Government institutions but is connected and responsive to the every day concerns of our people. Theres no doubt that how a united europe works together can be improved. But look around the world at authoritarian governments and those that are ruled by fear and oppression. And there is no doubt that democracy is the most just and effective form of government ever created. [ applause ] and when i talk about democracy, i dont just mean elections. Because there are a number of countries where people get 70 , 80 of the vote but they control all the media. And the judiciary and Civil Society organizations and you have to be registered and are intimidated. I mean real democracy, the source we see here in europe and in the United States. So we have to be individuvigilae pillars of democracy. Not just elections but the rule of law as fair elections, a free press, vibrant Civil Societies where citizens can work for change. And we should be suspicious of those who claim to have interests of europe at heart and yet dont practice the very values that are essential to europe. That made freedom in europe so real. So yes, these are unsettling times. And when the future is uncertain, there seems to be an instinct in our human nature to withdraw to the security of our own tribe, our own sect, our own nationality. People who look like us. Sound like us. In todays world that is a false comfort. It pits people against one another because of what they look like, how they pray or who they love. And yet we know where that kind of twisted thinking can lead. It can lead to oppression. It can lead to segregation. In internment camps. In the United States we have long wrestled with questions of race and immigration and do to this day. And we still have a lot of work to do, but our progress allows somebody like me to now stand here as president of the United States. Thats because we committed ourselves to a large r ideal. One based on a creed, not a race, not a national outline, a set of principles, truths that we held to be selfevident. That all men were created equal. And now as europe confronts questions of immigration and religion and assimilation, i want you to remember that our countries are stronger, they are more secure and more successful when we welcome and integrate people of all backgrounds and faith and make them feel as one. And that includes our fellow citizens who are muslim. [ applause ] look, the sudden arrival of so many people from beyond our borders, especially when their cultures are very different, that can be daunting. We have immigration issues in the United States as well along our southern border of the United States and from people arriving from all around the world who get a visa and decide they want to stay. And i know the politics of immigration and refugees is hard. Its hard in every country. And just as a handful of neighborhoods shouldnt bear all the burden of refugee resettlement, neither should any one nation. All of us have to step up, all of us have to share this responsibility that includes the United States. But even as we take steps that are required to insure our security, even as we help turkey and greece cope with this influx in the way that is safe and humane, even as chancellor merkel and other european leaders work for an orderly immigration and resettlement process, rather than a disorderly one, even as we all need to collectively do more to invest in the Sustainable Development and governance. We need to reduce the conflicts that cause so much of the refugee crisis around the world. Chancellor merkel and others have eloquently reminded us that we cannot turn our backs on our fellow human beings who are here now and need our help now. [ applause ] we have to uphold our values, not just when its easy but when its hard. In germany more than anywhere else, we learned that what the world needs is not more walls, we cant define ourselves by the barriers we build to keep people out. Or to keep people in. And every crossroads in our history, we have moved forward when we acted on those timeless ideals that tell us to be open to one another and respect the dignity of every human being. And i think of so many germans and people across europe who have welcomed migrants into their homes because as one woman said in berlin, we need to do something. Just the human impulse to help. I think of the refugee who said i want to teach my kids the value of working. That human impulse to see the next generation uphold this. Refugees are not numbers, they are people who have faces and names and stories and need to be treated as such. I know it may sound easy for me to say this living on the other side of the ocean, and i noknow that some will call it blind hope that im confident. The forces of buying europe are ultimately much stronger than a part. Your parents, your grandparents, i say to the people of europe, you forget that you are the jer mans, the french, the italians and yes, the british, who rose above old divisions and put europe on the path to union. [ applause ] good morning, everyone. Welcome to squawk box here on cnbc. Im becky quick along with andrew ross sorkin. Joe is out today. We have been watching the president speak in hannover, germany. The president is making the case for free trade. They are sending additional troops to syria to cooperate on issues. Well get you caught up on the u. S. Markets. The last week was a good one for the dow. A weaker week for the nasdaq but there are red arrows. These are modest declines at this point with the dow futures down by 23 points below fair value. S p 500 futures off by one. The nasdaq down by five. Overnight in asia, the nikkei was down three quarters a percent. So was the shang hang. For european equities as president obama talked about these things, really making his case for a united europe. He said what happens in europe affected the world. The markets are in the red. The biggest decliner of the major markets is in germany with the tax down. 70 . The ftse 100 down by a quarter percent. Take a look at crude oil prices up by 2 last week giving back some of that this morning, the june contract for wti down to 43. 