Transcripts For CNBC Squawk Box 20160620

Similar gains for italy and spain. If you check out the currencies, thats where so much of the real volatility has been taking place, you can see that the pound is higher versus the dollar. Its trading at 1. 4635. The dollar is up against the yen at 104. 44. Finally, check out crude oil prices, crude down by a dollar last week with real concern on what was happening there. And that added pressure to equities last week. This morning, wti is up by 1. 5 . The gain is 73 cents to 48. 71. A couple stories we are watching this morning, Indias Central Bank chief announcing hell step down when his term ends in september. The news was not expected. Rajan has been popular with Foreign Investors and took control of Indias Central Bank in 2013 when the country faced the worst currency crisis since the 1990s. But faced creditism from the ruling party for not lowering Interest Rates enough. And he announced sweeping reform rules. This clears the way for apple to open stores in the country. Shares for apple are up 1 on the news. The idea is that apple didnt have stores in india didnt occur to me. No, this is the next growth market. This is the big shot. People talk about what can come next, even if you thought there was no innovation, india is a huge part of the bull iish rout. Also on this weeks agenda, we are counting down to thursdays brexit vote. Tomorrow the House Financial Services committee will testify on the economy and the monetary policy. Economic data, look for durable goods. Pretty good fathers day for sports. A big sports day yesterday. In sports news the cavs win the nba championship beating the Golden State Warriors. They were down at halftime and made it up. It was amazing. The cavs are the first time to ever come back from being down 31 in the final. Lebron, king james, leading his team to the Promised Land with a tripledouble. Hes just the third player in nba history to be named the finals mvp three times. And hes from akron, a native ohioan, to bring the first sports title home to cleveland since the browns won the nfl championship back in 1964. Fortunately setting up paul brown coming to cincinnati. Kind of founding the bengals and his family is still associated with the bengals. Thats in large part of the reason im a fan. Dan gilbert, the owner of the team, the quicken loans founder, i reached out to him last night when i woke up, he was still up. He said this whole thing has been a dream. Dan gilbert made this all happen. He went back to lebron and agreed on lebrons terms for him to come back to play ball. Thats amazing. The consensus is when the team wins 73 or 74 games or whatever. Forget it. Nobody can stop him, right . I had to hear from harwood. In the prompter, it said a commanding lead 20 or 31, a twitter person wrote in, four points is not a commanding lead. He had to write, four points is not a commanding lead. I said, you have to talk to someone. 31, no one has done it before. Pretty amazing. It doesnt mean it was not commanding. It was not clear in the last ten minutes who was going to win. This was bizarre, another champion was crowned on the course on sunday, on the golf course. This is great, great to see Dustin Johnson winning his first major with a threeshot victory at the u. S. Open. He finished with a birdie on the final hole to end the tournament at 4 under. It was 5 under until it was 5 under and they made him play under a cloud. Someone tells me that. The slightest thing happens to me and the wheels can definitely come off. He just said, im not going to Pay Attention to this. They were reviewing a moment whether he was trying to decide whether they were going to assess a penalty stroke on him. It didnt matter. It could have. It could have. But youre right, it would have crushed me. The guys behind him made it so that no one was close enough to catch him. But jordan spieth, he finished well off the lead. Jason day made a valiant attempt. Furyk was almost there posting a score that was pretty good. And in the next hour, well have more on the open from pro golfer bubba watson. That was one reason why twitter was pretty good yesterday because i saw what rory mcilroy and jordan spieth, they were all just hammering the usga. The guy came on and said that the rule is, so we asked dustin so the ball you could see he had not addressed it, but the ball moved basically like a millimeter. Because he accidentally hit it. No, he did not touch it. It was clear from the video that he didnt touch it. So they asked him, can you can you think of any other reason why the ball would have moved . And he couldnt come up with another reason. Wind . No, he couldnt come up with another reason. So because he couldnt come up with another reason, they said, well, then that must mean that you touched it. I would have said, the rotation of the earth . The one the one grass thing that happened when you put a ball back down, you never know that it could be just barely ready to move. But i watched it , his club fac didnt touch the ball. By the way, this is a guy who lost in the past because he was penalized. Someone called in and said, wasnt that a bunker he was in . The usga looked like it was not good. He should have been able to take care of it without any questions one way or the other. Luckily for them. Because then then they had the announcers, i like the technology on fox, but i miss some of the guys im familiar with to cover golf normally. Anyway, they they just thats all they talked about for the theres a two hours. Then they had to alert the other players, wait a minute, if the other players dont know how close they are, they may play differently if they were one stroke back instead of two strokes back. So the entire tournament people were, is he not going to be assessed a penalty . It was just i cant say what it was without cursing. It was like a big it was a muddy mess . Hows that . It was all mucked up the way the usga handled this. Even a swing of the Golf Tournament or i stayed up to watch the basketball game. Did you really . That was like an 11 00 game. I did. Because as it was going, you couldnt stop it was so close. Talking about things getting mucked up, the polls swinging for the eu. Wilfred frost as more on this story. Wilfred in. Reporter good morning, guys. Yes, indeed, here outside the house of parliament, it will be a special session at 2 30 p. M. Local time today to pay tribute to the murdered mp jo cox. Whatever the reason behind it, theres been a big move in the polls over the weekend. Last thursday the ft poll of polls related to the brexit vote was 48 leave to 43 remain. That same poll after individual polls came out over the weekend is 44 each. And that clearly had a big effect on markets around the world rallying as the remain vote suddenly gains a bit of traction. In terms of diving down, its the reason that change in sentiment of the polls, it really comes down to unity. Increased unity on the remain side, reduced unity on the other side. On the remain side, both between the labor party and the conservative party leaderships both backing remain, theres increased unity. Jo cox was a labor backing remain. And predominantly coming out to vote remain, now theres a sense they will, in fact, turn out to vote. Perhaps it was lacking unity for some time before that. On the other side, terrible timing for the leave camp. Nigel faraj came out last week widely criticized by the likes of boris johnson, the leave campaigner from the conservative party, saying it strikes the wrong tone. Its not the reasons britain should leave. That is just highlighted the latest in the polls. The campaign has been suspended for the last three days. The leave was gaining traction. Over the blast three days of no campaigning, they remain back. The next three days we have a lot of campaigning to do. They have to fight back to get more momentum. Wilfred, thank you. Youre there, youve been there all weekend and you have been feeling things back and forth. Do you have any idea which way things are leaning just from people youre talking to, from what youre hearing . I know it is almost impossible to know at this point, but is there anything surprising to you about the move or that caught you off guard . Reporter british people, we dont really shout about politics. We dont wear our political allegiances on our sleeves and discuss it loudly and argumentatively day in and day out. And that is happening with this debate and happening this weekend at a reduced rate to what happened over the last week. And yet it still significantly elevated as an issue than it was in recent weeks. Lots of arguments between friends over pints at the pub has been happening over the recent weeks. Thats pretty rare. People have been really riled up by this issue. Because its very divisive. In one sense, people might just want to leave purely for sovereign issues, purely for Economic Issues. And then they get labeled as being xenophobic. Undoubtedly, the polls are close. When David Cameron announced this referendum a year or so ago and confirmed the date for february, he never thought it would be this close. Its unleashed certain senses in the british rhetoric which he didnt expect to come and it made it much closer than expected. Either way, however we look at it, it is incredibly close. The markets are dancing to the tune of brexit news. Today that tune is positive for markets. Who knows what will happen the next three days as this campaign picks up pace after three days of delayed campaigning. We dont argument in the loud terms like some countries that im not going to mention, but we have the terms of civility and calm spirit in no way similar to some other places where ive been spending some time lately. Our soccer matches, our fans are always very, very low key. And in the house of commons you mean football. Yes. In the house of commons, we trail have fistfights. But usually not like some other countries. All right, wilfred, whatever you say, buddy. Whatever you say. Reporter its an observation in terms of political discusses. Im not saying its a bad thing. Okay. Thats big of you. Reporter this is a good thing. This is a good thing, this debate. With the tone needed to come down a bit, turnout is expected to be high. Young people are excited by it. Im not saying its a bad thing at all. But its an observation i would make in the uk and think its a fair one. I do think the politics here have gotten quite a bit louder, too. Its a reflection of the sentiment around the globe at this point. It is something that is happening in a lot of different countries. Wilfred, well be checking back in. Reporter no doubt. The markets are waking up to it. Never usually do the markets care about the british politics. They certainly do this week. The whole world is watching. Wilfr wilfred, well be watching you and will check in again later this morning. For more on the fallout from brexit, well bring in joe and david kelly. Gentlemen, well talk about what the market is prepared for and geared up for. This morning, david, were looking at the futures sharply higher 185 points for the dow. Thats on the idea that a remain vote is more likely. What where are we which has the biggest position to lose . What is the surprise position . The first thing is, its too close to call, 44 44, im sorry, im not going to make a bet on it. The second thing is, if they vote to stay, then what weve got is uncertainty coming down on status quo. Thats got to be good for risk assets overall because its net positive with less uncertainty. If they vote to leave, it is really hard to know how markets will react because theres been so Much Negative pressure on sterling and Global Markets. Maybe its not as big a deal for the Global Economy as people like janet yellen seem to fear. Youre thinking that if they if the vote is to stay, that markets potentially rally. If the vote is to leave, the markets may stay calm and nothing happens . Well, we dont know. What we could see is happen is sell the rumor, people buy the fact. People will say, maybe well be okay here and all the negativity is sort of baked into that stage and markets rally. The uncertainty is certainly heard in the markets. Joe, do you agree with that . What you dont know about the playout on this is it is absolutely right. The status quo is what is going to be supported. So the moves in currency will be reversed whichever way the vote goes on. So if they vote to say, wednesday up where we were before. You have seen the volatility in the sterling and spilling right over into the euro because people are afraid of what is going to happen. If they vote to go, we dont know how long this will play out. You will get a reversal in whatever the fear vote was leading up to the exit vote. Although what wilfred pointed out, no matter what happens, half the country is going to be mad. Thats right. The thing im looking for, now its on twitter, if theres a vote to stay, everybody will be depressed. Where was that . The wall street journal today. The hedge fund. Right. Half and half, theres going to be a collective gray so we are going to stay in this mess. But if they vote to go, then the negotiated departure is going to go on for years. There isnt going to be that much change for the next six months or the next year. So its not a big deal. The economists are overplaying this . Exactly. I think they will wind up where they are right now. Very little change. But the Bilateral Agreement between the uk and europe is going to be quite, in many ways, similar to the agreements they have to put up with as part of the eurozone. Because the rest of the europeans are not going to let them have some sort of sweetheart deal to get free trade and nothing else. Although they have made a fairly effective case in saying that whats germany going to do, stop selling them cars . They would be more hurt by this than the uk because they are importing more. They have to make an example of britain if it leaves. Because if everybody the problem is, im not saying i necessarily agree with this, free trade is the most important part of the european pununion, if you can have free trade, then other countries say, why not us . Why dont we do that . So the cohesiveness of the European Union will be badly damaged if you can just have free trade but not the rest of the stuff. So joe, a lot of the places we have seen the turmoil break out has been the currency markets. The best place to get the read for what smart money is thinking. Thats exactly right. In the end, either vote will end up not very different than where we are now. If you get speculation currencies now, as we saw when it looked like the leave brexit vote was going to win, the sterling goes down, the euro goes down and the yen actually went up. Those are the standard trades in gold that went up. Those standard trades are going into a fear of departure. 