For playing porn music. Almost got it there. Im the short guy played by billy crystal. It is not street signs a. M. No, street signs early edition. No, the squawk brand is much bigger. There you go. Will come up every 20 minutes. I dont mind that. Also people said you have a tendency to kind of hijack the show from andrew a little bit when youre on. I said, you know what, it is friday, you want to do this yourself, i got, like, six papers here. And i have no problem with that. Sit back, relax. July. It is a friday in july. It is a friday in july. Im too tired tonight alpha male today. Are you really . The zzzz male. Yeah, zzz. Like a sitting duck. Someone said yesterday were shameless promoters for the show. I said, what would you rather . Dont watch the show. It is terrible. Berk, our guy, is big on symphony. Here we are, i dont know whether you know whether the symphony is working, but did you notice comcast. The stock is on fire. Almost 45. So there is something to this symphony thing. If you want to do street signs and talk about it, thats fine. Im promoting everything ive already done monsters university, thats universal. Already started youve already done that, yeah. This could be despicable me 2 if the show doesnt go well. Monsters university, it is not universal, is it . Despicable me, thats what i meant. Monsters university who would see that. All 30 dow components closed in the green. The blue chip index, cant keep alled the kids movies and keep track of them, the gain for 2013 is already greater than any year on record so far. The nasdaq posted its best finish since 2000. As for fear in the market, were talking about the vix, it dropped to around 14. And had moves up, but for years it really since financial crisis has been trending lower, equity futures this morning, figure they would be a little consolidation but they are green. European stocks, even though they were up before we were yesterday, you figure that they would still, you know, on the back of what happened here do better. The ftse, the cac quarante. Do you practice the cac quarante . Cac quarante. You to speak aussie. I speak aussie and french. A combination of french and aussie. Fraussie. Give us your best cac quarante. Cac quarante. Sabotage. I know a few [ speaking french ] oh. I think you just asked me to it is a song. I know. But i think you just asked me if i wanted to make love to you. No one said anything about love. No, love. Thats right. No love here. No love, man. It doesnt always involve im wearing mascara this morning. I already mentioned that. Youre a very toned man to have that much makeup on. And i mentioned divine. You do know who divine the major asian markets right off the rails. Quickly. The there they are, what happened in asia. They didnt get the memo that things were better. They didnt last night. But, i was looking at the tally for this week, and the msci, asia index, which tracks 45 well, actually, sorry, the msci world index, not just asia, the world index tracks 45 countries, had its best week since november of last year. Really . Yes. So that hasnt done too badly. Seeing what it is, not presented for what happened. Yeah. Just so everybody knows, youre going to wear your jacket, not because youre going against convention on squawk box. Because you dont like undershirts, right . I like undershirts. My jacket bothering you in. No. I didnt want to bust out the it started 20 years ago not wearing a jacket and then went through carl, the next version and now we dont wear you dont dont do it. No, no, no, no. Play the porn music. No. I didnt my babys all grown up, joe. All grown up. This is going pretty well, i think, this street signs a. M. Is anybody still tuned in or did they go off to dog tv. We dont have a lot of viewers to lose. No, its fine. Key reed rea key reads on inflation. The june Producer Price index, the headline, rising by. 6 . At 9 55, consumer sentiment. If they dont if they make a mistake, it is their will you know when you throw to the schedule . Two big banks set to perform before the bell today. Jpmorgan and wells fargo. Expected to post earnings of 1. 44 a share. On revenues of 24. 8 billion. Among the things that analysts are watching, signs of Capital Markets activity and also growing fear fooes. We all know about those. What do you think . Were giving you the chance to play armchair analyst. Call it what you like. Peanut gallery, whatever. Interact with us. Go to our Facebook Page, vote on whether or not jpmorgan will meet, miss or beat expectations. Well actually bring you those numbers from jpm the second they hit the table. Not the second second but the first second to hit the table. And dont miss Jpmorgan Ceo Jamie Dimon in a cnbc exclusive. This is a big thing, right . Hell be with jim cramer at 10 00 a. M. Eastern. As for wells fargo, analysts are looking for earnings of 93 cents a share on revenues of 21. 2 billion. Well be talking more about the financials with analyst chris whalen in the next half hour. All those things coming up. Thats right. The other big financial story this morning, a push for a modern version of the 1933 glass stegele act. The original act was passed after the stock market crash of 29, separated commercial banks from investment banks. Couldnt do the same thing. Many of the core provisions were repealed in 1999. Now democratic massachusetts senator Elizabeth Warren is teaming up with Arizona Republican john mccain and two others to introduce a new version of glass stegele. Well speak with senator warren this morning. A year ago on squawk, goss and the father of the socalled Supermarket Bank sandy weil called for banking up the banks. What we should probably do is go and split up Investment Banking from banking, have banks be deposit takers, have banks make commercial loans and real estate loans, and have banks do something that is not going to risk the taxpayer dollars, that is not going to be too big to fail. Among those strongly disagreeing with weill, dick kovacevich. Hell join us later. That quote from sandy weill sent shock waves because they said here is the guy that was the architect