Transcripts For CNBC Squawk Box 20160610

The bombaydo down as well. Also look at crude. Wti falling to 49. 77. And the battle for the white house is front and center this morning. President obama officially endorsing, surprise, surprise, Hillary Clinton for president as did Vice President joe biden. Senator Elizabeth Warren doing the same and didnt take long for gop candidate donald trump to respond. Trump tweeting obama just endorsed crooked hillary. He wants four more years of obama but nobody else does. Clinton fired back with a tweet of her own saying delete your account. And that tweet let to another tweet. Reince priebus, if anyone knows how to use a delete key, it is you. This is all happening in the backdrop of the article in the wall street that emails are now in the center of classified information on drone strikes in pakistan. And were going to talk all about this where the state of the email investigation is with john harwood in a few minutes. I just five hard long hot months three hours at time. Which is what we do. I had a couple of compensatment that. What is delete your account . I know to block someone. What does cleat your account mean. Or unfollow complete i or delete your account. Oh just get out oh i like reince priebuss response better. And then. Donald trump responded back too. And something after that. But then i also you know, usa all the papers. Like obama endorses Hillary Clinton. I had same, you know, he wants surprise surprise. Surprise surprise. But then i realize it is because he didnt endorse from the same party as his, the socialist party. Why it was instead of endorsing a like minded does that work for you . Its not funny. Its not funny its true. Sad but true. David ledman doesnt gave rats pa tootty about stephen colbert. Stephen colbert. Here anybody that can do that on every promo. I think hes so funny. Right is this. It is the same piece of tape. No no. He does it. That is his thing. And that is funny. I dont know much about his other stuff but. Im gonna isnt that great when he does that though . Hes like waving with the smile. So funny. Are you going to do the slow will you slow jam with me like the president. I asked them not to run that like three times every per 15 minutes. Like fallon. Tonight show. You doing . Wont be the end. Gottne sit up there behind hillary . That wont be the end of president obama bpg on you dont want there will never be an end. That all depends. I just blocked someone who said yesterday he said that it is nice to see that you are such a big hillary backer. And i said who me . Because i was included with chuck todd and somebody else. And he said yeah i saw you yesterday questioning someone for supporting and i said you know what. I cant even answer that. I just blocked that. I was like you know what, i would tell you that joke about the ceiling but it might pink . Yeah no. Its over your head. Tesla responding to reports this morning see if you take into account from one side. I have to get it from the other too. Down the middle my friend. Like you . Yes. Yes. Tesla reports this morning saying the that the u. S. National Highway Traffic Safety Administration has not opened any investigation into a defect in its model s or x vehicles. The regulators said yesterday it was reviewing reports of suspension problems in the model s and looking to get Additional Information from the company and car owners. Tesla saying the investigation was just a routine screening, or a review. It wasnt an investigation. A really what i like to call a revi review. Ive heard that before. Restaurants of possible defect that could cause the driver to lose control of the car and tesla shares losing some ground this morning. But as the 225 stock so that is not even a 2 drop at this point. Wall street journal reporting National Amusements. The Holding Company that Sumner Redstone controls via center of mass through has started the recruiting process. His daughter is said to be leading the efforts. The latest move comes after the 93yearold redstone ousted via com ceo and and another from the board of National Amusements and the trust that will actually control via com and cbs if redstone is deemed incompetent or dies. Here are some of the candidates. Ken lere. Also nicole seligman, judith mchale. And a pioneer of modern capital investing was died. Thomas perkins, 84 years old. Cofounded the vc pioneer. And among his most successful investments, genentech. He stepped back in the late eighties after recrueliting ovi Venture Capitalists tot the firm. He worked at Hewlett Packard early in his career. Later he joined the board in 2005 and helped engineer the ouster of ceo Carly Fiorina though he ended up supporting her, unsuccessful run, for president this year. Resigned in 2006 to protest a board investigation into the press leaks. Perkins said hp had used illegal methods if you might withdrawal a recall of all of that to obtain phone records. More recently published a letter in the wall street journal and compared the wall Street Movement with nazi germany. But he was a legend. A couple of really great bits this morning about his life and he did. A yacht and a sailing yacht. And a great book about all of that called mines bigger. Title ive always loved. How do they do the phone record it wasnt profiling. There is another word for it. Used that word for like two weeks and then we havent used it since. Yeah. Oh my goodness. When you take it you on the journalist and you are doing everything. What was the word . It is not profiling. Its not profiling. Come on. We have great viewers who are going to tweet us what it was. It is like profiling. We try to do the jumble every day to keep our. Pre texting. Pre texting. Anyway. But, you know, i was thinking about him last night. And he did some Amazing Things and really changed innovation in so many ways. But then all of these comments and other things towards the end of his life take up so much space in terms of how hes remembered. And i just wonder. Distanced himselves from him. And he had this very fascinating life. But how somebody is ultimately remembered. Because i would give him the benefit of the doubt and all that credit but now there are other things that happened later in his life. And how people measure life. As the very strange he finalshe finally passed a right . And i dont even know how to remember that. And depending where you said he looked like a reasonable guy who are or he looked like a whacko. And i cant remember the pretexting and all the controversy surrounding that. I think he was on the right side of that. But then things were written about him that he was sort or mercurial and then and then he wrote an op ed that talked about comparing the treatment of the 1 percenters to the way nazi germany. Just never compare anything to nazi anything. Find a different. Does anything ever rise to that level . Six million. I also think it is insulting to use the term denier. When its used for. Holocaust. Exactly. He was convicted of manslaughter in 1996 in france for a boating accident i believe. So that was he was a complicated guy. I remember talking to him, calling him up on the phone and he was in the midst of having some Million Dollar watch of his fixed. And then invited me out to come see some kind of cello being built for millions of dollars. Also very recently on the news with Carly Fiorina running. He had been the one who had ousted her but then was supporting her in her run for the presidency. You can make a Musical Instrument today from scratch thats worth a Million Dollars. A cello like a stradivarius or something. And i remember him saying you should come out. Im in the midst. I have my tuner here and were. It was an interesting conversation. Okay. All right rob got it. Moving on. Stocks snapping a three day winning streak but the s p is still less than 1 away from all time highs. Carl icahn yesterday took a bearish stance and he had this to to say when we speak to him yesterday. The Federal Reserve is holding up this economy and they i just dont think you could have zero Interest Rates for much longer without having these bubbles explode on you. So you need fiscal stimulus. And this whole obsebsession wit the deficit is ridiculous. Just looking at how both of you feel. Range bound is a word i think you used. Until there is some type of rebound in earnings. This is a liquidity driven market. I think that liquidity is like fed isnt it . Is that a code word for cheap money . Yeah and ive been saying this for seems like the last year. The market math is simple. It either needs earnings or a pe best. And the pe comes from better liquidity, so the fed stops tightening or the tightening bias. Or you need some sort of sentiment push can i dont see happening here. We just dont have the ingredients right now and to get a sustainable breakout to new highs i think we need to see some pick up in Earnings Growth. Were seeing tiny snippets of it. But it is very small still. With an s p at 21 hundred, if we get even a couple of percent Earnings Growth and well be at 2200 in no time but so far it is not happening. One of your uncertainties is the possibility of a brexit. Did you see this yesterday from mark a Pro European Union has admitted the leave campaign is now winning in the run up to the campaign. The British Public is swaying now towards a brexit. Lord hayward said polls will be close and more and more people are set to vote out. Do you think that is true yet . Because that is not consensus. Well we question the reliability of the polls and this could be analogous to what we saw with scotland several years ago. Where leading up things look o will a lot tighter. That was before immigration. Before isis, before a lot of things with great britain. Absolutely. But having said that what we have a scenario where depending upon the turnout we think it could be a different outcome. So the higher the turnout the more likely they are to remain. Lower turnout typically that demographic would opt for a brexit. So if people are if that explains why this market in this country has had trouble making headway as we got close to the old highs, if it was a leave it would do what . Our stock market would suffer a big selloff if there was a brexit. Well we could suffer a lot of volatility . Does that mean a selloff . Because volatility is either way. Yeah certainly any kind of stress on the system, any instability or uncertainty in this environment where we are in a fed funds rate perg purgatory could have a significant impact. It could be shortterm but it raises a lot of questions about the implications for the rest of the euro zone. This week the market really has felt like it is not august, is it . And it hasnt been that warm here. But this week is not exactly you know, you are not going to watch that all day long, up 20, down 20 and it ends down 15 or something. I was in london a few days ago and it is all that everyone can talk about. And i agree that the polls may or may not be an accurate reputati representation. And we tend to look at the bookies. The odds still seem to be against a brexit. It is about 20 80. I think the danger is that a brexit in the uk as part of a larger antiglobalization movement, and you can see that here in the u. S. Play out. That is going to lead to france having a referendum, or italy and then eventually the eu breaks up. And if you have a large worldwide antiglobalization move already against an aging population that is going to take Global Growth away from what it could be. And i think that is really the risk. So this referendum is really a referendum on globalization. And that is why i think it is important. But it is not the immediate aftermath. It is really who goes next after that. So christina. In the old days we had an unbelievable domestic economy and we were able do 3, 4, 5, and never talked quite as much about globalization. Is is it the farm animals have already left the barn . You cant go back to that, can you . Can you go back to 3 or 4 here and who cares what happens everywhere else . Well it would be a lot harder because of all that weve done in terms of globalization over the last several decades. It wouldnt be impossible over time but it would mean a lot of changes and fair amount of disruption. You know, to certain people, i wish we cant it is almost like being in the eu. You have, you know, countries likes germany where there are people working their butt you have and producing and with a great economy. And some other we wont mention any other names but the southern european economies. Benefits greatly from and we benefit greatly from selling into but do we need to, our net average of gdp has to be brought down by countries who cant get their economic houses in order . The u. S. Has been a lot more cohesive than the eu. If we could see more Capital Investment in the u. S. Particularly in technology, that could improve productivity. Okay. Thank you both. The Democratic Party making a big step towards unity. Were going break down the race to the white house and news on the email investigation as well. But first, this day in history. Welcome back to squawk box. The u. S. House of representatives overwhelmingly passed a bill to help puerto rico deal with its debt. The bill now goes onto the senate. President obama formally endorsing Hillary Clinton in a prerecorded video that was released just yesterday. That coming hours after the president s meeting with Bernie Sanders. And john it definitely feels like things are heating up. This has solidified into a two person race and those two went at it pretty heartily