Transcripts For CNBC Squawk Box 20140613

The worst days weve seen in months. The s p posted the first threeday losing streak in two months. The dow logged the first backtoback declines in a month. The dow transports dropped about 2 for the worst day in two months and all of this was, again, as you saw the crude oil prices pushing higher. The dow futures are indicated up by about 13 points. Take a look at whats happening in the early trade in europe. Red arrows there, as well. Biggest declines at least from a percentage basis coming from the ftse in london down close to 1 . In asia overnight, the markets that you are watching did see green arrows, in fact, the shanghai up to close to 1 , nikkei up close to. 8 . And here in the United States looking at the bond market, youll see right now that tenyear note is yielding 2. 95 . The dollar this morning, down against both the euro and the pound. Its trading against the yen. The euros at 1. 3572. And gold prices yesterday rallied by about 1 . That was the best day in almost three months, settled at a threeweek high. This morning, theyre giving back a little bit, down 1. 50 to 1,272 an ounce. Yesterday, we were down 1. 25, and we had 270, and i was thinking, uhoh, interest rate. The bonds were rallying. I think thats kind of good. When the market goes down, at least you dont compound the problems by saying, uhoh, here go rates because of inflation. And we talked to a lot of people yesterday. I think its oil this time around. Jim paulson thinks if there is a selloff, itll come because rates rise too rapidly. He was talking about, he was talking about the reasons its not going to sell off and saying we dont have the it was like he was saying we dont have these things present. So thats it was good news. Yeah. Its good news that the good news he was talking about if we did get a selloff, but we didnt. This is the story. Lets get more details on the issue that is facing the markets. Insurgents gaining more ground, taking two more towns in eastern providence. And president obama threatening air strikes to halt the advance toward baghdad. Our chief International Correspondent Michelle Carusocabrera is here with more on what it all means. Big headlines. The markets very worried about disruption of supply. But counterintuitively, theres an increasing possibility that the increasing situation in iraq leads to more oil coming out of iraq in the short to medium term. We will get to that in one second. Let me go through the headlines. Where are the rebels . They took two eastern cities. What exactly the United States going to do . We dont know, the president has said all options on the table, but then quickly said that didnt mean u. S. Military boots on the ground. What youre looking at here, video of refugees from mosul going into kurdistan. And some of them are going back because mosul is now calm now that the rebels have taken it. The rebels are sunni, the inhabitants are also sunni. Once the Iraqi Military disappeared, the fighting disappeared, as well. The u. N. Held a press conference in baghdad yesterday, no, actually earlier today saying something must be done. What that will be, we dont know. This is the video of the press conference. I guess we dont have it. Now, to the counterintuitive idea that we might get more oil out of iraq. Lets show you the map of iraq. Show you where the fightings been and the Oil Production is. Weve got that up on the wall. Mosul, thats where the refinery was taken over, fallujah, thats where the fighting has been. Lets go to the next map where the Oil Production is within the country. Northeast towards kurdistan, southeast in the south. Two important thoughts here, nobody believes the rebels are going to get south, that far south, two of the three Major Oil Fields are. Theres only 1700 of them, they think. They cant control the place. 1700 insurgents . Exactly. So right now, in the south, oil, no disruptions to oil supply. Lets go to kurdistan. This is super important. If you look at the possibility of disintegration, everybodys talking about kurdistan. Wants to be independent, filled with kurds. Not arabs, not persians. Generally speaking, they have wanted to export their own oil for a long time, the Central Government of iraq has not wanted them to do that. Fought them tooth and nail, taking themg to court, et cetera. Giving them too much power. Yeah. Exactly. Too much money that the Iraqi Government would like to have. However, the Iraqi Government needs the kurds right now because they have a real army, 170,000 that did not abandon their posts, that did not disappear like the Iraqi Military did. In fact, when the Iraqi Military disappeared in kirkuk, guess who took over . The kurds. The kurds are protecting that city. I spoke with the minister of external affairs for kurdistan last night. I said, is there any chance you guys are ever giving up control of kirkuk again in the future . Why would we do that . Kirkuk is safe because of us. It also gives them control of a big oil city. And now, more importantly, they have leverage. Central government of iraq, maliki needs them and so this may be the moment where he says, okay, you can export. Consider this. There are two tankers controlled by the kurds sitting out in the ocean right now. A Million Barrels of crude each theyve been trying to sell that the turks helped them get out there, but they havent been able to sell because countries concerned about legal issues. If theyre given the go ahead, now, you immediately get 2 Million Barrels on the market right away and the kurds can get production up pretty darn quickly and export it through turkey with a new pipeline with the deal they have. And they can effectively protect the oil fields theyre in charge of . Oh, absolutely. Extremely well trained. The kurds will deny the u. S. Trained them but the u. S. Definitely trained them. And theres clearly a loyalty there that did not exist with the iraqi army, which right now are mostly shia. And they didnt want to be in sunni areas where they werent wanted. Thats why a city like mosul can be taken over by 1700 rebels. I get the temporary increase in the north. Permanent increase in the north. Well, you dont know, though. Theyve got the facilities, the ability to ramp up. What happens in the south . In the south . Okay. I dont think they get there. I think production stays the same. I think the problem in the south is if you have this instability, you dont get the longterm investments. The idea was that by 2017, iraq should be producing 12 Million Barrels per day. Up from 3 million right now. That was just going to take the the oils there, theyve got so much of it. The infrastructure yeah. But if you have instability, you dont get the foreign direct informsment you need. Dropped to 9 Million Barrels per day, now 7 Million Barrels a day. What happens now . I guess when we were going to liberate the iraqi people from Saddam Hussein and the flowers were going to be thrown at our troops, i guess thats off. Thats off the table, from what i understand. The entities at play here democracy would never work because between the sunnis and shiites. People say you break it, you own it. And its so broken. I can see the president is between we used to say that between a rock and a hard place. But he really is. Because what were going to talk to who says our interests are aligned with iraq, so we probably want to try to do something. But i think the country probably doesnt have much of a stomach. Because what if air strikes dont work and we start thinking we need to go deeper and you Start Talking about boots on the ground. Theyre too violent. The president at this point can still say, look, this thing was broken by my predecessor. We were there for we couldnt try, we couldnt stay there forever. There was no guarantees it was going to work. Drew the lines after world war ii, right . Right. All you three types of people are going to live together even though they didnt want to. Lets talk to a Senior Security fellow, doug was the director for iraq at the National Security council during the bush and obama administrations. He spent extensive time in iraq, including an army tour in baghdad and fallujah in 2004 and 2005. Do you expect us to lend some help to iraq at this point in any military way . At this point . Well, weve been helping iraq militarily for some time. We sell them weapons. Were still providing some training for them outside the country and having a third party, you know, training people. But air strikes. You do . Yeah. Too early to tell. Thats certainly the only way we can impact this crisis in the near term. In the longer term, we can talk about more training and more weapons and there are weapons in the pipeline. But in the shortterm, really the only option on the table is air strikes, yes or no . And you point out that if youre a young jihadist that you arent even after you dont want to go to old al qaeda. This is your new group. These are the happening guys, right now, which is great. So this is like al qaeda 2. 0 or something. This is the group youd want to join. So theyre going to there will be a migration of terrorists of this group . I think thats been happening for some months now. If youre a 16yearold young jihadist who wants to make a name for yourself, if you want to hang out in the mountains of afghanistan or pakistan, we hadnt heard from them in months or go to fight in iraq and syria . Thats it. So do you hear what im saying, though. I thought given our the sacrifices that we made to get as far as we got in baghdad, i thought the president would be, you know, very worried about giving those gains back. But i think his base in the left would say this is not your fault, mr. President , you did the best you could. And dont, you know, dont be drawn into reaccelerating americas role in iraq right now. I think he can get by with that. I think domestically, you may well be right. Itll be interesting over the next couple of days to see how our very real interests in iraq and syria now and theyre not becoming an Islamic State and iraq and syria, thats a real thing that exists on the ground and that can push welltrained terrorists out throughout the world. How that bumps up against the domestic politics which dont want which very much want have you seen much evidence we will, in other words, do the right thing for our longterm interests versus doing the politically expedient thing for our domestic have you seen much evidence that will go the right way in recent Foreign Policy decisions . I think its still inside the black box of the lighthouse, its hard to say which way its going to come out of there. I wouldnt want to be making that decision, obviously. But can i ask . Yes. What do you think happens with kurdistan . Do they become independent as a result of this . Or get more autonomy that they want . Probably not in the shortterm. Again, i heard your discussion about the two tankers out in the gulf. Ive been watching them, you know, motor around there for a couple of days now. I see no indications that baghdad will back off the insistence that all Oil Production goes through baghdad. You know, they hired to sue anyone that touches that oil. I dont see any indications theyre going to back off that position. Okay. Hey, doug, michelle pointed out before, just taking a look at what happens beyond those, the white house said very quickly that they werent considering boots on the ground. That wasnt an option. Would drone strikes be enough to back off the insurgents . I think they may be the happy medium we find here. What we need is what the iraqis want would be f16 strikes that can destroy these insurgents in detail. Theres a case to be made that right now we might have a golden opportunity because the insurgents are out here like an army. Theyre all in one place. They can be destroyed relatively quickly by air power. We may compromise and do drone strikes that kill as you know, one or two at a time. Wont have the same decisive effect that, you know, the u. S. Air force and all its power would. And the reason we wouldnt want to do f16 and f15 strikes . You have human beings over the top of iraq. And not that theres not that anything thats going to shoot down a u. S. War plane, but there is a theoretical possible chance that a u. S. Pilot could end up on the ground in iraq. And there could be collateral damage, and i know that the white house at this point i dont think wants to be seen as bellicose at all. Where did president obama authorize some actual military use recently . Since libya . In libya, right . Right. And i was thinking about that, remember on Public Opinion polls about two years ago, the domestic economy that his marks werent that high. But for Foreign Policy, this is a guy thats making the right Foreign Policy decisions. We walked the fine line in libya and seemed to work out. Now, i look at theres been like eight things in the last six months. Every single thing has gone wrong, hasnt it . In Foreign Policy . Well, it has gone wrong and seems to have gone wrong through inaction, mostly. Through the ukraine, through syria, not because of something we did, but because of something we maybe perhaps havent done. That may change the calculus on iraq. These are hard problems. And by the way, libya now has descended into sheer and utter chaos, like 160,000 barrels of oil per day. Our Foreign Policy is based on u. S. Interests, right . You can talk all the humanitarian stuff you want, but ultimately its about u. S. Interests, which is about oil, right . Right. Its unseemly to say out loud, but thats what it is. You look at the humanitarian crisis in syria, weve got some assurance there werent going to be chemical weapons. And i think chemical weapons were used again, werent they . All right. Its a business network. By the way, did we leave stuff where we left stuff . Oh, yeah, the rebels are using our tanks, our weapons, yes. Uhhuh. Dont we destroy that stuff on the way out . Well, not if youre going to let the iraqi army use it. Some of it sounded like it was left. That was after they left it. Oh, yeah. Doug, thanks. E we didnt expect them to abandon. Intel raising the Second Quarter and fullyear outlook. The chip maker expecting stronger than expected pc demand. The pc industry has been shrinking due to, well, frankly the growth in the popularity of tablets and smartphones. Intel shares rising on its upbeat outlook. Also, keep your eyes on shares of express today. Its interested in acquiring the apparel retailer. Sycamore has disclosed a 9. 