Transcripts For CNBC Squawk Box 20170712

Way. And what was your reaction yesterday to the president s sons release of those infamous emails . Well, i dont know the details of this. Listen, we have got at least a half a dozen different investigations that are going on this is worthy of the investigation. I dont know what went on. But we need to get to the bottom of it. On the one hand. I know that Opposition Research is something all campaigns do. Why youre necessarily talking to a foreign state, obviously thats disturbing. But i dont completely know. I havent read all the emails but i have no doubt that the investigations that are ongoing will get to the bottom of it did it worry you when you saw the market react to it did you think it was something that could derail momentum in the economy . Well, no. I mean, ive been around long enough to see momentary swings in the market. So no, im not im more concerned, again, about ultimately getting tax reform done, because nothing says economics quite like tax reform. I wish the democrats would help us to get that done. Do you or any of your colleagues have a problem with leaving the obamacare taxes in the what if they do that in the senate and goes back tothe house . I mean, is that going to be the final bill well, i dont know the answer to that. But yeah, theres certainly a problem by leaving the incredible imposition of taxes on the economy its one of the things dragging down Economic Growth today but like every other member of congress i relieve the right to actually read and review the bill so im anxious to see if theyre going to be able to produce. And i hope we get to see something soon weve gotten our job done in the house and now were waiting on those behind me on the other side of the capitol to get their job done no it would not be a good sign to see those taxes remain in the bill you havent made any plans for august hopefully, because i mean dont you think you guys, i mean, god if the of course 9 senators, how do you tell whether theyre on vacation or recess im not touching that one, joe. They dont even notice. But it might are you going to extend the time you work you think the house will end up following s on a asos they get their bill done, im sure we will be in here in washington. Can we at least analyze customer traffic . Can we push the offer online . Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . Yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. You myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Good morning welcome back to squawk box here on cnbc live from the nasdaq marketsite in times square one of the stories front and center, Janitorial Services company coowned by Goldman Sachs and thomas h. Lee has been sold gca services will be bought by rival Abm Industries for 1. 25 billion in cash and stock. It was just last year that goldman and thomas h. Lee bought gca for an undisclosed amount. Twitter has a new chief financial fficer Senior Vice President at Financial Software Company Intuit he will replace the interim cfo, in addition to duties as chief operating officer. Bankrupt retailer gymboree will close about 350 stores as part of Restructuring Plan that would still leave gymboree with a little over 900 stores. The company was taken private in 2010 but still saddled with much of the debt from that deal say it. I got through it. Youre like a man without a country. Here we make fun of you im not a man without a country. When you go they make fun of you for calling it a rest room and not a loo. Correct i am always a british that twitter is beautiful if i could do that im telling you. Anyway, new this morning the kremlin says it has never been in touch with the russian lawyer who met with donald trump jr. Last year. In an interview with nbc news the lawyer also denied any connection to the russian government so, does that mean absolutely shes not connected to them . I dont think so. Who knows. Who knows president s eldest son agreed to meet the lawyer after being told she had damaging information on Hillary Clinton. There are people that think, if youre a lawyer that is worth anything over there, that youve got some kind of connection just by definition, dont you autocratic state, everything just different and interconnected in ways that we just dont have here yeah. Im not saying she is or she isnt i dont know. Who knows but the question and the question that was bandied about, wilf in the show yesterday was, it doesnt really matter if thats the way it was presented to you, you thought right that she was. Right clearly motivated what he thought was a russian government lawyer exactly we are just four hours past the end of amazon prime day. Late yesterday amazon told cnbc it was, quote, on pace to be the biggest Global Shopping event in amazon history with u. S. Prime members ordering more than 6,000 deals every minute amazon says it sold twice as many echo family devices in the u. S. This prime day compared to last year. Three times more worldwide other top selling items included 23andme dna test and bluetooth head phones. Checking on shares of amazon at this hour, they are higher by a third of a percent, gaining three bucks to 997. 50 if you are a longtime watcher of squawk box we have an association with water. Org 600 every time we go to davos we have a chance to talk about it its a good issue to illustrate, because we can help. Right, right now and people need help 663 Million People around the globe lack access to safe water for the past decade. Water. Org has been working to increase access and safe water and sanitation around the world. Gary white is the ceo and cofounder of water. Org and Anne Finucane is the bank of america vice chair, corporate partner of water. Org in the developing world which makes me think that your management is so associating yourself with this makes me think your management must be great all around all the way back to 25 i think moynihan, any critics or skeptics, hes laid a lot of that to rest, as things have come back at bank of america and people were worried for awhile about it so, is it its not a back handed compliment ill take it. The problem is, we have to explain it every time you come on we have to explain it again but there are, as you literally said, hundreds of millions of people that spend four hours a day trekking across three, four miles of difficult landscape to bring back fresh water women, many times, in less developed countries that have to do this just to get clean water. If they could just get a tap they could just get hooked into a tap their lives would be changed so much for the better yeah, yeah. Its a huge toll on their day in terms of the time that they spend scavenging for water also the time spent looking for a place to defecate because of lack of access to sanitation about 166 million hours every day women spend trying to find a place to defecate. And so, because of the opportunity costs that theyre spending walking and scavenging for water and sanitation, they are more than willing to take out a microloan to be able to get that tap thats again, where we you know, we got to talk about that. How do you address this need and for 100 or 200, which 99 of i dont know what the number of people that they pay it back. 99 99 repay these loans that they get, its 100, 200 to get access to tap. So instead of doing where youre throwing money at the problem, youre actually involving these people in the future yes and you get your money back if you fund water. Org. Usually. Mmhmm. And theres a Debt Offering and an Equity Offering the root of this is that theres never going to be enough charity in the world to solve the water supply crisis. It would take about 200 billion a year for the next five years you get five a year, right . Yeah, you get five 200 billion a year for five years. But what we see is the ability to leverage that new capital and social Impact Investing to be able to meet the gap microloa on the part of the poor is there. I think that the way they look at this the way it works is i was just in lima recently and there was a woman in the slums there who had just takenout a loan for water credit. She has been paying 13 times more per gallon of water when she had to walk down to the valley to the tanker truck to bring it back to her house shes paying 1 13th