the best streak since the five straight winning months that it ended back in june of 2014. Six out of ten s p sectors are positive for may. Led by technology which is up by more than 5 . And we are watching oil prices as well this morning. Just below 50. 48. 58. Wti beating brent crude by a penny. There is an opec meeting to be held in vienna on thursday. Most are not expecting any coordinated action on production but will be watching the newly appointed saudi oil minister. Crude prices nearly doubled after hitting threeyear lows earlier this winter. Few stocks on the move. Details of the tentative deal between verizon and the unions have been released. The pact includes pay raises of more than 10 and 1400 new jobs. Volkswagen reporting an increase in firstquarter profit. Auto maker earned 3. 8 billion. Up slightly from a year earlier. Forecasts called for a 17 drop in the wake of the diesel emissions scandal. A multibillion dollar utility merger. Great plains energy, the parent of kansas city power and light, buying western energy. Westar energy. The Largest Electric utility in the state of kansas. It will pay 8. 6 billion in cash and stock. Its worth about 60 a share. New survey this morning focusing on brexit fears. A third of top executives say theyve spent a Million Pounds preparing for the consequences of leaving the eu. 7 of those polled say this they intend to relocate parts of the operation if britain votes to leave the union. This morning the ceo of Cocacola European Partners told cnn his company wont leave london regardless of what happens with the vote. We think the decision needs to be up to the choices made by uk voters. 95 of the products sold in any one of our given markets are produced in that same market. So we we frankly think the british voters should decide about brexit. Whatever the decision is, well certainly be able to deal with it. Brexit also a point of discussion at the g7 meetings in japan over the weekend. Joining us right now to talk more about it is carl guttenberg, the former germen defense minister. He is founder the spitsberg partners here in new york. The brexit polls indicate its more likely that britons will vote to stay in the union. The whole discussion has already weakened the European Union more than anything else. It would be a disaster if they leave, of course. I am as the always pessimistic, im slightly optimistic right now that theyll stay in. Given that there is no accident or some kind of incident happening on the continent in the weeks ahead. There is the old saying, that which does not kill you makes you stronger. Is that the case in the eu if britain votes to stay in . We have had that saying for so many decades now in europe, that we always said, well, we went out of every single crisis stronger. I think its none sense. Europe is weaker than ever and the discussion has not made us stronger. So what happens . Say you get through this, and the britons vote to stay. Whats the next step . The next step will probably be that other european Member States will also start to negotiate their terms in the eu. The next step could be we found even more desolidization. There could be another stock debate. Its hip to vote in or out. You mentioned europe is weaker than ever. What needs to happen . What could happen to strengthen things . Where did things go terribly wrong . We have to face realities. Weve been living in some kind of a dream now for a couple decades, and a couple of things were wonderful. Its the peace dividend, the four freedoms. They all worked out properly but people take it for granted. People do not believe in that kind of narrative any longer. They say, we need something new, tackling all the new geopolitical issues. The refugee crisis. The refugee crisis is a huge issue for europe to deal with. I dont see any clear answers. Yeah. Its not over yet. We didnt see any answers at the g7 meeting. No answers are coming from the European Union. The most toxic element is that we start to desolidize in the union. The biggest and strongest bond weve had for years and decades has weakened. The realities i have been talking about we need to face now is a europe which is not coherent as some would like to see it, which is already acting in concentric circles, which has different speeds. So the treaty still the european treaties still reflect the mythic quality. All these things. So thats not happening any longer. What we need is we have to get our acts together and fix these treaties. At a time where europeans feel less and less solidarity, how do you possibility get these treaties where nations have to give up even more sovereignty where you have questions about Border Security and crossings . If the option is giving up all the achievements i have been talking about before, if at the same time risk of geopolitical clashes is rising, if at the same time we face larger challenges on the global stage, where a single european nationstate could not prevail or be successful thats the message. We need leadership. The jobs have been much more plentiful and youve increased gdp. Its probably tougher than say from greece where the refugees are hitting their shores and theyre being asked for more austerit austerity. Its true but all the refugees moved to germany. Merkel is in trouble for the first time in a long time. Shes held together the eu. Thats right. Everyone