16. Ted cruz and john kasich striking a deal yesterday. They have agreed to stay out of each others ways and some state primaries in hopes of blocking donald trump from winning the nomination. Cruz will focus on indiana and give kasich a clearer shot in oregon and new mexico. Now in return, kasich will shift resources away from him. Heres trumps response, wow, Just Announced that lyin ted and kasich are going to collude in order to keep me from getting the republican nomination. Desperation no nickname nor kasich. He doesnt need one . Amazing twitter skills, collude, desperation, perfect twitter skills. As becky mentioned, the president is in germany today meeting with german chancellor Angela Merkelle and visiting a Big Industrial trade show. Obama is making the case for america to move forward with a free trade accord. The deal is still under negotiation. Supporters say it could boost each economy by about 100 bill. Heres what the president said just in a moments ago. So ive come to the heart of europe to say that the United States and the entire world needs a strong and prosperous and democratic and united eur e europe. In the meantime, president to ma warned that the u. K. Could take ten years to negotiate a trade deal with america if it decides to leave the European Union. We wouldnt abandon our efforts to negotiate a trade deal with our largest trading partner, the european market. But rather it could be five years from now, ten years from now before we were able to actually get something done. According to the book, we saw the markets fall. Today we get new home sales out at 10 00 eastern time. Then at 10 30 eastern, we get the results of the Dallas Fed Manufacturing survey. Then on the corporate front before the bell, we have a lot of results, we have kkr, xerox. Then after the close youll hear from express scripts, pioneer natural resources. Those guys set to release earnings as well. On the econ front, well get the postmeeting announcement wednesday at 2 00 p. M. Eastern time which well bring you live and other data to look out for like gdp on thursday. Also, personal income and spending on friday. And finally, another busy week for earnings. Heres what is exactly on tap. Mark your calendar. On tuesday we have apple reporting along with dupont, proctor gamble, at t, chipotle on wednesday including boeing and facebook. Thursday is the busiest day of earning seasons. Ford and amazon releasing results. Friday, exxon and chevron, two bigger ones to watch. At lo of numbers coming. We do have a lot of other Market Metrics to show you. Check out the bond market, the tenyear note yielding 1. 88 . If you look at germany, the tenyear boon hit a year of. 228 on friday. It may not sound like a lot but thats up from the low. 89 hit early in april. So we continue to watch that. Also, check out gold prices this morning. Right now it looks like gold prices are up another 4. 30. And well get a check on currencies as well. Looks like right now the dollar is trading at 112. 57. The yep rebounding that the the yen rebounding. We have lema croft here, thank you for being here early monday morning. Lets Start Talking about the bond market first. Thats what people are watching ahead of the Federal Reserve meeting on tuesday. What is happening . Do you think things are starting to move higher this time, not just a false start . No, i dont think so. I think the bonds are capped at these levels right now because i dont think the fed is going to communicate any sort of hawkish message into this economy. It still looks like they are wobbling but the bonds are acting like there is sort of a bottom here. They clearly have found the bottom at 1. 60 or 1. 75. For that reason the dollar finds itself the fed may not sound hawkish when it comes to talking to things, but it will be nearly as dub i dubbish . Is there assessment of Economic Conditions . If they brighten their language, you will see the market respond. She doesnt have to be super bullish but just less bearish in her assessment of the economy. Scott, well talk stocks, we have seen things rebound sharply. What comes next and how much is related back to what the fed ends up saying . I think a lot has to do with the beaten down sectors Like Health Care financials, transports, youre seeing a move out of growth technology, its been underperforming so its a cruel oil. She smiled, thats good. Crude will continue to bring about lows over the next year. If the dollar breaks down, how do we talk about a fed hike if the dollar is at a low . I just dont see that. Wouldnt a lower dollar make it easy for the fed to raise rates . Part of it is worried to make the dollar so much stronger against the other currencies and that would hurt our trade. Commodity currencies are rallying. The fact we are starting to see a pickup, maybe in inflation, and the Global Economy is fragile enough where if they do begin a rate hike, which i dont think they can do another one and done. That would hurt economies. I think the dollar has been a big driver of commodities. So i think it is something to watch certainly. If they hike in the dollar which is why they will never be in that psyche mode. When they start doing the full cycle, never going to happen. Look at japan, one step forward, ten steps back. Thats where we are in the world. Its a world of bankdriven markets. And the essentials that have succeeded isnt there going to be a break at some point. Yes. How are you going to fight that . Until it gets to the point where the fed cant really control the markets. At this point the central bank owns 10 of all the stocks on the nikkei at this point. This is the next level of Central Banks. 