now for a water tap that she has in other hen home so you can see the Household Level finance works to take out one of these loans tell me the structure of the loan you give them 100 to 200. Theyre paying back how much per month or year . What percentage of their income is it its about a twoyear loan. The average loan size is around 240 now and what we try to shoot for is no more than 5 of their income for water supply. Which is considered affordable by the world bank and the u. N. So its a loan its a twoyear loan, shortterm but then they get freed up from having to scavenge for water the productivity improvement must be so dramatic. It is people can now work at a paying job, because they got all their time back. And tell us with bank of americas role in all there. Well garys been a client of ours for over 20 years so, it began, really, as a Small Business loan that grew in to a larger Business Loan i thought he had a savings account. You dont mean that, right no. He was there as a business to begin with, and we then built on that first with the loan, and philanthropy, and now were getting involved in this capital deployment idea of actually trying to be part of water equity this Water Equity Fund which we havent talked about yet. Well in essence its creating a fund that we hope to raise 50 million for, and with a nice coupon with it, which would exceed probably what a Municipal Bond did like 3 3 , 3. 5 . And so were the first funders were in for 5 million, and we hope to is that new, gary did you bank of america yeah. And this is for us this is sort of what were trying to do in a larger scale on the environment, in community, and womens empowerment, to try to create social impact bonds and funds so that we can scale it well beyond as gary said philanthropy just doesnt do it. I know i tried with gary. Youre not bank of america. Im not bank of america i tried to help. Thank you. We appreciate it gary when you talk about the other Corporate Partners you have, youve got from a bank to Stella Artois brewery. Do you need more Corporate Partners we do need more Corporate Partners water. Org is able to take philanthropy and put it toward creating these Bankable Enterprises so we can work with microfinance institutions to get them ready for this 5 million fund that anne and bank of america are providing as part of that 50 million so what we do with that philanthropic capital is get those enterprises ready for that type of investment and clearly, you and bank of america are very committed to environmental causes what did you make of bank of america, the president s decision to pull out of the paris accord i think you see it as a longterm commitment so as you know, we were one of Many Companies that have stayed the course this is a commitment to try to not rise beyond 2 celsius over the next century or by the end of the century, so i think we will all be long gone, and we will be many administrations beyond this were talking water, wilf were not talking about 2100 its all linked this is something something you can really get behind its solvable right now. Theres 663 Million People that dont have water lets can we just focus on this we are. Okay, good. Im asking a question different from making a statement. All right i hear you i hear you how about what you want to say today, as a bank do you like rates . Would you like a yield curve would that help . Lets stay with the water im happy to talk about bank of america, obviously weve had a very good year and you know last quarter we were almost 5 billion in last year almost 18 billion dollars in net income, so i think that im not sure what we know to expect from her in the months to come theres been a little bit of nice productivity, obviously, with the consumer. But, gdp is still probably only going to be at about 2 , 2. 1 . What would you think of gary cohn interesting and joe earlier commended the leadership, and certainly brians had a fantastic period in charge. How long would you like to see him remain in that post . A long time not forever but wed like to see him there for a long time. We set in motion the idea of responsible growth theyve been able to be very profitable but it also allows us to invest in these kinds of efforts, capital deployment that is beyond the norm that we have traditionally done when it gets up to a decade or so weve seen with jamie deie dimon at jp morgan, it does move from executives deciding to move on, is that something that you plan for and how do you placate that as brians very impressive tenure expends past that decade mark well, first of all, he has to do succession planning for the board all the time thats just part of rigor of a large company. The other thing is, so many of those years, the first part of those years was pulling us out of a very difficult time so hes only had the last few years to really demonstrate what he can do on a go forward basis. So i think that he has some good years ahead. If Interest Rates started to raise a lot would it hurt what you could do i dont think so. What were doing with with water equity is leveraging traditional capital like bank of america yeah but 3. 5 starts to look pretty meager, youre going to have to do more, and then what social impact, were really impact first. So were trying to always provide at least financial return i mean if you could return the principal and do good you wouldnt even care i get that. Right now youre making the change but its not about the equity, the whole idea no but money costs something, right . And theyre spending money so if they have to charge more money to the people who are paying for the money, it hurts i think there may be a marginal increase i think rates go up from 3. 5 would be more corporations that might be willing to give more, too. Gary, how many at this point per year, how many new water taps are you setting up . So, just the First Quarter of this year alone we reached 2 Million People 2 Million People. With access to water. A long way to go but thats a great its a huge amount. Considering the first 20 years of water. Org it took us that long to reach that many people this concept of Impact Investing is really exploding. And when you can have a financial return on your investment and still help people who make a dollar or quarter a day get access to water and sanitation, thats a huge deal and for the kind of retail level investor weve now launched the platform on water equity where you can make a loan as little as 100 and get people ill get you with discovery and you get damon to go do an hour long doc on the life that what this takes away from people that have to get clean water every day. Go to the place, show what the person has to do right kids cant even learn they cant even go to school because theyre going and get i mean it solves so many things. Get him to do that and get the public more aware, and then instead of asking about global warming, we can actually lets do something about this. For sure. And right now, were you know matts been on matt does a lot with this to raise the awareness level of that and were get him we also need i mean we also need the giving pledge folks we need ultrahigh net worth individuals who can come in and pour the capital into this youre looking at me. Look at wilf or paulsen. But you know we are doing a lot more with that weve got to raise this 50 million fund we want to do it by the end of the year people can recognize that theyre going to leuthold tap in to one thing it is for families. Its that individual responsibility to people rising to, if they can get a loan at that Household Level, and 90 , 92 of those loans go to women because theyre the once who bear the get that and resell it. Some of them do that, actually because were also investing not just those Household Level loans that we recognize theres enterprises there serving microutility markets so that were going to be investing in them with the next fund squawk box and water. Org and bank of america i think we and other Financial Institutions become more creative and innovative in terms of financing these projects where youcombine philanthropy, commercial banks, private equity, Development Banks and the marketplace and it works. Theres a capital cushion for this 50 million philanthropic capital so we build bank and thank you so much for coming on. Really appreciate it coming up the government cutting its crude Production Outlook for next year. This is fuel inventory show you whats going on with oil prices this morning as a result maybe not. Att an update on the move and wh icould mean for broader markets. Next, squawk box will be right back alysis. Hey. Hi. Hi. You guys going to the Company Picnic this weekend . Picnics are delightful. Oh, wish we could. But were stuck here catching up on claims. But we just compared historical claims to coverages. But we have those new audits. My natural language api can help us score those by noon. Great. See you guys there. We would not miss it. Watson, you gotta learn how to take a hint. I love to learn. Watson, you gotta learn how to take a hint. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. The future isnt silver suits anits right now. S, think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. Crude prices on the move this morning Jackie Deangelis joins us with that story good morning, wilf. Theres been so much noise impacting crude prices and were dancing around this 45 mark lets break it down for you. The opec monthly report out this morning saying production in saudi arabia is up, almost 10 Million Barrels a day. This is important. Because the saudis are the lynchpin of the opec production cuts if theyre pumping more the market gets concerned, thats bearish. The api report last night a drawdown in crude stocks a little more than 8 Million Barrels. If the doe matches that number this morning on its face it would be bullish but remember inside that d. O. E. Report, figures on u. S. Production, Petroleum Inventories and import export data could shift the read on that yesterday the eia out with numbers, they shifted expectations for next year but said production would still be at record levels theyre also reducing the demand forecast for this year but bumping it up for next year. Thats a little bit mixed. Finally, goldman calling for oil under 40 a barrel in the shortterm, but citi saying 60 by year end. So its hard to know what to do right now. But the consensus im hearing is still sell on straight the tea leaves are saying not enough has changed to support a leg up yet so guys basically everyones going like this when itcomes t oil prices at the moment its the Inventory Data the last few weeks its really been moving things around because people dont have anything concrete to go on jackie, great stuff thanks very much nice to see you Jackie Deangelis. Thats like some cartoons yeah. Which way to do it. Exactly still to come, could be the most expensive shop in history by watchmaker philippe is renting one of new yorks most polar party venues for a month. Robert frank will join us for thatstory after the break. And bill daley will be our guest. Squawk box will be right back. [woman] we did it. [man] were campers. Look at us. Look at us. Its so nice to get out of the city. Its so. Quiet. Is it, too quiet . Its awful. Yeah. Feel at home, pretty much wherever you are. Tmobile is americas best unlimited network. Wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. May be the most expensive popup shop ever swiss watch game Patek Philippe is renting 42nd street for a whole month to build a twostory museum and showcase its most famous pieces. Our robert frank is there for a first look i dont even think i can step into that store, robert. You can, joe. They have a starter watch that im going to tell you about in a minute, which is very affordable by patek standards the luxury watch wars taking on a whole new level, renting out ciprianis on 42nd street. They built a two story swiss palace for watches the watches they have, some of them 400 years old joining us is the president of Patek Philippe u. S thanks for joining us. So this really expensive whats the business objective of this well what were trying to do is expose people to swiss watch making and also the brand but we want to capture that elusive 20 to 30yearold next generation client, and teach them a little bit about buying swiss watches. So swiss watches have had a very tough couple of years and part of the issue is asia but part of it is millennials dont wear watches theyve got their phones theyve got smart watches. How are you going to reach them . Well, our goal is to try to encourage them, and educate them about the wearable art that is watches. They can certainly find time keeping all over right but these are something that they can take with them and really appreciate and hand down to the next generation all right, so lets talk about some of the wearable art here this is jfks desk clock the clock that he actually had on his desk. And patek made this. This is valued, its in a museum, you cant buy it, valued over half a Million Dollars. How did this come about . Well the jfk library and museum was nice enough to allow us to show it. It would have been jfks 100th birthday this year wow so i think they were excited for us to show it. Weve got Joe Dimaggios watch. This is a 1. 5 million timekeeper this 7. 5 million, what makes that worth 7. 5 million . It took nine years to produce and it has 1728 parts and it has some amazing, amazing complications to it. Effectively, theres one wheel in there that turns one revolution every 400 years every 400 years so its leap century in that watch. Now this is a new watch that people are seeing for the first time right now, its a half Million Dollar watch this, you have a starter watch that is aimed at millennials, starter watch for 20,000. Thats still a lot for some people as a starter watch. It is still very aspirational i think what we want to do is get people engaged, create a contemporary timepiece that everybody can wear, and it is still timeless and still has, the learns do a wonderful job of continuing the thread. Every watch you see has a look of Patek Philippe. And its still a family owned business so there you go, joe this is your starter watch 20,000. Stainless steel. And by the way, these are going to sell out very fast. Can you still get the italian food if you go into the cipriani store . No, no. Youve got to eat a watch great stuff, robert thanks, robert. Ony thming up politician and the ecomwi former white house steve of staff bill daley. The donald trump jr. Emails and much more. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Or a little internet machine . [ phone ringing ] hi mom. It makes you wonder. Shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. See how much you can save. Choose by the gig or unlimited. Call or go to xfinitymobile. Com introducing Xfinity Mobile. A new kind of network designed to save you money. New this morning President Trump tweeting about his sons russia email controversy. Well tell you what he tweeted janet yellen heads to the hill the fed chair set to testify before Congress Today amid reports that President Trump has a top pick to replace her. Plus, its summer camp for billionaires and media moguls. Lets race am i going to miss my camp reunion . Live report from the summit where mega deals are made. As the final hour of squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Good morning and welcome back we are live from the nasdaq marketsite in times square im joe kernen, along with Michelle Carusocabrera and wilfred frost. Andrew and becky are off today our guest host is jim paulsen. Yep, jim paulsen, chief investment strategist at the Leuthold Group youre back, bigger than ever. Bigger than ever did they pull you back in . Just like you retired couldnt stay out they pulled you back in lets get a check godfather 3 g3 i was thinking planes i was thinking Investment Groups yeah, yeah, yeah. Lets get a check on the markets. Futures right now indicated i dont know if identify call it sharply higher but solidly higher 21 on the dow, 23 on the nasdaq, 2. 35 on the 10year last we looked yeah, exactly. 2. 35 and Oil Prices Back above 45 for now up 65 cents. Wti crude up 1. 