146 sound like a fair level for the pound . I would say you can probably go to 148 or more if you get them to stay as it seems to be now. Another point which is true that if they do leave and have to negotiate, the people doing the negotiation on both sides are predisposed to continue the relationship. So youre going to get a long playout thats going to end up in kind of a similar situation. Its almost that the vote is a little more symbolic for political sovereignty than it is for economic sovereignty or economic difference. But markets dont like uncertainty and that is one thing this will add to over an extend period of time. They do not like uncertainty and also like to trade. Uncertainty is a good catalyst for if they vote to stay, one of the reasons the fed has for not moving goes away. They have to find Something Else to worry about. They will. Gentlemen, thank you. Good to see you both. Coming up, ken feinberg is consulting with the mayor of orlando to help compensate the victims of last weeks terror attack. He joins us next to talk about the channllenges in helping the families after the attack. For decades, investors have used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. Ithere was 14 of us in a four bedroom apartment. To be the first kid to buy a house. Its a very proud moment. Whatever home means to you, well help you find it. Zillow. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Welcome back to squawk box. More than 50,000 people attended a vigil for the victims from last weeks attack in orlando. Candles were lit for each victim as their names were read. Kenneth feinberg is here with us this morning. You seem to always get some business when bad business takes place. You pick up a newspaper and you hope you wont get the call. But you do, so you offer your service like everybody else would. So how does this happen . Did you just get a call out of the blue last week . I got a call from the mayors office. And then a call from a couple other funds down there. So i was been consulting various funds trying to help them fashion some sort of program. They have millions of dollars of un unsolicited funds. How much is it now . I think it is over 10 million. How you coordinate that, get everybody together to determine who is eligible is a challenge. So how do dyou think about . Well, you have to determine how much you have. How much goes to the families deceased and how much goes to the physically injured. Who gets the money . Theres always a dispute when theres money to be had. Mr. Feinberg, im the sister of the deceased, he didnt like his brother. Make sure he doesnt get it. Im a mother and split with the father. Youre like king solomon, how do you decide . You usually look to the local law and decide if theres a will. If theres no will, there wont be many wills. Deciding who will get the money and try to get it out as fast as you can. Speed, thats critical. And can i ask, so lets say theres 10 million, we know we think we know how many victims there are in total. How do you think about breaking that money up . And how do you think about breaking up the money to the relatives of people died and those still alive . First you decide how much money you have. Then you decide how much of that theres no magic to this really. How much should go to the families of the dead . How much should be reserved for the physically injured in what about the people in the night club who didnt get physically harmed but mentally harmed that are unable to go back to work. And you sit around a table and try to work out as best you can how to allocate limited money. But im going to make it difficult, maybe this is not difficult but somebody who is terribly injured who is going to live, not necessarily with just mental issues but physical issues for the rest of their life. And the cost of that is could be remarkably expensive relative to somebody who has died . Although in america, death is the worst. Death. I know. Death usually is the priority. But youre right, i mean, weve had cases in 9 11 where people escaped the World Trade Center from elevators and were in a wheelchair the rest of their life. And you try and decide the cost of care for one victim might more than 10 million. You have to give limited amounts. But remember this also, bad things happen to good people every day in this country. And theres no fund. So this is a gift. No one is required under this program. No one is required to say unlike 9 11 or bp, i will not sue. This is money thats been donated by private individuals. Boston marathon, we had 61 million and gave it out, its a challenge but doable. You have done this frequently. How often are you able to do this in terms of you cant make 100 of the people happy. Happy. But where do you come down . Like, this is a monument tall task to try to divvy it out. Any time you do this, i dont care what the tragedy, brace yourself. Theres no happy, theres no thank you, theres no gratitude, there is no appreciation. You dont expect it. You are doing this as a Public Service, pro bono, you dont want to get paid for this. And you do the best you can. But you dont expect people who have suddenly lost loved ones to a traumatic horror to, in return for money, to expect thank you. The other thing you do learn, though, never underestimate the charitable impulse of the american people. Its astounding to me. People all over the country just send in money unsolicited. We saw it on tv, we saw it on squawk box and on this and that send a in money, millions of dollars. No nation on earth has that type of private charitable impulse like in america. Kenneth feinberg, thank you for all youre doing. Really appreciate it. When we come back in, linked in has a top list of those companies attracting talent. They are ranking employers on engagement for potential applicants and how long new hires stick around once they get the job. Well reveal the top lists after the break. Right now, heres a look at last weeks s p winners and losers. Its more than a network and the cloud. Its reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. Puwith meta appetite control. You and temptation clinically proven to help reduce hunger between meals. New, from metamucil, the 1 doctor recommended brand. What are you doingetting faster. Huh . Detecting threats faster, responding faster, recovering faster. When your securitys built in not just bolted on, and you protect the data and not just the perimeter, you get faster. Wow, speed kills. Systems open to all, but closed to intruders. Trusted by 8 of 10 of the Worlds Largest banks. Welcome back to squawk box. This is cnbc first in business worldwide. Youre seeing a rally this morning, but the dow futures are up by over 187 points above fair value. S p futures up by 23. The nasdaq up by 48. This is all happening as it looks more likely, at least according to some polls, that the british will stay in the eu. Of course, things are very close. You still have three days before the vote takes place. And what will happen is kind of nip anyones guess. Check out the treasury market, the yield on the tenyear is at 1. 67 . Check out what has been happen manager the british pound this morning. Youll see some strength there after a lot of weakness last week. Right now the british pound trading at 1. 4617. This is happening as the latest polls indicate that the stay may have improved from last week. Although the ft is showing 44 44 in favor versus leaving. Well talk about the stocks to watch this morning, glaxosmithkline says a drug meets the latestage goals it needed to pursue further. And regulators said as recently as may they expected approval by july 2nd for the cignaanthem merger. And the Justice Department is dropping a case against fedex accusing them of illegal drug trafficking. The stock is flat at this point. I am soaking up the experimental lung drug. Is it for cancer or for copd or Something Like that . But it doesnt really do it for me. I dont know. Just interesting. Time now for todays experimental lung drug. Ill look it up. Time for executive edge. Linked in launching the first list of top attractors. This is Ranking Companies that people want to work for fueled by the social professional networks data. And if you look at sort of the companies that have the most sort of buzz. Its just what you would think was the first thing i would look at, but then i had a lot of questions as to how its going to work. So things like google, tesla, facebook, uber, the ones with all the buzz. Joining us is no caterpillar on there, suzy walsh is here, contributor editor at linked in. I thought i better not go to the liberal arts course. Its all i. T. I wanted code, i want to be an engineer to go i want to be a Software Type person unless youre in management. Are these management types that i guess that would work as well with these companies, they need managers. Well, what is looked at is where people really want to work regardless of the job. People want to work in the sort of tech, the Top Ten Companies are all tech. They are the exciting companies. They want to work at uber, they dont want to drive the car. They want to work at amazon but not be a delivery guy. They want to be designing the innovating with the technology or managing employees or something. Theres always kinds of jobs, marketing, support there, as you learn to be product manager, become an engineer, you just want to be at the companies that look great on the resume that you learn things and get a lot of responsibility quickly. Even if you look at the nontech companies, the company that is show up there are ones that give a lot of responsibility very early. Like striker. You know striker . I saw the movie striker. We used to have the ceo on all the time. They got saws that cut through your enough. Striker is on there because it gives their people responsibility very early and say to them, you go and get yourself with a hip doctor, tell the doctor you can make your own product, find your own sales and marketing people, dont worry about the Corporate Office in kalamazoo. Do it yourself. I wish you guys could tell me five years what the list will be to make some investments. But cocacola number 20. Proctor gamble, General Electric it is weird. A lot of the brands are Consumer Brands that people feel Great Association with. Coke being on there, it is not like the other companies on there. Why . Sales force, i think they have a very celebrity ceo as part of it that talks about the culture and meditation. You feel a sense of excitement and feel like you are creating the future there. I noticed you pointed out the sales force, consulting with monks or something before designing the the perks are base line, you have to have it. But people dont go to work for perks. Suzy and i noticed very quickly was there are so many founderbased companies. Many can say, i believe in monks in the office, i believe in giving back, seven days off to volunteer, those are things people want to work for places they are inspired. Yeah. I was going to ask about bezos, amazon is a company that has gotten a wrap about being a tough place to work at minimum. It was a little bit of a surprise because it had discussion about the culture in the media. When you look at the companies, twitter has had discussion about its management and yet these Companies Still overcome that with their buzz, the sense of excitement. They are the future. And people want to have that credential on their resume. It sounds like getting into harvard. These companies are where people want to go. How much of this is about the stock price . If people want to go work at a company where the stock is going up, but then i look at twitter, which you look at that stock and that has been a struggler for the last year and a half. Growth is a place you want to feel like its grow. Even if the market is not rewarding the company, if you work at twitter, you will end up with valuable experience to take anywhere and also with future employers say i was at twitter and helped to build it. And some companies that are ahead of Goldman Sachs these people were looking for excitement and cultural opportunity. You dont get any perp traitors of the financial crisis. There are only four Financial Institutions on the list. Whether they are bad actors, people want tech. Under armour is on the list, that is interesting. How about under armour is there and not nike . Big Sports Companies appeared on the global. But under armour is powerful and exciting and the ceo is out there. If you were to merge the global list with the u. S. List, how does this ranking change . Meaning does adidas and nike get on much higher they show up on the global list. You can see differences if you look at the country list, in the uk a lot of retailers are at the top. In australia its all companies that allow Flexible Working environments. People that can work from home, can have their own hours. Pwc lets People Choose how many hours they want to work. Let me ask you about the flexibility factor, if that ranks so high, how come more workplaces dont take that into account . It ranks high elsewhere. Doesnt it rank high in the United States . I mean, looking at the differences between the different lists is fascinating. Theres not one retailer and one manufacturer on the u. S. List unless you count tesla. Viacomm is 33. Entertainment is high. Entertainment is a small part of this, we have netflix, viacom, hbo. Again its that buzz factor. Something to relate to, i work at this company that you use ten times an hour. He has advertisements to play on the whole idea. You have seen it. Absolutely. Im going to be doing this and that yeah, at ge im going to like his friend is like, ge, not to starbucks or Silicon Valley . Well be writing for the entire Health Care System and creating the software. No, but youre not making a selfie where i can draw a beard on. Not at a company like that . They do that. I see microsoft is on the list but where is linkedin on the list. You dont want to be on there two thursdays ago. That would be your number one place. Microsoft has to worry about this next year. Well have to see what happens to the rules and them. And youll have to say, well see what is happening to us. Okay, thank you. I like comcast, i dont care. Thank you i just feel bad about myself. You can work at any of the companies. I dont want to go work there. This is another example im out of touch. You can endorse your Linkedin Profile. Do you have a Linkedin Profile . I dont have facebook. You only need one, linkedin. I have people ask me constantly if i can do their linkedin. Thanks to suzy walsh and dan roth. Larry fink is going to join us at 7 45 eastern to talk about the companys spot on the linkedin top attractors list. Well tell you how much you will save after the break at the pump. And well talk about the potential fallout if the eu votes to leave. Well take a quick look at the european markets right now. Back in a moment. In a world held back by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Welcome back. U. S. Equities are sharply higher this morning as polls reversed in the last week or so about whether the uk stays or goes. And after climbing for 15 straight weeks, gas prices have dropped. The average price at the pump fell 1 cent in the past two days to 2. 