10 of shareholders, 90 of stocks on the nikkei. Lets just talk about oil because so much of the debate has been around the central park. When you go back into it, a lot has to be supply picture, right . U. S. Production is when doha didnt produce an agreement to freeze, we didnt have to sell off as anticipated. Sentiment has really shifted in this market. So do you think weve seen the lows . And were not going to go back and test 27 again . The only thing that worries me is if you get a negative mack xro headlimacro. This is a supplydriven price. We talked ourselves out of the idea that a recession is imminent. How quickly could that come back on the plate . Or do you think we are through that and it is really the just the central bank . We will be back facing the recessionary pressures. The Central Banks are right where they want us to be. Data is okay. Earnings are not very good in here. So it needs to have the Central Banks report to fend off that recessionary pressure. Quickly on the technicals, the walls that we keep bouncing against, do we break through these or do we continue to hit them and fall back down . Its such a tough call, brian. Im carrying very light possessions right now. Thats why youre on tv. We could go high or low. Theres a 50 50 chance of that. No. Thank you, todd, for your final appearance ever. No. I dont like the small cap underperformance. We have lost the nasdaq. The s p and dow are driving us. We are starting to get a push into the transport, so i do think we will push higher but there is significant loss of leadership in tech, small crash but if oil keeps going up, that will help the bullish case. That will help the bullish case. You want to be in beaten down names or transports are coming back for the increased commodity transports because we are doing better. But to oil, what about iran and russia . What about everybody just the moment we think everybody in this market is pretty much capped out. So when they say theyre going to bring it on, theres not much more to bring on. Folks, thank you very much. Great to see you this morning. Thank you. Coming up, when we return, the auto dealership of the future. Forget the High Pressure sales pitch. Mercedes rolling out a more laid back buying experience complete with a restaurant and a juice bar. Phil lebeau has that story from the beijing auto show. Its pretty cool when we come back. 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. Im in vests and as a vested investor in vests, i invest with e trade, where investors can investigate and invest in vests. Or not in vests. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Shoshow me more like this. E. Plan your never tiring retiring retired tires retirement show me previously watched. Whats recommended for me. X1 makes it easy to find what you love. Call or go online and switch to x1. Only with xfinity. Welcome back to squawk box. Mercedes is looking to revolutionize the future of suvs. Phil lebeau is from the beijing auto show with more. Phil . Reporter brian, this is unlike any dealership you would find in suburban, new jersey. This dealership in the heart of beijing is really very cool because its not really what you expect at a dealership. We have had a chance to walk around since they opened the mercedes Flagship Store dealership last week. It has a bar, it has a sitdown restaurant, a cafe, a juice bar. Yeah, there are a couple mercedes models in there. The reason this is important for mercedes is because mercedes is now the number one luxury automaker in china. And its sales last year rising more than 13 . This has now become the top market for mercedes. So they were very proud of showing off this store and talking about it last night here in beijing as they unveiled the new eclass. The extended edition of eclass, what they call the Longwheel Base because there are so many people who have chauffers over here in china. And we also had a chance to try to catch up to the ceo asking him if he had a comment regarding the department of justice probe into emissions standards at daimler and whether or not there are irregularities. We werent very successful. Heres what he had to say. A lot of americans are asking about the doj investigation. And thats where we walk away. Reporter the executives were very clear saying we are not talking about this doj probe into the emissions standards for daimler vehicles in the United States. So this mercedes dealership, there are a handle of them around the world. I wouldnt be surprised if eventually you see it somewhere like in manhattan. Phil lebeau in beijing, china. Well see more from phil including at 7 40 a. M. Eastern time. Thank you very much. When we come back, a new report on executive pay. Ceos getting a raise last year but how did compensation stack up to performance . And which ceo topped the list at 53 million . Thats a trick question. We have the answer next. And a look at s p 500s winners and losers as we head to break. Every Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. If you are dancing at 6 30 eastern in the morning, i hope its with someone. Not by yourself. I dance with myself, thank you. That was good. Too well. Welcome back to squawk box on cnbc. First in business worldwide. You practice in the mirror, didnt you . Like this morning. U. S. Equity futures this morning not indicating a big change. There may be a slight dip, it may be down 22 points, the dow, but well see. Stock prices are mildly weaker because oil is mildly weaker. We are seeing wti crude just down 1 . But thats 51 cents to 43. 22. Its time now for the executive edge. The latest repor