47 right now among todays top stories, janet yellen is heading for the hill today the fed chair will testify before the House Financial Services committee this morning with another appearance tomorrow before the senate. Imf managing director Christine Lagarde told cnbc she would not rule out another financial crisis i wouldnt exclude that there may one day be another crisis where it will come from, what form it takes, how international and broadbased it will be, is to be seen and typically, the crisis never comes from where we expect it. So certainly the message that we give to the finance ministers, to the policymakers, is be prepared make sure that your Financial Sector is under good supervision, that its well regulated. That the institutions are rock solid. And anticipate at home so that you can resist the financial crisis and i believe that question came in response to a question about janet yellen saying that she didnt think there would be a crisis in her lifetime uber said that its scandals have not been weighing on its business on a Conference Call with investors, the Ride Sharing Company reportedly said it expected improved bookings, narrower losses and a possible settlement with alphabets selfdriving car unit waymo. This according to bloomberg. Some stocks to watch. Twitter is hiring former goldman matches managing director ned sagow as next ceo. Hell take over. Twitter stocks up. Apple engineers are reportedly putting in overtime to Fix Software Bugs affecting the next generation iphone. Problems include Wireless Charging and a 3d sensor for facial recognition separately apple is setting up its First Data Center in china as part of an effort to comply with new tougher cybersecurity laws put in place by the Chinese Government in political news this morning the kremlin says it has never been in touch with the russian lawyer who met with donald trump jr. Last year and was the subject of the emails that were released yesterday eamon javers joins us now with more good morning good morning, michelle. Heres the email exchange with donald trump jr. That is at the sent of todays controversy. This is an email that trump jr. Received last year early in the summer, as the campaign was heating up for the presidency. He received an email from a publicist who was working on behalf of russian interests. The publicist writing to donald trump jr. , this is obviously very high level and Sensitive Information but is part of russia and its governments support for mr. Trump, helped along by aras and emin what the publicist was offering was information about the Hillary Clinton campaign that he said was being proffered by the russian government and through intermediaries, aras and emina russian ol gork and his son who is a russian pop star. Donald trump jr. Receives that email, he has a chance to think about it and heres how he responds he says it seems we have some time and if its what you say, i love it, especially later in the summer last night donald trump jr. Went on Fox News Channel to discuss this, and admitted he might have made a mistake by following up on that email by setting up a meeting with paul man afort and also Jared Kushner the president s soninlaw with the russian lawyer heres what he said. In retrospect, i probably would have done things a little differently. Again this is before the russia mania. This is before they were building it up in the press. For me this was Opposition Research, they had something, maybe concrete evidence to all the stories ive been hearing about that were probably underreported for years, not just during the campaign, so i think i wanted to hear it out. The donald trump jr. There saying he wanted to hear it out. Thats why he took that meeting. He said that nothing of substance happened in the meeting, that it was nonsenseicle ultimately from the russian lawyers point of view and ended up centering on the question of russian adoption by american citizens so it didnt really go anywhere according to trump jr the president , though, watched that interview last night. He was pleased with it he tweeted out this morning, heres what he said. He said my son donald did a good job last night he was open, transparent, and innocent this is the greatest witchhunt in political history sad. President also saying, remember, when you hear the word sources say from the fake media, oftentimes, those sources are made up, and do not exist. Michelle, as you know, that coming from the president who runs an administration where Senior Administration officials often have to go on background or be named anonymously in stories as senior white house officials, white house officials or simply sources familiar with the matter so, thats where it is today well see how all of this unspools later on throughout the afternoon in washington where republican support for this administration goes through the rest of the day today. You got any insight, eamon into the, ive heard its a circular firing squad. That the first case of this wasnt that bad, the last piece but the middle piece where there were three Senior Advisers that were quoted and supposedly theyre looking for those three, and no one trusts anyone have you heard any of that yeah, we do know, i do know that a lot of people inside this white house have mistrust for each other part of it is ideological because you have, as youve been describing, sort of the globalist wing of the Republican Party, and also the nationals wing of the Republican Party those people dont necessarily get along. But its also personality driven theres been a lot of leaking, a lot of mistrust within the trump staff. The question is, you know, did somebody put this out from within the white house, or within the white house circle of both allies or did it come from the hill or did it come from somewhere else we dont know not from donald trump jr. But maybe Jared Kushner as well, right . And then theres the Family Dynamics this is sort of, you know, oedipal. Youve got the son who was displaced sort of by his sister, donald trump jr. Doesnt have an office in the west wing, hes running the trump organization, instead. So, what are the relationships like within this family . Right thats op rhettic, as well. Not completely unlike a squawk box. Weve got the globalist wing sure. The elitist wing over here. More nationalist wing camera right. Exactly camera right but we speak up thank you, eamon. From time to time by the way, cnbc viewers have already met the russian pop star mentioned in donald trump jr. s email, because thats amin appeared on the closing bell two years ago. He was described as the donald trump of russia and asked about his relationship with putin. What about people who say much of your success has been through access because of your father and hes been a successful businessman, you know, relations with Vladimir Putin and so on . I get that a lot. But people who come to my shows, they draw their own clon collusions eamon eamon just talked to eamon. Emin spelled differently javers changed it now he was on closing bell yeah. I thought it might be did when i in davos a couple years ago when i was in davos a couple of years ago the russian federation, caviar, and all the vodka and everything oh, yeah. So there was like the tom jones pop star of russia was performing and it was like, really kind of you know who tom jones is i do. I dont know who the russian equivalent is. I thought i wonder if that was not him. I was watching him, and it was almost sort of did you eat the caviar . Its very salty oh, i love it anyway, it was not that guy but they in their own should always take free caviar guys that arent as big as of course they do i mean thats not groundbreaking revolution, joe well, no, but i think if katy perry goes to russia, theyll show up for that but if this guy comes here were not going to show up for him emin you dont even know the alphabet you dont need to understand the words to like a song no, but the pop music maybe well listen to him over here. Like we did when korea took us by storm with gangnam style yeah, that was we didnt really understand that song. Nope. As you know, that has now been knocked off top spot as being the most watched music video ever as of this morning no way yes, correct. Whats now the most popular the song from ive now forgotten it, someone is hopefully going to tell me in my ear in a moment. The song i bet bill daley knows. Yeah. Wiz khalifa okay, all right just knocked off as of the last day joining us now, former white house chief of staff bill daley. And bill, i read your notes, i always like talking to you, because youre kind of old school, but democrat from one of the most famous democratic