Transcripts For CNBC Squawk Box 20160628 : vimarsana.com

Equities. This morning again a rally you see across the boards in some of the markets. Rather steep. Nothing compared to the losses weve seen over the last two sessions. Italy up about 4 . Spain up 3 . Remember friday the markets were down double digits. This morning the dax is higher 3 . The kcac. In is where things have gone haywire. Central banks have been watching closely and traders as well. The pound is down. You can see this morning the euro is pretty steady at 1. 10. This morning the yen the dollar is up against the yun. Finally take a look at crude oil. That is also a rebound to 47. 55. Here are the big stories watching today. Vocati volkswagon is expected to pay 15 billion dollar. Expected to be filed in court today. It will include 10 billion to repair or buy back 475,000 cars equipped with two liter engineers. Owners will receive up to 10,000 in compensation. Vwwill pay 2. 7 billion in fines. Lyft has settled litigation. The Ride Hailing Service accused of breaking confidentiality pledge when he went to work for uber. Internet address assigned to lifts chief technology officer. Both settled before a trial. On todays economic agenda, the First Quarter expected growth 1 previous outlook. 0. 8. Index followed by june Consumer Confidence at ten. Jerome powell speaking about the economy this evening. Lets get across the globe right now where most of the action is. David cameron meeting with eu officials in brussels. Markets bounce back from the post brexit selloff. Our reporters across the globe join us now. Sara eisen in london covering the pound rebound. Were going to start with wilfred frost in brussels this morning. Good morning to you. Good morning. Yes, indeed. Its going to be fascinating to see the reception David Cameron gets. Europe leaders blame him for the result, not the people, but David Cameron for delivering the referendum in the first place. What have we learned in the last 24 hours. Seems rhetoric from european leaders seem to accept its up to the uk when to invoke article 50. Tough comments from renzi, holland and ameriskand merkel. We got to a middle ground, but theres not much to be gained from them from delaying anymore. They had hoped negotiations could get them a sense before they start that twoyear time clock on the discussions of article 50 would display. Finally of course the focus turns to when the next uk Prime Minister is in place. That would be by the second of september. Back of course to the focus today. That relationship that cameron sees with european leaders will get a sense there from how hostile the negotiations might be as of when they start. And on that note, some extraordinary comments once again from. He is not part of the political inner circle. Hes not got a chance of been the next Prime Minister. Still a little outsider. He was speaking in European Parliament in morning and antagonizing european leaders with his comments. Lets take a listen. No bite. We lost it. We can sum it up. Seeming to say he thinks britain wont be the first country to leave. He packed himself on the back to suggest that hes won a victory for democracy and other countries will follow. The reason i bring this up of course is that cameron and his successor want to have nice warm relations as they approach the negotiations. And the leader seeming to roughrough ruffle the feathers once again. Thats interesting. There was an article in the New York Times laying out what the french people are looking for ask the two reactions europe could take to this. The first being they could agree to allow britain to go and be friendly as some have thought and the others they could take a punitive stance on this and try to extract an ounce or pound or flesh along the way. Thats going be, i guess, the big question everyone is watching. Youre watching this very closely too. Im guessing you think thats what is the most important thing. Absolutely right. The main point on that we wont have certainty on negotiations for quite some time. Thats when markets are likely to remain under pressure for an extended period. When you look around europe, france, certainly on the top of the list. Also holland and down in italy where weve had so see some bank bailout. It will be fascinating to see what renzi, italy, mr. Rutter of the net lands and Francois Hollande of france. I go back to that point, they blame David Cameron for introducing the referendum in the first place. It was to protect his own political future at the time. A risk that has backfired. Before we go, is there any chance this backfires meaning that almost no matter what politically and you talk to a number of political scientists and they suggest even if the eu is ultimately punitive to the uk, it still wont stop this break away groups in certain countries from trying to either elect a group or force a referendum, just get this idea out they are playing sort of larger idea against playing against the elites and their own destiny and independence. I think theres going to be movements pushing for that in all these countries. The key difference issuing all of these countries and the political leaders will learn if the risk that David Cameron took. You can point to opinion polls where over40 are suggesting they want their own referendum and want to leave. They doesnt leave to action. David cameron delivered a referendum which is now going to be binding. The people got their say. If you dont take that risk, leaders may have to fall on their swords earlier than David Cameron. If you dont deliver that referendum, then we focus on National Elections and france early next year, germany, thats going to be fascinating, but if these parties dont get over 50 thermss. Traditional bodies that want to remain in europe. We might see leader change. Of course they will learn from the fact David Cameron took the risk and it didnt work, but certainly either way, significant Public Opinion across all of these countries in terms of dissatisfaction with the europe union. As you said by taking a pound of flesh from the uk or appearing c. Well have to get to sara eisen in london. All the talk in london is the political upheaval and the messy process that has been left behind by this brexit vote. Politically the race for the next Prime Minister heating up and on the front paging this morning is this man. You have know doubt come to recognize him in that blonde hair. That is boar is johnson. The former mayor of london. This paper goes as far as to say boris pm in nine weeks. We will know the next Prime Minister by early september. Boris also gets the front page of the guardian, but the real story is the headline and that is battle lines drawn to replace the Prime Minister. This country is in political disarr disarray. We will know more this week because the contenders will be discussed on wednesday and we should get the actual nominations for who will be running if for Prime Minister by thursday, september 2. The new leader of britain. It matters a lot because the new leader is be steering this country. How much theyre going to be able to keep of the open market. What kind of rules when it comes to immigration. All of that is being discussed. Lets show you the prettyish pound bouncing this morning. It is up a bit. Keep in mind this currency has lost about 12 of its value over the two days following the brexit vote so you could just say 1 move up is a pause on the elling because nothing fundamentally has changed here in term os of the economic and political uncertainties for this country. I mentioned at the top of the list is who will be the next Prime Minister, while boris does grace the front pages this morning. There is another name in the mix. Theresa may. Sh is the home secretary and recent poll just out by u gogov they totally miscalculated the brexit referendum result, but a new poll does show a light edge for her over Boris Johnson. Thats interesting because both may and johnson are on opposite end of the brexit issue. She campaigned heavily for remain alongside David Cameron. If she were to take over that could have serious implications for the way britain proceeds forward in the negotiations. The continuing question comes up and that is, can britain get out of a brexit . We mentioned there was this petition with millions of signatures on it to have a debate to have a do over referendum. David cameron Prime Minister ruled that out yesterday saying he accepts it and its final. There continues to be chatter about whether parliament could block the blex. Whether there is a new election and campaign gex the brexit, but for now it does continue to go through, but it just adds to the uncertainty. We dont have a lot of clarity about how it will be executed and what it will look like. Back to you. Thanks sara. In london swing around the globe to asia. Reporter thanks. Is markets here have calmed and in many cases strengthened after the brexit. A lot of that is because of talk of policy support across the region. In japan there was already a live discussion about greater fiscal stimulus to help boost the japanese economy and it seems as though the brexit fears just heightened the need. Today the economy minister said some of that money could be allocated to smaller and Medium Sized Companies that are suffering or could be suffering after the brexit. In korea we also heard something similar. The government there said it is considering a supplementary budget of about 8 billion toll offset any of the negative implications that could happen because of brexit especially in the export sector. Also here in china we saw policymakers out in force trying to suede the markets. Made a statement saying that beijing would protect against roller costar movements in the market and also the main focus here in china is that investors are concerned about the pressures that the chinese yaun is facing. Basically the expectations are looking for safe investments. They are going to push up the u. S. Dollar. We could see a greater waebness in the chinese yaun. We could see more weakness against the dollar, it is stable against a basket of currencies. Thank you very much. Thats the lead story in the wall street journal today. How to deal with these head wind. Its a discussion were going to dig into a little bit more. When we come back this morning, it has been a brutal week for stocks, but we are seeing a little bit of a bounce this morning. Do this morning we are in positive territory of triple digits. We will talk strategy after the break. Larry summers, his thought on the brexit and what it means for Global Markets. Squawk box will be right back. Amazing sleep stays with you all day and all night. Sleep number beds with Sleepiq Technology give you the knowledge to adjust for the best sleep ever. Dont miss the lowest prices of the season going on now, with our bestbuy rated c2 Queen Mattress now only 699. 99. Know better sleep. Only at a sleep number store. The Global Markets lost 3 trillion over the last two sessions. This morning we are seeing a brexit bounceback. S p futures up by 14. The nasdaq up by 31. The pound looks to stabilized as well. 133. This is around 1. 