Brent a decline of 49 cents. Couple big corporate stories to tell you about. The biggest one, its final. Its here. Verizon set to announce an agreement today to buy yahoo for 5 billion. Sources telling us that yahoo will no longer an operating company after this. It will become a Holding Company for stakes . Alibaba and yahoo japan. Has a small platen portfolio to sell. Marissa mayer not expected to stay on after the deal is completed. Her severance, expected to be 57 million. Well have a lot more on the story in a couple of minutes. Other news as well. Tesla and solar city, theyre reportedly closer to a merger. No brainer. Thats a new one. One brain. Elon musk the largest share hoeflder in both companies. In the final stages of carrying out Due Diligence on both companies. The companies are carrying out due dial generals the right brain talking to the left . Elon did an interview this morning. Did you see this . Its a good piece. We dont get that paper. Its called the new york times. Its a fascinating piece about what hes been going through. What both companies have been going through over the past month. Tesla announced it made an all stock offer for solar city. That had been worth 2. 8 billion. Solar city formed a special committee to evaluate this bid without elon musks interests. Were talking about the right and left brain. So far not publicly responded. Very elite on this story. Go for it. Elon musk is apparently hanging out, dating, mrs. Johnny depp. Really . I missed that. Yes. You didnt hear that . You heard that. No. I saw it is the ink dry on the agreement . Odd pair, sort of. Hey, whatever. Again, i say if he was bald elon musk, wouldnt be dating him. Hes a billionaire. That does go a long way. You dont think what hes doing is fascinating. I interviewed him ten gazillion years ago and he was amazi amazing. Hes incredibly impressive. Come on. Electric cars, solars, everything. Im not even masking making it up. Thats the Mainstream Media sort of take on it. Ill even argue that autopilot which im not sure is ready for primetime it so awesome and Game Changing not him doing autopilot. Other companies are working on it. Hes the most out front about it than you know what im impressed with. Im impressed with how he cured his own baldness. Cured. He looks great. To be able to do that. It is a telling thing, right . Super smart, super wealthy and yet, you can still be so insecure. Men can be so insecure. Not at all. E. Got perfect hair now. Thats what im saying. Thats a trillion dollar market opportunity. All this other stuff, solar this, flying this, hyper loops. You can get that, move a hairline forward back to hes so impressed by the company, maybe hell buy it. That could be. I saw i mentioned Kim Kardashian last weekend with whats her name and you look at me like im crazy. Didnt know that was a big deal. They were mad at she was feuding with taylor swift. Relates back to kanye stealing the stuff. The voice mail over snapchat. We got to youll do anything not to talk about this Debbie Wasserman story. A number of big sniel anything to delay it. Do you have it on, the tshirt on . You were not at any of the wick i things. My undershirt. Im with her. Number of big political stories this morning. The democrats prepare to open their totally organized coronation convention with everybody on board in philadelphia today. Im worried about that. There were none in cleveland. I thought the same thing. I thought we thought there would be a lot of protests in cleveland. Then it was almost nothing. Wow, have we gotten relaxed about the Democratic National convention. I spoke with the his demand was that Debbie Wasserman step down. Hes been calling for that for months. So this may calm things down. This may be why. Because they were the bernie supporters are so ardent. They didnt care that he was supporting Hillary Clinton or anything. They hated Debbie Wasserman schultz so much, it was demand number one that she go. It was before you saw superdelegat superdelegates. That was before you saw the inner machinations of how in bed the dnc was with Hillary Clinton all along. That could plus tim kaine. I love this. Deeply religious not like this pence guy, this evangelical nut case. This crazy guy that no, this tim kaine, hes deeply the way that they i love that. I love the way are you suggesting a double standard . Oh, no. Democratic National Committee cheer Debbie Wasserman schultz has resigned after an email leak showed dnc leaders work to undermine the campaign of Bernie Sanders during the primary fight with Hillary Clinton. Interesting piece in the journal, andrew, that see i would pick cory booker. Charismatic and young and happening and more. Picking this guy means that she thinks shes got it. Because she can pick a moderate sort of a slap in the face to Bernie Sanders who thought he deserved getting a vp of his pick. Thats the journal. She thinks its in the bag. She could have gone with somebody far more progressive and liberal. She wants to bring you along no. But the goal here is to say im not all the way here to the left. For those of you who are republicans who dont want to go to donald trump, im a middle of the road person. Gun, Climate Change its worse than the only two issues that republicans are voting on these days. I believe you when you say that. I think you didnt mean me. You mean someone yes. Meantime, hes incredibly establishment. Every choice she makes. Loves tpp. He doesnt love tpp. Say some nice things about this guy at least. Good luck. You got this former mayor that trump had the other former mayor. The one there for 9 11. Anyway, didnt change the law to do a thirld term so that he could be there. Former new york talk about antigun and Climate Change. Mayor Michael Bloomberg will endorse clinton this week in a speech at the dnc as if he was ever a republican. Now hes an independent. He was first elected as a republican, but anyway, he was the member of the Democratic Party until 2000. Had to run as a republican to be able to get on the ballot. Then he tried to do the 16ounce drinks. A new poll finds president ial candidate donald trump with much more on that from john harwood at the dnc in philadelphia in just a couple minutes. We have a developing story out of florida this morning. At least two people killed, more than a dozen injured in a shooting outside of a florida nightclub early on monday. Gunshots were fired in the barking lot of club blue in ft. Myers just after midnight. Police said at least 14 to 16 people were wounded in the shooting. Officials say a person of interest was detained at another location and shots were fired five blocks away from the nightclub. Detectives have not yet determined a motive. Shares of yahoo and verizon on the move this morning. Both Companies Finally close to announcing that verizon will acquire yahoo at more than 5 billion. The big question is, what happens to the various brands of yahoo if it passes what, it means for the future of yahoo and that Holding Company . For all of that were joined by roger. Founder and lead analyst at recon analytics. Good morning to you. Good morning. Help us try to understand this. You look at the deal, 4. 8 billion. There was talk at one point about whether this entire company was going to be worth 10 billion. Lets talk about the valuation first. Did verizon get a good deal. Did yahoo get a good deal snoo. Verizon got a really good deal. For a yahoo, it is the end of a decadelong fall from grace. They were once upon a time at like 125 billion and now theyre down to 5. What is amazing is how resilient the assets are. Each today after a decade of mismanagement, its still the Third Largest web property. Thats really what verizon is buying here. Its doubling down on its strategy to become a wireless Internet Provider and it builds on the strength of what they barred when they acquired aol. You put these two assets together and is this a one plus one equals two or one plus one equals three. Let me suggest the question mark over the yahoo business and frankly all of the businesses, whether youre merging with aol or anything else. In a world of programmatic advertising, when advertising has become commoditized. Harder and harder to charge a premium. Weve seen what happened to the yahoo business, which has deteriorated even over the last couple quarters. Yes. What happens here is that aol or verizon with it has now much more inventory to sell into. Aol with verizon was number five. Yahoo was number 3. This will turn the combined entity into at least number 2. Within striking distance much number 1, google. Where does that put facebook in this . I was thinking it was google, facebook and yahoo. Yahoo probably being a distant third. The numbers that i saw were that facebook was just 5 to 10 Million Units ahead of yahoo. And at around 200 million. With aol its 150 million. Units. Theres overlap. But it should put them ahead of facebook. Advertising revenue, youre talking eyeballs, right . Im talking dollars. Hes talking oh, dollars. Yahoo is far behind. It has been amazing how little they could get from their eyeball. So with better management, with Stronger Team the combined entity should be able to get significant upside on the monetization. Final question. If you are a yahoo shareholder this morning, you will continue to hold yahoo japan, to hold this 41 billion stake in alibaba and this patent portfolio they hope to still sell, some talk about an estimate, how do you value the rest of this thing and do you hold on to the stock at this point . You probably hold on to the stock to see what happens. The portfolio should come in at a billion or two. And then well see what happens with yahoo japan. Soft bank has the majority here and it makes a lot of sense for them to buy it. But its a captive seller here. For anybody else, it doesnt really make a lot of sense to deal with in the fair enough, we appreciate your perspective this morning. Thanks for coming in. Thank you for having me. Thank you. Coming up, fireworks in the philadelphia at the convention and it hasnt even started yet. An email scandal is forcing dnc chair Debbie Wasserman schultz to step down after the convention is over. We will head to philly for a live report next. And will the Russian Olympic Team make it to rio . That story is straight ahead. Squawk returns in a moment. First, this day in history. Its time to discover that in a lexus suv. Theres no such thing as adverse conditions. Come to the lexus golden opportunity sales event this is the pursuit of perfection. Hall of fame weekend for major leaguers. Ken griffey jr. And mike piazza inducted into the hall of fame. 630 home runs, piazza a 12time allstar. Hell hit 427 home runs. 396 as a catcher. Thats a record. I looked at the stats, compared them to johnny bench. Okay, i admit it. Deserves to there. More home runs, a higher average just about across the board. Offensively might have been youre too young to remember j. B. As a catcher, he was in a crouch, he could throw to first, throw to third. Piazza was good. He really was good. Ken griffey deserves i think he got the most votes ever, first place votes ever. Scary. Because i remember others more than him. He was a big red machine. Life keeps moving on. He eventually played for cincinnati, ken griffey. Im just letting you know. He was great but his prime was with seattle. Mariner. Give you twominutes sports drill before we talk more politics. This is sort of political though. In a different way. Were now less than two weeks away from the start of the olympic. Olympic games in rio. It looks like russias team will be allowed to attend the games. All russian athletes were tainted by the countrys staterun doping system. But stopping short of a complete ban instead of the ioc, signing individual the responsibility of clearing those athletes. Didnt really expect them to do anything. It was sort of political story. The Democratic National convention kicking off in philadelphia today. Not without a cloud of scandal. John harwood joins us with more. Reporter the week kicked off with some the same dysfunction we saw in cleveland. Instead of talking about her running mate tim kaine, Hillary Clinton was on the defensive over leaked emails showing she was favored in the democratic primary by Democratic National chair, Debbie Wasserman schultz who had denied that she had favored Hillary Clinton. That forced resignation the best news for Hillary Clinton was that it happened in time for the airing of this interview on 60 minutes where Hillary Clinton said she was going to run a campaign not at all like donald trumps. He calls you crooked hillary. What do you call him . I dont call him anything. Im not going to engage in that kind of insult fest that he seems to thrive on. So whatever he says about me, hes perfectly free to use up his own air time and his own space to do. Im going to talk about what hes done. Reporter now, donald trump didnt leave all air time to Hillary Clinton. He went on meet the press with our colleague chuck todd and said, among other things, that he might pull out of the world trade organization. Some of these things arent going to get through the world trade organization. Doesnt matter. Then were going to renegotiate or pull out. These trade deals are a disaster, chuck. World trade organization is a disaster. Reporter how will rhetoric like that play with American Business . One clue. Mike bloomberg, former mayor of new york city is now endorsing Hillary Clinton. Thats something that Hillary Clinton will be talking about this week, guys. Thanks, john. Bloomberg, it was the reaction to trump being less friendly to business that caused bloomberg to back hillary . You dont think he was always going to back hillary, john . I do think he was always going to back hillary. Yes. By the way, joe . Yes. Johnny bench was so far above mike piazza as a defensive catcher, you cant even compare the two. I know. Piazza, im glad hes in the hall of fame. Johnny bench, how how do you measure that . Not a comparison. How do you measure that . Johnny bench could hold like nine banl baseballs in one hand. He had massive