Skip to main content

tv   Squawk Box  CNBC  April 20, 2016 6:00am-9:01am EDT

6:00 am
♪ >> live from new york where business never sleeps, this is "squawk box." good morning everyone. welcome to "squawk box." i'm becky quick, and check out the u.s. equity futures. markets slightly higher yesterday. this morning red arrows but these are modest right now. overnight in asia you will see that the nikkei closed up slightly. it was up about .2%. the hang seng down, the shanghai down as well. let's check out the early trade in europe. modest declines. dax down about .1. as the cac in france, the ftsi down by .5%. >> a drop in oil prices. among the reasons in pullback, kuwaiti oil workers ending a
6:01 am
three day strike which had cut production by nearly half. in the meantime back in the united states data showed that stockpiles actually rose last week. despite all you see oil prices down about 2%. >> the biggest intel earnings topping estimates. that is the good news, revenues were in line. the chip maker giving weak current quarter revenue guidance and as a result cutting its full year profit margin outlook. shares under some pressure. but intel also announcementing it is going to be cutting 12,000 jobs globally as it works to diversify away from the struggle pc industry. >> this restructuring is a tool to do that. and what it allows us to do is to be more forget, to be more profitable and to increase investments in some of these new areas, things like the data
6:02 am
center and memory, internet of things, 5g and opportunities in the client space where we can concentrate investments on areas we think we have great return and can generate for intel in the future. >> new roles and a formal search process will begin for a successor. and intel's ceo brian krzanich on squawk on the street this morning at 9:00 eastern time. and one thing they have effectively given up on mobile. but the other component of this is they have basically said we're not going to win that space. so that is a totally different business and the margins are totally different. and by the way they still may
6:03 am
get some business from apple. there are they are in some apple devices but not always the way they want to be. >> things have moved past and something you probably should have seen a little while earlier. >> what did they lower the margins to? the forecast? >> i don't know. >> everybody over the years, margins are going up. stock goes up. margins coming up. stocks going down. i just like the number we usually talk about with -- >> 30 something sh. >> no. much higher than that. >> what's that? >> the margins. >> i know what i'm saying -- >> the numbers are usually -- to sixty. right there somebody should do something about them. the eu or anti-trust somewhere. >> because it is a monopoly. >> well it is just so unfair. >> gross margin joe -- >> and what did they lower it
6:04 am
too because you said that was one of the problems because they -- >> they tried to get a foot -- >> but for many years -- >> -- had to be because no one -- >> right. and now by default -- >> -- hard. it had to got the chip-making manufacturing process. great big chips and they cut them up and get a yield of a certain amount. and it was mixed in with the manufacturing process and how effectively they were able to do it but also kind of a monofulpo. i mean how's amd doing this now. that is like a penny stock. >> -- lot of areas though -- >> -- intel though. >> intel. >> the new mac book yesterday. has an intel chip in it. >> with cramer. >> yeah. >> we're watching technology closely this earnings period.
6:05 am
now i'm wondering what is technology because ibm is horrible but is that technology? no. intel, is that technology anymore? kind of. >> -- not great. >> -- yeah you look at the fang stuff. that's technology now. and even stuff that aren't public yet. and social media. that's what he referred to. certainly not talking about hewlett packard. the world isn't dependent on hult -- or i dare say yahoo. >> well we spend too much time talking about yahoo. >> that's my? >> yes. >> i don't know why. >> the media and silicon valley's obsession with yahoo
6:06 am
and. because it's the original. because it is the first and because it was sort of iconic everybody thinks it's somehow fixable. >> because we all know -- >> -- everything else is gone. excite is gone. even aol. thank god verizon -- i don't know what it costs to put that out of its misery. and now --. >> we'll see given the state of the auction but that auction may also change a little bit after these earnings. yahoo posted yesterday topped estimates but revenue tumbled in a big way in the pharm's latest quarter. take a look at shares of yahoo there. 36.58. even was hoping for comments on
6:07 am
the company's search for a suitor. mars ra miissa mayer saying it p priority. this as news that verizon is said to make yahoo's bitter short list. and unfortunately for them it also is a short short list. there was a view that 40 investors might come to the table and now they are down to 2 or 3. we talked about yp yesterday. ross levinson by the what i who was up for the job is now part of one of those deals. so it could get intriguing for those hand full of people still watching. and i also this morning, europe's anti-trust chief has officially charged google with violating competition rules. and do you think the margins there are too much?