37 a gallon. I cant believe what a penny pincher you are when you fill your gas tank. According to the latest lumberg survey. I get 15 gallons, thats 15 cents. A good deal. Finding dory making waves at the box office. It was awesome. We saw it at this weekend. The boys loved it. You took the kids . By the way, i cried at the end myself. Im just telling you, it was great. Dont tell me im not saying anything, it is just that good. They are Computer Generated things, andrew. I recognize that. But such a great storytelling job. They had me emotionally invested in dory and the family dont give it away. Dont give it away. They do such a great job. They do. This was all about, obviously, finding the right script. The first one was great, but they really did a brilliant job. Does dory get lost or something . Im not going to say. But i will also say one thing, they have a short you know sometimes pixar does a short. And this short is so astonishing, not in terms of the story but the actual graphics are out of control to the point where thats the future of the cgi stuff, the game is over. I mean, it is just out of control. Do we know any of the other characters . Are any of them from the previous one . Nemo. Besides nemo . No Dennis Oleary or voices from the the fish are all probably dead. They dont live that long, tropical fish, you know what i mean . Its tough to make a sequel. I guarantee you make a sequel eight years later most of the fish in our house dont live that long. Eight weeks, you need a sequel if youre lucky. I dont know about eight weeks. Then you try saltwater tanks, the slightest thing goes wrong with the ph we have a tank. Its a problem. It is. Isnt it . All right. I thought i had more to read. You did. When we come back, the potential effects of brexit on trade. Michael froman will tell us why it is better for the United States if britain stays in the eu. And coming up at the top of the hour, our guest host is david miliband, the secretary for foreign affairs. Stick around, squawk will be right back. Olay luminous illuminates skin with pearl optics science. Your concert style might show your age, your skin never will. With olay you age less, so youre ageless. Olay. Ageless. Hows check it out. Lights. . Meeting configuration. Blueprints. Call hruska. Weve gotta set up a meeting. Sure. How do you spell that . Abreu, albert, allen, anderson c, anderson r. You know what . Ill just tell him myself. Door. Andrade. Its about Time Business Communications caught up. Call anyone in your network just by saying their name. Call hruska. Vonage. Business grade. People friendly. Welcome back. The count down is on to the brexit referendum. Our next guest said it would be beneficial for the United States if the u. K. Stays put. Joining us now is u. S. Trade representative michael broman. Thank you for being here. Thanks for having me. The british polls are close at this point. What impact would it have on the United States . Its up to the british people to decide, but our view, we value strong u. K. In a strong unified European Union. We think they have a strong voice in there they can play a strong role internationally. We want the e. U. To be outwardly facing and being able to engage all sort of issues whether its fighting terrorism, dealing with Global Economic. Its important we have a strong e. U. It sounds like a political perspective than an economic one and tradebased one. I think we have to see the impacts if they go down that route. We have close, indeed, investment relationships with europe. About 3 billion in trade cross the atlantic every day through good and services. We have a 4 trillion investment relationship. So that will remain close, but we want to make sure were doing Everything Possible to ensure a positive relationship Going Forward. We spent the time trying to speculate what it would mean in terms of what the e. U. Would do. If there was punitive measures they would take against the u. K. For leaving. Im guessing that the United States would not look at the u. K. That much differently and we would want to have a strong trade partnerships with them, with or without the rest of the e. U. We have the special relationship that has existed for a long time with the u. K. That will continue to exist. I think the conventional wisdom is theyre going to have to renegotiate a lot of their relationships with the European Union and with the European Unions trading partners. From our perspective on trade policy, right now were focussed on two platform agreements. Transpacific partnership and the transatlantic trade. Those are our priorities. This Campaign Season hasnt been friendly toward trade. I cant think of a candidate that stood up to definite tpp. Nobody left standing in the race at this point. What happens . With regard to tpp, its gone, its ready to go. The other countries are moving ahead with their ratification process and were working congress. Were consulting with the congressional leadership, with the committees to find the right time to bring it forward. The good news when were up on capitol hill talking to members of congress, they care the most about how it impacts their constituents. Now that the deal is done and they can analyze it, they see the broad benefits that are there. They also see the costs of delay of not getting it done this year. There are economic costs. The Peterson Institute said it will be a onetime loss of 94 billion. Thats about 700 tax on every american household. The cost of u. S. Leadership, were conceding the role to others like china or negotiating their own megaregional agreement and strategic costs. The Prime Minister of singapore said if we cant if youre not prepared to deal on issues like cars, services, and agriculture. Cant trust the leaders making the deals to get it ratified. Is the right time between november and january after the election and before new inauguration . We like to see it done as early as possible. Some indicated that would be their preference. Were going to continue to work with them. Donald trump said hes not opposed to free trade but doesnt think the free trade negotiation s we negotiated are free trade. Without commenting on any particular candidate, i think tpp is the highest standard trade agreement we have negotiated. It eliminates 18,000 taxes on our exports. It opens some of the Fastest Growing markets in the world that have been closed to us for years. It raised standards across the region. Labor Environmental Standards or intellectual property rights. It poses disciplines on Big Government owned state own corporations that compete with our private firms. Its a good deal. Ambassador, thank you very much for joining us today. Its great to see you. Coming up larry fink will join us in about 45 minutes. Right at 7 45 eastern. And later Morgan Stanley former ceo john mack will join us on the squawk set to talk banking, the brexit, and more. For decades, investors have used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. And well have to use like double maybe more im going back to the store . Yes you are. Dish issues . Get cascade platinum. One pac cleans tough food better than 6 pacs of the bargain brand combined. Cascade. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Global markets rallying as brexit fears are easing. New polls showing the pendulum swinging back to the camp. Break down the market implications in the future of the e. U. With two special guests. How worried are americans about the future of the economy . Is the president ial election Holding Back Growth . The results of the latest cnbc all America Survey are straight ahead. All that plus Dustin Johnson dusts off the drama to win his first major. King james is the king of the world. Bringing the Cleveland Cavs their first championship ever. The highlights and low lights as the second hour of squawk box begins now. Announcer live from the beating heart of business. New york city. This is squawk box. Welcome back to squawk box here on cnbc first in business worldwide. Its late at night. Its light in the morning. I dont know what the heck happened. I dont know what the heck its the summer sol ties. That would explain it. It coincides with the full moon tonight for the first time in 70 years. Supposedly like ware wolves or yeah. Im not kidding. People prone to the moon and its influences. The cases that come into the er. As you point out, its a longer day today. Its a longer brightness part of the day. Its not more than 24 hours but youll see the sun for longer. It tefeels like a longer day every day feels long for us. Global market rally underway this morning. Europe leading the way. As fears of the brexit have eased. I dont know if you can put it in the bank yet. Well see. You never know with the polls. I used to poll people on the landline. No one has a landline so how do you poll people anymore . I dont know. You cant do, you know, like an internet poll, because then whoever wants to do something to get all their friends those arent scientific. At this point, it seems different. You look at Something Like the betting or just look at the british pound and that seems to indicate that the tide has shifted pretty significantly back to the remain as far as smart money is concerned. Right. Indias central bank chief announcing hell step down when his term ends in september. He has been pop already with Foreign Investors. The former imf chief economist took control in 2013 when the country was facing the worst currency crisis since the 1990s and widely credited with handling the situation well. He faced credit schism for not lowering Interest Rates enough. It goes back to the conflict how political or apolitical a central bank can be. The average price of gasoline in the United States has levelled off to 2. 37 for a gallon of regular unleaded. According to the latest lundberg survey. Prices have dropped by a penny. It came after nearly three months of rising prices. The highest average price for gasoline was 2. 90 in the San Francisco bay area. Finding dory making waves a the box office. The film taking in more than 136 million in the opening weekend. It sets a new record for animated film. Finding dory making the biggest pg opening ever. Im endorsing it. And the largest pixar. Do you think ellen deserves an oscar for playing a fish . Possibly. She was great. She was great. The reason im asking. I saw variety had a piece on that. Does ellen deserve an oscar for playing a fish . Yeah. Its a great movie. You have to see it. Without the kids. I know. Youre going to take the kid. I would see them the second time without it. Without the kids . Im telling you. Its a great movie. Lets talk brexit its called a film, even. Its a movie this is a film . The room is a film. This is a movie. Movie. Fine. Brexit concerns easing a bit in europe now. New polls showing that the remain camp regained some momentum ahead of the weeks referendum vote. Willfred is joining us with more. Reporter yes, indeed. Campaigning have been suspended for most of the weekend and friday as well. During the period weve seen four polls come out and it had a significant shift. The ft said a fivepoint lead leading 4843. The same poll at 4444 each. Earlier despite the shift in sentiment i was speaking to a lead Campaign Member for vote leave. He was unper teshed by the polls. He felt confident and we should look at the last june sentiment more than any couple of days. It needs to be right. Dont forget campaigning starting again. Hell need to keep the debate focussed not so much on the economy where remain gain grounds, but immigration and sovereignty. Here he is summing up the sovereignty argument. This vote is about who governs it. It may be astonishing to people around the world, theres a debate going on were the oldest parliament in the world. So we got three days left until that allimportant vote. Of course, as you mentioned, the polls moving over the weekend. Markets responding clearly to that. The dax up over 3 and the pound up nearly 2 . Guys . Thank you for that. Joining us now is jim pullson and our guest host this morning is david millban. Head of the International Rescue committee. Is that okay . Yeah. Youre ready . Im not going to i thought you were going to be asking some questions. Thought i may have ill see how it goes with you. Im watching. Okay. I wanted to make sure. Go ahead and handle this. I will. Or i can ask one for you. I think hes no. [ talking over each other ] how are we supposed to think about this exit whether it happens . How is that, andrew . Its pretty close. A tough one. You should think of it as a contest between the economics and the debate about immigration that has been broiling throughout the campaign. Essentially the remain people won the economics argument in the first few weeks of the campaign. And youve had a default through some demonzation of turks allegedly coming to the u. K. And the whole cure of refugees and its been a campaign that is two faces of britain. A face of britain i think its more national. You think of the british empire, and