710ths green arrows for major in deksz. Ftse up. Germany, dax up. Gains in france after the French Election there one of the biggest majorities theyve seen in post war france. You can see crude oil markets up slightly still below 45 a barrel following developing story from london, a van plowed into a group of pedestrians outside a mosque injuring ten people it happened as worshippers were leaving evening prayers. Metropolitan police say the driver of the van was taken into custody and theyre treating the incident as potential act of terrorism. Almost one year since britain voted to leave European Union. Formal brexit talks begin today. David davis is meeting with eu chief negotiator in brussels that kicks off the process that must be completed by march, 2019 discussions come less than two weeks after Prime Minister theresa may and her conservative party lost the majority in parliament, adding to further uncertainty when it comes to these talks. And becky alluded to this in other political news in europe, french president emanuel macron Central Party scoring a victory in yesterdays second round of parliamentary elections, despite low turnout. Macrons party has majority in Parliament Campaign promises, improving frances economy and restoring influence in europe. Like a euro party. Unseated all traditional parties there. They do a lot of things that probably arent the greatest way to necessarily run a country can you imagine us starting a Political Party within a year gets majority of, i dont know, other parties are so crappy that just any up start can come up and this is throw the bums out. I know. But can you imagine, we had i thought you would be into this we had wigs, but we have the tea party, but dont look, donald trump is not exactly mainstream republican, brought in a new crowd of people right not so different. I think this gives him because it is a big majority, gives macron the ability to bring in he was a banker but he was like his mentor was the guy that raised taxes to 90 . But in france, i dont understand anything. It is a different mentality s well always have paris how unhappy are you going to be Walking Around paris look, starts off today quoting humphrey bogart. So you know, i dont stick my neck out for anybody just know that that little guy, whats his name. What was his name little squirrely guy. Have to look it up. Im getting old nothing comes right away like it used to, you know what i mean . Youre still pretty quick you have a memory like nobody i have ever angari. Took me five seconds. Whats the guys name name. Thats the one should be easy ill make sure he is not googling it. I may need to go through the alphabet, would come up with it. In corporate news, shares of british online super market ocado jumping this morning they are considered a takeover target after amazon announced friday it is buying whole foods. Right now, lets get to washington we have top political stories. Youre doing something with trumps lawyer Chris Wallace. Im not doing Chris Wallace bite have the guys dig it up if you want to. It is interesting. Im not sure what to think. I dont know if anybody knows. We hear so many things leaked, then theyre not true, then they are true god, i hope theres some collusion somewhere, if we go through all this and theres nothing there, i mean, were as bad as france. Talk about obstruction of justice. Anyway. Let me put it in context. Needs to be a break in. Obstruction of justice with nothing there makes no sense go ahead before we debate it, update where we stand as of this morning. Heres the president s tweet from friday, focus of a lot of attention over the weekend the president on twitter issuing a statement saying i am being investigated for firing fbi director by the man who told me to fire the fbi director, witchhunt, thats the way the president is describing this investigation into russian meddling in the 2016 election as a witchhunt he also said i am being investigated in that tweet however, a member of his legal team was on all sunday news shows this weekend and said the president did not mean he was actually under investigation in that tweet heres how he put it on meet the press. The president is not under investigation by special counsel. The tweet from the president was in response to the five Anonymous Sources purportedly leaking information to the Washington Post about potential investigation of the president but the president as james comey said in his testimony and we know as of today, the president has not been and is not under investigation. Democrats said over the weekend they felt the president was engaged in preemptive campaign to sort of discredit bob mueller, special counsel here is adam schiff over the weekend. Whats happening here is the president wants to take down bob mueller, his lawyer wants to take down bob mueller, the question is why. I think the answer is they want to lay the foundation to discredit whatever bob mueller comes up with. Theyre essentially engaging in scorched earth litigation strategy, beginning with trying to discredit the prosecutor. Meanwhile, the white house as all that is swirl around wants to focus on american innovation. A bunch of Technology Ceos coming to the white house today, including top names in the business we have a list here of just who is going to be there today, including the ceo of master card, amazon, oracle, apple, kleiner perkins, intel, microsoft, ibm, google, the venture capitalist a close trump ally on the campaign trail will be at the white house today. This white house trying to focus on policy and technology today, even as all of the headlines swirl around them on the russian investigation. Right hes so excited, this is just the beginning. Russia, theres so much to investigate. So much to investigate