Transcripts For CNBC Squawk Box 20140714 : vimarsana.com

CNBC Squawk Box July 14, 2014

Consumer relief. And the story in the times are both talking about benghazi and that sort of led to a different settlement. Did you see this . No, i saw jon voight talking about this. Can we build some roads with this . I dont know, how are we going to build roads . Both parties believe we need to raise the party on gas leap. Didnt we collect like 50 billion . We are collecting a lot of money. Where is all the money going, do we know . Thats what im asking. Get some bridges the tax thing. Its the whole tax thing on whether we should lower taxes or higher taxes for the roads. Why wcant we use the 50 billion that we just collected . I dont know how it works. What is the department of justice going to do with it . I think they are going to give some of it back or something. Maybe a new Computer System at the i. R. S. Would be good. That might help. Maybe the cloud. Tell me about what does benghazi have to do with citigroup . So they were about to settle at a different price. Yeah. And then benghazi happened and the Justice Department said we cant even talk to you right now. We are in the middle of this thing. We are in the middle of the talking point for benghazi about the movie. Thats how they came to the 7 billion. Anyway, a flood of Quarter Results are said to hit the tape in the coming days including a number of major tech companies. Of the ten s p sector, the tech sector has the highest projected growth earnings rate at 12. 3 . Meantime, financials have the worst earnings forecast with a decline of 3. 5 from a year ago. From earnings to the economy, fed chairman janet yellen is delivering the Humphrey Hawkins testimony. They will listen for hints on when the central bank will begin to tighten. They released last week the buys. And also we are talking about what is in the papers. Get a copy of the new yorker today with monday morning in a minute. But theres the first real long interview with janet yellen in a long time and well take little pieces away from that. The humphrey haw kkins tuesd and wednesday is delivering i dont know if jack lew thats what youre going to hang on . He may not say that much. Stan druckenmiller will be on, chris christie. Carl icahn will be on. And we have a mystery guest. Right. Toward the end of the day at 5 15. Youre not that excited about this one. No, im not. Do you know who mr. Guest is . I do. Hes not a mystery to you. Its not. Its a mystery to me. And Whiting Company is buying kodiak to become the largest producer in north dakotas shell. And aecom company is acquiring urs for 56. 31 a share in cash totaling 4 billion. A report on friday that urs had talked with rivals and buyout firms about a potential sale. The company is under pressure from activist Jana Partners to op enhance shareholders. Its a german company. Anyway, another more tax dollars are headed there. And more tax dollars are headed to germany to build a soccer team. They dont need the money, apparently. Who is the sub, by the way . And shire is ready to recommend a new 53 billion takeover from abbvie. The two are in detailed talks. And chocolate maker lindt is buying russell stover. The price is not disclosed but this will make lindt the number three manufacturer in north america. You know, i just took my pen and i barely i touched it ow, the tip, oh oh oh soccer, ive seen too much soccer. Ive seen too much. Im giving you a yellow card on that. Theres a lot of flopping, theres no question. Its still a beautiful sport. It somehow started sometime where you were rewarded for faking an injury. And it got to the point where everybody if you dont fake, you will never have anything happen. So no matter what, im watching and they do it in the replay. And seriously, i see the toe of one guys foot barely touch the toe of another guys foot and he falls down. And they are in agony. They show up for about three our four minutes and go to something else. And then i see the same guy, they never show him get up but the same guy tears by going by like nothing is wrong. This is one of the things, where did i read it . This is it now, the glow of it and it is finally going to come here and be just as popular. You will read that every four years. As long as they stay with the faking think of football. They have to score a few more goals. Do you remember when joe thiseman and his leg split in two . And he moaned and groaned and had less agony than your average soccer guy. I mean he was a true hero. It is beautiful, i watched all of it. Okay, all right. It takes a village, i know you think that. But this is part of the europeanization of america that youre afraid of . No, but im just saying i watch how excited the crowds are and everything. And if they could visit and see some real sports, see some college ncaa hoops and watch a couple of those games hold on. Thats like acting central. More in the nba, though. Im talking about the excitement of march madness. I know, but in terms of the s. A. G. Awards these guys get for their dramatic acting. Faking is not unique to soccer. Oh, please. If theres anything soccer does great its that. But really, i waited three hours. I watched the previous game, too, where argentina beat it is all mush now, but i watched a lot of 00 games toward the end. So we finally did get a goal. And everybodys really excited. You watch the crowds. Its like they wait a long time for that. I think if they were exposed to a sport where there was stuff happening. It happened the entire time i think that when i took the kids to the pool i went running and came back and didnt mess a thing. I went and did some yard work and didnt miss a thing. I saw all three of the great goals. The australian goal with a 90yard pass. And i saw the columbia goal. They are good. Germany got seven of them against brazil. If you can watch soccer, you can watch the first month of Major League Baseball and not be bored. And all of Janet Yellens testimony to the house and senate and not get bored. You are here. You look like a Soccer Player now. Thank you. The one thing they have going for them is the demos. Those guys are all handsome and