Terror attacks down by just 0. 25 . Breaking overnight, saudi arabia, the United Arab Emirates, egypt and bahrain severed ties with qatar. Now, theyre accusing the country of supporting terrorism. The gulf states said qatar support of the Muslim Brotherhood threatens National Security because the foreign minister has said the measures are uninjured based on claims that he says have no basis in fact. Takes a quick look at crude prices. Wti at 47. 84. We will get a live report from dubai in just a couple minutes. In london, as you know, on saturday, seven people were killed dozens were injured when three men drove a van into pedestrians on in this case, it was the London Bridge then attacked people with knifes in a busy neighborhood. Its the third terror attack in the uk this year, comes days after manchester and just ahead of thursdays parliamentary election. Lets get to wilfred frost in london good morning, will. Reporter good morning, joe. Seven people dead, as attackers crossed London Bridge and stabbing further individuals in Borough Market just behind me. Weve learned this morning from the met Police Commissioner that the identity of all three attackers is now known. And that they have a Domestic Center of gravity, they were not from directly overseas. This is the third attack in the uk in the last 73 days. Theresa may said that they are not directly linked. But that they were, quote, bound by a single evil ideology of islamist extremism. And she added that enough is enough. Theres far too much tolerance of extremism in our country. The other thing she confirmed yesterday, of course, that the election will go ahead as planned on thursday. Campaigning picking up in earnest once again today. Theresa may will go after Jeremy Corbyns perceived lax on terrorism. And corbyn blaming may for failing to be conservative. And criticizing theresa may for making cuts in the Police Budget in 2010 to 2016. Sadly, these arguments have been used after the Manchester Attack. What does it mean for the polls . Its a clear trend. The momentum continues to gain for Jeremy Corbyn and the labor party. However, theresa may remains in the lead. The polls put that lead between 1 and 12 points depending on what you look at. The ft poll of polls summary in the last seven days puts her lead at 9 points 44 to 35. The Market Reaction this morning, relatively new. The pound now flat, having flip slipped a little bit over the last 24 hours, guys. Wilf, there you are again. Over there. But, you know, we cant help but think, wilfred, you know and have seen numbers of jihadists in the uk. And its got to be on peoples minds. And anybody can rent a van, anybody can have a knife. I mean, its just i mean, enough is enough. But i dont know what that means. Enough is enough. Reporter well, absolutely right. And thats the question thats going to be thrown at theresa may during the Election Campaign. In 2016, she used a similar phrase saying the game is up for terrorists when she was home secretary in labor. Saying shes someone who is full of talk and lacking action in that particular regard and lacking results. The other thing id say three successful attack information the last three months has also confirmed there were five thwarted attacks in that same threemonth period. As you say, the battle is significant. And its hard really to stop depending on what weapons are being used. Hey, wilf, theresa may as home secretary wanted to do something that would go after islamist extremists. At that point it was seen too extreme and something that the society wouldnt accept. Would you say that the tone or tenor has changed there is that a move that the population would accept or not . Reporter well, i think youve definitely seen the right wing papers like the daily express and daily mail playing that up significantly very easily saying theyre backing theresa may because of it. I feel now that there is a senses that maybe one attack or two attacks in the first couple of months, march and recently, were felt as a coincidence. Perhaps the third one now people are starting to say this is a trend. And therefore more open to more being done. The question, of course, how it plays out. And labor are able to suggest theresa may cut Police Budgets. And shes finding it difficult to answer that question even though her intentions as you rightly suggest were to increase powers. So its slightly muddy waters in terms of the political debate. But people certainly getting fed up with this. And the fact that there are such repeated attacks. 23,000 a real number, wilf . Nobody knows, i guess. Reporter again, thats a difficult number to pin on specifically. And there are many, many Different Levels of people that are being monitored by Security Services and questions that continue to go on about the level of knowledge that the service has specifically about these three attackers. Who they said were homegrown more than from overseas. Question the police dont have the resources to monitor 3,000 people, 24 hours a day, much less 23,000. I dont know, cow muld you moni 500 people 24 hours a day . Reporter it is very difficult, indeed. And there arent definitive answers yesterday. Im sure there will be investigations. Theresa may making it clear, if hes reelected, she wants to announce her review and increase the powers out there. That includes entinternet and security dpirmfirms. It takes the focus away from topics like brexit which she wanted this election to be about and the one off how shes seen her lead slip significantly. You watch peoples activity see if theyre looking up bomb making. You make sure theyre not buying materials. Knif knifes and a van, i dont know, wilf, its just very