Transcripts For CNBC Squawk On The Street 20160620

Week for the economy. The brexit vote, yellen on capitol hill coming up. Redstones made their big move last week, the latest on viacom and the nearterm future of a company that could come down to a Court Decision in delaware. And big weekend for disney. Some Box Office Records and game seven as you know for the ages. First up though stocks rallying around the globe on hopes for an antibrexit vote on thursday. A new poll by survation says 45 remain, 42 leave, but if you take all the polls together, still about a dead heat. Earlier this morning on squawk, black rock on the markets as we count down to thursdays vote. I think youll see more fiscal policy stimulus. If thats the case i do believe well see more inflags because we still have 4. 7 to 5 unemployment. Going to create more job demand and more wage inflation. If we have these infrastructures spent here in the uk, other places, i believe thats the beginning of another leg of a rally for equities. Definitely shows the hypersensitivity to these polls. That will be the case for the next few days. Yeah. I urge people to recognize there are actual Real Companies in the s p 500 and many of them are doing just okay. The most sensitive things obviously oil, oil going higher. Interest rates going higher. So i think you can say maybe the banks have a 45 minutes of good opening and the oil companies, well, they can have a day where they bounce back because when we get to 45 things started going back up. I dont like this rally, i think people should calm down. There is absolutely nothing that is so pertinent to our markets that you should buy up here. What are your thoughts as we move closer to the vote . 45 to 42, we saw the latest polls, not sure to read them in terms of how accurate theyre going to end up being. I just felt that the incredible changed everything. Well, first they stopped campaigning. When they stopped campaigning the remaining group seemed to move on but i believe its going to become kind of about her murder. And i dont think its talked about enough. I just think that changed the equation. I think people just said wait a second, this is crazy. We got to like calm down. Calm down means remain. There are other dynamics. This was a story in the times about brussels basically saying you are going to hurt, this is going to hurt job ifs you do this. So theres the labor party, and i was listening to wilt this morning talking about this. Look, theres just grave splits in different parties there and its much more than we understand. You have more conservative people and people who favor obviously keeping their jobs, and if you want to keep your job, you made it sound like, well, wait a second, you better remain. I also think thats good fodder for people saying i was brussels to, you know, pull us around like this, boss us around, but i do think youre starting to get the real numbers of what could hurt. It hurts more to exit than remain. Though that doesnt mean theyre not going to vote to exit. No one ever wants you know, today they were talking eloquently about the migration migrant problem this morning on squawk on the street, saying lets peel it away, its not about the panel. Its about people say, listen, if were part of the eu, then were part of it lock, stock and barrel. No, immigration seems to be one of the key issues in terms of dividing. Yeah. Much more of a trump issue to use the coverage i saw in usa today. Last week you said dont despair over the polls, this week youre saying dont i dont want someone to come in up big today. I think youll get a better chance i dont mind the stock market. I feel like im the only one that doesnt mind. I look at some of these european stocks and i feel if people feel, hey, we should be up that much too youre going to be sorely mistaken. For instance you hated apple on friday, which everybody seemed to do, you cant love it off of brexit. Using apple as an example of one of the stocks people feel is a value trap, that it doesnt work, that its really all over. And maybe it is for the moment, but i do feel that we have to understand that this does not change things. Can yellen say anything tomorrow or wednesday with this vote hanging . Someones going to ask her would you reconsider everything you said post the election post the referendum on thursday. Yeah. Just start the clock again. Its not like last night where theres an ending. You know, the game ended and we did not at that point, well, how about the wednesday game and the tuesday game. You know, the game ended. Wasnt it joyful to watch some other thing that happens in our lives that ends . Theyre not going to get together again on tuesday and wednesday on capitol hill and discuss, you know, it was over. By the way over fast too. It wasnt one of those games where endless timeouts and took 40 minutes to play the last five minutes, it just happened. 46 seconds left and it was 46 seconds. They took the time pretty much. It was a joy to watch that game. Pause for worries about broken wrists in that yes, that final fall he took. Right here. Theyre calling it the block, maybe one of the best best game seven in almost a generation. Yeah, its funny how nba came back in our kosh shens when you say i see guys saying buy nike, sell ua, its emotional. Theres new curry sneakers kind of dovetailed on the results of last nights game, i think. Oh, man, what a game. That right there. That got you. Watching him on the floor. And then here he breaks down. I want to buy Cleveland Cleveland is the only thing here ill buy this much. Really . On future performance . You think buying cleveland was the buy yesterday, maybe not today . Since 1964 i think you can stay in cleveland for more than a day. Interesting now. The championships belong to kansas city, denver, cleveland and pittsburgh. And pittsburgh, wae. What happened to the coasts . Yeah, short the coasts. It does bring us by the way to abc and disney, which also had new yeah, thats the way we did that. Finding dory making history, sequel to finding nemo, highest debuting animated film ever in north america, previous record holder was shrek 3. Did you go . Not yet. I have to tell you this is the great tug of war of stocks ive seen. Youve got finding dory and shanghai. Against that you keep hearing chatter that espn lost another subscriber during the game. They might have lost someone. And that seems to not to be too cute about it but its espn subs versus movie slates. And i think the movie slate should trump, but it doesnt matter. People feel disney become a value trap. Really . A value trap . Because every time you get excited you find espn the bundle. David, i missed you in the understood l. Well, im back. Happy to talk about the ever dwindling bundle any time you want. I appreciate that. I feel in the end im watching abc and thinking, okay, if this were on espn remember when people put the bcs in espn and very exciting you got to hand it to her. Those guys are really tall and big and she managed to get right in that crowd. I like that. But i just think thats neither here nor thats nothing. You went to doris burk from finding dory. Abc, espn, shanghai. You come back and say, oh, man, youve got that interval where youre not thinking about espn for a nanosecond. Abc doing better, theme park doing better, finding dory and get inkling espn is not doing so well and its like abc is like a pimple on the you know what of espn. Its not going to move the needle at all. Dont know what would. Espn is huge and the theme parks and movie are very important. Abc not so much. Thats the equivalence issue. Skb i dont know how to value box Office Versus espn and whether this was finding dory, we knew it was going to be huge and its huge. Isnt that worth something . Earnings per share you can kind of bank on. Sports Business Journal is citing some sources last nights overnight ratings which would put it in the neighborhood of the highest since 98 for an nba final. Is that true . Yeah. Pretty good numbers. Sheesh, cleveland, thats a small market. A team with it was kind of like, you know, the old versus new. I mean, it was Silicon Valley being trumped by american industry. Coming back from down 31, dont forget that. That was what was incredible. America should be triumphant over Silicon Valley, right . I guess. Is it a contest like that . Were all part of the same nation. Shouldnt we be focused on the external foes . I did like it. Industrial america versus yeah, Industrial America versus the big, rich billionaires who do nothing but, you know, move stuff from this computer to no, no, youre talking about hedge funds. Thats different than the guys in Silicon Valley wlo do create huge companys that do create a lot of value. Allegheny rhythms, turn people into simulations. When you were looking away i thought maybe it was a simulation. Im here, baby, back, better than ever. This is the west coast and this is a little more like cleveland, right . This is cleveland here, dont you think . This is part of cleveland. What is that an i like the tape. Oh, thats total cleveland. Because, you know, its just hard scrabble, 1964. Like how bad some statistics most people were not alive when the last time cleveland won something, i think that says something about american industry. Maybe its about natural gas and bringing jobs back and inshoring. Im all for that too. Metaphorical. One of the most exciting nights ever. Were going to count down to what looks like a big open on wall street today. A rally is stacked, well see how we open in just about 18 minutes. More squawk on the street from post nine, dont go away. Using 60,000 points from my chase ink card i bought all the fruit. Veggies. And herbs needed to create a popup pickyourown juice bar in the middle of the city, so now everyone knows. We have some of the freshest juice in town. See what the power of points can do for your business. Learn more at chase. Com ink mamost of the