of the opposite. Basically admitted that they made a mistake. Spawned some sarcastic references that you can imagine. It is like so and so suggesting this. You think of like the yankees suggesting that we should lower pay in baseball. Im not going to say it is like madoff giving us some ideas for how to, you know, manage money. And im not saying that sandy weill is anything like madoff. Hes the architect of big banks. It is just sort of weird and dis disingenuous that hes now he doesnt want anyone else youre at this point, i dont know. Do we need dodd frank if we do glass stegele. A lot of people think credit is still constrained. You put it on top of dodd frank. I think this bill reminds us why wall street was fearing the elections of the senator Elizabeth Warren in the first place. Whether or not it will pass is a completely different question. The margins of it passing are fractional. Fractional. You say shes a senator. I go when is the last time something a senator thought of actually knead into lmade it in. It is very collegial and they feel they get good tables at restaurants and they have an entourage, but they dont really they gist sort of think a lot, nothing really happens. Cramer has been saying how hes getting nervous over the financials and the head wind of regulation. We dont need more regulation, crimping the banks. I think in a Perfect World for Elizabeth Warren that banks wok like utilities. They would be semipublic institutions, which would be, you know, i dont know no one would ever Capital Formation would be ground to a stand still in this country. There are regulators that have in idea that too much regulation is a problem. Lets look at the Global Markets report now. Ross westgate is standing by in london. Ross, how is the day over there . Mandy, well, were okay going through the last trading day of the week. We had a nice kick from the close of u. S. Markets yesterday, this fed through into asia and european trade right now. Pretty much at the best levels of the day. Nearly 73 advancers outpacing decliners. You see the growth for the best numbers into the trading session here. That means as far as the ftse 100, after gains yesterday, 38 points, up another 36 at the moment. Half a percent, xetra dax up a percent. Youll see spain and italy a little weaker today. Spain down. 6 . Portugal up, but on concerns emanating from portugal. The president , remember, portugal in a bailout that is based in june of 2014. The president earlier this week came out and said maybe we should have some fresh elections at the beginning of 2014, which threw up into doubt whether you can complete the bailout program. The troika said were not going to advance the next tranche until you sort out the politics and the Prime Minister saying all parties, we need to work on some kind of coalition to get everything together. Though the ecb is fairly relaxed. Couple of individual stocks worth looking at today. The uk, invensys, the british engineer, up 15 . Schneider electric has come out and confirmed theyre in preliminary talks mainly to offer talking around 505 pence a share, just off that price at the moment. Here is the story also with a lot of take. These two Companies Serco and g4s, these shares were down heavily yesterday. Theyre down again today. Serco off 8 . G4s off 6 . They have been overcharging the British Government millions for tagging criminals that were nonexistent. Some socalled criminals were even dead. Thats a scandal in the uk. Keep your eyes on bond yields now. Were seeing gilt yields, treasury yields lower. In spain and portugal, still elevated. Keep your eyes on that, around this psychologically and also physiologically important 7 level as well. Not sustainable at those kind of levels. Were trading higher. Back to you guys. All right, ross. Thank you. I can hear the difference now between you and mandy. Some people cant tell the difference between an aussie and a british accent because you came from there. At some point. I originally, yeah. Not you. Well aussies. Yes, aussies originally came from well, not all. And then there is South African and zimbabwe, they all sound anyway, the flurry of activity in washington this week. We talked about the modern glass stegele and then the house passing the farm bill without food stamps. The continuing battle over student loans. And then we have got also the the house is going to try to block the individual mandate. Nice that everybody does things that they know arent going to get done by the other side. So much fun. Lets get jim harwood to talk about some of the infighting and what is happening in washington. Going well. Business as usual, john. Everything is passing things that have no chance of ever becoming law. Joe, washington, it is we had an incredible demonstration on the senate floor when the two leaders, Mitch Mcconnell and the republican leader harry reid, the democratic leader were fighting over the potential for changing filibuster rules which democrats might want to do to get some of the president s appointees through more quickly. Republicans have been holding them up and it triggered this bit of trash talk which was greater than ive seen in a long time. Take a listen to this. These are dark days in the history of the senate. We witnessed the majority leader break his word to the United States senate. No matter how often my friend rudely talks about me not breaking my word, im not going to respond talking about how many times hes broken his word. What the majority leader has been saying here all along is he wants the confirmation process to be speedy, and for the minority to sit down and shut up. And if we dont pull back from the brink here, my friend, the majority leader, will be remembered as the worst leader of the senate ever. There is lots of time for name calling. Im going to continue to try to speak in a tone that is appropriate. Name calling, i guess he follows i hope not a demagoguic theory, that the more you Say Something, it falls, people start how did you like that, joe . It reminded me of not only the house here, but maybe the lower house over in great