happening, are they not . Across the board. All of them. And they are very fashion forward, too. They look good. Are we okay with the germans winning . They are whipping everything now. They have been borrowing money. They have low employment. They are kicking our spies out and still making great automobiles. I thought they imposed the argentinians most of the game and then they kicked them germany is not purely socialist but we are not wanting a purely socialist economy to win anyway. You should be able to pay off some of your Foreign Debts if you are going to win a soccer game. What a beautiful country brazil is, isnt it . Beautiful. They have some of the sets for espn that was not a hardship assignment if you are an espn anchor. Should we officially talk about him . We are joined now with more from ben after his sports analysis. Im happy to keep talking sports. We can talk sports but you put together your money morning this morning leading with two things. First of all the yellen piece in the new yorker that i mentioned earlier. Is there anything valuable . Theres insights into how she views financial regulation. She obviously takes the view that for a long time we have trusted banks to regulate more than we should. She wants more regulation. But theres nothing r revelatory. You get to know her. Did you get your subscription to the new yorker . I have a subscription to something called the next issue which is like the netflix magazine. I get guns and gardens. Thats an odd mix. Not really. Not in the south its not. And have you seen that article over the what was that article about . Just about having to do with summer barbecuing and things. I just i saw that article, you saw she sat down for a series of interviews. And this is her first opening up to a journalist. I personally wish that would have been me. What do you think of the qe . They are still slapping the labor market and believes theres more room for the fed to run with easing monetary policies. Lets move on to another issue. Xm bank, what is going to happen here . I think it will get extended and will probably get extended in a continuing revolution. The government has to get funding past september 30th and it will come down to the last minute for that. Democrats said they will tack on xm to that and dare democrats to knock it down. Xm doesnt cost anything . It turned a profit of a billion last year for treasury. Joe, are you on board with xn. The journal has a piece that you need to listen to. The journal now has a piece that says boeing does not need the xm bank to survive. They would argue that airbus gets all that support from from the far right field. And thats the Koch Brothers who feel that way and spend a lot of money with republicans. We have a big xm guy and i dont follow him on twitter but saw in retweets just captivating this. Whether it will get extended or not, i think it will. It does lay bear to the division between the Republican Party establishment and the roundtable chamber folks who want it to be extended and the tea party. I dont think it is crony capitalism anymore than other nations that support their capitalism. Take it away from boeing and airbus has a huge i think i want to be supportive of the xm bank, dont think. Liberals are supportive of it. But what about you . Where are you . It is like youre probusiness and you should be supportive of it. Unless you are profree market. Im procapitalism. I am interested on your views, joe. I dont have a far right on why it is crony capitalism. If airbus has how many countries are represented . Like three of them . And they are also their individual manufacturers in all three of the countries are going to get support. The fact of the matter is 37 billion or whatever in lope guarantees and loans it made last year, a lot of it goes to small business. A lot goes to boeing but these are mom and pops. They say it goes to rich i think they are worried about the dubai airlines. They buy it at a discount. We were talking about the treasury, this settlement that they will have with the benghazi thing and all this, where does the money really going . Its going to the Justice Department, a lot of it. What does the Justice Department actually do . I would hope that they would somehow get it back to the victims who bought these securities. Jp momorganjpmorgans settle lot of money now. Its a great piece to work on throughout the course of the day. How much of the 7 billion goes directly to the justice . Its in the piece that tells you a number. 4 billion is not in cash. So the rest is in cash. Right. So 3 billion in cash. Theres 3 billion in cash. Thats a lot of cash. And he wants to do highways with it. The Highway Trust Fund is another big issue in washington. Thats about to go bust. Take that money and then you dont have to do the ridiculous pension smoothing. This whole xm thing almost reminds me of lets all sit and read the papers. Thats what we are doing this morning. It just reminds me of the defeat of cantor and the s p 500, that was a big setback for every company in the s p 500 because he was probusiness. The far right libertarian wing of the Republican Party wasnt enamered with cap nada. The journal says in other words the private economy is ready, willing and able to provide trade financing for foreign customers to buy boeing jets. That boeing would be just fine without it. That may be true. I dont know if thats true. Thats an assertion. The republicans should start if they are truly free marketers, they should start embracing the free market in this case, too. Thats the argument. Okay. But say you were in North Carolina with a business where you make pickles and want to sell them to consumers you heard about my costco jar of pickles . Yeah. But you want to sell them to somebody in germany. Now you are referencing germany again. Or anywhere in europe. The customer on the end, are they getting the market to support share imports of u. S. Exports supported by the xm bank . You can make the case from boeing that there will be free Market Solution to support that. Im not sure you can make that case for small to midsized businesses in the u. S. If you are probusiness, you have to