show. We missed can do for your business. woman and theres no way to restart it. jon bon jovi with directv there is. You see, weve got the power to turn back time so lets restart the show that started at nine and while were at it, lets give you back your do and give her back the guy she liked before you hey, thats the power to turn back time. vo get the ultimate allincluded bundle. Call 1800directv. Well, its going to be a busy week perhaps in delaware. Not just e. T. And williams, well get to that later, but of course viacom will be in the spotlight. No data as of yet. The Delaware Court has assigned the honorable andre bushard as the chancellor who will oversee the lawsuit that has been brought frankly by both sides in this ongoing despispute we toldu for weeks that culminated on thursday when i was out by its Controlling Shareholder National Amusements. It is that that is at issue and will be decided by this delaware chancellor. And, guys, speaking specifically about the case itself and talking to people, it seems like an uphill battle for viacoms and fred the lead director leading the charge to say essentially you do not have the right to remove us because National Amusements youre Controlling Shareholder in the form of mr. Redstone is not competent to do so. In the sense of the concept of whether they would look to the competence of a shareholder some lawyers have told me is patently absurd. Think about a future proxy case where you say, jim, you know, whatever it might be, some Public Company youre involved with. Youve got a proxy case and say those shareholders that say about your shares that guys not competent. Delaware court is not going to be in position to review the competence necessarily. National amusements is a company with a board of directors, its an operating company and it seems likely though we certainly cant prejudge, likely that they are going to say were not ruling on anybodys competence here. This is your Controlling Shareholder. They tossed five members of your board. Thats it. Youre out. It becomes unclear what mr. Solernos director is really thinking here along with his lawyers, but well see. Thats the new viacom board. Its the old one still in effect until we get the ruling from delaware. And then of course when they are seated as they are likely to be, as they are likely to be, then the question becomes who become the ceo, and frankly i believe it will be an interim ceo. One of these Board Members perhaps . Yes, i think its possible. It could even be heres speculation, i mean, would dooley, hes been the c. O. O. , but would he take over at interim i dont know at this point. Guys, the key question for many people is are they moving towards trying to put together once they have replaced these five directors with the asings of the Delaware Court, will they try to put cbs and viacom back together . Thats what i keep hearing. I think that that is something thats got to be looked at very carefully. You do . Yeah. I think that it is, again, the reporting is yet to be fully done. Were not down the road yet. But you have to consider that that is a strong possibility. Let me leave it at that. But they do that, i mean, cbs has been a winner, viacom i regard as a loser though theres an interview we read just a few years ago they werent. But cbs is about programming i cant miss. And viacoms all about programming that i can watch whenever i want. Its all true. And cbs would be inheriting a lot of the weaknesses of viacom that we know about that have resulted in the stock price being down though frankly the stock price has been up lately, which is another question, who are you protecting here . The stock keeps moving up every time we hear the board is going to be replaced, so who are you protecting . He says hes doing it of course because hes protecting shareholders who are being unfairly manipulated by Shari Redstone who is manipul e manipulating her father who is not competent. Yes . It does seem i looked at the back bios of the people that they put on the board. Total heavyweights. Not bad. No, not bad. Theyre not check the box people. Over the weekend it looks like alan murray at fortune had an interview with dauman. I have not been able to speak with philippe, weve detailed moneys of millions of dollars that has been a failure of the stock price to achieve anything here, even its peers returns. What people fail to see says the vast majority my compensations based on performance. I dont realize that unless the stock performs, so when the stock does not perform, i do not in fact collect the money that im being reported as having received. In fact, ive suffered along with shareholders because i have a lot of shares myself and in reality ive lost far more than the 54 million in this period. Thats not inappropriate. Ill be reward firstdegree and when the stock recovers. He sold a lot of stock. He did. I remember when he sold a lot of stock and exercised options and sold early, so ill go back and look. But i remember it. Im just reading this quote because this just came out. So, yeah, all right, he may own stock, he may be suffering but he also sold an awful lot of stock as well. I dont know, geez, i mean, the guy is well paid by the way stands to reap even more rewards if he is and when he is most likely dismissed. Fired . Yeah. Winwin for him. I would love that contract. So would 317 million other people in this country, right . Then the question becomes do they try to put cbs and viacom back together. Obviously the person who would run the combined company, i look forward to speaking to mr. Moonv moonves. Youll probably get him today. I would like to speak to him. Well, im stopping trading the moment you do. That would be the best interview in the world right now. Hes not going to say anything right now. Thats the thing. When we come back well get cramers mad dash and count down to the opening bell, one more look at the premarket as we get some green arrows both here and europe and in asia to some degrees as well. Back in a minute. 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I like girls that wear a six and a half minutes before the opening bell start trading for what could be a tumultuous week. Quiet day so far this morning. Yes, it is. Little nike on the mad dash. Piper comes out saying its a little too cheap. This stock has been under pressure for a very long time. Actually, since it reported last. The domestic wear coming back, i thought foot locker was an attractive story, the nike domestic, china is an attractive story, but i think this stock has really been beat down. Im kind of more leaning toward the idea that lebron and basketball, maybe high ratings, basketball sneakers have been in the doldrums, maybe this one wakes up. Its too expensive, david, no doubt about it, but i think its kind of spent its time in perg toir. Under armour has too. A lot of these may have been sports authority, you know, folding, but a lot of it is just this kind of sentiment thats gotten too negative. See that kevin plank s. A. P. Ad last night . Yes, interesting. And jim gafigan, i find hysterically funny. Under armour getting an ad basically paid for by s. A. P. In the respect of multiples here, im just curious. Still the highest. Is it . Yeah. Thats really a quandary because what happens is is that weve had severe multiple compressionist, people become very negative about our market. You have a lot of overseas business but that could cut well with brexit, i think if theres going to be a stay vote, a remain vote, get past the gloom for sports authority, nike may be the thing to go to. I just geez, the multiple compression, david, thats been going on is extraordinary, intact in anything thats apparel. And i think people have gotten too negative, ralph lauren i think theyve gotten too negative on, its extraordinary how high multiple stocks gotten so infectious. Not a lot of gloom today at least in the premarket. Perhaps what may be the results of the brexit vote later this week. Were going to have opening bell in about four minutes. 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One pill each morning. 24 hours. Zero heartburn. Youre watching cnbc squawk on the street live from the Financial Capital of the world. The opening bell in 60 seconds. And what a week we have setting up. Yellen on the hill tomorrow and wednesday, the brexit vote on thursday of course. Some housing data. Were going to get fed ex earnings and kbh and a few others. I think people have to be wary housing and auto, theres a lot of states auto still good because of the bigger trucks because of oil, the Housing Starts were also excited at 1 million. I mean, come on, thats 1950s speaking. We need to get up and see what le nar says. Kb is a cheap stock, i cant wait to hear what they say. Fed ex gives you the best read of any company in terms of the worlds growth. A lot to do. And dont forget the amazon read through. Thats right. Take a look at the s p at the bottom of your screen. If youre just waking up and wondering why the rally, this new survey out of the uk shows 45 remain, 42 lead. And if you average the last six polls, it turns back to about 50 50. Theres the opening bell at the big board today, ringing the opening bell is etf manager strategy shares celebrating the companys rebranding at the Nasdaq First Trust advisors at river front Investment Group celebrating the launch of four new etfs. Yeah, meatball. Etfs can be welcome if they help our viewers, but the plethora of etfs is very hard to keep track of. And a lot of them they tend to lose people lose interest in them. I just like to put that warning out there because theres the broad breadth of etfs i think has minimized individual stock. But when you listen to what they say, of course individual stock risk is too great. Well, individual stock risk brought you facebook, brought you apple, it brought you a lot of stocks it brought you nike, under armour, i dont find individual stogs being toxic. I hope not. Thats your bread and butter. I hope its not wonder bread, nobody owns that anymore, maybe its a wrap. Does hanes celestial make bread anymore . Yeah, they do. We dont need bread, we need wraps. Lets get through some calls. Yelp upgraded. How about that they could beat numbers. Thats very controversial. People saying it has to get bought, other people saying you dont know about the google algorithm. Yelp hasnt been able to get the advertising people are excited about, hes out there trying to make it work every day. I thought it was interesting saying they were going to beat the numbers. He is. When you use the service, i was on a vacation where it was helpful to have in a city i wasnt that familiar with, but i ended up using google as often if not more with the google maps that has the reviews there and i wonder if google is hurting them. Remember, they can fix the algorithm to make sure youre driven more, theres a big change. I felt that too when i was recently taking a trip and i asked for best honors on the l. I. A. And sent me to some place that was, lets say not that pertinent. No . No. Was it suboptimal . It was suboptimal. But i found the premiere diner, exit 52, that place is superb. And they love this show. Very nice. We always like to hear that. Thats good. So yelp is higher. Semantic, ubs goes from sell to buy. Oh, come on, everybodys so happy to have a pulse. Went private at 1. 