looked at her i called her once as the mael vellia. She was trying more or less to keep it as quiet as possible at home. That shows again we are first thinking nationally as opposed to european. If the fed, the u. S. Federal reserve votes to raise Interest Rates, does that help at all to take pressure off your currency to maybe help from an economic position . Off the e. U. Currency, i should say. Right. Its bits and pieces. There is no larger no larger impact in my opinion. It does not reform the e. U. It puts the pressure off our shoulders, but we still need to do more. You need the pressure in order to be pushed to make some of the more difficult decisions . Weve been through the pressure since 20072008. And its its rather cynical to say actually we need to clash to finally come to terms, but we need to wake up over there. Whats your end game . How do you see this playing out . I always say i love this american saying. Well keep kicking the can down the road. Is that an end game . No. Its actually just trying to keep something together which is weak right now. End game would be finally to have some leaders who are willing to fail, who are willing to risk reelection to say, okay, lets get something done in the European Union. Kt. Thank you for coming in today. Coming up, threetime candidate for president ron paul, holding out on his endorsement of donald trump. I dont know if thats the right way to say it. Well ask him what he needs to hear before he would support the presumptive gop nominee. He joins us next. Welcome back to squawk box. In our headlines this morning. Air travel demands slowed in april to the lowest rate since january of last year. The Traditional Air travel Association Says the impact of the march attacks on the Brussels Airport and safety are the top challenges facing the industry. A Group Holding its annual meeting in dublin this week. While airlines are getting a boost from lower fuel prices, weakened economy and ticket prices are posing problems for a sector operating within thin profit margins. Back to politics. Donald trump starting to rally the gop base. Still those are holding out from endorsing the candidate. Joining us former u. S. Congressman dr. Ron paul. Congressman, you want tucdonald trump to be more libertarian in his approach. Will you endorse the libertarian ticket . I think people who are frustrated with socialism coming from the democrats and theyre frustrated with trump, you know, they ought to vote for the libertarians. That would be a good idea, i think. But i dont know if trump is going to change his ways. Ill have difficulty supporting him, obviously. The just looking at your preinterview notes, i didnt think there was even a chance that you would ever support donald trump. There are things he could say to bring you into the fold . Well, sort of facetiously, yes. Get rid of this notion and he confesses that putting on 35 tariffs is a crazy idea and that he just said it to gather up votes. I would like him to get away from the idea that the Interest Rates must stay very low to keep the economy going and allow the fed or get rid of the feds ability to fix Interest Rates. If you ge tt the fed out of the Interest Rate fixing and get the notion that all our problems are from mexico and china and that we have to punish them i think those are crazy ideas. If he would argue the free market this is jokingly. Trump will not back down on anything, but thats what he would have to do. Most people have sort of rolled over and say, yeah, we complained two months ago about tariffs but he probably wasnt serious. How do we know what hes serious about. The tariff war would be terrible right now. The way the fed manipulates Interest Rates has been the cause of our trouble. I just read this morning that the prices of houses now are the highest in history, especially on the valuable houses. There is a huge bubble out there. People seem to ignore it because 99 have not participated in it. There is a lot of malinvestment out there. Excessive debt. Unless thats corrected, believe me, tariffs and that type of mercantiliism wont help us. We need free trade. People probably thought you were crazy when you ran. To this day. We dont need the irs, the va, the tsa. I dont know whether they were bargaining positions for you. We could use reforms in all of those. As far as mexico, a secure border probably is something that appeals to people. Maybe maybe you dont necessarily deport 11 million people, or you find some way to work with the system. But securing the southern border probably is not a stretch for a lot of people that thats something we need to do. No. I think i think ive always complained for many, many years when i was campaigning before, we worry more about the borders in the middle east and we spend trillions of dollars and kill a lot of people and americans get killed and we forget about our own border. Yes, i think we should concentrate on them. This idea of building the china wall on our southern border and making mexico pay for it i dont understand how people say, hey, you know, that sounds like a pretty good idea. Thats his rallying cry. I find it a little bit silly. I dont know. I mean, i dont know maybe not a physical wall. You need something that secures the border. I dont know how you i think so too. My program is deny all incentives for people to come here. Trump