families on the planet and then i was thinking, i want to hear you talk about how politics has really become rough and tumble now, and then i want to think about your grandfather and your father and everything i want to see you say it with a straight face that its really gotten down and dirty lately, and it hasnt been that way before well, joe, my grandfather was a sheet meltal worker so he didnt really sorry, the other one. Thats right my dad and then richard j. Before him, right right no doubt about it. Politics is a rough Business News media isnt exactly a walk in the park either but politics has changed and if you think it hasnt, those who have been around washington or politics in general youre kidding yourself. It is very Different Social Media has changed that. Quite frankly the cable 24 hour Politics News but hasnt it always been dirty . Its been tough rumble, dirty is, you know, you could define dirty in lots of different ways. Politics is politics is also a good you know, its rather basic to our system of governance who knows what happened in some previous elections, president ial and otherwise but Opposition Research and doing what it takes to win, thats not new and i agree joe, from a foreign government, which is historically been an enemy of ours, that you cannot conflate those two but, but some of your colleagues are using the word treason, bill. So it could be hieber pollic, or you could be oh, absolutely. Or you could say, absolutely indefensible, obviously. And should have gone to the fbi immediately. But then you can also say, you know, you dont want to be like the guy on cass to blanca, im shocked here that someone was listening to some Opposition Research no, but joe you cant just separate Opposition Research from a foreign government. What about the how is that different . Well, manaforts ukrainian deal Opposition Research that would have benefited them. Okay, you want to play this game of, you did it, too, therefore they did it. Its okay. Lets move on. Theres nothing to it. Now i dont know if theres anything to it beyond what weve already seen but the one factor thats come out in the last 24 hours, or 48 hours, from President Trumps son is the fact that he knew, or was told, that the russian government was trying to help his father in the campaign, and he brought the chairman of the campaign and the Senior Adviser of the campaign, to a meeting where allegedly nobody knew who it was or anything about it. Thats crazy al gores campaign in 2000 and i wouldnt go to a meeting and not know what the hell it was about. Bill, do you smell any white house dissension in the dissemination of this information . Is this a reflection of infighting thats happening there . Well i dont think anyones ever seen a white house with so many circular firing squads or direct firing squads at each other like weve seen in the last six months. But quite frankly, and ive said this on your show before, joe, as weve engaged, this white house is a reflection of the person at the top. And the way they like to govern or run their business. And President Trump has historically liked engagement, liked sort of pitting one against the other and that works neighbor in his business thats difficult in a white house. But i dont think anyone, republican or democrat, has ever seen a white house with so much seemingly infighting, challenging each other, dumping stories on each other, its Pretty Amazing and i think it hurt the president , obviously okay go ahead bill i was just wondering, how much of a lot of what we see going on, including the way this thing with russia just has to do with the fact of where the worlds moved here to globalization, to high tech, to instant and constant connection, communications, all across the globe, and were seeing a president that is using social media in a way that we never did before and now were seeing communication that might have been done just within our borders, and it has been, since third on the opposition. Now its done globally i think thats a really good point. And i think it also makes these sort of stories, or investigations, or whatever you want to call it, more seemingly more dramatic, because you get an email. It may have been in watergate or other scandals, it was a phone call it was a meeting now you have evidence. Much more than you had before. Where you got an email, you got a tweet, or youve got other means that everybody can obviously use an iphone and record a meeting so i think thats a very good point. Its roolly added to the sort of one more question how much longer before the American Public is just not going to care about ongoing impeachment investigations it seems like my entire life since nixon weve had impeachment investigation after impeachment investigation, and at some point you just kind of get, you know, you kind of lose interest in it well, i dont think the American People lost interest in theres only been two impeachments in your lifetime and mine, bill clinton and Richard Nixon theres been investigations oh, yeah, investigations of politicians all over the country, investigations, take the one year i was chief of staff for president obama, the congress had more investigations of the house, of the president and everything he did, the house was investigating like crazy, democrats did the same thing to president bush, obviously, and if they ever get control of the house back, you can get your that they will investigate donald trump morning, noon and night. So there is but thats also fuelled, quite frankly, by you all in the media, who, whether its investigative reporting, people have a suspicion about their government, you know, 58, 60 years ago, people didnt have the cynicism about their system of governing that they have today. Which has caused all of this sort of investigations on both sides of everybody thats just for real and it aint going to change. Bill, one thing that everyone kept saying yesterday was its a horrible political story terrible for the white house and for President Trump. But they dont know legally whether its whether its whether you can connect the dots to something thats illegal, and collusion or not if nothing thats saying a lot because things seem to, you know, theyre like roaching you see one and you keep seeing all the other ones if this were the last thing that came out this is not an existential threat at this point, do you think . No, no. But i think its pretty hard to imagine that this is the end thats right. And every time you pull the string youre absolutely right and i think its you know, i think this has gone to a different level quite frankly, and i would have a major concern about where this leads, because you now have, you know, as close as you can get to a president , and a campaign, with the chairman of the campaign, the Senior Adviser, and the president i was only kidding earlier, bill, when i said manafort was supposedly looking at his phone not even paying attention in a meeting. And i was kidding. And i said, because he had just talked to putin who said this woman doesnt work for us. I was kidding. I was only kidding he knew the real deal about what was going on you should not spread fake news like that thats not true. I was kidding but he wasnt even looking at, like anyway. Thanks, bill. Bill daley, thanks. Sorry about mixing up you guys not related to john daly either . Ive got a brother name john. Thank you amazons prime day is officially over it may have been one of the biggest glal sppobhoing events ever a rundown of the numbers next. Excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. Can we do that . The power of 100 of the worlds top companies. The power of a proven 15year track record. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Welcome back to squawk box. Amazon wrapping up its day of deals. Prime day, Courtney Regan is here with a prime day score card im done shopping i hope everyone else is. 30 hours is definitely enough. It did run for 30 hours this year but the deals ended early this morning. But by late tuesday amazon was already telling cnbc that it was on pace to be the biggest Global Shopping event in amazon history. With u. S. Prime members ordering more than 6,000 deals every minute and its Small Business sellers saw their global unit orders increase 50plus percent this prime day over last years prime day. The most popular categories, according to amazon, are what they classify as home chef, for the home, and techies. We know amazon sold two times more echo family devices in the u. S. This prime day than last, and three times more than worldwide. Now, other top selling items include 23 and me dna tests, and senseo bluetooth head phones there were lots of head phones for sale there was some early prime day deals available. An some done prime now, one and two hour delivery service, and through electric voice commands this past weekend. So slice intelligence tells cnbc that those early deals this weekend did push prime now sales up 14 compared to the weekend prior. It also sparked interest in nonprime deals pushing amazon. Com sales of 6 again compared to the prior weekend. And 15 of those amazon prime now buyers were firsttime prime now shoppers so it did work to grab their attention. Boomerang commerce which is run by a former amazon employee says that amazons prime day discounts ranged from about 31 to 45 on average. Deals offered by Amazon Third Party sellers, however, did have on average a greater discount level than the discount rate for items that were shipped and sold by amazon directly Beauty Products as a category overall did have the greatest discount levels. But some shoppers may have been disappointed by the prices on products that are most popular every other day of the year. Boomerang commerce again said that amazons normal best sellers in appliances, home and kitchen, electronics, toys and games, werent discounted. In fact they actually were slightly more expensive on prime day than on a nonprime day. Michelle maybe theyre saving it for a black friday, a cyber monday but it was an interesting observation nonetheless. Popular products werent included got it. Lets discuss with paul meeks now some of his top picks in the tech sector. Chief investment officer, paul good morning to you. Lets hit amazon first of all. Is it a stock you like, and does prime day make a difference in your judgment of the stock price . First of all, it is a stock i like the prime day itself, i think is nice, its cool, but i dont think thats a driver for the stock. Im laser beam focused on Amazon Web Services and the continued dominance that they have in the public cloud the stock has come off about 5 from the top so i think its probably a decent buy here i also want to ask about this debate weve seen spark up in the last couple of days because Morgan Stanley the lead underwriter in the poi has marked down their price target for snap where do you stand in the debate between snap and facebook and which if either do you like . I think facebook is the one to buy and if you ever think about buying snap, slap yourself, and just buy some more facebook the problem with snap is it probably shouldnt have rushed to ipo, because the Business Model was so immature. And it looks like the what facebook has done with Instagram Stories to capture some of the snapchat functionality shows that theyre going to keep their lead, and maybe even extend it and chinas version, sort of version of facebook in terms of ten cent is a stock you like, but in particular, the discounted way to get access to that stock that you like yeah, its very interested. Ten cent i like very much but that trades in hong kong, and just to make things even weirder, im interested in nsaperse which is a South African Company which has three stakes in pretty big Public Companies including ten cent and the publicly traded value per nasperse is 113 with in value and the market cap itself is only 84 billion so if the stock rises just to reflect its held portfolio thats a 35 increase. There we go and a way to get exposure to chinese social media paul thanks very much. Well have to leave it there yes, sir. Still to come, plus billionaires and media moguls descending on sun valley well talk to sir martin sorr l sorrell. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Were counting down to the big reveal of cnbcs top states for business North Carolina repealed its controversial bathroom bill so businesses that boycotted the state have begun to return texas is still adding jobs at among the fastest rates in the mission. Minnesotas best category education. Georgia finishes near the top for workforce, and infrastructure and the winner is washington state. Thanks for this honor washington, americas top state for business 2017. Good morning, and welcome back to squawk box here on cnbc live from the nasdaq marketsite in times square. Futures right now indicated higher up 41 on the dow, 43 now, 25 on the nasdaq, s p indicated up almost 6. And news just breaking on janet yellen lets get to ylan mui and what is it . Janet yellen saying in her appearance for congressional testimony that the Balance Sheet is likely to start shrinking this year, however she gave no clear indication of whether the fed would hike rates as well now that testimony is slated to begin in just about an hour and a half according to the remarks she says that the Balance Sheet will eventually be quote appreciably smaller than the current level of more than 4 trillion but it will still likely be larger than it was before the financial crisis she also emphasized that the Balance Sheet is not an active tool of Monetary Policy. In other words, adjustments in the Balance Sheet do not substitute for a hike in Interest Rates now when it comes to the great debate over inflation, this is something that officials have been questioning what the root causes of inflation are. Janet yellen said that the downdraft is due to, quote, a few unusual reductions in certain categories of prices and thats just sort of come out in the wash over the next year or so. She also said twice that the fed is carefully monitoring or monitoring inflation data going forward, so this is something that is certainly going to be remaining top of minds as for her broader assessment of the economy, it didnt change much she said that the labor market continues to improve, growth is continuing at a moderate pace, and also that Consumer Spending and Business Investment are both up so with several pockets of uncertainty that she did mention, inflation was one, but also fiscal policy is another one. She also mentioned that there could be weak spots in the Global Economy that could have an impact on u. S. Growth, as well of course, any Monetary Policy decisions will depend on whether or not the feds forecast actually come rue. Guys Monetary Policy is not on a preset course. Guys, back over to you thank you appreciate Steve Liesman is here. You got any inside enfoe on this gary cohn thing . No. Only that weve talked about this for a very long time sorkin has been also by the way and the idea that the guy who is in charge of the Search Committee, ends up being the guy who the Search Committee finds i thought about that. Weve seen before funny how that works. Very, very high levels. I want to talk real quickly about what, you know, ylan was talking about. What were wondering, one of the Big Questions is when will the fed begin this Balance Sheet reduction. And i didnt hear anything ylan said that gave us that insight she said its going to happen this year. I dont know that the matters a whole lot. Jim lets come back and talk to you about whether july, september matters a whole lot. Whether they end up you on your way out right now i dont think it matters that much i really dont i think did she say any words like appreciably, and if they werent going to commence this, you know, its kind of like saying im going to be aggressive but oh, were not going to do it until next year i think theyre going to get it done this year, steve. I dont think it roo ellie matters when they start the process. And we do have a little tickdown in the 10year note and in the 2year note i want to put that up in the back there and i think part of it is this notion, set yesterday, repeated today by janet yellen, that we dont have that much further to go which is a really interesting concept. I dont know if theyre saying are 3 long run rate is too high, were going to bring it down or theyre saying that 3 is not that far from where they are right now. But we need a little bit of meat on the bones those are the two significant things i think are