3 billion in 2011, and bain bought it for 2. 4 billion in 2015. And these guys pay 4. 7 million and were supposed to be excited . Theyre excited because semantic had not had a pulse and suddenly its got one. No thank you. No thank you. But that sounded like a pulse. I got Cyber Security stocks i can tell you right now whenever you want. Please dont buy up 219. Goldman and j. P. Morgan leading the dow, along with boeing and these reports try to revive the 747. Geez, may be iran, may be russia, two outlaw countries, good luck there boeing. But there are some notes out Deutsche Bank says the bear peak case is not right. Boeing is a very inexpensive stock if you believe they can get russia and you believe that the price war between say american air and theres a very good note about spirit today. Maybe you just kind of have to think that the price cutting the airlines, david, while youre away in terms of multiple compression really rather extraordinary. People are just bailing from american air. Its selling at five times earnings. If its for real youre going to regret that. But, yes, i thought that the boeing call was very, very meaningful because people really hate aerospace. Three of the worst s p stocks last week were airlines. Yeah. Oh, my. That bank of america downgrade of american air just made you feel like, guys, get it together. The price wars that kind of happen, no one was focused on between spirit. And we never found out about that Management Change ceo spirit. No, whatever happened . Yeah, i dont know. But i think the airlines have been the leading ugly stocks so lets watch them. Theyve led us down bad. This will probably be the defining week for that saga that weve been following in the pipeline industry. Williams and ete. That sad, sad story of a deal that, well, certainly ete wants nothing to do with. This week they will be in fact, court case begins today in delaware. This is the key case in front of vice chancellor sam glascock iii. We should get a decision on whether a Delaware Court is going to force ete to file on the terms originally contracted including of course that 6 billion in cash, about 8 a share in cash paid to williams shareholders, or whether they are going to let ete out based on the inability to get tax opinion from its advisors. Well see. This will be done before the shareholder vote, williams shareholders which will take place in a week. So theyll know what theyre dealing with. I need your help badly because both stocks have been going higher. How is that possible . May be moving higher because oil is certainly well, not last week but had been moving higher. No, and natural gas has been youre right. Theres a view that ete is certainly in a difficult position to do the deal borrowing the 6 billion to pay the 8 a share, having to cut the dividend as much as it will. Theyve done away with any of these synergy numbers they were originally talking about. But the other question is are they also not in a great position, jim, to your point of why its going up if they dont do the deal because they have holes in their cash flow stream down the road a year or two from now the williams deal was supposed to fill in. It created this nationwide network, could be a fabulous network for natural gas as we switch much more quickly from coal than anybody thought. Coal was supposed to be the dominant form of fuel for at least the next five years, natural gas has already passed. Im watching the mlp industries, im watching this group very closely because this whether or not he will group is rallying. And this whole group will be rolled back by a decision of which now of course the spread in the deal is still 23. Its a huge spreads given there still seems to be largely a belief that the deal will not make it to the finish line, but well see. Ive seen it before, ibp tyson is certainly one example where the judge in delaware says you agreed to this and you have to follow through on it. How does it work . So you have people in the courtroom . And just quickly whip out their cell phones . Like the old days . Its like the old days. So two decisions viacom and this williams ete where there will be guys saying, listen, ete by a nose. Ete has a definitive outcome you could view as being much more definitive. Viacom thats already playing out and as we said more likely it gets affirmed at the terms of the board. Natural gas up again today, ive been following natural gas clo closely. Youre saying its more of a cavaliers golden state decision. Were going to know, right, who wins and loses, but what it means i mean, williams will go up if the deal goes through. Ete pays etp, in the article today talked about the amount of money Kelsey Warren makes 200 million from the dividend. That dividend will be cut. On the williams side, listen, youre going to get the 8 but dont forget youre going to have dividend cut substantially. So what youre going to lose in payouts over time really the differentials only about 2. 88 as opposed to 8 that you wont be getting. The idea that these are going up with oil is gravely mistaken. What does happen to have is that the etfs, speak of the devil, are so powerful they take up everything. As oil came back, but these are much more natural gas oriented and i would warn people these stocks, i have to tell you, david, one wins and one loses and they both lose. Youre not alone in that point, jim. Theyve been very sanguine. Yeah, so well see. No word well, i havent had up to the minute reporting on whether thereve been any talks but there hadnt been recently in terms of the two companies. They hate each other. Oh, yeah. Who hates each other more . Remember anthem and cigna . Theyre not particularly friendly right now. Talk about a spread of course journal reporting this morning that the antitrust regulators are really giving them a serious lookover. While they have not said they will move to block, they certainly seem to be indicating theyre likely to do so. Read the story in the journal if you want more, but yeah. Theres so much bad about m a right now in terms of whats happening and terms of antitrust. Its been a tough year for antitrust. But you gave so much crap to the on the airline deals, maybe they were finally listening to you. I tell you why i happen to see both the attorney general during that period and person whos very high ranking in the Justice Department and they said love the show. Thanks. The show, have you seen what ive been love the show. It was brutal. It was really like, hey, you know what, great victory golden state. No, actually we lost that game. They didnt get the headline. Finally, todays the day that 16year relationship between costco and amex comes to an end. Yeah thrks is something i want to address on mad money because i have to tell you this is one of those things where its a points issue. You get a lot of point fws from visa. The visa deal is good i think for both parties. As a big costco user i was encouraged by the people at the register to say, listen, come back after the visa thing. Its really great. And the gasoline at costco, if you want to go out of your way, now i have to drive 25 miles to get the deal on good gasoline, so maybe its more of a push. Yeah. But when we go to costco, david 25 miles total or 50 total . 50 round trip. When we go to costco, david, i tell you its going to open your eyes. I look forward to that. All but about 20 or so s p names are in the green. Lets get to bob pisani. Hey, bob. Only a few defensive names like consumer names are kind of flat. Were up 1. 