be supportive of the xm bank. Why would you want to unilaterally disarm . Im with the chamber. The question i have on it is it does seem like unilateral disarmament if the u. S. Would get out of the export finance business. Other nations are not going to follow suit. They want us to unilaterally set examples for the world and other respects. You do that here yup laterally. And just because the euro socialists are supporting air s airbus, i dont know if that will hurt jobs of course it will hurt jobs. Because i dont know it would. Any time you see or hear that the Government Action is needed to support the jobs, i dont believe thats the case. If you are for taking all the money from the settlement. That never does support you. Building roads and bridges makes perfect sense. But if the government spends the money on roads and bridges, thats employment that will follow from that. So the idea the government doesnt support or create jobs is not true because it does. You may not like the jobs or think these are great jobs but they are jobs nonetheless. I guess that the new york state other than illinois and the top states for business and the public to see. Kansas had some tax cuts and they found something a problem in kansas but said it is clear that all states need to use every tool of government to nurture growth. And that these tools require money. So that was the conclusion. The problem is the kansas cap is where they were to the point where they didnt have enough money yet. And there were a few things the economy needed to do. Seven is a good number, not 50. Are you leaving . I guess i am. You can hang out if you want. I feel sort of odd sitting in beckys seat over here. Im more used toll its okay. You may do whatever you want. You have the darker shirt and the lighter stripes. It was dark. I dont like to wake my wife getting ready for the show. As much as i want to look my best, it is early. So she didnt cook you anything this morning . No. You havent gotten things quite squared away in the white household yet. We have a separation of church and state. And authorities. The morning is also a lot of people think that at night its a good time for good conversation and catching up on thats what i was talking about. At 3 30 a. M. You are very aware in the morning, ready and raring to go. I have read these things but never experienced it, clearly. Ben white, thank you. The former air show is taking off. Im telling you. Phil la brebeau is there with ae of guests. Join us at 6 30 a. M. Eastern time as im going to press the right buttons. And earnings season is kicking off with citigroup today and tomorrow jpmorgan and gold man sa Goldman Sachs. And on wednesday well have stan druckenmiller, one of the greatest investors live. Well have more squawk in just a moment. At every ford dealership, youll find the works its a complete checkup of the services your vehicle needs. So prepare your car for any road trip by taking it to an expert ford technician. Because no matter your destination good maintenance helps you save at the pump. Get our multipoint inspection with a Synthetic Blend Oil change, tire rotation, Brake Inspection and more for 29. 95 or less. Get a complete vehicle checkup only at your ford dealer. All right. We are taking a look at what exactly is happening in the northeast today. We have quite a lot of moisture in place. New york city, you could be seeing some thunderstorms. Lets break down exactly what is happening in these severe ingredients because thats going to be a big concern for us. Lots of moisture just trucking out of the south. This cold front, this is the one bringing that polar plunge. All that cool air to the midwest. And eventually into the northeast. But first we need to keep an eye on the front because thats where well be watching for the potential of Severe Weather today. In fact, new york city, the capitol, you have a risk of seeing damaging winds, hail or even an isolated tornado as we go throughout the day today, especially through the evening. Lexington through paducah and memphis, we have the risk as well carrying on through arkansas. So we have a large swath of storms here. Lets break down the timing of exactly what to and tis pate. This morning most of the rain is through kentucky and west virginia. But look what happens getting into your afternoon. Whenever youre headed home from the commute, watch the storm approach philadelphia and d. C. Where we could see again the very gusty winds that could be damaging. And theres that potential for an isolated tornado. Its a small one but it is at least in the forecast. Heres what we are looking at overnight. Look at new york city up next as we go throughout the evening hours with dinner plans tonight. Make sure to stay on top of the forecast so youre prepared for the storms that we could potentially see. And were going to be watching this through tomorrow as well, joe. Great. Kate, thank you. We appreciate that. Have you been on squawk before, kate . I dont think i have been on squawk before. Im a newbie. A lifelong dream, basically . Clearly. Yes, a lifelong dream established. I was not here working at the Weather Channel as a meteorologist. I wanted to be on squawk. Run with the bulls, appear on squawk box. I got it. Thank you. Its downhill from here, folks. Downhill. Great to see you again. You cant go back to the farm now. A big wave of Quarterly Results this week. What should investors expect . Joining us is the director and head of the global market. Financial, citigroup, what to expect . Goldman sachs, a tough environment, huh . Its a tough environment. No trade and volatility. Thats part of it. Youll have some of the settlement issues impact the earnings. What do they do in interest what do they do with the Bond Division . Its tough. Its tough. Thats absolutely right. We just put out a piece about that. If you take a look at, for example, the cycle right now where people should be investing, you have the largest demographic in history. The boomers are trying to find yield and are forced to stay in equities because they cant live off of what they get in fixed income mark

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