Transcripts For CNBC Squawk Box 20140616 : vimarsana.com

CNBC Squawk Box June 16, 2014

The gas business and mitsubishi would look into the turbines. And pipeline Williams Company is acquiring midstream for 6 billion. This will give them Master Limited partnership. Andrew, a lot of activity out there. That is. It was a crazy, busy weekend. To believe all those deals are happening. Plus well talk about the inversion step. This deal is different from the ones we have seen before in terms of why the Tax Implications are what they are. This is more about the money being abroad and not bringing it back. And well also talk now about other Corporate News because a rough sunday was had by target. A glitch in the retailers customer checkout systems ended up causing huge delays, long lines at some stores in five different states. And social media blew up everywhere with complaints of the backups. The company says the glitch is not related to a security issue, but nonetheless, if you have read the twitter feeds, you would think other things. Well, the global markets, meanwhile, continue to Pay Attention to whats happening in iraq and other places. Oil prices again called higher. And cnbcs chief International Correspondent michelle can russa cabrera is joining us from Northern Iraq. The oil prices are not going the way they are supposed to go based on maybe getting more supply, which was sort of the contrary view that you gave us last week. They are headed higher. Reporter yeah, theres still concern whether or not there will be disruptions in the south and consistently we see analysts say, theres no disruption coming from the south, but it remains to be seen just how far the militants can get. Can they get south of baghdad . They have taken another town overnight. Tal afar 50 miles west of mosul, 100 miles west of here. At the same time, the Iraqi Government says they are now fighting back. Theres video from the Iraq Defense Ministry they released showing aerial assaults on military positions north of baghdad. The bombings were said to have targeted radical sunni locations and vehicles in the city of mosul. And the video shows vehicles and small buildings exploding. This is Iraqi Television video. It is not possible to verify what they say. Theres a gruesome development overnight as the islamic militants in iraq and syria isis released photos showing them executing hundreds and hundreds of iraqi soldiers. Nbc news has not been able to independently verify these photos, but the Associated Press reports they have spoken to an iraqi Army Official who believes they are real in a tweet believed to be controlled by the militants, they say they have killed 1700 soldiers, but again impossible to verify. And of course, security in baghdad is very intense as they increase checkpoints there and as the u. S. Embassy begins moving out employees as the state department announced that they would do yesterday. We are in kyrgyzstan, the northeastern part of iraq. We are here because when middle east experts talk about the possible disintegration of iraq, they are talking about this here, kyrgyzstan, a semiautonomous area with its own court system and education system. And they have long wanted to be independent. When we talk to leaders here, they say, they say that they would very much like to stay a part of iraq but only under certain conditions. Conditions such as them being allowed to export oil, conditions such as baghdad getting its act together. And thus far neither one of those two things look apparent. So still the bigger question remains as to whether or not we are going to see iraq as we know it finally come apart as a result of whats happening here and the sunni shia fighting going on in the northwestern part of the country. What we are talking at over the next couple of days as we show you the Oil Facilities here in kyrgyzstan, one Government Official says by the end of next year they will have double production and be exporting 1 Million Barrels we are day. They are convinced they are going to do it despite the u. S. Not wanting them to do it and baghdad and the government of iraq not wanting them to do it. Back to you. Michelle, its hard to tell from here, but the scene behind you looks like a relatively normal situation, is that the case on the street with cars moving behind you . Reporter that is absolutely the case in kyrgyzstan. They have their own military. Which are very wellknown. Pesh merga are the ones that took over the city west of here when the military abandoned it. So they have their own military which has maintained stability and peace in the area when the rest of iraq has not been able to do so. And as you say, as you notice, they have got an economy. And its hard to tell whether it is mostly Foreign Investment because they have an investorfriendly policy here or whether it is a lot of spending by the government. I have not gotten clear answers on that, but certainly this is a very different place than baghdad and the rest of iraq for sure. All right. Reporter which is why they want to be independent. Michelle, thank you very much. Well check in with you later. Joining us is retired u. S. Army colonel jack jacobs, and chief correspondent john harwood. Colonel, i heard a report this morning suggesting if iraq were to fall apart completely it wouldnt happen in three neat pieces. There would be a much messier scenario, what do you think . It would be a lot of people killed, of course, because there are spillover areas with sun knsunni and shia and kurds, so there would be many people starving to death in camps and so on. I think this is all pointing toward exactly Something Like that. One of two things, its certainly going to be a civil war. And if its not now already, then i would say you can say already, but its going to be one that probably lasts six months to two years. So a lot of people killed. And one of two things happens at the end of it. Youll have