25 , carl, in the s p but quite a rally going on in europe. Show you whats happening there remember the sterling having its best day i think in seven years against the dollar. So a lot of the wars over brexit are being fought in the currency markets here. Theres the ftse, done a complete uturn in the last two trading sessions. We were down notably for the month on thursday and have turned around in the last couple days almost flat for the month, believe it or not. You see germany, france and spain all doing well just off the highs today. Europes still trading right now. European banks all to the upside. A lot of people wondering whether this is an overreaction, lloyds up 6 , but remember financials even with these gains a lot of financials are still down mid Single Digits for the month. So youre still dealing with low growth and low Interest Rate environment, but just shows you this brexit was a real overlay on the additional problems, the low Interest Rate environment, the low growth that these banks have been dealing with. Sort of a triple lan li assive mentioned. Large swaths of the british market on the upside here. Berkeley group rally, London Stock Exchange concerns london might lose certain preeminence so very, very broad swaths of the European Market rallying. Here in the u. S. Reversal of a number of trades. Thursday was a bottom, remind everyone we were at 46 on crude and we were at 2050 on the s p 500. Thats a 50point move in the s p 500 in less than two trading sessions. And normally the s ps amplitude is about 12 to 15 points in a single day. This is huge moves in just the last two trading sessions here. Sectors here not surprisingly our bank sector finally weve got a day with tenyear yield on the upside helping the bank sector, thats the kbe bank index, modest rallies here but its across the board. As carl mentioned its a very strong rally, the breadth is notable. Energy stocks doing well. Health care also on the upside. Interestingly tell k telecom, b some of these banks still down, some Single Digits not anything as bad as europe but tough for the banks dealing with the double whammy of low growth and low Interest Rate environment. Oil stocks up, dollar down, weve got a nice rally in u. S. Oil moving to the upside here. Usual names up modestly about 1 . Finally just note these defensive names, which had had a nice move as people moved into defensive names last week, all are flat today here. Not much of a rally here. But thats not surprising given the riskon nature of the market today. Finally note late friday the s. E. C. Approving iexs application to become a Stock Exchange. Theyre specifically allowing iexs speed bump, that was quite controversial, but iex says will decrease, theme for michael lewiss flash boys book. The dow up 244 points. Energy and financials leading the way. Lets get to jackie at the nymex. Good morning, carl. Thats right, Oil Prices Going over 49 a barrel this morning. And the strength that were seeing as bob mentioned is really on the currency play here. Youve got a weaker dollar, youve got the basket of currencies that its measured against a little bit stronger today as these brexit fears are easing a little bit. And thats really why oil is at the upper band of the range weve been watching. But thats been the expectation for the next month or so, so not really a huge surprise on the energy trade. Remember as brexit fears do ease youre also going to have concerns about Global Growth easing as well, thats supportive of oil prices too. Meanwhile gold ticking a leg lower and with currency in weakness you would expect gold to be higher. Not so much a currency play, more of the safe haven trade coming off a little bit. Remember, gold is still pretty much close to 1300 and it is a strong trade right now some people are staying in as they see how the volatility plays out this week. Expect volatility is what traders are telling me. Saying margin requirements are going to be raised anywhere from 7 to 10 , this is only from a few firms, but it is an indicator that theres a worry we could see big swings in kbhodtikbhod commodities. Thank you very much, jackie. Were going to stay on top of this mornings rally dow up 250 points. S p within a stones throw of 2100 yet again. Dont go away. Im only in my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. 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Getting some breaking news from Donald Trumps campaign saying they are parting ways with the Campaign Manager Cory Lewandowski who made some news himself in the last few weeks, the Presumptive Republican nominee faces more challenges ahead of the convention in cleveland not too long from now. Well watch that. Meanwhile, dom chu is watching breaking news regarding v. W. Correct. The former ceo chairman of volkswagen, now there are reports here coming out that german prosecutors are opening up a probe or an investigation into whether or not there was market manipulation on the form of volkswagens part based upon when they actually released data about their emissions cheating scandal. At the heart of this, again, the idea that perhaps the company knew earlier on than when it actually disclosed the information whether or not it knew it had an emissions scandal. Prosecutors looking into possible market manipulation, latest headlines from multiple outlets. Well keep you posted. Back over to you. Dom, thank you very much for that. You said at the open, jim, not a big fan of this setup so to speak. Yeah. What happens as we move on . I just think that, look, this things not over with brexit, this is last weekends polling because there wasnt allowed to be any campaigning. I dont want people to pay out big for things they hated last week because then you just get whipsawed. As much as my travel trust is in a bunch, facebook, amazon, netflix, google, now alphabet, i just dont think thats where people go. They go to honeywell, they go to 3m, they go to the big industrials, but feel if we got rid of risk overseas theyd be higher multiple stocks, wed pay for more their earnings. I think those are the stocks that have staying power and you go in and buy something you hated last week because you felt fundamentals were weak, youre going to get hit again. I also think clorox and General Mills have been unstoppable and those are stocks people feel very little risk. We talked about the bookies last week and why those havent moved. Lab ros tweeted 95 of the money staked today was for a remain vote. Really . 95 . Yeah. You know, twitter is so dead and yet still alive. Right now im writing off twitter on twitter. Im saying this thing is no good and im going to tweet a million times on that. Right . For all my followers. Because its finished. Its so finished im going to dress it all day on twitter. Stocks only down 30 this year so far. Thats not bad. I tell you you got to read that hive article. I will. Total disarray there. Disarray. Well get stop trading with jim in a moment. Dows up 233. Youve wished upon it all year, and now its finally here. The mercedesbenz summer event is back, with incredible offers on the mercedesbenz youve always longed for. But hurry, these shooting stars fly by fast. Lease the gle350 for 579 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. 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. With usaa is awesome. Homeowners insurance Life Insurance automobile insurance i spent 20 years active duty they still refer to me as Gunnery Sergeant when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and im a usaa member for life. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. 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. Time for cramer and stop trade sglg we had a spirited discussion with chip wilson, founder of lulu. Talk about long standing Board Members and issues went back to 2005 the street looked at this article very good article a board member wrote a picture you couldnt find anything about her since 2005 she made hundreds of thousands of dollars, but nothing. Theres nothing on the website, things she says she does, nothing, cant find a thing about her. So chip wilson, i want to hand it to you absolutely right versus 2013, i was rough on him, but hes got a point with his longstanding board member of 2005, thats who he blamed wrote a picture, where are you, thats my point, the street asking is lulu wrote a picture board member for real . Interesting. Now theres that narrative. Yeah, a university we couldnt find. Good reporting there. Met her through jim stewart through columbia. Very nice. Would like to know where in the heck roda picture is. May be flip wilson, hes going to flip. The flip wilson show. Im flipping on chip is what im saying. Im flip wilson. Geraldine. Yes. But i just followed up because i thought he was too aggressive, i felt, on this board. But when i did the search in 2005 looking at the street piece, chip come back on. Whats on tonight . Were going to talk about what happened to the jewelry group. Why does jewelry not sell anymore . Whats the health of jewelry . I dont know. Well, youll find out. Okay. Hey, welcome back. Thank you. Good to be back. Full strength as we like to say. Happy fathers day to everyone a day late. Dow hanging onto 234 points. More squawk on the street after this. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. 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. Welcome back to squawk on the street. Im simon hobbs along with sa h eisen and david faber. Rising hopes that the uk will vote to remain in the eu thursday, financials leading the charge, the rally in oil leading wti on the verge of regaining 50 a barrel, a big week for the markets. Of course janet yellen before the Senate Committee tomorrow. And then the house on wednesday. Our road map begins with stocks surging this morning. New polls showing an increase in possibility of britain remaining inside the eu. Well have the latest on that brexit vote that is coming later this week. Another big week for the fed as chair yellen prepares for two testimonies on capitol hill. Cleveland celebrating first title in half a century. Break down the big dollars behind the game and what it means for lebron james and steph curry. Coming up, the worlds biggest advertising festival kicking off, our very own Kayla Tausche is live from can lions, big lineup ahead there. The founder and ceo of Pandora Tim Wester gren will be joining us. You wont want to miss that interview and much more coming up from kayla on squawk alley. 