peter lori was the little squirrel guy you remembered it did you google it . I was playing sound bites and you were googling. Yeah. You confess. A russian guy, stalin guy i didnt know i was quoting last week, show me a man, ill show you a crime. Looking for something on you im sure i can find something on you. Anyway, dont go anywhere this week things are going to happen, im sure. Technology stuff, health care potentially. This kind of stuff, this is going on for years. If you can go from a land deal to a stained blue dress. White water yeah, ask the clintons how they feel about the investigations as we said last week, this one is different, this is special counsel, not independent counsel. Theres a difference in degree of authority that bob mueller has here it is not a ken starr situation, he can go as long as he wants, do whatever he wants, he will be restrained the other question is how frustrated is the president. Were seeing a lot of reports he is in a firing frame of mind, might want to fire Rod Rosenstein or bob mueller, theyre tempting tarkgets legally he can probably do that, politically would that be a wise thing. Just feels like the president really wants to pull the trigger there. You keep saying that, you would want that, then you have your saturday night massacre, couple people resign, down the watergate path and then heres the impeachment at the end of that process. It is reading between the lines of the president s tweet friday when he said im being investigated by the man who told me how do you read between lines of this guy. Tell me what covfefe is. How do you read between the lines of this guy. I wouldnt try it. He would show if you try that he is absolutely being implicitly critical of Rod Rosenstein guy that told me to fire him. Thats Rod Rosenstein and Rod Rosenstein is overseeing bob mueller. The president is being critical of his own department of justice and person who gave him the memo he said was key part of his Decision Making to fire james comey. When he puts that tweet out, he is criticizing his own department of justice. Theres really political pressure on Rod Rosenstein well see how he handles it. Did you read the article on next in line, i really like her, person that would take over rachel blade, is that her name yeah. Shes like sided with the private sector on the previous i am ready for her i cant fire rod but im ready to bring her, elevate her up. What would she do i dont have a dog in this fight. You can try to give me a dog, i dont have a dog all right well see you. I know youll be around later this week. Yep lets get to broader markets this morning joining us, jim osullivan, chief economist at u. S. Economics and mark brand, chief strategist at Hilltop Securities mark, tell me what you think of the markets now. We are looking at new highs almost every timewe sit down. I did not say get out you said that. I said i had some strategy that we would have most of the run, still my opinion i said here in front of you and becky on november 8th and 9th, buy equities, i think a lot of that run is over i dont think we have another big move i suggested another strategy, which is buying corporate bonds, and then buying closed end bond funds, getting a lock in yield of around 7, 7. 5 . I think thats a decent albeit conservative strategy. Biggest surprise is ten year treasury everybody and his brother said it would be 3 by now, i said i didnt think so. We are at 215 and may go lower for a lot of institutions, it has been a big pain. How long before we hit 3 on the tenure. No time soon. When you say no time soon, looking at 2018 or beyond . Yeah, beyond. I just think that especially as mr. Trump, President Trump appoints new members to the fed, he has four to appoint, theyre going to become more pragmatic, theoretical talk, economist theoretical talk about return to normalcy, what does that mean. Especially when were trying to increase military, trying to build that infrastructure. We want to cut taxes and want to raise Interest Rates, toeltly mess up the economy. I dont expect another rate hike for this year how does that play into your thinking good morning. Looks like the next tightening move from the fed in september will be Balance Sheet normalization. That was clearly the hint last week from fed chair. Assuming the economy goes along okay, labor market remains solid, in september announce Balance Sheet normalization, consistent with the plan unveiled last week, then come back in december with another rate hike, proceed into 2018 with more rate hikes obviously assuming the economy is doing okay. What kind of issue will markets or economy have. That remains to be seen theyre assuming it is a pretty small deal they went from 1 trillion up to 4. 5 trillion what they talk about first 12 months is to strengthen Balance Sheet by 300 billion, less than 10 of increase in the first place. Their own internal estimates suggest 3. 5 trillion increase that they put in place brought down ten year treasury yields by about 100 basis points if you do simple linear math, maybe push up ten year yields by ten basis points little effect of the equity market, thats with assumptions it goes smoothly, people dont overreact with a temper tantrum like 2013. The idea is it is modest tightening it is tightening over time it progresses, but not a huge amount of tightening at once. Zoourdo you think the assumps are correct . No. But you have the consensus, i feel when mr. Trump appoints different people to the fed, assumptions we are making about current fed are not going to be valid Going Forward with these guys i mean, even assumption about what the impact would be from tightening the Balance Sheet, do you think that will have minimal impact . Again, you have to address the question of whether they go through with Balance Sheet tightening. Talk about appointing, goodwin would shrink the Balance Sheet even more. Remains to be seen who he appoints as chair, could be one of two talked about as nominees. It is open whether he is going to make the fed more or less hawkish. Two names floated so far, if anything would make it more hawkish, not less hawkish. I agree with that statement the Balance Sheet statement has to do with as my friend said, 300 billion which is 7 out of the 4. 