9 stake in that Company Making it the largest shareholder. Adopted a stockholder rights plan setting the trigger at 10 and shares jumping after the bell. You can see there, up almost little over 25 . And then a little bit of other deal news to talk about this morning. Univisions owner has held talks with cbs, time warner and other Media Companies about selling the broad cascaster. Owners are said to be seeking 20 billion. They paid a pretty penny for that company years ago. Big equity deal. 12 times ebitda. The deal was 12 times you got your microphone on, still . She said 12 times. In market peak, private equity. It was a 2006 it was one of the sort of right before the vintage deals right before things went horribly wrong. Im going to get you the price, though, on what univision was sold at. In the meantime, investors are talking about comments from bank of england, governor mark carney. But yesterday, he warned that Interest Rates could rise sooner than markets expected. As a result of stark comments, investors have brought forward expectations for the first uk rate hike to before the end of this year. And that was pretty big news. Next, the power of anonymous work in an age of relentless selfpromotion. Theyre called the invisibles and some of the unstung heroes of business. Were going to put the spotlight on them in todays executive edge. And u. S. Open enters day two. But the business of golf is currently in the rough. That and much, much more when we come back. Welcome back to squawk box this morning. Its now time for todays executive edge. What do radio heads guitar technician and an Ivy League Educated anesthesiologist have in common . Well, the work is often unnoticed unless something goes wrong. They must take accuracy as its own reward. Thats the argument of our next guest, in his new book, its called invisibles, the power of anonymous work in an age of selfpromotion. Its hot off the press yesterday. Good morning to you. Good morning. Who are the invisibles . I used to be an invisible. For years, i worked as a magazine fact checker. If you think about that job, no one ever thinks about the fact checker unless theres a mistake in the article. While on the job, the better i did my job, the more i disappeared. In fact, it was only if i made a mistake that anyone would think of me. Perfection at that job is invisibility. And i began to wonder are there other fields like this that share the same sort of inverse relationship between work and recognition . Most of us, the better we do our jobs, the more were recognized. Right. That job was the reverse. So i began to wonder about what other types of professions share this relationship. And the interesting thing about the job was that despite no one ever thinking about me, i felt incredibly rewarded after a long day in the way i didnt feel at a variety of other jobs i had. And thats the one thing i found so peculiar about it. How hard is it for an invisible to climb the ladder . Because youre invisible. Right. And how how much is that supposed to be part of the goal even. I would argue that sometimes the invisible succeeds at what theyre doing because theyre not trying to climb the ladder in a way. Well, thats exactly right. You know, its a bit counterintuitive. But in the book, what you see again and again across a wide range of fields and industries that it found people at the tops of their fields, but yet they got there by doing essentially the opposite of what most of us are told we need to do. That these are people very selfeffacing, humble. But yet, they manage to be in charge of vast teams of workers, in charge of multimillion dollar projects. How did they get there . Its got to be right. Because people in the know, people who are there understand how important those invisibles are. You think about you think about somebody who is an anesthesiologist, if youre a doctor, you know who the good ones are. Thats right. They run the o. R. Yet, of course, if you have your gallbladder taken out, its the surgeon that gets the fruit basket. Youre never going to forget their name, but youve forgotten the anesthesiologist as soon as youre out of recovery. I once had a conversation with a ceo talking about hiring an executive assistant. And he said, you know, if when im interviewing them and they say what is this a steppingstone to . Youre supposed to say, please leave immediately. Because the answer is supposed to be, it is a steppingstone to you doing what you did today better tomorrow. And thats what makes them great in this sort of this almost invisible context. That cant be great in some respects. There are executive assistants who do tremendously well and move up in that place. But in terms of the breakthrough theres a limit. Theres a limit. How do you work that . Well, there really isnt a limit, though. Thats the thing that ultimately, although the book, i i i cover people and all these Different Industries who really are true invisibles that the public never thinks about. The reality is that chief executives, even some of the most famous people among us. You think about a quarterback silently studying game film overnight. The overnight sensation pop star who spent a decade playing dive bars beforehand that really what the book shows is that the traits of these people can be applied to anyone. So its not about kind of hitting that ceiling necessarily as an executive assistant, though that could be a component of it. But regardless of what youre doing, including the people at the top of the pyramid, they what we dont realize is not every chief executive is this big blustery personality, a lot of them are invisibles in their mentality about how they operate. And thats the message that i think i learned as i was working on the book and meeting with all these people that we think you need to have a certain personality type in order to succeed. And what these people show is theres an alternate path. The theres a lot of people out there that want permission to step off the wheel that arent big personalities, who dont necessarily want to promote themselves. Wont come on and they say thats my whole my whole mantra is not coming on. Thats right. They view that as a mark of honor of people not knowing who they are. So thats kind of the biggest message of the book that if you want to really succeed that you dont need to always have this giant personality. Well, i considered thats why i chose to be on tv, i chose cnbc to i thought, you know, there were a couple of other networks. Quiet way quiet way. But people do at times, and it really kind of irritates me. They say, you do that squawk box, what do you want that to lead to eventually . What would you eventually like to do . This is it. Isnt this okay . Then i think of you, and i think thats this is a steppingstone for god knows where youll end up. What am i supposed to say to them . Price is right. Maybe i can take over for whats his name. Drew carey. Or family feud. Pat sajak is almost 70, i think. Why isnt this good enough for me . Im an invisible. Right. Im with you on this. Youre an invisible, joe. Its not about, you know, good enough or not good enough or reaching a certain ceiling. Its really about these certain trades i found. As mentioned in the beginning, radioheads guitar tech with them for the past 20 years, one of the Biggest Bands in the world even the lead singer. You might not be able to, but many people could. Are you sure . Yes, im quite certain. Theres not a radio theyve got some weird, depressing songs, dont they . Youre not a teenager. Although, you know nor am i a teenager. Whatever. But the point is about when you think about this chief guitar tech, he hes in charge of vast amount of equipment. Hes running the show in many regards. The public never thinks of as where is he reward . Its in the work itself. Those are the people you want on your team. Those are the people who are going to make it where the reward is in the work itself. Right. Not in trying to gain attention for themselves. Youve got i have done that. It irritates me, too. What do you mean . I love my job. How many morning shows are there . Its like six, right . It irritates me to hear you say that. Its not about accepting second best. Its about accepting what is rewarding for you. We love talking about financial news. Its not about, you know, necessarily the biggest stage. Its about doing whats rewarding and we love finance and money and how it all works. David, thank you. Thank you. The book the invisibles. When we come back, the markets hate uncertainty and does this crisis have the potential to set off a correction . Well have that discussion after this. And as we head to a break right now, take a look at yesterdays winners and losers. When you run a business, you cant settle for slow. Thats why i always choose the fastest intern. The fastest printer. The fastest lunch. Turkey club. The fastest pencil sharpener. The fastest elevator. The fastest speed dial. The Fastest Office plant. So why wouldnt i choose the fastest wifi . I would. Switch to comcast Business Internet and get the fastest wifi included. Comcast business. Built for business. But with less energy, moodiness, and a low sex drive, i had to do something. I saw my doctor. A blood test showed it was low testosterone, not age. We talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about axiron. Show em the curve. Its beautiful. Its more than that. Its perfect. Introducing curved Ultra High Definition Television from samsung. When you sleep wrong. Is it a pinched nerve . It shows up on air is it a pinched nerve . Good morning. Welcome back. Get this man some advil. I cant turn. I dont know an icy hot pack. I have this red cough syrup that has something in it that i think is straight from the opium fields somewhere. Thats what i wish i had. Can we get you a heating pad . Will you come over here and i call you sweet heat. Come over here and rub me. Right there . Youre going to sit there with the heating pads on you. You need a patch. And you offered to put one on my pimply back because you said youre like my little sister. They usually play the sound of the fish mating or whatever, goes like that. What is that . Thats turtles. Sea turtles. To me, that doesnt i dont know if its a sea turtle or a tortoise. That sound does not turn me on. Yeah, sounds like throwing up. Which is what you might do if you anyway. Good morning, welcome back to squawk box on cnbc. Im going to sit still here. Joe kernan along with becky quick and andrew ross sorkin. Or top story today. People everywhere are going, what was it all about. The escalating situation in iraq, the reaction of the jittery global markets. Overnight, Sunni Islamist militants gained more ground. Upstairs, they actually asked, do we know for sure whether baghdad has fallen yet . Whether it hasnt fallen. Whether it has or hasnt. I cant believe thats those words are being expressed now. Anyway, they moved into two towns in the eastern province. The insurgents have been pressing toward baghdad. President obama has threatened air strikes. Were going to talk to an f. T. Reporter on the ground in iraq in just in just a couple of minutes. You saw mccain yesterday. But mccain has talked about military action like theres seven different or eight different situations in the last two years or something. And but hes saying that the chiefs of staff, they all need to resign, everyone involved with the state department needs, i think he wanted to bring back itll come to me. Yeah, but theyre going back to the surge. Ever since the surge, theyve all disappeared at this point. The top corporate story today. This is what i wanted to mention, to show you a chart. Because