46 that was set before the british vote back on thursday. Joining us now is dean. Also david who is Global Market strategist at jp morgan funds. Its good to see you. Dean, why dont we start with you. People woke up this morning, they saw the dow down on friday and this morning things look to have stabilized. How Long Committee wi how long can we expect that to last. I think the longer and more drawn out the uncertainty is that potentially feeds back to the real economy which as you know globally is relatively weak so far. So sort of two things to watch. One for us, european banks down 18 on friday. Down another six yesterday. When you have volatility that is that significant, you start to wonder from a financial con tay gent standpoint. The second one is the exhibiticono brexit. Even back to the u. S. Economy, its something for us to watch for. The stall eed nature and the slowness, the Business Leaders we talk to, traders, investors all say we want this set and would settled soon. Leaders say we want to take our time. Tempers are hot. What do you think about the politicians view on that. Thats their view. Theyre not necessarily worried about market price outcomes. So for market you want certainty. Even if its bad news, lower trieding, higher trading barriers. The realty there arent a lot of great outcomes. You could go quick. That isnt necessarily market friendly. For us when we look at markets right now were not particularly excited. The s p right before brexit was literal seconds away from an alltime high. It was right there. So weve lost 100 points very quickly. So weve lost a lot very quickly, but starting from such a high point that still theres plenty to give back here. Well take you to the euro banks in a moment. Taifd i want to get your thoughts too. Where do you think about where the market stands. Is it looking cho ing cheep to its beginning to look interesting. Is Earnings Growth going to materialize. The two big head winds have been a stronger dollar and lower energy prices. In the background you have ridesing wages so i ask heist is this going to be a head wind that material heidi cruzs for u. S. Profitability at a time when the preexisting head wind were just starting to subside. I think we need to see how that plays out. So dean, somebody at that table wrote an article in a paper called the New York Times that is one of the most Interesting Articles ive seen. It beginning this isnt meant to scare you. Then it goes on to frighten the you know what. It talks about the Case Scenario of brexit. Talks about other countries spinning out of the eu. And all sorts of bad things that can happen. Whats interesting he goes on in the middle to say dont be scared now. Is this the time to be scared . I always think as a journalist if i can think of it today, i should write it today, not tomorrow. If you can think of the trade today, youre late if you wait for tomorrow. Right. A lot of conjecture around the insert two letters and exit afterwards. Right. So Political Uncertainty can gain a momentum factor to it. Its very unknowable. Well see how these negotiations take place. For us, the risks are a little bit more of a slow medication train wreck. Going into this, you had a Global Economic growth backdrop that was faltering. It was middling around. They are doing all they can at this point and have done all they can. Youre starting point was very high s p. And Central Banks that have done just about every last drop of stimulus. If i could just interrupt, the difference is if this was the Central Banks who job it was to avoid the worst possible outcome. I would feel a little more optimistic. They have the ability to do certain things. Right now where we are its the politicians who we must rely upon to avoid the worst possible outcome. Thats not making me feel good. If we look at Central Banks versus politicians the Central Banks operate with unbelievable autonomy. That will can get things done quickly. If you look for example at the leadership and ability to negotiate effectively in calm markets. How this goes, the degree to which they can come together and effectively negotiate an exit on a reasonable timetable. How does an investor make that bet. Meaning if youre going to model that out, can you model that out . And what how to you assess what the true downside is relative to what the upside is . I dont think you can model it out. Political risk is one that doesnt fit nicely into an excel spreadsheet and that makes the markets very uncomfortable. At this point, is it still asymmetric . Is there some upside thats not built in. I dont think i think it is to downside. S p at 2,000. Weve lost two very bad days very quickly, but were at 1830 back in february so theres still downside. I would say the market moved very decisively in advance of the entire thing. We were watching this saying the Market Making a heck of a bet of an outcome. Thats been the problem all along. This element of up certainty sit over the market. You mentioned the stronger dollar and the idea we are starting to strengthen once again. This is the lead story, the swiss franc, the dollar, the yen. Not every central bank can try and weaken the currency at the same time. Exactly. Its a bit i think the next thing that everybody is going to be focusing on is what happens with the remindy. What happens when the basket is devalued. What matters is the strength to the dollar and does that lead to capitol outflow. Were setting ourselves up for more of what we saw beginning of this year, last summer. You see dollar strength. You see financial conditions tighten and that leaves the fed in a difficult position. And it leaves companies in a difficult position when it comes to earnings. Maybe the earnings weve been ab tis pating in the second half of the year. So sentiment and tinfundamens not really working for you. Thank again. Coming up the reaction of the brexit from the sea suite. Largest tool company. Will tell us what plans theyre making next. As we head to break, s p winners and losers. Welcome whackback. Were seeing a rebound today after brutal time for stocks. Have things stabilized . We will see. The dow does open higher. S p looking to open at 15 points higher and the nasdaq looking to ep 3 is points higher. Take a look at european equities. You are seeing green arrows too across the board. Pretty much everything. Time now for the executive edge. U. S. Industrial companies with exposure to europe facing uncertainty after the uk vote to leave the europe union. Here to talk about Brexit Impact is eo of stanly decker. How does it affect your business . What kind of changes are you making in response to it . Short term were a Global Company and about 50 of the revenue is outside of the u. S. About half of that is in europe. So 25 of our revenue. Short term impact is going to be on foreign currency fluctuation and volatility. Its relatively minor. Its a couple cent as share. Weve done so analysis where it to be doomsday scenario. The things you talked about earlier, it would be about 20 million which is significant, but not devastating. Im not sure thats fair, but we can plan. I want to pivot off of that and talk about another aspect of your business which is 62 of what you sell in the United States is maid in the u. S. Thats close. Its going to vary by product category. We have a stated strategy to produce 50 percent of what we sell to a region in that region. Youre bucking the trend entirely here. How are you able to manufacturer stuff in the u. S. That we know is made very cheaply abroad. Two things. U. S. Manufacturer is not dead. Productivity, invasion is important. Weve talked about this on the show before. We brought about 10 or 15 of our power Tool Protection from china and mexico back to the u. S. Were producing it in fort mill, north carolina. A lot of these components are sourced globally. Including in the u. S. Components that have a lot of intellectual property in there. So the only variable, labor and freight. We have it with the power tools. Weve taken 12 weeks off the water. Increased working capital turns. We have the cost in 0 to 5 . How do currency fluctuations affect that. Thst going to affect it. Theres the translational impact which everybody can understand, weak or foreign currencies. Whats tough when youre producing professional products abroad, the transactional aspect. When you have dlor denominated components in a lowcost market, that is an impact. Its gone to 140 when we reported First Quarter earnings in april. Todays Exchange Rates, thats about the same. The. The point being thats about half translational and half transactional. When you think about the brexit, do you model in any slow down in terms of projects . Do you think theres a group of people saying im pressing the pause button. Were not going to do this project. Were dont need to buy your tools right now. The simple answer is short term we wont see that impact. Longterm that could well be the case. Were going to be late in the supply chain. For instance we talked about commercial real estate, were that to slow down, well see that nine month before it would impact our business and would be able sto change it. Short term pretty must affects. Longer terms either take some costs out, restructure, were there to be a significant slow down. Weve performed well in europe as of late. Youre talking about ip. Cool new tool. Tell us about it. We have what we think is the greatest invasion in power tools since black and decker introduced the cordless power tool. Thats a big statement. You better deliver here. Heres the deal. The biggest invasion since the cordless power tool. Which black and decker introduced in 1961. I believe. Its the flex built system which basically the objective, our vision was to create the cordless job site. Historically, cordless products are convenient, they work well, but they dont have the power to do everything thats needed on a job site. With the flex volt system, you have 15 four volt max batteries so three times five in a row. Three rows. 60 volts. Its totally compatible and when run in parallel, you can run a 20 volt hammer drill driver, which i believe were showing on the screen, run in a series, it will run a 60 vote circular saw. Just so i understand, you didnt have enough power from the battery. You could run a 20 volt system. Anything that was cordless didnt have power to cut through three stacks of. I know about that. When i went to home depot and i bought a cheep battery, i had to go and spend triple the amount of money and i got a stronger battery. So the strength of the battery is tied to what yo can do. Whats important about this is the flex volt system allows complete compatibility, so its 20, 60, or 120. This will run awe 20 volt driver and will run three times longer. Is it heavy. Its not heavy at all. Because of the 20 times three. If youre running a 06 volt product, yooel get normal run time. Down v doubled up which it can do on the lighter saw thats to the right ton the display. Thats a job that. Are you fitting from invasions and batteries that has to do with cars and other things. Whats unique to us is the combination of Battery Technology and the break through invasion special forces gl s gu that are embedded within a business use, but offcampus in their own Silicon Valley type. Swing big, fail fast, put out thix that will be at least 100 million in revenue. Its been great for us to get these significant break throughs, but we arent so much the owners of Battery Technology. Were buying the batteries from the large battery suppliers in the world. Its the application. Theres a demand because it allows flexibility. You dont have to have cords all over. Safety factor. Its productivity. It really helps the job site. The workers on the job site love it for all those good reasons. And by doing that, youre just simply eliminating the need for power source on job site. We filed 500 pages on patten protection. We believe we created the cordless job site. Next step is making obsolete essentially the small gas engine. Think about in a leaf blower, in you can apply the same technology there, cleaner, greener, quieter. Its terrific. Have to wrap it up there. Good luck with this invasion. Thanks for having me. When we come back, chipotle hoping to win back customers after the scares. Details next. A quick check of whats happening in the european markets, you do see a turn around. T squawk box will be right back. In a world held back by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. Chipotle. We might be making at least for the moment, dow jones looks higher. Nasdaq looking to up 31. 5 higher. Chipotle hoping to win customers with free food. Launching chip toppia. Summer promotion. That rewards customers for repeat visits. Four burritos get a fifth one for free. The highest level diners will get catering for 20 people. Company stock is down 36 in the last year. It was hit hard of course by that e. Coli virus. It has been a struggle to get people to come back in. A large four points by sheridan has gone out by the military owned gav yacht ta. Fifth avenue hotel in havana. Its the first cuban hotel to Begin Operating under a u. S. Brand since the 1959 revolution. Its part of a multimillion dollar deal by star wood to manager two cuban owned hotels. Refurbishing the hotel for the next few months. One and a half million tourists. Partly because of relaxation in u. S. Tourism. Basketball coach pat summit has died at 64. She became the winningest d 1 basketball coach in 2005. She was named the nca coach of the year seven times. She battled alzheimers and early onset dementia. So sad news this morning. In the meantime, the political fallout. Nicholas puholas burns is going us what he thinks it means. Back in a moment. This is shaving. Blades here, blades there. Some more over there. Whoa thats not a blade. This is shielding. With lubrication before and after the blades. Shields from irritation for a close, comfortable shave. The new proshield from gillette. Freshly made in the tokyojapanese tradition, each batch is small. Special. Unique. Every bowl blurring the line between food. And art. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients. Stepbysteprecipes. Delivered to your door. Get your first two meals free blueapron. Com cook. Amazing sleep stays with you all day and all night. Sleep number beds with Sleepiq Technology give you the knowledge to adjust for the best sleep ever. Dont miss the lowest prices of the season going on now, with our bestbuy rated c2 Queen Mattress now only 699. 99. Know better sleep. Only at a sleep number store. Brexit impact on europe still taking shape. Some think it will leave britain vulnerable. Is u. S. Ambassador in nato under george w. Bush. Currently an adviser to Hillary Clinton. Thank you for joining us this morning. When you think about the, quote, unquote, special relationship that the u. S. Has with britain, do you think that has changed. Is the special relationship going to be u. S. And germany, f . I think there is that possibility. We have a relationship of trust and history with the british that goes back a long way. When i was a practicing diplomat in the bush administration. Thats where i was not the obama administration. We relied on the british to translate the eu for us. And the british had a tough minded view of the world in much the way no more British Voice if brexit happens. I know you wrote an interesting column about whether or not it will happen. But if the british leave, then the United States is going to have a country which it is works with the security issues. Angela merkel was perhaps the most respected in the European Union today. I think youll see president obama and his successor try to deepen that relationship with merkel. How safe is Angela Merkel . She comes up for reelection her party does in 2017. Shes taken a major hit to her reputation because of the refugee crisis. Many rejected so many refugees came in. So whether she returns is a big question in european politics. This is interesting to see over the last 10 or 15 years to see how this troika that ran the European Union, its evolved into german leadership. The germans are still hesitant to step up and say were the leader of europe. But germany is the leader of europe. Ambassador, there are two different ideas emerging. One is the punitive way to deter others. The other is this open arms way and this has to do both with how the European Union deals with the uk but the u. S. Has a role here. Part of that came from president obama who said that the uk would be at the back of the queue. Reiterated that to me yesterday saying we have this eu agreement in works and the uk is going to have to come next. What is it that president clinton would do in this regard . Its hard to say. First of all, i hope there will be i hope Hillary Clinton will be elected. Its hard to say. But whats interesting is right now john kerry was in london yesterday. He was preaching patience and not rushing forward to try to push the british. This is going to be the big tactical issue for the europe s europeans. Merkel over the weekend took a softer approach than the french and italians and the European Commission had taken. Merkel said give them time. No reason to be petulant about this. And then when she met with the french and italian leaders she said the british had to move. Obviously the eu leaders dont want to see a precedence where britain drags this out. They dont want to encourage other countries that may have an inclination to leave in the future. So theres this tension. But the british hold all the cards. Under article 50 of the eu treaty, the british decide when to start the clock on these divorce proceedings. Cameron said yesterday he would not start them. And hell be in office until september, perhaps early october. So the british are playing a cagey game and youve seen Boris Johnson the exmayor of london play the same game. This is the opening rounds of negotiation the british are trying to get the best deal they can. Ambassador, when you look around the rest of europe given what just took place in britain, do you think that other countries will try to make for the exits, if you will . Weve had Richard Haass on the program in the last week. He said in the next five years it was undoubtedly so wed try to see countries break away. I thought you wrote an interesting column about worst case. You have to think through the worst Case Scenarios. But remember for the core of these countries, they have been in a European Union of sorts since the cold and Steel Community of the 40s, the treaty of rome and the common market. The french, germans, italians, they have for 60 years been european. So its not clear to me that any of the present governments, any of them would seek to leave the European Union. The worst Case Scenarios is if one of the right wing nationalist parties wins a controlling majority in parliamentary elections. Im not sure theyre going to win elections. You saw the Spanish Party was repudiated at the polls on sunday. My idea is theres a great deal of support for the European Union among a lot of europeans. Whats the role of the u. S. And what should it be . The last time the president tried to play a role in this, it might have backfired. I think the role of the u. S. Is to remember that the European Union is our largest trade partner, investor in our economy, and the largest collection of American Allies in the world in nato. So we have tremendous interest there. What we want is stability. We dont want to see markets implode. We dont want to see economies go under. We want to see if there is going to be a divorce with britain, we want to see an amicable divorce. Ambassador, very quickly, every Business Leader weve talked to has stressed they would like to see these talks take place quickly and get rid of the uncertainty, get rid of the rules of the road. The longer it takes to sort out, the more business could dry up. That could lead to downturns in the economy. Is it kwort it to take your time and risk the shortterm pain in the economy . Well, the british political leaders want to take their time. But the french, italian, and spanish want them to go quickly. Thats going to be worked out in the next day or two in brussels. Youre going to see a hard line stance from the European Union trying to push the british. Ambassador, thanks for helping us try to sort through this this morning. Thank you. Coming up, a guest host double play. Former treasury secretary Larry Summers joins us to talk the fallout from the brexit. Then Mario Gabelli. Squawk box is coming right back. The brexit bounce. European stocks move higher, the pound rebounds, and u. S. Futures are in the green. But is there more fallout ahead . Larry summers is our guest host. Volkswagen cleaning up the diesel emissions scandal and its going to cost billions. We have the details of the megasettlement. And the second brexit in less than a week. There might be something here. Doesnt save it this time on the soccer field as england gets ousted by the smallest country in the euro 2016 tournament. The second hour of squawk box begins right now. Live from the beating heart of business, new york city, this is squawk box. Welcome back to squawk box right here on cnbc first in business worldwide. Im Andrew Ross Sorkin and becky and steve leisman. We have Larry Summers here. Hes going to weigh in on the brexit and the u. S. Elections and he is not a fan of candidate trump. Maybe thats obvious. Well get to that starting in a few minutes. Before we do that, beckys got this mornings action. Lets get a check on the markets this morning. The futures this morning are indicated higher. This comes after a couple of days of pretty steep losses. Yesterday the dow was down by 260 points. Add that to a more than 600point decline on friday. Right now the dow futures up by 133 points. The nasdaq up by 29. The question is how long the stability lasts. Take a look at whats rebounding in europe as well. Right now the dax is up by about 2 . The cac in france is up by 2. 6 . And the ftse by 2. 4 . Spains up by about 2. 4 . But on friday those markets were down double digits. Check out asia. Things are relatively flat overnight. The nikkei yesterday was flat. Shanghai composite up by 17. Oil prices are rebounding this morning as well with wti up by 2. 6 to 47. 57. And the 10year note which the yield was under extreme pressure, still around 1. 473 . In the currency market looks like the pound has stabilized this morning. Dollar is down against the euro but the euro still at 1. 1088. Finally take a look at gold prices which saw quite a bit of action over the last two sessions. This morning down about 15 down to 1,309. 50 an ounce. Economic numbers have been overshadowed by the brexit but we will get you a number of reports today. First quarter gdp out at 8 30 a. M. Eastern. Expected to show an annual growth rate. Well also get the case shiller report at 9 00 eastern. Dow chemical cutting about 25 hurk00 jobs to take full ownership of dow corning. All that coming ahead of dows upcoming merger with dupont. Apple ceo tim cook will host a fund raiser with paul ryan this morning for the upcoming Gop Convention. Uk Prime Minister David Cameron will be meeting with european leaders in brussels. That is where we find wilford frost this morning. People are trying to find out what the tones going to be and how well proceed with negotiations from here. Absolutely right, becky. Its going to be fascinating to see the reception David Cameron gets. Many people blame him for what has happened in the uk because he took the risk in the first place to deliver the referendum. Im also intrigued to see the sense of nervousness amongst the rest of the european leaders. Of course we saw from we saw a press conference from merkel, hollande, and renzi yesterday. But the meeting is the first time all 28 leaders come together of the european nations after what frankly has been the most seminal moment in the history of europe since the fall of the berlin wall. Its going to be fascinating to see how nervous those leaders are. In particular from my perspective france, holland, italy some of the ones named to face the most strong movements in their countries. Itll be interesting to see what they have to say. I think speaking to people in brussels, the mood is one of nervousness. People have been tense over the weekend. And a taste of that was a speech from nigel faraj. He wont be attending the summer. Heres a taste of the mood of his speech. I know that virtually none of you have ever done a proper job in your lives. Or worked in business. Or worked in trade. Or, indeed, ever created a job. But listen. Just listen. So of course some people might have been hoping to smooth relations ahead of negotiations. Nigel farage doing the opposite. Well worth the watch on youtube. And i think whatever reception David Cameron gets today from european leaders, i imagine theyre delighted the person carrying out future negotiations will not be nigel farage. He is not going to be the next Prime Minister. But its a sign of the tension here and as those 28 european leaders come together, well certainly have a look to see what the reaction is. Thanks. Thats some speech. Weve got to watch this. We have a great guest host for the next hour. Former u. S. Treasury secretary Larry Summers is here. I saw you comment that you thought brexit was potentially as bad or the worst thing thats happened since world war ii. Is that right . Well, i think its the worst thing in terms of european politics. The European Union has been the foundation of stability in europe. But it was a thousand years of intermittment wars in europe. Now wars between the countries seems inconceivable. And thats heavily a reflection of the European Union project and the gradual evolution towards greater operation. And that has been a forward process for 60, 70 years now. Thats not going to send countries to war. But its serious business. That the experiment that is the eu . I dont think it all gets undone. But i think without the british influence it will be a less sound experiment, it will be a less robust economy. And i think with this example, theres got to be encouragement to sen trif kal forces everywhere. And that makes e that this wont work out than it would have been. I think its got to be serious and be an even money chance that it goes into mild recession. I think for the uk for the eu, rather, its got to be a significant loss of confidence. And confidence you know we cant measure it very well as economists but its a very important variable. And i think everybodys going to say right now why should i make a major investment . Why should i locate a major investment in an environment this uncertain . I think there are ramifications everywhere in the global economy. This has led already it may hold or even grow a flight to quality which pushes the dollar up and pushes the yen up and thats