250 points on the dow, getting a welcome boost from the uk. Thursdays brexit vote still too close to call, but risk assets around the world surging on new opinion polls that Show Campaign for britain to leave the eu appears to be losing momentum. Joining us now is john silvia, chief economist at wells fargo securities. This is a big move today. Do you think its the beginning of perhaps a dear change in sentiment . I think it is basically a change in sentiment. We also have to worry, simon, about volatility here because while the sentiment may have moved today, in two or three days well see what the actual vote is. But volatility is the number one story both for the equity market but also for the british pound. Okay. Lets go obviously the polls are still too close for thursday. But lets go with todays price action. Lets believe in the price action. How much of an overhang do you think the uk has been to the market in many senses . And if we are able to remove that on thursday, where do you think we might go . Oh, i think you still go up because youre going to have better trading realizatie iniinn the uk and europe, both economies probably going to improve in terms of Economic Performance, taking away the downside on economics, taking away the downside on currencies. And i think riskon surely says stronger economy better equity markets. Probably ask the chief economist this, do you think we could get back to the record levels . Were about 1. 5 points below the record we had on the s p of may of last year. Do you think that might be attainab attainable . Would your strategist say thats on the cards . Oh, i think it definitely would be in the cards. Youre talking about 1. 5 growth in both the euro and uk. Take away a little uncertainty, talk stronger growth, youre still not talking about any Interest Rate increases. Youve seen already from the fed that the fomc that theyre not going to be moving any time very quickly. So i think, again, youve got more upside, absolutely, simon. I mean, obviously front and center as far as Interest Rates are concerned as janet yellen beginning two days of testimony beginning tomorrow. Less than two weeks of course after the News Conference off the fomc decision. The classic thing to say is she will correct any misperceptions she believes the markets have tomorrow morning. Do you think there may be misconceptions there . No, i think the mashlgts got it right. The feds going to be very cautious going forward. Theyre going to allow the expand, fomc has no problem with being over the next year or two flatten Interest Rate expectations for 2017 and 2018. I think the markets got it pretty well right. John, its sarah, what does the fed do if britain does vote to leave the eu . Well, sarah, immediately the problem becomes one of flight to safe haven, so the dollar will become even stronger. I think sarahs going to cause the fed to be even more cautious in terms of raising rates because not only do you have a stronger dollar, now you have uncertain Economic Growth and contrast to what simon and i were just talking about uncertain Economic Growth in both the uk and euro area. And of course our trade with euro and uk will also be negatively impacted. So i think it even delays further any fed move. So it sounds like youre not expecting any action in that scenario. What about from the European Central bank . Do you expect any sort of stimulus or efforts to provide liquidity . What is going on in those plan b contingency meetings that central bankers are having . Absolutely. First is providing stability. There are some significant euro Bank Relationships in london. The spanish, irish or german banks that are in london, so liquidity has to be provided. But clearly, sarah, the problem is youre going to have weaker Economic Growth in the euro and uk because of weaker trading relationships. That makes the ecb even more favorable towards further ease down the road. Okay. Whats the Bigger Picture on the fed here, john . Lets say britain remains within the european union. Do you subscribe to this view that was going around last week perhaps in line with pull out on friday beginning to top out on Interest Rates that there may not be another Interest Rate rise from the fed and kindly sort of shifting it off stage left before our very eyes if you like. I agree, simon. Do you . I think what was really key when the fed lowered their potential gdp estimates and really settled on 2 Economic Growth. Well, okay, if thats your target in terms of growth and inflation still modestly increasing at the time, yes, i expect once again the fomc and janet yellen this week will show very cautious fed looking at all the data rksz simon, looking at global and economic financial and right up front the euro brexit situation is a major uncertainty. But, john, you know if the fed is not going to substantially raise Interest Rates and weve only had one Interest Rate move so far, that must be hugely beneficial for risk assets would go the argument. Certainly thats the argument weve had for many, many years. Why are you laughing . You dont agree with that . No, i agree entirely. Why werent we rallying through last week then . Oh, i think still the brexit issue, simon. I think that major uncertainty, its a date certain, its a major break in economic policy. I think the market still had to be cautious in front of that. But now with the fed increasing Interest Rates a little bit less than what most people had expected and certainly the fomc members bullets, comments coming out really emphasized the economy can grow a little faster. Fed isnt going to take the punch bowl away that favorable. Good to see you, john, have a great week. John silvia joining us from wells fargo securities. When we come back, big news this morning in politics as reports say donald trump is firing his Campaign Manager. Weve got the latest on that. Plus, cannes lions kicking off big advertising meeting. Our very own Kayla Tausche will join us with a look at what is to come from that festival. Dow up 270 points. Opportunitys knocking, where selfproclaimed financial superstars pitch you investment opportunities. Ive got a fantastic deal for you gold with the right pool of investors, theres a lot of money to be made. But first, investors must ask the right questions and use the smartcheck challenge to make the right decisions. Youre not even registered; im done with you i can. I can. Savvy investors check their financial pros background by visiting smartcheck. Gov strong rally going here. The s p up almost 1. 5 . The all America Economic survey is out. Our Steve Liesman joins us with the exclusive results. Steve, good morning. Hey, sarah, i want to share with you some amazing results, differences between trump and clinton voters when it comes to investments in the market. Stuff that other polls dont have because they dont ask about the economy the way we do. First take a look at overall views of americans on the stock market the way we do every quarter. You know, this good time to invest number had been up at 40 , it came down to the 30s. And its kind of stay there hed. The only good news percentage of americans saying a bad time to invest came down. Where did it go . A theme weve seen in all the results around the election, its gone into the not sure. A lot of folks are not sure about a lot of stuff these days also when it comes to the election. Take a look the other division we do which is the financially those with incomes over 100,000 and money in the stock market they ticked up a bit, they ticked up a bit just a little bit too. So really call it statistically flat though. Lets go to the next thing, what are the best investments right now according to the american public. Real estate winning again, i think this is the fourth in a row real estate won with 32 . Gold 21 . In a statistical dead heat with stocks. But take a look at differences between trump and clinton. 32 , theyre pretty much in agreement on real estate, look at the differences. Trump voters tend to be gold bugs, 31 also saying that gold is the best commodity, 12 for clinton voters and stocks trump voters down on stocks, clinton voters have a little bit more support for equity, sarah. Just remind us, steve, very quickly of the overall Election Results that you took. Let me show you that because its really interesting. 40 for clinton, 35 stay trump. But look at this number right here, 25 with 14 saying neither and 11 saying they dont know. This theme of uncertainty running throughout our poll. And its all online, sarah, cnbc. Com. Pick up on the stocks versus gold. What i was going to ask you was is it normal for people to rank gold above stocks and then saw the bar chart you have. No, its not normal. Thats a major turn in psychology there to think weve had moments, simon, when gold comes up. When the stock market falls, when youre in uncertain times, i believe when we had things like the fiscal cliff into that number two, number three spot. But the difference with trump and clinton voters is emblematic of something we see throughout which is the typical trump voter is more pessimistic and more angry skprks that shows up in their preference for gold right there. All right. Steve, thank you very much. Pleasure. Always interesting. Meantime, the Worlds Largest advertising festival Cannes Lions International festival is kicking off. Tough gig, kayla, in the french rivie riviera. Yes, it is very tough, but guys, i can assure you im wearing spf 70 because im easily the palest person here. Started in response to the Film Festival, but its really more to include a whos who of media and tech as the advertising tech and media world have all collided. And executives you might think that theyre just having a day at the beach, but they say its more like attracting bees with honey because its so beautiful here that who wouldnt want to attend . And everybody does attend so ends up being one of the most productive weeks of the year. If the big wigs are here that means we are going to be here and the hot topics we hear everybody buzz about is virtual reality, messaging, facebook, google, twitter, hosting beach front property to show interactive demos to advertising partners. We will talk to adam bain, sir martin of wpp later in the week, also shane smith of vice. But just as interesting guys is whats happening behind the scene. Snapchat was a keynote last year and they are certainly making