Commodity prices downs a well as concern over fall out from china continues. 11 million cars may be effected and the stock, its down another 20 this morning, volkswagen. And bank of America Votes on the roll of its chief executive. And that share holder meeting begins within the hour. Jim. What explains this turn round, because japans closed, asias been moderate overnight. I think most of the markets in a bear market. This kind of behavior should have happened yesterday. And somehow the market rallied. Its almost like it got the wake up a call that it shouldnt have rallied yesterday. I got to tell you the Justice Department and a Justice Department motivated to go after individuals. And last night, the ceo for u. S. In brooklyn, this is the test of the Justice Department. Listen, i agree, were going to talk volkswagen. This is one of the Largest Company of the world. And the largest market cap and that quasidwas during another that may have been illegal. And its not just china, although we continue to monitor the potential slow down there. Otherwise, i think the dollar stronger but i got to tell you, talking to a lot of executives familiar with foreign situation. Volkswagen is gm, ford and fiat. Its their company and to go after this company and go after them criminally, which is not being ruled out, Justice Department means criminally, well, i got to tell you, should you be in that stuff . And a lot more fall out on this cheating scandal which is being called diesel gate. Theyre now setting aside 7. 3 billion dollars and the issue is related to 11 million vehicles world wide. Heres what they had to say yesterday at an event launching the new pasat. Our company was dishonest with the epa and with all of you and in my german words, weve totally screwed up. Ia mention the d. O. J. , theres an emergency Board Meeting tomorrow. And already German Companies saying winter corn is out. People are talking do they survive . Does this put germany in recessi recession. Bp is a great an log. They thought they could contain it and they couldnt. Goo gm got away without any indictments, volkswagen the epa has a lot more power to pursue litigation here. As we know from bp much more than the regulators and the Justice Department is a different set here as far as what theyre going to do. Its still just terrible when you read what they were doing. We still dont know how this was set in motion, who was behind it and what decision was made to say lets put in software that fools the emission s and by th way, there are plenty of hedge funds here that own volkswagen and theyve been getting hammered over the next couple of days and the ataris own part of the kufcompany and then porsched theyre the ones that will have to make the decisions here. Go back to 2008, that scandal the short squeeze. What porsche was doing, the litigation on that continues. But its interesting when you just think of a culture and you think of that and theyre still being pursued, although theyve avoided an end game in avoiding that theyve manipulated the stock price. This is a real bad set of facts. Morgan stanley throwing numbers around. They see potential penalties of about 38,000 a car and thats not counting the cost of repairing the cars and not looking at other countries. You got italy and south korea saying theyre looking at this. And people have to understand its a political situation too. Everybody is trying to sell more cars to everybody else. And they make cars in mexico, they sell them here, they sell them to korea, korea wants to dump them here and who doesnt want volkswagen stopped . Theres a reason people dont admit what this gentleman did last night. How often do you hear a corporate leader say, yeah. The regulators are planning on making a clean breast of things, so they can say, you said it yourself, were going after you with everything you had. This wasnt a situation, where im really sorry. Remember, they were sorry . This even i mean, we cant get into it. And criminal fraud, that was caused by a lot of Different Things that they failed to do. But in this case, how hard is it to prove when theyre admitting it. They werent exactly knocking the cover off the ball. Chinas down 10, a lot of that money was betting on a restructuring. Lets say we didnt have europe but we do, what happened this morning . I think the numbers in autozone were fantastic and olive garden and margin expansion, every single one of these, i would have said lets look at the smukers on this secondary and nobody cares because were in a market gripped by the guys in pajamas who are taking the volkswagen and presuming the worst here. I would be i love the guys in pajamas. They have feet pajamas today. Like when i was five or my kids had. They have the diapers. Its getting a little chill ea out, you might want your pajamas. Its pajama game. Its what theyre planning. Were literally in one of these moments where it doesnt matter. Im how are the companies doing . There was no stinker today. Not a single company, of all the companies reported, they were five for five, you kill for this. This was like the jets. Jets. Im not sure what youre referring to but there is a team that plays here by that name. And this volkswagen thing is if you own volkswagen today what youre saying is this is like the banking group. You need check so many different boxes. And all the consumers who are going to sue them, the class actions that are going to roll in. Im an environmentalist and the idea that ive been spug all of this and then what does the eu gets on this . Lets say youre their lawyer, what do you argue now . We screwed up. Maybe you grow leer the five guys who doo did it, here they are. Thats good. Throw them over board. Come on, man, its 40 decline. Are you going to embrace them . We like this guy, he had a great idea to fool regulators. If i had better sources, this would be a great book. How did that hap . Lets do this. I found the software we can fool all the emissions. Its diabolical but clever. They thought this one out, theres