going to create challenges for certain parts of our country. Thats going to create major problems for people whove been traditionally tied to the u. S. Dollar like the chinese, like in hong kong you already have seen in the last couple days significant movements downward in the chinese currency against the dollar. And i think this is all against a backdrop. I think this is a most important sort of risk in the system. We are all accustomed to a world where Monetary Policy can regulate things to at least some degree. Not completely, but when bad things happen, Monetary Policy eases and that returns things. And if you look at the history of the u. S. Business cycle, you know, every half dozen years the fed cuts rates in the neighborhood of 400 basis points to stabilize things. Well, nowhere, not in japan, not in europe, not in the United States, not in the uk is there anything like 400 basis points of room to respond to an incipient downturn. Its the end of effective central banking . I dont think its the end of any effectiveness of central banking, but its certainly the moment of least capacity of Central Banks to solve problems. So you have a system that ive been warning on this show for the last year and a half is more brittle than usual. Because Central Banks dont have room. And you have brittleness and a bad shock. And thats a prescription for a quite difficult situation. And i think thats what markets are discounting right now. Is there an element of go ahead. Of concern in this reaction that and is there a sign in this reaction or what happened in britain that donald trump could become president . I dont know how much thats in the thats in markets right now. I predicted i think its a reasonable prediction that this event which is really quite unexpected to the establishment in britain was really something that was pretty universally opposed by broad internationally cooperation oriented elites. The fact that it happened nonetheless would make the possibility of a Trump Victory more real and that would be unsettling in markets. And i think thats happened. Fortunately in a way candidate trump has behaved in so bizarre a way that its made those risks less than they could have been. Getting about opening golf courses in scotland talking about the benefits to his golf tourism of their decline in the Exchange Rate is an extraordinary way to campaign for the presidency of the United States. So hes doing a lot to discredit himself. But the idea that the elite have this completely wrong, that they dont read the politics of the public, and that these things that are seen and viewed as tail risks can become the conventional absolutely. Look. The odds you think the betting markets know anything. Thats debatable after what happened. But the betting markets in the united on the u. S. President ial election are in the range of 75 25. Thats where they were before the brexit vote. What that means is things that are 25 happen sometimes. And yes, the forces propelling brexit which are forces of nationalism, nativism and negativism are the same kinds of forces that are operating in the United States. Now, i think theres some important differences. The United States is a much more diverse country. And so the minority groups are a much larger percentage of the vote. And i think that distinguishes the United States from britain in a way that makes trumps selection less likely. I think the United States, i think that trump himself has done a variety of things to make specter of himself as president look deeply disturbing particularly theres nothing in the theres nothing in the british situation that is parallel to the many offensive things that trump has said visavis women. Frankly i think that the democrats and Hillary Clinton will run a much more Effective Campaign but larry, that was the argument that was the argument that republicans were making all through the process, the primary process. And every one of them fell. Despite the things that he was saying that to the elite establishment seemed like it was he still beat 16 candidates. Thats right. And i think thats why my prediction would be that this will not happen. But i think its a i think theres a risk and i think that risk should be discounted to some degree by markets. I do think you need to recognize, becky, that the republican primary electorate is a very different electorate in particular. Just like the democratic p electorate is. I think you have an electorate that is have much africanamericans are very underrepresented in which hispanics, latinos are very badly underrepresented. In which other minority groups are badly underrepresented. And so what happens among that electorate is only to a limited extent a guide to what happens. But look. The broad point that steve makes which is that this brexit has to be a wakeup call for anyone who is complacent about these kinds of nativist forces both in this years election and in the future, i think thats very much the right concern. Were going to continue this conversation. Larrys sticking around the rest of the hour. I want to talk what there is we can do about it in terms of some solutions. But thank you. When we return, volkswagen opening up the checkbook. Phil lebeau will tell us about the settlement to clean up the diesel emissions scandal. Check out the futures this morning. Youre seeing is green arrows. Dow futures up by 123 points. S p futures up by 12. Squawk box will be right back. Turning now to volkswagen and its nearly 15 billion settlement of the emissions scandal. Phil lebeau is here. Good morning. Talking to people about this settlement, it was clear to me there is a number of components here that make this very significant on a number of levels. Particularly for those people who have these diesel vw models. Heres the settlement that will be announced out of the next couple of hours in washington. The epa with other regulators will be holding a press conference. Then well hear from volkswagen later on today. Just under 15 billion in total. 14. 7 billion. About 10 billion will go to buybacks and compensation. Well talk about the buybacks in just a little bit. 2. 7 billion in fines to the epa. And another 2 billion will be set aside as volkswagen worked to develop zero emission vehicles. All right. The compensation component of this goes to 475,000 vw owners. They own diesel models. Half million of those in the United States. They will be offered up to 10,000 as part of their compensation. In addition, volkswagen is going to offer to buy back their diesel cars depending on the model, other conditions and factors. The exact buyout per owner is going to be a pretty wide range here. But this is far greater than many were thinking. However, this does not end the legal woes for volkswagen. Theres still the doj. It has a criminal probe ongoing. There are criminal investigations in germany and south korea. And they still have to fix 11 million cars in europe. So they are far from out of the woods as far as this issue is concerned. Take a look at shares of volkswagen. Its been under pressure because of concerns that brexit will lead to a dramatic slowdown of sales. We get the announcement and the details in full coming up in about two hours. Back to you. As you mentioned, those details for what theyre planning to pay back the consumers are more generous than people had been expecting. A lot of times we hear this and its money handed over to the feds. The people who actually were involved in this dont get much back. Do you think thats because the regulators cracked down or because vw is trying to make it up hard to those they misled . I think vw wants to wrap this up but this is much more than people were expecting early on. I talked to an executive last year who said we realize we are going to have to pay. If you compare this to what toyota and General Motors went through, no comparison at all. The difference is this. With toyota and General Motors you can make an argument there was gross negligence. With this case, this was out and out fraud. They admitted they lied. Thats why theyre paying more. Thank you. Phil lebeau. Coming up, you believe in miracles . Upset at the euro 2016 soccer tournament. Its been a rough week for the brits. Squawk box returns in a minute. Coming up, the brexit and the battered banks. Run down of the carnage left. And Larry Summers has raised the warning flag on candidate trump calling him a threat to american democracy. Well get into the issues that have him raising that flag. As we head to break, take a look at u. S. Futures. Things are looking if the green this morning. Dow looks like it would open up about 121 points higher. We are back in just a moment. 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. Intenselyflavored. Colorfullydiverse. Beautifullymisshapen. Cultivated for generations, its the unexpected hero of any dish. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients. Stepbysteprecipes. Delivered to your door. Get your first two meals free blueapron. Com cook. Welcome back to squawk box, everyone. Lets take a look at the stories that are front and center this morning. The projected advance only makes a slight dent in the brexit related selloff which saw about 3 trillion of Market Capital sell off in three days. The dow up by 124 points. S p up by 12. Nasdaq up by 28. Viacoms board is reportedly rejecting an offer to have directors meet with shareholder redstone. That is according to reuters. And following the removal from the board of National Amusements which is controlling the ultimate fate of viacom. And if you thought corporate earnings were becoming increasingly difficult to interpret, you are correct. Shows that out of the s p 500 only 29 companies, thats about 5. 7 , exclusively used general accepting accounting principles. Okay. And the brexit vote took a big bite out of the banking center. Dominic chu is joining us. 3 trillion of Global Market value erased in the wake of brexit last week. A trillion nearly a trillion of that according to S P Dow Jones indices was in the s p 500 companies alone. The second biggest in the s p are the financials, the banks out there. Look at the picture of the financials just over the course since thursday. Weve seen about a 6 drop here in that Financial Sector overall. Again, carries a lot of weight in the s p 500. There are a number of reasons we see these things happening. Look at those among the hardest hit. Bank of america down 11 during that span here. Citi group shares down 9 . Goldman sachs down 7 . Even a more centered u. S. Bank like wells fargo, down about 5 as well. There were a number of reasons why analyst wrs saying this could be an issue for u. S. Banks. Maybe not as on the forefront of european banks out there. Check out some of these reasons why. There are a lot of them out there. We couldnt put all of them, but check some of these out. A lot of economists out there already saying Global Growth is going to slow. Further easing by Central Banks around the world. Maybe not great for those on the dynamic. Political uncertainty. Also losing access to the eu market, maybe not completely but itll get a bit more complicated for these banks u. S. Or abroad to operate in a market where things get a little more complex due to this. I want to make one point that so far this is being seen by the markets as an earnings issue, not a solvency issue. When i look, for example, at the spread of jpmorgan, its higher now. Its 78. Back in february when we were so concerned about the whole economy and what was going on in the world, it was 109. Obviously its been higher at other times. But so far if you look at the cds spreads, its a vol sent thing. Those credit default swaps that try to handicap insurance on default, those are not at crisis levels. Thats a point a lot of people have made over the last few days. This is not a panic moment. But still something a lot of guys are watching for sure. Its not. Though european cds are substantially higher. European banks are trading at price to book ratios that suggests much more concern about their futures. Theyre going to have much less protection in a way and theres going to be more risk of punitive regulation when the eu when the uk is no longer part of the eu Decision Making process. This has been a bit of a blow to global confidence. So i dont think one should minimize the risks to the Financial System here. Yes, its nothing like the fall of 2008. But i think if you look in europe in particular, there are institutions that are weak that should be getting more capital. And i think authorities have been slow to insist on the adequate capitalization of institutions in europe in much the same way that they were slow in 2007 and 2008 