a splash and taking a lot of branding across the city on the pa lay, hosting a lot of dinners, certainly trying to drum up or keep momentum going for their burgeoning ad business. Also the embattled ceo of viacom is also reportedly here to be meeting with ad partners, assuaging their concerns about the business after taking down the guidance for the company. Of course the distraction over who will end up running Sumner Redstones empire. And of course to keep the palace intrigue going, leslie moonves, is also here. Next hour well talk to vox, Tim Westergren of pandora and well manage to enjoy in the meantime. Back to you. Kayla, what is your perception of the difficulty that big tech has in grabbing more of the advertising budget . Because obviously there was some retrenchment and they felt a lot of them that they had to perhaps articulate their story better to shift the ads spend as much as they had hoped they would. Where does the power lie in cannes this year, do you think . It does feel, simon, like the power is still with facebook and google. Where advertisers are spending with tech companies, they are spending about 85 of it with those two companies. So it seems like the fight is actually between some of these smaller tech upstarts. You cant even call them upstarts like twitter who are trying to fight for that remaining 15 market share. Thats really where the fight is. I think the big broadcasters who are here, and the Traditional Media Companies know that everything is moving online. And so they just want to be there when the puck eventually gets there. But its pretty clear that theyre going to be fighting a turf where facebook and google already have much of the income there. Seems like a good time, kayla, also to be talking to ad execs about advertising itself with the rio olympics coming up, with the u. S. Election which is set to bring in big time ad dollars on both campaigns. And of course some of the big Macro Economic issues like brexit this week. Oh, yes, and we will talk to sir Martin Sorrell about brexit of course. There are huge implications for what happens there. Well be talking to the manager of nbcs own 4 billion ad business what inventory looks like for rio, how thats going so far. So a lot of big topics and you can bet well hit them all. Okay, kayla, its going to be a busy couple of days. Looking forward to it. Kayla tausche joining us from the south of france. Coming up on the program, reports saying donald trump is parting ways with his Campaign Manager. Well have the latest from the campaign trail next on cnbc. I laugh, i sneeze. There goes my sensitive bladder. Sound familiar . Then youll love this. Incredible protection in a pad this thin. I didnt think it would work, but it does. Its called always discreet watch this. This super absorbent core turns liquid to gel, for incredible protection thats surprisingly thin. So i know im wearing it, but no one else will. Always discreet for bladder leaks a shake up in the 2016 president ial race this morning. Donald trump parting ways with his controversial Campaign Manager. For more lets check in with our own chief washington correspondent john harwood. John, how much of a surprise is this . Its not surprising. The only question was when Something Like this was going to happen. Corey lewandowski is somebody who deserves the credit for the way he guided donald trump, as Campaign Manager to the republican nomination. He ran it from the beginning even though he had not run a president ial campaign before. And he built his Campaign Around the big donald trump rallies, Donald Trumps domination of media attention. But that formula doesnt necessarily work in a general election when youre trying to appeal to a broader audience, when youre facing just one opponent. And Corey Lewandowskisbelligerr combativeness as exemplified by this incident with the reporter Michelle Fields where she was approaching donald trump at a rally, Corey Lewandowski grabbed and jerked her arm, this briefly generated charges against lewandowski though they were not p pursued. But that sort of similymbolizes style and lately hed been bumping up against Paul Manafort, and given how difficult Donald Trumps campaign has become, his deficit widening in the polls, its inevitable he was going to make that turn to Paul Manafort more fully and indication of how difficult it was within the campaign, tweeted out after the firing of Corey Lewandowski, ding dong the witch is dead. So that is an open demonstration of just how toxic the Trump Campaign had become internally. Well see now whether with lewandowskis departure it becomes a smoother and more broadly appealing operation, guys. Or something thats perhaps more aligned to the party itself, to the establishment gop. As of course he looks to raise funds and the discussion around that and what might happen there, john. Absolutely, simon. Look, Paul Manafort is somebody experienced in president ial republican politics, hes run conventions in past republican campaigns. This is someone who knows how to do the mechanics and the fund raising and all the things that go with the National Republican campaign. Corey lewandowski for all the strength he showed during the primary campaign was simply not experienced and equipped to do that. One last question, john. There is this discussion about whether theres still an antitrump push within the party that may materialize at the convention. I know that the Trump Campaign is basically saying, look, this is a figment of the medias imagination. How would you weight what is going on here . How real does it appear to be . I think its pretty unlikely that donald trump is going to be stopped at the convention. And i do think that this move that donald trump made probably diminishes that likelihood by solidifying control in Paul Manafort, somebody with bona fides among conventional republicans, traditional republicans. Its not out of the question. And as trumps deficit widens hes now in the average of polling six or seven points down, thats a pretty large gap in our system given how polarized our polls are. Youve got to have an alternative. Youve got to have a candidate organizing. And youve got to have a large constituency for that person. In the primaries nobody develops such a constituency. Its not likely its going to happen now. John, thank you. John harwood in washington. Coming up on the show, the brexit vote Takes Center Stage as hbos last week tonight host john oliver weighed in on the debate last night. Theres also overwhelming consensus about the damage britain could do to its economy by leaving. Reports by groups like the british treasury, the bank of england, the imf, the oecd, the National Institutes of economic and social research, Price Waterhouse coopers, and the center for Economic Performance have all predicted that leaving would have a negative effect on the british gdp. And the pro brexit response to that has not been great. I think the people in this country have had enough of experts with organizations acronyms what do you mean . Organizations with acronyms saying they know what is best consistently wrong. Yes. [ bleep ] these eggheads with their studies and degrees. I get my Economic Forecast from clever otis, the gdp predicting horse. Well break down the possible brexit results and how to play the market ahead of thursdays historic vote next. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. A good car has to maneuver quickly. Thats also true of a good car company. People have always bought cars. But we saw an opportunity in sharing cars. So we moved fast and launched car2go in 29 cities, all around the world. Doing that required dozens of data centers, designed for speed and performance. We built our business on the ibm cloud. Because thats what the ibm cloud is built for. Thank you. We built our business on the ibm cloud. 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. Im sharon epperson. Heres your cnbc news update at this hour. The Supreme Court rejecting challenges to assault weapons bans in connecticut and new york. They left in place a Lower Court Ruling that upheld laws passed in response to the Newtown Elementary School shooting involving a semiautomatic weapon. A suicide car bomb has killed at least 12 people in afghanistan this morning. The bomb hit a minibus carrying private security guards in kabul. The guards were from nepal and on their way to work in the capital. A brutal heat wave expected to continue today in arizona. In phoenix temperatures climbed to a record setting 118 degrees, fifth hottest day on record. The high today is expected to be 117 degrees. And speaking of hot items, mattel has one they recently released game developer barbie as a way to get girls interested in technology. She sports jeans, jacket, sneaker, dyed hair, hip ster glasses and a headset. None of it is pink. Its already sold out on mattel. Com. My daughter would love that. Thats our cnbc news update this hour, sarah, back to you. I would love that too as a little girl. Sharon, thank you. Absolutely. Take care. Companies and their executives dont usually weigh in on elections and politics, but the brexit vote is proving so consequential economically that it is prompting some big business to speak out. The alcoholic drinks giant behind Johnny Walker and kettle one, numerous other brands based in the uk sent an internal memo today to employees laying out whied ceo says it is better to remain in the eu for the company and for the scotch whiskey industry, says, quote, remaining the eu gives us easy access to the european single market, thats 500 Million People on our doorstep to whom we can sell our brands without much red tape. He goes on saying being in the eu means the uk benefits from the tree trade agreements europe has already signed and cites a recent agreement with vietnam as a good example, quote, over the next seven years this will eliminate 45 import duty on spirits exported into vietnam. If