Japan, marginally lower, korea marginally higher. Overall trading, youll see right now looks like things are looking up across the board. Dax and cac up by 1 . Take a look at the price of crude oil. Last week, crude oil was down by 2. 50. This morning, around 36. 76. Andrew. Weve got a cub ouple of bi news stories. Alaska air officially going to buy virgin and they beat out jetblue. Well talk more about this transaction throughout the rest of the show. Its a big price war. Its a loss for jetblue. Questions about the brand which well get to. Whether alaska air whether it works if you will with virgin. Also, questions about alaska air, people thought alaska air was a takeover target by delta. Does this make them more likely to get bought out or less. Nonetheless, well talk about those issues. Its a 57 a share deal. In the meantime, things keep getting worse for bill ackman. The billionaire investor, Pershing Square lost 7 last month. And continuing to tumble after cutting its financial forecast. That firm also said it could face a default if it fails to file its annual report by the end of this month. That leaves Pershing Square with a 25 loss for the year according to reports. Listen up, business travelers, a fire overnight at newarks liberty airport forced an evacuation of terminal b. It rekindled a short time later and forced a second evacuation. Its unclear whether it will be ventilated in time for the morning rush this a. M. Thats close to home. It is close to home. So is the amtrak in philly running into somehow, on the tracks people in the back well, amtrak has a 20point plan, any time something goes wrong with the tracks. Those 20 points werent followed. Some stocks to watch, today, tesla says that orders for that newer lower priced model, the model 3shgs, electric sedan top 270,000. For each car delivered that would mean 10 billion for tesla. The model s is expected to come out. Thats a lot of cars by end of 2017. So theres a little bit of skepticism that they can ramp up to that. And the consumer demand is kind of amazing. That that many people would actually put money down. Its a really cool looking car. And its you know, its 43,000 probably what youd have sot to spend. That totally puts it in an affordable range. A lot of people think its green to have an electric car. I think people like it because its safe. 70 of electricity comes from the car, so you got to charge it. And putting money down for one, too. Yeah. Well, its a cool looking car. Suddenly its affordable. An update on the proposed merger between staples and office depot that everybody has been waiting for. I have trouble going to sleep last night wondering would this be the day. According to rt althoughs staples has offered to freeze prices for three years to win Regulatory Approval for the 6. 34 billion takeover of its rival. And time inc. Is said to be considering teaming up with a private equity firm on a bid for yahoo s core internet assets. The potential move comes as time looks to survive. And maybe boost its digital business. You know, dont speak too early, you know both of them theyre not here anymore. They moved downtown to save money. They did . Theyre all downtown. But time life is in this building. Its the time life building. Theyre not there anymore. The Security Group is even dark inside. Theyre downtown. We have another big story to talk about. This ones a fascinating one. Anonymous leak nowsch more than 11 million documents from a panamabased law firm has a lot of people talking. Eamon javers has the story. This is massive just breaking around the world. Its already being compared to the Edward Snowden case and the 2010 wikileaks case. Theyre calling it the Panama Papers incident. More than 11 million documents have been leaked to a german newspaper that then cooperated with an International Consortium of investigative data. It creates offshore companies for clients around the world. The law firm also operates in different jurisdictions around the world. Reports show that 12 current or former World Leaders maintained offshore Shell Companies in that data that was released. Vladimir putins name does not appear in the data but the data does detail holdings of his Close Friends and also 12 other World Leaders around the world. Heres a statement from the law firm reacting to the news that broke yesterday saying we have not once in nearly 40 years of operation be charged with criminal wrongdoing. Were proud of the work that we do, notwithstanding recent and willful attempts by some to mischaracterize it. Guys theres an awful lot to chew over in this case. Were going to hear details about this law firm and who the clients were. One of the Big Questions is, will american maims surface. And another big question is the international who done it. Who was it that leaked this. No information if it was a disgruntled insider or hacker or some person who had access to this data. Theyve been komg over it for months now and starting to see the story around the world, guys. I was go to thank him but ask eamon a question. I have some questions. I thought of you immediately. You didnt see my name on the list. It said all one percenters i was listed i was listed just before, you know, before you got your story all together here, have you heard of that law firm before . I have not heard of that law firm. No. You have no offshore dealings whatsoever . I cant speak to it. Have you given money to people that might be involved with this for your own do you got an arms length transaction. Im serious, youre connected, youre in new york, youre a one percenter. No, no. I believe you. I believe you. I believe him, too. One of the fascinating things about this story, youre learning, youre getting an inside glimpse into