to insist on capital adequacies. So i think it is a time when theres going to be increased scrutiny on at least some european financial institutions. Youre not suggesting the liquiditys not there from authorities. No. Liquidity is there. Just as liquidity was there in spring of 2008 and in the summer of 2008. And, you know, looking back, one wishes that a variety of institutions had raised capital from the private markets. Then we wouldnt had to get involved with the whole t. A. R. P. Thing. And thats something that demands attention in europe. And i think theres a certain amount of collegiatety to not upset the apple card. That is inhibiting strong regulatory responses to some situations where capital may not be fully adequate and where leverage levels may be high. I think whenever you see Companies Trading banks trading at less than twothirds of book, thats a situation that should be getting very substantial scrutiny and one should worry about whether the accounting is really right. All the nonperforming loans are being fully recognized and assets are being properly valued. The market understood the bear was going to have a problem before the s. E. C. Did. So when owe get these kinds of market signs, you can wait until its conclusively established. But if you wait until everything is conclusively established, then youre not going to be able to raise capital from the markets. And so i think there needs to be a focus on the apparatus and the health of the Banking System on the european continent in particular. And obviously given some of the dramatic moves in british bank stock prices, thats going to need some regulatory attention as well. We are talking with our guest host this morning. Larry summers. One of the things weve been watching is the meeting today. Eu leaders meeting on how to react to the leaving of the eu. They could agree to take this slowly and work things out. And i just wonder what you think is a, what they should do, and b, what the most likely scenario is. I think we on shows like this usually like to frame things as either or choices. And political leaders usually want to have it both ways. So my guess is theyre going to be operating under a constraint which is they cant do anything thats going to license or encourage other countries immediately to follow britains path. But given that constraint, this isnt going to be an easy this is not going to be made an easy thing for britain. I dont see that theres any huge advantage to anyone to rushing the details here. And i dont think theres really a capacity to negotiate with britain given that britain doesnt have a government thats got any mandate to negotiate. So my guess is the rhetoric will be firm. And the actions will be slow. And that well be working towards a relatively protracted exit that probably can be on somewhat better terms and terms of preserving all the economic relationships if it happens over time than if everything needs to be forced to a decision right now. The problem with that which could be a fatal problem is that it will leave more uncertainty in place for more time. But my experience is you know, its like when my kids used to ask whether they could get my car over the weekend and theyd say i dont know. And theyd say daddy, we need to know so we can make plans with our friends. Daddy, i dont know. Daddy, we just need a decision. Okay. The decision is you cant have a car. They would always say lets go back to uncertainty. I think theres a bit of that in this kind of situation. So my prediction would be and i think probably the better part of wisdom would be a certain amount of firmness and sternness in the rhetoric and then letting the situation play out. I dont think britains going to declare article 50 in the near term and the europeans cant force them to declare article 50. Muhammad el arian was here on friday. While there are a lot of things nations are willing to share, maybe they have been too heavy handed on what was down by brrts. As a way to fight against nationalism and populism . Its been on the rise in other nation states. I think its i think its possible. I dont know the extent to which its microintrusive regulation that is driving this as much as its immigration thats part of it too. Flows and all that. You know, i think if the ec if eu could manage all this and bring itself to popularity by letting countries decide the shape of milk cartons in their own country, im sure brussels would have to sacrifice that. But i think that trying to say we can have a streamline clarify and reduce of it Regulation Program and then all will be well, i think is probably underestimating the magnitude of the problems that were dealing with. I think there are a whole set of issues that also need to be faced having to do with the fact and this is what american economists said in 1999, that when you have a fixed currency, you cant make a set of adjustments. So its much more constraining. Were going to continue this we have more time later. Got to ask him about the fed. That too. Coming up, how to measure the amount of jobs being created by the economy. Well be told how theyre celebrating the tenyear anniversary of its employment report. Squawk box will be right back. Welcome back. Very exciting. Adp celebrating the tenth anniversary of its Monthly Employment report. Now the Company Rolling out changes to its report joining us now cfo of adp. Hes also a member of cnbcs global cfo council. Thank you very joining us. Thank you. Ten years ago we released the adp employment report here in 2006. Now youre breaking news right here. What are you doing . Thats correct. We are going to be augmenting and making the National Employment report more detailed. Historically we have been doing six supersectors. Were doubling that amount to provide more details. Up to 12 sectors now. I think the question everybody has is how does this report do . Does it do a good job of predicting the bls number or not . People like it when its closer. You take it on the chin. Absolutely. If you look back through the ten years, we have been pub establishing between the bls and adp, about 37,000 jobs. We have to protect 120 million workers every month, id say thats pretty good. Lets look at the longterm of this. Adp versus bls, youll see theyre on top of each other. There they go. No. Thats the close one. Thats the one on top of each other. Theres the longterm one. It looks great. Then you zoom in and you see the volatility that happens when you go month to month. In one month the bls could be at 3,000 and youre at 150. Thats correct. Its important to remember that the methodology are a little bit different b. We are measuring people that are on payrolls and the bls measures people that are being paid. So last month, for example, our report did not include the workers that were on strike for verizon and that explained a good bit of the difference you saw last month. Lets get beyond the fiscal stuff. How is the job market doing . What are you seeing in the job market . Are they really weakening as people fear . We have a very tight job market these days. After 26 quarters of expansion and job creation of 200,000 jobs a month, we see a slowing of it and we are also seeing in our data an acceleration in wage increases. So the job market is tight. I think that will cause wages to rise in the future. Lets talk about that one bullet point there. Whats going on there . Yeah. When we dissect the data and the luk at the tech sector, very few jobs have been created in the tech sector in the last few months but wages have been rising fast. So if you are a young 24yearold in the Tech Industry living in the west, your wages are actually rising by about 7 . That describes me exactly. Jan, you said the west has the strongest wage growth. Absolutely. This is one of the shifts that happens over the last ten years. We started with strong job growth in the midwest, northeast, and its shifted to the west. Youre ringing the bell this morning to celebrate the tenyear anniversary of adp. Its going to be fun. Thanks for coming. Thank you. When we return, well have more with our guest host Larry Summers. And we are live in the heart of Silicon Valley in the next half hour of squawk. Welcome back to squawk box. With an upset in the euro 2016 tournament. Iceland beating the favorite english team. The score was 21. The loss was so bad that englands manager resigned after the game. Iceland is the smallest country to qualify for a major tournament. Steve . Lets turn back to our guest host former u. S. Treasury secretary harvard professor Larry Summers. Thanks for joining us today. I want to talk about Federal Reserve policy. I thought june 15th when janet yellen stepped to the press conference and i asked her about the change in the outlook for Interest Rates and why that happened. She said because of a lot of the head winds we thought were temporary had become permanent. And that to me we thought maybe more permanent. What was the biggest step they took towards your concept of secular stagnation that i had heard since then. Is that your read of where janet yellen and the Federal Reserve is right now . Ill let everybody form their own reading of the fed and ill say this. Our economy has been growing at 2 for the last few years. Thats just about potential. The Interest Rates been zero. That suggests to me that the normal Interest Rate that goes with 2 growth isnt very different from zero. So i think its good they took it down to 3 . But my reading of the neutral Interest Rate is that its well below the 3 that theyre estimating. Do you look at what the market is predicting for Interest Rates out five to ten years from now. Its well below what theyre predicting. If you look at Interest Rates around the world, its a much lower number. So i think that theres a growing recognition of what i must say has seemed relatively clear to me that something fundamental has changed let me stop you, larry. I have to ask you. Does this do the market, does it do the economy harm that the fed has had this more wrong than it had before and still has it wrong . Do they recognize that this potential rate is not 3 . Its much lower than that. Does that matter . I think they need to be much more aware of it. Fundamentally what has saved the economy has been disbelief of the feds predictions as to what its going to do. If we had a rate structure that corresponded to what the feds plans were in december that wed have four rate increases this year, if the market had believed that, the dollar probably would have gone to a place. The market would have gone to a place. Housing would have gone to a place. And investment could have gone to a place that would have in the first and second quarters tipped the economy dangerously close to recession. You have guys who sit in this smart people saying this is what the problem is with the economy. They say the Interest Rate needs to be raised and they say that lower rates have caused a preference for companies to buy back stock and increase dividend and not invest. And the part of the problem, of course, is that people who are savers do not get interest on their savings anymore, reduces their spending. Bottom line is they see low Interest Rates as part of the problem. Low Interest Rates are in a sense part of the problem. We dont have enough spending in the economy. Because we dont have enough spending in the economy, we have no choice but to lower Interest Rates or to simply accept recession and stagnation. Thats why my emphasis for the last years has been on stimulating investment in both the public and the private sector. Look, we could issue bonds with as long a horizon as we want with rates probably below 2. 5 . At that price, it is crazy not to be doing more to support public and private investment. And thats where there needs to be much more focus on policy. Unless we find other ways of promoting demand whether its encouraging investment, whether its encouraging exports, whether its supporting more robust consumption, were always going to have a choice between low Interest Rates with the possibly toxic consequences of low Interest Rates and just running the economy for Financial Stability at the exclusion of employment stability. Larry, thanks for joining us this morning. It was interesting. Good to be with you. When we come back, dr. Love is going to be with us. What do those like Mario Gabelli do during a brexit . Well find out during the next hour of squawk box. Freshly made in the japanese tradition, each batch is small. Special. Unique. Every bowl blurring the line between food. And art. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients. Stepbysteprecipes. Delivered to your door. Get your first two meals free blueapron. Com cook. Keep calm and invest on. Stocks bouncing back this morning after a brutal twoday slide. Well watch Mario Gabelli how to play the volatility and what to do with your money. A Political Fund raiser in Silicon Valley some say dont compute. Well tell you why tim cook is hosting a fund raiser with paul ryan straight ahead. Plus the postbrexit crisis claiming for victims. The winners of wimbledon seeing the value of the to be prize getting pounded. Well hit the court as the final hour of squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Welcome back to squawk box, everybody. This is cnbc, first in business worldwide. Im becky quick along with Andrew Ross Sorkin and steve leisman. Joe kernen is off today. We are less than 90 minutes from the opening bell on wall street. We are seeing a bit of a rebound after two steep days of losses. Yesterday the dow was down by 260 points on friday it was down by over 600 points. This morning bouncing back to the tune of about 134 points. Thats how much it is above fair value right now. S p futures up by 13. The nasdaq up by 39. Also look at whats happening in europe at this hour. You see some rebounds there with the dax up 2. 25 . The cac in france up by 2. 75 . And the ftse by 2. 5 . The pound at this point has stabilized at 133. 43. Thats above where we were trading at this time. The dollar is down against the euro. Dollar up against the yen. Thats at 102. 30. Keep it all in perspective. Couple big stories were following this morning, dow chemical now cutting about 2500 jobs, about 4 of its global workforce. To take full ownership of dow corning. That comes ahead of dows upcoming merger with dupont. Also volkswagen expected to pay 15 billion to settle claims of the diesel cars. 10,000 to repair or buy back cars equipped with 2 liter deez sell engines which vw admits it rigged to pass emissions tests. Vw will also pay 2. 7 billion in fines plus another 2 billion on clean emissions technology. Nobody, though, going to jail just yet over that. And we are just 30 minutes away from the third estimate of First Quarter gdp Consensus Forecast calling for an annual growth rate of 1 up from prior estimates of. 8 . And were closely monitoring the gathering in brussels today. David cameron will meet with eu leaders. Donald tuss speaking in the last hour. Europe is ready to start the divorce process today. But i would like to underline very, very clearly without the notification, will not start any negotiations on the divorce process on future relations. Well be monitoring on the timing of the eus exit from the European Union. Right now lets get back to sara eisen in london. She just spoke to a member of the uk independence party. Cameron is off to brussels. The battle to succeed him as Prime Minister is on in this country. On thursday well know who the contenders are for the job and he or she will be in place by september. Currently Boris Johnson is the front runner and on the front pages this morning. But theresa may is emerging as a crowd favorite as well. Theyre on opposite sides of the brexit debate. She campaigned to stay in the eu. Why the politics matter so much for Global Investors right now, they are clamoring for certainty of what the country looks like outside the eu. How messy and how many compromises have been made and how long these negotiations will take. As you mentioned, we just caught up with the only member of parliament from the uk independence party. And heres how he said its going to play out. Listen. Its going to take that period of time is because we want it to work. And we want it to be done in good faith. We dont want to we could this afternoon pass an act in parliament and leave the European Union. But we want to do this in a way thats in the best interests of good will to our weve been really grumpy tenants for years. Were going to become good neighbors. Lets take a bit of time, make it work, and use good will. This is going to be good. And we are seeing a mini rebound in the british pound today. Coming off those worst levels, havent seen them since back in 1985. But the prevailing view when we talked with traders is theres still a world of uncertainty when it comes to the political and Economic Future of this country. Send it back to you guys. Thanks very much. Becky . Our guest host this morning is Mario Gabelli. Mario, i know you are a bottoms up investor, you always have been. But when you see Something Like this that stuns the markets, i just wonder how you reevaluate and rethink things. Weve been through so many of these in 1907, 1919 that was a long time ago. How about 1987 . But the point is you have a Ripple Effect, the market on friday was a combination of what happened before and what happens next. And then you just look for companies that either benefit from inflation, from globalization that have been beat up. Then you look for companies that are local. If you can find somebody in the uk that is located in the uk, and they sell something in a u. S. Country, you get the translation benefit. Just the currency. Yeah. Thats very powerful. And thats what we did. We nibbled at a few because they were thrown out mercilessly. Like which stocks . I happen to Like Companies that have Pricing Power and can do well in a Global Market place. Diaggio. I was in milan a couple weeks ago seeing them. They added wild turkey. Thats what i first started because we did all the bourbon companies. And Pricing Power and global demand. In addition to that, theres a company that brought land market to couple with aviation. The stock has dropped. Its 2 pounds. And thats interesting. You wait until friday until after the vote to buy these stocks . I wasnt waiting for the vote. I was just waiting for the price. So Value Investors look at the market and to kbif better upside. Was the vote the reason for the price . Yeah, of course. And basically, you know, all the pundits thought they would stay in and they misread whats going on in the population. I think of you as a media investor. Let me finish in terms of what i like. I like the military spending. Those stocks have come down. The notion that natos going to have to spend more money. Harris corp. Has got 125 million shares they made a wonderful acquisition. I think if you look over the next couple years, theyre going to spend money. But dont you worry that these you know, maybe brilliant bottom plays right now but it keeps prices . Doesnt matter. Im buying a business run by good management. Wheres the better way to earn a return for my clients . Weve done this now for 39 years. I dont worry about the backdrop of the market. So we try to balance, we try to be 100 invested. Were not in fixed income. So yeah were worried shortterm because theres a school of thought that says risk on, risk off. We are basically value guys buying at a discount. And when markets give says down 20 or 30 , this is interesting. So value guys like the chaos because its the babys going to get thrown out with the bath water. Among other things. Theres an old saying on wall street. You buy when theres blood on the street. You bought argentina before marco came in. Theres no question daily when you go in and you see this Ripple Effect and you have all of these dots of uncertainty, what is going to happen in italy. When i was in rome a couple weeks ago, you had get elected. What does that mean . What does it mean . What happened in colon . How important was colon to the whole process . So you think about these things. Thats a great argument for names like a diaggio or some of the names traded in london or italy. Those markets got hit hard. We lost 900 points on the dow but we were at high levels. There are certain sector it is we have compounded accumulated. At the margin was dealing with the military. We dont focus on the lockheeds. We focus on the ones that are ignored and unloved. Not that harris isnt ignored, but you have a stock to make market cap. Look out two or three years, given what i expect the new administration is going to do, what i expect on military spending and space and technology, this is an interesting company. I like an example. The stock dropped down to 36. I bought it when it was seven. Because they had finance subsidiary like ge had at the time. Sop you look at these things and our average turnover is 10 . We love them and love them. We want to make love for a long period of time. Does the political backdrop in the u. S. Have an impact . It has an enormous effect in terms of how do we create jobs . How do we create growth . How do we deal with the student loan issue with regards to the millennials . How do we get them in the game . How do we get them back in the capitalistic system . What happens to the 1. 4 trillion of Student Loans . That is a major overhang. We have to solve that. We have to solve the issue of taxation at the corporate level. You cannot be competitive with territory global taxation opposed to territorial. You cant allow hedge funds to have carried interest. You have to have a change in the tax rate. Yeah, theres a lot that has to happen. Andrew, back to your point. I wanted to touch on media because there are two companies in particular that have been hard hit postbrexit. One was discover communications. The other is fox. Yeah. I basically look at the Global Market place and look at content and distribution. From a distribution point of view, weve talked about companies that will become part of another company in the past three years. In terms of the discovery, made some acquisitions in europe. Hes got some shortterm hiccups. Over the next five or ten years thats going to be do you say to yourself buying opportunity . Ive been nibbling as a shareholder. I would do the same with fox if i ever get that blue person back on the screen. That movie. The blue person . Dont you remember the movie . 3 billion. Avatar. Was that in . Kblu people. You look at a company like mermaids. I think they did about 500 million at the box office in china. And that Chinese Market is going to boom. You go in the world, they want a travel and experience. Movies are a great outlet. In terms of content, what other Financial Engineering dynamics will occur . What is dr. Malone going to do next . We fortunately had cable vision and that deal was done tuesday, i think. You dont look at the worst Case Scenario in europe and say if there was a splintering of europe it would make it harder for Media Companies to succeed. Theres always sort of subsidies for different production arms. Discoveries, benefits from that. None of that math matters to you. It does. You will say there will be winners and losers. Thats part of that. Who are the smart managements that understand scale and how do they deal with the changing environment . We always have changing environments. Thats the beauty of american management. Flexibility, durability, and part of the process that works. And so do i worry about it . Sure. Do i care about market to market every day . Yeah. My clients do. I run 2,000 customized portfolio managers. Our utility funds are up. Our arbitrage continues to do well. When you have stocks that go up and down daily and youre market to market daily, that is a challenge. And doing absolutely nothing different than weve done for the last 40 years. Just edging out cyber security, military spending, you know, the Housing Market weve had competency in for awhile. And theres a whole bunch of companies that are poised to do Financial Engineering and be taken over. You came in on monday. Hardware was down to 30 and down 3 on friday. All of a sudden somebody bids 58. How do you find these . How do you find the nuggets the object of someones love making . On that note, we will put a hold on things. Mario is our guest host. On love we will stop. More about love making in a bit. All right. Coming up, is lyft looking for a suitor . Investment bank known for finding buyers. That story next. Plus, apple ceo tim cook hosting a fund raiser for House Speaker paul ryan. Details straight ahead. Welcome back to squawk box this morning. David cameron arriving in brussels a few minutes ago. Wilfred frost is there for us this morning. Wilfred . Thanks very much. Yes, just about ten minutes ago David Cameron arrived here in brussels. The anticipation before his arrival significant. He arrived quickly pausing to make a quick statement. Lets listen in. Ill be explaining that britain will be leaving the European Union but i want that process to be as constructive as possible and i hope the outcome can be as constructive as possible. Because of course while were leaving the European Union, we mustnt be turning our backs on europe. These countries are our neighbors, our friends, our allies, our