on twitter. Yesterday was the kind of day that Hillary Clinton wanted. Because you had the effective end of the democratic primary competition. President obama coming out and endorsing her. Vice president obama coming out and endorsing her. And last night Elizabeth Warren also joined the party. Im ready. I am ready too get in this fight and work my heart out for Hillary Clinton to become the next president of the United States and to make sure that donald trump never gets any place close to the white house. Bernie sanders gave conciliatory statement when he i merged from that meeting at with president obama at the white house saying he was going to meet with Hillary Clinton and work with her to stop donald trump and the other benefit to democrats, as polls are now showing a widening Hillary Clinton advantage is that republicans are split, dont know what to do about donald trump. You even have talk about dumping trump at the convention. Although i dont think that is going to go anywhere. In contrast to democrats pulling together and girding for that fall campaign, guys. And i wondered a lot of things as i was watching that play out yesterday. Do you think Hillary Clinton and senator warren had any sort of conversations before that took place . Or is this something that Elizabeth Warren is getting in line following bla inbarack oba . Hillary clintons talked off and on to all of these key players. She certainly wanted their endorsement. And, you know, there was a period after donald trump locked up the republican nomination weeks ahead of Hillary Clinton when the polls were showing very close. Some even had donald trump ahead of Hillary Clinton. And that raised the sense of urgency within the Democrat Party to when the time was right to get their act together, unify and be ready for the fall campaign. And that is exactly what happened. And weve seen some of the fall out over the last few hours. Fox news, which three weeks had a poll showing donald trump ahead of Hillary Clinton. They now show him having dropped six points to 49. That is the poll i thourpgt talking about and. When i said show hillary widening her lead. I didnt how going from 45 to 42 to down 42 to 39 i didnt see how that was widening. When we do earnings we say that losses widened. But if it reverses we say it reversed the profit to a loss. So that was not widening but reversing. Joe im talking about the average of polls. A time when the rcp average had trump up as well. So that would be reversing not widening as well. Youre replying shes always been as well. Which she hasnt been head. I actually said that he was ahead. Joe let me just clarify. Im. Im not gonna be able to. It cant be just me. I cant. Joe let me just explain. The average in real clear politics for the last couple of weeks or the last few days showing Hillary Clinton maybe up a point. Now thats gone up to always there anyway and five months to go. Also wide. And we got five months to go so well see. And it probably wasnt a great week, given the no it was not. John, two questions for you. One, do you think that Elizabeth Warrens endorsement and how forcefully shes speaking is on effort on her part to become the Vice President . Do you think that Hillary Clinton would take her as that . I do not think Hillary Clinton is likely to take Elizabeth Warren. She did in response to a question from Rachel Maddow last night. Shes gotten some criticism from ed rendell, the former governor of pennsylvania, who was asked about Elizabeth Warren as Vice President. And he said well shes not prepared to be commander in chief. No foirn policy experience. Elizabeth warren said last night she did feel prepared. So there is some pride there with her trying to assert she could do it. But i dont think the Comfort Level would exist. I dont think you would get the age diversity on the ticket that Hillary Clinton might want. Shes 68 years old. Do you think shes going to go more a cory booker, younger type. My guess is that shell go for a younger person. Corey booker is a promising candidate. I dont know if that is the case. My inclination would be to think she would go with somebody like tim cane, senator from virginia. Even mark warner who is tim canes colleague in virginia. But i wouldnt nod expect Elizabeth Warren. Clinton emails dealt with drones . I havent seen fall out from it this morning. This is a story that is going to be in the news continually until the fbi concludes its process. And we dont know when that process is going to be. I would not expect it to end with criminal charges against Hillary Clinton. Which is prospect some people have i never heard the c word used before. I thought he was going walk that back. But he did. Those words were chosen. As the criminal investigation. It went from security review to investigation. To now. So criminal investigation. James comey has said it is the federal bureau of investigation. And we will see what the outcome is going to be. You werent at that meeting yesterday between the president and Loretta Lynch i guess. I love that. So he endorse her and say is i want her to win. But were polled there is no way any Political Considerations are going to enter into the way the Justice Department act on this. What were they talking about yesterday . Could have been anything. Hes the president of the United States. The leader of the Democratic Party. There are some potential conflict built into those facts. That is the most we can say at this point. Okay. All right. Great conversation john. We appreciate it. Well see you very soon. Joe you okay . Oh yeah. I mean, it is going to be tough for five months. But i there are ironies everywhere. I loved hillarys tweet yesterday. Yeah i watched on another network. They said just hasnt anyone told her dont even use the word delete. Dont do that. It just opens up someone is going to say you are the master of deleting. But i dont know. It is going to be okay, joe. Well i guess that all depends on where you are sitting. Well see whether it is okay. Thanks. It is going to be okay after the break at least. Coming up apple about to take center stage. What we can expect from the Apple Developers conference. Are big changes on the way . And chipotles rein as king of all restaurant chains may have come to an end. Which burrito maker is taking the top spot . 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And try the microsculpting cream you love now with lightweight spf 30. Good morning everybody. Welcome back to squawk box. Lets take a check of the markets on this last trading day of the week. The futures are in rougher shape than all week. Dow futures down over 80. S p down 13 and the nasdaq down 32. This after a down day for the markets but not a severe down day. Markets closed not far off highs. You can also look at whats been happening with the 10 year note. At this point it is yielding 1. 654 . One of the stories on the wall street journal point out today there was an auction yesterday for 0 yea30 years and the treas sold 20 million with a record shares going to buyers outside of the u. S. A lot of this because foreign buyers are looking around and realizing this is the only place to play. If you want to buy a 30 point Government Bond in germany at this point it is way better than japan or switzerland. In fact the 10 year bund this morning is trading auletll the down to 0. 03 . And that explains why foreign buyers have been so attracted to the United States because it sure beats the heck out of what they can get anywhere else. And Apple Holding its annual Developers Conference next week. The company could announce some changes to siri. Apple music perhaps and apple pay. Joining us now is all things expert on apple. Tech columnist at the wall street journal. Her latest column dear apple, please make the iphone better. I read it with lots of interest. I thought it was spectacular. Thank you. And im curious, you know, if tim called you back. He hasnt. He hasnt imessaged. He hasnt tweeted. Im waiting i think next week. Probably do snapchat so it would like go away or something. Maybe he did that. Im on snapchat all day. Maybe he sent it to the wrong person. What do you expect what will happen next week relative to what you want to happen next week. I think some of the things i want to happen will happen. Tell us what you think. I think there are customers that want to understand this and there are shareholders that want to understand whether this is going to create a new sense of excitement around where the company is going. So one major thing i think apple is going to address next week is siri. For many people i think oh, siri. They have had this bad experience with siri. Never went back to using siri. This is a problem for apple. And it is a problem because google and facebook as i talk about in the column are coming up behind them in terms of Artificial Intelligence making everything they do with their software smarter than what hal apple is doing. So even if it is not exactly talking to siri, it should be siris smarts and assistants working behind the scenes to help users. Is it possible for siri to ever be as advanced as google in the following sense. Apple has made a concerted decision. About this data issue. Apple says they want to protect your data. Google says they want to use your data. So in terms of which device can be smarter about talking to you. If google knows everything about you and apple has decided it cant know everything about you the conversation is different. And from a privacy perspective maybe i i dont want you to know everything about me. And at what point do you decide you need more yours data to make your services better. And i dont exactly know apples answer to that and im sure they will talk about this on stage next week because i think they believe it is an opportunity to really differentiate themselves to be the ones that respect your privacy. Which i have to admit that has some appeal to somebody like me. Im happy to hear that. But there are billions of people who use Google Services and they dont really think about what gmail is doing inside their inbox. Problem with our society. There is a problem with our society. But at what point does apple say we are that company that respects you more than google or more than facebook. But we do need a little more of that data to make better prediction, to get to know you better. Option to opt in or opt out of something. Google too. Id pay more money. Id pay some money to google to say all right. Leave me alone. But they make more money off the ads. So well hear about better siri you think. I think we will. And will be as good or better than google will we here about an echo like device . There is a lot of chatter about that. That is the amazon device that you can talk to. And the amazing thing amazon cracked with the echo is it is not the the phone. Siri in the watch maybe. Maybe they are start to talk to siri in their tv. I think there a lot of appeal this taking siri outside of the phone. And echo or google home. The great video the google home video if it actually is real it tells you what is on your calendar and what you have to do here and what your kid is doing and all of this stuff. That is where the data point comes in. Am i crazy that makes makes you so susceptible to any hacker who then know yours entire life and knows everything you are doing. Think the bigger hear is you have microphones all over your house and whos listening. Are they more limited and better because they are limited . The thing that is very interesting about the echo is that its so responsive. Alexa is actually not as smart as siri. She doesnt know as much but she responds right away. Shes like that friend that is always listening and always has an answer. Siri is hearing things from me that are so ridiculous. She comes up with stuff that no one would ever say. That makes no i said something so obvious and clear. You came up with the most ridiculous thing. So she needs to listen better. She has no idea. You do dictate on your iphone is this. List of these Companies May be listening to youre probably like here. I dont know about that. I dont know real quick because we got to go. Do you watch the show . How do you know where i am on that list is this certainly a little higher than a print reporter. Were like even. Dare i ask. Give me a grade ab or c in terms of what were going to see next week and how excited an investor should be about what all this means relative to everybody else. Im hoping for a. A, b. Youre excited because im excited because i think what coke and apple have been talking about is the our services company. And it is time to put something behind that. The iphone sales are slumping. Why are we going keep sticking with apple. It is in the software. And well see i dont think well see hardware next week. When we come back, wifi and bluetooth technology, detecting them is the mission of the listener. In a world held back by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. 