disconcerting. And these guys they keep moving with the attempts to thwart what they want to do. And theyre one step ahead. And its its unfortunate. Reporter absolutely. And i think, as you said, knifes and a van, very, very hard to track. One of the reasons that we saw the Terror Threat elevated after the Manchester Attack from severe to critical was the fact that an attack got through successfully using a bomb which had previously been thought to be easier to track ahead of the event and therefore thwart such attacks. Clearly, the threat level remains told, having been lower a week or so ago back to arriving at severe. So, as you said, very hard to stop this attack. But it hasnt been elevated back to critical which would suggest a threat is imminent, as opposed to likely. It should have stayed at critical in hindsight. Reporter potentially, and that particular part of it has not been politicized bought its a decision of the jtac, the joint terrorism attack center as opposed to theresa play and what that level is. Well see you, wilf. The Trump Administration is kicking off infrastructure week. For more on todays top political stories, lets get to eamon javers. Good morning, becky. 9 trump a the Trump Administration wants to talk about infrastructure this week. Theyve got a weeklong series of events planned. Youll see dueling events from the Trump White House and also a lot of russia here. We saw some news last night from Vladimir Putin. He sat down with nbcs megyn kelly. She asked him about reports that Jared Kushner, the president s soninlaw and Top White House aide had tried to set up a back channel with Vladimir Putin himself. Have you gone back and discussed what were the conversations with Jared Kushner or anybody else from the campaign. Translator no. Never . Arent you interested. Translator no because anything significant, they would have reported to the minister. The minister would have reported to me. They werent in any reports. Theres nothing to even talk about. So Vladimir Putin says theres nothing to even talk about. James comey, however, may have something to talk about before he testifies before the Senate Intelligence committee. That comes up on thursday, june 8th, later this week. Youll see what mr. Comey has to say, hes apparently been cleared to testify by mr. Mueller, the special counsel in this case. So, well see what level of detail hes able to provide with his conversations with the president of the United States. And whether or not the president tried to shut down his investigation into russian interference in the 2016 election. All of that coming as the president today is going to unveil his plan to more or less privatize the air Traffic Control system in this country. And later on throughout the week, theyre going to have a series of events traveling the country, walking about waterways, highways and all of the infrastructure that this administration wants to focus on, guys. And well see the headlines throughout the week. Eamon, thank you very much. Back to the broader markets. We have joe orlando, senior portfoliofederated. Why did an Department Store have an investment . Thats a question ive asking for years. You should work on Department Stores and malls. Federated became macys. Its no longer. Okay. I keep reading trump trade is over. You pull in your horns. I look at the s p is that a misprint, really, 24. 39, it goes up every day. How many new in the last month . Almost every day. Since easter. Thats the dichotomy. You open up the newspaper, you flip on the tv. We read about russia comey, the fed, impeachment and you look at the markets and were hitting new highs every day. So, youve got this dichotomy where the media is not focused on what we think are reasonably good underlying fundamentals. And again the potential for structure policy reforms actually happen. But, phil, even those prospects, we keep reporting how dim it is. We just had richard burr saying no obamacare, did diddley in 2017. We hear that the main reforms are doa. So, everything appears to be watered down but the market keeps marching forward. Well, we dont necessarily ale agree with that. We think that behind the scenes that congress is working on the transition from the aca. We think theyre work on tax reform. Really . Really . We do. Those guys are actually doing something . The reality is that the republicans in congress, and understand its like herding cats right now, i absolutely concede that point, but they realize if they literally get nothing done by the midterm elections next year, theyre done. Theyve missed this window of opportunity. So, we think by the spring of next year, were got to see something on these issues. Take a look at the dollar. Yeah. Take a look at Interest Rates, take a look at high tax low tax. Companies, take a look at the broad market picture. Weve got international stocks. Expectations for fiscal easing in the United States are very low right now. Now, thats a significant risk to the bond market later this year because it will only take one successful round of votes to change the outlook. You can have all sorts of failure between now and then. The bottom line is the world has looked good. Weve seen modest trade growth around the world. We said at the midyear outlook, weve had an absence of stocks and stimulus, but looking better than we have in recent years. The fed is not going to present a problem . Well, look, theyre going to tighten at a time when we havent seen upside surprises. This is right in the middle of year where economists tend to overestimate shortterm economic data. You can see this in economic surprises, suddenly going down. But i think theyre going to go very slow. 33 