out there janet yellen repeated today that theres not that much further to go and theres this overriding question about inflation kissing it off essentially saying its a temporary factor i think its interesting, theyre doing that with the cpi reports and some of the but it doesnt explain away why wages arent going up. Theres no technical steve has an answer for that. Do you . I think i have a partial answer, at least i appreciate michelle he did the story giving me credit on i think its a compositional thing weve brought in younger workers, minority workers, weve brought in less educated workers and typically those people make less money and compositionally, remember were measuring overall wages, and then were measuring the change between the two so if you bring in lower wage workers, then its going to be one way or and over time we may get to the place where but i think its one piece of it plus by the way youre rolling off with the baby boomer retirement higher wage workers so this, you pick off the yield did did i say that . You see the stock futures did they surge . Yeah, they did. They love it. I think the key thing take a look were going to take a quick look we were up 40 on the dow and now 75. Market likes it and that just happened. What does it all mean about the dollar because you kind of would expect dollar to be a bit stronger than its been but it continues to say soft i think thats a really key thing in the second half of this year, wilfred. I think the dollar is real close to the low of the 30 month trading range and everyones expecting it to go up. I think its going to break lower. And thats going to set off a lot of different things. One of them is push Commodity Prices higher. It will also escalate inflation anxieties. It will make the fed look a little behind the curve. It will agitate bond vigilantes. I think thats a key thing if it breaks south i think that wage number, if it breaks three, i think thats a game changer for wall street i think the mindset of wall street starts to focus on and you should explain, because i dont know that everybody we keep saying we got to go i didnt hear are they telling me hes the guy who has to tell im going to say this anyway. I think this is important. Because when you talk about higher wages, the other side of that which is so important to wall street is the profit margin the profit margin has been at historical high for corporations, and if wages are going to go up, and youre not going to get inflation, that means its going to stress Profit Margins i know guys who are very bearish about wall street right now, about stocks, because of this rising wages and shrinking profit margin story. I think we will get Price Inflation with that. You were surprised to see him, too i love jim. Ive known jim forever and hes he left wells fargo was it the fake accounts that investors set up you finally said im out of here you just couldnt take it. They charge you 2 for a credit card. When you say he doesnt look a day over 70. Im coming in listening on the radio i let him have that scruffy beard like he retired and all of a sudden he became an old man, which can happen the you just keep working jimmy boy. Up next, President Trumps pick to replace former fbi chief jim comey is heading to the hill today. Former assistant fbi director n sko llrohowi join us right after the break. Well be right back. The annual allen and Company Conference is under way in sun valley, idaho, drawing media moog yules, tech titans and big name investors, and also Julia Boorstin who is there. Julia . Hey, joe. Well mergers and acquisitions and questions about business in the era of trump were top in line among the ceos we talked to last night with m a speculation about their companies, verizon ceo Lowell Mcadams says verizon is not merging with disney and cbs but lest moonves said cbs is not buying lions gate. Also warren buffett, sherry redstone, Jeffrey Katzenberg and reed hoffman among others. Sources tell us that Jared Kushner and ivanka trump are on the latest attendee list but they havent been spotted here just yet discovery ceo told me he thinks President Trumps lighter regulatory approach will enable more deals overall theres less regulation, its more positive so from that perspective i think that its likely to be favorable environment for business here. But others were critical, including sam altman, who expressed concerns about trumps negative impact on immigration, the environment, as well as tech ability to innovate. And billionaire ken langone whos been a big trump supporter said the political environment was wacky. Politics is sure to be top in mind throughout this conference. Tom brokaw is hosting a panel called the country divided, and political leaders from the king of jordan, the president of colombia will also be slated to speak over the course of the next two days. And next several days. But the first panel this morning is on the state of the american economy. So joining me now is a frequent mini mogul. A mogul of the advertising industry, sir martin sorrell, whos been a visitor here for a few years so with politics being such a big topic this year, with Jared Kushner and ivanka trump expected, what are the topics you and other ceos are watching in terms of the impact on your business of President Trumps policy obviously the u. S. Is the biggest economy in the world 19 trillion out of 72 so what happens in the u. S. Really is a key indicator. Its about a third of our business so, i think most Business Leaders would probably take davids view, or the view of the pro view that if President Trump can implement his agenda of infrastructure spending, of less regulation, and lower tax, if he can, thats a boost for the u. S. Economy, at a time probably that it needs it. Because what we see is pretty anemic topline growth. We see companies, clients, getting to where they had to get to by focusing on cost, very little price impact because theres very little inflation and therefore focus on cost. So its more about the bottom line through Cost Containment or reduction than it is by topline expansion. And perspective on so many Different Industries that are all advertising yeah. Through wpt, are you seeing all this political volatility both in u. S. , and in the uk, impact spending decisions or people were seeing continuous caution for the reason that i said were seeing very much a focus on the shortterm. There are three major influences the first is obviously technological disruption the second is the rise of zedbb, zero base, nothing new in that but its the new wave of it. And the last is activist investors in two or three of our five largest clients you have either activist investors, or zed bb activity strongly at work focus on the bottom line through cost i think is the key issue. In the uk, the uncertainty over brexit over the next two years will probably damper top line growth Continental Europe probably a little bit better. Macron in france, germany, italy, spain weve got elections in italy which bring s electoral uncertainty. But thats an issue in in europe at a time when the uk may be leaving europe is probably getting stronger asia big question is what happens in china after the Peoples Party congress. India strong but its slowed because of gst thats caused a little bit of shortterm concern, but longerterm india i think remains very, very strong. Brazil big question mark what happens politically in brazil mexico, stronger colombia will have president santos here. So, a bit of strength there. But generally, the world is one of slow growth, and as i say, little inflation little Pricing Power wilf you want to jump in here martin, good to see you as always i wanted to ask if snap is struggling to generate the ad dollars as much as the recent decline in the share price could suggest . Well, wilfred, snap, for us, last year was about 100 million out of 400 million we invested with our clients about 100 million. This year, were forecasting about 200 million so if you if you project that for snap as a whole, their total advertising revenue should be around about a billion i think theres been some controversy as to whether that will it will reach a billion or not but when you compare that to google and facebook, facebook at around 40 billion, google at around 90 billion, our spending with facebook last year was about 1. 