Like to look not just at the ten kwlooer. 2. 629. Japan, france 1. 76, italy 2. 9 and spain 2. 63 to put that in perspective as we look at our tenyear note. For europe, of course, many of which ive mentioned, it is decidedly negative there as well this morning. It was a relatively quiet night. Stocks in asia finished the day more or less mixed. Europe is in the red across the board. News pretty quiet, slow on the macro front. Although there were a number of headlines perhaps impacting things over there. Lets get back over here and start with our road map and it starts with amazon. Some bare knuckle negotiating tactics, its more than books. Why you cant preorder the lego movie on amazon. Com this morning. And whats at stake for time warner. Fresh highs, of course, have been set for the dow, but as you saw futures are sharply lower this morning eric cantor defeat perhaps weighing on the market . We will discuss that. Overseas profits getting attention. Overseas europe investigating tax practices of apple and starbucks. Their response, well nothing to see here is what theyre saying. Lets start with amazon this morning. Goldman sachs adding the online retailer to its conviction buy list citing a favorable risk reward profile. Meanwhile published reports say amazon is refusing to take preorders for home videos produced by time warner in what appears to be a dispute there. Now amazon has not xhentsds. A spokesman for time warner says the company does not comment on contract points or proprietary issues involving its partners. This comes amidst a heated battle between amazon and the large book publisher which we know is the publisher for j. K. Rowling amongst others. James patterson. Where they have really been saying hey, we want you to bring your prices down as we try to negotiate a new deal, particularly on digital rights, that is the key part of this. Amazon throwing its weight around. The word that many are using now is monopsonme. You bring prices down, not to bring prices up but down. Force your suppliers to bring prices down which is the amazon way. Also the walmart way i might add. Good point you mention that. All theyre doing, theyre doing bare knuckles. Now this piece by goldman, i have to tell you, its business [ inaudible ]. You could have written this piece after the Company Reported. You might disagree with me on this. If you remember the Company Reported and it reported during the moment where if you were spending too much and werent getting share actual eps your stock went down. People started to think over again and you can come right back to the ones that here we are, jim, we crossed below 300. The stock down over 22 . Classic correction. And now seems to be gaining momentum. Its got you know, the goldman downgrade today, its cash returns on invested capital, 39 , have consistently been amongst the highest in internet and well above that of other sectors. Valuations return on capital is something jeff bezos told you in shareholder letter number one in 1997 was his focus and thats where theyve composen to focus. Amazon is one of the best cash returns. Im reading the research. Versus the broader market. The problem with that is if you look at the Internet Group it does look better than the others in the Internet Group. I had athena health. It isnt growing like amazon but sells 100 times earnings. I come back to this one number, since the last week of february when the market changed. Earnings per share, what are they looking for in 1215 . A loss . A loss. This stock can creep back. It had my head writer cliff mason said listen, this stock crashed. These stocks crashed and now theyre bouncing back. Amazon bouncing back is very, very important for amazon to attract talent, keep talent. A good amount of compensation includes stock. If you have a long and protracted period where its stock is doing poorly while others in its competitive realm are not, that can really hurt. Thats the New York Times sales force salesforce. Com story. Unless marc benioff can get the stock up he cant get the people he wants. I think netflix started this and a company that came public, anet, a good ipo in the cisco area, netflix bouncing back, the analysts are creeping out of their foxholes and saying lets go back to that kind of valuation that we have a two track market where we dont care about amazons earnings, we care about the growth, and can it return . Can we have that dual market . I dont know. Now there are a couple other things here. Potentially introduce a new product on june 18th. Remember i told everybody thinks is a phone. I said to you before, is this really about the known really about the phone . Because i dont see anything new here. But that is new. And then there is the larger question, which walmart faced many years ago, when i did a documentary on that the first time around which is, is Public Perception of the company changing as it throws its weight around, uses its market power against hashet or time warner and will that in any way change the buying habits of people . Look, we know going into the quarter, except in that theyre raising price for prime, the analysts like that. Going into the quarter, spending a lot in china we like that. Maybe an alibaba killer. Yep. After the quarter because the world changed so to speak, oh, my, theyre spending so much in china no hope for profitability. Oh, my, alibaba has earnings and growth, we have to talk about alibaba its being forgotten about and shouldnt be. Return potential 20 . Isnt that interesting . Where would it be if the stock went up to 20 . Notice they lowered their price target at goldman from 430 to 400. Yeah. What you have is a lot of people are cutting micron. We had multiple compressions. Our target comes down. Multiple to what . Now it is interesting that they did use a 2016 earnings per share number with 1. 16. Wouldnt that be something. Bezos says i dont want that money made. The opportunity is too great. I dont want that money made. Amazon right now is rising and there is jeff bezos, the title of a documentary we will be bringing on cnbc, never too early to start promoting an effort that has been many months in the making. We have the olympicss. Yes. In when . 