Just Announced on their Balance Sheet they plan to completely defund their process. Theyre going extremely slow. The tightening cycle is half of the average tightening cycle so the world can handle it. What about on friday . I think its a modest disappointment, what do we see in the middle of the year . Weve had zeros for some of the middle of the year periods and we end up with 200,000 on average over the last few years. Joe, just to make the point, the adp number and claims data which are indicators were very strong. So, while this trend over the last two months on nonfund payroll, the softest in years we dont think that the labor market is dead. The leaders are telling us that the labor party is healthier and heldier. Its harder and harder to find applicants for jobs. Thats one of the issues. The other issue that we identified with 9 weakness in the nonform on friday to some degree there is a chilling effect, that businesses are waiting, you know, for what is the structural fiscal policy reform. Anecdotally, we have heard that from ceos. You look at employment reports in last few years, we do great january, februarys. And none of the data, as you said, phil, on claims date. I dont dispute the gop wants to dough something and needs to do something. The question i have is not even whether they will do something. I imagine they will do something. The question is whether it will be enough to warrant whats going on in terms of whats happening in the markets now. Well, so, lets look at the numbers then. Corporate earnings on the s p was 118. Now, as steven correctly pointed out, we just had the best domestic quarter in five years. Europe, we just had the best quarter in seven or eight years. Were going to do 130 in s p earnings this year just in fundamentals. Thats on fundamentals, thats not about what happened . No, but the point is if were able to get structural reform. The leverage factor for every one percentage disappoint declined in the Corporate Tax rate adds about 1. 30 in earnings. If we take the rate from 35 to 20 youre able to add 20 in corporate earnings. If i told you that the corporate rate was going to be 27 . Okay. And i can guarantee that to you right now. Thats all youre going to get. You would say thats a good thing . Thats a good thing. Stock market is going higher. 27 . Right. Its basically nothing right now . Correct. And there are people like buffett that say Corporate Taxes arent the issue, that health care is the issue. Yes. So, do you think and we saw them say about the ah whatever the hell its called that thats going to be put off. The market has nothing. If you said theres no tax the market would plummet no, no. From a fundamental story. Its not a washington story. But its also look, its either the trump trade or its not. No, its not. It can be both. Global markets are not reflecting the trump trade. Hey, so, is it too narrow . Id like to see that broaden out. In technology, we think theres a Technology Upgrade cycle coming if we can get some of the structural form done. You need to add c. The british Prime Minister theresa may is speaking right now. Lets listen in. I believe it will be essential for the British Government to be in the strongest possible position going into todays talks. That remains the most critical issue in this campaign. But, of course, when this campaign started, we could never have predicted the tragic turn of events which it takes. We could never have imagined the appalling depravity that led a killer to target innocent men women and children the way we saw two weeks ago. Nor could we have envisioned the brutal attack carried out on the streets of london on saturday evening. We continue to hold all of those affected by both attacks in our thoughts today. And let us also continue to think of the brave men and women that the police and in whiemerg services who continue to deal with the aftermath. Many of whom will have witnessed things that no one should have to see. But when it was right that we should cause to show our respects those weve lost and make sure all of our energies are focused on responding to the immediate afterthought of those events its our right that democratic process should go on. That is why today, i want to return to the choice that we face in three days a time. And to the crucial because thats what this election is about. Its about which leader and which team people trust to make the Big Decisions that matter to britain. Its about which lead to which team and which leader will deliver Economic Security four and your family. And about which leader and which team will travel to brussels in two weeks and will negotiate the right for position in europe. But the question of leadership has always been at the heart ever this campaign. And it is absolutely crucial that we get the answer right. The ability to say the courageous thing and do the difficult thing. To face up to and address great challenges, not to pretend they dont exist or seek to wish them away. The strength to be straight with people and not just tell them what they want to hear. That was theresa may talking about what took place over the weekend and what she hopes to achieve. In the meantime when we come back, a downgrade for apple. Plus, were getting a live report from dubai on the growing rift in the arab world. Squawk box returns in just a moment. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of 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 . Why invest in average . A used car, welcome back to squawk box this morning. On todays agenda, apple is hosting its annual conference for App Developers ceo tim cook will give the keynote address at 1 00 eastern time. Ahead of that e