hands. Nobody can throw out base runners like that. I know. Believe me, i was a kid and i had loved i still can get that same feeling. Only the kids get for baseball and their idols and stuff. When i saw piazza, i was like, compared defensively, piazza was a hit for a higher average, more home runs. I remember what youre talking about. The guys at first and third, you didnt have to stand up. Hed throw in a crouch. Either way. He could pick somebody off at first without standing up. No passed balls. By definition, nolan should be no other catcher should be in the hall of fame. Johnny bench is the highest standard. Kind of saying that. No, no. Dont hate on the guy this morning. Congratulations to him. Johnny bench is in the hall of fame. Understandably. Of course. What are you saying . Thanks, john. For more on the Democratic Convention im not hating him. From cincinnati. Lets bring in our next guest, a former republican congresswoman from new york. Served as new york cochair for Karl I Fiorina 2016 campaign. Harry ford from tennessee now now a managing director at Morgan Stanley and professor at the university of Michigan School of public policy. Welcome to you both. Thank you. Guests here, the most overused term is that casablanca, im shocked. So im shocked at the dnc, that the presumptive nominee was always Hillary Clinton. You kind of knew that. Did the actual seeing the details as theyve been released, was it even more surprising than we should have thought . Im not going to use the word rigged. How it was going to be Hillary Clinton. They went through the process of all the voting. Lets be clear. The Party Chairman has to be impartial. The Party Chairman they have every right to endorse whoever they are supporting, yet you have to be impartial in the process. Two, Hillary Clinton won outright. She won millions of more votes. Theres nothing the dnc can urge or make people vote for her. But they did run the primaries on friday nights during basketball games that everybody else was watching. People could still go vote. They acted as if they feared the more people who saw Bernie Sanders, the more he was likely to gain on her. I dont think thats why he lost. I think his message was not compelling enough and didnt get enough traction with democrats. Nonetheless, the emails are what they are. I think didnt mean to cut the congresswoman off. But its right that Debbie Wasserman schultz steps down. Its about reintroducing the nominee and the Vice President ial nominee which democrats will do in the next few days and move on from this. You dont think Bernie Sanders supporters are sitting here thinking what could have been if the way the distribution was done in terms of who was on the platform, making the decision. Everything was geared toward like joe said, im shocked. When i looked at all the decisions made through the dnc process, it was clearly designed to help Hillary Clinton and now you have this group of disaffected voters who may be thinking what, if it was truly fair and square . I dont know how much more could have been done other than mr. Sanders, senator sandsers having a better message. She had to play by the same set of rules that he did. This is not the dispute that the emails suggest no, no. She had the superdelegates. She always had the superdelegates. The dnc had nothing to do with her getting them. She had to go win them over. These are members of congress and the senate. Look ix, i think the outcome we have is the right outcome. Im looking forward to this week. John said it best, we got visited by dysfunction we dchbt want. The party moved on from it. The challenge is to introduce and reintroduce mrs. Clinton. How much is about her and what she has to stand for and what were going to hear about and how much about her as an antidote of donald trump . I think youll see some of both. I dont think you can divorce the two. If we said this is a binary choice. She has a record shes ready to run on and vision. The contrast between this convex, the democrat and the Republican Convention. Youll hear more about what she plans to do. Will there be trump contrasting . Of course will there will be. Dont want to say anything bad about him. She promised that on 60 minutes. Shes not going to call him names. Not like fascist, ma soj n ma soj nis, none of those . This might be a better question for her too. The journal, as Hillary Clinton takes command of a changed party, theres very little in common with the one that she and her husband rode to the white house a quarter sent rip ago. Yet, she picked tim kaine. He goes back maybe more to the moderate side of things. I think both parties are facing changed parties as we know. For very similar reasons. Theres a distinct strain of angry, frustrated, populous running through both parties this year. Tim kaine is an effort since Hillary Clinton was pushed so far left in her primary, team kaine is an effort to reassure those who want to know that theres someone who is experienced at running a bureaucracy. That the they stay in base, they understand the traditional things, the establishment things. That hes there. But frankly, those who want a real change are going to look very seriously at donald trump. Because if you want to have an economy that works for everyone, you have got to have tangs reform. Weve got to have tax relief and Regulatory Reform and only donald trump is running a platform that will seek to achieve those things. Do you recognize the Democratic Party . Not tim kaines part of it, but the party that shes alluding to. How far left they are. Thats not your party. I recognize the democrat, Vice President nominee not to be critical of the congresswoman or party, probably more so they do the top of their ticket. Politics is changing. Theres no doubt both parties, well finds a reconstitution of both parties after this election. Morgan stanley employee, does side of the Democratic Party make sense to you. A guy that works for a bank . I think about it politically, joe. I think about it in terms of whats happening in politics. I think theres a real disaffect on the part of a lot of voters. Get Corporate Tax relief. Put that aside, i was a supporter of these things when i was my devotion of politics and public life is more about understanding why do the people in my estimation dont want to support things that will help us grow. Why dont they . You have to reconcile your desires and where people are. This is something affecting the Democratic Party, the Republican Party. I think you look at inincome and equality, the distribution of opportunity and the combination has created a mix thats created the environment in which we live. If we ignore that, Democratic People of public service, we do it at the peril of the country. Were in a critical point precisely because of that. I would contend as does donald trump im sure, this inequality is based largely in the fact that we have had such invasive, such top heavy governments. Such demanding bureaucracies. That you have to be like mayor bloomberg with essentially an army of attorneys and consultants and account ants to make these things work. Most people dont have that. Thats why people are suffering. Just one point when you mentioned Morgan Stanley, the reason i wanted to chime in. Im not sure its going to help Hillary Clinton. I would argue this would hurt her this week. If you look at who is going down to philadelphia this week, its all the major banks, Morgan Stanley, blackstone. Sure. Everybody a cozy arrangement with im not saying its a good thing for her in terms of the optics. Where you asked where tim cook or whoever, if you think about the Large Companies are supporting in the country. Why do you think that is . Theres a perception that they believe its better for their businesses and i would argue better for the economy. Thats ridiculous. Shes going to win because that too. Shes going to win. Thats an easy one. They can play the regulatory factor. Thats it. Thats it. Why would you think free education, 15 minimum wage, why would they think that socialism or anything is good for the all of the playing stages they can democrats bigger issue. Donald trump sounds the same as they do on a lot of issues. Train, infrastructure, on they dont look that far off martin. Its not the issues that voters want to make [ overlapping talking ]. Wellknown for being business friendly and something that businesses would embrace. Dont forget the whole security. And predictable. National security. Hillary clinton . Shes got toog all the things shes saying to do. Sure. It began as an unpredictable premium on donald trump. Theyre counting on the wink and the nod from Hillary Clinton, right . Exactly what it is. I still think mike piazza should be in the hall of fame. Thank you guys. Remember what she said in the Goldman Sachs features. She doesnt believe any of this other stuff. Thank you, congresswoman. Okay. Thank you guys. Coming up, how the markets are going to prepare for the giant week of economic earning reports and politics. Also weve got a fed meeting on tap. Plus pokemon go, a smash success. It may not be for nintendos bottom line. Well talk about that. And a look at fridays s p 500 winners and losers. Can a toothpaste do everything well . This clean was like pow. It felt like i had just gone to the dentist. My teeth are glowing. They are so white. 6x cleaning , 6x whiteninga in the certain spots that i get very sensitive. I really notice a difference. And at two weeks superior sensitivity relief to sensodyne i actually really like the two steps step 1 cleans and relieves sensitivity, step 2 whitens. Its the whole package. No ones done this. Crest healthy, beautiful smiles for life. Youve wished upon it all year, and now its finally here. The mercedesbenz summer event is back, with incredible offers on the mercedesbenz youve always longed for. But hurry, these shooting stars fly by fast. Lease the gle350 for 579 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Shares in nintendo slammed. They cautioned that pokemon go seemed like a spectacular success would have a limited impact on earnings. It close down nearly 18 . It was the worst day the shares are up about 60 since the game launched on july 6th. Kicking off a final trading week of july in both the s p 5 hup and the dow in record territory. A series of records weve seen and another one on friday. Global chief investment strategist, citi Group Private bank. In your job, do you have to have an s p target . You do want a sell side. 2215 for the middle exof next year. When did you set that target. It was set by tobias let coe vich, im not sure when. Im sure it was a little more than yesterday. Last week, the week before or a year . I think hes been there for months. Basic user or similar. In the absence of a big external shock, youll get decent returns in u. S. Shares. Things will continue like they have. Ive been pointing out and weve been pulling back at the private bank to a little bit more neutral stance on equities. You look at the United States as of about last week, we took down our waiting on u. S. Shares from for the last three years to a neutral. If you look at you think that its getting 21. 75 on the s p . Its similar to the view for the earnings outlook for what the year ahead would be like. Its a fairly benign out come. There will be 11 recessions since world war ii. Eight of them have overlapped a new president s firstyear term in office. Political transitions can be tricky and they can provide macro risks that are apart from all of the others. This is a very smooth one this time around. I dont think theres a lot of yes, obviously. What is the very noticeable. 2175. If you were to give me a 12 to 18month range, we had a guy last week that gave, it was like a 500 or 600point s p ratings. Im like, thats 40 of the entire average. Can you narrow would you say what on low side. You said 2250 on the high side. 2100 on the low side . The next recession we face and seven years into a recovery, six years deep into getting 200,000 per month average job gains, youre closer to the end of a cycle than to a beginning. I dont think its over. I think the next move will be up and not down. Then down 25 . Why are you seeing the length of a recovery to date the recovery . Because thats the oldest saying yeah. Is it economics dont die of old age. Its the excess. There are no excess. Weve got zero inflation. None of the overheating that normally accompanies a fed tightening, which brings on a recession. Tripled eps from the lows. I look at it that way. Something has to happen because its too good . Well, you get to the point where youre having more difficulty growing earnings. Youve run out of the capacity to grow significantry. Because of wage increases . Just take a look. Unfilled job openings at alltime highs. Wed like a better distribution of just about everything. But these are conditions that you can you dont survive you think expansion recessions follow expansions . You do . Theyre not catastrophes. What happened in 08, 09. Theres no reason to expect that particular set of circumstances again. No sequel. Set up for the next recession. It will be along the lines of the ten others that weve had since world war ii. Were likely to see eps drop 20 in that case. Will the s p go below 2,000 again . It will go below 2,000 again. It will . Yes. Well have an s p thats sub 2,000, sure. Wow. We go to 2450. I bet you we dont go below 2,000. Were not going to 8,000 on dow again . No, were not going to go to 8,000 on the dow again. Theres a number were not going to again. There is. Eer not going to go to a 1,000. Wow. Hes crazy. Hes nuts. Hes liable to say anything tpt. That is a statement. Saying well definitely go below 2,000 again. Going below 2,000, that can happen. Look what we had at the beginning of the year. 2175, its certainly possible. If it does go up to where some people think it will go during the cycle, 2450, that would be almost a 20 in the next market. The last big two moves, down in equities, 50 . I dont think you have to see that again. Will you see then there will be a too big to fail too. Were talking about sequels. 