made a good point the other day that, illegals that come in here probably get better treatment than our veterans. I would say no benefits. They dont come here to get on our welfare rolls. Right now, our economy is not doing well, and there are some statistics now that show that there is an exit of mexican citizens away from us, but we need to just eliminate all the incentives. In a Libertarian Society property would be owned pardon me . You guys could get somewhere closer to agreeing on that. As far as china goes, i dont know what the correct answer there is. I dont know whether its tariffs. Do you concede maybe that there are times when we get the short end of the stick in certain areas and china takes advantage us, whether its intellectual property, hacking or flooding us with steel or i mean, a lot of these things, the reason they resonate with people is because there is some truth to it. If you start at this, what you would think is a crazy all or nothing position, if you start there with the idea of negotiating something that helps the United States a little bit better, maybe that could bring you around. Well, i start with a different principle. I argue that you are an american citizen, you earn money and have the right to spend it any way you want and the government shouldnt tell you. If you want to buy an import because they have discounted it, its a benefit to you. This whole idea that its the foreigners fault. Oh, the chinese manipulate the currency. What do you think we do . We do too. Were the biggest currency manipulate. We have the advantage of having the reserve currency. Weve done it for years and weve had tremendous advantages. We exported all our inflation. We printed the money. We buy stuff cheap. Which has been a blessing for poor people. They send it back there and they finance our debt. We have a good thing going. Right. It will always end. I mean, its a bubble. Debt is a bubble. Right. We just cant to do this spending and inflating and borrowing. Its a course that will lead to a majority calamity as far as im concerned. When it comes down to it, if you had an either or you have to fill out the form, and it says Hillary Clinton or donald trump, you have to fill it out. You cant rip it up, you cant write in weird al yankovic, you cant . I cant. I would have a guilty conscience. Both of them will mess things up. You would throw the thing away . Some people are in that position. Others get to the point where, i dont know. Its either or. Thats the way its been for always voting for the lesser of two evils. Im so tired of that. I played that game for so long. You still end up with an evil. Im not for that. If you can pick out one thing where trump is better, i dont know it matters. You can stay home that day. Well, i may i may still vote, you know, for another alternative. I would like to see on the ballot, none of the above. I bet it would win right now, this year. Im sick of all this. None of the above. Im tired of all this. Doesnt matter anyway. Republican and democrat policies for the whole time in my life that ive watched. The policies never change no matter what the platforms say. Platforms are a farce. If you put none of the above, then the guy who is there gets to stay another four years. How would that strike you . Wed have to deal with that then. Nobody would allow us to do that because it would be such an embarrassment for the politicians. What about the irony of the rule set up to keep you from challenging mitt romney being something that helped donald trump win the nomination very early on . I think it is ironic. That is true. Its an irony that went back to haunt the republican party. So it was so unnecessary back then. I didnt have the votes that donald trump had. We had the five states. We qualified. My name was supposed to be put in the nomination. I could give a speech. They got houysterical. Oh, no, we cant. I think they didnt like it because i had political clout and i had ideas challenging the status quo. That made a difference. So they got hysterical and changed the rules and said, no, we dont want any part of him and then they lost the election by a narrow margin. Theyre not better off now that theyve made changes. Now theyre trying to recover from it. Theyre saying, we hate trump. We didnt want him. We have to save the party. The party above convictions and good policies. So now theyre in turmoil. There are still republicans who say, were going to get an independent candidate to run. Yeah, right. They better hurry up because time is running short, and i think the contest will obviously be between trump and hillary unless hillary gets indicted but thats highly unlikely the way the political system and the judicial operates. Its not likely to happen. Exactly. Thanks, congressman. See you around. Thank you. Thank you. When we come back, it is the unofficial start of summer. Starbucks unveiling a new lineup of cold drinks to appeal to those iced coffee cravings. Speaking of starbucks, Ceo Howard Schultz weighing in on the state of the consumer. Well show you what he said next. Its more than a network and the cloud. Its reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. And i thought, well, you need to go to the doctor. I was told that is was cancer, and i called Cancer Treatment centers of america. Dr. Nader explained that they can pinpoint the