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Lisnr is a company that uses smart phone Audio Technology to deliver data over sound. Welcome. Thank you for being here. And it sounds complicated but am i right you kind of took an Old School Technology and found a better way to use it. Basically. Sound as the original way to get a message delivered. Fast forward to to today weve taken that a different levels. And were doing is applying data to a frequency range and allowing devices to connect more efficiently. You dont need wireless or bluetooth. All you need is a speaker somewhere and you can project it . Yeah. Our mission is to commoditize data, right . I think there are more and more connected devices everywhere. The iot world is blowing up. And even in your home you have limitations how devices connect and talk to each other. But the element of sound will always be present. The things that we are going to do when we go home one day is walk in and say turn on the television or turn on a light. So there are going to be system for voice or sound. And that is perfect for our emergence in a leader as that. What we call the internet of sound. What you can do with this is different than what you can do already with being able to use your iphone and send it over our Internet Connection so that you are playing it on a speaker. What you can do with this is direct it to any speaker you can find including your television. Special four Key Solutions were active today. One is proximity. Us using your speakers at a venue where you are like a stadium and triggering messages where you are complete i offline. And devices now can talk back. So we created asynchronous protocols. Payments, point of sale. We can do contact with payments without nfc. Without retailers spending money, you can connect just by audio. Is it secure is this. Were a closed protocol. Our algorithm is completely prioritiry to the listener. Sing use and tokenized and donnell decodable at that moment in time. Once i goes it disappears. Exactly. You have some interesting backers. And dan gilberts courtside ventures was among them. Does he have some plan to use this as the cavs games or is there something broader happening. Yes that is one of our customers. Cavaliers is playing our tones over their speaker systems and triggering different messaging but also signaling different messaging. Today it would be limited to connectivity and you understand how hard it can be to connect. In a big stadium and there are a lot of people trying to use the wireless. Exactly. Were giving completely offline messaging capability. And that is the magic. Crowded out. Exactly. Exactly. We have an in the coming months we are also going to be able to enable nc ordering without connecting to wifi. What does that mean . Basically you are going to be able to sit at a seat at the game, pick a couple of items, say order. It is going to match the tone. And they bring your beer and hot dog. Exactly. And it will be in airplane mode. I try and wonder is this something that other people could break into . Do you have other competitors doing this and what is the mode that would keep others. Globally. There are essentially two or three competitors. One out of israel and one out of france. We have been the leaders. And we are thinking about it in a way we want to connect devices everywhere. Our proprietary, our patents. Were trying to be ultimately i independent company . Or does somebody like apple say, you know what, we love this technology. This will give us an advantage. Well take these guys out and put them inside . I think thats the goal. To get bought or to go public. The goal it depends. Depends on the price . Depends on the price . We want to be integrated in the devices. We want to be next to the bluetooth button. Consumers should turn us off and on. To get to that level we have to be integrated to c. E. Companies. Thats why you see intel backing us. Whats interesting is there was an article where google said that this was impossible, transmitting this amount of data through sound you cant hear. They tried to use an audible version. But we have done it. Weve done what people said was impossible. As we continue to grow and improve the technology and its reliability, were excited to hopefully, one day okay. One day. Larry page or tim cook will call. When it happens. Call us after. Rodney, thank you for coming in. Great to see you. Dont miss another cnbc disruptor 50 list. The cofounder of the Digital Payments stripe will be here coming up. Academy award winner Jennifer Lawrence about to take on a key role at the center of a Silicon Valley drama. Thats next here on squawk box. Because at sheraton, were changing. Big things. Small things. Spur of the moment things. Changes youll notice. Wherever you are in the world. Welcome back to squawk box. The theranos saga could be coming to the Silver Screen. Director adam mckay and Jennifer Lawrence teaming up for a movie about the troubled Blood Testing Company and lawrence is set to play theranos founder Elizabeth Holmes. Mckay is best known for last years financial drama the big short. How does it end . I dont think theyve even written the screen play. They need to wait to see what happens. Does anyone know . Unhunh. You have to wonder is elizabeth like, cool, Jennifer Lawrence. You could kind of play Elizabeth Holmes i think. Thank you. Youre welcome. But she must be thinking, cool, Jennifer Lawrence. At the same time, my gosh, who are they going to write. It depends on what kind of movie theyre making about you. Why does someone want me to play brad pitt do you understand that . The thelma and louise. I dont know. I dont remember what happened. He didnt die in the end, did he . No. But they did. They said they run out of gas before. Anyway. We digress. You remember the role big question for the morning. Is it time to get bearish about stocks. Were going to talk to the head of sydneys private bank with 63 million under management. Whats on tap for moulson coors this morning. We return in a moment with a big announcement. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Uh, maybe we should call i. T. Bulls, bears and legendary investors. George soros and carl icahn sending a message to the markets. But are they right to be bearish . Are you ready for a long, hot political summer . Hillary clinton getting the endorsement of president obama. Donald trump wasting no time firing back sparking a twitter war. Is the nation ready for months of mudslinging . And time for a brewsky. Once it hits your lips its so good. Ceo of moulson coors will tell us about tapping into the 3 thirsts of the consumer. The second hour of squawk box begins right now. Live from the beating heart of business, new york city, this is squawk box. Singing sweet home alabama all summer long welcome back to squawk box here on cnbc. First in business worldwide. Im joe kernen along with Rebecca Quick and andrew ross sork sorkin. The futures have been weak all morning after this week has been sort of trendless. Weve gotten close to the old highs on the s p and above 18,000 on the dow. But it hasnt felt riproaring by any stretch of the imagination. Oil is down today after getting up above 51 at one point. Back below 50 after the last couple sessions. Gold goes up every day, though its down a little bit today. Missed your opportunity. I know. Missed your opportunity. I just cant do it. Pull the trigger on it. On 1200 whats 60 or 70 . 4 or 5 . Missed it. You are a coupon clipper. 1 in ten years. If i miss 5 in three days, i am not buying. Train left the station. Some of the headlines this morning. Tesla saying there are no safety defects with the suspensions of either its model s or model x. And that government officials have not opened a formal probe. The automaker saying officials have informally asked for information about the suspensions. Sumner redstones national asusments has officially begun the process of recruiting new board members. Weve got just one economic number on the calendar to watch today. The university of michigan, which is out with its midjune Consumer Sentiment index. Comes out at 10 00 a. M. Eastern time expected to fall slightly from the last reading at the end of may. Legendary investor carl icahn reacting to bearish comments by george soros on squawk box. I think he is a smart guy. Listening to what you said he said, i cant help but think he has a couple of really good points. I think there is you know, i have been saying it. I think that you have a sort of a false market, you know, buoyed by zero Interest Rates. You have to be cognizant of it. Joining us is david bail. The private bank has client assets of 63 billion. Thanks for being here. We are entering a weird period. Next week we have the fed meeting. Everybody is waiting to hear what janet yellen says. Probably not expecting any sort of a rate hike this goaround. Also the brexit vote coming up. Maybe people are a little on edge. No doubt. We were just at a Family Office conference. I think people are fairly frozen, looking at the immediate events. So what i am also looking at is whether or not people are taking any action in terms of moving portfolios and theyre not. Theyre still net long equities. Overweight slightly equities. The data doesnt suggest they should take any action but the market certainly feels tr trepidation. The tenyear today in the United States is yielding 1. 6 . The tenyear for germany today slipped below 0. 03 a little bit ago. You are looking at these insane sort of levels that you never expected to see, and it does raise the question of whether or not there is any alternative to putting in stocks, maybe putting in commodities and other places. Yes. If you take a look at, again, what investor actions are, in europe and the United States there is a large focus on dividend stocks especially in areas like energy or health care where you have real prospects on the upside. The yields at 3 and 4 are very attractive. If you expect companies to do buybacks and if you expect earnings to rise, thats where you put your money. Do valuations look reasonable on their own or only because of the central bank . They look median to high on their own. We dont expect the environment the fixed income when you look at the environment for fixed income, if you expect rates to stay down, then you expect prices to be higher. We still do. Its a huge conundrum. It is. I remember a chart recently put up saying that investors have to think over an entire cycle. If they miss the top 30 days of Stock Performance theyll miss the entirety of the return for the last five years, since the crisis. You cant be timing the market. You can be particular about where you put your money but moving money in and out is a dangerous thing. Thats the temptation right now. You feel as if something is going to go wrong. You have reason to believe it looking at what the Upcoming Events are, especially brexit. Then the elections after that and a whole variety of other important world events. The critical thing for us is to advise that you rotate into places where you believe there is value and you believe you can get income and become infinitely patient at this point. Is there a chance well have answers next week . Well know what the fed does and what happens with the brexit. Beyond that we have the election and other world events. Do you think the trepidation is here to stay. It has been since the first day of the year. We began the year being fundamentally arrange issunxiou. Weve reached the highs. In the stock market we have seen Interest Rates go even lower. I mean, this very week. People are almost betting that theyre worried and thats how they express that theyre wary. The bond market often leads you to the right conclusion, is that we arent going to have a catalyst for growth. You think the bond market is righter than any other. It could be. That tells you something. Its a scary thought. It is. When we look at how people are investing, were still ever so slightly overweight in equities for the reasons that you already touched upon, which is thats where the real value can be found. Its hard given the performance of fixed income from the beginning of the year until now. Investors have done well. Its hard to argue to rotate to that more. If youre overweight in stocks are you underweight in other place splaces. Slightly underweight in bonds. The key is a quality move. Places where youll have consistency. It strikes me that were anxious and worried about a lot of issues but thats market psychology to some extent. You can be just as worried when things are quiet and nothing is going on because you dont know where the next issue is going to come. Thats right. When you look at volatility in the stock market, what you see a lot of wealthy families do is hedging. Markets are relatively high and the cost of buying insurance or actually creating safety around your portfolio is very inexpensive. Are they better at hedging than Hedge Fund Managers . Theyre actually hedging. Theyre actually doing it. Thats exactly create. So yes. So yes. That is the way to go with it. Thats right. If you had to pick one best opportunity, one best place, what would it be . Were bullish on energy and health care. Health care because of the relative pricing. People are worried a great deal about whats happening in the u. S. Election. Drug pricing. How crazy things have gotten. Also, if you look at everything from hospitals there are worries about reimbursement. Lots of worries because of potential regulation in the future. Those look overblown to us. In terms of energy we expect there to be some followthrough and Energy Prices to stabilize. When it comes to pricing, we have talked a lot about valeant this week. Mart Martin Shkreli has been a front and center issue. Do you think its been unique to those companies or its more widespread that other health care and Drug Companies have been routinely jacking up prices and assuming that somebody will pay for it including medicaid and medicare. Let me flip that question on its head a little bit and ask as an investor where you want to be. You want to look for Companies Investing in r d, look for companies where the portfolio of drugs and medications will drive sales. Not rollups . You dont want to do Financial Engineering in general as a way of making money. That is really what youre talking about fundamentally. To answer your question do we think that most companies are doing that, i think the answer is fairly obviously no. If you see a strategy where companies are not investing in r d, thats an indication that you need to worry. Theres fruit rollups. Those were good. Strawberry were the best. Some of them. There was a time. Remember . Yeah. Tyco . Ended badly. A lot of them did. It will happen again. Definitely. It might rhyme this time, though, instead of repeating itself. David, thanks for coming in. Spelled different than marty. You keep talking about marty bailen. Im going to do Research Next time before coming on. Star ship. Means were getting old. Modern pioneer of Venture Capital investing died. Thomas perkins. 