20, 25 cyclical downturn. Would too big to fail be two or too . Tbf squared. It could be worse though. Not to be confused with the wto. Steve whiting thank you. The brexit fear factor dominating talks of the g20 meetings in china. Well tell you what policy makers said about britains exit from the eu. Thats next on squawk box. For decades, investors have used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. 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. With usaa is awesome. Homeowners insurance Life Insurance automobile insurance i spent 20 years active duty they still refer to me as Gunnery Sergeant when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and im a usaa member for life. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. Brexit dominating the g20 meet not guilty china. Eunice has the details. Eunice . Thanks so much, andrew. G20 leaders met in the southwestern city and the topic wags brexit, brexit and more brexit. There was nearly universal concern about the impact of brexit on the European Growth as well as the global economy. And basically what happened was that the g20 leaders issued after a twoday meeting a communique where they said they would use every tool at their disposal to prop up growth. This is of course the g20, so there werent any specifics. One of the things they agreed upon was they were hoping that the brexit would be negotiated quickly and in the least disruptive way. If they dont otherwise the as i spoke with the imf david lipton, he said that there could be a slowdown in investment as well as spending. This is what he had to say. The big question Going Forward is the how brexit will be addressed when the u. K. Begins negotiating with the European Union about what the new rules are going to be. Whats most important is that theres an amicable approach. That they approach this with a sense of mutual gain and find a way to agree on some new rules without creating a period of unnecessary uncertainty. The meetings happened after the republican National Convention, so there was a lot of talk about donald trump and his economic policies. Theres a fear among g20 leaders about rise in protectionism in the United States as well as elsewhere and the impact that could have on global trade. The other big topic of discussion was the italian banks, europe is negotiating with the tal began government for rescue plans. I spoke to the finance membershipster and they all had the same thoughts. They felt the fears were exaggerated and would come up with a solution sometime soon. Yeah. All right, eunice, its not just donald trump, tim kaine was a big tpp guy until saturday or friday. We got some protectionism on both sides that you can worry about over there. When did he switch . When was he picked . A huge tpp guy. Friday. Hes not anymore. Got to get on board. Get on board. Protectionism on all sides. Coming up, the busiest week of earnings season. Well tell you what to expect right after the break. Plus, the star trek saga back at the box office. And a show stealer released at comicon. Thats next on squawk box. Mary buys a little lamb. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of at t, and security that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. My m. About my toothpasteice. She eveand mouthwash. Ice. But shes a dentist so. I kind of have to listen. She said jen, go pro with crest prohealth advanced. Advance to healthier gums. And stronger teeth from day one. Using crest toothpaste and mouthwash makes my. Whole mouth feel awesome. And my teeth are stronger too. Crestpro health advanced. Is superior to colgate total. In these 5 areas dentists check. This check up . So good. Go pro with crest prohealth advanced. Moms right. Again thats how i remember wonder woman. Thats a wonder woman trailer. Welcome back. Girl power comiccon. The trailer from wonder woman released over the weekend and it already has nearly 12 million views on youtube. Part of Warner Brothers slate of superhero movies in ab attempt to compete with the success of marvel. That will be out june 2017. Remember linda carter. Yes. Amazing. I love wonder woman so much. I cant wait to see this movie. You know about the creator of wonder woman, a little bit of an odd contract. What . Yeah. See, i was going to say that looks better than the linda carter version. She was good looking. The adventure part. The uniform was lame. I loved the lasso. Pulled that thing out of her boot. I loved it. Okay. This weekend the Starship Enterprise went boldly to the top of the box office. I repeat this weekend, i want to say that twice, you know it was this weekend, star trek beyond, the third installment of the rebooted scifi franchise earning 59. 6 million this weekend. Thats about 10 million less than its predecessor, star trek into the darkness, that that movie made in 2013. Merger news just crossing the tape. Amc extended takeover deal to buy rival movie chain car mike cinemas. Stock and cash, 33, more than the all cash bid. When we had ceo of amc and i asked him about all this, he said they were going to be very disciplined buyers. Yes. Made it sound like there wasnt any congrats. Take a look at earnings as over 200 names set to report from dow and s p 500, apple, facebook, cocacola, United Technologies and our Parent Company comcast. Joining us now is lindsey bell, Senior Analyst at Global Market sbblg. Hey, lindsey. Hey. Positive growth this quarter . I think were doing to get close but not quite there. 350 to 400 basis points. Right now expecting a decline of 3. 7 so well get close. 350 to 400. It could happen. Yes. Whats the biggest holdout in terms of why cant we do it . Energy is still the biggest drag. 81 decline in Earnings Growth southbound going to help the index. If you export energy. Weve been able to say that a while. Last cull of quarters energy was still negative. Last quarter, just like this quarter, six sectors negative Earnings Growth. Thats not positive. Were seeing surprises so far this quarter is Technology Sector coming in a lot better than expected because we have heavyweights qualcomm, microsoft and intels better than expected quarter is helping there. Its tech, materials, Consumer Discretionary coming in with big beats. When do we get past negative comps for energy, supposed to be down 81 quarter after quarter because of decline in oil. Are we close to the end of the comparisons . Were very close. Were going to see positive growth for energy sector, 1 . Not very much but well take what we can get, right . Im confused energy, financials being negative but industrials positive by 8 . The way i think about the economy, i feel like those should move together. You know whats happening in the industrial sector, industrial conglomerates, aerospace doing really well but industrial conglomerates, ge, a lot of mergers going on there. Thats creating greater than expected year over year growth. Because last year you had it easier. Got it. All right. By next quarter well have positive earnings. Thats right. 1. 6 growth in the third quarter, almost 8 growth in the Fourth Quarter. The good thing is, even as these numbers coin, usually once youre getting the previous quarter numbers, the quarters start coming down. Were not seeing that this quarter. I like that a lot. Thank you. Thank you. The earnings scorecard. Coming up, verizon may be about to seal the deal for core internet operations. More on the stock when we return. Do i look smarter . Yeah, a little. Youre making money now, are you investing . Well, ive been doing some research. Let me introduce you to our broker. How much does he charge . I dont know. Okay. Uh, do you get your fees back if youre not happy . dad laughs wow, youre laughing. Thats not the way the world works. Well, the worlds changing. Are you asking enough questions about the way your wealth is managed . Wealth management, at charles schwab. I wake up and i just feel like i sleepsticky. Ely hot. Have the windows open, the ac on id close it in the middle of the night. Hed open it in the middle of the night. It was a nightmare. My new tempurbreeze stays cool to the touch. Not cold but cool. It naturally adapts to your body and somehow creates the perfect temperature for you. I feel like this was made just for me like they had me in mind. I dont know how they do that. vo sleep cooler, wake more refreshed. Discover the new tempurbreeze. Verizon yahoo set to connect, looking to sell to the Telecom Giant for 5 million. The latest on the deal of the day is just minutes away. Kicking off the Democratic National convention but not without more political chaos. The dnc chair ousted after an internal email leak. A live report from philadelphia coming up. Plus the worlds most Expensive Hotel suite. Just how much does a night at the mark hotel in new york city cost. There you go. Got to stick around to find out. The second hour of squawk box begins right now. Live from the beating heart of business, new york city, this is squawk box. Welcome back to squawk box here on cnbc, first in business worldwide. Im joe kernen with Andrew Ross Sorkin and michelle carusocabrera. Mark weinberger global chairman and ceo. Futures at this hour have been up for most of the session but i think they are now down. They were up quite a bit on my way in, about 40 or so, Single Digits on the dow. Now dow indicated five. The s p is flat, indicated down. 28 in the nasdaq is off two. Okay. Some headlines to tell you about, including a big one that crossed the tape. Weve been waiting for this one. Verizon announcing it is acquiring yahoo 4. 83 billion in cash. We have been been expecting this. The saga has been going on for quite sometime. Well be talking a lot more about this transaction in a couple of min. Other headlines, shares of nintendo overnight in tokyo after the company said pokemon go would have limited impact on its earnings despite the huge success of the game. Todays decline was the biggest oneday drop in nearly 16 years. Imagine you host that game and dont make that much money from it. Reaching a settlement from Pennsylvania AttorneyGenerals Office that could result in the resignation of several Board Members and could give new life to previously rejected 23 billion takeover offer from hershey. Apple on the verge of selling its 1 billionth iphone. Apple should reach the milestone this week. First debuted in june 2007. A developing story out of florida this morning. At least two people were killed and more than a dozen others injured in a shooting outside of a florida nightclub overnight. Gunshots were fired in the parking lot of club blu ft. Myers just after midnight. At least 14 to 16 people wounded in the shooting with injuries from minor to life threatening. A person of interest detained at another location where shots were fired five blocks from the nightclub. Officials have not yet determined a motive. Andrew, at first they said 10 billion. At first they were looking for as much as 10 billion. This transaction to put in context, 4. 83, core operations of the business, also includes real estate. What it does not include, though, and this is important because theres still money out there is the ali baba, 40 million on its own. It does not include japan, patents and but for apple to apple comparison it was not 10, closer to 4. 8. You never thought 10 10 would have included was probably going to include the patent business. Armstrong aol, verizon, worth valued a little more because they might actually be able to make a go of it. You know what, were going to give you the answer right now because guess who we have . Who . We have the people behind this transaction. Right now . Joining us right this very minute. Tim armstrong ceo of aol verizon acquiring aol. Marty new business with verizon. We appreciate both of them joining us this morning. Tim and marty, thanks for not coming in but coming in via satellite here. Help us with the answer joe just said. Joe was just asking about in terms of the price. At 4. 8. So youre right. We heard what you were talking about in terms of what it includes, core operating business and core patents. Were really pleased with where we are. Maybe if i could step back and talk a little how we got here. Two years ago, asked me to take on a new role at verizon, first, how do we build Core Products for the businesses were in. Ultimately, how do we stand up businesses that have the possibility of generating multibillion dollar Revenue Streams for verizon and that led us to a media company. We had a number of assets at verizon that all needed certain capabilities, add tech capabilities. Started out as joint venture and ultimately ended up in acquisition of aol. We knew at the time that we had a lot of potential but we also know that we needed scale. Thats really what leads us to be here today with the acquisition of yahoo . We have great tech assets in aol, great talent. Tim has assembled brands that people love. But yahoo gives us scale. Thats whats most critical here. We go being in the millions of audience to the billions. We want to compete. Thats the place we need to be. So very pleased with where we are today. Marni, before we get deeper in the story, one point of clarification. You mentioned you had acquired patents as well. Which pieces of patents do you own . The reason i mentioned that, news reports and release say yahoo s noncore patterns called ex caliber portfolio, which we believe 1. 