suddenly the laws are being dictated by thats not the rules in brussels are written by National Governments that sit around youre only half in, anyway. Youre going keep your currency. The best of both worlds. Thats the economic argument. The people say if we didnt get in the euro we would have the economic chaos. That didnt happen. I heard the camp saying these are the talking points come ought of the conservatives and the labor party people this morning. I heard it both the labor mp and a conservative mp this morning. Ian duncan smith was on and i heard it from npr from the labor party. The person saying, look, it was the same economists thats not true. You have ten Nobel Prize Winning economists today saying it could still work out even though they are saying it. It could be the right thing even though you have the economists saying its the right thing yeah but i wouldnt argue from that point. When you have ten economists and ten opinions, not 20 opinions you should realize thats the same consensus christine said. I would never use hang on. On reason which is a feature of a lot of politics is not something we should i want to play something to you, which is read something to you. This is this is a viewer. You know this viewer well. Were going to leave the name out. Im curious what you think. The resentment is about east europeans who are entitled to live and work in the u. K. As e. U. Citizens. They often hold the lowskilled badly paid jobs the brits dont want. Send them out i wont read the rest of them. It gets a little more complicated. Theres a significant part of that. Historically the debate about immigration in the u. K. Was about people from the asian subcontinent. Or poland or bulgaria. Its not a racist thing. Its about the movement of labor. The truth is, theyre not coming to get welfare benefits. Very few are unemployed. Theyre doing jobs that people dont want to do. Hey, jim . Yes . You there . Yes. Lets assume nothing happens this week since thats what the betting line is. Tell me what happens after well, you know, i think well get back i think brexit it reminds me a little bit of the fiscal cliff. A selfinflicted wound that is probably outsized in terms of the fears generated. I think we get beyond it, probably, and get back more fundament also. I think those are looking better and better, andrew. I think weve got a broadbased rally on the lows which is much broader participation than we had in august. Weve got no competition from the bond markets. Even though stocks are way up. Yields are going down. Theres no break for the bond market on this rally. I think weve got Rising Economic momentum. If you look at economic surprise indexes about the globe, all of those are up including in the United States. I think thats a great backdrop. And one thing that made the bull market great, in my view, is climbing the perpetual wall of worry. That kind a little of 2015, but fear is back and its the backdrop for this bull. I think its going to take us to new highs. Right. You got a question . I do, indeed. Good morning. Good morning. I want to bring it back to the economic point you made. Whether or not, of course, youre right that the remain camp has won that argument. I wonder what you think about how this campaign has been run by David Cameron and george osborn. It seems like they havent made that many strong, positive arguments why britain should remain. They focus on the negative arguments what happens if britain had left. It almost seems to be telling voters how to vote based around the negative economic projection rather than positive reasons for why britain should vote to remain. I think its two sides for the coin. Britain was the slowest growing economy in the g 7. Since we joined the European Union weve been the Fastest Growing economy since 1973. Theres a positive argument about building on success and a real threat about what happens if we leave. And, frankly, youve got the leading investors from the Car Manufacturers to finance housers saying jobs will move out of britain if you leave the europe union because the access to the Single Market is key. They made the positive argue and rightly, in my view, sent a clear warning about the dangers. The bigger problem for them is 20 years of the conservative body being skeptical about euro creates a difficult backdrop to come in and say we think you should stay. Thats if i heard you right at the top you frame it as a sovereignty excuse me, an economy argument on one side versus an immigration argument on the other. Leaving out that sovereignty argument. Do you reject that sovereignty argument. It seems to resonate with a large portion of the electorate, at least. The biggest Decision Makers in the European Union are the national leaders. Ive sat around those tables. Nothing gets done in the European Union unless the representatives of each nation agree. I think its important to take on in the world that is more connected, cutting itself off doesnt increase your power to leave the biggest political and Foreign Policy block that exists in our part of the world. And so i think its really important to take the argument head on. Choosing isolation in the big ocean of globalzation. Can you speak to this . The New York Times reported this morning not only would it be painful for the u. K. , but painful in a different way than i think maybe were talking about. The idea that the rest of the European Union would, quote, retaliate. I dont think they would retaliate but they would get on with their own business. If britain pulls out, it changes the balance of power. Its also its one of the biggest economies in europe. Second biggest economy in europe. Its a massive hit to the european project. And Global Economic stability and growth over the last 40 years has been powered in a significant way by the European Union. Its a pillar of the economic and Global Political system. To pull the u. K. Out of it doesnt mean immediate collapse but the danger is a ricochet effect through the rest of europe. Jim, before we let you go. How do you play it going into this week . I know what you think is going to ultimately happen. That means you should play it as if its not going to happen . I think that this is the type of thing, to me, andrew, that most investors are prepared for. Its called diversification. I think to go beyond that, i think, would inappropriate and probably expose you to just as much risk of missing out than it does exposure. If anything, i would use the volatility likely to continue through thursday to take advantage of positioning myself where we want to be after this. This is more of an opportunity as an investor than something to put on more risk adverse positions towards. I just like to say, thing is more of a global phenom. Its the same brexit issue, its the same as Trump Building a wall here in the United States. Its the issue that has broken out across the globe of isolationism. Ultimately, if it wins and we fear immigration everywhere everyone just goes to their Economic Activity within borders and trade goes away. I dont think this is a british issue as much a global issue that is i hope gets somewhat extinguished and we move on to open trade and openness of economics. Ultimately, if we all get too worried about our own economic growth. Jim, appreciate it very much. Youre going to be sticking around. When we return Dustin Johnson winning his first major. Not without controversy. His fellow golfers taking to twitter to blast the usga. Well talk to bubba watson about Dustin Johnsons big win, penaltygate, and more after the break. More on brexit, the economy, and the election. Nothing is off the table for larry fink. Hell join us live when squawk box comes right back. Its here, but its going by fast. The opportunity of the year is back the mercedesbenz summer event. Get to your dealer today for incredible onceaseason offers, and start firing up those grilles. Lease the e350 for 499 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Welcome back to squawk box. The Cleveland Cavs winning the nba championship beating the Golden State Warriors 93 to 89 in game seven. The cavs are the first team to come back after being down 31 in the nba finals. Lebron james leading his team to the promise land with a tripledouble. Hes the third player in nba history to be named finals mvp three times. Lebron is a native ohioian. Its the first championship since the browns won in 1964. Congratulations to lebron, the cavs, cleveland, dan gilbert. Its a remarkable come back. It certainly was. And Dustin Johnson in the other big sports story. Slugged off controversial penalty stroke to capture his first major on sunday. Dj finished four under and three strokes ahead of the field with the win. And becomes the fifth player to win the u. S. Open a year after finishing as runner up. Here to talk u. S. Open results and more is bubba watson who figured prominently in the tournament, as you long hitters yulz seem to do it. You did have it going for awhile, bubba. I was thinking how can you not always win as far as you can hit it and you hit it left to right, hit it right to left. But that course, man, the way it was set up, it could get anybody, i think. Yeah. For sure. That high rough. All it takes is one bounce to get in the rough. It can cost you dearly. Thats what happened to me on a couple of holes. Made a couple of doubles. Because the rough is so tough and trying to get on the green. They said the greens were running a 15 on the stimmeter, which is pretty fast. It was a tough test, and obviously dustin played great. Putted great. Hit his drives farther than anybody all week. He just played a lot better than anybody else. Certainly did. I wanted to have a, like, a heart monitor on him because i couldnt tell, and those putts were i dont i didnt see a single putt the five putters inside the hole. For me to hit a putt outside the hole by like 6 inches, im so scared. And none of them were straight in. That was number one. Throw on top of that, like, a rules official coming up to you and, you know, talking about, you know, not really what do you think made that ball move back there, mister . I would have been finished. I would have shot 180 probably. [ laughter ] you know obviously he was putting from birdie. If you know the holes and situation. He was putting for birdie above the hole roughly 4 feet. He missed it low so it rolled about 4 feet past. It was slope. It was 15 on the stimmeter. So there was no grass on the greens. It wasnt him. He didnt touch the ball. He didnt do anything wrong. The ball rolled backwards because the way the slope is and the fastness of the greens. I didnt see a penalty at all. I would go to my grave saying there was no penalty. I didnt see anything he did. I dont think anybody on our tour saw anything he did wrong. It was one of the things where it happened. Luckily for him, he won by three and wasnt winning by one. Lucky for the uusgg a believ me. It distracted us viewers. If you like controversy it was good. I dont know if you were able to watch all what was happening in the usgas explanation. T official they had. It was the most bizarre thing. They said we asked him dustin, what else could have caused the ball to move . And because he didnt come up with something that was what thats how they dictated they figured out it must have been if you cant i would have said the spin of the earth, maybe. Or maybe, you know, the one blade of grade holding it up. You dont know when it folds and i saw it, too. There was no wind from his putter head. There was nothing to cause that. Things happen like that. The usga looked really bad in the whole situation, bubba. Hey, i think they were making a point to stop us from watching the game seven. I wanted to watch the nba finals real bad. So, you know, i stayed around so i just landed here, but i stayed around and i went to the 18th green and watched dustin putt out. Me, my caddie, and my son and i was there to shake his hand and congratulate him. But it was bizarre. Im telling you, they didnt want us to flip over to the nba game. I saw you there with your baby and everything. And that was you heard the dj chant, which andrew cried at dory. I cried when i heard the dj chant. I didnt weep but i did feel that was great. They almost did it again. It almost happened again just to overcome the adversity. It was awesome. For sure it was. Great. The travelers is coming up. Thats why youre in connecticut, or at least going up. When is the tournament. Its near the pga, isnt it . Yeah, were still give or take a month away. But, you know, were just interested. Im defending champ here. Its the week before the olympics. So, you know, i miss opening ceremonies of the olympics, but i want to come here and defend in connecticut, and this is where i won my first tournament. My dad passed away a little bit after i won my tournament in 2010. Its a special tournament for me and my family and i want to be a part of it. Remembering about my dad and my first victory i got and how he got to see. I remember that. I cry a lot at golf things. Me, too. Ive seen you blubbering. So you are going down youre going to be in the olympics. Any worries about either rio or the i dont know zika or any of the things were worried about . You know, for me and my family its different. We have a different situation. The zika rye us havirus. What we know its about birth defects. Weve had to adopt. We cant have kids. So we have adopted two beautiful kids. So were not worried about the birth side of things on the zika. So there was no doubt for me. If i make the team, im in. Im going. Ive already taken four shots to make sure im safe. Shots they recommended us to take before we go down there. Im looking forward to it. Right now im third man on the team out of four, and so im looking forward to the change of going down there and trying to represent the country and win a medal, somehow. Yeah. Watching you watching dustin i wonder how you guys sometimes i wonder how you when you have that advantage. You won a couple of masters, what is the next major that makes most sense for you. The british more your style or the u. S. Open or just something about augusta . Umm, well, the british is coming up. Im going to say the british is the next. All right. Obviously, a u. S. Open. Lets focus on that. Yes, british is the one i want to, win. Great seeing you. Well have to get you in here one time. Good luck after the british. Thank you so much. Thank you for having me again. Okay. Youre welcome. We have larry fink in a moment. Time for todays trivia question. How much did the original kindle sell for . The answer when cnbc squawk box continues. I asked my dentist if an electric toothbrush was going to clean better than a manual. He said sure. But dont get just any one. Get one inspired by dentists, with a round brush head. Go pro with oralb. Oralbs rounded brush head cups your teeth to break up plaque and rotates to sweep it away. And oralb delivers a clinically proven superior clean versus sonicare diamondclean. My mouth feels super clean oralb. Know youre getting a superior clean. Im never going back to a manual brush. The answer to todays trivia question. How much did the original kindle sell for . The answer 399. Welcome back, everybody. Among the stories front and center this morning the average price of gasoline in the United States levelled off to 2. 