these loose pieces where the people of polarized and are in areas that wont be any government except local government. Or in the alternative youll have a bloodthirsty decembspitee place. We are heard some of the areas are welcoming the insurgents coming in that are largely sunni, but then over the weekend it was suggested that within a couple of days they had started shooting people that they thought were not going along with things, that sets up very difficult islamic law. Do you think the sunnis are still welcoming the insurgents . They are just scared. These are terrorists. And so terrorize everybody in the way that you my point is normally an army wouldnt brag about slaughtering 1700 of the troops on the other side. I mean, they would make a pretense of taking pows and then treating them these guys want people so they are not an army but a bunch of terrorists. And also there are not a lot of them at the moment. No matter how bad the iraqi army is, they are larger in numbers and have better weapons and all the rest of that stuff. So if you really want the iraqis to melt away, the best way to do it is to if you are an iraqi soldier on the fence and would like to stay in the army and fight for things, but then you saw that, who is not going to drop their rifle and you just mentioned Something Else. I mean, we make the assumption that the iraqi army really wants to fight for almaliki. They dont. Hes a corrupt guy, hes bad news and everybody hates him except the people close around him. So the iraqi soldiers who would otherwise be fighting for iraq are not going to fight for almaliki and thats why they run away. Let me ask the question to the Administration Official that met with the white house yesterday said whatever air strike happens needs to be conditional on the political plan to heal the secretarian rifts. Is that even plausible to say aloud . They have been pressing as the Bush Administration did for nuri almaliki to provide a government that tried to heal some of the rifts and unify the country. He hasnt been interested in doing that. Is it possible that he could do that . I dont think anyone believes it. So then the question is, is it possible some other leader can come in and do that as opposed to what jack jacobs just said, which is some sort of blood think thirsty tyrant. I dont think anyone is optimistic that a good solution will be found, but for now the administration as an alternative to getting involved militarily is trying as a first step to push very hard for the government to do, to take some steps they have not taken before to try to take some of the edge off of the secretarian strife. Is there a way looking back, i dont think Saddam Hussein necessarily wanted to attack the United States as far as terrorists. Could another bloodthirsty despite get in there as his chief goal allowing terrorists to attack us . Yes. We could get another they will find somebody to control everybody through terror centrally organized from baghdad. Otherwise youll have terror we prefer that. Strategically we do. The most surprised guy in the world when we invaded iraq was Saddam Hussein. He said, wait a minute, im the guy holding off iran and youre trying to get rid of me . Thats another angle. He could be cooperating with iran. Thats another angle. We are asking around and talking to them about what to do in iran. Iran is offering to assist us in trying to save iraq, but i dont think its going to happen any time soon. And i think a messy battlefield where lots of innocent people get killed is the way its headed. Do you think almaliki being a bad guy is why the u. S. Is not getting involved or does the u. S. Not want the potential of boots on the ground. We dont have the political will to stay there to make iraq into a real country. So we decided we are not going we melee off some bombs there. We have to put special operations guys there on the ground to decide who to bomb. The president says no boots on the ground, but dont we need some advice. We are going to have them there soon. Did you see this essay tony blair wrote over the weekend . I saw the video but didnt see the essay. Hes suggesting it wasnt me, it wasnt all the things we did, he says its the people in power now who completely screwed this up and turned this backwards do. You agree with him . No, he has no idea what hes talking about. Like i said, the whole thing about iraq reminds me of the observation of bill cosby about the game of golf. He said, golf is a really stupid game. You put a ball on the ground, take a stick to hit it as far as you can as long as you can and then you chase after the ball. You had the ball. We had iraq. Saddam hussein had iraq. And as obnoxious as he was, he Department Control most of the area with a relatively independent kyrgyzstan and kept iran at bay. We had the ball and we let it go. You cant export, we now know, to places that cant handle it. President bush said everybody wants democracy. Well, not everybody wants democracy, and if they do, they are not willing to fight for it necessarily. We have had 240 years worth of experience and were relaxed about democracy, but nobody else does. Well see horrible things happen. Well probably see women not going to school anymore under sri law. If it were to be an islamist state. Where is the permit to live . They are shooting people at random in the streets. I understand the tension, but it is not lasting what they are trying to do. No. So what youve got is almaliki who is a crook but weak. Before Saddam Hussein was a crook but strong. But he has not let sunnis into power and not sharing money with them. It is not all about the oil but it is about oil and the revenues and actually having some sort of equitable distribution of power and the largeness in the world. Hes a crook and not doing it. John, what is next step for washington . I think the next step is to wait. I mean, one of the things the president did on friday was