7 billion this year probably well over 2 billion. Google, under 5 billion last year, a little bit over say 5. 5 billion, 6 billion this year. So what we will see is still significantly greater spending at google and acebook. Facebook, its almost 20 times what weve seen or google is 20 times what weve seen. With facebook and instagram successfully copying some of snaps most popular features do you think that snap has a chance to be a significant thats where the battleground is snap obviously has been copied, plagiarized you could say, by facebook but very successfully so in the last couple of weeks, last couple of months, analysts, at Morgan Stanley, they also revised the estimates on snap, they were the broker that ipod them so that was pretty much a seminal moment so there has been a concentration on whether facebook can successfully repulse snap, and to date it seems that they have at the Developers Conference on the west coast of facebook, the people i spoke to came away from that said that facebook was very successfully and just a quick final question on google and facebook, youve been critical of that duopoly, have they done enough to reassure you about brand safety and also about transparency in terms of accountability google has made very strong efforts on what i call Consumer Brand safety, political brand safety the terrorist part of it, as well and theresa may coming out of downing street, after the tragedy of the day before and saying four points, second point was we have to do something about the internet, so this political brand safety is also critical, as well as the Consumer Brand safety. Google have stepped up to the mark the question is, whether its enough facebook also has maybe less pressurized but its going to become equally important, particularly on the political dimension. Thats a dimension when governments get involved, when president s and prime ministers get involved, its a very serious situation. So i would say, you know, report card is a good one but theres still more to do well, i certainly would love to be a fly on the wall on those conversations youre going to be having down here julia, youre not going to be a fly on the wall. Thank you so much guys back over to you. Julia, thank you a lot. Sir martin, thank you for that some news in from royal bank of scotland, it will pay 5. 5 billion to sketle a lawsuit with the u. S. The federal Housing Finance agency had accused it of misselling 32 billion worth of Mortgage Backed securities before the Global Financial crisis this is a little bit bigger than analysts forecast, the 3. 5 to 5 billion range the stock gaining 1. 6 President Trumps pick to lead the fbi, Christopher Wray will appear before the senate. Joining us is ron hosko former assistant fbi director, good to have you here, sir good morning. I was going to ask you first a lot of questions about Christopher Wray but now im going to ask you about what happened with Donald Trumps emails yesterday. Donald trump jr. s emails yesterday. And whether or not you think thats going to be part of the conversation at the hearing today. You know, i suspect it will be brought up. I think mr. Wray will be reserved in his commentary about the ongoing investigation, recognizing that its being led by bob mueller now and i think hell be overall guarded in his commentary, and would be overall suggestion that the facts will lead the way for the fbi. And when they are all in place, thats the point that the fbi will make its conclusions, or determination. Federal election law says a Foreign National shall not directly or indirectly make a contribution or donation of money or other thing of value, or expressly or implied with promise to make a contribution or donation, in connection with any federal, state or local election based on the emails that you saw yesterday, was there any risk of any risk of violation there in federal election law sounds like the risk is on the Foreign National although certainly one can i think find their way to a conclusion that donald trump jr. And others in the room were complicit in the conversation, whether that rises to criminality i think we are a long way from that. How far this conversation went after the conversation it sounds as though it might have gone nowhere. They are arguing that that was actually a value to that info had there been any info. Its much better to set up a foundation if you want to take contributions. Thats the way to do it. Set up a foundation. Thats the way to do it, ron. Any number of ways to do it. Thats the best way. If you are looking to conspire and do it under the radar. This is chump change. You need the foundation. What you need is bob mueller digging into these details finding out the entire scope of this transaction, other transactions, trying to find what has not been reported in the Public Domain and chasing the facts. You said the Foreign National would be onus on her to register as Foreign Agent or not to have tried to influence the election. What about donald trump jr. . Anybody else in that room . I think there are serious questions that have to be asked. Im certain that bob mueller and his team will ask those questions and see where it leads. I think today its premature to jump to conclusions that i heard over the last day or so. Subversion i heard, treason was one of the comments. I think that is way over the top. We will hear it today in the chris wray hearing is going to be political speak. It is going to be republicans or democrats bouncing their own political views off of a candidate, a nominee who is not going to really respond to that in a substantive way. They are not looking for a response. They love that. Saying it out loud. Thanks for joining us. My pleasure. Jim cramer joins us from the new york stock exchange. Get down to the new york stock exchange. The futures are now triple digits since 8 30 when the yellen stuff came up. They went from 40 to 120. We can go Conspiracy Theory which is maybe janet will keep rates low for real estate president. Is it the new normal globally is lower Interest Rates than terminal rate can be only a couple more hikes. Some people must have thought she would Say Something negative for the market. I know Interest Rates going down hurts the bank stocks. The bank stocks are leaders that they report on friday. I think that you are getting ahead of yourself to buy all other common stocks. These stocks need to be in charge. You cannot run this whole rally on boeing and nvidean. We were kidding around that maybe she keeps her job if she says a couple more hikes. Maybe it is not gary cohen. I thought the more gary cohen talk comes to fruition the more people are excited. The idea that he is not an economist. The idea that he wouldnt be sophisticated enough, he understands why we have very little inflation. He has given the best talk i heard on the notion of the apple world, the iphone world which loses a lot of jobs. Gary cohen would be unbelievable as fed chair. St. Uld just quit my job is go lien thanks, jim. Squawk box will be right back. Our guest host this morning, final thought. Economists were invented to make astrologists look good. Would it be good to not have not an economist running the Federal Reserve . I can handle that. Someone with more of a business background. I could go with that. How much of a fall can the market stomach on the dollar i think it would be a biggest risk initially for bonds and ultimately at some rate level for the ten year i think it would take stocks. I think that is higher. Maybe as much as a percent higher. You have been talking about commodity inflation for years. This is finally happening for you. Maybe the dollar will finally break. That would be good i think for exports. Its been a bad thing for earnings in this country. Its held down commodities and oil. It would be a good change. Im glad you are back. Back and better than ever. You dont look a day over 40. Squawk on the street is next. Good wednesday morning. Welcome to squawk on the street. Futures are up and yields are down as yellens testimony says Interest Rates may not have to get much high toor get to neutral. The fed chair sits before House Financial Services committee in about an hour. Plenty to watch. Europe is green. Ten year yield