no question. If i were at the Justice Department right now, which i got rejected from, i would be saying right now, clear conspiracy, hub and spoke, everybody. I want this case. I think i could take this case. You, you, you can take this case. There isnt anyone in the country that cant take this case. Make it a pro bono case. I want him. All right. This is just a dream come true for a prosecutor. When we come back, the very out spoken, Richard Fisher, youll want to hear what he has to say about hiking rates p. And we havent got to a lot of futures and we want to bring you up to speed on the medical issues. Theres some selling going on around the world. And the futures here look problematic. S p looks to open at about 20 points. Vote expected to be close. Were going to have a live report in charlotte later this hour. Of course, he did get a vote of confidence from one mr. Buffett who owns a good amount of shares too, which i guess hell vote on keeping them together. Hes very favorable towards moynihan, do you . If you think the board is incompetent on this thing, sell it. I think most of these banks are hes a survivor money and im not going to nail him and tell him he has to split it. And the former ceo of wells fargo said this shouldnt necessarily be voted on by the public. I dont know what the stats would tell us about companies that were separated as opposed together. I can think of citi group where the is a separate ceo and chairman. Im sure there are those who tried. In the end, the stock and theyre been buying it just because its way behind the rest of the market. I dont care. Been a lot of Management Changes in the circles outside of the ceos office and we remember the high profile calculation errors when dealing with the fed. Have they demonstrated to you that he deserves to have this additional roll . I think well, no, wells fargo did not commit these errors. Hes righted the ship and i think this is rear guard action. Look, im pro corporate governments. Hey, i dont think board should be responsive. But this is an odd fight for me. Because youre basically saying everybody should have it because he actually did clean up a lot of stuff. He did clean up a lot. And you cant have a chairman with a good amount of power to a certain extent and there could be mixed messages. Microsoft also has this. And we forget about these things and it is a significant differential in terms of companies with it united under one person but i cant say for certainty which is the better way to go and im not sure sh e shareholders do either. And theyll be in an executive session, when the chairman leaves, that ican have much more of an impact. If you think hes not the right guy, sell the stock. Sticking with the banking issue where blankfein has been diagnosed with lymphoma and it is treatable. He will have chemotherapy and he will be able to work substanshally as normal. His word is my expectation is i will be cured. I mean, this is a curable form. First of all, wish iyou best of luck. Bin known him for decades and this is a terrible thing and have to hope for the best. Youre talking this morning about the futures, saying, oh, my and then comes over and shoot man, wow. Were frail. And have moved up you want to talk about medicine and advances, theres a perfect example. 30 years ago was very different. And i think the company known gary for a long time. The stock is down. You sell it stock because the markets bad, not because lloyds sick. But i know that this is a mark w w where theres a million reasons to sell. This is just a terrible market. Terrible market. When we come back, well get cramers mad dash and a day hat looks like it is one of those days. More squawk on the street straight ahead. At t and directv are now one. Which means you can watch movies while youre on the move. Sitcoms, while you sit on those. And even fargo, in fargo binge, while you lose weight and enjoy a good cliffhanger while you hang from a. Why am i yelling . The revolution will not only be televised. The revolution will be mobilized. Introducing the all in one plan. Only from directv and at t. My name is watson. Im helping doctors keep people healthy. Take ted here. Im pulling together data he shared from his wearables, Health Records and family history, so we can analyze it. Hes doing everything right. For the most part. No pain, no gain. You are a beast, ted. My name is watson. How can i help you . Were set up as you can see, for a far lower open, at least from where we closed after yesterdays rally. But well see where we close after the open because thats what we care about and its also mad dash. My nephew said last night rsh people want me to be more savery. So, heres savory things. Im not a cheerleader for this market. I hate this market, its awful. Hate is a very strong word. I dislike it. There are sectors that i do like and one of my favorite sectors is the food group. And ken pal is reinventing General Mills and yes, i should clairify, no, i dont hate, just feeling miserable about a lot of thing things. Youre far from constructive . Being a cheerleader would imply i want you in. But to your point, its names like this you feel can work in the environment autozone, still has a growth story. And 4. 5, they have been buying back stock. And the important thing to know is now they have 31 million shares. This is the most aggressive buy back. Eddie lamberts still a big owner there, right . Im not sure. But this is is another place to go because they will be buying back stock. They bought back only 631,000 but thats a lot. And if youre sat is this weekend. You dont want to be satter ien or morose. You dont want to be any of those. You dont want to be a boulian but i do think autozone and General Mills are places to go. Theyre the antidote to volkswagen. Which we have to talk about. So, when europe closes, you could see a rebound here. And were going to talk more about volkswagen. We have a lot of other ones, as you heard from jim, a number of other ones to hit. Well have all of them here on squawk on the street and the opening bell after this. Excellent looking below the surface, researching a hunch. And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. Ahh. Steve, other than making me move stuff, ces. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that 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 . For all the confidence you need. Td ameritrade. You got this. Youre watching cnbc squawk on the street. Well get the opening bell in a few minutes here and volkswagen is really the story of the day. Wevae already talked about the issues facing the automaker and today, b of 8 tries to make a stab at what suppliers may be effected. Well, look at i think its really the very big reason why europe is down. Im interested to see when europe closes, if we dont try to mount for a rally. Volkswagen is one of these things where i remember when bp had its first day and it was an accident. Remember when they had their first day down and people said 7 to 750 and then 40 and 30. Theres a tenure by the way. At one point, it was the highest Value Company in the world when they were when porsche was doing all sorts of stuff. Porsche said they owned more than they did and they engineered this incredible short squeeze for all these hedge funds because it was at 90 times earnings and they all paid a terrible price and that litigation continues. They couldnt get it over here but it continues over there. I mention it because sometimes these things come back around. Sometimes theres a culture somehow. This is people are talking culture. And thats unbelievable because the actual car, people love. Ive never met anyone theyre volkswagen. My daughter has a volkswagen, 12 years old, fabulous car. When we did our bmw, the war between them and audi, they would not say audis name out loud. And there are people reveling shottenfroid a little bit. And obviously, a look, this is a Great Company in terms of making cars. Thats become irrelevant. What are people talking to me about . Theyre talking about possible risk volkswagen and possible risk petro and these are the things that you worry about with the fed hike. Youre not worried as much about the actual stocks. Youre worried about these situations and thats what hedge funds keep focusing on. Olympics cant come fast enough. Theres the opening bell and the s p at the bottom of your screen. And food and supply stores celebrating its one year listing anniversary. And the General Assembly gets ready to convene this week. Chinas president , the pope, going to be extremely busy. We havent talked about the president but geez, kind of over shadowed. Hed meeting out west and theres a good interview in the wall street journal hes got a party line, so to speak. Responding in written form, it was not a back and forth. Thats a very good point but i think hes very cog underaniz the slow down. If you dont think theres a slow down, go read the pseudo interview. And its not lost on anyone that his first stop is seattle as opposed to washington d. C. Where apparently paulsen is going to host a summit and the guest list appears to be tim cook, maw, i think he might have had a date with bill gates which reports say is not going to happen. The whole thing is awkward and strange. And howard shoelts has made a concerted effort to address the parents, the families. My late family work for the Chinese Company and i think starbucks has had unfetered access. And did want to mention a name we talked about yesterday, wetterferred. Did you see where they said forget it. We wanted to sell stock and debt but not where the market wants us to, so were going to take our offering and go home. Call it a day. And they were down about 9 on word that it was going to be doing this offering is now up 10 . Do over. Like, hey, we lost that gain, wait a second. I want it off the board. Forget it. Thats how you get your stock up, but first you have to take your stock down. What an ugly day . Biotech getting tossed around a lot today. Reports today that Hillary Clintons going it unveil her flan prescription drugs, caps on what people with chronic pain will play and changing the rules on how companies negotiate, no longer able to write off advertising as an expense. Was yesterday deserved . Yes, i remember when bill clint said these things but he never managed to get anything through. And saunders said yesterday on mad money its going to have publicity and you cant change a lot, other than when you get pure gouging. That young man who came on with megand melissa. Again today. He was everywhere. Hes not a particularly strong spokesman, he comes off i mean, they could make a movie character out of this guy. He wouldnt be the hero. No. But hes unbowed. Moving ahead with that 5,000 increase. To the larger point of whether you can regulate these prices, the companies will always say you have to pay us for innovation and its been interesting to me that europe, which does have a much more restricted policy, they dont seem to be pay interesting the innovation of our companies. Maybe our next president can figure out that one. And i know when they have the Drug Companies come on, theyre all saying they price these drugs so theyre underneath what the maintenance would cost to try to keep the people healthy and thats the umbrella. United health might say, its going to cost us x and this is 3 3 4s x. And what is the cost of the Health Care System if you have a lot of people who eventually suffer from that disease . Theyre easy to beat up. Very easy to be a target. And theres plenty people who think it was over done yesterday, jim. There was tweet, the Spokes Person for the drug industry yesterday was not a real spokesperson. I think most of the Drug Companies were appalled about the kaumcomments this young mane and trying to distance themselves. He could have a role as evil villain. Among the least effected today is du pont and siting the 30 decline of the shares. I was talking earl ill about what i dont like about the market q what is most interesting