2 billion is not part, is that correct . The core patents we purchased but ex caliber we did not purchase that. Tim, youve been wanting to do this quite sometime. Weve been ribbing you about efforts you made. You always tried to tell us you werent pushing this. Of course this is something you wanted to do. Why . First, im glad i came back for more ribbing. Marni and i are both excited to be talking to you, joe and andrew. You look at an industry that has 100 billion near term opportunity in front of it. More importantly connect consumers in the world are going to double in scope over the next four to five years. When you zoom into our business, weve done an excellent job of building brands people love and having Advertising Technology as madison avenue really makes advertising as easy as ecommerce. So for us the yahoo deal and yahoo relationship is exactly what you guys have been asking us about for years, how do you get more scale. The second thing i would say, tremendous talent. Talent is a true strategic difference in the world, differentiator. The yahoo team, marissa and her team incredibly talented group of people. We have incredibly tal ended group of people. The team at verizon, aol, yahoo we will set the business up to compete at a completely different level than any of our businesses have been able to do alone in the past. Its a really exciting day for us. Its exciting for the people at yahoo . We spent a lot of time with them during the process. I think were excited to take the next steps as a combinedentity. When you think about the synergy, some analysts put them at, what do you put them at and what does it mean in terms of keying and not keeping part of the team. We basically spent a lot of time looking at where the growth is going to come from, andrew. There are areas where there will be synergy elements to the deal. Thats not really the main point in the strategy behind the deal. The strategy is go after mobile and video and a lot of the global services, services aol has and yahoo has at scale. I think as we go through this, we just got done with the process at yahoo next steps for us with the yahoo team to jointly plan together in the future. Theres some period of time between today and the closing and all the questions you and joe and the team want the answers to. Those are going to happen in our joint planning sessions that will happen. Because of the way the process went down, you know, yahoo has a great strategy. We have a great strategy and combination of those two with verizon should be pretty meaningful. What can you do in terms of the advertising premium in we talk a lot about program attic advertising and how that brought down costs, harder to charge premiums commodityize. What can you do together they couldnt do before . Advertising, let me take a step back, is going to get more expensive in the future. At another we were able to raise our ad prices 12 consecutive quarters before the acquisition by verizon. A lot of that comes down to whats the differentiated product you bring to the market and how do you leverage commodity without commoditized. I was listening to Procter Gamble and seen a lot of customers they want differentiation and scale. I think when we looked at the verizon deal we did with marni and team, they are interested in mobile and data. Its a real focus point in terms of differentiation. So thats what this whole deal is going to be about. Tim, on that note, when people wake up, they will be reading the paper and see yahoo gets 3. 4 of emarketing, aol 1. 8 according to metrics out there, a total of 5 . Google and facebook still dominate. How much more, when you put these two together, can you grow that 5 by how much and what are you expecting . Well be able to grow it. Theres no doubt about it. I think one of the things marni and i are spending time on, how do we strategically move the business mobile and video. The market share, single digit today. We wouldnt be doing this deal if we thought thats where we would end up. I think from our standpoint the opportunity with our Customer Base is to really differentiate and to scale that. By the way, only a small percentage of the overall marketplace is digital at this point. We have a massive five to tenyear tail wind behind it. Our job is to capture that and move on. Whats that, 10 . 15 . Sounds like youre suggesting at least a double digit. Were going to get to double digits. I would say we have the ability to take all the verizon assets to and leverage them across the platform. We believe that well have a big seat at the table and be in double digits as we move forward. Marissa meyer, one name not on the press release. Shes in there being quoted but in terms of the future of the company, is she coming with or no . Unlike aol where we had an opportunity to plan for leadership and some of the things tim talked about in terms of synergies, this has been somewhat of an abnormal process where we didnt have a chance to talk about leadership, talk about who will be in what seat. Tim and i will be out with marissa, her Leadership Team and the rest of her organization this week, well be planning those. Well come back when were ready to talk about the leaders. At this point tim is leading this integration for us at verizon and were very pleased hes doing so. So tim, google and facebook have like half of this, the u. S. Digital ad market. Aol 1. 8 in the journal. Yahoo 3. 4. But going down. Thats going to be under 5 . Can you stop will it start growing . Will that now 5 start . Do you think you can make it 10 and 15 . Is it an opportunity youre so much smaller than the two leader. The bottom line is our combined entities are from an evaluation standpoint something that were going to have a real opportunity to grow into. From the ad product side youve seen what ive done at aol. I think yahoo has done a good job getting into new areas of growth in the marketplace. So you know, i think we look at those numbers today, look at those numbers two different ways. One, so small in comparison to google and facebook. The second way to look at them, they are so small and the opportunity is so big. Our goal is to take as much market share as we can through building awesome products, awesome brands for consumers and awesome ad products. I would say if you looked at our combined email in boxes, text messaging from Global Leaders across the globe. I heard from europe, asia, across the board and certainly many, many customers in the United States. I have no doubt that we will be able to make this a growth company. We are very, very good company at partnering and we have very good customer relationships. We take it seriously and take our consumer business seriously. So we have all the tools we need to basically make a dent in the market share. Now were in the best position you possibly can be in business. Its up to us to execute. Youve got huffington post. Ive been telling you this, you know, just to get both sides here. You buy politico and fold it into huffington post. They are basically the same type of outfit. What about the others, what about you know were a fan of having as much discourse around the political spectrum as we can. We take all of your strategy considerations seriously and im personally going to run a joe kernen strategy session later today to make sure we address all these strategy points. This was my idea. Finders fee. Were going to be hearing a lot more from marni and tim on content. Thats what i wanted to end on. Marni, a year from now, two years from now think about verizon, we look at it as a cell phone, youre moving into ad content. How much more do you think youre after . Its hard to say right now. Weve obviously been building content position, new for verizon, typically on license linear deals. We made an investment in tv, complex media. Were now building out our own channels. The goal is to take all that content and spread it across our plat forms including what we may do with ig. Well keep you updated. How about a network . How about a network . Well take that into the strategy session this afternoon. The whole Sumner Redstone going on. I dont know why were wasting time having business meetings without you in the strategy meeting. To the strategy team. Our strategy teams dont have jobs anymore. Congratulations to both of you, marni, thank you for joining us. Tim, thank you. About to have the same discussion, do you own the pipes or do you own the stuff that goes down the pipes or both . Coming up well talk politics if we havent already. Democratic National Convention ready to kick off in philadelphia. Thousands already protesting. Most of Bernie Sanders supporters. Plus dnc chair Debbie Wasserman schultz is stepping down at the end of the convention over party emails favoring clinton over sanders. We have a lot more on that story from philly after the break. Back in a moment. Im anne. Im a scientist. Why dont you let me. And me. Help you out . Youre gonna hear what i say. I love taking stuff apart and building new things out of it. Anne pals my most advanced annedroid. [gasps] this is awesome. Oh anne you havent seen anything yet. Announcer give your Cardboard Box another life. Democratic National Convention today kicking off. Already we have controversy. Eamon javers joins us. Reporter when we left you friday we knew convention in disarray, republicans at odds with each other and we thought Democratic National convention would be a model of order and rectitude here in philadelphia but this is not the case. What we saw over the weekend email scandals, hacked from Democratic National committee, leaked on wikileaks. That sent a lot of Bernie Sanders supporters into the streets over the weekend. We saw significant protests here in philadelphia from Bernie Sanders supporters who felt the Democratic Party was rigged against them during the process. Now we see Democratic Party going into its convention with the resignation of Democratic Committee chairman Debbie Wasserman schultz wednesday night. This party in as much disarray as the Republican Party was last week. Were heading into a convention where they are trying to bring the Party Together and pivot to the election. They will have to wait and see what Bernie Sanders did during the convention, whether we see that ted cruz moment we saw with the republicans but, boy, what a different story line than what we had in philadelphia, guys. All right. Eamon joining us now. Former new mexico governor Bill Richardson and former senator judd gregg and Mark Weinberger, global chairman for ey continues with us. To address you at the same time senator and governor, although thats confusing because jeb was a governor, too. How about that. Yeah. All right. It seemed like bernies acolytes were brought into on stop trump movement. Things were going pretty well. Anything happen now in estimation that sort of thwart that deal, that deal to back hillary. Is this going to open up the old sores about how it happened . This is obviously a difficult moment for the Democratic Party but nothing compared to the disarray in the Republican Convention where you had blood baths. She stopped and looked up at you. Just stopped. Did you see that . I was vice chair of the National Party once. This the most impossible job in the world. They have all governors, all senators, they all want to be president. You have all these egos, state parties. I know everybody is trashing Debbie Wasserman schultz. Im going to stand up for her because she is im thinking bernie supporters, and judd, you can weigh in on this, too i dont think cruz supporters, not that many left, they have to go with trump, too, because they are antihillary. But bernie supporters, those people are true believers . Arent they . I think this disarray is equivalent to the ted cruz situation at least. Dont you . Well, its probably more significant in some ways. People that follow Bernie Sanders are socialists and committed to socialist gods. Their purpose was to push the party pretty far left. They have been successful in that. The resignation of dnc chairman doesnt change the fact they want the party to represent their view, a very far left view of how this country should work. Thats very much a tension in the democrat party, significant tension. I think its structurally a bigger party for democrats than republicans have. We have a candidate thats a little erratic, to be kind. He believes in capitalism, market economy and he believes we should defend our selves as a nation. A lot of Bernie Sanders dont believe in any of that. Governor, as a practical matter, the Republican Party got the candidate that the Republican Party voted for and wanted to. The establishment lost at the rnc. Right . But when it comes to democrats, you have a lot of democrats who say they actually didnt get the candidate they want. Establish won. Thats the difference. Thats why you have discord. I think with democrats, you look at the platform, a lot of Bernie Sanders progressive views are in the platform. Hes been respected, hes endorsed Hillary Clinton. I think hes energized the Democratic Party. If you look at what happened in the Republican Party, the fact the governor pence of the state where the convention was held, john kasich, a very good, moderate hes not going to be happy when i call him that, didnt even attend, didnt endorse. Thats what i find so interesting about the differences between the two parties. Youve had so many republicans disavow donald trump but i havent heard a single democrat disavow socialism. Its progressivism, not socialism. Hes a socialist. Bernie sanders is a socialist. I think whats happening now is a convergence of the sanders wing, the clinton wing. Its going to be slow. Its not going to be all the sanders people supporting Hillary Clinton, but i think youre going to see on the issues, on the platform, on income quality issues, national security. The one area where im a little concerned is the trade issue. Im a free trader. I think we should have tpp and nafta. I think this is manufacturing jobs. These are good jobs. I think this is a healthy debate. Look at the Republican Party on the issues, the endorsement of the president ial candidate, theres such division that i dont see how they can recover. Hey, senator gregg, if tim kaine had been picked and this hadnt come out, i think bernie supporters would be coming around to that. It was like a onetwo punch. He got stuff in the platform he wanted. But the plum job would have been to get a real progressive in as vp, right . Thats what he deserved. Bernie should have been able to pick or at least have more of a say than picking a centrist, moderate guy. I think its good for make of us who arent socialists like tim kaine and maybe some of the alternatives but for Bernie Sanders that was another sort of slap in the face followed by the emails. Well, of course