2016 . Its time. Its time to Start Talking olympics. Exactly. Lets Start Talking markets as well. Futures moving lower. The world bank cut its 2014 Global Economic growth estimate to 2. 8 . It had been at 3. 2 citing a rough u. S. Winter and conflict in ukraine. The forecast comes one day after the dow and nasdaq rose for a fifth consecutive session. The s p did fall for just the third time in three weeks. You can forgive people if they thought perhaps we had revoked the law of allowing the stock market to go down. A lot feel its down because of cantor losing. And i have a lot of views that are different. Eric cantor losing a primary unexpectedly in virginia. This world bank cutting growth means tremendous things in europe. This what is they fear again. Its mostly to us its like wait a second, world bank. Whats the relevance there. But these World Bank Numbers came out europe got hammered on this. Europe is not sitting there saying, wait, cantor lost in the key primary. Europe doesnt know about a key prima primary. They know about the world bank and world cup. Right. I think theyre worried about both. Right. As they should. Should there be worry on the geopolitical front on whats going on in iraq . I mention it because it is on the front page of newspapers. Its like you know. Scary. It fell. A lot of people who felt you could get behind a thesis where oil goes down to 80, 90 because iraq returns to some incredible level of production. The southern areas of iraq are producing. I think that the next thing youre going to hear about is the Oil Companies and people pulling out of iraq. Theyre denying that. Civil war will have that effect. Because the the oil minister said listen, its safe in the south. Oh, okay. Well thanks. Let me get my trip tick out. Lets move on quickly to taxes. Apple says its received no favorable tax treatment in ireland. Irish Officials Say the same. European commission is looking into taxes that are paid by apple in ireland and by starbucks by the way in the netherlands and whether any tax deals violated eu rules. Starbucks issued a statement saying it complies with all relevant tax laws in the netherlands. This is not about inversions, mind you, not about u. S. Corporations that are reincorporating in many of the same a forementioned countries to gain a lower tax rate and as importantly be able to repatriate cash from overseas back to the u. S. Without paying big taxes. This is about countries, companies that move their intellectual property over there and then run a lot of things through there. Apple says we got 4,000 employees in ireland. So come on. And our tax bill keeps going up. But it is something to keep in mind because overall it has the effect of reducing the tax bills for these companies. Whats funny, to distinguish apple from starbucks is important. Starbucks a great international, global operation. Theyre not trying to do anything other than comply. I mean Howard Schultz ceo will tell you that. Many companies in technology move to ireland. I went to an intel open plant there. I went to visit an emc plant there. They move there because the work force is the most overeducated and least employed. So i mean its interesting to hear suddenly it sounds like there were two what im saying two irish here. One is okay, lets take advantage of the irish taxes. And the other is lets take advantage of the irish work force. I hate for anyone to think the reason why these great Companies Move to ireland was anything other than the fact they had the highest percentage of people with doctorates and masters degrees of any country in europe and the most unemployed at one point. Thats why intel moved there, apple went there, dell went there, emc went there. Great educated work force. Important to point that out. Right. We should point out as well the conversation about inversions continues although we have not seen a new one announced since pfizer failed in its attempts to buy astrazeneca. It became an issue perhaps we thought we might see action in the u. S. Congress. Your mentioning reid. Yesterday reid and rand paul getting together to try to actually think about a way to fund the highway bill. Right. By repatriation holiday. That is something people need to keep an eye on because harry reid happens to be the majority leader of the senate. Youre talking nonsense. Youre talking about progress. Well no, it wouldnt necessarily be progress because it wouldnt be tied to tax reform. Do the repatriation thing and wouldnt do a tax reform at all which many people would agree is needed on a wholesale basis. Right. But my background contacts with people in the government, democrats side admittedly, because thats who treasury is democratic, is that without comprehensive, which addresses everything, its dead. And the two are loggerheads and after cantor even more loggerheads. I dont want to say this is dead on arrival because it makes too much sense and too much broken infrastructure. I wouldnt bank on it. I think thats the way to look at things. And, of course, with cantor being gone, i mean, impact on overall . Because he was the congressman from squawk box. He should have been the congressman from his district. He might have gotten reelected. All right. Oh. Why dont we listen to lloyd . Lloyd blankfein, the ceo of Goldman Sachs, spoke this morning on squawk box regarding mr. Cantors defeat in the republican primary in virginia. I hope it doesnt mean that it will be impossible from this point forward to compromise on issues like the budget, on immigration policy, or any of the issues in the country. At the end of the day i dont look forward to a time when every legislature goes to washington absolutely committed to an extreme point of view and we can never resolve anything and never move forward and i think this is a this is not necessarily a good signal but have to see how this plays out. There were all these reports that cantor would flirt with the tea party and then bankers in new york would then come in and say maybe youre going too far and he would then straddle things. Look, the reason why yesterday i said the reason why this market keeps going up is we forget about washington. And washington bodes confidence, things like