5 trillion then it is a question of how they let it runoff the other thing having a big effect on the United States, and i know you never, joe never thinks anything effects the United States except the United States, whats happening with European Central bank, Japanese Central bank i wish things elsewhere didnt effect us, as globalists and moving that way, everything has if cypress has currency fluctuation, fed cant move here. Cant buy groceries. I can from amazon whole foods. They have effected, to the extent in the u. S. And europe, europe, japan still going on, theyre major factors. Part of it is easy fed and part of it is global qe anything looks like toward the end of its run as well, that would also argue over time ten year yield should be going up. Another year or longer before global banks start to reign it in. Theyre not about to do it in the morning, but closer to end of the process. Mark, given all of that i dont understand why you dont think equities cant have more room to run if you look at incredibly low treasury rates makes stocks more attractive by comparison. What i said is they do have more room to run, they can run more the biggest part of the run, from President Trumps election to now has taken place, so consequently i am seeing things in europe which i talked about that i talk about in out of the box. I have taken a slightly more conservative posture and im good with getting 7 to 7. 5 on your money youre good there. Youre not betting thats what you get from the moment you invest. Money, thats a nice conservative strategy. I talked with a lot of major institutions about the strategy. And you know, theyre interesting. That also like pension rates, get 7. 5 , you can high for what people are normally looking at. Exactly thank you very much mark is staying with us. Jim, good to see you. Good morning. Thank you. Top aviation executives are gathering in paris for annual air show, and phil lebeau, is it a homecoming, identify, caught up with their ceo moments ago. Reporter we are here at the Paris Air Show with the head of airbus commercial airplanes, on a day youre announcing a huge order with ge capital aviation for yes it is the third biggest customer ever a 320, despite some issues out there, ge will have ge engines on them, turned out to be more successful than people expected i think we can see more successful when we launch the product. We have already more than 5,000 new orders, 60 market share, this is the fastest ever Successful Program in commercial aircraft history. But you have a big backlog of these and ramping up production. Some production coming in alabama. How many of those a month are you building in alabama and if you increase production in the next couple years, does that mean more jobs, more hiring in alabama . Yeah, sure. So at the end of year, four aircraft a month will go out of the assembly line, american customers are delighted. We are creating about 1,000 high skilled jobs in alabama. And we have potential to grow. Meanwhile, behind us, the a380 we know the problems, you know the problems youre down to production of one per month. How long can that sustain before you make a Business Case decision on perhaps ending the program . Everyone flew that wants to fly it again however, youre right. The market is hesitating because it is a big aircraft it is seen as we ramp down to about one a month. As we market, double in size every 10 to 15 years, there would be potential in the next five to ten years. You need orders to sustain the program. Thats right. We need to adjust to the market. We are in contact with some airlines this is why you can see behind me that we are trying to fans fie the cabin with more seats, improve performance. Head of airbus commercial airplanes joining us at the Paris Air Show, where theyre seeing no slow down in International Traffic in terms of people flying back to you. Phil lebeau going to find out when we talk to him, i think live at 8. Exclusive interview with United Technology ceo i dont know if he did 23 and me must be a place where he is now, la hamlet somewhere. Have some relatives i thought he was french canadian remember hogans heroes, lebeau you have such a memory. Im just, i watched a lot of tv im an only child, remember that i was an only child. Only adopted child up next. Twitter milestone set by a pop superstar, details next. Big interview later on cnbc, goldman saks ceo sitting down with jim cramer tonight at 6 00 p. M. Eastern on mad money. Hey youve gotta see this. Cmon. No. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. Disney pixar cars 3 raced to top spot at the box office. This is the third installment in the cars franchise brought in 53 million the wares oporst open in the se history. I liked it. My son liked it. What about wally. Second one they mailed it in. Wally was weird they mailed in the second. Oh, no. It was pixar it was good. Wonder woman phil lebeau had a moment it was the, what was the cars name, the italian sports car. Wonder woman fe fell to sed place, bringing in 40 million domestic total, 274 million. Thats huge. Katy perry hitting a major internet milestone the pop star becoming the first to reach 100 million twitter followers. Twitter releasing custom emoji in honor of that achievement justin beiber, bar