it was. But you know, ive got a question for bill. Listen, you forced Democratic NationalCommittee Chairman to resign over emails that were released because the russians appear to have gotten their hands on them and fed them out to wikipedia. The russians had their hands on Hillary Clintons emails, too, and they were released. Maybe hillary should resign and we should have tim kaine as democratic nominee for president. I knew judd was going to say that. What do you make of the facts so many big banks just trying to be helpful. Was that rhetorical or do you want an answer from governor richardson. Is there an answer . Yeah. Look, wikileaks has baseball no fan of the United States or clintons. The russians are the main hackers. The timing of the leaks happened at this time. They wanted to disrupt what was going to be a very positive, affable convention. A question we asked harold ford what do you make of so many wall street firms supportive of dnc and hillary in this situation and not republicans and trump. What does that say . Optically, arguably thats actually not a good thing for Hillary Clinton, the fact so many are going down to philadelphia. I think this is sort of a beltway Convention Story that is going to end. It could be that these private equity firms, these Big Companies, they smell a winner. They smell they are probably going to win, so they are there. We give harold ford a hard time being on the payroll of Morgan Stanley. There is a story members of parliament blaming Goldman Sachs for big pension scandal they have got there. The whole Malaysian Bank scandal. Ted cruzs wife gets escorted out of the rnc last week. They are yelling Goldman Sachs at her. Is there any discussion at the board level on which you sit about goldmans reputation at this point . No. Im on the honeywell board. A discussion were doing well, a great return for stockholders. Not on Goldman Sachs board . No, im not. I have no relationship at all with Goldman Sachs. Im so embarrassed. Im so apologetic. Wow. Who is steve completely diabolically crazy. On the report. God, i screwed that up. I apologize. Governor and senator, thank you. Still to come Guggenheim PartnersAllan Schwartz will join us. Check out futures now. Among stories front and center verizon announcing the deal to acquire yahoo cash price 4. 8 billion combined with aols unit, does not include stakes in alibaba. Ceo Marissa Mayers planning to stay. We asked tim about that. Whether she would be staying, he said theres meetings to be had. But Marissa Mayer saying that. It is down closer to when you were talking three or four, didnt include realize. Did not include realize. Worth a billion dollars. So its 3. 8 if you compare apples to apples. Could be more. Down below. Original bid verizon put in 3 billion x. Then they went up, added real estate plus went up on the bid. Exactly. Okay. But not just a clear 5 from 3, its 3 plus the real estate equals 4. 8 plus patents. Correct. Still not near what people thought. Not near 10 billion but that might have been a pie in the sky number. Cheap enough, something to work with. If there are a billion in synergies, he didnt want to say, but some analysts have speculated, thats how you try to make some of this math work. He is doing this as well. Talk about amc building its own Carmike Cinemas. The chain worth 10 more than the all cash deal of 30 per share. Of course owned by china, ceo, want to control 20 of movie screens in the entire world. Finally, it is a big week for world Central Banks. Federal reserve set to kick off a twoday meeting. That starts tomorrow while bank of japan meets friday, thus expecting fed to stand, boj will announce some stimulus moves. Michelle. Our guest this morning Mark Weinberger, chairman and ceo. Glad to have you here. We havent let you get a word in edgewise this morning. The election, is it affecting business at this point . Another one of the major uncertainties, michelle. Were in 150 countries, affected all over the world. Elections in the United States really focused on, the most important because United States but going to be election this is coming year in germany, france. Brexit was a big deal, china, all uncertainties are great. Whats unsettling, this development in the dnc, i was at the Rnc Convention last week, theres more discussion outside the convention on the issues than in the halls. Thats leading to this antiestablishment feeling. What do you mean more discussion about issues outside. Well, i was on a number of panels, talked to a number of members of congress, Business Leaders talking about what we should do on trade, what we should do on tax reform, even immigration, a hot topic issue now. Infrastructure, get the economy going in the shortterm. You didnt hear much of that discussed in the halls of the convention center. Youve got to get elected to govern. This is true. Romney, 47 , he had a lot of good ideas, a lot of good policy ideas. Hes somewhere in utah thinking about policy ideas at this point. I hate trump. Its going to be the same at dnc. Its going to be all about trump, not policy. Would you want to push the policies in their platform . I wouldnt even mention it. No. But the point is clearly trump is established and he can tap into the anxiety of American People. The antiestablishment feeling were talking about today. Eventually you have to do something to fix it. If youre in office necessarily. Youve got to get in office. Do you know how you get in office . You get in office based on a lot of negativism, talking about where things are, what the other party is doing. Eventually youve got to turn that corner. Whats it mean to me . The choices are clearcut in that respect. Taxes need to go up or down. Regulations can either be increased or decreased. Government can either be neither tripled the size of it now or try and cut back where people is. Do you think American People thinking about who is running dnc and they care about that. Bernie sanders people. Bernie sanders did. What do you make of for decades free trade was a given. We were moving towards a world where there was going to be more and more trade. Now both parties are suddenly against free trade deals. This one of the real travesties of the lec, talking down free trade. Free trade its easy to make a case when you have a factory shut down in one district, jobs move to mexico and its bad. You talked about iphones, how many people buy iphones. They are made by 800 Different Companies in 30 countries. Its made all over the world. If you couldnt have trade and opportunities to build the iphone, all in the United States, it would be unaffordable to the average american. We havent done a good job to explain why trade is important, lower taxes is important. That trust isnt there right now. We hear crows complain all the time that china doesnt play fair. That they do all kinds of protectionist things, have we not countered them properly when those instances have come up . Is that partially why were where we are now . The bottom line is the u. S. Is an open market. These trade deals are made to allow us to be able to negotiate in other countries where theres not a rule of law, no patents, 18,000 terrorists tpp would go ahead and remove. This is about the 95 of consumers who are outside the United States, 80 gdp outside the United States. Trade deals are supposed to open those markets for us. The state Enterprises Many ways are getting subsidies we dont give our companies. Thats what these deals are about. But thats what these deals are about. You can argue they werent done the best they could be done. Remember, its all a negotiation. But turn your back and say build walls whether figuratively or not and say we dont need markets. Thats not what said. Said free trader and wants better deals. Thats exactly what he says. Throwing walls in with antitrade discussion. Figurative walls, terrorists on foreign good not bring to the United States thats a problem. Both sides are antitpp. Absolutely. Thats an issue. Sticking around for the rest of the hour. All right. Two hours. Until 9 00. Until 9 00. Comingp corporate story of the morning verizon buying yahoo s core business 4. 8. After the break guggenheims Alan Schwartz joins us. Squawk box will be right back. They mayant the latest products a services, but they demand the best theyre your customers. And by blending physical with digital, cognizant is helping 8 of the 10 largest u. S. Retailers meet their demands with more responsive retail models. Ones that transcend channels and locations, anticipate expectations. Creating new ways to engage at every imaginable touchpoint. Its a new day in retail, and together, were building the store of the future. Dital works for retail. Lets talk about howigital works for your business. Welcome back to squawk box. Monday morning deals verizon buying yahoo s core Internet Business for 5 billion, 4. 8 in cash. Well talk more about m a landscape and politics, guggenheims executive chairman Alan Schwartz is here and guest host all morning chairman and ceo Mark Weinberger. Thank you for sticking with us. Congratulations. You were behind this deal. One of the advisers. One of the advisers. What does this particular deal say about m a landscape right now or does it say anything . I dont think it says a lot, an extension of the company strategy. Its not a large deal. It doesnt say a lot about general m a. We were talking about politics, uncertainty in the markets, in the middle of the Convention Season and whether thats playing into uncertainty with m a and deals. Goldman sachs when they came out with earnings didnt look like nearly the pipeline they said so a year ago. Where do you think we really are . I think that everybody is still very active in dialogue about transactions. I think the m a environment is still relatively strong but its harder to get deals to the finish line. Were seeing more deals fail because of regulatory problems. Therefore its slower to get to a deal because you worry about regulatory. I think m a landscape is okay. In terps of the marketplace at large when you think about post brexit, where do you think we are . You talk scott is better on that but we talk all the time. I think whats happening is youre saying lots of signs the risks of capitalist system are higher than they have ever been. When you get a headline like brexit the market reacts. Then people sit there and say, gee, i dont know if those risks of going to show up in the next year or two. If i want to sit out the market, i have to take 0 or negative Interest Rates. So whats happening is youre pushing the market shortterm to have all assets priced as if risk was low. At the same time you would normally think the risk premium would be growing. Longterm i think that has different pitch. When you get inside the boardroom, does anybody say, lets wait until the election is over and see what happens . Big Multinational Companies trying to figure out where trade whats doing to happen to trade . Right. I think that the elections around the world are having an impact. I think we focus on our own election but theres a lot going on in the electoral land cape. I dont think its so uncertain in some ways people dont even know how to think about what the implications are so you just keep going on about your business. Go ahead. Just a question caulking about what you can do outside between elections. One of the things we spent time working on talking about panels and elsewhere unemployment and what business can do outside of the government to kind of do our fair share. Robin hood is an organization heavily involved in a lot of different things. Can you talk a little about what your passion is and why around that issue . Ive been ey is one of the leaders in the corporate community. Im looking at ways to improve workers lives and productivity at the same time. I think a lot of people think those things are separate but they are actually conjoined. So ive been spending a lot of time over the last five or sakes years on trying to coalesce around how to deal with income inequality. What were seeing and we were talking before, the mass of the population is starting to reject a notion of a capitalist system. If we dont make capitalism the way reagan and jack kemp said it should be, if we dont make it inclusive, Woodall Rodgers in trouble. Robin hood is great, proud of what we do, but instead of trying to give to charity were trying to involve government and programs we see actually work through the research we do. I think what ey is doing and others if you saw jamie dimons article, walmart, i think business looking at you have to look at the quality of your labor forces work life. Productivity is the key. Without productivity when you have a peaking population in terms of growth, a declining percentage of the workforce, working able population we have to get productivity. Business is part of it, government could be part of it. Declining and people are concerned about that. Could we go back to where we started the conversation with this deal with verizon and yahoo . For so long we talked about whether or not the distribution versus content. Do you own the pipes, what goes down the pipes . Should you own both. Comcast has decided they will own both. Now were looking at a Telephone Company thinking the same exact way. Do you see more of that coming . Its great for your business, alan, we see m a continue to go forward. More than 50 of clients say they will increase deals over the next months. Business model conversion is a big reason for it. Theres lack of growth. This is a way to get growth and synergy. Those are the three primary reasons. You will see Business Model conversion happen in industries across. You mentioned jamie dimon oped, they are going to be raising minimum wage for employees. I applaud it, everybody here applauded it. However, you go online and the number of people who were critical of what he said and said not enough, to me it was surprising. The question is how much do you need to move the needle to actually move it . I think its a good question, part of the reason people like mark and i have been on this for a while. This problem has been building for many, many years. Youre not going to snap your fingers and fix it but youve got to get started. By the way, wage is one component but actually not the main driver. Growth. Its not easy. Thats correct. The most amazing thing that you said was that if you heard that aol and yahoo were merging, its a really small deal, really doesnt much to anyone. Thats an amazing statement. Thats not the statement. Thats not the statement. Said what does it mean overall its a 3 billion deal for the former yahoo and aol has already got its amazing both aol and yahoo from 10 years ago are now getting together. 