On friday and monday in those markets, but strong rallies without a doubt. How is our ten year doing, you ask . And you shall be answered, 1. 468, sometimes thats what i cant get over. Its the only thing you need to look at rather than oil. And if it goes back to 50 well see how the market does. Oil trumps boris. Remember we dont use his last name anymore. Now its boris johnson. Oil is trumping everything because this market is so screwed up. Its what we look at. Thats where were going to start. Our roadmap does start with those global markets. It doesnt say theyre screwed up, it says they are actually facing the brexit fallout. Could today session finally provide some relief, or is it only temporary . We always like to end with question marks. President obama weighing in calling for a pause in the postbrexit hiteria. His word, not mine. Were live in london and brussels as the world watches for what is next in terms of the exit of the uk and what the eu is going to do. President obama warned against financial and global hysteria in the wake of the brexit vote. I think that the best way to think about this is a pause button has been pressed on the project of full european integration. I would not overstate it. Theres been a little bit of hysteria postbrexit vote as somehow nato is gone, and the transatlantic alliances dissolving, and every country is rushing off to its own corner. Thats not whats happening. Its not clear what actually is happening. That is the best advice ive heard yet. Now the republican, h, how coul say that. Do you think italy is saying we want to close our banks . We want to do exactly what they did in the uk . Its madness. Who would do this . Do you anyone who is running italy or spain, now seeing that their banks are going to have runs on them. Who wants that . Going to have runs on them . Im saying after you saw what happened, when you saw royal bank, and when you saw barclays you would worry about what would happen. And right now and could it conceivably get to that point. S in italy im concerned about. Roll it back. Im saying hes thinks theres hysteria, given what im hearing, and there isnt runs on the bank, that preferreds, and the credit and the bond size, which you have taught her is far bigger, is saying this rally is right. Today, i dont know if we have them, but lets take a look at the banks. Thats where were started, which is the appropriate place to i mean, barclays, lloyds, you go on from there, whether its hsbc, or credit swisse. Or deutsche bank. The bonds are good. Im saying theyre not theyre not falling apart. And nobody expects that dade bank. To the point of hysteria perhaps is not necessarily something we should be thinking about. Right. But there are so many unanswered questions. Now youre starting to hear the whole line of maybe they can redo it or maybe if johnson comes in they wont invoke start c cal that makes things more confused in a sense. Right. The norway version, basically s what they had. I know people keep saying will they give me the norway version. A look at the banks, are up you know, up. I dont want to get too in the weeds here. Im saying if you see oil up, you see the dollar down and you see Interest Rates going higher, then you can start looking at u. S. Stocks. Unfortunate unfortunately, when we look at the u. S. Stocks numbers are coming down because of whats going on in europe and thats unavailable. We know thats happening because as you said yesterday, the issue is recession versus nonrecession and that is they can roll back whatever they want, but its been set in motion and its recession versus nonrecession and that is not what we were talking about. Uk recession not going to be that impactful here. European recession, certainly more so. 660 million imported in goods last year by the uk. Obviously we just got a 10 tariff. I think europe a little bit stronger than people think. I just dont see europe unraveling. I dont like the domino theory. I think what happened was antidomino, that when you look at what happened aud that it will prevent other exits. Italy, thats probably the one least on the table, that can least handle the banks i find myself if italy were to exit, what would its borrowing cost be . Whats their outstanding debt load . Third largest sovereign bond market. If they didnt leave in 2011. The election this weekend was more of a vote to stay. Weve got to deal with the facts on the ground. Other than hungary, with the mag air party. Some would say the aero cross gang, thats the national party, only party antiimmigrant, they may be kicked out because thats not a democracy. Thats not a domino. Lets set up the day then here. All right . As youve said, the done is no longer its weakened a bit. We dont want to have to cut numbers. You saw jay and jay up yesterday. We saw the european markets up. Lets call it between 2 and 3 . Our banks have suffered significantly and were down what 6 from thursday . Something like that . Right. So is that it . Has the equity market dealt with and discounted the effects of brexit shortterm before we figure out the effects longer term . Is. Number cuts are real. The number cuts are from those relying on the eu. And trucking slowed down. You could argue that freight has slowed down. I was dealing with some of the airlines yesterday. Holy cow, david, the numbers are big. The numbers are just big. Because the dollar again will hurt tourism. Real estate coming down, thats also been a big prompt to the economy. Right. Now jp morgans number you asked me usually the key to the markets. Please. Im going to jump that. Jp morgan has 2 point five million, barclays is next, and