84 years old. He cofound 0 Kleiner Perkins in 1972 when Silicon Valley still had orchards. His investment jen tech would go on to lead in companies netscape, amazon, aol and google. He was a hewlettpackard board member. He helped to ouster Carly Fiorina. Last year he came back and supported her unsuccessful run for president. He published a letter recently to the editor in the wall street journal comparing the occupy wall street with nazi germany. David kaplan joins us next hour to talk about his life and times. President obama officially endorsing Hillary Clinton. Donald trump and the Presumptive Democratic nominee trading a war of words over twitter. Well talk about the summer of politics, the next step for both of the candidates. Oil hanging around the 50 level. Are higher prices guaranteed in our future . Well ask oil analyst matt smith after the break. Welcome back to squawk box. Futures right now at this hour down anywhere between 80 and 70. Europe down over 1 across most of the averages. Among the stocks to watch down 75 now on the dow. Urban outfitters says Current Quarter Comp Store Sales falling by mid single digit. Analysts expecting the retailer to post an increase of 1. 1 . Thats below. Got about an 8 hair cut on that stock today. Mattress firm. You think, if you see Mattress Firm you say Mattress Firm sleep easy. Or Mattress Firm sleepies. No. This is called Mattress Firm. They make soft and firm mattresses. The whole thing is confusing. Quarterly loss 10 cents a share. Six cents wider than expectations. Weaker than expected fullyear guidance in part because of costs related to rebranding some of the stores that it had acquired. Applied materials announced a new 2 billion Share Repurchase program replacing a recentlycompleted 3 billion Share Repurchase. What is she saying . Want to talk about crude oil . Crude oil prices snapping a threeday rally after hitting a high for the year. Wti crude now up nearly 40 this year. This was the trade of the year, people, right . If you had been in on this three months ago. Joining us to talk about where prices are headed. Matt smith director of commodity research. Great to see you live and in person and in a vest. Thank you. Doublebreasted vest. Its a first for me. Thank you. It is . Yes. Doublebreasted. Yes. Its lovely. Thank you. This was a great trade three months ago. Is it still a great trade . No. Weve rallied on three things. The weaker dollar. Also, this production freeze talk coming through from opec. And finally we are at the record short positions and we saw them unwound. Rallied up to 50. I think the market is missing something in terms of china. So china sis importing to much crude, about a Million Barrels a day more than theyre actually consuming. So what theyve done that is because . They are stockpiling and theyve gone in the february lows and just bought as much as they possibly can. Mmhmm. The trouble is, we are 150 days into the year, or so, and theyve stockpiled about 135 Million Barrels. And so, at some point these imports have to drop off a cliff because even the most optimistic estimates are saying there is only like 155 Million Barrels of capacity to fill. So, when this happens, youre the Tipping Point is when . When do they stop buying . In theory in theory they should stop now. 20 or 30 days when the most optimistic estimate is hit. That will be a Million Barrels on the market each day that has not been sending the price to where . Probably back down towards 40. In combination with the fact that you have opec too. You have saudi. You have iran. You have iraq. They are exporting two Million Barrels a day more than they were this time last year. So you have saudi arabia yeartodate exporting 725,000 barrels a day more. Iran, theyre walking the walk, talking the talk, up to two and a half Million Barrels a day. Thats more than double can we go back into the 30s . Is that realistic . It is realistic. There is a demand response over the last year or so. Even if we have one and a half Million Barrels a day of growth coming through from demand, there is still so much oil out there. And youve also seen the production response in the u. S. As well. What if a farleft candidate were elected here in the United States, and lets say all the, you know, the Climate Change alarmism becomes policy, i mean, so they dont want to frac, right . New york state we cant frac. To your detriment. I agree. But what would happen if i dont know if the candidates on the left ever really plan theyre in an election season where theyre saying things to its not necessarily going to be acted on. Pragmatism usually takes over once theyre in a position of power. What if they really followed through on the policy that totally cut back on Hydrocarbon Development . Where would oil go . What would happen . I think in terms of the balance, shifting away from oil, i just dont see it really happening, you know. It has to happen according to these people. It has to. The planet depends on it happening. It will happen as technology develops but it wont happen in the next few years. The price of alternatives has to someday become competitive to natural gas and oil which are the best deals in town right now. Look what happened to coal. They can do it if they want to. It is happening already in california in terms of theyre producing so many renewables that the electricity is free and theyre looking to push it into other states. Youre already seeing that in germany as well. So we are getting to that point. In the midwest they have so much wind power its bringing electricity down towards zero. In terms of the hydrocarbon front we still consume 20 Million Barrels a day here. There wont be a switch away from that. Those boat rides to europe take a long time, andrew. They do. If youre not in the jets with the big carbon foot prints. Theyre not really yachts. No. You saw where leo had to stay. Stinking. What do they call it . The third class all the way down. All the way down. Hes talking about the titanic. Steerage. With the luggage. Using a suitcase for a pillow. Thanks. Appreciate it. When we come back, the tinder party is over at least for underage users. Well tell you how the dating app is shaking up the rules on its platform. One man only needed a blue shirt to steal 16,000 worth of iphones. That story next. Squawk box will be right back. 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. Okay. Online dating, folks. Tinder swiping left on teenagers. The dating app shutting down its platform for those that are under the age of 18. At least those who claim theyre 18. Tinder previously let those between 13 and 17 before she was over 18 . Did that girl swear she was over 18 to you . Not, not no. I dont there is no you have an experience with it . Do kids lie . Oh, they lie all the time. They lie all the time. I have no personal experience. Tinder previously allowed those 13 and 17 be matched with those in the same age group. Really . Kids on tinder . Are you kidding me . Its news to me. I know. 13, 14 . Is there any cutoff . This goes to also facebook. How old should you be to be on facebook . You should be monitored by your parents. In california now you have to be 21 to buy Tobacco Products unless you are in the military. Then you can be 18. They couldnt get around, if youre old enough to die for your country you are allowed to smoke a few cigarettes on the way. Otherwise you have to be 21. I didnt know, you know, the tinder thing. So swimming left means i forget. One way you throw them out. Swipe left, you get rid of them, you dont want them. It if youre interested you swipe right. Good news. Were for that, then. I cant imagine. Kids 15 on tinder. 13. 13 to 17. Man dressed as an Apple Store Employee walked off with 16,000 worth of iphones from the companys new york city soho location this week. He was wearing a shirt similar to the ones employees wear and managed to make it out of the store with 19 iphones. They used to wear new shirts for every Product Launch but last year made a switch to the permanent blue shirts. The king of burritos has been dethroned according to the latest harris poll measuring how consumers feel about restaurant brands. Mows southwest grill unseated chipotle as the most popular mexican chains. Mows have less than half the locations than chipotle. Im willing to try one. Ive never been to one. You wonder why at this point in time. I dont. Route 17 in peramus. 650 restaurants versus 1900. Chipotle now ranks behind taco bell, qudoba and baja fresh. Thats what happens. Coming up, is it over now for Bernie Sanders . He was being nice yesterday. He was. After walking out of the oval office he sounded like he was all on board. The president ial candidate vowing to take his fight to the last primary but also pledging to help Hillary Clinton fight drochl. Larry sabato. He joins us after the break on the latest for the race for the white house. The economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. Like in rochester, with worldclass botox. And in buffalo, where medicine meets the future. Let us help grow your companys tomorrow today at business. Ny. Gov dont you dare look back, just keep your eyes on me. I said youre holding back. She said shut up and dance with me among the stories front and center at this hour, yahoo in the process of evaluating the latest round of offers for its core internet assets. Cnbcs david faber reported yesterday that verizon was actually outbid by at t. Yahoo reportedly set to put together a new short list of final bidders and will solicit binding offers from that list. Also, instagram attracting more social media ad campaigns than twitter. Thats according to a survey from strata, a unit of our Parent Company comcast. The first time the facebook unit surpassed twitter in that category. In yet another sign of possible trouble for the company. Japans biggest ipo of 2016 debutin debuts next month. Line. Current projections valuing the company at 5. 5 billion. Hacking in america . Wendys says its found a second type of Malicious Software at payment terminals. The fastfood chain warns the number of locations affected will be significantly higher than the 300 previously reported. Wendys first launched an investigation in january after learning about fraudulent charges on some credit cards that had been legitimately used at some of its locations. There are currently lawsuits against the Company Seeking classaction status. Can i just add this is why you never should use your debit card or never input your pin number. If its a debit credit card use it as a credit card because then its not your fault, your problem and you havent inserted your pin number and given them your pin number. I get mad at people that are you know, is cash nobody under 40 uses cash . I dont carry any cash. Zero cash. You usually have about 200 but not always. Zero. Wendys, for gods sake . I think, if you were to catch me most moments in the last two or three years, totally cashless. Fastfood place . Use a credit card. Its fast. Now slower because the pin. You have to put the card in, wait. Now they often ask for the pin. Dont give them your pin number. Tell them to use it like a credit card. Cheaper a lot of times if you say cash. See . You are a coupon clipping, im not buying gold because it was up and im going to get two pennies back for every penny i spend. You call me a cheap skate. You are getting cheaper. Not as far as you know. [ laughing ] i dont think youve actually heard me. Or have you . Have you heard me call you a cheapskate . Sure. Never mind, then. I didnt know you had actually heard me. Im sure we have videotape of it. Check this out. Power outage at an Amusement Park outside of charlotte leaving riders stuck up in the air. Cellphone video showing the wind seeker swing ride with 32, twoseat passenger seats on a 300foot tower. Stuck there for a while. A local tv station reports people stuck in the air for over an hour. People were also stranded on two other rides before being rescued. No reports of injuries, so it all ended well. Squawk sports news. Paris is gearing up to host soccer fans to watch the first match in the European Championship in that soccer tournament. France will take on romania tonight. And what do you think immediately . Its first just reading it. I am thinking first thing this morning. Paris police chief and Frances National rail company are advising paris area commuters to go home early to avoid helping clogging the capitals strikehit rail network. I was also thinking about that was a soccer game last soccer match before one thing i heard this morning is they think they can keep things secure but the police are tired because the seine hasnt completely