how this thing actually operates. And what this firm would allegedly would do is allegedly set up boards of directors, nominees, people listed as the beneficiary owners of these Shell Companies. Theyd actually go out and hire these people and then put them to work according to the reports ive seen. The elaborate rituals that go into setting up these offshore entities and making them look real, or realish. Its not necessarily against the law. A Shell Company is not necessarily an illegal thing. Depending on where the money came from. But talking about political names. Are there other wall street fames involved we havent seen yet . I have not seen any. Were scouring this last night to see which americans. Ive only seen one bbc report which mentions a person in the United States. So were going to look very carefully to figure this out. Its not me. Yeah, i heard that. Once again, so, definitely not. Can you tell us who the person is . I dont want to use that name because we havent had a chance to run down that report yet. Is it in a bread basket no, not necessarily you necessarily heard of. Not a household name at all. One of the things thats interesting to me is why arent we seeing americans in the first wave of disclosures here . And is there more to come. A lot of folks i talked to said they expect there will be american names to come out of this. Do you talk to a lot of people in the Money Laundering world . I do. I spent a lot of time investigating the swiss bankers. Putin, 2 billion, that might be an account to pay for the fees for some of his others. Whoever it was who leaked this, to leak that kind of detail about Vladimir Putins close circle takes a certain amount of physical courage, right . In this day and age, we know all sort of untoward things happen around the world. To put that information out there on the world stage say brave thing. And i thing a lot of people are going to want to know who this person was and what their motive was for doing it. Poked in the rear with a poison umbrella if you dont watch out. Yeah. Serious stuff. Thank you, eamon. You are welcome. If you were here, id hug you since its hug a newsperson day apparently. I dont know if you knew that. We just had the story last week its like every day is like 20 National Something or other i was going to say some days are better than others. Fun get something hugs. I dont really like it from sandy. Hey, well take it where we can get it. Lets check on the markets this morning. The futures, which i was kind of surprised that the futures were higher, because oil, when i first saw it, it was down. And we had a pretty good week last week. But continuing, friday was down all morning long in the premarket. And then closed up triple digits all said and done after that jobs report. Theres now, you know, the lead story in the journal, people are suddenly betting on the depreciating dollar. Thats whiy the market theye probably right. We now know that janet yellen the tenyear still not just below 2 but 1. 8 again. The dollar is at 1. 14. 1. 1. 135. One of the stories in the wall street journal ten points. Investors betting on the depreciating dollar suddenly. And we watched it already depreciate. We did. Right. Exactly. After saying it was going to be strong, watching it decline 10 . Gold up. Factors in that story as well. Thats kind of rolled over, too. Since the belgium terrorist attack. For more on the markets, david kelley joins us from jpmorgan funds. And Richard Steinberg at steinberg global asset manager. Gentlemen, welcome to both of you. Good morning. Lets Start Talking first what we heard from donald trump over the weekend. Hes worried that a recession is coming. A major recession. Didnt give a time frame on but he did say stocks are a lousy place to be right now. Richard, what do you think about that . Im concerned but im not worried. Im always the valuation guy. Right now, weve been the last five or six weeks youve got earnings estimates coming down, prices coming up. Usually that gap is not good. Im not worried about a major recession. Dave and i were talking if the green room if the dollar does kind of even level here on the weaker side, even though earnings have come down so much in the first quarter, you may not be getting as Much Negative earnings or excuses of revenues and earnings from the dollar. I think with a 2100 target on the s p, we need a break and a rest before we move back up. What about you, david, recent sto the reason stocks have come first of all, this is an interview in which that president ial candidate also said hes going to pay you have the National Debt in years. Lets focus, the reality is were not even close to a recession in the first quarter. This american economy, its like a tortoise when you look at the industrials but you shouldnt. You look at aggregate amounts. That will tell you where the economy is. Whenever theres a weak gdp in the first quarter, consumption looks fine, and the economy thing about earnings, theres a lot of weakness particularly because of oil late last year and early this year. Bit second half of this year if oil doesnt go down and the dollar doesnt go up youre going to get a big bounce in earnings. The earnings for in 2016, the second half of this year looking good. When you hear Something Like that, does what make you think that strength for the market is coming in the second half of the year . Well the comps will start to get much better, but the second half, the problem is, theres a lot of space between the next, you know, three or four months, through the tough may period, june period, until that happens. Usually what happens by june, people start to focus on 2017. Thats, for the last couple years, because the economy has drifted along and we