37 for a gallon of regular unleaded. The latest lend burg survey showed prices have dropped nearly a penny. Slight decline after three months of rising prices. The highest average price for regular gasoline was 2. 90 a gallon in the San Francisco bay area. Its a busy one as we ramp up thwart the brexit vote in the u. K. On thursday. Janet yellen is testifying before the Senate Banking committee tomorrow and the House Financial Services committee on wednesday. This is her usual semiannual testimony on the economic and monetary policy. With everything happening politically and economically, people are going to be paying close attention. As for the Economic Data out there, you can look for existing and new home sales this week. And durable goods orders. Facebook is holding the annual Shareholders Meeting today. It creates a new class of Company Stock to help ensure Mark Zuckerberg maintains the vote. Theres chatter whether zuckerberg is going to be defensive today about peter tooels role on the board. My gets is yuess is yes. Probably with the situation with gawker. My guess is he wants peter we think thats the case. Theres lots of chatter in the valley. We have an exclusive results cnbc all economic survey. We have the details. Andrew, thank you very much. We have the results of the all American Economic survey. Well do it a little backwards. At 8 30 coming back with the results of the headtohead clinton versus trump. First the economic backdrop for what americans are thinking about the economy. Results are kind of interesting here. On the current state of the economy, were a little bit above average. About 26 of the public say the economy is good or excellent. 77 say therefore these are average relates were a little bit better than average at the post recession climate. Those who say its going to get better have fallen quite a bit here. You can see 20 person say the economy will get better in the next 12 months and a rise in those who say it will get worst. One thing you dont see here which is interesting 18 say they dont know or theyre unsure. Saw similar results ahead of the 2012 election. So some unelection uncertainty playing in here. Lets take a look at the components of what people think about in the economy. Do you think your wages or Housing Price will go up in the next year . Stable on home values. You can see weve come a long way since 2011. Up a little bit on the wage outlook. Here is where it gets interesting. We put together the economy and the vote using our results. Take a look here. All americans about 27 of all americans think their home values will go up. But take a look at the difference between clinton and trump. The outlook for clinton voters is more optimistic than trump voters. Same thing when you look at wages. Typical trump voter is muchless optimistic on wages. You can see what they expect in terms of the average expected wage increase. 4. 6 expected for the average clinton voter for their wages to go up next year. 0. 2 for trump voters. So obviously that economic pessimism perhaps playing a role in the outlook on the economy and perhaps in their choice for president ial candidates. One other thing, 62 say yes. 31 say no. In the 62 , guys, 41 are republicans. Dont know if thats going to become an issue, but right now pretty Strong Majority in favor of trump releasing his taxes back. Back with the results of the head to head clinton versus trump. We look forward to it. Our guest host today is david millbend. The thing steves was talking about how economics playing out help people feel like the economy is not going to improve. They feel like their own situations havent improved. Weve seen it around the globe. Its probably a big part of the brexit, too. Youre right. Theres a feature in the 1990s the economics and politics seem to be aligned well. You have growing economies and rising wages. Thats been broken sin 2001 and 2000 and rising tension that is leading people to look at trade barriers. Leading them to look at immigration. You see the break in the expected link between the good economy and politics. I think thats pretty serious. The phase of global integration in the west and now taking and youre seeing in the politics. A lot of institutions not just government, but government institutions, media, Financial Institutions thats where a lack of trust is kind of become selfevident. Yeah. Thats idea tax returns issue is a big issue. The question i have for larry fink is, there are more people fleeing conflict than any time since after the second world war. How is political instability in the middle east and africa. Its spilling to europe. We know that. How is the political instability going to affect economic Decision Making Going Forward . Is it chilling investment . Is it chilling economic growth. I think its a big question for economic investors. David is the ceo of the International Rescue committee. Were talking issues hes been working hard on. It is World Refugee day. This is a commemoration of those who leave wartorn countries seeking a better life. The former ambassador to syria, afghanistan, lebanon, and pakistan will join us to talk about the Refugee Movement that david was referencing. And larry fink will be here. His company is one of linked in tops attract or its for potential employees. But we have a lot to talk about with larry. Well get to all that in a little bit. As we head to a break, take a look at the u. S. Equity futures. Theyre positive up by 200 points. The nasdaq up by 53. This is on the idea that a brexit vote may not push the u. K. Out of the e. U. At least at this point. Thats what markets are betting this morning. Well talk about that when squawk box comes right back. Bend me shape me, any way you want me as long as you love me, its alright bend me shape me, any way you want me. Shape the best sleep of your life. Sleep number beds with Sleepiq Technology adjust any way you want it. The bed that moves you. Only at a sleep number store. Real is touching a ray. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Ever. The Obama Administration has come under fire in the response to the International Refugee crisis. Count ambassador rhode island i know coker among the critics. Hes now the dean of the bush school of government and Public Service at texas a m university. We thank him for being on with us this morning. Good morning to you, ambassador. Explain, if you could well, ill start. What do you think . Yeah, well, as david said, this is a crisis, a refugee crisis of proportion that the world hasnt seen since world war ii. Some 20 million refugees now around the world. Its a Global Crisis that requires global leadership. The only country that can exercise the leadership is the United States and thus far in this crisis, frankly, we havent lead with catastrophic consequences. The refugees themselves many dies in efforts to cross the mediterranean. The pressures on europe. The president is now calling for a refugee summit in september. Im pleased with that. I wished he had done it three years ago. Ambassador, what do you think can happen at this point . It requires global leadership. The europeans are reeling under this pressure. The russians are happy about it, but weve got to take ahold of this and start setting quotas. We have to do a more consistent and organized effort at ensuring resources are there to support the countries in the immediate region, particularly jordan, lebanon, and turkey. This isnt going to fix itself. We have to step in and try to fix it. 51 of your former colleagues signed a protest note in the state department calling for more military action in syria to try to change the calculus on the ground. They point out that the assad regime is responsible for the vast bulk of the debts and they think unless theres a more fundamental shift in posture, they dont want to get to the negotiating table. What is your perspective on that . . David, like many of us, ive been calling for a nofly zone in the north and south of syria for at least a year now. I share the frustration that these individuals feel. As we look at the situation in aleppo, thats approaching a siege state with half a Million People in there. On the board of mercy, a major humanitarian ngo, we havent been able to get supplies into syria and aleppo for months now. As the russians, the syrian regime, and the iranians tighten the noose around half a Million People. I get the frustration. I would say, though, that the league was very, very unfortunate, very damaging to the Foreign Service. The president , no matter his policies, has a right to expect loyalties from his Foreign Service and the league. Not the memo i itself but the leak. I think damaged that trust. What do you think about the reputation of the u. S. And the islamic world given the limits on refugee entry into the u. S. And the kind of debate the u. S. Is having about refugee. Part of the argument is not just that the u. S. Has been historically a great place but a islamic balts for hearts and minds. And debating whether they should come in send a wrong message. What is your diplomatic perspective . Were doing a tremendous amount of damage to our reputation in the muslim world and beyond. Islamic state likes it. Were doing their propaganda for them. Feeding their narrative that the u. S. Is inherently antimuslim and only Islamic State can protect muslim interests. And its been pretty sad here, david. I join with you in a court case in the state of texas when the state tried to prevent a Syrian Muslim refugee family from settling in dallas. We won that case, but again the image of the u. S. As profoundly antimuslim is doing us huge damage. You they true . You spend a lot of time abroad. Do you think the u. S. Is considered antimuslim . No. I think the u. S. Is known as a place where historically muslims, just like christians, jews, and everyone else have been welcomed from all corners. This is a country where people in the most desperate circumstances look to. Theres no question that the debate about the muslim about the ban people notice that. Theres no question that the fact that the u. S. Has only taken 2500 syrians since the war began. People notice that. They notice it in countries. But as the ambassador says, the danger is youre doing isis propaganda work for them. Ambassador, thank you. Thank you. Appreciate it. Coming up. Larry fink. Were going to talk brexit, banks, Global Markets, and more. At the top of the hour chief john mack is here. Well be right back. G japanese oh watson, your japanese is very good. Thank you. speaking japanese exactly. I can understand nuance, context and idiom in seven languages to help companies all over the world with everything from retail solutions, to banking, to cyber security. speaking japanese and i thought, well, you need to go to the doctor. I was told that is was cancer, and i called Cancer Treatment centers of america. Dr. Nader explained that they can pinpoint the treatment. Once we identified that there was this genetic abnormality in her tumor, we were able to place her on very specific therapy. Our individualized care model gives each lung patient specific Treatment Options with innovative procedures that are changing the way we fight lung cancer. We have Excellent Technology that will allows us to perform very specialized procedures for patients who have lung disease. To learn more about these targeted therapies and advanced procedures for lung cancer, as well as the experienced physicians who deliver them, go to cancercenter. Com when he showed me the cat scans, i was so amazed. With this treatment, she had a dramatic response. Call or go to cancercenter. Com. Cancer Treatment Centers of america. Care that never quits. Appointments available now. Its more than a nits reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. Coming up larry fink. At the top of the hour former Morgan Stanley ceo john mack. Check out european markets at this hour. Things looking like theyre in the green. It looks like the remain folks in the Brexit Debate will win. Well see. Squawk box back in a moment. Shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Welcome back. If youre just waking up, the Global Markets are rallying this morning as brexit fears ease somewhat, at least from what weve seen over the last couple of days. Dow futures up by 200 this morning. Were facing the count down to the brexit vote. Just a few days away from that, many banks and Financial Firms warned of what may happen if the u. K. Were to leave the European Union. Joining us now is larry fink. The ceo of black rock linked on linked ins list as top company that people want to work for. Larry, thank you for joining us. Black rock coming in at 19. The only Financial Firm in the top 20. One of only five companies, i think, in the top 20 that is not a technology firm. What do you think is going on . Why do you think youre attracting people like that . Good morning. Its a big honor. We work hard in trying to attract young kids. We have over 230,000 applicants. We pick anywhere between 1 and 1. 