debt ceiling that make our bonds less attractive and s p wants to downground. That very evening we get a reminder of how washington can play an Important Role here. And so i not necessarily a positive role. Important role. I still think this is i think theres just many reasons to want to take profits. The most important thing you said so far today weve been up so much. Look, we got world bank the reasons to take profit, air bus order that got lost, reason to take profits, we have, you know, these kinds of things. Cantor. Lets take profits. I dont want to get too serious about it because the market has been up a lot. Coming up the man who stunned the world by defeating eric cantor in last nights gop race in virginia. David brat. The Solar Panel Installer talks business. The ceo of solar city. Another look at futures as weve said. We are preparing for a lower, a rare lower open at least in recent trading days. More from post nine at the New York Stock Exchange. We started zya with the thought that the kid on the back of the bus might have a song that he has in his head but he just cant get out. With the technology of cloud, we change all that. I can sing something into my device. Up to the cloud it goes. Back down it comes sounding better. We break down the walls of creation, and we give music creation for the masses. Looking at a shot of london, england, traffic, of course, coming to a standstill. A protest by taxi drivers there. Cab drivers in london. Of course against uber, for example. Were going to get a live report on the ground. Thats a real profession in london. A bit different than what can be a rung up sort of moving up here in new york city, for example, driving a taxi. There youve got to past incredible tests, know every last street, everything, and its obviously expensive to get a taxi there. Youre right. Its a good job. I remember going to the tower of london taking a cab and hearing what the tower of london was and who was there and what to look for from a cab driver because thats the way it is. Uber, of course, is disrupting to use a word that is used a great deal, a lot of things, including traffic right now. Should we raise the valuation of uber based on this . Yes. Ill take you sold to you. All right. Said he was going to be the most powerful man in the world. I had a meeting with him. I wanted to tell him about massa son. The founder of uber. Massa son, these people who want to be the most powerful people in the world. Massa son. Ma. Or travis. I dont know. Big three. Its like Stalin Churchill and roosevelt there. A little cage match. Cage match there. Well have the mad dash coming up. Do you know what youre doing yet . Dont tell me. Of course i know. As surprise. I have the ultimate idea. Its the ultimate suggestion. I bet i know what that is. Cramers mad dash is the countdown to the opening bell. A look at futures again. Looking for a lower open. More squawk on the street coming right at you. Come with me, his wife said. Big job, big city, big new country. How can i move to a city, he said. Im a country boy. Let me see what i can do, she said. So she opened a bank account, sent money, rented an apartment. And found him a little bit of country. In over 700 cities worldwide, products and services that make a citi client anywhere a citi client everywhere. We got eight minutes before what looks to be a lower open this morning. Holy cow. For a very long time i was bullish on ul ta and then they had a couple quarter stumble, little negative, i got too negative. Last night they reported a quarter that had everything you ever wanted. It had great it had terrific samestore sales, a guide up samestore sales. It had a sense of renewed mission. It was the Strategic Plan is paying off and im a believer. And one of the reasons im a believer is because, as a guy i like very much, Aaron Rubenson at wolf, writes ul ta salon, bear case rip and hes right. Im back on board. You have to be. Youre back on . Im back on. Of course jim screwed up. I was negative. I literally should have gone positive and i didnt. All right. You were positive here. Positive and then i got negative here. Sometimes you get it right. Whats wrong with that . Because i didnt please. Youre supposed to telling you on twitter they want to hang me. Its interesting, dan hurwitz of a large reit which has ul ta as one of its owns a lot of malls said very good things about them. Adding stores like crazy. Contrast this with the other retailers, im not just radio shack, the radio shack conference call, i mean hello, admit that it was bad. That was like theres total denial there. And i saw that there was i usually dont quote their stuff maybe i should using a price target to zero. Zero good for you . Because you cant go minus five. Thats the amazing thing about stocks. You can do five below. Still undervalued at 35. Move on to my kron this morning. The big bear, simon, bank of america, he goes sell to buy. Saying that all of thof theory there will be new fabs and no price discipline, dead wrong. He was negative negative negative negative negative. Oh, positive. Okay. I get that. Credit suisse has been positive the whole time. Big hedge fund name, but a lot of hedge funds in this game and theyve actually gotten one right. But philbin and company had this one right the whole time. I dont know if you read the research. Regis philbin . Yes. Saying this was an undervalued stock, told me, right about here when i went on to talk with regis, hes actually follows the stock market and goes on melissas show. Really terrific. Other thing, Credit Suisse says its not just a supply problem meaning not a lot of new fabs, the demand is good for the enterprise. I think the real takeaway here is when the japanese folded, with al peed da and sold it to micron for 2. 5 billion, that was it. Its hinex, samsung and micron. When you only had three competitors, geez, they tend to get along a little better than you thought. Thats the concern of the fcc and the doj if sprint and tmo were to get together. I would argue three is fine when it comes to wireless. They dont get into a hotel room and fix prices. We hope not. By the way, you go to jail. Right. You go to jail if you do that. But this stock