6:08 am
>> -- right. >> too much? >> no. google is way too good at a what they do. and the eu is going to take care of that and turn it into a european company if they can. because they are way too good. >> let me just way out what the eu says and then you can make the argument. the eu saying that the company abused its market dominance by infairly favoring google services on -- >> number one google would never do anything evil, because it is in their corporate charter to never do anything evil. >> i only hope this is sarcasm. >> well no. peter teal once again if you can get a legally monopoly because you are so good at what you do that is the perfect kind of business to have. and i'd say google is pretty darn good at who writes those things. i don't know how it works. and i put questions in and it immediately understands my
6:09 am
question. it's amazing. who wrote those algorithms. it is almost art -- for me google is the closest thing to the artificial intelligence. and it keeps getting better and they keep hiring more people and must be just -- can you imagine them just looking at i don't know how it works. be happy with google that it's an aamerican company and we're not being strangled by a foreign company that owns google. you had to get all the way to the eu to -- >> i was just going to write let's see what happens if is joe kernen -- what the next thing would be. what do they think i'm asking for? >> we got to -- >> you got -- >> who has better hair? joe kernen or donald trump? who has a better comb over? who has a better color?
6:10 am
and who's color is real. and who's is --. so yesterday the dow was up. and dow --. goldman sachs down. another -- >> united health was a little higher. >> even though it was committing -- >> well that's why. >> they lost $650 million in that business. and they are small players. >> they are exiting a bunch. staying in a few. >> but the more exit the fewer left. >> so higher prices go. >> premiums go up even more. >> really interesting information here on google about you. i was asking some questions in google. >> yeah -- >> let's not start. >> yeah please -- >> you are not immune either. are you actually from earth originally? >> nope. mars. >> all right. back to our -- are through people that think that. the results are in and the people of new york have spoken.
6:11 am
donald trump and hillary clinton claiming victory in the empire state. billionaire investor carl icahn was on hand to celebrate last night. trump the only candidate who can stop gridlock in washington and make congress work again. >> john joins us now with the latest from the campaign trail and i'm wondering whether you are getting your resume ready. bypassen disgust and hate for wall street. so like 80% of both parties really hate wall street. should we start covering it in a more oppositional way than we already do? what do you think? should we join? >> we got to just tell the truth like we always have, joe. >> i agree. but the mainstream media, the narrative of what caused the financial crisis, they have made a living saying it was the big banks and now the media will at
6:12 am
least in our case, now we'll pay the price for that. i think it was fannie, freddie, a societal thing but at this point it is just pervasive. >> a big theme running throw both campaigns and the sweeping victories of trump and clinton both last night are going to allow them to move past some of the negative headlines. and you had both of them trying to turn towards being scene as the presumptive nominees. first here is donald trump. >> even though we are leading by a lot and we can't be caught, it is impossible to catch us. nobody should take delegates and claim victory unless they get those delegates with voters and voting. and that is what's going to happen. and you watch. because the people aren't going to stand for it. it is a crooked system. it is a system that's rigged. and we're going to go back to the old way. it is called you vote and you win. >> so he's trying to foreclose
6:13 am
the possibility of any kind of contested convention which has been full of speculation within republican circles lately. hillary clinton for her part tried to shut down this idea that bernie sanders is going to be able to take this fight all the way to the convention. >> we are going to keep our families safe and our country strong and we are going to defend our rights. civil right, voting right, workers right, lgbt rights and rights for people with disabilitie disabilities. those are after all new york values and they are american values. now we've also got the postnew york delegate counts. donald trump has a lead almost 300 over ted cruz. and you have projections now showing donald trump right about at the 1237 he needs to be
6:14 am
nominated. could end up a little over or under but the closer he gets the more difficult it is going to be to stop him. hillary clinton for her part has a 700 vote lead over bernie sanders when you count the super delegates. going to be very difficult to flip those as you get closer to the convention. democratic race looks definitively over. the republican race only has a tiny bit of life in it guys. >> i just can't imagine you heard secretary clinton's speech there, when we know the two, if it's trump and hillary clinton, this is going to be unbelievable, john. it is going to be interesting to cover. >> an all new york values race. we had one with tom dewey and franken roosevelt. >> nothing is going to be off limit. they are going to go after trump obviously so hard. like the "daily news" this morning.