ive tried to see if weve ever been over 29, ever been over 30 in ten years, and we have not. Looks like way back ten years ago. It was 70 or 80 back in the late 90s. But raised the outlook on stronger than expected pc demand. When would you think that intel would finally break out of this range of basically between you can see that 15 to 30, but really between 20 and 30. Its been there for the past ten years. Although and you think it would do it now . When you really do think no ones using pcs anymore. I looked at the news. They said, oh, its great, much better than anticipated, expected. Thats because worldwide, expecting a decline of 6 instead of a drop of 10 we saw last year, youre still talking about a declining market. Gartman . Gartner. Because if he does commodities and all the i. T. Stuff, hes spreading himself too thin, isnt he . He knows. Hes a renaissance man. But i dont think these are his, are they . No, its the gartman. Different gartman. We like ours. We do. Lets talk about the markets and get reaction to everything happening. Hank smith is chief investment officer, chief u. S. Economist as u. B. S. Investment research. And lets start off talking about the markets reaction yesterday. Was everything a reaction to iraq because you saw stock prices down, treasuries rally, oil prices higher. Yeah, i think it had a lot to do with that, also there was some weaker Economic Data on the retail sales and jobless claims. But by and large, this is a market that has had very little news to react to, and a market that has been clearly trending higher. And to say its been overdue for a pullback or correction, i think is an understatement. Its really been close to three years since weve had a correction defined as a decline between 10 and 19 . You have to go back to the late summer of 2011. And corrections are normal parts of bull markets. But youre only talking about the last two days of decline of about 200 points for the dow. Is this the beginning of a correction, do you think . Well, look, whether its going to be a pullback like we had in january or around easter time or a fullfledged correction, im not sure. Im more certain that whatever it is, its going to be relatively short lived because theres a lot of money on the sidelines that wants to get into this bull market because they havent participated heretofore. But you do expect the pullback to continue because of the news happening. In january, what was the decline, 5 to 6 . Yeah, i think it was about 6 to 7 decline. And if you didnt have your finger on your buy orders, you missed it because in very short order, just a matter of a couple of weeks in february, all of those losses were recouped. Obviously, headlines like this make people very concerned. If you think about the economy, Higher Oil Prices do act as a tax on people. Is this a situation that makes you nervous . Or do you think this is something the u. S. Economy continues to chug right through . Well probably chug right through. Weve been there, done that, weve seen the gasoline prices go up before. And the American Consumer knows they go up, they go down, theyre a yoyo. And they really dont change their behavior on some type of shortterm swing in gasoline prices or stock prices. Thats what you think this is . A temporary swing. Thats what im trying to get a swing for. You feel this is a temporary situation. Not necessarily a longer term concern when it comes to the markets. Well, the geopolitical situation in iraq is not a temporary situation. Right. Just the impact of the markets. But the consequences. The economic consequences of this are not going to be particularly meaningful. I think whats far more important over the summer is what happens to wages and jobs. What happens to wages and jobs meaning more jobs and higher wages coming in. Does that in turn pressure people because they start to worry if you see higher wages that that in turn leads to inflation and that will lead the fed to step in . Well, i dont think so at this point. Theres still room to grow in the economy without having much more in the way of inflation. Meanwhile, you need to put more money in the hands of workers to spend and the Consumer Spending as we saw yesterday is just fair. It was actually better than reported in april. But may was weaker than expected. I think the important thing would be to put more money in consumers hands through jobs and wages. Think well see that over the summer. And thats more important than whether or not gasoline prices go up another 25 cents. Okay. Thank you both for joining us. Hank, change your haverford, even berkeleys too conservative for you to have a Commencement Speaker to come to haverford . Pathetic, i apologize. Was that your decision . You didnt have anything to do with what the college did, did you . Nothing to do with it. But we did host a pretty good u. S. Open last year. Yeah, you did. Actually, the princeton guy they replaced the poor guy from berkeley with really, though, you know, the members of the student body that made that. That all turned out well. And bloomberg. Bloomberg said that well, the princeton guy just came in and said, what is with you people . And bloomberg gave a great speech at harvard about that was a great speech. Joe, the best commencement speech this year was at the university of texas, google it up, its the most riveting, powerful speech ive heard. Who was it . Im sorry. Yeah. It was a 36year navy s. E. A. L. Yes, i saw that, too. Unbelievable. U. T. Graduate. Its on youtube. There was an oped. Texas, god bless them. Theyre still they have not theyre still part of the union at this point, but, yeah i think they are. But they do things differently down there. They have a bunch of jobs. Things are going well. For those viewers at home who want to go see it because its that good. Its naval admiral william mcraven. You can find it on youtube. Mcraven . Im so, so proud of you and touched by its totally awesome. Itll make you cry. I cant believe you would number one talk about something that happened in texas and number two, a navy s. E. A. L. Its so awesome. You literally will cry. Its that good. You are you surprise me every day. Anyway pleasantly. Lets get back to todays top story. And that is iraq and the fight against islamist militants in the northern part of the country. Two years ago, would anyone have thought this would be the headline today. Reporting live from iraq, not far from the city of mosul on the cnbc news line is erika solomon. Youve been out and around the area this morning, what can you tell us about the situation, actually on the ground . Reporter good morning. Well, right now, actually, were seeing an interesting development, which is that we were just on the border basically between the region and mosul. A lot of people going back home. Refugee flows both ways, people leaving and people going back in. Thats because people say the situation inside is relatively calm. Theyre not being bothered by the Islamic State of iraq, the al qaeda Splinter Group that led basically a revolt to take over the city. People are feeling some people who feel sympathetic are feeling comfortable going back. Almost everyone says the reason they were leaving not because of the militants, but because theyre afraid of air strikes. So meanwhile, the Kurdish Forces we saw there, theyre pretty relaxed, but they are prepared. They dug some trenches along the 500meter stretch between the territory and that of the militants and they have set up road blocks. But they say so far there has been no communication between them. Theres no signs of anything, really. Its pretty quiet. People are basically just worried about how this will develop regionally, you know, militants picking over the second largest city in iraq is obviously not going to be left alone. Most people are afraid of whats going to happen next more than the situation there right now on the ground. We dont we dont understand very well, erika, how a small group can overrun the iraqi army. I dont know. Do you see guys in uniform from the iraqi army . Are they all gone . Did they take off the uniforms . Any idea whether theres any presence at all of Iraqi Government forces . Well, i mean, thats definitely the big question about what happened. I think everyone including res dens we spoke to are still scratching their heads a little bit about that. And what we do know is that everyone is describing what happened with the army as if it kind of just vanished, really. For a few days on one side of the city, there was fighting and then within hours, the army was withdrew. Mostly not in uniform. Most of them left their uniforms. I did speak to one soldier, not from mosul, but the home city he said when militants took it over. Thats been regained, at least it was overnight, the army. He said, yeah, he ripped up his i. D. Card, left behind his uniform and he said this army is corrupt, it doesnt represent a huge portion of the population. And by that, he meant the countrys minority, which feels that the government, which is led by the shia sects doesnt represent them and they feel its discriminatory. People in mosul say theyve been treated badly by the army, they were not sorry to see them go. Whether or not they like the militants or not, they definitely had nothing nice to say about the army. But the numbers are shocking. They say there were well over 10,000 Kurdish Forces, maybe up to 30,000 iraqi forces around mosul. And the number of militants originally entered the city was in the few thousands. So theres a lot of suspicions of there being sleeper cells inside. People just joined them either giving them information or literally picking up arms to fight with them. And then other residents told us they think it was just a very clever strategy by the militants. They didnt go into civilian areas. They completely focused on a few military and government sites. And by doing that, they were able to seize all of these important strategic areas and basically claim control of the city. And that scared the army, and they left. All right. Erika, we appreciate the time you took speaking with us today. Thank you. Youre welcome. Coming up, a lot more on the crisis in iraq, including the possible u. S. Military options for stopping the insurgents at the top of the hour well have that discussion. Then, as we head to a break right now, please take a quick check at whats happening in european markets. Weve got red arrows across the board. Back in a moment. [ male announcer ] dont just visit hawaii. [ squeaking ] [ water dripping ] visit tripadvisor hawaii. [ whistling ] with millions of reviews, tripadvisor makes any destination better. With millions of reviews, alright, that should just about do it. Excuse me, what are you doing . Uh, well we are fine tuning these small cells that improve coverage, capacity and quality of the network. It means youll be able t post from the breakroom. Great did it hurt . When you fell from heaven awkward laugh . A little. laughs im sorry, i have to go. At t is building you a better network. Because you cant beat zero heartburn. Woo hoo [ male announcer ] prilosec otc is the number one doctor recommended frequent heartburn medicine for 8 straight years. One pill each morning. 24 hours. Zero heartburn. Frequent heartburn medicine for 8 straight years. For that moment, where right place meets right time. And when i find it i go for it. announcer at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so youre always connected, wherever you are. Because at scottrade, our passion is to power yours. Exhibition coming up, u. S. Open. Dominic, you are a great golfer. I remember it is better. Instead of having those narrow fairways where you have to chip out with a sand wedge and hit it, why not do it i cant believe how that changes the course, though. They have made so many different changes. But, again, golfing world is so focused here in North Carolina right now. The mens open this weekend. Thats coming up after the break here on squawk pox. Stphao stphao. Great rates for great rides. Geico motorcycle, see how much you could save. Its cut day at the u. S. Open. Dominic joins us. So many guys were two under. Kaymer birdied three of the last five holes. We have seen him cool under pressure before. Absolutely. Kaymer is going to be one of those guys in contention for a lot of these major events. Its a big deal. Phil mickelson is still in contention. Theres a lot of stuff happening. But all of this is happening. The drama happening at a critical time of the game of golf. We have spoken so much and reported so much about how golf may be in this secular declean. The National Golf foundation says theres 5 million less people playing golf today than a decade ago. The numbers are starting to stabilize. There are signs of life, though. 