gone down and the striking garbage workers. Now you worry about not on the plane. People waiting in line to get on the plane, to get through security. Not people in the stadium. The lines generated as people are getting checked to go into the stadium. Huge crowds there. There is a park where theyre setting up for like 90,000 people who cant get tickets. Cant ever get completely ahead of it. To harden up soft targets. Its very, very difficult. Hopefully fingers crossed. Meantime, hollywood movies. Jennifer lawrence and adam mckay teaming up for a movie about theranos. Lawrence set to play Elizabeth Holmes. There is no script. Mckay best known for last years financial drama the big short, which won the oscar for best adapted screenplay. Fair warning. This is still in development. Is she a protagonist or a villain . We have to see. They havent decided. We wont see it on the Silver Screen for at least another few years. Maybe its one of the movies where youre not really sure. Those are the best. Hero and antihero in the same person. Same person. Okay. Now i have to say my next two words are president obama. There you go. Depends on wouho you talk to. President obama officially endorsing Hillary Clinton. In response donald trump tweeting obama endorsed crooked hillary. He wants four more years of obama but nobody else does. Clinton fired back a tweet of her own. This is great. She used the word delete. Delete your account. Someone messed up. That led to another tweet by reince priebus, chairman of the rnc saying, if anybody knows how to use a delete key, it is you. Our next guest forecasting a long, hot political summer. Larry sabato founder and director of the university of Virginia Center for politics and a wellknown commentator. I mean, not for nothing, larry. Who knows what the next five months brings. But good time to be a political commentator. Is it not . Absolutely. Lots going on. I mean, things that are somewhat unprecedented, dont you think . Maybe other countries have had have been down this far in the muck. We shouldnt we shouldnt constantly be saying, oh my god, i am shocked by whats happening. Should we . Its an unorthodox campaign. I want to put it as positively as i can. I have followed this really all my adult lifetime and there has never been a Campaign Like this. We have never had candidates like this. One in particular. I dont know. I think you can throw both of them into that mix, larry. I dont know which one you were talking to. Just to be objective, i think youre safe. Both have 60 negative ratings. Close to it. How does how does anyone win a majority if youve got both candidates have 60 and how did we get here . Whats wrong with the nominating process . A lot of people dont want to run anymore, and some of the good people who run dont have the money to run and to win. You can analyze it six ways to sunday, but we are where we are and whatever happens on the thirdparty front were going to get one of the two Major Party Nominees obviously elected president. So what will be i mean, the next theres going to be some interesting things leading up to the two conventions, which will be interesting in their own right, in the first time for i dont know how long. Who is going to pick the veep first, do you think, and what are the different dynamics in both camps . Trump says hes going to pick his veep at the convention. And it makes sense because he is a showman, and he knows you have to build drama to build an audience for a show. And he wants to turn the convention into a show that actually attracts a very large audience. So you would save the vice presidency for the convention. Hillary clinton, on the other hand, is very process oriented. So she has a very detailed process for selecting vp. She would be inclined to pick the vp ahead of the convention. Personally i think its foolish because she has got the great advantage of having the second convention. She can react to Donald Trumps choice with her own choice in having that second convention. She may forfeit that if she decides to pick early. I dont know whether she would even want to be seen as reacting to something that he is doing as an answer either. Figures might be better if she thinks she is the leading candidate and sort of has it to lose she would want to dictate her own choice, i would think, not be swayed by a reaction to the other guy. Probably. Probably. I still think its useful to have, as you guys know because you cover the markets. Its always important to have as much good information as possible before making a big decision. Knowing who trumps vp is is kind of a big piece of important information. So weve got most of the endorsements on the democratic side out of the way. Donald trump used the teleprompter now. I would figure, not that thats a bad thing necessarily. I would figure that he he may have gotten a little bit of religion with five months left. Is there is there fluidity still in the middle . Because lets say youve got 40 and 40 totally solid. You know . 40 totally solid for hoiilla. 40 totally solid for trump. Is the last 20 swayable . I dont think its nearly as high as 20. Look, we live in a very polarized era. Again, i have never personally seen i would say its more like four to six. Thats where we usually peg the number of independents, despite what gallup says. The hardcore independents who actually vote may be 4 to 6 . Everybody else is either openly for a candidate in a party or they are what we call hidden partisans. They dont tell you who theyre for but deep down theyre for somebody. You are talking about a relatively small percentage, especially in a year like this. These two are incredibly polarizing. Right. And then you have got, on the republican side, you cant trump cant count on all the republicans, but he might be able to count on some of the populisttype democrats that dont like hillary for whatever reason. And there are some. And so he could draw some from the from the other side, from that side, and then youve got all these these nevertrump republicans. Who knows what theyre going to do, whether they stay home or behind the curtain whether they vote for Hillary Clinton. Larry, do you or libertarian. Right. Then the libertarian, he seems to draw more from Hillary Clinton than he does from trump because trump has gone ahead in some of those. Its crazy. I guess what what really is a wild card too, is there any way that the general that all the polls and all the pundits can be as wrong about trump as they o were in the primary . Jeb bush got 4 or 5 . Talk about obama said hillary is the most qualified. I dont know who is the most qualified but jeb bush was a hell of a candidate. 4 to 5 versus ten times that much almost for trump. How can we possibly know about the general . Well, there is a reason why general elections can be more predictable and usually are more predictable than primaries. Even though we think of these millions of people turning out for primaries and caucuses as being significant, and its a significant number, but its tiny its a pond of voters compared to the ocean in the general election. Trump and hillary each got maybe 14 million, 15 million votesment sounds like a lot of votes in the primaries. 135 Million People will turn out for the november election, and they tend to respond to the same factors every four years, the popularity of the incumbent president , what they think about the incumbent president and his party, the state of the economy, whats happening in foreign affairs, particularly if Something Big is going on. Big scandals. These are the same factors that pretty much produce every president ial result. Though weve been wrong with the polling data. There is a story out today from the New York Times suggesting that weve just been off. We have been lazy and used polling data and that is not reflective of whats really been happening with some of these actual elections. Yeah. I read that. I have, you know, contrary reactions to it. Everything is wrong. All that data is wrong. The Census Bureau numbers are wrong. The other thing the author cites are wrong too. You dont just rely on exit polls. But you dont rely necessarily on the numbers he cites either. You in virginia right now . Is that i am in virginia. I am at the university of virginia in lovely charlottesville. Love it down there. Got a bunch of felons voting. Got that squared away yet . Are they sending the applications right into death row on some of those or not . Whats going to happen with your boy terry . Is he going to be all right . Well, i dont know about the fbi. The felon thing. So far about 7,000 have actually registered to vote. The number is much smaller than the ones you have seen. I dont think it will be significant one way or the other. Too bad. That was the whole point, though, wasnt it . Anyway. Thanks, larry. See you later. When we come back well tap the ceo of moulson coors and talk about the business of beer. The stock up 40 over the last year. Can the big brewer keep investors busy for more. Well find out after the break. Through small things, big things, and spur of the moment things. Because my teeth are yellow. These photos . Why dont you use a whitening toothpaste . Im afraid its bad for my teeth. Try crest 3d white. Crest 3d White Diamond strong toothpaste and rinse. Gently whiten. And fortify weak spots. Use together for 2 times stronger enamel. Crest 3d white. Sabato. Jie investors toasting molson coors. Trading at alltime highs and working to close a 12 billion deal to finally get full control of miller coors from sab. Mark hunt on the set. Ceo of molson coors. I have seen america beer for bu budweiser, no longer head quartered in the United States. Arent you the only brewer located in the United States. There are five stocks trading on the New York Stock Exchange that can trace history back to the new york acoustics founded in 1972. The moulson story goes back to 1876. Coors was founded in 1873. The dna of craft brewing is in our heritage. I wonder if people know the king of beers and america and budweiser is not headquartered in the United States. Public has no idea. Thats a fact. Were interested in our history and the future were creating for ourselves and were excited about the transformation we have coming up in hopefully the relatively near future. Where do we stand demographically with what young people are drinking . Where is beer . Is it back . Is it going back out . Is it rebounding . Is it on the decline . Beer, when you look at alcoholic beverages is still the biggest part of alcoholic beverages. Actually the renaissance in beer over the last decade with interest in flavors and styles and provenance has been a good thing for the beer industry. Actually, drinkers are choosing slightly more expensive drinks and slightly more expensive beers. Theyre trading into imports and craft and wellinvested local brands as well. Brands like coors banquet has been growing for the last ten years now. How about miller versus miller lite . Is miller rejuvenated . That was a brand that was kind of it had fallen out of is it more light now . Miller lite certainly in the last two years has really bounced back strongly. We have i think rediscovered the magic behind the brand. The originallite beer, put it back in its original packaging. The brand has come back strong. Where will the innovation be . In aluminum cans to keep things cold, longnecks or on craft something thats different than we have a broad portfolio. So we have to be across the waterfront. You mention aluminum cans. Bill coors who is the grandson of the founder, he is 100 this year, he still tastes the beers every month at 100. He says they dont pay me much and i cant see or hear much but i know if the beer is good. The stock has been on a tear. What do you attribute it to . Management. Performance. How wonderful we really are. Its moved materially. Its our performance and the potential of the transformation. When we close this deal our business will double from a topline and a bottomline perspective and our beers will be available in over 70 countries around the world. How much more consolidation can and will happen in this business . Are we sort of now up against it . Consolidation has been part of the evolution of the beer industry. Im sure there will be more to come. Clearly its become more consolidated so it will become tougher. I think it will still very much be a part of the future. Were focused on bringing home the transaction and doubling the size of our business. You know that high heel is going to be introduced pretty soon. I have heard of this, yes. For women. Beer just for women called high heel, made by a master brewer named christy mcguire. Hasnt worked in the past, targeting the ladies with beer necessarily. I think when brewers get really overt and really explicit what tends to happen is that people kind of see that coming, women can see that coming. The great news is that more women are drinking more beer than we have seen for a long time. I think the explosion in choice has really helped there. I am not sure you need to be so soda stream is it going to make beer too. They stopped doing the cold drinks in the past couple of days. Do you think this is real . Potentially, yeah. We are all looking for opportunities to tap into new occasions. Looking for opportunities for people to enjoy beer. Thats the great thing about leading a beer business. Its so fundamental for people. Very good, mark. Where are you from . Theres beer over there. Nice. Play at st. Andrews . I have. Im more of a football or soccer fan as you guys would say. Excited about the euros coming up. Football is oblong. You just misspoke, i guess. When we come back, todays stocks to watch. Stay tuned. You are watching squawk box on cnbc. First in business worldwide. What are you doing . Getting faster. Huh . Detecting threats faster, responding faster, recovering faster. When your securitys built in not just bolted on, and you protect the data and not just the perimeter, you get faster. Wow, speed kills. Systems open to all, but closed to intruders. Trusted by 8 of 10 of the Worlds Largest banks. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Couple features. Individual names in the news. H r block reported quarterly profit of 3. 16 a share, a penny ahead of stimestimates. A 10 Dividend Increase at 22 cents a share. It is the nations largest tax preparation firm. It said it would focus on stemming client losses and lower its expenses. Shares have not fared well this year. Amazon. Com was rated outperform in new coverage. At William Blair. Something about the company attractive to William Blair at this point. The firm says its rate something primarily due to potential growth of the companys Amazon Web Services business. I think he also had a note yesterday taking down some of the traditional retailers because of amazons increasing gains in ecommerce, drawing more people. Its the market cap now. Now that theyve decided to begin coverage on, oh, amazon. 343. Forego the first 343 billion of wealth generation. Theyre going to get on here. When we come back, robust house flipping. Millennials renting habits and the return of low down payment mortgages. Have the seeds of the next housing bubble already been planted . We have a debate with two ex pe experts next. Dow futures down by 90 points this morning, the weakest we have seen all week. S p futures down 13. Nasdaq down by 32. Squawk box will be right back. Global market alert. Oil prices dropping. Bond yields falling and Global Equities are selling off. Whats happening . The race for the white house. Hillary clinton and donald trump on a collision course. The issues, the tweets, and the fight for america. Former governors jud greg and Bill Richardson join us to debate. Is a bubble brewing a new flood of flippers . The return of lowrent payment mortgages. Well raise the roof on the Real Estate Market 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 and andrew ross sorkin. Were less than 90 minutes away from the opening bell, but only 60 minutes away from the weekend for some people. The futures right now are indicated yuck down 91. Still not triple digits. The market almost as if the jobs number first it went down, remember, because it was a crummy number. Then up a little bit. Makes you think we are not getting a lot of bang for the buck about staying at zero. You have to wait and see what happens next week and with brexit. They cant raise rates because were questioning whether they can get to the point where they can raise rates. It would be a problem if they dont get to that point ever. European markets and oil prices on the screen now. Looking at down arrows across the board. 2 across the board. Some of todays top stories. Tesla saying there are no safety defects with the suspensions of model s or x and that government officials have not opened a formal probe. Officials have asked for information about the suspensions. Yahoo in the middle of a process of evaluating its latest round of offers for its core internet assets. Good friend david faber reported yesterday that verizon, which many had thought would be the final bid, might actually have been outbid in this case by at t. Yahoo reportedly set to put together a new short list of bidders to solicit binding offers, final bids. Well see where that all ends up. Just one economic number on the calendar today. University of michigan comes out with its midjune Consumer Sentiment index at 10 00 eastern time. Its expected to fall slightly from the last reading. Stocks to watch. Dow chemical and dupont scheduled meetings to hold shareholder votes on the planned merger. Both companies will hold meetings on july 20th. They announced the merger in december and see the deal closing in the second half of the year sometime. Mobile eye and Delphi Automotive rated overweight by piper jaffray. They have the best chance to benefit from the increasing use of technology in the auto industry. Fears bulk up that the Housing Market could be headed back to the bubble. The frothy wave of new flippers and low down payment mortgages have made their way back into the market. A reality check with diana olick. Reporter andrew, the Housing Market has put out a lot of mixed signals this spring. On one hand there is solid, Strong Demand for housing, both buying and renting. You have the largest generation coming of age. The second largest generation downsizing or moving to retirement. And Mortgage Rates stuck near record lows. All good things. Why are sales well below normal and prices going through the roof again . No supply. Buildings are ramping up but mostly on the luxury apartment side. Singlefamily Housing Starts are rising but meekly, 1. 2 million homes a here year is the histor norm. Were still building only around 780,000 for this year. Sellers, 4 million still stuck in place, under water on their mortgages. In fact, 18 of all homeowners with a mortgage have less than 20 equity. Theyre not ready to sell. Flippers, yes, they are back with a vengeance to take advantage of all the rising prices. But theyre allcash buyers, pushing the regular buyer out, creating even more upward pressure on home prices. Yes, millennials, as i said, theyre getting ready to buy the homes, theyre getting to the buying age. But again, far too few of them can afford it. Back to you guys. Thank you. Is there another housing crisis looming . Joining us right now to talk more about it is ethan penner. He is managing partner with m Mosaic Real Estate Investors and sherry oy lickson founder with the carnegie group. Are we getting to the point where you gete concerned about whats happening with pricing and availability . I think pricing is an issue for sure. I think pricing will stimulate more building. I dont worry about a crash, you know. A bubble we are clearly at very high pricing by historical standards, but thats true of every financial asset. In my mind its more a reflection of Interest Rate policy than anything else. I think that, for a crash to occur, as occurred in the 08 period. It was really rooted in many, many, many borrowers not being able to afford the mortgage they took out, and then having those mortgages leveraged systemically in amazing ways through securitization. What about the securitization in particular . You know about this with commercial Mortgage Backed securities that you helped to create. What went wrong with the securitization process . And could we get to that point again . We have no signs of that. The last since the crash, the securitization of Residential Mortgages on the private label side, which is nonfanny or freddie, has been virtually nil. Thats obviously the opposite of what was the case leading up to the crash. Its not securitization per se that made led to the crash. Its a combination of first the raw material, the loans that were included in securitizations were bad loans. And so first you have to have loans that go into default, which were kind of included in securitizations precrash in an abundant amount. Then you had kind of synthetics created off the securitizations in the cdos and the cdos squared. There was a completely different world leading up to 08 than leading up to today. Sherry, what about you . When you look around and look at the industry, you are concerned about high prices as well. Where does that lead you . Clearly we look at prices and other fundamentals when trying to evaluate whether or not there is a bubble. The thing is, in some markets we are seeing that. Overall prices are up 5 to 6 a year. Some markets, though, portland, western cities, 10 or 11 . Clearly thats a problem but we have to look at it in the context of other fundamentals like wages. Wages up 2 to 3 a year. Thats where the real problem comes in. With loans we are seeing popculture indications like the quicken rocket loans or fast loans, but the rules that were put in place under doddfrank, specifically the qualified mortgage rules which prevent certain risky features that caused the bubble like the teaser rates, negative amortization. The no down payments. No documentation. Right. No documentation of income verification. What ethan was talking about is addressed with the qualified mortgage residential rules. Why do you throw the quicken Rocket Mortgage loan . I signed up for one recently, and i had to prove my income. Its more about the attitude. Thats one of the things we dont talk about when we talk about bubbles. We talk about easy money, prices, we talk about speculation, which is a big issue and whether we are seeing investors or not. Thats a big difference. The investors were seeing now, the flippers, are actually selling to reallive people. In the bubble there were no reallive people. We dont talk about american attitudes, which was the subject of my first book, thats changed. We have removed the stigma associated with foreclosures. Its a business strategy. We have someone running for president who says business bankruptcy is a strategy. When americans look at housing as something to speculate on thats the biggest indicator in the modern housing world of a bubble. Ethan, lets talk about the foreclosure process. I have heard recently from people in the industry that foreclosures are picking up in states where theyd been slow before. Is that a good thing or a bad thing . Again, i dont think its a thing, per se, meaning i think that i just dont i dont see things problematic today nationwide. I understand the attitude issue that was just discussed. But i think speculative orientations exist in every market all the time. I do think, in the end. Its easy money, right, that determines whether those speculative inclinations are fulfilled or not. Whether things get out of hand. There have not been fulfilled since the crisis. And i dont see any signs today that are troublesome. Is that because you think the regulation has worked and prevented some of those things from happening . I think that its a combination of postcrisis borrower fatigue. I think its Lessons Learned about excesses both from a lender and a borrower perspective. I think its or different ideas about home ownership. I think it is a combination of all those things. I think household formation for the 18 to 35yearold set has been extraordinarily slow to come about. There are a lot of reasons that i think have come together to kind of make things, in my mind, not dangerous. I do recognize the fact that prices are very high in affordability in many cities is now not very good. But i think thats been a trend going on for quite some time where more and more. Look at new york. Thats where you guys are and i am from. The percentage of peoples money thats spent on housing has creeped steadily higher for decades now. Sherry, thats a good point. We have learned our lesson, the riskiness of this reason. People will be watching for all the signs that happened last time. There were so many sort of interwoven issues on a global basis where the contamination was really spread. I think ethans example of new york is a great example. I think were living in a different world where globalization really matters. We havent revised the indicators and certainly the fed has not revised the tools to deal with the new realities. Here in new york, as an example, we had the Global Economy fueling our highend markets. And these uberluxury condos. I have been looking at condos not far from here, and the prices are going down. One particular property we have been looking at over the last two months, i can buy it for a quarter Million Dollars less than it would have been two months ago. Thats symbolic of how bubbles in this market may correct themselves. But for entrylevel housing we may be throwing the terms crash and bubble around too loosely. Those are price corrections. Dont you think the new york city market is substantially different yes. By the way. New condo . Existing condo. Its a coop. Prewar . Post war . Prewar coop. Andrew is in the market. Those are types of global influencers that are impacting our market today and that were feeling the bubble. We had a lot of Foreign Investment because of the exchange rates, other factors and the United States being a safe place for investment. Not so much anymore. It will remain to be seen in terms of who wins the next election and housing. The issue is affordability for the entrylevel homeowners. The homes are not affordable. And also we have wall street now in the market as building a rental market. Theyre securititizing rental properties and becoming a big owner of the properties, driving rental rates up. Thank you both for coming in. When we come back well talk real estate. When we come back, donald trump and Hillary Clinton headed for a collision course in november. Two former governors join us to debate the issues on the campaign trail. Bill richardson and judd gregg. Youre watching squawk box here on cnbc. First in business worldwide. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Something well show you. Through small things, big things, and spur of the moment things. Welcome back to squawk box. Take a look at futures. We look like were going to open down perhaps in a big way. Dow could open off 88 points. Nasdaq looks to open 31 points down. S p 500 looking to open off 13. 