treatment. Once we identified that there was this genetic abnormality in her tumor, we were able to place her on very specific therapy. Our individualized care model gives each lung patient specific Treatment Options with innovative procedures that are changing the way we fight lung cancer. We have Excellent Technology that will allows us to perform very specialized procedures for patients who have lung disease. To learn more about these targeted therapies and advanced procedures for lung cancer, as well as the experienced physicians who deliver them, go to cancercenter. Com when he showed me the cat scans, i was so amazed. With this treatment, she had a dramatic response. Call or go to cancercenter. Com. Cancer Treatment Centers of america. Care that never quits. Appointments available now. Coming up, we have breaking Economic Data. Personal income and spending. Plus new numbers on jobs in america. Well hear from paychex about how many people Small Businesses are hiring right now. Stay tuned. Youre watching squawk box on cnbc. First in business worldwide. Take it in but dont look down because im on top of the world hey waiting on this for a while now, paying my dues in our headlines. Gwyneth urging shareholders of Tribune Publishing to withhold votes for all directors at the annual meeting saying that should be the case until and unless tribune engages in talks about the cashtakeover bid. We are literally ten seconds away from personal income is it spending. Futures up for most of the session and continue to trail up. Rick santelli standing by at the cme in chicago with the numbers. April income expected. 4 , arrived up. 4 . No revision to last month. Spending, more powerful than the. 75 . Up 1 . Lost a tenth from last month. If we look at the spending side, real spending was up. 6 , better than expected. Maybe here is what everybody wants to look at. Granted the fed picks a very conservative inflation game, granted, maybe services are running faster. But whatever you look at, this is the one they look at personal consumption expenditure. Month over month, up. 2 . Year over year may be the big number, up 1. 6. That was the last look. Thats what we expected. Lets do a quick walk around the block. Februarys number up 1. 7, hottest since december 2012. We havent been 2 or higher since april of 2012. That seems to be the target. But like growth, it hasnt gotten up there. Preopening equities are still solid. Up 35. Many markets were open yesterday. Well have to see. Fascinating. Boon yields up 18, 19 base points. It doesnt sound like a lot but its close to a fourweek high in the euro zone. We want to Pay Attention to that. Steve liesman is on the set with us. What do you think of the numbers. Income number up 0. 4. Wages and salaries up 0. 5. Coming with a revision to the Fourth Quarter and firstquarter wage and salary number that was strong. Consumers have money in their pockets. We saw that they werent spending it, so by math the savings rate went up to 5. 9. It came down in april to 5. 4. Thats okay. Who is to say where the right savings rate is for people. It came down. Thats why you had personal consumption up 1 . When consumption exceeds income the savings rate goes down. Strong on durables. Thats the car number. Autos are coming up this week. An expectation of over 17 million. On the inflation side, the fed would like to see that number rising, that core number, 1. 6 from 1. 1. The headline number is up to 1. 1 . Up. 3. The core number is stable. When you say whats it going to take for the fed to hike, i think its stable to rising. It doesnt have to be right at the 2 number. It has to be some sort of confidence that theyre on their way there. We put together, becky, the hikers guide to the data for the week. There is a lot of data coming up. I want to share it with folks here. The beige book comes out tomorrow. Ism manufacturing. Thats probably going to be the weak report of the week. The Manufacturing Sector has still not found its legs in that poststrongdollar world. Beige book. Vehicle sales. Ive seen estimates around 17. 4 million, which is a good number. Adp on thurz asday and the ecb. The consensus is 206,000. A definite ratcheting down. At the same time the Unemployment Rate is seen coming down to 4. 9 . You cant maintain it when you get to this low unemployment level. Exactly. I have a few commentaries from some of the economistthe econi it would weaken the case for waiting however we expect the data to be mixed enough to bolster the case for caution. Its all about the data between now and june. If you get mixed data, the fed could wait another month. Another Analyst Thinks they ought to wait another month. I dont think there is much at stake. A quarter point, june or july. Big deal. Christian says a july hike will likely pass smoothly and could see risk assets rally further. A june hike would risk material strain on Global Markets and the traditional economy. That sounds bizarre that the difference of 30 days christian is not given to hyperbole. He is a measured guy. He was a key advisor at the new york fed. He thinks the fate of the world rests on the 30 days after talking it up so much, there are two things theyre facing. First of all, they dont want to surprise the markets. But at the same time, right now june is still only 30 to 35 that they hike, but at the same time once you have so