5 of something. Its amazing. But watch what its going to become. Under marni and tim its going to be a big company again. Coming up well be right back. Where, iall of this, is sff that tters . The stakes are so high, yo finances, your futur how do you solve this . You dont. You partner wi a firm that advises governmes and the fortune 500, and, can deliver insight person to pern, on what matters to you. Morgan stanley kicking off convention, a former nato commander serves as dean of the Fletcher School of law and diplomacy at tufts university. Admiral, thanks for joining us this morning. At least today were talking about politics. Its gotten to the point where i saw this morning an incident down in florida, i had a feeling but doesnt look like thats the case this time. The time between incidents seems like its shrinking. I dont know what to expect. Nobody knows but over the next three, four, five, six months, i dont know what to expect in terms of incidents. As i look at the violence landscape, i think youre going to see trending up variety of incidents as actors try to influence our politics at home. I dont think its too much of a reach, kind of a different category, at least examine the story bouncing around today about the dnc hack, is there a russian connection to that. I think there will be a sense of trying to get into our politics and we should stand by for that and remain true to our own analysis of the situation. Its joe, will have a question momentarily. Depending where you sit with whether it was the russians or not, i immediately thought, wow, if they had this info, i look at the whole Hillary Clinton email situation differently, im absolutely sure they must have had that as well. As the saying goes so often crime is where motive meets opportunity. I think anybody looking at this would have to be pretty suspicious. You also have to ask your self is more going to come . Admiral, help us with the pick of kaine and how you think about it. Obviously your name was in the ring, so i assume you have a little bit of a dog in this hunt. Also the sense that he is in the middle and whether somebody either more left would have helped incite the base or somebody with your historical experience when it comes to security and the like would have been more helpful. You know, ill leave the political commentary to others. Do i nor senator kaine, i do think a lot of him. Hes solid, smart, centrist. I escorted him on a mission to iraq some years ago. He knows that part of the business very well. I always feel as though as a nation we need a centrist approach. As you probably know, a registered independent, have been my entire career. I believe in the center in american politics and i think senator kaine appears to be cut from that mold. Hes one of 3 that arent one side or the other. All battling for those 3 . Appreciate we have to keep it short, appreciate your time. Great to see you. When we return, rlj company at the convention. You debate want to miss this. Marissa mayer joining me and the game 9 0015 joining squawk on the street. Squawk box rushes in just a moment. Squawk box will be right back. The search is over. Yahoo striking a bill for 5 million. Where does this leave Marissa Mayer. Political chaos and scandal rocking dnc. Well ask long time clinton friend what it means for the future of the Democratic Party. Calling all iphone users, the company about to hit a major milestone this week. Final hour of squawk box begins now. Live from the most powerful city in the world, new york. This is squawk box. Welcome back to squawk box at cnn, first in business worldwide. Im joe kernen with Andrew Ross Sorkin and michelle carusocabrera. Joseph richard kernen. Jrk. Do you loic havingike having pretentious name . Why cant you be like andy sorkin. Just be glad i dont have my married name. Joseph. Futures right now, they were up, down less than 5 points on the dow, less than just over a quarter point s p, down 2 nasdaq. Up sharply higher earlier, moderated, why we pulled back a little. Ftse just turned positive but fractional gains across the board. Lets tell you about some of todays top stories. The big one it is official yahoo buying verizon, deal expected to close First Quarter of next year. Ceo Tim Armstrong and verizon exec marni breaking the news with us. Here is what they had to say about the future ceo Marissa Mayer. Unlike aol where we had an opportunity to plan for leadership and things tim talked about in terms of synergies, this has be been an abnormal process where we didnt have a chance to define leadership. Tim and i will be out with marissa and her Leadership Team and the rest of her organization and well be planning those. Well come back when were ready to talk about the leaders. At this point, tim is leading this integration for us at verizon and were very pleased that hes doing so. Marissa mayer joining us. She was out on tumblr in the last hour saying she intends to stay. Well talk about that as well. Nintendo tumbling after pokemon go, seemed like such a success, might be in terms of eyeballs but not in terms of finance of its going to have a limited impact on earnings, stock closed down 18 in trading, the most loufd in daily limits. The most its fallen since 1990. Political news, Democratic Convention kicking off in philadelphia. Ahead of that gathering dnc chairman Debbie Wasserman schultz has resigned, this coming after the email leak over the weekend showed dnc leaders worked to undermine campaign of Bernie Sanders during his primary fight with Hillary Clinton. A few stocks on the news, Carmike Cinemas bought by rival amc, improved deal 33. 0 per share in cash and stock. Thats more than 10 improvement over amcs original bid. Kim bully clark reported profits of 1. 56 per share, estimates beating street forecasts. The company said it performed well in a challenging economic environment. The Hershey Trust has agreed to make significant government changes according to dow jones. Those could boost chances for previously rejected 23 billion takeover bid for hershey by internation international. Saying drugmaker has a broad and underappreciated pipeline. Democratic National Convention kicking off in philadelphia today. Joining us Robert Johnson founder and chairman of rlj company, also a cnbc contributor. Good morning to you. Good morning, andrew, how are you . Great. Weve been talking all morning about this little bit of controversy as this thing starts around what Debbie Wasserman schultz should do around resigning. Do you think she should be speaking at this convention . Its not my call on that one. I think the convention should focus on, of course, nominating secretary clinton. I think she is the best obviously prepared candidate to assume presidency and be commander in chief and rebuild the economy and restore confidence that the American People have in the way this country is going. So i dont want to get tied up with the Debbie Wasserman schultz issue. How much do you want to see her and the party talk about a vision for what the party is and where its going as opposed to comparing and contrasting its self, if you will, with donald trump . Well, first of all, let me say this. Ive known Hillary Clinton for more than 30 years. I know her personal. I know her character. I think she is a leader that the American People can trust, a leader the American People can have confidence in, who can look at the problems in this country, bring people together, whether its economically, socially or racial issue or cultural issue and also provide the confidence that she can manage the International Affairs of the nation. So when you have somebody, as i know secretary clinton, who you can trust and who you know has all of the talent, managerial, election and emotional to run this country, youve got to be confident shes fog to set a vision for the country during her acceptance speech thats going to be in the best interest of all americans. Bob, this is Mark Weinberger here. Just a quick question for you. Weve been talking about what business can do on the sidelines. While Convention Going on figuring out policies and communicating with the American People. Youve instituted something in your company rlj rule took from rooney rule, outstanding helping minorities build diverse fireworks for us. Can you talk about that, whats going on . The good thing about that, its a rule thats proven its effectiveness in the nfl. When you have minorities who are now coaches and gms and taking them to the super bowl, it proves minorities can go to the highest level in sports. I think the same thing is happening in corporate america. I know when i talked about the rooney rule years ago to president obama, the white house has now encouraged businesses to get behind rooney rule. The ceo of xerox announced. I got a letter from brian roberts, who ive known a long time, saying they have always supported the notion that minorities need to have an opportunity, get the door open, let them perform and compete at the talent level. I think this country would be far better off in improving africanamerican employment at the higher levels, what i call the ceo and cfo levels and executive level as well as proving to this country were better off when everybody is given a chance to compete in maintaining and strengthening the u. S. Economy. Hey, bob, back to politics for just a second. When you think about Hillary Clinton, one of the things weve been grappling with is the whole move, the entire country to be antiestablishment. Thats really what has supported donald trump to this point. Should Hillary Clinton just own her sense of being part of the establishment or do you think she has to move one way or the other to try to be Something Else . No. I think what hillary has to do is run on a very brilliant record that goes all the way back when she was involved with Marion Edelman and Childrens Defense Fund championing the need of children. She needs to talk about things she has encountered in her brilliant career first lady senator of new york, secretary of state and someone who has a clear understanding of how to bring people together. When she is elected, i think youll see the tone and temperature of the country move away from who is tabment, antiestablishment. You can almost argue being the first female president of the United States is probably as antiestablishment as you can get. Why has that not gotten traction, do you think, thus far . I think for a couple of reasons. People are now running not on antiestablishment, per se, but on just plain fear that the establishment doesnt care about them, the establishment has no interest in protecting their needs as families, as workers, and as citizens. So antiestablishment has become, in may way, andy, the pejorative the belief among every day working class americans that nobody cares about their problems. Nobody is trying to do anything to make their life better. Thats where i think secretary clinton can make a big difference by talking about what shes going to do to make america the people of americas life better. Play against big business in the reason we ask, so many Big Companies didnt go to the rnc. They effectively boycotted philadelphia, however, is going to be chalker block from the business community. Whether that speaks to the rest of the country, this is business as usual, as opposed to something very different. As a business person, ive been one all my life as an entrepreneur and business person, i can tell you from my experience with secretary clinton, she understands that there must be a balance between business and consumers, between the profit motive and operating in the best interest of the community. I think all the businesses that are here are ready to embrace that notion that you cant be a successful business unless, first of all, your local community or region is successful. By extension you go to the country. Then i think any business person who looks at the world in a global scheme understands that the globe itself from business has to be one of countries working together not only for Security Issues but also to make sure that the economy of each country is able to expand and grow. Bob, we appreciate you coming on this morning. Have fun down there in philadelphia and we look forward to see you soon. Dont forget to tell my good buddy joe hello. Hes right here. I love you, bob. Im just we all want the same thing. Im going to let you have your say. Im not going to argue with you about a brilliant career or any of that stuff. You had the floor and im letting you have the floor. I respect your opinion. Thats all thats all i have to say. Went up a little. Im trying to think accomplishments as a senator. Will whole time were doing the interview hes giving me look. That one, hard hitting one, why do you think her being a woman hasnt been brought up enough this time around . Not getting traction. Why isnt that getting any traction. Thats when i looked over that was all bob. You didnt have to bring me into this. You were out of here. You were done. I know what youre going to do when you pull that blue curtain in the voting booth, joe. I know it. Im thinking i might know what youre going to do. We have our discussions we may go a little more centrist from the here on out, from the last Administration Even if it is, hillary, right, bob . The center of this country is where americans want to be. I think when its all said and done thats where leadership will be. Thats why im supporting hillary. I know what you think. Youve told me. Shes much more centrist. All the stuff she says you dont need to worry about. Shes going to govern like bill and its going to be private sector. Right . Shes going to govern in the best interest of all americans as shes done throughout her brilliant career. Private sector, you need a private sector to generate jobs. How many jobs have you created, bob . Tens of thousands of jobs. The thing im most proud of ive created more africanamerican millionaires than anybody in the country because ive given them an opportunity. When given an opportunity, they have succeeded. Exactly. Thats why im not going to argue with you. We agree. Thank you. Great to see you. Guys, thanks. Byebye. Thanks, bob. Private sector. Who are you going to tax . Hes a great he is a great man. Hillary clinton im not saying crazy to do that but crazy to think hes doing Something Else. Likes private sector. Government doesnt thats not the answer. Now back to the days top corporate story verizons 4. 