buy time. While he had his advisers assemble military options and they did see the advance of the militants slowed over the weekend. It gets tougher when you move from the sunni areas toward baghdad where youve got a lot denser population of shia to slow them down. I think its worth talking to allies and is worth trying to see whether some sort of diplomatic process can be put together, but as jack jacobs just said, this is a horrific mess. And i think there arent good answers and thats why the administration is going to be very slow to cross the line to revolve the United States military in some campaign. We did have someone suggest last week that this is the perfect opportunity. That the insurgents were out in the open. This is the one time you could have the option to use bombs. Well have a lot of other opportunities. We have intelligence capability to identify four nations of isis people. I mean, it is easy to see them when they are in groups. Just as john said, we have to make the decision where we are actually going to launch precision guided ammunitions that will require people in the intelligence and people in the air or on the ground in order to control the assets, but we can do it. You agree time is not of the essence. You cant slow things down to see where things are headed. No, unless you want to make sure that you wipe out isi sirks, which you wont be able to do. Time is not of the essence. People say we need to start bombing people everywhere. They dont know what they are talking about. Some of these guys are the same ones we were thinking about helping in syria, right . That is correct. Thats the other thing that sort of slipped by. We were talking about sending arms and ammunition, weapons, all kinds of support to people in syria because we really hated assad. And im not breaking my arm trying to pat putin on the back, but he would say, are you guys nuts . Do you know who the people are . We hate those guys. You will really rue the day you gave arms and ammunition to these guys to overthrow assad. These are the same guys. Is that a similar situation with Saddam Hussein . You want a powerful guy, even if hes a crook . It was harry truman that once said and was talking about nicaragua 100,000 years ago. Unfortunately i was already alive, which means it was a long time ago, and somebody was talking about something and said hes an s. O. B. And harry truman said, hes an s. O. B. But hes our s. O. B. Its not going to be pretty. Colonel jacobs, thank you for coming in. Coming ahead on squawk, Market Reaction under the situation in iraq. And later bill george will weigh in on the deal of the day. And in case you missed it last night, the santon Antonio Spurs beat the miami heat in just five games. And earlier in the day, Martin Kaymer he would not have gotten that. Martin kaymer captured the 114th u. S. Open shooting 9under par winning by eight shots. More on the big fathers day weekend and sports in the next half hour. First you get hit by psoriasis. And now you get hit again. This time by joint pain. Its a double whammy. It could Psoriatic Arthritis a chronic inflammatory disease that attacks your joints on the inside and your skin on the outside. If youve been hit by. Find out more about Psoriatic Arthritis. Take the symptom quiz at doublewhammy. Com and talk to your doctor. Comcast business sponsored this. Yep. Did you see the building . They are trying to change the name. It will be smaller and will have the peacock. Plus they are going to get a new, what is it called at the bottom of the tonight show, what are those things called . A marking. But it was so funny reading the academics that control what you get to put up there. Selfpreservation. They are like, you know, i didnt like it when they changed it from rca to ge. And if we go back to rca, i would be okay. But if it is ge, we might as well let comcast do it because we let ge. And we are not going back to rca. It is long gone. Why do they because they want nothing to change. It is not just that. I do understand not wanting things to change. You dont like to change either. Why would you have the panam building. Because i see flight attendants, i see actually, that was a i dont know if it is even that anymore. I think it is the metlife building. But metlife is in a different building. It is not as cosmo, right . It is very madmen. I think if the peacock goes up there it is better than ge. Sorry, guys, you sold us. Welcome back to squawk box. It is time for the executive edge. Starbucks is rolling out an Online College program for its workers. The coffee change is partnering with Arizona State university. Employees who work at least 20 hours a week will be able to earn an Online College degree from the school at a discounted rate. Starbucks will phase out its existing Tuition Reimbursement program. And that setup gave workers up to 1,000 a year for education at schools. Is this cheaper . They are going to save money at this, probably. Im going the opposite direction and am going to give them the benefit of the doubt. To me the way i read the program is this is the first time any major employer in this country has tried to educate its staff for free. So all you have to do is be there for two years. Then you get a discount. No, if you are a barista or better for two years, you get the education fully free. Its totally free. And Harold Schultz is quoted saying his view is, and it doesnt depend on you staying, you can leave. If you stay for two years so i can start and takeoff and finish my education somewhere else . Totally. He says, i think ill attract more talent and get better people. Its better for the country and the world. And i think potentially if this is done right, its business taking the issue into its own hands and changing things for the better. Now, its an online education. I dont know if thats as good as Something Else. Online education is developing pretty rapid

© 2025 Vimarsana