partners. And i very much hope well seek the closest possible relationship in terms of trade and cooperation and security because that is good for us and that is good for them. Thats the spirit at which the discussions will be held today. Of course, no small task to make clear to the other leaders of the 27 states that britain does not want to turn its back on europe. The sentiment, of course, of the last few days following this vote not going down well here. It will be interesting to see what other leaders say on their arrivals and the consequences of this meeting. David cameron there arriving in the last ten minutes. Okay. Wilfred, thank you for that. Of course well be checking in with you a lot more. In the meantime, with ept to change gears now. Tim cook hosting a pretty interesting fund raiser this morning with paul ryan in menlo park, california. The point tim cook could be making is yes apple stands opposed to donald trump but not the gop. So tim cook is hosting this private breakfast here in menlo park, california, this morning. Hes going to drum up cash for Speaker Paul Ryan as well as a Fund Raising Committee to help elect other house republicans. Apple does not have a Political Action committee. Cook is hosting this fund raiser on his own accord. It takes money to run for Office Especially for National Office and this is one way they can be helpful. They can open up their contacts to the member or the politician and in exchange they presume that they will at least get an open door, an opportunity should they need to call in a favor to express their views. Its especially important for cook to host this breakfast with ryan given how tense it is with trump. Trump has developed more of its products here in the u. S. He also called for a boycott of apple products after the Company Refused to help the fbi to unlock the phone of terrorists. Apple is not going to be donating technology to the Gop Convention in cleveland. A company declining to comment for this report. Back to you. Thank you for that, josh. Appreciate it very much. When we return, fallout from the brexit hitting the tennis courts. Champions of the wimbledon tournament seeing their prize money shrinking by thousands of dollars. Well tell you about that next. Welcome back to squawk box this morning. Looking up first time in awhile. Dow looks to open up 150 points higher. S p 500 looking to open 17 points higher. And the nasdaq up about 36 points higher. The question is whether were putting a floor into whats been going on the past couple days following protectibrexit and wh going to happen later today. Youre looking right now at european markets and they are up as well in a big way. We are feeding off of that. Cac up almost 3 . Everything else up over 2 . Italy which had been down now up at least 4 . Whats going on in spain over 3 . Strengthening despite your peddling in the New York Times this morning. Just wanted to lay it out so people understand. Going through the permutations. Let me go to the next story here. Is lyft looking for the Catalyst Partners . Best helping Tech Companies find a buyer. This according to reports from the wall street journal. This may signal the company is open to a sale or looking to raise new funding. Raised about 2 billion so far. Less than 1 6 the total funds raised by uber. And check this out. We got here jay leno flips in a stunt car while filming an episode of jay lenos garage. That was not intentional, i imagine. Wow. I dont know if you could do that intentionally. You got to really be good at it. The comedian hopped a ride for a twowheel stunt with 80yearold driver bob riggle. Luckily nobody was hurt. The episode premieres tomorrow at 10 00 p. M. On cnbc. Want to see that. But fortunately they were wearing helmets. They were okay. Lets tell you about some fallout from brexit. It is hitting one of the biggest tennis events of the year wimbledon. The prize money is shrinking by the day. Thats because its paid out in pounds. About 2 Million Pounds for the mens and womens champion. Last thursday that was equal to around 3 million. But when the uk voted to leave europe, the pound lost 12 of its value in just two days. That shave about 260,000 off the top prize. So yeah. Hold your breath. Coming up when we return, breaking economic news. Were minutes away from the final revision of First Quarter gdp. Take a look at u. S. Equity futures which at least for now look like they put in a bottom. Well see if that stays the case in just a couple minutes. The heirloom tomato. Intenselyflavored. Colorfullydiverse. Beautifullymisshapen. Cultivated for generations, its the unexpected hero of any dish. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients. Stepbysteprecipes. Delivered to your door. Get your first two meals free blueapron. Com cook. Welcome back to squawk box. Some news overnight from new jersey. The state assembly reaching a deal with Chris Christie to a 23 cent gas increase and sales tax cut. If the state Senate Approves the tax hike, it could take place on friday. The tax revenue would be used to replenish new jerseys Transportation Fund which is on track to run out of money this summer. New jersey currently has the Second Lowest state gasoline tax in the country at 14. 5 cents per gallon. Only alaska is lower. Im getting to the point im not going to fill up in jersey anymore. Fine. Then you dont get your tank filled for you. It makes no sense to get a price cut. Lets get to rick santelli. Were seconds away from the final revisions of First Quarter gdp. Were looking at the last time around the block. The third look and its upgraded by. 3. We cracked the handle. But we all know how the game works. Its an averaging process. On the consumption side, a bit of a miss. 1. 5 . Thats. 4 lower than expected. On the pricing index, up. 4. Thats. 2 light. Personal consumption, expenditure on the core is 2 on the nose. Also. 1 light. Maybe corporate profits is what we should be looking at. In this regard, we get a better number. Were looking for something around last look. 6. Maybe you multiply that by almost four. Up 2. 2. Well, bonds, theyre cracking. Theyre holding at 2. 25. Never really violated it yesterday. Thats the long end. Were about to overtake 1. 5 on tens and of course the brexit story is a big story. It will continue to be a big story. My opinion, lets see what brussels does. Comptroller fate, i think if they act tough to the uk, i dont know. I dont think thats going to be something that the rest of the countries are going to be all that enamored with. Thats going to be the story for the next couple of months. Back to you. You mean the other countries inside the eu, they wont be enamored if theyre trying to crack down . Listen. I dont think any of the governing politicians across the globe are reading any of these tea leaves correctly. Theres an anger out there and its directed at them. And their hubris after the vote that theyre going to have leave remorse, even the notion of 50,000 brits going to be campaigning or having a rally for remain. Millions of votes were cast. Im sure its not a problem to assemble millions on the other side. But the people have spoken. Trust me, i dont think the people have voted for leave are going to surrender. To them its not about a couple of quarters of gdp. Theres bigger fish to fry. Back to you. All right. Rick, thank you. Lets get back to Mario Gabelli. Steve, youre pointing. What are you pointing at . Yeah. Just real quick he liked the word fish to fry. No, no, no. I want to talk about you have a worse consumer in here but a somewhat not bad Business Investment number. You cant say anything good about 1. 1 gdp number. But what they did was say it had been down 6. 2 now down 4. 5. Rick pounted out consumption revised down. The trade number is the reason why this is a little bit better. This was the same number that cnbc update had. They had 1 , that was our average going in. But were still on track for a 2. 5 second quarter. So rebound appears to be intact. Okay. We have mario here. We havent touched on one topic that has nothing to do with brexit but we have to touch on it. Viacom. The open opera that is viacom. Its basically game of thrones and the final episode coming down to the end. It comes down to the courts. I think the notion of yesterday somebody quoting one of the lead independent directors about something and saying he wasnt willing to allow another director to meet. Just call him and ask him. Did he say that. Heres the question though. How much of this is a conversation about the fiduciary duty that Sherry Redstone or sumner has, just on the merits going on there. And how much of this is about this other idea that there is somehow a coup taking place. Thats interesting. But from my point of view you go to fundamentals, youve got 45 stock. Its 18 billion. You add the debt its 30 billion. Youve got a hundred million of cap x. But going to your point, should a company that has an ab stock like we do, if you go below a certain threshold in economics, should that b stock be changed . I had a Company Called media general where the family owned 3 and controlled the board. I have the same issue with scripps broadcasting. And viacom they own 40 million of the 410 of the stock. Basically they control 80 of the vote. Sop what do you do there and how do you deal with that . And the answer was we were buying it knowing full well that was occurring opposed to some companies that changed it unilaterally. Thats where you watch the Chinese Companies and what they do. In addition to that from my point of view, has 80 of the vote. Suppose sumner said i want my family to run the business. Have 80 of the vote. You knew that in advance. You knew the trust had this and that. You knew they control both the companies. Are you suggesting they did a bad job of keeping les at cnbc . No. Youre focusing on viacom and your question is what do we do next . The fault i have with management is they never disclosed until they came out with the litigation. They never discussed with Sumner Redstones health . No. But is there a negligence story here oh, stop. No. I mean in this day we live in, how often does this happen . Does a company this big not prepare for succession appropriately in a way that doesnt lead to this mess . Why is that not negligence on somebodys part . Oh, whatever you want to say. Thats what i mean. Seriously. Thats your point of view. Whats your point of view . Im giving you point of view. This is perfectly normal . There is succession. Right. And how does it fall apart . It falls apart because the owner of the company says i have a different you think philippe should run the company . At the moment ive given him a period of time and well see what the courts say. Let me ask you you keep trying this. I keep telling you. Lets have a cup of tea. Do you feel comfortable with philippe and some of the other Board Members using the company meaning viacom is paying their legal fees to effectively sue the overlords, if you will, that are the redstone family. Does that seem fair . Are you happy your shareholder money is being used in that way . Im assuming that its 20 million. Im assuming thats 4 cents a share. Its not material in the context. What im hoping on is that they basically have a focus going on over the top, getting into distribution, coming up with a better capability at paramount and thats the notion of background noises is something you guys like to write about, talk about, and think about. Its part of your culture and ecosystem. Youre the one that called it game of thrones. Thap is implicit of an archaic, out of date game of thrones. On the last episode, all the women won. All the women won. Dont say that. People may not have watched that. Theyre on horses. Whats wrong with a woman owning the company . Nothing. Theres no internet there, buddy. Sherry redstone wins the game no matter what . She has 80 of the vote. So its over . Look, the sequence is fairly simple. Even the blind guy from mars can figure this out. You start at the top, get rid of the directors. Abrams and philippe. You then go to amusements, get rid of directors and put your allies in. You had to understand that that was part of the process. Now the question is, how do what do you do . Wait a minute. He wants to make a point. No, thats it. If thats the case, why arent you why are saying you dont philippe spending your money to be blocking this . Because this was baked in the cake from the beginning. Its background media noise. Because you dont know how the courts are going to rule. Exactly. We have a process. You want alibaba is coming in now youre suggesting, stealing here. Have a cup of tea. Lets calm down and keep calm and carry on. No, no. Thats