5 of the app applicants. I think its about young tale talented professionals are looking to be emotionally involved with the company theyre going to work with. I believe more young people are believing in our mission. Whether its our conversation about longtermism or our conversation about how should we focus on retirement and then importantly when you think about other metrics, whether its turn over and people, if anything we have a history of keeping our people very long time. And sometimes we probably have probably too little turn over, you know, i never ask for that, but you always the key is making sure you have the ability to have the young people grow their careers and flourish and have real responsibilities. I think weve done a good job embracing that and expanhandle g i expanding that. We spend time interviewing at universities whether its digitally or in person. Thats our quest to making sure we have an organization that is diverse. When i talk about diversity, im talking about global diversity. Were in 30 different countries. But diverse in thought, diverse in race and gender, and i think weve really focussed on these things to attract some of the best and finest young people. Congratulations, again. Larry, while youre here, obviously, markets going a little haywire. About a month ago you said you were nervous about the brexit vote. I wonder how you feel today . Im still nervous. You know, ive always said even two weeks ago i said i do believe it would not happen. That the vote to leave . The vote to leave would not happen. Its always going to be a close vote, and i hope two things i hope. I hope it doesnt happen. That its a victory for the cameron government, but i believe and we need to focus on this. The idea that brexit does not happen how will the cameron government respond . I think im expecting the cameron government to be this is a heads up. And i expect them to focus on this anger. And i think the best way to focus on the anger is creating more opportunity. So my belief is the u. K. Has to begin a major miscall policy expansion. Especially in infrastructure. I think the fear is about the fear of their future and the childrens future. Not unlike what is going on here in our election season. And not unlike what happened in rome this week. Its about the jobs, but its also about the quality of jobs. So both the u. K. And the United States have between 4. 7 and 5 unemployment. Its the quality of jobs and lack of wage growth, the fear of the cost of education, of food, of energy, and retirement. And i think this fear is real in every major democracy, and i believe the cameron government will be the first government that is going to need to focus on this. I believe focussing on it as an expansi expansionairy government. Saying that the government should get involved with this. It should be something that is taken care of. It hasnt happened. Were looking at negative Interest Rates. We have 10 trillion in negative Interest Rates which harms savers even greater and greater. Especially in europe. With in france we did a survey. I dont know the survey in the u. K. In france 68 of families in france have their Retirement Savings in Bank Deposits or short term bonds. So theyre getting harmed by the low and negative Interest Rates. They have to save more money to achieve the objective. I believe now in many places of the world low and negative Interest Rates is slowing down the economy. Larry, could sky you to stay for a couple of minutes . We have a hard break. Hard break. Sure. Larry fink will stay with us. Former Morgan Stanley ceo will join us. Its coming up. Every year, the amount of data your enterprise uses goes up. Smart devices are up. Cloud is up. Analytics is up. Seems like everything is up except your budget. Introducing comcast Business Enterprise solutions. With a different kind of network that delivers the bandwidth you need without the high cost. Because you cant build the business of tomorrow on the network of yesterday. Because you cant build the business of tomorrow intenselyflavored. Colorfullydiverse. Beautifullymisshapen. Cultivated for generations, its the unexpected hero of any dish. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients. Stepbysteprecipes. Delivered to your door. Get your first two meals free blueapron. Com cook. Global market alert. Brexit fears ease. Is the rally for real . The u. K. Decides the world watches. Well talk about the impact of this weeks big vote on everything from banks to jobs. Our news maker former Morgan Stanley ceo john mac. I remember my family. A forgetful fish dory found her way to the largest animated film debut ever. The final hour of squawk box begins now. Announcer live from the most powerful city in the world, new york. This is squawk box. Welcome back to squawk box. Show me a good loser and ill show you a loser. First in business worldwide. Thats bold expression. Its no longer true. Becky quick is here. Andrew is here. Were 90 minutes away from the opening bell on wall street. This is a safe zone. You know really creative safe zone. Like meet the folkers. All the ninth Place Trophies and everything. Thats great. Its fine. I say danger zone. Yeah. The futures right now thats nice. Up 200. And that is not as much as a percent age gains were seeing in europe. Really big percentage gains on the markets in europe. Do the math here that would be 3 . A lot. 3 r of 18,000. 96 but their markets are down about 8 . Our markets are essentially down 2 . So from no from the beginning of the year. Oh, all right. Lets get back to larry fink, the ceo of blackrock. We were talking about negative Interest Rates. You point out theres 10 trillion in negative Interest Rates. What impact does that have . And how does that confound us how do you see the picture playing out 10 or 20 years . Well, the bigger problem is, i mean, you go out to ten year rates, and their negative. I think 18 now japan negative. I dont its a policy that i struggle with. I struggle with it because i believe its greating more harm than help. On the other hand, lets be clear, the central bankers have been the only game in the town. Theyre the bold citizens of the world. Now they need to be much more vocal on getting government that abdicated any responsibility for growth. Whether its, you know, in our congress we havent gotten much done. We need a Growth Strategy. The only way i know well be able to do a Growth Strategy is fiscal policy for infrastructure. Many countries in europe have too much infrastructure like a france. It cant help there. But a u. K. Or germany can help. Obviously, in this country, we spend the lowest percent of gdp of any major country in the world in terms of gdp for infrastructure. So we need to we need to have the same type of policies Going Forward. But for this moment, with the brexit, i think, the cameron government has to start focussing on the anger or that 40 plus percent voting to leave. Is it just policy makers or you have actual deflation and you just let Interest Rates equip celebrate where they go to get you a real return. Arent there times when the rates go to negative based on where inflation is . I think rate ths are going negative artificially. If you look at the inflation rates where theyre the most negative. Where the yields are the most negative thats where inflation is the lowest. You do the actual returns and theres still a net positive return because inflation is usually inflation is even lower. No. Because that may if there is deflation, and the answer is no deflation yet. Were sitting with modest inflation, be if youre right with deflation it impacts the short end. If it goes to the ten year end of the curve if you have rates below inflation thats supposed to cost people. I dont know. They dont actually spend. My view is we can debate all we want whether you think policy makers. You dont think its a reflection of the economic package . I think right now were in a point where technology is transforming our job market and we need to have Government Spending to mitigate some of the loss. They want to spend all the time. Im not surprised. I believe you can do Public Private. One of the things weve been advocating is a Public Private type of financing vehicles. Government will not need to spend that much money. The amount they need for long dated do we deregulate anything . Get rid of the few 21,000 regulations we have. That would help, too. Do you ever we definitely all right. Different question related to retirement. Of most of the people who have fund with you think theyre going to theyre doing it in part because they think theyre going to retire at some point. Yes. In terms of what kind of real greater return they should expect over the next 20 or 30 years. Give everything that is going on. People are talking negative Interest Rates and slow growth environment here and elsewhere or at least the next decade. I think it would be wrong if you expect anything beyond 4 or 5 at this time. If you put money to work today. Pretax. Well, its a retirement plan. It builds up in a taxfree way. Only if youre investing with blackrock. No. I think that should be your objective. Your objective should be 4 or 5 . And you should be saving without objective. If you earn more, obviously, you can mitigate that. If you go into that without that assumption, i think it would be wrong. We have most states their liability still between 7 and 8 . Are they completely crazy . Well, 2009 to 2013 those four years, they earned above it. Now since 2014, theyre earning much less. And it looks like possibly negative this year. And so it does balance out, if use a eight, nine, ten year horizon. I believe in this low growth world that theyre going to have to bring it down. That adds so much more to the deficit of these states. And the states just dont want to do that. And so its a problem. This is a serious issue. This gets back to my infrastructure issue. State and local governments have been cutting back their spenlding, too. Considerably. You have the whole paradigm now where weve had very little what i would call longtermism out of government. And so the challenge you have is can you ask a ceo to focus on investing for a ten year horizon when you see very little government investing for that long horizon. Yeah, larry, you must be downgrading just the longterm return on home equities then. Historically the index should be 6 to 7 . Why 4 to 5 now . You have a balance of bonds and equities. Oh, bonds. And you do some type of generally the safest type of product for retirement is 30 years. Is a target date. In the first year its all equities and as you get closer to the target its mostly all bonds. Theres a blend. Youre right. I believe longterm equities i would say 6 or 7 now. 7, 8. 8 im going to eight. I hope youre right. Equities add in the dividend over time. I hope youre right. I hope youre right, tim. Yeah. Lets hope youre right, joe. You know i think its your call. I got about well how do you factor in i was asking for a friend. Youve got 60 years minimum. I was going to say, if you factor longevity thats right. You made that point. Larry, the beginning of the year, the first time we talked to you in january you thought there would be more for the markets. Weve seen things bounce all over the place. What does your gut feel now and how complicated is the brexit vote . Well, if the u. K. Votes to stay, i do believe there has to be policy responses. Im under the belief now that government is aware that this anger is real. If they dont respond to anger, its going to get worse. You cant turn your back to the anger. My view is youre going to see more despite what joe believes. I think youre going to see more fiscal policy stimulus. If thats the case, i believe well see more inflation. We still have 4. 7 to 5 unemployment. Its going to create more job demand and wage inflation. If we have the infrastructure spends here in the u. K. And other places. I believe thats the beginning of the another leg of rally for equities. Okay. Larry, thank you so much for your time today. A pleasure to see you. Okay. Coming up when we return former Morgan Stanley crow john mack. His take on financials, the Global Market, and the risk of a brexit. Stay tuned youre watching sk i squawk box on cnbc. The first stock index musicwas createdughout over 100 years ago as a benchmark for average. Yet many people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. Enis really built into theat foundation of the company. Whole foods market is engaged with pg e on many levels, to really reduce energy and reduce our environmental footprint. For a customer like whole foods, saving energy means helping our environment, and we can be a part of that. Helping Customers Save Energy is a very important part of what pg e does. We can pass those savings on to the environment, the business, and the community. Pg e really is an expert in saving energy, and that partnership is extremely exciting. Together, were building a better california. Welcome back to squawk box. Continuing our discussion on the Global Market, World Refugee day, and more. John mack is here. He was the ceo for Morgan Stanley. He retired from the morgan board in 2011. And our guest host is david millabend. Thank you for coming in. My pleasure. We can talk about the markets with, the banks, china, brexit. I dont know where you want to start. I want to know what your sense of the world right now well, i think my sense of the world ive said this a number of times is really the risk of geopolitical blow up. When you think about jets flying very close to the u. S. Aircraft carriers, you think about u. S. Planes flying over the island that china says is theres. All it takes is one person to make a mistake and you have a global event. I think the biggest risk is geopolitical risk. Hopefully nothing happens, but theres a lot of turmoil, whether its in the middle east, or north korea or china or im sorry do you think a brexit is impossible . Well, i would like to take risks. I bet they do not leave. Thats where my put my money down. You put your money down. How did you make that bet . Put my finger up and make a guess. Im saying would you buy or sell . I did it with hook i cans in london. How else can you make a bet . I didnt know if you were trying to bet on the boupound. That could be wrong but i think its a good bet. Also, the loss yesterday with the warriors. Im not that great. Where are you on china, at the same time . Look, as you know, ive been bullish on china. Are they having issues and problems . The answer is yes. I have a lot of confidence in the leadership of the country. I think one of their they have a number of big issues. Clearly theres dissatisfaction on the Environmental Issues in china. I think that is a lot larger issue than we think of here