5 points. When we come back, well remember a Silicon Valley legend. Tom perkins passing away. Well talk to his biographer david kaplan next on squawk box. No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. As long as you love me, its alright bend me shape me, any way you want me. Shape the best sleep of your life. Sleep number beds with Sleepiq Technology adjust any way you want it. The bed that moves you. Only at a sleep number store. Thomas perkins, a legendary Venture Capitalist in Silicon Valley has died at the age of 84 years old. He cofounded Kleiner Perkins in 1972 creating some of the most Successful Tech Companies in the world. Josh lipton joins us from francisco with more on his life and legacy. Josh. Well, andrew, he is described by his colleagues on sand hill road as one of the god fathers of the Venture Capital industry. Thomas perkins was a true pioneer, developing the very model of the modern vc. In a statement to cnbc, Kleiner Perkins saying he defined what we know of today as entrepreneurial Venture Capital by going beyond funding to helping entrepreneurs realize visions with operating expertise. He was there at the start of bioTech Industry and computer revolution. He was our partner and friend and we will miss him. Perkins is credited with recruiting Silicon Valley hall of famers to Kleiner Perkins like john dougher. Leading to developments in Companies Like amazon and google. His career wasnt without controversy. In 2014 he wrote a letter to the wall street journal saying writing from the epicenter of progressive thought, san francisco, i would call attention to the parallels of fascist nazi germany to its war on its 1 , namely the jews, to the progressive war on the american 1 , namely the rich. The crude comparison left to swift criticism from the Tech Industry including mark andreson. How does Silicon Valley ultimately remember Thomas Perkins . Were told perkins did make mistakes but should be remembered for the v. C. Industry he helped to create, the Great Success he spearheaded for his firm, his investors and the companies he helped to fund and lead. Back to you. Thank you, josh, for that really sort of beautiful obituary. Joining us now to talk more about this, david kaplan, the author of mines bigger, a biography about tom perkins. David, how do you think perkins should be remembered . I think hell be remembered in the pantheon in the history of Silicon Valley along with hewlett and packard. Gord moore. Andy grove and steve jobs and others. Some of the stupid and silly things he said in recent years are so, but they shouldnt be confused with his role in the valley over 50 years and its importance. You just listed a number of people who all would be described not just as entrepreneurs but true innovators, people who created something from scratch. Clearly he did too in the Venture Capital community. Didnt necessarily build technologies themselves. How do you compare that . The various companies that we could mention, intel. Apple and so forth, were singletons. They were oneoffs, obviously important. But perkins, as a Venture Capitalist, was the center of many different spokes. And but for him, genen tech probably wouldnt have happened. He went out and looked for young academics who may be stuck in the long process of getting stuff done in academia and who might be looking for a small investment and in turn changed the world. 100,000 is all he put in with gene cliner early on. That became guenin tech. He repeated that formula in compaq and other companies. Others had backed young entrepreneurs in the valley but it was really perkins along with kleiner who institutionalized the idea of Venture Capital. Can you explain his relationship with the firm towards the end of his life. It seemed to be more complicated than it was obviously earlier on. Well, perkins retired in the mid 90s, largely because his first wife was dying and then died. He had other projects. Sailboats. He wanted to pursue. So long before he became controversial, he and he had become a limited partner at kleiner. He was on the board and sat in on important decisions. Only in the last four years when he started unfortunately to speak his mind on stuff he didnt know a whole lot about did the firm distance itself from him. And had to. The things he said were indefensible. David, we want to appreciate your perspective this morning. Thank you for calling in. Glad to be here. Thanks. Coming up, the battle for the white house heating up. Hillary clinton getting a trifecta of endorsements and donald trump slipping behind the democratic nominee in national polls. Well talk politics next. Look at u. S. Equity futures as we head to break. Polls. Here it goes again, oh, here it goes again welcome back to squawk box, everybody. Here is whats making headlines this morning. Well be getting the latest data on Consumer Sentiment in about 90 minutes. University of michigans midjune reading expected to come in at 93. 5. Down from the 94. 7 at the end of may. Medtronic won a favorable decision in a 1. 4 billion dispute with the irs involving the puerto rico subsidiary centering on how much of the device makers product should be taxed at puerto ricos lower rates and how much at u. S. s higher rates. Check out the yield on germanys ten year bund. Dipping below 0. 03 , sitting at 0. 028 . These are crazy yields. Theyve been under massive pressure since our jobs report last week which kind of indicated that the fed was not going to be raising rates next week at its meeting. If you look at the tenyear yields in japan and the u. K. Also setting record lows today. Again, that there is no alternative investment strategy. Hillary clinton picking up trifecta of endorsements in the last 24 hours. President obama, Vice President joe biden and Elizabeth Warren all backing the Presumptive Democratic nominee. This is new developments hit the front pages in her the email investigation. And on the republican side, a week of controversy taking a toll on Donald Trumps polling numbers. The gop nominee slipping behind Hillary Clinton in a new fox news poll. Is a redhot summer of rhetoric on the horizon . That would be yes. Joining us now. Former u. S. Senator judd gregg and we hope former new mexico governor Bill Richardson will join us in a moment. Judd, good to see you. Thank you. I want to start with great. Yep. Good to see you. What was the first thing i wanted to start with you . Yeah. So all right. The way i read those endorsements, you had the same feeling. I made a joke earlier that maybe it was a surprise that that the president didnt endorse someone from the same party, the socialist party. But i think we knew the president. He wants his legacy to go forward with should we put commentary at the bottom . You should. You should. Andrew seemed to be getting agitated over there. It was a joke it was a joke, right . Not big endorsements from yesterday but what are you expecting lets go to the next two weeks . What will we see . Well, i think the big issue is not the president s endorsement which as you say was absolutely expected or the fact that Elizabeth Warren endorsed hillary. She is an academic socialist. Thats where the party seems to be headed. Its the issue of how they deal with bernie. And the fact that theyre making a big push to take bernies agenda and make it the agenda of the Democratic Party. That means the party is lurching very far to the left and moving away from the concept that a America Economy makes america strong and toward the concept that a french type of economy will make america strong. This will be at the center of the debate going into the fall. You are wondering how they move back and whether the democratic whether the no. I dont think they do move back. I dont think they do move back. I think theyre going to pick a democratic Vice President in order to satisfy the berniewarren wing of the party. That means theyll move further to the left and basically solidify the position of the socialist movement within the Democratic Party. I mean, bernie is a socialist. Judd he has only recently become a democrat. Judd, what would that be . Elizabeth warren seems to be at the top of the list. Of course, that would be an interesting choice. And i suspect a very positive choice within the democratic rank and file. She clearly is she is actually to the left of bernie, in my opinion. She is, yeah. Its going to be somebody of that approach to governance. I have a hard time seeing Hillary Clinton choosing Elizabeth Warren. Who else would fit into the mold . There are a pum couple of pe who are liberal and progressive. Sherrod brown. He is very liberal and could fall into the progressive arena. I think he might be a very good choice. He would be a constructive choice in my opinion. I know you are supporting donald trump, but i am what i dont know is whether youre supporting donald trump because you like donald trump or because you hate Hillary Clinton. Help us with that. Actually are you supportive of the things that he said about the judge this week . Oh, absolutely not. That was inexcusable. What about what he said about john mccain . That was unexcusable too. To actually we can make a list. He said that eight months ago. You defined my position incorrectly. Im trying to understand the thinking. Wait a minute. There were a couple other good ones there too. Lets focus on the what about what he said about john mccain, senator . Go ahead, im kidding. Im not going to get into that type of a contest. I actually havent committed to donald trump. Right. He hasnt. I am one of the folks in america who is looking at both candidates and sort of shaking their head. What id like to see from donald trump is some recognition that he is now the leader of one of the two major parties of our nation and he may well be president of the United States and he needs to put forward a persona thats substantive and rational. Hopefully that will evolve. If he were to stick with the conce current persona would you be supportive . No. Basically he has been far too erratic, and on complex issues of substance he has been superficial. He has to evolve. People do evolve in this business. When you go from running in a primary in your within your party to being running in a national election, youre speaking to an entirely different electorate. I think you have to change your tone to resonate with the American People generally, not just with a faction of the party. Lets get back to the defense or the prosecutor. Ill ask this question because i have to. Is there any way Hillary Clinton could ever evolve into a candidate that you would support . No. Okay. I mean, basically she she basically so trump could evolve but Hillary Clinton could in no way ever evolve. So trump could evolve we as a nation right. The strength of our nation is our is the capacity to give people the opportunity to do better, and you dont have that in an economy totally dominated by the government, a progressive economy or socialist economy. Thats just not going to happen. We have moved so far left under this administration that a continuation in that direction i think will undermine our impa e capacity to be prosperous and pass on to our kids the opportunity what i dont understand is why you would be convinced that she is actually going to move to the left in this race and bring on Elizabeth Warren when ultimately it sounds like, if she had a centrist style Vice President and potentially policies that arguably were considered centrist before this last election, that people like you wouldnt ultimately go for her . Well, i just dont think thats going to happen. I think the party has basically lurched after the rails of matter capitalism and switched over the french economy. Thats the direction of the party. You see it throughout the representations being put forward in the policies. She just came out for basically a singlepayer system when she suggested everybody should be able to opt into medicare. Thats a major shift in our approach to health care and the economy. Its essentially a socialist approach. Do you think trump could be that bad . Excuse me . You think trump could be that bad . Its a binary choice, judd. Thats the point i am making. It is a binary choice. Youre right. You described the perfect scenario which only leaves you with one option that youre unwilling i guess youre massaging it a little hoping that you can cause some changes in behavior on the republican candidate. Because you just described a binary choice. Its an either or. Its not a deal me a new hand or maybe well change the Convention Rules or Something Like that. I mean what if it was a bicycle versus hillary . What if it was a bicycle versus hillary . Wouldnt you vote for the bicycle . No. Joe, youre right. You have basically hit the nail on the head. I know. But i dont know whether everybody is dancing around that all the time. Im not dancing around it. It leaves you open for wiggle room for people to tell you, you should decide on hillary eventually then. Well, i am not going to be voting for hillary. Okay. Thank you. But if donald trump doesnt become more substantive, thoughtful and directive youll stay home. On his approach, we have problems. Bill richardson was supposed to join us. It wasnt his fault, i dont think. He is back in the fold with the clintons. He was way off. I think so. He said that on our air. For a while he was persona non grata. When we come back well have the mornings biggest stock movers. Stick around. Youre watching squawk box on cnbc. First in business worldwide. Proud of you, son. Ge a manufacturer. Well thats why i dug this out for you. Its your grandpappys hammer and he would have wanted you to have it. It meant a lot to him. Yes, ge makes powerful machines. But ill be writing the code that will allow those machines to share information with each other. Ill be changing the way the world works. interrupting you cant pick it up, can you . Go ahead. He cant lift the hammer. Its okay though youre going to change the world. Hello prashant bhuyan. Cofounder of the Fintech Services startup. Hello watson. Your analysis of social media and conversations on various trading floors, helps us uncover insights. Insights that help investors predict market closes, well before markets close. You know, your analysis has helped us improve our predictive accuracy by over 500 . 