8 billion bid for yahoo aol ceo Tim Armstrong joined us in the last hour. For us the yahoo deal and relationship, how do you get more scale, the team at verizon, aol, yahoo well set the business up to compete at a completely different level than any of our businesses have been able to do alone in the past. Joining us now on the squawk news like kara swisher, recode executive editor. You can get into the nittygritty with andrew, hes been following the deal closely. After facebook and google came along, the notion that aol and yahoo would merge in like a 3 billion, 4 billion deal, its just thats what struck me, that those two names from the past not to say they have fallen so far, but all of yahoo s why not. Yeah. Thats sort of what i was saying. Wow. Someone on set go ahead. Its unbelievable, isnt it . Well, you know, its interesting. I was talking to Tim Armstrong, aols head, talking about how many times ive written they almost merged even predates him, this idea of bringing them together. I think one thing he said that struck me that was correct when we were speaking scale is imperative. You really cant not have scale in this market right now. While number three to facebook and google and a distant three, lets be clear, they will still be the number three. Right . Youre not going to be number six or seven or eight. I think in a lot of ways with the backing of a big Telecom Giant like verizon, its the only Way Companies like this can move onto the next level. Obviously youve seen Marissa Mayer, ceo struggle mightily to make another relevant again and its nearly impossible. I dont think its impossible. I think they made a lot of errors along the way. At this point its impossible so at this point a merger is the only solution. I was wondering, google and yahoo are 50 of those types of ads and this combined they are 5 . Does it do can they get it to 10 . Yahoo 005 . Its execution. Everything is execution in this world. You never know where the next innovation is coming from. One thing yahoo has been bad at especially under mayer is innovating. No new products. Unfortunately for her the cycle is just too fast and they havent hit the right notes on almost anything. So i think its just sort of a brutal world as a Public Company when youre not hitting on all cylinders, and they werent. They werent able to turn it around. Aol and Tim Armstrong super smart having sold to verizon last year. This sort of gives even with verizon aol needs even more heft. I think the idea is to have multibrand strategy, they have all the yahoo properties, all kinds of properties. Then on the back end have the ad tech and publishing in the background, all common. Its a way to differentiate your self from facebook and google. These still have large audiences. So what can you do with these large audiences and how can you differentiate your self from these massive power like facebook and google, which is super hard. Its not impossible. Kara, were going to have marissa on at 9 15 this morning. When you look at her legacy, i know you said there are things they could have done. She was clearly delta bad hand. Started out, this was always going to be a turnaround job but how do you measure it . I dont measure it very good. Ive been a critic of this particular ceo. They are going to see this. Thats going to be what you are going to fall for, it was too hard to do anyway. Why did she do it . Paid a lot of money. A lot of errors, mess up with sales guy, enormous amounts of shares. To me shareholder money you dont pay somebody 100 million to do a bad job, the case of the guy they fired running sales. There was a lot of mistakes along the way and frittered away a lot of time on a lot of things. She moved from search to media, this, that, probably a more focused ceo might not have done that. Michelle here. Being owned by verizon give them any competitive advantage when it comes to understanding advertising or distribution . What does that do for them . Well, i think they are owned by a big company with lots of money and lots of ability. I dont think verizon has any mobile advertising skills at this point. This is what they are buying. Thats why they bought aol. To talk about someone who has got to differentiate in this market, verizon is up against facebook, google, apples and they have to have content and ad check and all kinds of things. Verizon has to move into the Digital Space and this is the attempt to do so. Can you see tim keeping a place for her . She says she wants to stay. No. She said its very carefully worded. She says shes planning on staying to lead it into the next chapter. Its very carefully worded. I dont think theres room for both of them at the top of this Company Unless they structure it. Tim was adept at saying were going to get in there and do strategy and structure and at the end well see. These are two very highoctane executives, i dont think theres room at the top for both of them. I think shes going to see it to the next chapter and she has to stay until its completed, which is six to mine months. By the way, verizon cant run yahoo during that period. Shes still running yahoo in this period. So yes, she has to stay. She probably got contracts and being paid. Thank you. Recode. Coming up u. S. Strokes riding a fourweek winning streak but are valuations warranted . Well evaluate it next. Sic play the first stock index wasd over 100 years ago as a benchmark for average. Yet many people still build portfolios wi strategies that just track the benchmarks. But insting isnt about achieving average. Its about achieving goals. And invescbelieves doing that today requir the art and expertise of hhconviction investing. Tranation . Its te to bench the benchmarks. Can a toothpas do everhi well . Th clean itellike i had just gone to the dentist. My teeth are glowing. Ey are so white. 6x cleaning , 6x whitea the certain spots that get very sentive. I really notice a difference. And at two weeks superior sensitivity relief tsensodyne i actually really li the two steps st 1 cleans and relieves nsitivity, step 2 whitens. Its the whole package. Os done this. Crest healthy, beautif smiles for life. I have an orcogram wefor owen. One. Thats me. You should hire stacy drew. Sheants to change t world with you. She can program jet engines to talk d such. Her biggest weakness is she cas too mu. Thank you. Myriend ally wants job at ge. Mine too. Im a wise elf om a far off shire. Nd sanjay patel is who yousho to a great schooliously thot and shes really loyal. Yoshould give her a shot. Sanjays a team player and uh. Stocks near alltime highs as busiest earning seasons but are stocks warranted. Mike santoli joins us with that story. If you care about generally accepted accounting principles of the past year, its 25 times earnings. We got there about a week ago. Thats pretty expensive. Only a few gold markets have gotten much above that. However, if you want to pivot toward forward earnings, what wall street is expecting, 17 times earns. Thats about 88th percentile of history says Goldman Sachs, only more expensive 12 of the time in the last four years. The question now why is it that extensive and do low Interest Rates justify it. Low Interest Rates explain it but dont make it more rewarding to pay up these levels and get great returns in the out years. Here is the sector break down, yield seat beltors trading and driving overall market pe higher. Cyclical basically benefit from rebound in Earnings Growth right now that doesnt look expensive. Perversely unlike pastime based on unrealistic expectations, right now, michelle, all about the yield, all about people grasping for mitigated stocks. Forward earnings are not. 25 times gap. Thats number one. Energy. What if you back out. Did that 53 times forward earnings for energy. If you back out energy, you back out the yield sectors, consumers utilities, youre at 16. Domestic cyclicals, 15. But your whole setup was once again why dont we take out the cheap sectors and see what market trading at. Take out financials, look pretty rich. Put that up again. I think 25 is totally misleading number portfolio but if you look back, if everyone says historically average 15, the average of 15 on Gaap Earnings last year, if average not on forward basis, forward 13 or 14. Feels like 17. Look, we got to 34 in the late 90s. Its not a stretch that we can get there. The fact no one is complacent. When you start coming in and going, instead of are stocks overvalued, undervalued. The reasons they go higher, their being cheap is not one of them. The real estate sector only at 20. Thats because telecom at 15, so the others are higher. It may be a whole new era of another 1 or 2 . Valued off dividends and pe stays high. Maybe wrong on that, too. All right. Mike has a full article on cnbc. Com pro. Dont miss it. Coming up, a billion is the new million. Apple about to hit a major milestone ahead of its Earnings Report this week. Well tell you what it is after the break. Welcome back squawk box on cnbc. Here is whats making headlines this hour. Its official verizon buying yahoo for 4. 8 million. The deal expected to close in the Fourth Quarter of next year. We should tell you Marissa Mayer going to join us live on cnbc. Thats going to happen 9 15 eastern time. Tesla and solar city close to working out a merger deal. Elon musk, the auto and solar company, although hes recused hills from the process. Apple about to hit a major milestone. Tech giant could sell its billionth iphone this week. 1 billion is nearly the entire outlet of the japanese market over the past 16 years. Apple out with earnings tomorrow. Analysts believe 40 million iphones were sold during that quarter. Were now just 105 days away from the election. A new poll finds republican president ial candidate polling about even with Hillary Clinton after the gop convention. Joining us house ways and means chairman congressman kevin brady. Congressman, how are you . Its good to see you. Good morning. How are you doing . Good. Youre from texas, arent you . Yes, sir. Woodland, texas. Junior senator, whats going on down there . That was crazy . Were you there . Were you sitting there . I was. I was on the floor with the texas delegation during that moment. But look, who are is my thought. We have pretty strong personalities in our party. Thats a good thing. At the end of the day were going to unite, not just personalities in our ticket but ideas and tax reform and securing our borders and creating a much stronger economy of thats whats going to unite republicans and draw a lot of democrats and independents to the ticket. We had someone earlier with a straight face make the case the cruz incident, the Bernie Sanders email wikileak supporters are probably not as upset as ted cruz supporters. Ted cruz supporters, i dont think of them the same way i think of that huge mass of Bernie Sanders supporters and now are probably saying, all along we knew this was going to be the outcome. They told us it wasnt true and it was true the whole time. Its hard with a straight face to compare Bernie Sanders to ted cruz by almost any measure. What i saw at the convention was the convention unified each day and got stronger. I think at the end of the day especially as i returned to texas this past weekend, look, people are uniting behind the trump pence ticket. They know if we want to fix things, beyond status quo, especially on tax code we need them to get it done. Hope youre doing well. Im good, mark. Good. What kind of discussions are going on outside of the convention when youre there . We had some time together with a panel large group of people talking about blue print and some of the things in it. Maybe you could talk a little about it. I challenged you where is it going to go, how is it going to get down, become law . We talked about it a long time. These are some of the substantive discussions during the conference. There was a lot of those. I still think president ial election isnt a contest of personalities but a contest of ideas. People know our tax code is broken, the economy continues to be second rate. Other countries seem to grow stronger. We grow weaker. Fixing the broken tax code is the top of our priority. For House Republicans who unveiled this blueprint, look, this isnt an exercise. Were going to listen. American people and businesses through the rest of the year continue to make it better. Were preparing this blue print for a vote in 2017. Where were going is essentially we want a tax code built for growth, for job growth, salary growth, growth of the u. S. Economy. Our goal is to leap frog america from dead last among global competitors, excuse me, up into that lead pack and we do that with some pretty innovative designs. Sir, its michelle here. Hey, michelle. Comes from democratic and Republican Convention, the democrats end up with Hillary Clinton in large part because the superdelegates. Going into it she had a huge advantage. They ended up with establishment candidate. Do you think its possible that in the future the rnc, which we can all admit the establishment tried in every step to stop donald trump, do you think we see changes at the