We are going be talking about it literally almost every 15 minutes over the next thee hours. Keep your eyes on attention on inflation. And the june Consumer Price index, economists say headline cpi likely rose 0. 3 . Also worth watching, existing home sales for june coming out at 10 00 a. M. Eastern time and sales expected to rise by 2. 2 there. A dip from jumps that we had seen the previous month. Joseph kernen, i see you staring at a screen. What do you see . Dupont. Its a couple of cents shy. 11. 17 was the estimate. Its posting 1. 15, but the revenue number is above, which will be interesting if they miss on no, its operating earnings of 1. 17. So right in line. Operating earnings, 1. 17. So in line with expectations. And the revenue number is slightly above. We were looking for 9. 7852. And i think we got above that. Maybe that is that Second Quarter sales . 9. 71. So maybe its in line with expectations. The dividend has been no, revenue is 10. 11. So sales, they obviously have something other than sales. Revenue slightly above. And then weve got different reasons. We should point out the company did raise its dividend from 47 cents a quarter from 45 cents. It was yielding 2. 7 cents. So two cents on 45, thats not even thats sanl digit increase, but i guess the shareholders will take it. Its the third time in like two years. Dupont, the second half adjusted earnings, 1. 25 to 1. 35. And the estimate is 60 plus 66, so what is that . Thats 1. 36. So maybe at the low end of what were looking for. Fiscal year, 4 to 410 and 403. Keth nelson at bay . We just saw him at delivering alp alpha. The company is saying they were impacted by the agricultural sector, that earnings were declined 105 million, down 111 on lower corn seed volume, lower north american herbacide. I dont like if you put an h there, id say it. Otherwise, dont put it there. Do you call him Herb Greenberg . No. Higher seed inventory writedowns, as well. They also saw a decline in electronics and communications operating. I think thats probably a real quote were seeing there. So that is after all was said and done, thats what it looks like. Thats where we landed. Exactly. I dont think a whole lot of people are landing there. Trading in dupont, but a few people, obviously, right now. Thats number one. Did you know that 6,000 of what percent of the dow is that . You know what . Just like you werent watching me when i wasnt watching punish i dont know. And you cant figure it out . No, im fought going to do math at this hour. Six, four, 21. Its a fifth. It is a fifth. Thats 30. What percentage is that . Its a fifth. 20 . I said that out there. You didnt have to listen to me to know its 20 . Oh, i know. Sorry. Apple is reportedly planning on launching the latest version of its iphone with a significantly larger screen. The wall street journal says the company is asking supplierses to make between 70 and the company is asking suppliers to make between 80 million and 80 units of tweess with a 4. 5 inch and 3. 5 inch display by the end of the yoer. Im excited for that. I am, too. The keyboard is killing me. Thank you. Its going to change everything. I just want to put it out there. It matters. It matters so much. You do not understand. What are you watching on your iphone . I want to put the prediction out there. This is going to change the value of apple. Its going to put them back in a whole new place. This is going to be mind blowing. Its that big. Its that important. We cant trust you on what you i dont like beats. You dont like the beats. No. Whats the wrob . Excuse me . Theyre great. Texas instruments reporting better than expected revenues. That was funny. Go ahead. I like its Texas Instruments is telling investors to expect higher Third Quarter revenue. What . On a white shirt. You have to be very careful. You can put on your lobster salad. The old man looks good in among the drivers for Texas Instruments, improved demand for chips using cars, Industrial Equipment and communications here. Customers appear the be holding lean inventory of chippes and that should help maintain demand. Chipotle results beating the streets. The burrito chain raised prices and still attracted more diners. Samestory sales boost 12 . Shares rising on the news. 10 gains for chipotle to tell you about earnings or not, but were seal. Look at the stock price. Youre talking about the oneyear . Yeah. Its below 100. Its now 649. But it should be the growth industry of the you like screens on your you know, on your electronics. For me, its mexican food. Its great. The worst mexican food is great. Look at that. 2010. Burritos are my favorite thing in the whole wide world. Actually, thats right. Youre the one that likes mexican food. Theres another food scandal sweeping china. Mcdonalds and kfc apologized to chinese customers have a report that a food supplier had given the chains now were getting word that the scandal is spreading fast, dragging in starbucks, burger king they tell that not a lot. Chicken . Yeah. Or maybe some of those weird breakfast sandwiches. But its dragged in burger king, papa johns and others, the dhans pulling products with meat from the supplier and mcdonalds saying some tainted meats was used in burgers in japan because in japan . Mcnuggets are already for i eat them once in a while, my son eats them, but theyre questionable. Are they really chicken . Theyre chicken, but have you looked at a chicken . Yeah, i have. Fy bassomitic. The whole chicken goes into a blender. And thats what comes out . No, but my fear piques. The one thing to say about china, the issue is we went from such a pleasant thing, and that is mexican food, to not only chicken mcnuggets, but past their due date. On meat that was used in china. On top of Everything Else. Im not surprised to see this spread like wildfire to other companies. Because the media there is not necessarily stuff that you can believe, right . Usually its controlled or deeply influenced by the government. You can see this news spread like wildfire on the internet even if its not true or even if its not that big of a deal. Im spoiled with how substantial all of our Food Supply Chain is in this country. Anywhere, i can remember being