6:15 am
calling it, its own state. the evil empire gives the hateful narcissist -- that is going to be the kind of stuff. and you are going to hear crooked hillary. bill's pick dill lowes. this is going to be unbelievable to watch. >> gloves are definitely going to be off guys. >> holy unbelievable. >> did -- story? >> effectively wants to get rid of janet yellen. wants to take back fed. it was a bit confusing. >> donald trump has been flexible on policy. he'll articulate something and then he'll adjust when there is some blowback. and i would expect that is the case with the federal reserve. but, you know, donald trump has an operating style which makes a
6:16 am
lot of people nervous and i think hillary clinton is certainly going with wall street and the business community going to do everything she can to try to exploit that and make an incursion on some turf that republicans would like -- >> given how much everybody hates the business community and particularly wall street which i think they probably attach to the federal reserve, do you score points by saying i want to get rid of janet yelen at this point? >> i don't know. first nobody knows who janet yellen is. watchers of our network do but the average american doesn't. you are going to hear rhetoric on both so i'm not sure how much advantage trump can get on that issue in a narrow way. >> if you gave me a choice of interest rates and where i stand on interest rates, my choice
6:17 am
would be i like low interest rates but a i think they should be higher. >> i think i agree with that statement. >> i like low interest rates but i think they should probably be higher. who doesn't like low interest rates. >> the i believe he said the best thing we have going for us in this country is that interest rate are so low. there are lots of good things that could be done that aren't being done. >> is he talking about fracture -- >> -- and then he says people who think start adding -- then he goes on to explain why it is a good thing. >> it should be higher at this point. if we had an economy that could stand it, that is the normalized level of interest rates. >> the problem is -- >> -- the normal. >> -- central banks. >> i actually think the more i'm looking at this. i think he actually wants the
6:18 am
interest rates to be low. he sort of makes this is interesting back and forth case. i this i he wants the lowest rates i'm telling you. >> real state developer. >> if you could have your cake and eat it too we'd all want lower interest rate forever. >> the problem with low interest rates is it's unfair to the people who have savered every penny and -- >> not that horrible. you are going to hear a lot of it for the next seven or eight months. maybe then it will be over. or maybe it won't. worst nightmare. >> coming up. the political effect on the markets. and later steve forbes is going to join us as our special guest right here on "squawk box." we're coming back with a lot more in just a moment. ♪
6:19 am
6:20 am
6:21 am
president obama is going to
6:22 am
be meet category king salman. take a look at futures at this hour. dow down about 27.5. nasdaq off about 6 and s&p 500. welcome to our hosts. we can talk politics. have politics impacted? do you think any of this matters at all? >> first the research we've done suggests that over long periods of time the party that controls the white house doesn't have that much effect on the stock market. the second thing is my guess is that the market is assuming hillary clinton will win, whoever is elected on the republican side and whether you
6:23 am
like or dislike their policies she's essentially running for the third term of president obama. the market has a biased towards the status quo. so uncertainty creates volatility in markets and creates the possibility of a downdraft. so a continuation of things the way they are, whether they like it or not tends to be positive for the markets. >> chuck, when you hear that donald trump wants to get rid of janet yellen, does that scare you? >> i think there are folks on the democratic side that feel the same way andrew. and i agree with ed one of the things that the correlation of what we might call red stocks and blue stocks this cycle is, for instance, there is no group that is more red than, say, the energy stocks. but look at this group trying to regain some energy so to speak, regain pricing power, the fact that republicans would help to really gin up infrastructure
6:24 am
citing and fracking and all that really doesn't have any near term impact. that is not sort of a binary decision with regard to investors. that is much more long-term and the healthcare equation with obamacare is much more complex as well. it is not as though folks are waiting with bated breath. i think the hillary clinton is likely to win. and if trump does win that he'll probably come around a bit. >> you're saying we push back as hillary. and you push back against alarmialarm ist characterizations of trump. and also you say we expect him to soften his position and ultimately turn into an anti-regulation pro business supply cider. maybe that is why the market is up. maybe it's up because it wouldn't be so bad. >> when you think things about
6:25 am
hillary clinton that she'll turn and come more to the middle. >> i i don't have any idea how she would actually govern because i don't know that she believes anything she says. >> can i give you another theory. >> from a wall street perspective you can't get senator sanders off the stage soon enough. he's begun attacking the bank model as fraudulent. >> straight up. if you were just voting on something that will benefit a ostensibly the economy and therefore the market you vote for who? >> i would probably vote for hillary clinton. because again, as a markets guy, i like continuity. and even though i may disagree with some of her policies, if she continued -- >> -- didn't you? >> i did, yes. >> -- background. >> i grew up in the people's
6:26 am
republic of massachusetts. >> ask of chuck then. >> chuck is not a market guy. chuck is a political guy. >> i understand. >> as long as we have full disclosure. chuck, if you are playing simply for markets and the economy only. take all the social issues -- >> can you think bernie for a second? >> no. >> it was close. >> i think again there is more certainty with hillary clinton and we're in the fourth year of a four year election cycle. or four year administration sl cycle. so stocks are likely to do well. they will like that certainty. but again with donald trump, you know, he absolutely will be working, would be working with a republican house and senate. and you look at the things that are teed up for the next congress to deal with. where the risk light is on so to speak.