britain. But, still, you saw those guys, they werent looking at each other and still still senatorial the way they did it. But you think they went to the bar afterwards and had a drink . Who knows. I love harry, though. Hes classic. If you own a casino, youre in good with him. I know that much. If youre in las vegas, you love harry reid. It is that simple. He didnt actually say on your tombstone you ruined the senate, but it got close to that. There was tombstone talk earlier in an exchange a few hours before. Wow. I love the way that mcconnell said my friend is going to go down as the worst leader in the history of the senate. And then harry said, im not going to respond. If i were to respond, id say im not going to respond and talk about what a lying demagogue you are, yeah. I know. But it wasnt that bad. But to get to the underlying issue, joe, you may remember we were in a similar situation during the 2000s which george w. Bush was president , republicans were threatening to invoke what they call the nuclear option, change the filibuster rules. Now democrats are doing just a simple reflection that both of these parties are in full out partisan war and use every tool they have got. And the filibuster is one of the best tools that a Minority Party has got to stop the party in the white house and theyre going to keep using it. I suspect that they will somehow work this out. And that harry reid will not as republicans and bill frist was the leader then did not go nuclear in during the 2000s but well see next week. There will be test votes on a series of the nominees and well see how republicans respond. Can the majority get rid of the filibuster rules . Yes. Filibuster that rule. When theyre trying to change the filibuster, i would filibuster it. There is some dispute over that. Both in terms of rules and in terms of senate traditions, but it is in both cases, when they were first republicans and now democrats, were talking about changing the rules, they can change the senate rules by a simple majority. And so they would be using senate rules to change the filibuster rules. Then you cant get anything through the house. Thats what i dont thats weird or not everything just the senate . The filibuster is not the only thing barring action in washington. Some confirmations can be just senate, right . Thats what theyre talking about. Yes. Yeah, exactly. At issue here are nominations for the epa, for labor, as well as for the National Labor what should i say to Elizabeth Warren . Isnt this we got dodd frank. If we we wouldnt need dodd frank if we did glass stegeal, would we . Probably not. But i dont think her bill is headed to become law. Should i ask her why shes bothering . They all do this, just for what is it . Well, look, you know, people disagree. There ray lot of things that get proposed in congress that dont go anywhere. I believe john mccain proposed this bill as well in the past, but no, look, there are people who think that there was a fundamental problem in during the Clinton Administration when they removed the barriers and theyre going to try to push it back. But i think the world moved past that. That might be our next fed chairman, same guy. Right . Larry summer. Could happen. Would that make you happy . I like larry. I want my daughter to get into harvard. A friend of mine, so all about me. All about me. It comes back to you. Anyway, thanks, john. Thanks, john. Coming up on the show, financial earnings, congressional testimony from ben bernanke next week, and a whole lot more. Lets talk about the events likely to drive stocks in the coming days. It is all coming up next. First, a deal just announced, chip designer spreadstrom, very difficult word to say. We talked about it we brought it up on street talk. This is why you need to listen to street talk at 2 00. Spreadstrom. What did i say . Spreadstrom. Thats why youre working on it. Youre used to being up at this hour. We are not. This is difficult for us. Yes, both of us were working last night, up early this morning. It is being acquired by chinas singwa unigroup. You nailed that. For 1. 7 billion. Cant speak english, but my chinese not so shabby at 6 00 in the morning. Stick around. A lot of cultural background. You know mary tyler moore. We have blue green coming on. I call him lou. The dow and s p 500 both closing at all time highs. Joining us now i get to do it. Lou preen and john lonski. I sat next to you in admit it makeup. The makeup girls said, like in an operating room, we have done all we can. We have done all we can. And they let him go. What do you think, lou . Can we add to the gains by the end of the year . You know, yesterday i thought was, you know, aside from the fact it was up 20 handles or something, the s p, i thought it was important because we gapped over the high the day before the fed meeting, before june 19th, when the market started to really go down in ernest for a few days after bernanke spoke. Being above that level, the high the all time high at 87, not very far away. Technically there is nothing not to like about it right now. I think i can have all sorts of worries about how it reflects the economy, et cetera, but looks, you know, there is nothing to complain about at the moment technically. I looked at it and we have been waiting for we all have been told that the fed is providing the bridge to when the economy gets better. And yesterdays move, was it just that the fed is going to be there or based on earnings, are they going to be okay . The feds action eventually will have an effect on the economy or just pure 85 billion a month, lets buy more stuff . I think it is like onethird the realization that business sales, top line Revenue Growth is doing better than anticipated, improves the outlook for earnings. And twothirds would be the expectation that the fed is going to be there to prevent the economy from falling apart. Theyre going to keep Interest Rates low enough so that sales and profits can grow sufficiently. Before the fed started tapering, people said when bonds finally start when yields start backing up, there will be an initial