many of them out there talking and on the same message, beating the drum that rate hikes are coming, they risk the credibility credibility if they dont hike. They risk the credibility if the numbers are good and then they dont hike. Yeah. They i guess could argue they run the credibility risk either way, i think. What if the data is good and they do one of the things they did like in october, talk about considering the rate hike at the next meeting, which would pretty much bake it in. Such an old song and dance at this point. You would be like, oh, they did it again . Theyre going to have to listen to a month for people criticizing them for not doing what they said they were going to do. If you think about the long term. If youre investing for three, four, five years, the idea the fed moved a quarter in june versus july does not make a whole lot of difference, whether or not it happens in that month or the one after it. Well see the data. Thank you. Weve said that about every time they havent raised. Weve gotten a grand total of one quarterpoint increase. How many goal posts have been moved . 6. 5 to 6. 5. 5 to 5. New data breaking on Small Business employment across america. Latest paychex ihs survey showing job growth declined. Marty is here to take us into the result. The ceo of paychex. Are we at a point now where valued employ yeses can start to say, i want a little bit more or im going somewhere else . Will this start to be reflected in what everybody has been waiting for . Income gains . We could see some of that. We have seen wages go up, actually. We have seen that with the states that have minimum wage n increas increases. Its dropped off after a hot start to this year. Were seeing more of a drop in job growth in those states that had minimum wage increases. Kind of an interesting impact there. Wow. People arent going to want to hear that. So number one, the wage gains were seeing are not from marketbased better economy, making workers less scarce . Theyre from legislative action. Secondly, its actually those are the states that are actually hurting in terms of job creation . Its not supposed to work that way. Well, i think i think its a combination. Obviously, when there is less people out there, youre going to pay more to get people, but we definitely have seen in the data for Small Business job growth that those states with minimum wage increases the wages have gone up more but the job growth is lower than the states without minimum wage increases. I also think that youll love this one regulations like overtime rules and minimum wage increases are putting a little bit of a damper on job growth. Small businesses are being more careful. Unbelievably, marty, its jobs week again. Another jobs friday. Are we have we downshifted . Or will the jobs numbers confirm some of the other more positive Economic Data . Do you think were in a downshift . Will this be born out in the next few reports . I dont think so. We had a hot start to the first of the year. The data we have was up pretty strong in the first part of the year, making up for the downturn at the end of 2015. It could be a temporary thing. But regulations, minimum wage increases, those things make Small Businesses in particular a little careful before they hire the next person. What is the number friday . Liesman . I just got a fresh one. I was using 162 from reuters. Dow jones is now 156. Its sinking. Why 5 Unemployment Rate. We were averaging 200. Last month we did 162. Now youre down you said 160. 160. You said anything 150, 160 is greater than the growth of the work force. Thats enough to keep the Unemployment Rate stable. We arent going to get a june increase . June rate hike . You dont care. For television purposes i do. All right. I dont know, marty. Maybe we are i dont know whether thats a discernible downshift or not. It probably would be good because then we can upshift a little right in september and october before the election. Well yeah. You have to remember the party thats in power loves when that happens, dont they . They do. You have Summer Hiring which could help to pick up a little bit over the summer. Thats parttime employment mostly. But you have also got the election that does make people a little more cautious about hiring until they know kind of what the rules and what the platforms will be. All right. Great. All right. Thanks, marty. Appreciate it. Okay. Thanks, joe. When we come back, lessons from a galaxy far, far away. What star wars can teach us is more about in the realm of economics and politics and not just hollywood. Well talk to the author of the new book the world according to star wars. Thats next. From bank of america to buy a new gym bag. Before earning 1 cash back everywhere, every time and 2 back at the grocery store. Even before he got 3 back on gas. Kenny used his bankamericard cash rewards credit card to join the wednesday night league. Because he loves to play hoops. Not jump through them. Thats the excitement of rewarding connections. Apply online or at a bank of america near you. Our customer is a our 21yearold female. Heavily into basketball. Wait. Data just changed. Now shes into disc sports. Ah, no shes not. Since when . Since now. Shes into tai chi. She found disc sports too stressful. Hold on. Let me ask you this. Whats she gonna like six months from now . Who do we have on aerial karate . Steve. Steve. Steve. And alexis. Uh, no. Just steve. Just steve. Just steve. Live business, powered by sap. When you run live, you run simple. With usaa is awesome. Homeowners insurance Life Insurance automobile insurance i spent 20 years active duty they still refer to me as Gunnery Sergeant when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and im a usaa member for life. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. Welcome back, everybody. In our headlines this morning, medical products maker medtronic reporting quarterly profit of 1. 27 a share, one cent offer expectations. Revenue beating forecasts. Medtronic forecast fullyear profit of 4. 60 to 4. 70 a share. Below for the most part the consensus estimate of 4. 70. The stock is up about 11 cents. Germanys bayer increasing its bid for monsanto according to the sunday times. The new bid could come this week after monsanto rejected the offer last week. Starbucks is making a big bet on iced coffee. The company is unveiling a new lineup of cold beverages today. Vanilla sweet cream and nitro cold brew. Starbucks is projecting that the cold coffee category will double in the next three years. Summer we get iced. Dunkin donuts, actually. In the winter you get hot. I dont want big whipped cream, you know, flavorful caramel stuff. No. Youre just adding to the problem. Calories. Calories. Just adding to your problems. I do like blueberry. Speaking of starbucks Ceo Howard Schultz, talking to cnbc kelly evans, weighing in on the recession fear factors and the state of the consumer last week. I think its an overstatement to say were heading into a recession, but clearly there is significant pressure and anxiety on the american consumer. Youre seeing that play out in a number of the earnings reports that have come out recently by Consumer Brands and retailers. I think the pressure and the anxiety given whats going on in our political system is adding to that situation. Do not miss this interview. The full interview which is on later on neclosing bell. The star wars films are full of deception and truth. If you ask our next guest, star wars offers important life lessons in this galaxy too. The new book the world according to star wars is with us. He formerly served as administrator of the White House Office of information and Regulatory Affairs under president obama. Cass, thank you for being here today. Thanks for having me. I thought i was a star wars freak until i read your book in the notes. You have taken a much deeper meaning in this. I got into it because my now 7yearold boy did. I was no the a star wars freak until the boy was staring at it. I was intrigued why its taken over our culture and made 30 billion. More of the gdp of half the nations on the globe. The question of why its become the defining saga of our time is an intriguing question even for people without much interest in star wars. What did you find are the reasons . One of the reasons is caught a wave. Like some businesses and some political candidates, it got an echo chamber going which got louder and louder, so much so that everybody was hearing it. You can think of your preferred company or politician who did the same thing. The other thing that happened with star wars, it took many myths and religions and instilled their essoencssence. Thats what george lucas tried to do and succeeded. It gave an element and twist of freedom. That you have freedom of choice, whether you are about to have a child, and you can take your life in multiple directions, whether youre running a company and you maybe want to try cold coffee and you can give that a shot. Or whether you want to change your career or be helpful to a friend who is vulnerable. Which is a crucial moment in star wars. The emphasis that on every minute of every day we have freedom. Thats the twist that star wars adds to myths and religions of many cultures. You are a behavioral economist. What jumped out you from your training that said this is something to take a second look at . I am trained as a lawyer but have a keen interest in behavioral economics. What interested me in the star wars tale about behavioral economics is there is a lot in behavioral economics about how the human mind works, how we end up being subject sometimes to manipulation, how we can sometimes be tricked. Youre talking about the jedi mind tricks. The jedi are masters of behavioral economics. There is some psychological reality that they can divert your attention so you dont see the droids they think youre looking for. Or they can make it seem like there are illusions because of misdirection. You are telling me that when he reaches his hand and the light sabre comes flying to his hand thats a trick of misdirection and not actual mystic powers . Actually, in the long time ago in a galaxy far, far away they have powers that go way beyond those identified by behavioral economics. Your son, i take it, loves the movies not for the broader messages but the flashy effects that come along . He does love the effects. And i think the tale of a young boy going away and becoming a hero. I hope he doesnt go away for a long, long time. Or get to the dark side. We discuss behavioral economics a little bit, as any good father would. Cass, thank you. Interesting perspective. I did enjoy it. The book is called the world according to star wars. Thank you