6:27 am
it will be tax reform and things like that. not necessarily trade and protectionism where he's beginning to really frighten our allies. and with a republican congress he can do constructive things. he is a supply-sider. and i think he'd be co-opted like you said earlier by a lot of the things a republican congress would draw him towards. >> you say you don't believe anything that hillary says or thinks. >> we don't even need a studio. we can just move across the street and just broadcast from there. although they would have two slows on between 6:00 and 9. anyway. >> do you believe donald trump believes what he says? he changes just as often as hillary. >> he changes just as often i believe. i believe what chuck said that
6:28 am
he'd be a supply-sider and i'd rather his corporate tax reform than hillarys. i would. >> okay. >> things are getting interesting. ed, great to see you. when we come back, crude prices falling after oil workers in kuwait ended their strike. president obama is in saudi arabia. we're going to be talking the energy, and more with steve forbes. and the s&p 500 winners and losers. ♪ reach for the stars and ♪ you're way to fly ♪ you're hungry for heaven ♪ you can release yourself but the only way is down ♪ ♪ we don't come alone ♪ we're fire
6:29 am
6:30 am
6:31 am
a good car has to maneuver quickly. that's also true of a good car company. people have always bought cars. but we saw an opportunity in sharing cars. so we moved fast and launched car2go in 29 cities, all around the world. doing that required dozens of data centers, designed for speed and performance. we built our business on the ibm cloud. because that's what the ibm cloud is built for.
6:32 am
welcome back to "squawk box" on cnbc. first in business all over the world, worldwide. u.s. equity futures are backing up a little this morning after another positive session yesterday, in spite of some weakness in a couple of key dow component likes ibm and gst goldman sachs and crude prices we check it for now. if we stay above 35 i think slowly it's going to go away like we used to check the 10 year every two seconds. it's down 91 cents a day. is that going to effect anything necessarily? >> still above $40. >> if it tests the lows on 27,
6:33 am
then it will be back on everyone's radar screen again but there's been some stability in the dollar and in all markets recently. which is one of the reasons the stock market has been able to challenge its old highs. >> good morning. >> president has landed in saudi arabia in just the last 20 minutes. we haven't actually seen pictures yet but will bring them to you. here is the official agenda. he's going to meet with the king of saudi arabia and then tomorrow the summit. on the agenda is regional stability, isis and iran. three different topics but they are all of course intimately related. some reporters are calling this the damage control tour. because there has been a number of reasons why saudi arabia over the last several years have felt
6:34 am
that president obama wasn't their best ally. and on top of that there was this article that came out in the "atlantic" called the obama doctrine. and among a number things he called the saudis free riders and he said they needed to learn to share the neighborhood with iran. and he is clearly irritated that -- orthodoxy compels him to treat saudi arabia as an ally. ouch. so the campaign was on the phone yesterday to say look, this is the fourth time he's been there. more than any other president. and that while they still have deeply aligned interests and they are working together on keeping stability within the region. but it is going to be probably a tense meeting. in addition to by the way having done this deal on iran with the issues, abandoning -- in egypt. they have a whole list of things.
6:35 am
and then there is this on top of it. >> the eleven things. >> eleven thing the president is aligned with saudi arabia on this. >> i think he's right. and it is an unpopular position but i think he's right in this case. >> do you want him to release it? i'm sure we're on opposite sides of this. >> you can't release it without being open to lawsuit. >> right. >> and also we need a stable -- obviously we need a stable saudi arabia. we don't need a libya. >> i'm down the middle. i'm objective. i don't have an opinion. >> -- schumer bill. >> what's your opinion i'll talk the opposite. >> this is willie sutton. if we allow our citizens to sue a sovereign, it open us up to being sued all around the world. and we've got more money over here.