5 fewer rounds played last year. That was due in some small part to the weather we had. Usga here in america thinks it is getting better. What you larry is people who are passionate feel more strongly than they ever have before. It comes down to the core golfer. There is a lot of stuff happening. Usga announced a partnership with American Express to get people to go out and try to play nine holes in a way to get people to say, hey, it doesnt take nine hours to play golf. It can take two, two and a half if you just play nine. I dont buy it. Its a great game. When im an empty nester i will be able to play a lot more. Dominic, you also have to come to grips with knowing youre going to feel bad about yourself. There are times when i have played in tournaments where i want to come back to work. I know im not just going to fall, hit my head on the set. I want to get back to my car. Even though it has a clutch, i know i can work it. I get around a green and i know there are things im not going to be able to do. It hurts. I would just say this, joe, you and i we both have day jobs still, fortunately or unfortunately, which means we cant be at the range every day and play seven days a week. Maybe thats why im pretty much tapped at the level of skill ill be at. Im planning on playing more golf. Me too. We need the muscle memory to fall back on from practicing when youre under pressure. If you dont practice, you candy just ladida a sapped wedge. You need a slow, big anyway. Thank you, dominic. Were going to play. When we come back, more about the crisis in iraq and the uncertainty rising in the markets. What are the military options for the u. S. At this point. That discussion is right after this. Good morning, everybody. Welcome back to squawk box here on cnbc. Im becky quick along with joe concernen and andrew ross sorkin. Global markets which are watching the situation in iraq. Sunni islamists pushing into an issuey province and capturing two towns overnight. Reports say iran is alarmed enough by the sunni insurgent that it may help the u. S. Fight these insurgents. We saw oil prices yesterday. They are higher once again. If you take a look now you will see wti up 55 cents above 107 a barrel. Futures are a little bit stronger. This comes after two days of declines for the dow. Futures are essentially flat. S p down by about one point. You saw a rally in bonds yesterday. The 10year note is yelleding just below 2. 6 . 2. 599. Our chief International Correspondent michelle crews carusocabrera has more. The the first is a parade held in mosul in seized vehicles by the islamist militants. You can see them go by. They were once used by the Iraqi Military. They have disappeared. You can see they are very well armed and quite proud. We are told the situation is fairly calm at the moment, as you heard from the reporter the last hour. We will play a little bit more from her. The next video we want to show you is nbc hasnt been able to verify this. This is amateur video which is why it has this big label of tikrit. This is reported to be iraqi soldiers push ud out of what used to be an american base. So official iraqi soldiers being led away by the militants, hands on their heads as they depart. This is tekret, former hometown of Saddam Hussein. The next was said to be the border between iraq and syria. These are islamist militants at the iraqi border. They are going to move some stones because they are saying that now the border between iraq and syria has gone away. It is meaningless. They want to create this sunnien clarify. And more about the possible disintegration of iraq. And the kurds have taken over. They have taken control of kirkuk, a region up in the northeast. Lets play a little bit of sound. You interviewed this woman the last hour. She was great. And she explained what the situation is on the border. Reporter we were just on the border basically between irkil and mozil. A lot of people are starting to go back home. We have people leaving and going back in. People say there is a situation inside. Mostly right now it is relatively calm. They say they are not being bothered by the Islamic State. Theyre not bothered by the militants. The germ of the story why it is that a city of 2 Million People that were supposedly defended by 10,000 iraqi army members could fall to 1,700 insurgents. They are sunnis. They hated the Iraqi Government and the iraqi army, as she explained . That interview. Some were sympathetic to the rebels. What happens next is unclear. She said the reason some people are still leaving is they fear u. S. Strikes. And they get there. Certainly looks like they could do that. Through your best efforts, this is what its coming to . I spoke to one individual. I said what should happen. Somebody who is deeply familiar with iraq. Yeah. Should have stayed there 50 years like we did in career kor japan and germany. Thats not good either. Split it up into three areas. The sunnis in the middle would have no oil. Yeah. There would be a border between syria do we care whether syria moves its border . Good question. Is iran going to be on our side on this . Is that what it has come to. Im not sure were willing to have iran help us. Joining us now with more on the military option, colonel jacobs, former director of Counter Terrorism and the senior counselor. Good morning to you both. What do you think the actions are in reality on the table. Ill start with you, michael . They are pretty lousy. When we went into iraq in 2003, a lot of people predicted this sort of thing would be the natural outcome. Im not sure it was predetermined. But certainly the combination of a relatively rapid withdrawal in 2011. They had been inflamed by Prime Minister maliki, combining with the in stability in syria. We now have a really, really dangerous situation. And the one thing i would stress, this isnt about iraq. This is a real problem. Its really a u. S. Homeland problem. Isis is quite committed to attacking far beyond the borders of iraq. John, what are we going to do . I think were going to do nothing. What should we do . I think we should do nothing. You have people who really do want to split the place up and others who want to hold it together. The only way iraq will be held together is in the traditional way. Thats with somebody who is a blood thirsty despite it. It doesnt work, hasnt worked, wont work. You have to have somebody who is going to be in charge of it who is actually going to take charge of it. Through force of will and arms will hold it altogether. Without that, its going to fall apart. I agree its a regional problem that has spread from all across the region from syria. The president is going to be encouraged to do something. But the do something is going to entail nothing more than sending more arms over there. Most of which will fall into the hands of people who shouldnt have them. Unless we have the political will to influence the action on the ground, and we do not and should not, things will run their course and not be very proud. Jack clearly thinks we shouldnt do anything. Is there a Tipping Point in which you say we need to do something . I am a little bit more aggressive than jack is on this. We cant accept having the Islamic State of iraq and syria with with really Key Resources in that region. It is too dangerous for the homeland. Is that mean air strikes . Certainly not troops on the ground. Were not going to accomplish anything with air strikes unless we have iraqi forces which can stand and fight. So youre going back in . I am probably more towards the limited air strikes if, if theres a key if maliki can reconstitute his armed forces in a way that are not simply antisunni forces. What does that cost . Is it even possible . Its possible. We have other regional sites from which we could do it. Again, without support from maliki in a way he hasnt done the last three years, i dont think its useful. Quick monday morning quarterback here. Was there a way to make this work . It was always going to be hard post invasion. But i think yes. And that is probably two years ago. Greater involvement in syria when the british and the french pushed for that when there was moderate opposition in syria, combined with strong pressure 2011 to continue the training mission. That wouldnt have guaranteed anything. We have the sectarian tensions. It would have at least delayed this sort of problem a little bit farther out giving the iraqis more time. Jack, do you want to blame somebody too . Im willing to blame anybody except myself. I was one of the people who cast gated the Vice President for saying what we ought to do is divide it up in three pieces. I think it naturally does but theres no way we can influence it. With respect to iraq and syria. My view is the seinfeld view when he went to collect the car that he was late on. He said you know how to take the the reservation but you dont know how to hold on to the reservation. We know how to take the objective but not the political will to hold on to it. I have an important question. This is the oil question. It goes on what was happening in the 6 00 hour. Do we believe the insurgents will be able to get to the south and also what happens in the north. One of the reasons why your mind was actually a divided iraq is its going to be extremely difficult for these people to get down to the south. Theyre going to have to go through or around baghdad. They dont have enough people i think at the moment to isolate baghdad. In order to get down south, they have to go through b. I dont think thats going to work. Thats why i think you will continue to have a lot of fighting up in the north and closer in the east. Baghdad the southern part will be more or less isolated. The real danger is with kurds. They decide they really want their own homeland. Then you involve turkey and iran. Its likely to be a real mess. Keep your eye on what happens. Jack, everything you just said when i was on last hour the idea was in the short to medium term, maybe we get more oil. The south is unlikely to be disrupted, as you said. My understanding is Oil Production continues unabated. Thats where the vast majority is. And the kurds are to sell on the international markets. They could find this leverage against maliki and say, okay, we have a fighting force that will actually stick around. Well help you out. But we want the ability to sell our own oil and more autonomy. Do you give any credence to that cheer . Yeah, i do. It responds more to emotion than it does to supply. But i think youre absolutely right. In the near to midterm, were liable to have more on the market than reasons we have articulated. Coming up, the game of lets make a deal with a private equity master Scott Spurling. And later supermodel petra nemcova. You wouldnt believe how many schools have been rebuilt that were affected by disaster. She founded this. She will tell us about her organization and the next charitable challenge of helping victims of natural disasterment. Having the cloud allows us to rapid prototype a lot of ideas. Being able to pay as we go is crucial for a start up. Having to fork out a lot of money up front was risky. We can launch a feature really quick, and if the feature doesnt work, we havent lost anything, and we can have something up and running in days. And this would not be possible without the cloud. We are now supporting over 25 million users each month. Welcome back, everybody. We have been taking a look at the futures. You have seen the dow close lower. 