550. 2, to be precise, but we can always do better. I like your attitude watson. Welcome back to squawk this morning. Stocks to watch. Amazon. Com rated outperform in new coverage coming from William Blair. The firm saying its rating is primarily due to potential growth for the companys Amazon Web Services business. When we come back, it is a very special day at cnbc. One of our own is celebrating a big anniversary, and we will join the fun when squawk box comes right back. I could get used to this. Now you can. When you lease the 2016 es 350 for 329 a month for 36 months. See your lexus dealer. So we dont have to wad to get clean. T charmin ultra soft gets you clean without the wasteful wadding. It has comfort cushions you can see that are softer. And more absorbent, and you can use up to 4 times less. Enjoy the go with charmin. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive welcome back to squawk box, everybody. Before the break we told you that a very special person here at cnbc is celebrating a major milestone today. Who is it, you ask . Its our very own Joseph Richard kernen. What am i doing . He didnt know. You were looking at your iphone. 25 wonderful and memorable years here at cnbc. Its your anniversary today. Happy anniversary. Actually right now . Its happening right now. I dont think thats Bill Griffiths was a couple of weeks ago. According to hr, this is the day. Who is he . I never had any experiences with anything called an hr. Today is the day. Today is the day. 25 years, my friend. This morning, joe, weve picked a Little Something special out for you. We know how you like things. Listen to this. All eyes are on you today. Here is a look back at some of the fabulous and best moments of the last quarter century. Why didnt i look in rundown. Take a listen. Take a listen. Good morning. Joe kernen. No rest for the weary, as they say. Lets just get rid of this sucker right now. Yeah, baby im allen greenspan, how are you . David, how big does the merger have to be for you to wear a jacket and go up on the set . Joes ragging is fun. It brings out the combativeness in all of us. It gets you go. Unbelievable. I cant believe it. Voila. Good morning look out. Jesus woo, woo, woo now im the bestlooking person on the screen. Joe tries to create those dustups with me. Thats one thing i like about my dear friend joe. Were going to do stocks to watch, but its going to be a bad day today. You want me to wrap . I know. I have to wrap. I like having joe. Its fun. So far, no signs of intelligent life. So far so signs of intelligent life. All right. Just as if i am walking naturally. Walking naturally. So natural. Its so hard. Hard to do that naturally. So i was 11 when i started, which is apparently. Which is so crazy, right. Youre looking good, sir. Congratulations. I tell you one thing. And i always think about hair. But i cant win because i really like the way my hair used to be when it was really full. People didnt believe it back then. I see why, because there was so much. I am doing my own little clinical test right now, as you know, at home, on rogaine. It supposedly doesnt work here. Only back here. It does not work on the temples, where we both are yes. But youre like younger. Im youre six, seven years younger, right. Yep. 25 years. F n. F n was bought by bob wright, jack well. Were not finished celebrating. We have more surprises for you. Hold on. In honor of todays celebration, joe, a friend sends in these wishes. Hi, joe kernen. Happy 25th anniversary, with Business News network. Cnbc, coanchor, morning show squawk box, since the show launched over 20 years ago you have been really, really busy. Well, i decided i would bake you a cake or two to celebrate. We have a wonderful hummingbird cake, a hot milk cake and we even have a sweet potato pie. You want one or all . Let me know. Thats pretty neat. No joke. Here is the cake. She got the cake thats nice. Thank you. Thank you. Thats honestly from martha. She made it for you. She made it. Literally herself. Blow out the candles. Before. Make a wish for the next 25 years. All right. I got it. I got it. There. Im glad they didnt put those ones i dont like things were still here. Exactly. Andrew disappeared. Thats right. [ laughter ] lets get down to the New York Stock Exchange. More friends want to join in on this as well. Jim and carl are both standing by jim, probably the longest you have known him. Well, always been great. Always been nice. Always was welcoming. Boy, my father loved you, joe. We got to have dinner with you. He said, thats the guy. Thats the guy. I love him. You just just be on his right side. Got that right. The operative term is right. You share your politics pretty lock, stock and barrel. Thats true. So generous, joe. As a coworker, as a coanchor. Though we know that, when we play paint ball with you, right, becky, the inner rage he takes the safety off. He is competitive. I will say. We were all playing to kill that day. To this day i dont understand that. She was on the other team, and youre playing paint ball. When you come up to her on the other team what am i supposed to lay down my weapon and surrender to you i had a mark like you burned me with a cigar. I shot you because i was trying to win. You know what, i think gasperino, he may have rubbed off on me. Hes a shark. He is. That might have been it. Can we stop . Really. Dont. Dont stop. Anyway, thank you, jimbo. Congratulations. At least we have kids, guys, and because otherwise you worry about getting old, you do, you worry about the years going by, but if you want to see your children add the years and grow up, theres no thats amazing watching scott and blake grow up. You dont think about their age until these things. I know, carl, you have your two twins not two twins, but saw blake at prom and that hit home to you, didnt it . Yeah. Can i add greatest wedding. Best wedding ever, joe. Jim, yours was not too shabby either. Thank you, but no, i remember yours. I remember mark saying lets go for a smoke. I said i dont smoke. He goes come on, come on. 25 years. 25 years. Well, gentlemen, thank you for this. The celebration is not over. We have one more big surprise for you. On the phone an old friend of the show and idol of yours with us now on the squawk news line. Mystery caller, would you like to wish joe a happy 25th . Good morning, joe, hey, happy 25 years. Man, its unbelievable. And i hear theyre having a huge party at price sale and youre going to throw out the first pitch. This is so exciting. I cant tell you because i remember when you came to the celebrity Golf Tournament up in tahoe and you actually believed you were a celebrity. Yeah, i know that. You made that clear to me. And we ran out of the alphabet. Youre a tlist celebrity. Actually, we got all the way to z, didnt we . But you have said in recent years ive been moving slowly up to like a g or h now. No, no, its a bplus. And with 25 years in the book youre leaning towards the aminus. Im telling you its unbelievable. I never thought youd survive with that hair. Youve done it with your attitude, your intelligence and with excitement actually bring to morning television. I know hairs a sensitive subject. Always got that hat on now. Youve given me the tips for how not to end up look snoop dogg on throwing out that pitch. But thats the only way you make the news. First of all you got to throw it up on the screen. If you do not throw anything else over the catcher, always try to do that. But if you will throw it wild or crazy, youll be on youtube forever. Youll really be a star. J. B. , we have a picture of you and you were one of the first people to meet my daughter too, and you ever see benchs hands . How many baseballs can you do . Eight or nine in one hand. Used to be seven, but i got to hold her when she was a baby and then i got a picture. What a beautiful young girl shes turned out to be. Its just amazing. I love the whole show. I love to watch. Thats nice, man. The golf swing i can do without. You are one of my youre the greatest catcher of alltime in my book. And we had jim palmer on the other day. Do you remember hitting a home run off him i think it was in the third inning of that first game, do you remember that . Probably do. I dont remember them all. 389, joe, its like 25 years of shows, you dont remember them all. Anyway, this is really out of control. But thanks, john. Congratulations. Thank you. Thats really cool of you to call in. I always will. Thanks, bud. When youre a kid and you watch johnny bench and pete good luck throwing out that first pitch, man. Ill with watching. All right. Dont make me nervous. You never get over that feeling the way an 8 or 9 or 10yearold feels about johnny bench. And then get to hang out with him and be friends with him. Yeah, very cool. Thank you. Thank you. Dont stop. Dont. Stop. Please. And we will. And when we come back this mornings biggest movers. Stay tuned youre watching squawk box on cnbc, first in business worldwide. 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Its a great school, but is it the right the one for her . Is this really any better than the one you got last year . If we consolidate suppliers whats the savings there . So should we go with the 467 horsepower . Or is a 423 enough . Good question. You ask a lot of good questions. I think we should move you into our new fund. Ok. Sure. But are you asking enough about how your wealth is managed . Wealth management, at charles schwab. Welcome back everybody. Lets get a check on the markets this morning. The picture has been a bleaker one throughout the morning. In fact, the dow is now looking at triple digits declines. Thats a drop of about 112 points right now. S p futures down by 16 points. Nasdaq off by 38 points. We had been trending softly and slowly higher through most of this week, but you can see there are some concerns as we head towards next week when well be hearing both from the Federal Reserve and be looking at that brexit vote, whether or not britain will vote to remain in the eu. Take a look at europe and things are drastically worse there. The dax is now off by over 2. 5 . You see declines of better than 2 across the board with the cac down by over 2. 1 , similar story with the ftse. If youve been checking out whats been happening, the real story has been the bond markets. If you take a look right now at the german bund, thats the tenyear there, it is now yielding below 0. 03 . 0. 028 is where it stands right now. That is a historic low. Very similar stories for what weve been seeing in japan with the tenyear yield there. First well take a look at the stock markets. The nikkei down by about 0. 4 , china closed. But if you check out whats been happening with the japanese tenyear, thats also at a historic low sitting basically at zero yield at this point. You got to go out three decimal places to see anything. Negative Interest Rates down 0. 003. Check out oil prices, which for the last couple of days had been above 50 this morning giving that back. Down by about 80 cents to 49. 76. If you check out the u. S. Tenyear, all of this is played out by pressuring our yields as well. Tenyear right now yielding 1. 656 . Theres a story about how yesterdays auction attracted the highest demand ever from overseas buyers. That was both for the 30year and for the 10year treasuries, because if youre not getting any yield somewhere else, you want to come here and try to get it. Theres the currency board, dollars up against the euro, down against the yen. And gold prices which joes been watching so closely are up just barely this morning but 1,273 an ounce. Every day. Goes up every day. Waiting for your opportunity. Very nice. Because you threw that in. Because its a good joke, when i made my wish and you said at least both of us didnt disappear. Yeah, she was being she was being nice. She was being generous. So was your wish about something on the set . No. I know you well enough to know what you wished for. I think i know what you wished for. The same thing all of us would wish for whenever we get a chance. Yeah. Because we all know its the only thing that matters. Thats why i want the ularity because i want to be with these people. Congratulations, my friend, 25 years, will see you here monday. Thanks for the warning. Make sure you join us monday. Squawk on the street begins right now. Have a great weekend. Good friday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer at the New York Stock Exchange. David fabers off today. Weak premarket as these bond yields continue to hit some fresh lows, s p though still on track for a fourth positive week by a pretty comfortable margin. European banks continue to get hit today. 10year rally adding steam. Oil getting hurt on that stronger dollar. Jim, a lot we didnt get