6:36 am
and i heard someone say well we don't back terrorist activities. we would get sued every time there was collateral damage on anything we do anywhere. we'd be open to lawsuits. but the president, it's an unpopular position he's taken and i'm trying to give him kudos for that in this case and putting his money where his mouth is with saudi arabia. >> and just to give you an example. iran has things seized all the time. they have frozen assets because people have sued them for their terrorist activities. so if this opened up the ability to seize saudi assets it would be very problematic and they have a lot of u.s. assets they say they would have to sell. >> steve forbes, what do you think of our relationship with saudi arabia? what do you think of the president's move right now in terms of this legislature? >> well we think we have a
6:37 am
strange presidential year but a foreign policy situation with saudi arabia now feels closer to israel than it does with the united states and what the president sate in the atlantic article is not off the cuff. it is how he feels and the saudis have known it for several years. which two years ago they their alliance off. and they feel we're absolutely unreliable. they are frieghtened of iran taking over that neighborhood. and the saudis are just waiting, hoping they can get a new president who realize their importance and their view of that part of the world. >> the saudis have new leadership as well with the crown prince salman who's here and been a little more voekel and strident than previous rulers, especially -- >> -- internal reforms and also is grappling with the collapse in the price of oil. here saudi arabia has also been
6:38 am
a huge supplier of subsidies toi want to keep that economy going. egypt is fighting the death battle with isis and the economy is shaky i specially with tourism wrecked by these attacks. you have a volatile dicey situation the saudis feel and the israelis feel that this president doesn't get what's really happening there. on the economic point with saudi arabia. we've learned in the last 24 hours they have just borrowed $10 billion. first time in 25 years. and it is expected beyond doing this typical loans, old style loans that at some point they are actually going to do an international bond as well. >> extends their capability of being able to push it on the oil front too and saying we're not going to sign any deals we want this to ride out. >> exactly. >> and even talk an of an ipo. >> of a ramco -- oil company,
6:39 am
yes. >> -- >> extremely difficult to do. ramco is so deeply embedded within the structure of the state that to separate off the revenues. >> sovereign bonds sound like more -- >> i ulyou would have to tamp d the whole government. >> that's why investors figure in the fees. there is nothing like necessity to get the mind going. create activity. >> means creating a lot of vested interests. >> trying to make some cuts and recognizing oil may not go back to a hundred dollars a barrel in the next few months. >> if you ran as an outsider, it wasn't your time for president. >> timing is everything. and there are some things you don't control. >> this is unbelievable the year of the outsider. >> what's amazing on the republican side is that even
6:40 am
though as positions, i don't agree with a lot of them, he's come across donald trump as the economic optimist. you saw it again in his speech last night. he's going after the federal reserve. the fed has a lot to answer for. i don't know if trump is going to give a speech where he slumps that out. cruz has to do the same thing. >> are you a cruz man at the point? >> even though he likes the flat tax. >> he likes the there is a tax which i like but he has to lead that. the other candidates at 17 what do the others stand for? you are hard put to define them. they never clearly define themselves. >> hard in a field when you have 17 people. >> that is precisely why you need to break out with a signature issue. 4% gdp. i knew what he was talking about.
6:41 am
when you say that to most people, sounds like a hair formula. >> key issue has been the wall up to this point like a pink floyd. >> -- always relates two. he always related to was going to improve your life. that is what the others have not done. ted cruz talks about the flat tax. you should lead with it. you have got to relate to it this is what it's going to do to your salary so people have a takeaway what that means for them. >> you're still undecided. >> no. >> you got laughed ow out of the room on a flat tax. it went nowhere. reporters made fun of you back then. and now ted cruz can campaign on it and it doesn't nearly bring up that reaction at all. >> 40 countries and jurisdictions around the world have a flat tax and it's worked fairly well. it is not something from the lbt
6:42 am
anymore.laboratory anymore. . the key thing is which tax policy is better. trump has three tax brackets. and one of the things cruz point odd is when you put two brackets together that is like putting two rabbits together. they breed and multiply. you have to go with one or we just slip right back into what we had. >> is it safe to say you won't endorse bernie sanders? >> i think that is highly safe. >> is it safe to say you won't endorse hillary clinton? >> i think you can bet your 401(k) on that one. >> you can't bet that on much. that's pretty good. >> you euro talking about trump or kasich or cruz. >> whoever gets named. >> i'll support the party nominee. >> you have been to the convention before. what's going happen.