100 points. This morning the futures are relatively flat waiting to pick up a little direction. Most of the direction so far has been coming from all these headlines out of iraq. The has been driving the bond market, u. S. Equity mark and gold market. He has invested in businesses from Clear Channel to the nielsen company. Joining us with his thoughts, 14 billion in assets. Scott, great to see you. The question we keep asking every guest we have is business in the country, is it good enough to justify where these markets are . Are we still seeing the Yellen Bernanke effect. Are you seeing good times to buy things for your company . I think when we look at the broad indexes they are basically where you expect then to be longterm averages. The issue we have had is we have had a slow recovery. That recovery maintains itself at a very low level require to historical standards. So its hard to read what this will be over the next down turn. I would think given the business we are seeing at our companies and what i have heard from other peoples Portfolio Companies, we expect to see this continued steady growth but not any spectacular spike up in growth. If you look at the credit markets, the credit markets remain strong. Leverage multiples are back to levels we havent seen since 2007. On the other hand, the coverage ratios for the loans that are being generated out there are much better than they were in 2007 given the relatively low pays rate that those are priced off of. It would matter to you, wouldnt it, if valuations were being supported by the sections of central bankers around the world that might not be a great time for a private equity firm to be shopping for new things to buy, right . Because it seems well go ahead. Lets be clear. Its a hard environment for us to buy right now. Pause while the indexes and the Public Markets arent really out of whack in terms of being expensive, by the time you put significant premiums on that, things are starting to get pricey from a private equity perspective. Strategic buyers have an advantage. And i believe were in one of those periods. Where the nature of the deals being done now because of the low cost of debt, technically for well rated strategics gives them an advantage. There is a cycle the that. And that will change around. But we are in that period. Scott, where are we in that cycle . Go back to sort of the 98 through 2001 period, the strategics were clearly winning the game. They went on a fiveyear bull run. And i think were going to follow a similar cycle. What i dont know is how long each of that cycle will last. One thing i have learned doing this over 40 years is the nature of cyclicality doesnt change. Its only the pair disities that have secular change to that. That is hard to read. When i was sitting here middle of 2007, you know, the world seemed really difficult. No matter how reassuring our treasury secretary and chairman of the fed was at the time, we had an isolated incident to sell prime, it was clear it wasnt going to be isolated. There was enormous leverage that created vulnerability. I dont see that in the u. S. Economics system. We have done a good job by bringing it at the Banking System down very significantly. Down half of where it was. And then all the hidden leverage. The cubes we didnt understand. So that created a vulnerability we didnt fully comprehend at that point in time. And i dont think thats there today. At least for the United States. I think europe, which has had some stability come back to it and people are very happy that that stability is there, that is a more highly leveraged Financial System and therefore may have some risks redont have here in the United States. Whether one flows from the other, who know stpwhrs one of your Portfolio Companies there has been some reports its been in merger talks or sales talks with cbs and time warner. Yeah. What is your thinking around that asset . Univision, we are generally transient owners. Sometimes you feel like you can own it forever, quote unquote. Univision is one where randy falco is a wonderful ceo. Were pretty darned happy with the asset. We know randy. Thank you. Thanks, scott. Youre welcome. Coming up, we will also talk to a tech disruptor playing the role of caddy. After helping his son through the first round of the u. S. Open. Time for todays of black trivia question. What president proclaimed fathers day an official holiday 58 years after mothers day became official . The answer when cnbc squawk box continues. Nice. Wrench . What . Aflac so this is who you brought to help us out . Oh yeah, hes the best. Hmm. He doesnt look like hes seen a tool in his life. Oh, he doesnt know anything about tools. Aflacacacacacacac but when i broke my arm, he lent a hand. He paid my claim in just four days. Four days . Wow its no accident aflac pays fast. Find out how fast at aflac. Com and remember,accidents dont hurt as much when you have aflac. Better. [ girl ] my dad, he makes underwater fans that are powered by the moon. [ birds squawking ] my dad makes airplane engines that can talk. [ birds squawking ] my dad makes hospitals you can hold in your hand. My dad can print Amazing Things right from his computer. [ whirring ] [ train whistle blows ] my dad makes trains that are friends with trees. [ train whistle blows ] my dad works at ge. You are gonna need a wingman. And with my cash back, you are money. Forget him. My Airline Miles will take your game worldwide. What im really looking for is i got two words for you rewards. Theres got to be better cards than this. [ male announcer ] theres a better way with creditcards. Com. Compare hundreds of cards from all the major banks to find the one thats right for you. Its simple. Search, compare, and apply at creditcards. Com. First rounds on me. The answer to todays aflac trivia question. What president pro claimed fathers day an official holiday 58 years after mothers day became official . The answer, president richard nixon. Big half hour just ahead. Scott mcneil calling into the news line after making a splash is at the u. S. Open as a caddy. Changing the world with a super model. Her latest crusade to help victims of natural disaster. Squawk box will be back after just a moment. Financial noise financial noise financial noise dont just visit new york visit tripadvisor new york with millions of reviews, tripadvisor makes any destination better. Welcome back to squawk box this morning. Intel are getting a boost. Chipmaker raising its Second Quarter and full year outlook, citing stronger than expected pc demand. Sycamore partners with an interest in express. It is making it the largest shareholder. I think the threshold is 10 . Were continuing to follow oil prices this morning amid the unrest on the ground in iraq. And you can take a look at this our. Wti crude 106. 84. He is one of the richest men on the course at pinehurst. Hes not participating in the game. Currently is the richest man. I would say safely. He is cadlying his son maverick mcneely. I know this due. And i did not know his son was this good. Hes a great golfer. Caddy to his son maverick. I see it at the at t pebble beach. You love being inside the ropes. Cant be anything like this must be for you. This is an amazing and fun week. I had no idea this was going to happen until last monday when i caddied in San Francisco and he shot 67 no qualify. We had to make mad dash plans for North Carolina. Were having just the week of our lives out here. He needs probably to shoot one over, two over, Something Like that, to have a shot at making the cut and spending the weekend out here. No matter what happens its an absolute blast. How old is maverick . Maverick is 18. And his brothers are on the driving range right now working at it. The thing that amazed me the most is maverick is not just a golfer. He is taking a full course load as an engineer and computer scientist. Thats incredible. The night before he did the 36hole qualifier, 10 00 i had to tell him to go to bed. He was working on a c plus plus program with four different user select algorithms. After the qualifier last week he had four exams at stanford. His Computer Science exam finished 10 00 friday night. We move him out of his dorm saturday. And then we took the first flight out sunday morning out to pinehurst. I guarantee you nobody in that group was being as scholar lay as he was a week before the tournament. Hey, scott, i have seen the stuff you write. In the at t, you write down every single thought you have. And i did read a lot of it. I dont know why. Im not saying you yipped things. But he has the young nerves. Are you more nervous than he is. Its much harder to watch. Much more fun to play. Hes an entertainer at heart. He loves the crowd. He bears down and enjoys that. I hate the crowd. He likes it. Hes a little bit of a showoff that way. Hes quiet and humble but he does want to do well. Is he good enough to turn pro, scott . He must be. You know, i hope he can have a great am ter career and also do some other things. Because the guy i think is a really, really talent, high spwegt great leader. And i think he can do a heck of a lot more. Its a tough life. Terrible. The six and seven footers, i cant imagine. Well, i can imagine because i never make them when i need to. So we should talk about tech i guess for a second. But i cant. Ive got to go back to you remember pinehurst in the 90s. Its crazy that you can change a course like that and still keep everyone really close to being right at even par. These guys are good, let me tell you. They are talking about dreams hit in regulation. What they do is these greens are upside down bowls. Either you land on the little tabletop that is the green or the ball rolls down to the outer part of a doughnut where you putt up on the tabletop. Down the other side. Or where youre standing. When i do its usually from the green side bunker. Thats the one thing good about the crowds. A lot of times they do end up stopping my ball. Great fence word. We should talk tech. How about intel . I thought pc was dead. Microprocessors are going to show up everywhere and anywhere. Its all becoming imbedded. We talked about it 20 years ago. You know, theres hundreds of micro processors. Pretty soon your automobile will be driving you instead of you driving your automobile. Anybody who is doing cpus i think is in a growth business. Intel went through a tough transition. They had a binary interface, which meant people compiled and built their applications to run strictly on a construction site. Were over that at java, html and the lower level languages. They have forced all the of them to have a functionality niche because the applications are not wedded to any particular architecture anymore. Scott, want to weigh in on apple . You probably saw some of the things they announced. Are they back in the game, if you will . I think steve jobs was a rare and unique individual. And its going to be really hard for any organization. And i dont care how bright, hard working and wonderful, and what kind of legacy and culture that you have. Leaders matter. And he was a i dont think i could have worked for him. But he was just very, very unique, unbelievably important character. And i think its going to be hard longer term to go do that. The second problem i have with apple, i find the product is incredibly close, proprietary and not operative with other they dont play nice with other products. When they had steve and they had all of that market power, that was one thing. But i look at android in the marketplace on a global basis. Not Silicon Valley or maybe manhattan. But when you go around the world, android and some of the other architectures are kicking their butt. It will be an interesting challenge. You saw twitter come all the way back down. Youre in social. Are they really worth something . Maybe i just dont get it. What will twitter eventually be worth or your company . Well, i think these companies are all about you have no privacy. Get over it. Somebody said that a long time ago. What social does is really allow very clear micro descriptors of your sentiments, your demographics, those sorts of things. All of that is all used to basically i think of social as a way to match buyers and sellers without all the noise. Thats why they are valuable and why they will continue to be valuable. You dont want the noise. They do want to get matched with goods and services they do want to use and desire. Are you wearing that hat as a caddy . I am. I had one on in my practice round. I saw somebodys comments, whats it with old guys and their bad hats. Thats not the one. Youre wearing the other one. I have soon scott out there. I have never seen that hat. Scott, do it rain at all overnight . It did. Im a little nervous for maverick. Hes got to play through it. They dont let anybody empty your water bottles. It could be really dry and crusty on saturday and sunday, its going to be fun to watch. Did you see your buddy kevin . Yeah. Hes doing well. I called him as the sleeper potential win. Before you made the cut. Thats why you made the cut at the at t. He was on the leaderboard. He got fourth place. All right. Thanks, scott. Skocott, i hope he does a fantastic job. Happy fathers day. Appreciate it. Well get an update. And petra is looking to change the world. Shes our special guest in a moment. Squawk box will be right back. Monday on squawk box, Southern Company chairman thomas fanning. Texas govern joins us monday starting at 6 00 a. M. Eastern time right here on squawk box. Are the largest targets in the world, for every hacker, crook and nuisance in the world. But systems policed by hps Cyber Security team are constantly monitored for threats. Outside and in. Thats why hp reports and helps neutralize more intrusions than anyone. In the world. If Hp Security Solutions can help keep the Worlds Largest organizations safe, they can keep yours safe, too. Make it matter. Fame, makes a man take things over fame, lets him loose, hard to swallow fame, puts you there where things are hollow the evolution of luxury continues. The next generation 2015 escalade. Fame welcome back, everybody. Lets look at oil pushing above 107. 107. 02 for wti. Joining us to talk about the oil is matt smith, a commodity analyst. You could actually see increased production at least for a bit of time if the kurds and the north are able to stabilize things there. At the moment all the production in the north is offline. The biggest concern for the crude market is the insurgency moves south. Thats where all the production is coming from at the moment and being exported out of the persian there. If they dont, if it is shut down either by military intervention or by help from someone else, maybe the United States or someplace else, do prices come down substantially . Yeah. That would be the best case scenario. We see prices move lower. What do you think the fair price for oil would be if we didnt have these geopolitical tensions . It is difficult to discount them. We could see wti move below 100. We would have to see production increasing. Its just not really a likely scenario that i see in the near term. Thank you very much. Have a good weekend. You too. Were going to let her say it perfectly. Supermodel and becky quick on. Its not a stretch. And andrew, male model. Tv host and philanthropist petra joins us to talk about her nonprofit happy hearts fund. Its an interview you cannot afford to miss. Hello. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Welcome back. We have breaking news. Priceline acquiring open table. Joe is asking what it is. 2. 6 billion. For restaurants . For restaurants. You can get yourself a reservation at a restaurant. Can you get a waiter . You can. 2. 6 billion. 103 a share. 100 in cash. They do expect that transaction to close in the third quarter. Its interesting. But its a similar service. Priceline is giving you the hotel rooms that that dont have reservations. Open table gives you the table at restaurants that arent reserved. 2. 6 billion total for the transaction. Youre right. They are in the business of filling empty seats. Even cars that arent being used. Thats why we want driverless cars. So all of this capacity. You are to open table as i am to coleman. I barbecue myself. You need open table. You eat out every night. Youre a city beau. Youre metro. You use it once or twice a week . You cant grill swordfish. Happy hearts fund is a nonprofit dedicated to rebuilding schools to children after natural disasters. It aims to open i cant even say it. 100 schools that have been built. It will be active in nine countries. It is commemorating the the 10year anniversary of the tsunami in the indian ocean. A gala with bill clinton. With us now is our special guest petra nemcova. After the tsunami, i dont know if that would have been my response after barely surviving. But you were inspired to do this. This is your thing. Its 100 schools at this point. It is almost 100. Next week will be curable to make the 100 happen. We are now at 85. The goal is to rebuild 100 schools and to make a mark in history the same way as the tsunami did but in a positive and empowering way which will have an impact on the generation now and future generations. It is maybe hard to understand what drove me to do this. But seeing what i have seen and experienced what i have experienced the day of tsunami i heard children screaming for help. And i couldnt help them because i was trapped myself. I had no choice. So when i recovered from my injuries, i went back to thailand and saw children in desperate need being forgotten after First Responders have lost. Today i have a choice. You have a choice. Because i have the choice thats why i went on this path. The first goal was to build one school. Almost eight years later because he we started in 2006, its almost 100. Are the schools new . They are rebuilding. Every school has been damaged by earthquake, hurricane, flooding. And the shelters as well. They are empowering not just children but a whole community. It is amaze to go see the transformation and the impact it has on healing and future job placement. Also on reviving economy of the community. Once there is a safe schools, families from other communities want to move to this community because they want the best for their children. What is it in haiti . We have six schools. We will build six more before the end of this year. We have an amazing partnership. One to six matching. We always try to engage others to be part of the change. We still need to rebuild more. How many countries. Seven countries. By the end of this year, nine countries. The new ones will be in columbia and the philippines. Colombia and the philippines. The need is tremendous. We are offering at the gala also. He is from the philippines himself. We are trying to create a change there. So you get corporate sponsors. Right. They have been very helpful. Very, very helpful. United is giving honor partner. They all have different ways. This bracelet helps. Clinique has a happy heart perfume. They all help in different ways and make a big difference. What about individuals. Do we have a website if people want to spend money . Of course. Everyone is help, whether its corporation or individual. You can find the page and happy a volunteer as well. There are many ways to help. President clinton has been special envoy to haiti. And president martelli in haiti. There is a rise of attendance in education. It was 55 . Now it is over 80 . Theres lots of change happening. We are happy to have two amazing president s in one room. Amazing. So this is your primary thing. You have businesses too, though, no . I do. I still do any fashion work. But also i have a lifestyle home decor brand beetle light new york. Bringing light to your life and home. Its a candle line and blankets and pillows and things like that. Thats a side thing. But my heart is really in rebuilding metro schools and childrens lives. But you still are in the supermodel community. I see some of your tweets where youre somewhere i had to follow you. You had to tweet some of your pictures. You dont follow me . I think. Huh, fifteen minutes could save you fifteen percent or more on car insurance. Yeah. Everybody knows that. Did you know there is an oldest trick in the book . What . Trick number one. Lookest over there. Ha ha. Madeest thou look. So endeth the trick. Hey. Yes. Geico. Fifteen minutes could save you. Well, you know. Seeing the world in reverse, and i loved every minute of it. But then you grow up and theres no going back. But its okay, its just a new kind of adventure. And really, who wants to look backwards when you can look forward . We stathat the kid onhe thought the back of the bus might have a song that he has in his head but he just cant get out. With the technology of cloud, we change all that. I can sing something into my device. Up to the cloud it goes. Back down it comes sounding better. We break down the walls of creation, and we give music creation for the masses. Welcome back to squawk box here on cnbc, first in business worldwide. Im joe kernen along with becky quick and andrew ross sorkin. Jitters in the market over the situation in iraq. Oil experts are worried any supply disruption could lead to a sharp stake in the price of oil. But when i talk to michelle again, that doesnt necessarily make sense given what the nearterm effects could be. Its all happening as heavily armed Al Qaeda Linked insurgents are 40 miles from baghdad. Thousands of civilians fleeing the iraqi capital. You know, we obviously arent experts on this. And you hear there are 1,700 insurgents. They have tikrit, fallujah, mo s mosul. What can you say about the security we set up there and how effective it is and its going to be. I dont know. Everybody here is saying the same thing. We are all feeling bad about the lives that were lost. It seems to be fleeting and escaping us right now. All the casualties of war might all have been for naught. The deal of the morning. Priceline is buying open table for 103 a share in cash, 2. 6 billion. 46 premium. Youre seeing that stock up in the premarket already 13 this morning. Putting together a company that sells reservations on things like airplanes and hotels with a company that makes reservations for restaurants and dinners and lunches. Julie joins us with more. Julia . Thats right. 103 for open table is a 46 premium over Closing Price yesterday. Open table shares are holing right now. It will be interesting to see where they open. 2. 6 billion in cash. The question here is what is priceline booking . They are trying to buy growth. Open table has access to 15 Million People who book restaurants through this service. Thats more than 31,000 restaurants in the open table system. Now, they are considered to be a number of key areas for it to grow, particularly through mobile and also just acquiring restaurants around the world. Price time has really relied on acquisitions to drive its growth. If you look at its history, it bought booking. Com, kayak. Com. It needed those acquisitions to help maintain the double digit percentage growth. This is not the first time a travel company has bought a restaurant booking company. Just a month ago a frenchbased company was purchased by trip adviser. So this is considered a really good growth area, especially as people start doing everything on their mobile phones. Want to go to a restaurant. Dont bother calling. Just book it on open table. Julia, one quick question, unlike the other services that priceline offers, open table, there is some infrastructure and buildout costs. They have to be connected truly into the back end of every separate restaurant. When you look at kayak or priceline, they are into the back end of reservations systems. So theres only a handful of them. This is a different operation. Its a very different operation. Exactly. And i think, andrew, what youre getting at is once you have this infrastructure integrated into a company, though, youre not going to switch. So the benefit is, if youre a hotel and youre listing your rooms that are available, you can list them on a number of places. But here if you are using open table, you are probably not going to offer reservations through a different service. There is that upfront cost. It has the advantages and keep them in the system. Julia borston, thank you. Yelp is up 8. Yelp is very different. I always thought open table should merge with grubhub. I have been told they are totally different businesses. Ive been told the integration doesnt make sense. Open table with priceline makes sense to me. They run the inventory for all the operations. Its Good Business i would think. You dont know what piece of the action they take. Do you go to the want to be restaurants when you do you use open table to get tables that you wouldnt normally be able to get . Just the opposite. Is it opposite . The hot tables dont go. Then why would then you dont use it. Because thats the only place you eat. No. What do you mean . I eat at some places not hot. Do you eat at places Mario Balotelli does not own . Not through open table. Lets get back to the situation in iraq. As joe mentioned, rising tensions spilling over to oil price. Sitting at eightmonth highs. My she carusocabrera will explain whats happening. The rebels have not gotten to baghdad. They seized two more cities overnight. We are still waiting to see what the u. S. Response will be. Those are the big headlines. Lets roll through video that has come in overnight which tells a lot of the story. Video coming in from a recruiting statement supposedly in the southern shiite city. They are leaving karballah for a camp. Thats video number one. Lets show you the city of mozil in the north. They are very proud. Situation is calm right now. There isnt any fighting going on. And this is amateur video. This is members of the iraqi army from the hometown of Saddam Hussein. Obviously they are not fighting. And this is where the kurds have taken over. This is the border of syria where the rebels have said there no border now with syria. They have removed stones at the former iraqi syria border. This video is the most telling and most important. Are we watching the accident tkpwreugz disintegration of iraq . Do we see a sunni nation develop . And then with the help of the iranians, shiite in the south. Where is the line . You would assume the insurgents have an easy time until they get to the board stkphrer around baghdad. Do you know when you say shia versus a nine. A shia region and a shiite is a member. More to talk about the fallout of leader cantor. Senator, im not its going to be used to make political pay. We know that. A couple of years ago it was being touted as Foreign Policy success. Now it is certainly hard to do that. But what do we want to happen and how can we i mean for the United States, what do we want to happen and what can we do so our interests are served . Good morning to you. What should be used, we should learn lessons from what happened here. This is something that never should have happened. Iraq was largely stable. Americas role in the world is primarily to provide stability. What we should do right now, the kurds in the north, we need to do everything we can to maintain that region as stable. We need to make sure israel remains stable, that we dont force them into agreements to destabilize israel. We need to throw all of our support and help through the new government in ukraine so we can stabilize eastern ukraine. Russia is trying to expand. They cant expand taking over the country, so they will destabilize regions. Same with iran. They are trying to get greater influence. They are going to destabilize regions so americas role is there to stabilize things. We had a great opportunity to iraq. What does that mean . You mean boots on the ground . Well, this is monday morning quarterbacking. We have to learn from these blunders. This never happened. From supplying iran to the government in syria never happened. Weblg have stabilized the region. Now, this is chaos, a tragedy. So now we have to take a look at what can we do to