in portugal. You go into the normal butcher shop or meat section of the small sort of whatever you call them and its still the smell is a little stronger. Things that are hanging that look like and the Chinese Government has made a very big decision that te finally going to do to agricultural what they did to manufacturing for the last 30 years. Its mostly mom and pop farming in china, which means the supply contain can be sold. Ooifgd private equity people telling me 80 of everything you you eat in china, its dirty. Pigs in a river, 30,000 they have supply chain issues. They have to deal with it. Youre going to get i think weve been discussing geopolitical news, have we not . This is probably more weighty and a little bit more potentially more weighty. Were going to talk about geopolitical news right now. European minutesters are meeting to discuss further sangs against russia. Hadley gamble is standing by with more. Hadley. Andrew, the buzz here, two words. Arms embargo. As we were coming into this meeting, there was a bigger question about how effective the eu can be of 28 member states, 28 separate agendas and no appetite for further economic sanctions. Those sanctions have hit germany particularly hard, but there seems to be growing concern about western companies supplying russia with weapons because we dont know where theyre going to go and are they going to enup in the hand of separatists. So the buzz here is all about the weapons, who has them and what do we here. I have tof 4 yesterday on the streets of donesk. They come in increasing numbers across the border in spite of our commitments and in spite of our demands. Now, one country that is notably silent on this is france. The French Foreign minister earlier arriving here in brussels, taking no questions in english, only talking about the situation in the middle east and the situation in gaza. And the reason wind that could be the fact that the french have a 1. 6 billion deal with russia for two warships. President hollande says hes going to go ahead with at least one delivery in the fall. There could a again of moo the space will get involved. Well just to have would it and see if the frefrt come. Heather, weve had a huge issue there. So frustrating, youre right. In this day and age you would think and whenever you try to you want to have a conversation, but you really cant have a conversation. Sometimes it happens with cell phones, have you noticed . Yes. And you see it come. Here is one person talking and you can see it coming. When we work overseas, we try to always figure out what is the fastest fath, always. Okay. Netflix surpassing 50 million subscribers. Quarterly earnings falling a penny short. Anthony, i shouldnt, but i muft ply the net number by four and look at what the Market Capital of the stock is and i always go, thats unbelievable, right . I dont know what it is this time, and theyre not going to make what they made this quarter. But its still incredibly rich in terms of valuations and its going very quickly. Some people, its not just about being able to access content. They actually have some they make their own content now. So theres a lot of exciting things about it. Is it worth what its selling for . I think netflix is a little bit like amazon in the sense that the domestic business is much more mature, its proven to be more profitable as the contribution margin approaches 30 in the u. S. And then internationally, their inve investing, so theyre initial losses, they talked about launching in france and germany. I think what im trying to do is value the domestic business, value some of the analyst businesses. But it is true whether it becomes more difficult to value net yix. Its difficult to look at it as the company invests. You cant use normal metrics on it. Then i was reading, making comments about the big merger, the media landscape. He goes, you know, the comcast Time Warner Cable just thats just we cant really deal with that because it affects netflix directly because its overloading all the pipes and they expect it to be free for them to overload everything and not have to pay anything. They also pander to the left that thinks Net Neutrality is like some god given right. It was from the Old Testament or something that youre entitled to, which youre not, because if we build the pipes, its like a normal free market. But then, so the fox 21st century fox, that acquisition, time warner, thats fine because theyre both big already. So hes a content guy. So hes against the distribution merger, but its fine with the content. Its so transparently obvious that hes talking his own book. Well, on the Net Neutrality issue they are heads in the sense that they believe very strong in that neutrality and their policy is they would like to see that merger blocked. They know what to do that. Supposedly. But it seems like they they know theyre not they cant sanity phi that kind of a deal. And there are some small incremental costs that have to do with that. But i understand what youre saying in terms of the policy. In terms of warner fox, they said these are powerful companies already. Basically, it did not continue a combination of those two. Really, you have to give them credit for negotiating directly with the producers. Thats his hedge there. So theres this issue of a netflix being hedged whether or not the outcome is comcast and time warner gouges netflix when theyre trying to sell them content because theres one less player. You do recognize, joe, and as you know, im not against this transaction, but i do realize which one . The comcast time warner deal. I want comcast in my own home so im selfish. You do know there is no free market in the context of the theres no free market anywhere, right . Its legitimately not a market sale. If im going to spend billions upgrading the pipes, im not going to just eat that. If youre going to take 60 of what ive built so theres no delay on downloading your stuff, youre going to pay for it. Joe, you have there is no market. We have netflix, which is the prime content. Whats that . You have netflix, which is supplying the contents. So in the media world, in the content is king type world, you charge the distributor, right . The content i have is the pricing power. It should be fine. In this world, why isnt netflix the content owner here that should be charging the guys . They are. And god bless them if they can. They should. I dont see how at 8, theyre sort of you know youre right. It is like 8. 