in the United States or maybe in europe. When you see pictures of someone backi ining walking down the street and you see across the street because of pollution. I think thats a huge issue. I think the leadership is very disciplined. I think as far as Economic Issues, they will solve their problems. Itll be over time but theyll solve them. I like china. Im on some of the securities in china. Im bullish on chinas longterm. We went to jordan together. We went to the middle east, second closest ally. And we met refugees and jordanians you saw the contrast between the private sector and the ngo sector. Talk about what you saw and heard, what your reflections were. I know it had an impact on you. My family has gotten very involved in trying to figure out a way to be helpful of the refugee crisis. One of the things we focussed on originally, could we sponsor four or five families. It was difficult to do. We met david, and david said spend some time with irc. My daughter and i flew over to jordan to visit the refugee camps. I learned a number of things. Number one, the organization rsc gets an ngo. We were blown away on what they do and the impact you have. As an camp. When Hurricane Sandy happened. My wife wanted to help the police and firemen in new york. Their property was washing. We called in an ngo to give a fair amount of money. They said we take 10 . I said what . Administrative costs. So when i went over with david to spend time with his team, they dont take 10 . The money you give him goes in to help the refugees. Number one, that was an eye opener. It clued my daughter jenna and i in. The most important thing, going to the camps and, you know, clearly adults and kids to see what the kids go through and see how irc interfaces with them and tries to educate and feed them and most cases tries to reunite them with their families. Oftentimes the mother and father in jordan are working but if it gets out they are working, they get deported back to, lets say syria. So these kids, their families could be 30 minutes away. They cant see them. So to see the impact of these kids and what theyre going through it really tugs at your heart. Why cant kids see their parents in a situation like that . The camps are supposed to be set up so they are there and you have no way out. Youre there for years. In some camps, the parents are with them. But where the family need money and the mother or father is working, they cant take the risk of being discovered by jordanian authorities. So they work for less money. They dont talk to their kids. If they are caught, they get deported. This is a problem that has been bubbling up for years and years. What is the rest of the world doing to help . Were doing a lot of talks. The irc is doing something. Other health organizations. There was a gentleman we met that who is ethiopian. His only job, he goes around the world and reunites children with their parents. Wonderful individual that we met. Look, i think what has to happen is the world, however you define the free world or the democratic world or the world that cares, we need to make sure that dictators who kill their citizens and abuse their families there has to be some retribution. I mean, every refugee we met whether it was a adult or child only wants one thing. To go home. What was our first problem . Not Standing Firm on the red line . Ening we should have been tougher on assad, yes. John, a couple of quick other Economic Issues i wanted to ask you about. Banking. I want to ask you what you think about the banking world. As trader would you bet on Morgan Stanley. Down 35 . Im still on the stocks. I guess the answer is i would bet on it. Look, banking is given the amount of liquidity, its an offshoot of what happened in 2008. That the bank whether its Morgan Stanley or Goldman Sachs. It doesnt make any sense. They have a fluidity. The risk profile is down. If you cant buy stock in and you cant raise the Dividend Rate and youre taking less risk, i think the banks are capitalized. If i were a regulator i would be comfortable. If i was a shareholder i would like to have a gate lifted so they can retire stock and increase the dividend. Theres a conversation whether doddfrank should get overturned. You said it shouldnt. I dont if i did i shouldnt have said that. Did you say it . I dont recall. As you get older you dont remember exactly what you said. What i think should be overturned glass stegall in doddfrank, i would say yes. If you go back when we lifted glass stegall, the only way the investment banks to compete with the banks with deposits who had access to the fed window was leverage. It got out of control. And i dont think that would have happened if glass stegall. It was you that said it or no. I read the notes. I know, you know yeah. Maybe you confused. No, that was me that said it. Let me ask you youre on the board there. Stock has been under pressure. The ceo stepped down. Forced out. I dont know one of those situations. Are you still a believer in this new technology, this new sort of lending that is going to overtake wall street and really shake things up . Well, for people who dont know. Explaining the lending club. Were not explaining it. We havent finished our analy s analysis. Because of that we made changes on our annual meeting which will take place the next few weeks. Lets talk about thin tech, as everyone said. Its going change the business. Theres no question about it. Whether its in buying a car or getting a loan, buying a mortgage all of that is going to be used, i think, to change the way banking is done. And we already see it. I think it will continue. When you think about the amount of resources. So a young man came in to see me that started his Company Called future advisors, by the way, larry fink ended up buying the company. So you go in and future advisor, youre a College Graduate or a young married couple with some savings. If you go in for additional way of investing your money, youre probably going to pay between 2 and 3 . Youre paying maybe 25 and you go online and put in your risk tolerance and your goals and clearly your age, et. Cetera. I think more and more is going to happen. You think it works in a down term . People say when the market falls you need somebody to call you and tell you stay in. If you get the email or text message whatever the future of this holds, its going to be less persuasive. I think last time i checked on the market downturn no one called me said i should get out or buy. So i dont buy that. I think if youre buying Good Companies and the advise youre getting on a longterm strategy, a longterm focus, whether it goes down not just the downturn. In terms of whether youre being advised or under advisement. Just in terms of the financing. There are additional lenders. People willing to step in and offer money and finance in flush times. In particular whethn theres a t of liquidity. What happens as Interest Rates go up and cash defaults. Does that cash dry up . Well, thats been the comment we read about. My view as rates go up, they go up for everyone. Youre able to move your rates up. In many cases, since this is funded on the lending side by other people in the marketplace, individuals, rates people putting up money to make those loans. Their returns should go up. I think the real issue is defaults. And if you can keep that in that low range, i think most of them have been able to do, i think it grows. Im an older guy now, and technology blows me away. How its changing. Everything we do. And you think about you know medical insurance, you think about going down to the hospital. You think about theres a Company Called blink its your pharmaceuticals at a lower price by using technology and the way they buy. Theres a lot of opportunity to lower costs but at the same time bring Better Service to the consumer. You plan on staying on the board for the lending club . I do. Absolutely. Five years. Youre not going to ask a question like that. It. I had to try. Before he came in here i said 14 days and 16 hours. What i did i said whats the question that hes going to ask . And i knew it was going to be in there. You didnt let me down. Im glad i know you well. Thank you, joe. I think you sit down and you can work around im trying to find it, andrew. I think you said it. I dont think you have to get rid of it completely and they can work around doddfrank. I dont know if thats yeah. Modify. Modify. Yeah. Fair enough. Were trying. Were all trying. Thats all we can ever do. Coming up. Cnbc all America Survey. Who is the best political candidate for wall street. The nations top forecasters sound off. Thats next. Banks app. Now what . How will you keep up with the new demands of todays Digital Economy . The fact is some believe they wont need a Traditional Bank down the road, so at cognizant, were helping banking and Financial Services Companies Think digital, be untraditional, and reimagine what the bank of the future can be. Our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. Were creating new platforms across channels so customers can effortlessly invest, borrow, lend, transactwhereverwhenever they choose. And were digitizing the way banks run, driving efficiencies and delivering new value for their customers in return. Digital works for banking and Financial Services. Lets talk about how digital works for your business. We talk about we tried to provide a safe space. Its a danger zone. Danger zone. And i think this may be were going to have it cued up occasionally. There are days, arent there, where its a danger zone. We have our moments. Its not so safe some days. Welcome back to squawk box. New exclusive results from the cnbc all America Economic survey. Its confusing because i think its all americans. It is all americans. No, but its not like ncaa. Know why . We do all the polls of wall street folks and oil traders and this is a national poll. This is, you know, done by the same guys who do the nbc wall street. Theyre economists. No. Theyre all americans. All america. If you want to think about. All over america. All income groups, all regions. Not just you wer friends . No. I dont have that many. Its 801 americans. I would be lucky to get to ten. Here are the results. Democratic presumptive nominee Hillary Clinton leading donald trump by five points. 40 for clinton. 35 for trump. Thats within the margin of error 3. 5 . The big story in the poll is look to the right of the numbers. Oh, no. 14 say neither. 11 say dont know. Thank you for doing the math. 25 . I could have done the square root is . Of 25 . 5. Thats a big number, folks. Its a big number. Its the result our pollsters tell us of an election contested by two of the most disliked candidates in the history. Its a tight race. Who are the neither voters . Independents we dont know how theyll break. Theyre even. They think it may be money in the bank for clinton. Thats sanders number that 20 . Saying the reason because the sanders voters who decided 61 for clinton. They havent broke it yet. They may not. And the blue collar is a challenge for trump because he should be doing better in the group according to the pollsters. Take a look at places where theyre tied. Well done graphics. Tied on the economy 3938. 17 neither. How about best for the financial situation. Statistically tied. Small business interesting donald trump doesnt do better there. 3639. He does just barely beat out clinton. Dealing with terrorism, again, our republican pollsters say thats a red flag for trump. Because typically since 2002 the republican candidate holds anywhere from a 10 to a 35 point advantage on security issues. Trump does not seem to get there. Now lets take a look where places where clinton gets better than trump dealing with foreign leaders. Way better, health care, trade, and even immigration. She gets the nod from the public. Here are the places where trump is better wall street regulations, business regulations, the budget deficit, and, of course, the stock market hes seen as better for the stock market. And most of the Business Issues this is seen as a tight race now by the pollsters. The five point lead is not commanding. Youve seen other polls in the double digits and some polls in the five point range. Rasmussen as well as cnbc. 800 801. Some go a thousand. Some go l 800. This is registered voters, by the way. We made a change for the poll. We normally do all adults. Because of the importance of economics and politics now, we never ask a president ial preference on this. We went to the pollsters and said we need that to understand the economics of it. Who they but the polls we always see, theyre about a thousand. 800. Sometimes hence the big 45 point 3. 