stabilize. Im saying lets help the kurds stabilize their region. Help israel maintain its stability. Look at ukraine and show strong support. Sir so he can actually negotiate at position of strength with putin. Its my she carusocabrera. Does that mean the kurds get to have their own region and their own country . Or when you say stabilize, does that mean maintain status quote where there is a semi autonomous region . Im not sure how it ends up. The kurdish region is stabilized. Lets make sure it remains stable. They are friends. They are trying to stabilize their region. In hindsight, it would have been easy but it was so possible to make not only iraq stable but use that stabilizing tors to help stabilize the region. Now we see the region in the middle east in chaos. And the president of United States has come for the American People. He should have done this for years and telling the American People why this is important, not only for National Security but for economic security. We see oil prices spiking. Americans have been told, to be educated. President obama is the only one that can make that case. Sadly, unfortunately, he has not made that case. Thats why we are seeing whats happening today. Senator, after just switching gears real quickly. We to the floor a whole lot of time left. What did the situation with leader cantor, what does that mean for 2014 and what do you think it means for 2016 . I dont think the dynamics change at all. Hearry reed is in charge of the dysfunctional senate. That is the grid lock here in washington. So there is going to be obviously some leadership struggles in the house. It doesnt change the basic dynamic. Our goal is to make sure we get the majority in the senate to put a good piece of legislation on the on president s desk. Will it help with retaking the senate or making gains in the house. I dont think it changes the dynamic. I think there is a difference between tea party and establishment is blown way out of proportion. I sprang on the tea party movement. I think government is too big. I think thats what all republicans think. I think what you are seeing is maturing tea Party Grassroots movement. We need to take over the senate so we can start passing the law to start solving these problems. President obama is not solving the problems and he has no capability. He is just tasked with Foreign Policy. Vice President Biden is on top of this situation. This is stunning detachment by the american president. Thanks. Have a great day. Coming up, the Market Outlook from howard ward. If youre looking for reading this weekend, check out the latest talking squawk talk blog. I see what they put up there. From kids on planes, you know where this is going, to bill ackman to the word jumble. An update. Catch up with the show and preview whats on top for next week. Squawk. Cnbc. Com to check it all out. Which ones to follow . The equity summary score consolidates the ratings of up to 10 independent Research Providers into a single score thats weighted based on how accurate theyve been in the past. Im Howard Spielberg of fidelity investments. The equity summary score is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Welcome backing everybody. Stocks fell sharply into the red as fears ramped up in iraq. What does this mean for big oil names . Joining us on set is howard ward, cio of gabelli growth fund. Whats happening in iraq . How long of a situation is this . Its hard to say. I recall when the United States first announced they were pulling out of iraq, iraqi experts said it was only a matter of time before the company was divide into three tear toes, kurds, sunni and shiah. The issue is how much of an oil supply will be off market as this developments. We dont know the answer to that. Julia pointed out if they take control of the northern oil fields, if they are able to shore things up in the south you could look at it climbing from where it is now. I suppose thats possible. I wouldnt be willing to make that bet. But there is a fear factor. The uncertainty clearly has pressured crude prices higher. They tend to be highly correlated with the price of crude. For people that want to play that game, you know, you can belong there, jump there. You will probably be okay. But these stocks have done well. They are up on a spike. You could get a reversal if things come down. The isis or the isil, are they spartans . The entire iraqi army seems to be run from them. There are sunnis and the shia are leaving the area. If you go back to the sunnis are the minority in iraq. Saddam hussein was a sunni. He didnt do any favor when he was ruling. Its payback time. Theres this battle over the treasure of the iraq, which is the oil. You have eog, continental resources. Right. Three of the most dynamic, most prolific Domestic Energy oil and gas producers, growing production, 20 to 30 . Most of their production is either in texas or north dakota. Stocks have done very well. All the stocks have done incredibly well. In the case of eog, a little under seven times ebitda. Thats the value play of the group. Continental resource, about a little over 7 aoe bit ebitda. And pioneer 10 times. A lot of people say they are committed to stocks but very few are when the going gets tough. I intend to own them for quite some period of time. Im not selling them. Theur up they are up on a spike thats a fair point. Lets talk about shares of apple. Thats still your biggest holding. Still the biggest holding. It wasnt that long ago that tim cook was under a lot of criticism. His critics have been silenced because the company has in fact, made acquisitions. They have returned more cash to shareholders through dividend increases. Theres a lot of excitement for the iphone 6 which generates most sales and earnings. Thats all good. What has happened to the stock prices . They are now within 10 of its former alltime high. If you go 15 times calendar 15 earnings which is where the stock should trade or end, you know, its in the low 90s. Its a reasonable. How long have you holded on to that stock and what would cause you to sell . If it was ever overpriced, better alternatives for that. Look, apple is a mature growth stock. It is not the high creator stock it once with was. It was suffer from the law of large numbers. It already is. So the growth rate will naturally slow. I would be willing to bet over a couple of years our position in apple will be lower than it is today. I cant get used to seeing it 90 and change. It is an adjustment. Howard, thank you very much for coming in today. Thanks for having me. When we come back, upbeat news from intel. Well have the details after the break. And then a piece of the inflation puzzle. Index numbers will be out. And the Market Reaction shortly. S p flat. You need to see this. Show em the curve. Do you know what this means . The greater the curvature, the bigger the difference. [scifi tractor beam sound]. Sucked me right in. Its beautiful. Gotta admit one thing. Cant beat the view. Introducing the worlds first curved Ultra High Definition Television from samsung. Tdd 1800345255050 tjust waiting to be found. Ties tdd 18003452550 at schwab, were here to help tdd 18003452550 bring what inspires you tdd 18003452550 out there. In here. Tdd 18003452550 out there, tdd 18003452550 there are stocks on the move. 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Check out some of the other names moving on this deal. Im not sure they should be connected or not. Take a look. Yelp is up this morning, as is grubthe hub. Grubhub is delivery of food. And groupon. They thought maybe there was a way for them to get into reservations or other things. I remember talking, this was year ago, to andrew oh, right, the guy who is gone. The guy who founded the company. Well see where all that goes. And watching shares of intel this morning. That company raising its Second Quarter and full outlook citing stronger than expected p. C. Demand. Becky. Thats going to drive me crazy. Who was andrew mason . Thank you. Thank you. You have to answer it as a question like jeopardy. Who is andrew mason . Ding, ding, ding. I always thought apple would pick up yelp. All right. When we come back, the price index. What mark should do about iraq. Militants remain in control of key cities. Baghdad could be next. Squawk box will be right back. Im sorry im just really reluctant to try new things. Really . Whats wrong with trying new things . You feel that in your muscles . Yeah. I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. Experience a new way to bank where no branches great rates. Ally bank. Your money needs an ally. Welcome back to squawk box, everybody. A few seconds away from the ppi for may. Rick santelli is standing by. Take it away. Headlines ppi drops 0. 2 . Strip out the all important food and injury. It drops 0. 1 . Reversal when you consider the unchanged numbers from last month. Up 0. 5 on core. I know theres going to be some issues changing especially with the energy complex. If we look at some of the other intrinsic final demand year over year, 2 . Light expectations. 2. 1 last time. This is a pretty intense number. All the measurements and break evens on anything that has to do with higher inflation, deflation are loaded terms. But this will be something the market will pay very little attention to. There is a lot of dynamics on valuations and relative value that seem to at least for the moment trump some of the numbers. Back to you. Steve liesman is here too. There have been some disappointments this week in retail sales. I think the market is a little bit nervous about this. It tells you we have essentially a new index here. The bureau of labor statistics overhauled this thing spiral. So its completely irrelevant. Its not. Were making history here, becky. Were learning how to read what was an index that was a third of the economy to one that was 75 of the economy. I dont know if you know tomorrow. It tells me its a bigger problem with 75 of the economy. Hold on. Let me just get the history out of this thing here. Okay. My main criticism has been we shifted from an industrialized economy to a service economy. Sure. Statistics never kept up with it. They added a whole bunch of service data in here. And economist versus no idea how to forecast things like trade services, the margin for retailers and producers. Im getting up out of the weeds now. This is not an indication of the economy. There were huge gains in the last two months that elevated this index. My guess, i dont have the detail in front of me, these have come off. I think whats fair to say, were not getting a whole lot of pipeline pressure outside of commodities right now. You look at whats happening over in europe to the extent producer prices, we will deflate. Inflation is not an issue despite the concern and the market is ready to go boom if we get any sign of that. I know marty has a lot of concern about that. Hes had it for a very long time. Rick . I understand where youre going, becky. I really do. You think theres a side that gives you a positive in terms of demand and vice versa. I agree with steve on a nobody. I agree to a certain extent that the deflation argument around the globe is a selffulfilling negative spiral to inflate everything from financial asset prices to housing price. And i think when the reverse happens you want to do more so the deflation argument lives on. The type of deflation that was written up in the 30s and 40s is not going to happen in this country. Im sorry. Its a dumb way to base monetary policy. Its friday. Lets not have a big argument. Its friday the 13th. I cant argue. I just look at the facts. What do you call the mix of human animals. Jason turns into a werewolf. With a chainsaw. Do you want to talk about this . Its the last time this happened was friday the 13th, march 13th of 1998. So this is going to be a very good day. And it doesnt happen until 2049. Put your hands up again. Is that hair on the back of your hand . What about the solar flares . There we go. Play that with kill, kill, kill, kill. Steve will do anything to avoid an argument on inflation and deflation. No, no, no. What i wanted to point out just like your brethren. Whats happening is global. Its not just the United States. In fact, it looks like its worse overseas. Everything that happens is global, steve. Yes, i agree with you. You cant just put it on whats happening with u. S. Policies. In fact, the ecb seemed to hold the wine. Deflation is alive everywhere is what im saying then. I agree. Im a little lost. Rick is being sarcastic. He doesnt think its really alive. I dont think its a big concern right now. I dont think inflation is a big concern right now. Were pretty much in this 1. 