99 a month or whatever it is. So theyre doing that to build their Subscriber Base globally. But in the meantime, it should cost more than that. The last time he tried to raise prices, it was a debacle a couple of years ago. I have two questions for you. The context of netflix and the context of price and value for hbo, there have been reports that inside fox 21st century fox, their valuing that company around 20 billion. This company, netflix, clearly valued at much more than that. Does that make sense to you . Is hbo too little or is netflix too much . I think its probably a little bit of netflix being fully valued. I think the opportunity is they can go direct and that gets a lot more exciting. Is that a code for overvalued . Is fully valued a code for can you speak english . Netflix trade is double the multiple. Have you noticed netflix is now selling their original programming, not just on netflix, but what appears to be on other networks. So if im a fios subscriber and i do not have netflix, i can pay to watch this . A content provider can set things on fire. Thats kind of you know, thats a benefit of owning the contents. There are other ways they can monetize those rights. So its sort of like their hedge in terms of dealing with the studios. This is another hedge in terms of dealing with the cable issue is they own that content. I literally just saw this. Theres an argument made about whats called reverse Net Neutrality. One day, netflix or google is going to say to comcast, actually, you know what . Unless you pay us directly, in addition to what were going to charge the customer, your customers cant have us. Well be running so much sports by then and or google is going to say what has google got . Youtube. I dont want to watch youtube. How about h you will you . How about that . Were not going to gouge ourselves. No, no, what happens when directv let the markets work. It says, you know what, actually . I know you have this content, but youre going to have to pay us in addition to what the conseamer is looking at. Can someone come in and build you say its not a free market. Can someone come in and build well, thats a problem. Its not just challenging economically. Do you want to get into that business, youre free to do that. In this country, youre free. Other than that, you dont want to pay it, dont pay it. Anthony, weve called everything here. Everything is fine. I still havent seen any of those netflix offerings, though. Can you do that . Theres a picture of her in there, too. Are her eyes on that . Who are you talking about . The picture on theres a picture of her in like all the right. No use with the eyes, its crazy. Crazy eyes. Before we go do you know what im talking about . I know who youre talking about. The malaysian Prime MinisterJust Announced they have control of the black boxes from flight mh17. They appear to be in good condition. Near not looking at a oh, the train has appeared i think its arrived in Eastern Ukraine, yes. Thanks. Coming up, when we come back, were going to continue a little bit of this debate around the media. Time warners board moving to prevent its shareholders from calling a special meeting. That company trying to prevent any quick move to approve a potential takeover by rupert murdoch. We have that story when we return. Welcome back to squawk box. Time warner playing defense. The media giant announcing a big change in its bylaws that move shareholders ability to call a special meeting. Joining us now with more insight is jeffrey jacob. He is a former attorney with the federal trade commission and with federal governance angle. We have jeff sonnenfeld, senior associate deal at yale school of management office, cnbc contributor. Let me start with you, jeff. From a Corporate Governance perspective, is what they just did okay with you . Yes. I think its really a great idea. It slows down some of the frenzy on of this deal. Basically, theres a provision that they had in there in their bylaws, these are bylaws, of course, which require annual reelection of shareholders. Everybody is up for reelection. They dont have any poison pill or that kind of stuff. So you can turn this over next june if need be. What this does is prevent any kind of preemptive panic misinformation that you can confuse people. Theres a lot of confusion out there, i think, actually among analysts when they talk about a 75 overlap of shareholders. Its important at this given time to realize the pace of those people with the 75 overlap is four to five times ownership of fox and not time warner. So basically, its 90 and a minority owner is trying to the terms for the majority of the ownership. Youve got succession issues on antitrust funds. I want to get to the other side. Jeffrey . Yeah . You put this in the category of best practices . Well, what happens frequently with hostile takeovers is there are blocking actions by the board. What it as gives them is the ability to try to negotiate a higher price from fox. Thats what they probably will intend to do. So from an antitrust perspective, this happens frequently and it really doesnt affect the authorities all that much in terms of their overview from that perspective. No, i hear you there. What im trying to understand is here is a situation where clearly the company has now blocked arguably the rights of certain shareholders. Not certain, all shareholders in this instance. Do you put that in the category of best practices . Well, the question is are they acting in a fiduciary duty towards the shareholders and are they trying to argue at a higher price . If it ends up in a court of law, that would be their argument. So as far as best practices are concerned, its a discretionary action. And theyve got a good supporting argument there, too, andrew. Take a look at the 25 compound ets vote. The price should be way higher than that. They can argue this is very much it tripled the stock price in this com