we leave the eu, our products revert to paying 45 import duty until the uk is able to negotiate its own trade agreement. This will have an impact. So largely due to trade he says it makes little sense to risk the uncertainty. For more on what other ceos are saying our willford frost joins us from london ahead of thursdays historic vote. We should note, wilfred, the dow just erased all of last weeks nearly 200 point decline because of some of the optimism on some of these polls. Absolutely right. Markets rallying significantly, sarah. First i wanted to point out earlier i told you you need to bring your own umbrella, but the sun is out. Maybe you dont after all. Your know british weather is very volatile, market suggesting a bit of a volatile response in recent days to the brexit vote. Strength today as polls have improved. One of the reasons as you said big business coming out in force today writing to employees deagio one of the names 5,000 employees to speak of who may be influenced by that letter. Ford, the uk arm of the automaker writing to its 14,000 employees, another Major Company today getting in touch with voters backing them, urging them to back the stay camp. I would add though that both letters seem to point to that uncertainty. A period of uncertainty in the intermint period. Theyre not saying the economy will collapse on the 24th of june, the day after the vote. Also worth pointing out smaller businesses tend to favor exit while bigger businesses remain. So lots of points coming across in the business community. The question of course is whether employees do listen to that. Its really an argument focused on those who are undecided. People already backing exit because of issues like immigration or unsovereignty are less likely to be swayed by these sorts of things. Back to polls, other factors polls have moved significantly as you said dow erasing losses from the end of last week. Rather than the business argument i think is more down to the sense of unity weve seen particularly within the remain camp following tragic events last week. And as we speak parliament is in special session to pay tribute to murdered m. P. Jo cox. Prime minister speaking saying she epitomized the very best of humanity. Thats the sentiment going on inside the houses of parliament behind me. Whether that continues to build the sense of unity behind the remain camp well have to wait and see, but the polls, the betting markets, theyve certainly moved to suggest that remain is the more likely of the two outcomes now. Wilfred, its simon. Is it fair to say its interesting with the ceos i think the Financial Times ran an article last week where ceos were being asked to sign another letter remain, one said whats the point were not going to move anyone on this issue anymore. Is it fair to say that the argument has shifted from economic to immigration and then perhaps more controversially to race . I think one of the lords, one of the female lords has actually resigned from the exit campaign overnight in the way that she perceived that side have been arguing its case. Indeed yes. Had been backing leave, shes now backing remain because she felt the immigration argument had gone just a little bit too far in recent days. Its worth noting while significant and symbolic, she wasnt a lead face of the exit camp, but certainly relatively high profile person changing their view. Listen, i think its absolutely right, simon. Weve said before how devoters like being told what the economic negative will be leaving or do they want a positive reason to embrace. Thats certainly an aspect with all these businesses coming out. I think a letter from your ceo is probably going to resonate a little more than mark kearny or janet yellen, not sure who they are saying theres going to be a hit to gdp, a factor maybe you dont even think youll feel in your wallet. I want to touch on the extent of the market moves weve seen today. Most of the traders moving the sterling market is based here in london. London is a cosmopolitan place likely to vote remain. Go to the areas i dont think these arguments are being felt so much. Yes, theres a sense of unity over the last two or three days for remain, but a lot of those people wont be swayed by it either way. I just wonder how pronounced this move in markets has been today and whether thats really totally justified. More polls of course due to come out. And campaigning due to pick up much more in the next couple days than it has been in the last couple. And can the leave camp get the focus back on the likes of immigration where they do well . Its going to be close. Ill see you tomorrow, wilfred. Ill bring my sunglasses and rain boots. Never know what to expect in london. So for more now on how the outcome of this brexit vote could impact the markets, lets bring in barrington pitt miller, you know, wilfred brings up a good point, rally in the dow, even bigger in places like germany and european banks, are investors getting ahead of themselves here with three days to go before the vote . Well, i think it demonstrates the very high intensity nature of the potential outcomes here. If we do have a remain vote, i think well continue to see this sort of rally continuing for a while, particularly in the uk equities, potentially Continental European equities, sterling strength, euro. And i think it will have a positive impact on global markets. I think the issue is in the event of an exit that brings very considerable uncertainty to the entire euro project and markets detest uncertainty. And that uncertainty will potentially bring in some very serious fat tail event risk, the integrity of the euro to question, i think thats why youre seeing this very high beat in Market Reaction both to the increase in the exit and to the remain poll. So with that big of a risk as you spell it out, how are you positioning for the vote . And how are you hedging if it goes the other way . Well, weve certainly taken down a lot of risk going into the vote. We are cautious on uk assets. Weve been cautious in our positioning in Continental European assets. And i think the same would be true for both opposition in credit and rates, we have developed a relatively defensive stance given the potential for that high intensity, high impact event in the event of exit in europe. Barrington, i think its worth pointing out that and this is potentially where the danger lies, that actually most people who control money, for example german industry, does not believe that the uk is going to exit. If i look at the Merrill Lynch fund manager survey roughly three quarters of Big Fund Managers if not more think its not going to happen. Look at the survey out of germany of industrialists, they dont think its going to happen. Therein lies the danger of course that actually on thursday they do vote to leave and actually all hell breaks loose because if you look at the moves weve had over the last couple of weeks, arguably theyve not priced anywhere near what people think might happen on thursday. Is that fair to say . Absolutely right. Been talking with a number of Financial Institutions senior managers in recent weeks. Its interesting they are very surprised that their own clients are not derisking substantially. So i would absolutely agree with you that the general position is probably moving towards remain if youre active in global markets. But i think the tail risk to the downside, if you start to question the european project integrity very serious for global markets. Sorry. I just wanted you to get more specific. What about european banks . What type of moves given what theyve seen so far, Deutsche Bank, ubs, barclays, are you talking about in terms of how much theyll be hit if they do vote to leave . Well, i think theres an interesting point here. Ecb is very active in the credit markets and the rates market. So if you want to express a view of deep concern on the back of an exit vote, the equity market becomes almost the most inevitable place you have to express that opinion. That will be therefore very challenging to stop and absolutely hit the nail on the head. Remember also that the markets are very hard wired these days to look for systemic financial stress, post the euro sovereign crisis, the market looks for those chin ks, moments of weakness in architecture. They will be absolutely looking at the financials. And if i look back, barrington, at where europe or the eurozone traded over the last ten days, you can see from the price action that its the italian banks, or its the spanish banks, the weaker banks with so many questions that really do shift ironically on whether britain stays in the eu or not. Is it possible that you construct a chain of events where the epicenter of the uk voting to leave on thursday becomes the failure and the recapitalization hopefully of one of those players . I think that weve witnessed youre right on the equity market news, but weve also witnessed quite a significant widening of the peripheral Interest Rate spreads versus the bund. And i think that very clearly tells you during those periods of sort of the polls moving towards brexit but the market is deeply concerned back potential ramifications on the peripheral assets and ultimately peripheral Financial Institutions. Im not sure in and of itself a brexit vote is the catalyst for a serious problem in a single idi situation in europe, but id certainly think that is where the potential epicenter of an exit vote would manifest itself. The uk first order impacts material, more so than europe. But the seconds round impacts are going to be more acute in Continental Europe because you begin to question the integrity of the euro project. Which is why were going to have to watch the ecb. Barrington, weve got to leave it there. Barrington pittmiller of janus capital. Nike releasing an ad highlighting the victory. What the big game means for advertisers ahead on cnbc. Sir its the president mr. President