5. Yeah. Yeah. But, you know, they do a pretty good job. When you do it when you model it right, theyre pretty darn close. Steve, thank you. Pleasure. Cnbc. Com for all the results. If you want to complain about the 800 people representing america. Thank you. When we return the ceo of trip advisor, well get his take on business. Plus, how his company is raising more than a Million Dollars for humanitarian efforts. Stay tuned. Squawk box will be right back. Welcome back everybody. Today is World Refugee day. More than 65 Million People worldwide have been displaced. Online travel company trip advisor raised over a Million Dollars for humanitarian efforts and launched a partnership with the International Rescue committee. Joining us now is steve kaufer, the ceo of trip advisor. Were going to talk about why you got involved with this cause in particular. Steve, why is that . Well, we looked at what was going on in the world with this crisis late last year, and its just horrific when you think of the suffering that is happening. And we just couldnt watch. So we galvanized the employees of the company, we made our donation of a quarter Million Dollars and we sought to rally the community of trip advisor and the community is hurnlds of millions of people and we put out a call to action. We said let us match anything that you are able to contribute to help this crisis. And we got a phenomenal response over the course of the couple of aweeks we raised an additional amount of money to get to 14 million. I think giving employees up to five days off if they chose to volunteer. What was the offer you made to your employees . Thats right. Volunteer time off program. So we looked is there any way we can actually send our or any portion of our couple of thousand people to help in the crisis. And we felt so strongly about it we created that program just for this. Weve had some interest on the part of employees. David, as the irc looks out and tries to find donations and contributions that can come in, how does company get involved like this matter . I think its very important to say that the humid sector, the ngos cant do it on our own. And the kind of partnership weve had with trip advisor and other companies allowed us to access the come passion of people who want to make a difference but dont know how. I think its striking, not just the employees responded what steve would have expected but the people clicking on trip advisor, as well. And the truth is theres a big debate. Do people care . Some people say no. This is those who say they care but dont know how to make a difference. The message you can volunteer locally to help refugees being ent integrated in your community or donate. Its a big thing youve heard theres political instability and that means the nongovernmental organizations in partnership with the private sector have to got to reach to peoples heads and hearts in a serious way. I think its interesting to ask steve what you think is the next frontier for the private sector and ngos coming together to make a difference. You have extraordinary expertise, extraordinary reach. Youre using technology. Our sector has yet to be changed by technology in a fundamental way. I think your sector or part of the solution with folks on the ground doing the great work leverage in combination of trip advisors ability to reach out to hundreds of millions of people and the rest of the private sector in terms of their ability to help on the ground in the countries in which refugees are being resettled. So we have a number of our employees in paris, for instance, who are going to the local shelters helping to teach job training skills, building up resumes, offering computers that were not using in order to help the folks that are already in france get resettled in a better way. I think if you tapped into that energy, that passion amongst private corporations around the globe, it would be fantastic partnership to really help the next stage. Youve got the folks past the basic food and water, help them get resettled. I think thats a great point. Were learning how to make an organization that is about measurable outcomes. Its about making a tangible difference. Not just in the short term but in the sustainable longterm. And i think youre right. I think a lot of people want to help but theyre not sure what they can do. Steve, thank you for joining us and telling us about what youve been doing. Dav david will be with us for the rest of the hour. Coming up asking about asking cindy mccain her efforts in Human Trafficking. And the war of words between donald trump and Hillary Clinton. Stay tuned. Youre watching squawk box on cnbc. Its more than a network and the cloud. Its reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. [phone buzzing] some things are simply impossible to ignore. The strikingly designed lexus nx turbo and hybrid. The suv that dares to go beyond utility. This is the pursuit of perfection. Today is World Refugee day and were talking about the ongoing refugee crisis here in the u. S. And abroad. Gangs across europe are taking advantage of the ongoing crisis pushing countless number of Vulnerable Women and children into slavery and Human Trafficking. Joining us now to discuss this issue and what is being done about it. Cindy mccain wife of u. S. Senator john mccain she serves on Mccain Institutes Human Trafficking advisory counsel. Its good to see you, mrs. Mccain we actually had a couple of weeks ago had someone on about human slavery, and we were sort of clueless. I think a lot of people are clueless this day in and age theres millions and millions and we went over the geographic regions and the type of slavery were talking about. Where do you just explain to us how you got involved with it and where its most prevalent and where we can do the most good. Just from educating people well, first of all, thank you for having me on. As said, today is World Refugee today. These women and children, particularly that are being forced out of syria and other parts of the world are being forced into a very vulnerable situation. If theyre traveling without a male counter part or without a husband or a brother or something. Theyre even more vulnerable than they already are. And, of course, the worse of the worst are preying on them. This situation is not only incredibly difficult for these people but its crisis mode. Im disappointed in how the United States has responded to this. Were at risk here of truly losing a generation of syrian young people to a scourge of Human Trafficking among other things. This taking place as a result of this. So how does it, i mean, what are some about dote l stories . Who are the people that are preying and how are they the individuals exploited, where, and what ways . Well, all along the road, you have, for example, lets say you have a mother and some chirp traveling together. Shes trying to get to her husband who is already in europe. And along the way, people said, look, well give you a ride. Hop in my truck. And in the meantime what happens to these people is theyre either sexually exploited or theyre asked for money in the case of the refugees theyre being put in boats and pushed off the shore. Thousands of dollars to get a seat on the boat and then the boat sinks because it just, you know, its the worst of the worst. And its these cartels, these organized crime guys around the world that are preying on them. It is a tragic, tragic situation. Ive seen it firsthand. Mrs. Mccain, david here. You visited our work in greece, youve also engaged with us on the Refugee Resettlement work we do in the United States in 29 u. S. Cities. I think youve seen the human side of the stories. People fleeing terrorism rather than terrorists themselves. How do you think we get the debate where it deals with the human stories rather than the fear mongering . The fear mongering is just, to me its an abomination. These are people that are desperate. They want a new, safe life. Theyve been driven from their homes, and we as americans should, of course, accept more of them. Yes, under the rules of the United States has for vetting these people. Theyre no danger. And i find it distasteful theyre being politicized the way they are. These are gods children. We should, of course, open our arms. Thats what the United States is all about. In terms of the Human Trafficking and the slavery, what can, like, can congress do something . Does it have to be a Global Initiative . How do you make a dent in that is . What are the steps that need to be taken . First of all, the ngos like the organization david is with and others are doing phenomenal work. Theyre undermanned and a lotun staffed. Worldwide we have to hold countries accountable or people with regards to Human Trafficking. Many countries have laws on the books that say, no, you know, sex exploitation all these things is illegal. We dont do it. Yet it happens than turn their backs on it. Its up to countries like the United States and other countries that truly believe this is a scourge to step up to the plate and hold them accountable. And the in my opinion, the World Community has got to do a better job at this. Where would people that maybe they started in syria or so in the middle east and they end in turkey, greece, wherever it is. Where do they end up . And what country do we need to hold accountable . God for bid you know, if you can track them and find them. Thats a step up in some of this. All too often, a lot of these children that are coming in are simply disposable. They just disappear. They vaporize. Thats been true to some extent on our own southern border in the United States. Again, it comes down to holding countries accountable. It comes down to policies that are favorable and helpful to the refugees. Like i said, the ngos are doing a phenomenal job. Im not here to criticize any ngo on the ground doing their work. We need more people in the effort. Most importantly, we need the United States to be the strongest voice in this of all. I think some people maybe expect those who are fleeing war torn states in africa, traveling up through libya. They can understand those are war zones. I know from visiting our office in phoenix, theres a large scale of Human Trafficking within the u. S. And just bringing it home to people what a scourge it is. We have a terrible domestic problem within our own borders. These are not children or young girls, women, boys that are from outside the country. These are domestic Human Trafficking victims. And so what we have been doing, the Mccain Institute and other organizations have been doing is not only bringing light to the situation, making people aware that its happening in your own neighborhood, but educating people as to exactly what they can do about it. We can be helpful as communities. We can be helpful as citizens that want the best for our children. But it comes down to being aware, number one, and it comes down to acting on it. We had a very strong legislative process within the state of arizona, im happy to say on this, other states are coming along on this. But until we Work Together as the United States of america to protect our young innocent children from this scourge of sex trafficking, you know, we have to do whats right. And that is protect our children. This is child abuse. Its many different terms, but its the worst of the worse and it has to stop. We agree and we appreciate it and bringing light to the entire subject. Thank you. Thank you. Okay. Coming up, jim cramer joins us live from the new york stock exchange. Were going to get his take on the days top stories including this Global Market rally taking place right now. Back in a moment. Lets get down to the new york stock exchange. Jim cramer joins us now. Were not up as much as europe, but big gains today. Jim, you think it lasts . No. I mean, i think as long as oil stays up maybe theres a chance, but i just find people dont like our market because its done much better than everybody else. And i think that other than the fact Interest Rates seem to be going up so therefore theres a reason to own the banks, i just dont see any real enthusiasm for what were doing here. I see their stocks up gia gigantically, our stocks up typically a dollar, 80 cents. Theres so much hated here and a lot is Steve Liesmans survey. Who the heck knows who is going to be president. A lot is you keep thinking maybe after brexit in july the fed will act. Its the same oldsame old, so much trepidation and so much dislike of our stocks. I like your tweet. What was that all over your shirt . You said it was a great restaurant . That was spaghetti and clam sauce. Nick makes the best in the world. And sometimes you have to say im going to ruin a good shirt. I got it not that far from your wifes art gallery. Yeah, my family makes fun of me when i spill on myself. You know . We have every right. Especially when its fathers day. The older you get, you know . But you probably i said, you know, hes something. No fear. Well, sometimes you got to own it. And i just thought it was important to show how good it was and i didnt care what happened. Im learning to be better at this eating, hitting the mouth and everything. I still have problems just like you. Butter is the worst. Like lobster, because you cant get it out. No. Ruin a shirt. Coming up, much more from todays guest host david miller and tomorrow the countdown to the brexit vote continues, the potential impact on business and investment with wilbur ross. Hell join us live. Stay tuned. Youre watching squawk box on cnbc. Of the next patient. No problem. Its a pretty huge file. Done. Sorry for the wait. That was quick. As part of our research, i also compared lab results with notes about prior treatments, then cross referenced it with thousands of medical journals. And i get the benefit of much more data, and a lot more time to plan the best treatments. I stay focused 24 7 and never sleep. You sound like a lot of medical students i know. I stay focused 24 7 and never sleep. Trolling for a gig with cant blame you. Its a drone you control with your brain, which controls your thumbs, which control this joystick. No, im actually over at the ge booth. Were creating the operating system for industry. Its called predix. Its gonna change the way the world works. Ok, im telling my brain to tell the drone to get you a copy of my resume. Umm, maybe keep your hands on the controller. Look out ohhhhhhhhhh. You know what, im just gonna email it to you. Yeah thats probably safer. Ok, cool. Welcome back. Our guest host this morning has been International Restaurant president and ceo david. Hopefully a bit of education this morning. You were giving us a great education. And johns story im pointing to john whos not sitting there, but fascinating. Yeah, he came to jordan and had a view of ngos that was then faced with the realities that these are organizations in the front line really making a difference trying to be hard headed as well as big hearted. I think for him bringing head and heart together is really important in what we do. What should we think about the end of the week here . Thursday. Friday. Common sense will prevail. No, no, but the day after. The day after theres going to be huge problems in the conservative party, theres a big issue as larry fink said. And the biggest question of all whether europe can get its act together so there are more jobs. Your gamble is yes or no . Yes. Okay. Optimist. A lot to do to get there. Heavy lifting for all of us around the world, the daunting future of technology and Everything Else and otherwise. Thank you for joining us. Make sure you join us tomorrow. Right now its time for squawk on the street. Congratulations to the Cleveland Cavaliers bringing home clevelands first major sports championship in more than half a century. Good monday morning. Im Carl Quintanilla with jim cramer, we welcome david faber back to post nine of the new york stock exchange. We start the week with a rally as new brexit poll shows momentum for the remain camp. Pounds at a threeweek high, europe up 2 to 3 . Bonds back up here, 1. 65 and oil reclaims 49