i think there could be a case to be made huge market share could be picked up. But thats going to happen over time. Thats not going to happen tomorrow. And here is the issue, cert term, we have a bounce. Longer term, theyll be winner and losers. Theres number of cuts galore. Very few companies can afford. Within the confines of a foolish note, its just you cant thats huge european business. It does. People dont think of it as european business. If you go over there, it doesnt matter what language the word search is. They use it. No doubt and facebook, as well. Leaders are holding a brexit summit in brussels, and willfred frost is there with the latest. Pilfred . Reporter lets just remind ourselves, all 28 leaders of eu states are coming together after that brexit result late last week. Probably the most seminole moment since the berlin wall. David cameron is allowed to attend today. Hes unceremoniously booted out so the remaining 27 can discuss whats next. He arrived a little bit earlier. This is what he had to say. While were leaving the European Union, we must not turn our backs on europe. These are our neighbors, friends, allies, and partners and i hope well seeing the closest possible relationship in terms of trade and cooperation and security because that is good for us and them, and thats the spirit in which the discussions i think will be held today. Now of course his comments there were quite constructed, forwardlooking and positive in stark contrast to comments by the leader of the Uk Independence Party in front of European Parliament earlier. Heres a taste of the tone of his speech. I know that virtually none of you have ever done a proper job in your lives, or worked or worked in business, or worked in trade, or indeed, ever created a job. But listen, just listen. Meant to be smoothing over relations before these negotiations, nigel doing quite the opposite. Its about five and a half minutes long on youtube. The bottom line, a lot of angst with David Cameron for having risked this guy delivering referendum, im sure theyre delighted the person theyll be negotiating the uk with is not from the Independence Party and will be from David Camerons conservative party, on who will succeed David Cameron, guys. Thank you very much, wilfred frost, updating us on all the goings. How about icelands work . Iceland ousted england. It was not good at all, youre right. All right. Take another look at the futures as we head to a quick break on squawk on the street. You can see where ive set up for a much higher open after two significant down days in the market. We have a lot more squawk on the street live from postnine when we get back. Its here, but its going by fast. The opportunity of the year is back the mercedesbenz summer event. Get to your dealer today for incredible onceaseason offers, and start firing up those grilles. Lease the cla250 for 299 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Earlier on squawk box, former treasury secretary, Larry Summers spoke about the challenges facing Central Banks around the world. 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 you have a bad and you have a bad shock, and thats a prescription for a quite difficult situation and i think thats what markets are discounting right now. Hes been saying lower for long longer, longer, longer. This is a man who was close to being the fed chair, but was then withdrawn from consideration. Hes been right by the way in terms of saying look, rates are not going anywhere. But the problem is, you know, why do we even have the vote . Theres just not a lot of great Economic Activity. Why do we have what . Why did brexit happen . A lot of this is because people cant find jobs, particularly people in their 40s, 50s, and 60s who have been laid off by globalization, and digitalizati digitalization. Stocks do well in a global environment, so we can use those central markets as an example. There havent been a lot of jobs created or inflation or wage gains other than those that are mandated on both coasts in particular, which is why the restaurants are hurting. Look, i totally get that. The one thing im a stock guy. Yesterday, i ventured into brexit only because its hurt a lot of stocks, but the issue that i have, is the less Economic Activity most of the industrials and the material stock which is have been pretty good, and the discretionary stocks, 20 of the s p are challenged and thats where the numbers are going to come from, and special numbers are going to get cut and im weconcerned abo that. Right. Were going to be living in a very lowrate environment for a long time. Mr. Summers makes the point theres no bullets left. By the way, the japanese 20year came close to negative territory. 20 years. You want to lend money to the japanese government and youre not going to get anything back. 20 years. The germans should you and i both know germans should go borrow 500 billion and put the whole continent to work, right, because they borrowed nothing. Mu i never hear a bad word about this politician. They could create jobs. The long regime did build the autoba autobahn. Im saying theres lots of opportunity to put people to work but the governments have to do it. Yesterday i spent a lot of time with the Port Authority and they talked about building the trade center. It took the government to do it. The governments have to step up. Are you talking about the original world trade center. New trade center. They dont call it Freedom Towers anymore. Im just saying the governments have to get involved. The governments have to get involved, and thats not whats happening. You cant save anything at