were on mars. Switch to a video call. Sure, we can do that. Congrat. Picture from mars looks great. Its about Time Business Communications caught up. Go from an audio call to a Video Conference with the push of a button. Vonage. Business grade. People friendly. In terms of great nba rivalries weve got bill russell versus wilt chamberlain, Magic Johnson versus larry bird and now lebron james and steph curry. Cleveland cavaliers clinching historic comeback last night becoming the first team ever to win an nba finals after they were down three games to one. Game seven also capped high stakes battle between nike and under armour. Nike quick to capitalize on the win and its lebron endorsement with this ad last night. For more on the big Business Impact and the big money at stake, were joined by cnbc contributor mike jackson, chief marketing officer with Event Solutions international. And, mike, does nike see any increase in sales and or decrease from under armour as a result of the results from last night . Well, thanks for having me. You know, nikes this iconic brand. And their positioning is really not so much anymore about selling product. Its about creating this kind of movement. And the fact that they had that ad ready, i believe, which really captured consumers all over cleveland, really just keeps putting them in the hearts and minds of consumer that are barely passionate about sports. So i think theyll continue to beat nike. I dont think under armour will kind of outnike niek nike, and theyve got a challenge going forward. You think under armour has a challenge, clearly a bad loss so to speak for mr. Curry, but i would think his star still shines very brightly as well. Oh, steph curry is an outstanding spokesperson, outstanding ambassador for the under armour brand. I dont believe that, you know, i wanted to imply that they have a challenge going forward, but if you go back to the early 80s when the cola wars going on between pepsi and coke, i kind of look a little bit at whats happening between nike and under armour to be consistent with that. Pepsi went out and made big splash, signed a lot of high profile players and coke took a step back, kind of retrenched themselves in their brand positioning. Again, as you saw in that ad last night, nikes positioning around being there for the moment, being more about a broader movement, having their products and their personalities like lebron, like curry participate in that, it was Just Brilliant positioning from a very, very tough competitor. Mike, we were talking to one of the crew that is renegotiating the contracts in nba, the salaries for the players. And she was suggesting that actually one of their main hopes is they could take nba internationally. I see from your resume here youve worked for coke, for pepsi, a lot of International Brands on international campaigns. Do you think that nba is being marketed abroad where you could presumably get some exponential growth adequately enough . Do you see ways in which they can make that better . What would you advise them to do . You know, one of the things that is happening with the nba is and this was kind of started with, you know, the whole era of Michael Jordan and Magic Johnson and larry bird continued with kind of kobe. They became kind of global superstars. Consistent with that is the positioning around steph curry and lebron. And i think what the nba really needs to focus on is how do i take my brand, the nba, our teams and really put them into the conversation versus black mamba, kobe bryant, being a superstar in places lie china. My 13yearold son never saw Michael Jordan play, but hes still buying jordans. Does this win take lebron up to that same level . You know, thats going to be a real challenge because nike and jordan, you know, i was talking to my son last night and said, hey, if you think about brands and you think about product, the only nike product associated with basketball that you can even remember is air jordan. You know, kobes had his shoe, lebrons got his shoe, and so, you know, thats kind of rarefied air where michael sits. I dont know if thats going to be approached upon. Lebron also has a lifetime contract now with nike which is something that only Michael Jordan has. In that sense its similar as well. Yeah, theyre going to be working together for some time. Mike, thanks for joining us. Appreciate it. Thank you. Mike jackson chief marketing officer Event Solutions international. Coming up on the program, still up 243 points on the dow. The looming effect of a possible brexit boosting markets this morning. Well break down how its also having an effect on crypto currencies next. 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. 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. Bitcoin has been spiking. The crypto currency has been going higher pretty much all this month with the british pound seeing increased volatility ahead of a brexit vote. Some are wondering whether bitcoin is a safe spot to invest in during economic uncertainty. Fred irsam, good to see you. Thanks for joining us. Good morning. Good to see you. Is that really the reason why bitcoin has made a move higher in recent weeks, because of uncertainties like brexit . I do think so. Im not sure its all associated with it, though. I think a lot of it has to do with the devaluing in china and what we have consistently seen with bitcoin is chinese investors often flock to bitcoin. The other thing i will say is broader euro zone tensions, so as european banking stocks struggle, we have seen in the past when cyprus has struggled, bitcoin has rallied. So things that i think effect the stability of the Banking System broadly help bitcoin. Isnt there also an upcoming supply shortage, preprogrammed codeinduced sort of limitation of supply thats coming in july . Some are attributing it to that. Thats correct. You are referring to the block where the inflation rate will effectively be cut in half. I do think thats a reason for the price increase as well. Its by nature a limited supply currency. It will be fixed at 21 million bitcoin ever created so as the inflation rate goes down, the price seems to be going up in expectation of that. The risk is people will look at this and say its a safe place to invest but it still is pretty volatile. There are still a lot of risks. There was a New York Times report this weekend that a bitcoin centered or block chain centered Venture Capital fund was hacked and a third of the value was stolen. Yeah. You are absolutely right. Its still early days of creating the internet of money which is really whats happening here. So it will remain volatile for awhile, i believe. But its kind of like early internet stocks and you know, the late 90s or 2000s, theres so much potential but its very early. Theres a lot of experimentation. I think it will be worth a lot long term, but theres going to be some bumps in the interim. I wonder if we have to distinguish between talking about an alternative currency where we talk about the price of bitcoin versus what mark es is excited about and the new york Stock Exchange which is also an investor in your company, arent they investing for the technology of the block chain with the hopes that one day it will change the way we do payments . Dont we have to distinguish between that and the price of a safe haven alternative currency . In some ways, yes. In some ways, no. I think that you need a native currency in order to power the economic incentives to make the entire thing work and to run, because people wont maintain it for free. So the two are linked. That being said, i dont think bitcoin has to become the global currency in order for block chain to have a massive effect on the way we transact on a daytoday basis. Where are we in that effort for block chain to have a massive change in the way we use payments and in the way that banks operate . I think that we are in relatively earlier days of it. I would say we are probably 15 to 20 into it. If you think about this as a Global Network trend like the internet, we are probably in the early 90s where theres a lot of money going into it, a lot of development happening, but at the same time, in terms of the arc of somebody using it for multiple actions as a part of their every day lives, its definitely in the earlier part. But the promise and the rate of change in the ecosystem is high and is definitely there. All right. We continue to take note, especially had we see mids like this. Thanks for joining us to discuss it. Speaking of things technology, squawk alley is on deck. Jon fortt is the member of the team that didnt go to cannes. Good morning. We will talk markets, the dow up better than 240 points, but the nasdaq doing the best of all indices, up nearly 80 points at this point in early trade. Also on the show, we have Tim Westergren coming to us and we have a big weekend for disney on multiple fronts. Thats coming up on squawk alley. When a moment turns romantic why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card. My m. About my toothpasteice. She eveand mouthwash. Ice. But shes a dentist so. I kind of have to listen. She said jen, go pro with crest prohealth advanced. Advance to healthier gums. And stronger teeth from day one. Using crest toothpaste and mouthwash makes my. Whole mouth feel awesome. And my teeth are stronger too. Crestpro health advanced. Is superior to colgate total. In these 5 areas dentists check. This check up . So good. Go pro with crest prohealth advanced. Moms right. Again good morning. Its 8 00 a. M. At disney headquarters in burbank, california. Squawk alley is live. Happy monday. Kayla tausche is live from the Cannes Lions International Film Festival in france. Here for the hour, kelly evans. Not in front of the ocean, though. Beautiful shot. Joining us re code managing editor and cofounder of confide. Our top story this morning, a rally under way on wall street on news of british exit from the