so much. Forget the minimum wage debate. Look out for the rise of the machines. Worried about this, as becky said, for years. You said centuries. Youre probably not wrong. Robots about to invade and then take over the nations lowpaying jobs. Thats even before the killer what are those things called on terminator . Thats even worse. Killer welcome back to squawk box. Timing has confirmed my space has been a victim of a hacking incident. The company said the breach didnt affect any other systems. Subscribers or Media Properties at this point. Just myspace was compromised. The data includes myspace user names, passwords and emails. The addresses that were published on an online hacker forum. Myspace invalidated passwords of all known affected users and monitoring for further suspicious monitoring both existing accounts for no. And one of thems yours. And i joined myspace recently. Its a great new idea. Kind of like you go on and puts pictures of yourself. Really . Yeah, its really cool. Were still on myspace. Welcome to 2016. Who is still on myspace . No idea. Just me. You. Somebody else. When we come back, this mornings biggest stock movers. And then later this morning, dont miss the u. S. Energy secretary. Hell be joining squawk alley at 11 30 eastern time. Stay tuned, youre watching cnbc first in business worldwide. A young boy fell into a gorilla enclosure at the zoo, and the medical Response Team shot the gorilla saying it was their only option to make sure they could save the child. Theres a growing push for the boys mother to face charges in the incident. Nbcs jay gray has the latest on this story. Reporter cell phone video captures the horror as it unfolds at the cincinnati zoo. A small boy inside an enclosure for a full ten minutes. At times seemingly protected. At others dragged and tossed around like a rag doll by a 450pound western lowland gorilla before zoo officials made the difficult decision to put the animal down. We did not take the shoot in of urambi lightly, but that childs life was in danger. Reporter today a handful of mourners gathered for a memorial to the 17yearold gorilla. Im here to make sure people remember that he lived his life in captivity and died through no fault of his own. Reporter theres been backlash on social media since the incident. More than 150,000 have signed an online petition calling for the boys mother to face charges, but police say that wont happen. Calling the situation an unfortunate accident. The family released a written statement saying we are so thankful to the lord that our child is safe. He is home and doing just fine. We extend our heartfelt thanks for the quick action by the cincinnati zoo staff. We know that this was a very difficult decision for them. And that they are grieving the loss of their gorilla. The gorilla exhibit remains closed. Zoo officials expect it to reopen next weekend. Jay gray, nbc news. That zoo so well and that exhibit so well. All right. Look, youve seen it in other places too. Its an incredibly unfortunate accident. It is. A threefoot barrier that the child climbed over, fell in. And animals are you just dont the zoo leader had seen him crush a coconut with his bare hand before. These gorillas are massive. He was out of context a little confused. The counter factual which we always argument about here. Right. Switching gears back to the stock news today, among the biggest movers today volkswagen, surprising analysts by reporting an increase in First Quarter profit earned 3. 8 billion for the quarter, up slightly from a year earlier. Consensus forecast call for a 17 drop in the wake of the companys diesel emission scandal. In squawk sports news, steph curry and golden state on their way to the nba finals. Warriors coming back from being down 31 in the series to force a game seven with the Oklahoma City thunder last night. And then win big, 9688. The warriors punching their ticket to the finals where for the second Straight Year theyll be facing off against lebron james and the cleveland cavaliers. That first game is on thursday. Bernie sanders was among the excited Golden State Warriors fans at game seven of the western conference final last night. The president ial candidate was seen taking selfies with fans along with Campaign Supporter and actor danny glover. Sanders was in oakland ahead of the california primary. After the tweet or after the game he tweeted, last week golden state was down three games to one. Tonight they finished off a great comeback. I like comebacks. We dont hear our computer rising machines guy. I think watson might have hijacked him. Didnt want him saying these things and bringing up the questions about whether these machines should actually be as powerful as they are. Were going to be totally people with flesh and blood, theyre not going to some day theyre not going to need us at all. And its going to be scary. Lets hope. They dont like us. Theyre protecting us. Oh, yeah, right. Make sure you join us tomorrow. Squawk on the street is next. Good tuesday morning. Welcome to squawk on the street. Im Carl Quintanilla with david faber, martin sooshort week, ja jobs numbers, auto sales, stocks trying to hold onto gains. Consumer spending came in strong here. The best in nearly seven years. And watch oil ahead of that opec meeting on thursday. S p
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