that rate. No. Thats why i come back to bottom market equivalent stocks. You can only trust tripleas. My faith and full faith in credit is in alex gorskj, and jay andj and j was up. This is not meet the stock. This is stock. Meet the stock is not my show. Were going to go from meet the stock to meet the currencies. Hes on top of it. Lets talk about currencies. They continue to be the eye of the storm when were talking brexit. Sar sarah eisen is still in london and still talking currently, sarah. Reporter theres no place id rather be, david, and the pound is getting some relief, but the outlook here is still very murky. Also keep in mind were coming off a record twoday drop of 12 for this currency against the u. S. Dollar and many strategists are just slashing their forecasts for the currency, as well. The uncertainty factor remains high and today the focus is all about the politics, who is going to be the next Prime Minister of Great Britain in place september second and some of the leading contenders include boris johnson, the former mayor of london, and is michael gove, the justice minister. Both of them are the brexiters. Theres also theresa may appearing as a challenger, who campaigned for britain to say inside the eu. George osborn was thought to be a contender, as well, the finance minister. He took himself out of the race, focused on mending the british economy, and all really important for Global Investors because the next Prime Minister for Great Britain will be leading those tough, and complicated, and long negotiations for britain to leave the eu. For instance, can they retain any of the trade benefits with europe . Thats just one of the big unknowns here. For now, there is calm though. The safe havens which have been so strong, the yen, the dollar, are coming off a bit. Theres a lot of parts and the political aftershocks continue on both parties. Theres currently a noconfidence vote for the opposition leader. Well find out the results of that in the next few hours. A lot of different things. We havent started talking geopolitics about russia or china, how week that is. The chinese stock market, one of the better in the world. Dont talk about that. Every was fretting on friday. China has been a strong market that says something. Makes me feel a little bit more sanguine about the situation. We dont have a decline in china. I will point out, watch the stock like avago, thats the stock that always used to bounce back first. Watch broad com. Okay. We will. Well also be watching for your mad dash, jim, because that is what is coming up next as we count down until the opening bell. Weve got a lot more squawk on the street right after this. Were tight on time, about six minutes before the opening bell. Lets get through this mad dash. Terms being used today that i dont like associated with the stock, with a company that i do like. Apple, cowan. The focus on iphone seven is appearing a powder keg by apple that a super cycle is setting up for the iphone in 2017. David, one thing i have learned as much as i do like the company, apple, when you hear super cycle, thats the coal super cycle in 2011, the fracking sand cycle in 2011. The housing cycle. 2007. Remember bob toll, he said thats the on coming train, he said it could be a longcoming downtu downturn. Correct, bob dole. This stock is going to go up because the count report lays out how 2017 will be a great year so therefore you have a 9 ten, ten times earnings, people are going to say i want to buy it. I want the watch to be bigger, the watch has to get better. I just called my wife. I think what really matters is a super cycle is a term that i dont like because its often led to too much bullish enthusiasm. Theres a lot of bareishness. Dont believe the hype. Down 26 1 2 this year. A super psyche cell like the cubs, okay . The mets had a super cycle. How did it end . When was this super cycle . Last oh, last fall. It ended in tears. Yeah, tears. Like a threeinning super cycle. Thats awful it ended in tears. Im saying super cycles are like betting on the warriors. No it just never works out. Weve got the opening bell and a lot of things to cover individually for you. I want to talk about mckiesson maybe some viacom, a little bit of news on monsanto after this. I like cutting numbers. As a supervisor at pg e, its my job to protect public safety, keeping the power lines clear, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. 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My problem was the hottest tech stock going into the downturn, david. Flash prices have turned up, and Western Digital down 10 yesterday. And avago. And broad com, avago should bounce the highest. And there it is. Right on time. The opening bell of course here at the new york stock exchange. Well take a look back at the real Time Exchange at cnbc hq, and we see weve got a lot of green on the board as you might have expected. Here at the big board, overseas shipholding group, for the transfer at the nyc. At the nasdaq, Automatic Data Processing celebrating the tenth anniversary of the adp, National Employment report. Carnival cruise, once again they delivered. I was concerned about zika. Higher prices on higher bookings. Nice. Ccl. Carnival cruise. Thats an interesting sign. Theres still a lot of things against them, could be management being so strong. Thats the only earnings story today that matters, and its good. The quarter looking good. Always have to wait for the conference call. But very wellrun company. The only data point earnings wise that i care about. I know you have a Million Stores in the wall street. They brought me my pad. I