were getting along kind of the ghost of 2008, it didnt happen. This year is the year in which i think that people may start to focus on 2017 earnings. Right now, were 121 for this year. But estimates are low 130s. If you assume that the fed stays low like were talking about, you could start to see people get some but you sound cautious to me. Youre telling people to not necessarily get in here . We have higher than normal cash levels. And with new cash coming in, wed rather missed the 1 or 2 that we think it is in the short run. Well likely to see a 5 or 6 healthy pullback. Whats supposed to happen thats going to pull it back . Well, were going to have a lost earnings. In the next three or four weeks . The next three or four weeks, a big ideal of whether or not their actually growth coming back. I think the problem with sitting on the sidelines or being cautious here is that you are paying so much for it. Weve got this sort of reality rift between the actual data and the Central Banks who are extraordinarily dovish. Because of that youve got a fund rate, 2. 3. Theyre paying 2 real just to sit on the sidelines. That is where you just destroy the entire market outlook. Because its very expensive to do nothing when youre paying for the privilege in real terms. You would be saying go ahead and jump in there . Yeah, id say, be fully invested. I think because the Central Banks have got this extraordinary policy around the world, i think the danger in fixed income is not what it should be, given the state of the economy. I think there will be investment in a balanced way. But i just wouldnt be long cash, actually paying so much in terms for the privilege. Gentlemen, thank you both for being here today. Thank you. Coming up, hug a newsman or newswoman. Also gop frontrunner donald trump getting backlash for saying the u. S. Is on the verge of a recession. We just talked about it. Bernie sanders and Hillary Clinton fighting for votes in wisconsin, sparring over dates for their debate. Ben white is here to break down the political headlines. Were back if a moment. The first stock index musiwas createdoughout over 100 years ago as a benchmark for average. Yet many people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. Frank abagnale. Convicted felon and con man. That was a long time ago. You know, they made a movie about it. You were shown to be quite skilled at fraud. Times change. Now i help catch the bad guys. Me too. I help banks detect fraud by applying cognitive analytics to public financial records and social media. So if somebody said, catch me if you can. . We can. Lets do a sequel. It could be a buddy movie. I would like to have a buddy. 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. Welcome ba back to squawk box. Alaska air has announced a deal to buy rival Virgin America. 2. 6 billion. Alaska air beating out jetblue which was also interested in buying virgin air. We should tell you the two ceos of those airlines, david cush and brad tilden will be joining us 7 00 eastern time. We should tell you, by the way, talking about the brands, theyre going to keep both brand it s. It says maybe over time, theyll leave it open to see whats going to happen. We should also tell you in Global Markets, bats has announced ipo. 11 million shares 17 to 19 per share. The prior attempt in 2012 unsuccessful due to technology problems. Joe. Time for a round of todays top political news. Donald trump predicting a ginormous u. S. Assessment, banning trump and cruz campaigns working to keep kasich off the ballot, after the Republican Convention democrats sparring over dates. A day ahead of wisconsin. Ben white, chief Political Correspondent as well as what chief economic correspondent. When did you become a contributor . 2 1 2 years. I cant tell you how lucky you are. How lucky we are. Wisconsin right now, is there a way for him for make up, ten points making up he was with maureen dowd, and another one, chris wallace, too. Didnt he, and it didnt go that badly either. And kind of walked back somewhat from stuff in the last two years. Right. Its not a position to be in the day before the primary where youre walking back, particularly on the heels of hurting himself with women voters. The short answer to your question is, can trump make up the tenpoint gap to cruz in wisconsin. I dont think he can. I was just in wisconsin i spent some time tlorreporting there o the last few days. A lot of business folks and the establishment obviously getting behind cruz. And this weekend, on the wall street journal predicting this ginormous as you call it recession. I think cruz wins it and resets the race. And you watch David Stockman or any commercials on cable about the coming coming crisis. Yeah, blah, blah, blah. 19 trillion is a lot. It is. But whats unclear the unfunded liabilities of medicare and Social Security of ten times i dont know if its ten times five or six times as big as that. And he says hes not going to do anything with it. This is the problem with the entire interview that he did. He said he wants to pay off the entire 19 trillion debt in eight years by also cutting taxes by 10 trillion over ten years. I dont know how you do that without completely eliminating Social Security, medicare. You cant do it. Things are not going particularly well for trump. A lot of his comments on the economy didnt make sense. These are voters thinking sthigs the guy we want to entrust with the economy. Do you think thats who read that article that didnt come with the preconceived notion i think it filters through ultimately to the electric trort. My question is how often do you see a major candidate for president predicting a major recession for the United States and saying is that the tommy is about to c