rnc rules level to make it possible in the future the establishment totally controls the process . Well, i hope not. Actually look, whether donald trump is your first choice or another choice, the people spoke. Our Republican Voters in texas throughout the country chose their candidate. Look, he beat 16 proven vote getters, which tells you something about his strength and his message. So yeah, i hope we dont go that direction. It may be a bit chaotic the way we do it, but at the end of the day, no one can argue, look, the people spoke in the republican primary. What ive seen back home here in texas, were very strong in support of senator ted cruz. But back home, what ive noticed this weekend as well is a very strong unification behind our ticket. Congressman, last but not least, im sure you get briefings on how the down Election Races are going. What i saw was a lot of senate races were close and donald trump was going to swing it to the democrats. Thats not happening. You think the republicans keep the senate and the house or keep the house not the senate or both . Where are you with what youre seeing. I think we stand a very good chance of retaining both. Here is why donald trump really does challenge the status quo. People sick of the direction the government is going. He draws democrats, independents in some areas. In some states he doesnt. He pushes they will away, obviously. But look weve got Senate Candidates especially, inhouse candidates independent, represent the values of their district. They are extremely effective on their own so they are running campaigns based on their state and their district. So i feel pretty confident done right, worked hard, republicans can retain the house and senate. That also gives us a very strong start. Regardless of who is in the white house on tax reform which again only happens once in a generation. Boy, people are tired of this economy. They are tired of the way we have to pay taxes. One last question on trade we talked about how Neither Party wants trade, we do have a house leader that does want to get tpp passed. Do you intend to bring it up for a vote in do you think its going to happen, any opportunity for the year is out. I hope we can. Were going to let support for the agreement drive the timing of it. I think longer we wait, the worse economically we are. Half middle class customers on the planet are in the 12 or going to be in the 12 countries that make up the transpacific partnership. We need to be selling america. As you know, its not enough to buy american, we need to sell american around the world. That region holds a lot of customers. Selling into it now, selling it on american trade rules not chinas. Great, congressman, thank you. Thank you. Okay. News alert, the Company Behind red box and coinstar is being acquired, Just Announced a deal the outer wall says will be bought by Apollo Global management worth 52 per share in cash compared to outerwall closed 41. 90 per share. Coming up, get ready for earnings palooza. Dow components and s p 500 Companies Set to report this week. Plus mohammed el eian on the markets. Connected vices. Connected vices. Just 30 llion . A bold group oresearchers and computer stist in silicon valley, had a breakthrough they cal. E machin it cngedomputing forever. And its been part of every netechnology for e last 250 yrs. This year, hewletpackard enterprisething will preview the machine d accelerate the futur sest trek yond. Will preview the machine coming up a busy week for markets, earnings and Central Banks, bank of Japan Holding policy meetings. Squawk master Mohamed Elerian will join you after the break. Youre watching cnbc was were first in business worldwide. Eryt thats w i have tharca cardrocapitaone. Witht, en unlimited 2 cashack on alof my purchang. And that unlited 2cafr srk means thsas of dlarsach argog backnto. Which ad fuel to my bottom li. What in your wallet . A busy week for markets, a parade of earnings, business meeting, joining us Mohamed Elerian, business adviser. Good to see you this morning. Thanks for getting up early. Thank you, michelle. Are we ever going to care about earnings or is it still about Central Banks. Its about both, earnings and ability of corporate sector to put cash back into the market. Just announced yet another m a and also about Central Banks especially outside the u. S. Continue to inject liquidity. I guess joe has mark has a question for you. Mohamed, you talked about how Federal Reserve can do so much, really have fiscal reforms. Europe weve seen how far they go, fiscal reforms. Ask the sale thing, do you think they will have any effect or can you talk a little about that . I think people are realizing now we have relied too much on central bank. We had yet again over the weekend come up and say we cannot continue with this very unbalanced policy mix. Unfortunately the politics doesnt allow the transition, doesnt allow transition to something more comprehensive. We are going to continue to rely on Central Banks, going to continue to create this massive gap and continue to increase the probability of what i call jump conditions where things become nonlinear. We saw it with brexit, we saw it with turkey, with 30 of Government Debt in negative nominal yield territory. This i an interesting time Going Forward. In the shortterm markets are going to care about cash. Ask, show me the cash and cash is coming from corporate Balance Sheets and Central Banks. All general now but i remember when you were em. Does this guy in turkey realize International Markets can bring him to his knees and cause a massive currency crisis there . That market has been hit so hard in the wake of this huge crackdown after the coup. Should we worry about bigger problems emanating from turkey based on what happened there or is that going to be contained . Whether he realizes or not, i dont know. What he does realize is he has a window now that has been created by this failed coup in order to increase his hold on the country. Hes doing it without any hesitation. What he has to be careful of, and this answers your border question about the consequences is that turkey has a very large current account deficit. It depends on inflows of capital, portfolio investment. Outflows. All outflows. Hes going to have a reality check with the balance of payments pretty soon. Thats going to have some consequences beyond turkey. But his focus right now is simply to reassert and strengthen his grip on the country. The reason i asked the question, the last time we were on the verge of turkey having a currency crisis it actually moved the Dow Jones Industrial ample. They had to fly to turkey, held a Central Bank Meeting at midnight, it was the middle of the night when they announced they were finally going to raise Interest Rates to try to stem the outflows. Have we moved beyond that, though, global . Yes, we have. Globally we have. Why . Because investors have been conditioned over and over again that Central Banks can somehow insulate them from anything out there. As long as that belief continues i tell you, it shouldnt continue. It shows complacency but it has worked. As long as that belief continues, you can have a messy turkey situation, messy brexit, messy italian banks, you can have all this stuff adding up but its not going to reflect shortterm in the markets. Longterm were building up a lot more volatility down the road. All right, mohamed. Thank you. Mohamed elerian with allianz. The busiest yet. Were going to find out what cramer is watching. Get down to the new york stock exchange. Jim cramer joins us now. Gearing up for andrews interview with Marissa Mayer. Its sort of a its not cynical but ironic way, at least not a big major media Company Going to have its market cap go to zero from merging with yahoo at 140 billion. Not at all. I think its happening at a normal price, where it all makes verizon might be getting a good deal to put it together with Tim Armstrong and aol, right . For all we know that real estate is worth a lot of money. The intellectual property could be worth a lot of money. Armstrong has a clear vision and Lowell Mcadam and these guys want to grow not shrink and yahoo has been shrinking forever and we remember when yahoo was a Great Growth Company. This can be a Great Growth Company again with capital yes, and leadership, yes. So i think its quite exciting. I totally understand why you wouldnt want to own stock. The stock is alibaba at, you know its a shell company. Its basically 40 company. But i think this is exciting and armstrong is very exciting and i think Lowell Mcadam in his own way has a clear vision and has kind of, you know, much more sense of what the people want than people realize. When you think about the price, do you say, yahoo shareholders got a decent price for this . Did they how do you look at it . I think that yahoo shareholders are lucky and theyve been along for the ride for a while on a company that has offered no growth whatsoever, so yeah, i mean i think they did great. Unless you put like a rick hill who was on the board in charge and really grow the company which they did not do, i think this was a wasting asset and before it wasted away, you got a guy who has a vision. Tim armstrong. I dont think people understand exactly how much that guy understands what people wants but he did not have the right carriage, which was aol, but he does have the right backing which is verizon, which has all its true. They have all the money in the world. So i think its quite exciting. I think its a great merger of content and distribution and i think you will see great things from these guys. It will not go away quietly. It will advance. Im excited about it. Ta is a platform just beginning. I think the platform will be a rollout and get everybody you need to grow that thing. What did they turn down years ago, yahoo . 44 billion. I like it. Geez. 44 was microsoft. There wasnt anything done right for many years. Right. Did they turn down good cash management. That would have included the alibaba stakes so you might have been giving away the store. That was balmer. Said no. Who was running that was jerry yang saying no at the time. Probably for Different Reasons than he was thinking about at the time. How long ago . That was i want to say 2006 or 2007. Digging deep, man. So is it really . Yeah. Ill get you the date. Anyway. Were going to see jim cramer in just a couple minutes and jim will have marisa and the gang play and a lot of fun. Looking forward to that. Alibaba was back then a little bit. Unfortunately for yahoo started selling pieces of alibaba. They owned 40 of the company at one point. Think about that. Coming up, a political prediction from ian weiss, ceo, Mark Weinberger that prediction in a moment. Gain the freedom to fumble with the new water and shatterresistant Samsung Galaxy s7 active. Exclusively at at t. Our guest host Mark Weinberger, chairman and ceo of ian, i dont know who said [ inaudible ] but it better be good. I cant predict what im going to do later today, never mind that. We talked off camera. This isnt going to settle everything, is it . Theres deep rooted societal issues, major global issues how we come together. Major issues on inclusive growth and income inequality. Were not talking about that yet. Whos going to run the dnc, ted cruz and how he reacts in the republican primaries. Before we come together here and globally, there may be some coming apart before we come together. You need to factor that in. Brexit was the start. I dont its not necessarily in each individual countrys hands. It has to do with how much, you know, what happens with the immigration issue over there, terrorism, isis, everything else. You could see this could be the first domino in the disillusion of the eu theoretically. Im more optimistic than that. A quarter of a Million People in 152 countries affected by this. We have people sitting in the uk wondering whether they will keep their jobs because they may be from the eu and vice versa. Real world issues that result from all these decisions and that was a true 52 mark. That was a 5248. I dont know what germany would be right now. I dont know what france would be now. Yeah. Austria. Austria. Do the math on the referendums in each one of those countries. Theyre not doing referendums but if they did, im not convinced they would win. Right. But the problem is theyve only identified the issue, lack of growth. We talked about this earlier offline here but the solutions arent necessarily right. They dont know what the parties who are antiestablishment are for. They know theyre not getting what they want from the existing leaders. Unelected bureaucrats telling them overriding parliament and overriding the english courts about what needs to be done. And the current leadership hasnt led to the growth either. They failed them. Right. Its true. But honestly, if you think about the world today and thinking that somehow nationalism is the answer and putting up and saying we can do it within our walls and dont need each other, economically thats miltly wrong. Russia and china enter into the asian union and same currency and fiscal never going to happen. Nationalism still exists everywhere and if youre going to become youre going to merge, like if we were to merge with south america, how do you think the United States would do . You will certainly have countries, nationalism will be around. But we have to learn how to tap into those markets around the world for our own growth and exports and opportunity. I understand. Thank you, sir. Great to be with you. Join us tomorrow. Squawk on the street begins right now. Marissa mayer 9 15. Back in a moment. Good monday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer at the new york stock exchange. Final week of july and it promises to be busy. Verizon buys yahoo a fed meeting, dnc in philly, a third of the s p posts earnings. Futures relatively steady. A muted start to the week in europe and the 10year is around 1. 57. Our road map with verizon announcing the deal to acquire yahoo s core business for 4. 8 billion. Well talk to Marissa Mayer i a