5 . La say fair economy. This is a trivia question. Who was the murderer in friday the 13th, the original . There wasnt a murderer. The camp counselors werent paying attention. Was it piketty . The original was an accident. Kevin bacon made his debut. He made his debut in every other movie that came out. And animal house. The mother was killing the camp counselors because he drown in an accident. Exactly. He came back so many times. Even after he was dead six times. Would you walk under a ladder today . I would. They dont do a lot of things. They dont shake hands across. They dont whistle inside. That is bad luck. And they never talk about anything good there. Superstitions have been replaced by carbon tax. Better stay away from it. We played the lottery the other day. We did. We will come back and talk about whats going on in iraq. Because there is more tense pressure in that situation there. And then the u. S. Open, stanley cup playoffs and what you need to watch this weekend. As long as its on nbc. Over 1. 2 billion eyeballs are on us during the two weeks at wimbledon. True tennis fans want to know whats happening, they dont want to just see whats happening, they want to know and understand why its happening. Anybody can just put data up, but we want to get a reaction, make it far more interactive. We rely on the cloud to provide that immersive digital capability. Thleaving the firm . Oss said. Moving across the world . To join a start up. So he sent money and rented an apartment in a new land. Thats crazy, his boss said. What fun is life if youre not,he said. In over 700 cities worldwide, products and services that make a citi client anywhere a citi client everywhere. Means keeping seven billion ctransactions flowing. G, and when weather hits, its data mayhem. But airlines running hp endtoend solutions are always calm during a storm. So if your business deals with the unexpected, hp big data and Cloud Solutions make sure you always know whats coming and are ready for it. Make it matter. Welcome back to squawk box. The futures right are indicated theyre not doing much. Yesterday they were supposed to rebound. We said 90 points is nothing from the day before. Then we were 125. Right off our highs. I dont like when it starts slowly like this. Like a big crash fest. Scary one. Move from the weak hands to the strong hands. Are you superstitious about bitcoin . Did you physically write this story yourself . Let me tell tell you what is happening. U. S. Government planning to auction about 30,000 bitcoins valued at 17 million later this month. I dont know if that feels like a lot or a little. The bitcoin seized during an fbi raid on the internet marketplace was known as hub for transactions of Illegal Drugs and illegal activities. The fact that they are going on the market, the price of bitcoin has come off a little bit. The idea that the market is going to be flooded. But that doesnt sound like a lot of money to me. I guess its a lot of bitcoin relatively speak. The whole idea they are auctioning these off, you could have the numbers written down and know it was your property that was confiscated at some point . You know its yours pause every one has an individual. U. S. Government steps in. They are acknowledging, hey, this is official, valid and worth something. So maybe its good coin. If you flip it around, they bought something illicit so you cant claim your money because you did something a little i dont want to buy any bitcoin is my point. A week ago i was in fran and i walked out of there with my my head was spinning. I dont want to buy this particular bitcoin. These tainted bitcoins. Somebody who used them for illicit reasons and may want to come back to get me. So you were sold . I dont know if i was sold. But i saw something happening that made me that i theres all these people creating all these platforms. What are they doing . It made me think something was amis. Something may be happening here. That was the same back from San Francisco when you developed the baby hate too. It wasnt the baby hate. As you know, i sit next to children every day here. So im used to an air horn in my ear. It was the respite. You really only needed women, family, toddlers in coach. Some people, im sorry, have newborns. Im sorry. Sometimes they cry. People have to wear diapers. I understand that. The camera is not getting where im looking. There you are. Theres the megaphone in your ear. Im surprised you got the support you got, people that say andrew is right. A lot of our viewers are heavy business travelers. Let me tell you about other news. Univision held talks with cbs, time warn and others about selling the Spanish Language broadcaster but the talks appeared to have gone nowhere. We spoke earlier with Scott Spurling of thl. What was he saying, andrew . He loves that company. He says he loves that company. Falco. It is a great company. They have done well. They spent 12. 3 billion. Plus, they loaded up. That was the gamble. Do we tistill own telemundo . We do. We did a deal with them. Look, that market is expanding, exploding. In fact, when i was i in san jose from that studio, there was a telemundo studio where they do the morning show from. And the soap operas are great. Even on modern family did you see that . They had their own little incident with her relatives. And everything happened in one show. They came, there was a marriage, divorce, cheated. You dont have to wait long for everything. Thats the way we like it. To find out quickly. When we come back, jim cramer will wrap up the week on wall street. It is friday, the 13th. Theres a full moon out there. Watch out for solar flares. Squawk box will be right back. Monday on squawk box, Southern Company chairman and ceo tom agriculture fanning, Texas Governor rick perry, and Morgan Stanley head of m a monday morning right here on squawk box. In todays market, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price, maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Welcome back to squawk box this morning. This part is not funny. We were just talking before the break. Secretary of state john kerry making a few comments in london. He said the u. S. Is, quote, laser focused that is pretty funny. He said he anticipates timely decisions. Kerry calls the terrorist threat not just a threat to iraq but europe and the United States. Take a look at oil prices. Lets get down didnt need. Lets get down to the New York Stock Exchange where jim cramer joins us now. Andrew didnt know who henne youngman was at one point, but one of his greatest lines was can you get me a table near a waiter. But open table is not just to get a table near a waiter. Have you ever used that, jim . I used a waiter. I use open table conpoint. Youre a social you know, you need a cnbc i think. Ive never tried it. What do you use it for . To look at the menu first and to see whether i have to wait, i order vegetarian, so you know whether the place serve vegetarian before you get there. Its a nice ecosystem for people who want to know what they can eat. Do you think grub hub and all these others should be going up with it . Grub hub knows yelp wants to attack grub hub. You have a warn there. I was thinking if yahoo were to buy yelp and buy grub hub, then you could have this absolute fabulous app. But theres not a lot of love between yell yelp and grub hub. Theyre all great. By the way, kayak was bought by price line last year. The cheapest way to go there, who to stay with and now who to eat with. Now priceline has public together a fabulous trio. Im trying to think of the world in ten years where if you leave your house, does someone immediately take your place there, use your kitchen . Does every car have someone in it traveling somewhere and theres no parking lot left . Is every restaurant full . Is there no empty only if we can integrate gaming. Because we cant eat without gaming. We have to have call of duty while we swipe our credit cards and tell them what were buying ahead of time by showing them our handheld. And starbucks will charge our cell phone. There wont be any slack anywhere. What does that mean . Will we. Be much more productive . Will be be much richer . Maybe fatter. Jon. People have to start working out more. I do think this is the world and own drones can make it so we dont have to go out. Jim, i have a question for you. We had Scott Sperling from the private effect firm thl on earlier today. He said he thinks were in a period where strategic buyers have a leg up. They dont have a lot of great bargains, not because the market is so overpriced, but he thinks Strategic Partners have a much better time. I think you have to merge Strategic Partners with private equity. They buy jones. Now express used to be private equity, can come back. If you can do all these things together, i think you really are a true visionary. David faber has a bunch of guys we talk about, kind of merge the two and were able to put together some powerhouses. Watch sycamore. I think they may be the one that is on to the mob. Happy full moon friday the 13th. I s i saw that as soon as i got up and i thought wow, what a combo. The last time that happened was at my wedding. One of the great parties ever. It was. And a lot of smoking. Mark haines and karen cramer almost had me smoking, but i held back. I might have inhaled that night. Anyway and you werent even in colorado. No. Coming up, a big weekend for sports. The world cup kicking off and we could have a stanley cup champ. Were going to talk sports, sports business, just a moment. E financial noise financial noise financial noise financial noise hi, are we still on for tomorrow . Tomorrow. Quick look at the weather. Nice day, beautiful tomorrow. Tomorrow is full of promise. We can come back tomorrrow. And we promise to keep it that way. Driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. What a day. Cant wait til tomorrow. Alright, that should just about do it. Excuse me, what are you doing . Uh, well we are fine tuning these small cells that improve coverage, capacity and quality of the network. It means youll be able t post from the breakroom. Great did it hurt . When you fell from heaven awkward laugh . A little. laughs im sorry, i have to go. At t is building you a better network. The most expensive world cup in history kicking off in brazil. Joining us now from los angeles is Patrick Risch webster, University Professor of economics. Hes a sports business contributor to ford. Why so expensive . They didnt have a lot of stadiums built. Theyre spending 11. 5 billion, approximately, to put these games on. About 3. 5 billion to build the 12 stadiums. Not all of them needed to be built, but several of them did. Thats one of the reasons the expense got so high. So i did see a little bit of the first game. Was it brazil croatia. Yeah. And brazil handily won, right . It was a high scoring game . They made it interesting. I will say one of the things that is a part of soccer history, unfortunately, is flopping, faking injuries, faking fouls. The nba has dealt with this by fining players and maybe soon suspending players. And yesterday, huge play in the game, a player flopped in the parking lot box, gave brazil the goahead goal. They need to address that at fifa. Yeah. I dont think these guys are going to last long on the ice. If weve got hockey tonight, there would be no one left. No question on the ice. These guys, i dont know, maybe its because they have no equipment. And i dont mean that in a thats not blocked up. But patrick, i want a sixth game back here so badly. But the craziest thing is how many hockey suddenly as flourished. I guess its cyclical, wasnt it . Was it the lockout or the walk out that ruined hockey and now its back . Well, i think that they needed to change the economic dynamics of the sport. With the two lockouts that theyve had in the last decade, they have been able to get back to a really nice place. Theyve got a Great Television deal with nbc. So this really helps their economics. But going back to the world cup briefly, my biggest concern is if you have a lot of theres a large degree of income inequality in brazil. Youve got the seventh largest gdp in the world, but they havent done a very good job infrastructurally and operationally thus far. How is it going to impact tourism after the event or for the olympics in two years . Thats on a different network. Were done with soccer, im sorry. How about the at 9 00, 9 00 a. M. Let me just say a big picture a question patrick. And that is content, things that you dont dvr, its just going to go upandup and upandup and up, whether its world cup, whether its hockey or whether its golf. Absolutely. The sports rights have gone up so much in the last few years, you wonder. But i dont think its going to anytime soon. Patrick, i appreciate you being on today. Thank you for playing along. Happy friday the 13th, everybody. Happy friday the 13th. Have a great weekend. Look out for solar flares. Happy fathers day. Its time for squawk on the street. Good morning and welcome to squawk on the street. Im david faber with jim cramer. We are live from the New York Stock Exchange. Carl quintanilla has the day off. Lets give you a quick look at futures, shall we . We are looking at a higher open after, of course, a difficult day yesterday. Largely on fears of geopolitical on the left which showed itself in the price of oil which well get to in a moment. We do like to start off with no deal, one of my favorites, of course, i always like