not tea. Its whatever they gave me. What are you drinking . I have no idea. Its ice water. So youre saying the courts are going to decide this. You want to see them decide hit quickly more than slowly. Yes. Unlike brexit they do two or three years. Hopefully this will be resolved in here. And it is an important part of the process from my clients point of view. What are we going to do . Say noise . We basically are cheer leaders for the values of the company. And theyre going to be unlocked. Have you bought more stock . Have you sold any . Neither. The viacom voting stock is trading at about a fivepoint premium. And you know, probably 20 premium is where they could convert over to an a stock. You want an ending. I know. The seasons over. Is there another i would think that within six months this will be resolved. Six months. And how . I dont know. Whats the finale . You just said you know what happens. You said she wins. You know, breaking bad had an end. Sopranos had an end. Game of thrones is ongoing. Therell be another season. And is the court in massachusetts going to hear it . In l. A. Going to hear it . What are the issues . Mario, seven blessings to you. I like that. Youre welcome. Coming up, we have more from our terrific guest host here. But were changing the world by giving a voice to the voiceless. Operation hopes John Hope Bryant will join us. Well get his take on the race for the white house and the business of inclusion. As we head to break, take a look at futures. Pretty strong this morning. A nice bounceback. Welcome back to squawk. Those that are feeling left behind are playing a larger role in the president ial season. John hope bryant. Operation hope represents paips in more than 400 u. S. Cities and has served more than 2 million clients. Were happy to have him here. You left a voice mail on my phone talking about the president ial election. I dont have your phone. Somebody else called you. That was not you . Sounded like you. In terms of how you think about this Underserved Community that you try to serve and the role that theyre playing in the election and how polarized its become. Yeah, i mean, whats really interesting is that for a long time lets just say, for instance, this generation has had in urban america reverend al sharpton as their voice for the disenfranchised. Rural White America, high school educated, struggling with the Industrial Revolution falling away, they now have donald trump as their voice. Its a voice of it is unfortunately articulating some nonproductive ways. But you have rural White America now has a spokesperson, if you want to call it that. I dont think its very productive conversation. But what it speaks its not about him, really. Its about pain. Its about whether youre white, black, red, brown, or yellow, today you want to see more green. I was in talking to your the people in makeup. When i came in before they talked about the kardashians or whatever going on. They said tell me, my mortgage rate, i need that down. The Student Loans is crazy. I need to get my income up. You know, today, you know, theres nothing that changes your life more than god or love than moving your credit score 120 points. And people are focused on what i call silver rights not necessarily civil rights. Its class and poverty. Its being spoken to negatively. And then youve got the disillusionment of young people and lack of hope which another candidate spoke to. And even brexit. Thats also about really white traditional economic pain and feeling like immigrants and others are taking their stuff and closing borders which wont work. But its really a global phenomenon. So how do we change it though . And when you look at this particular president ial election, hillary to a large degree represents the elite and theres a pushback just on that to itself. So youre sort of suggesting you dont like trump but i dont know where you are politically. And you wont find out on this segment either. I think that my job is to be switzerland with a purpose. My job is to be the big tent where everybody can come. So republican and democrat, blacks and whites, rich and poor, rural and urban. I think i cant take sides. I will tell you when i think somebodys on the wrong course. Ive given some suggestion. You also have some idea about peoples orientation towards their problems. A different way of thinking about issue. Yeah. We got to figure out what people are for, not what theyre against. The gdp to unlock the wealth. 70 of this economy is consumer spending. You live in new york city making 70,000 a year. You live in atlanta making 50,000 a year you struggle. You live in a small town making 20,000 a year youre struggling to make ends meet. You feel black even if youre not. A guy with goldman and a guy name sachs, every big business was a small one. We need a million startups. We have 400,000. We have more Small Business deaths. We need these kids in the south side of detroit to not look at being a drug dealer but being an entrepreneur. But so much of the conversation has been not about the two gentlemen who started Goldman Sachs but how bad wall street is. And how bad the Tech Community is. I dont want to deal with that and their perception. I think that persons about themselves. I think america has to remember her story line. Shes got to remember that we came from nothing. That all of us are immigrant. The only person not an immigrant is a native american. Everybody else got on the wrong boat. Or got here and struggled hard to make something. Every big business was a small one. We got to create Small Businesses and entrepreneurs which is what were doing in cities with hope inside. Make it tough for you. Tell me which candidate you think right now is at least addressing that issue. I think theres only one candidate whos even talking common sense right now. And the fact that i havent said the name speaks for itself. You talk about Women Empowerment, i mean, we about to have we might have some Women Empowerment in the world. In europe you have a great leader of global economy. Its the chancellor of germany. Right. But look but just look at whats going on over there, whats going on over here when it comes to people who have been in power. The feeling that those who have been in power have not brought the rest of the country and the rest of them along with them. Let me answer this directly. Fundamental populistic and i dont mean to demean it by saying its populistic, but thats the question. How people grapple with that. Its the right question, wrong answer. People who voted brexit googled the next day whats the eu. Its ready fire aim. But anger is not a strategy. That was only about a thousand people. Its a thousand people, but if you who googled it. Most people vote dont know what google is because its a generational issue. I think that we need to look at my point is that there is pain in the world and people dont have an answer. What im suggesting is a practical answer. As an answer that actually can be answered which is raise Credit Scores because middle class neighborhoods dont riot. Get Credit Scores up. Then create gdp in jobs. The best way to stop hopelessness is start Economic Activity and ownership. And we need solutions to lets give a tax break for Small Business creation and entrepreneurship in these neighborhoods entertaining ship in these neighborhoods. Lets create internships that give these young people, urban and o and rural in a lot of these corporate suites. Theres frustration, theres huge gap between the classless, and those here in power. But the answer is more practical. Thank you for offering us a little bit of hope this morning. A lot of hope and a lot of jobs ande entrepreneurs come bak to america. I agree. When we come back, well talk to jim kramer from the new york start exchange. Well get his take. Take a look at the futures. We are in the green. Dow looks like it will open up 173 points, s p up about 18 points. Are we building here . Well be right back. Shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. When a moment turns romantic why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card. Lets get down to the new york stock exchange. Jim kramer joins us. I just saw buddy ryan passed away. A great man. I went to a game in vorhese. He was a faithful grandfather, saw his grandson play, cheered for his son, who was at that point, you know, just was doing everything he could with the jets. This guy was an amazing guy. I know that we saw him in the bodybag game in the eagles, saying what a tough guy he was. He was a great man, great grandfather, and people loved him. Loved him from the bears. He did it privately. I saw him at games. Hes a good guy. Were going to miss him. Yeah, lets talk about the market rebound this morning. Not a huge rebound when you compare it to the losses when weve seen on monday and friday. What do you think, is this stabilization or not . I know this is going to sound nutty. As much as overseas matters, the algorithms are tied to oil and if oil is up people feel theres less chance of recession and Interest Rates are going a little bit higher, and gives the banks a little bit of breathing room. What you have is the nature of a rally that could last, if only if oil stays up. Tomorrow we have inventorienven. I think theyre going to show share a little bit lighter. You might have a little bit mome moment momentum. I do feel that that if we stay focused on what has mattered before, which is oil and earnings, then were going to want to get involved with some of the stock market. Jim, thank you. See you in just a couple minutes. Thank you. When we return, we have much more from our guest host, and well get his postbrexit stock picks. Squawk box will be right back. Owen hey kevin. Hey, fancy seeing you here. Uh, i live right over there actually. Youve been to my place. No, i wasnt. Oh look, you dropped something. Its your resume with a 20 dollar bill taped to it. Thats weird. You want to work for ge too. Hahaha, what . Well were always looking for developers who are up for big world changing challenges like making planes, trains and hospitals run better. Why dont you check your new watch and tell me what time i should be there. Oh, i dont hire people. Im a developer. Im gonna need monday off. Again, not my call. Steve, other than making im here atme move stuff,rade trader offices. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. speaking japanese oh watson, your japanese is very good. Thank you. speaking japanese exactly. I can understand nuance, context and idiom in seven languages to help companies all over the world with everything from retail solutions, to banking, to cyber security. speaking japanese lets get some final thoughts from our guest host, mario gibelli. Nix made a great trade s that a good reason to buy the stock . Im worried about his dur ability. I like what he brings to the table. And the stock at 170, im getting them for free. When i look at 125 million shares, with Everything Else they have. Sony. Youve got to buy it. Theyve got a billion 2 shares. Has is doing an interesting job. The censers in japan are doing well, and theyve got good technology. They need to have a little bit more input in the movie business. Youve got to buy it. Now, you have a basket of utilities. Any one particular . There were seven deals. And basically the concern is Interest Rates. Theyll be a consolidation as ive been indicating between el paso electric, and public of new mexico, so you want to own those two. Public service, p and m, pe, and el paso electric. Direct tv . Thats gone. I own telephone and i have kept my taxable clients and unwinding that now just because thats too big a company for us to own. And from our point of view, in the spectrum area, well see the end of the auction and im buying scripps, which has a meeting tomorrow. Give us one you havent made your mind up. Theres a lot of them. Give me one. Comcast. Its been great. The roberts have done a fabulous job. Give me one youre really looking at. You had black and decker. My analyst loves it. You havent decided yet, weve got to go. Thank you for helping us. Appreciate it. Make sure you join us tomorrow. Squawk on the street begins right now. Thank you, sir. Good morning and welcome to squawk on the street, were live from the new york stock exchange. Carl has the day off. Lets give you a look at futures as we are perhaps seeing a bounce. I say perhaps but really i think thats a pretty definitive bounce right now as we look ahead to the open this morning. Of course you can see all the major averages up rather sharply. Europe, as you might expect, also in the green. Lets take a look, and you can see again, not making up, in any way, the