6:43 am
>> what's going to happen is it is going to be the biggest let down for journalists since i don't know what when. they all expect the ultimate and unless cruz radically changes his game. the way ronald reagan did. climbed on the panama canal issue. and 1980, came back and used 30% across the board tax issue in new hampshire and turned it around. >> what's trump's final delegate number? 1100? >> somebody's going to put him over. those things take a dynamic of their own. especially when you have delegates knowing this is their last chance for 15 minutes of fame. i pick the nominee. if trump wins most of the primaries on june 7th when you have five small one, he wins those it is over. i don't care what the delegate
6:44 am
number is. >> wins -- >> that is where he may go for a long ball. >> don't do that again. someone tried that another time. >> yeah well instead people say why don't you go kasich or that kind of thing. he might just do something totally out of the box like colin powell. >> upset forbes. >> i would not bet my 401(k) on that. >> goldman sachs was up yesterday. visa has a plan to speed up chip card at checkout after complaints they do take too long to process. and i start wondering uh-oh. actions speak louder.
6:45 am
something we'll show you. through small things, big things,
6:46 am
and spur of the moment things. youto get the help you'refar looking for. big things, that's why at xfinity we're opening up more stores closer to you. where you can use all of our latest products and technology.
6:47 am
and find out how to get the most out of your service. so when you get home, all you have to do is enjoy it. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around.
6:48 am
welcome back to "squawk box" everyone. right now it is time for executive edge. visa is updating its software. it will allow customers to dip and remove their cards from payment terminals in two seconds or less. >> and facebook exploring new ways for users to profit from their posts. the social media giant reportedly considering adding a tip jar, letting users make micro payments to one another to show appreciation. kind of like the like button but instead you give them a little dough. facebook hinting at several ways you might be able to use your posts to make money or promote a cause. of course the big question online is, will they take a commission for your little jar contribution. so if you are going to give a buck or $10 to somebody else is
6:49 am
facebook going to take a piece of that. >> i don't understand this. the go fund me sites. what do walmart, sea world and others have in common? that is the top of tic of the h economy the call just came in. she's about to arrive. and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t.
6:50 am
6:51 am
6:52 am
6:53 am
before befo . businesses looking to build a more humane economy. just this year walmart, sea world, armani, all adjusting practices in the name of animal protection. joining us now is wane pacelle, the president and ceo of the humane society, the largest animal protection organization in the united states. he is also author of the new book "the humane economy," how innovators and enlightened consumers are transforming the lives of animals. wayne, good to see you. >> thank you for having me. >> when you approach this entire issue -- you know, i was just telling you about all my animals in my house. we coexist with huge animals. german shepherds and the like. when i look into their eyes i understand exactly what every
6:54 am
person that is committed to the humane society -- i understand what we're feeling. just seems like it's baby steps that we have to go. the world will be hard to change, and there are things like -- how many animals do we eat a year? 70 billion? >> nine billion in the u.s. 77 billion worldwide. >> 77 billion. so we can't -- it's like you can't save them all. jodie foster, the one lamb. but if you can save just one -- >> it's an incremental process of enlightening people. there are so many issues. animals raised for food. animal testing. dog fighting. cockfighting. everything under the sun. my book is a big-picture view of all that. what's happening is we're making progress. we're now starting to recognize as a society that animals do feel, they do think. they have their own lives that matter to them. so many businesses have animals baked into the business model. sea world and ringling brothers had animal in live
6:55 am
entertainment. think of walmart. it sells 25% of groceries in the united states. an incredible volume of food. walmart says we are now going to procure all of our eggs from operations that don't confine the hens in small cages and immobilize them. >> it changes the game. >> the entire industry. >> we tasted a plant hamburger that was good. >> i love veggie burgers. >> no veggie burgher. they synthesized the chemicals together to create meat but not from an animal. >> i talk about in my chapter called the chicken or the egg or neither -- is -- we're creating plant-based proteins to make meat-like stancubstances with t taste and texture. or lab grown meat. cell cultures to produce insulin. why is it so futuristic to think we can't do this five or ten years ahead. >> am i a bad person?
6:56 am
i eat veggie person and try to use other kinds of proteins. i have three kids. we are still eating chicken and beef. are we bad? >> you're -- 95% of people are eating animal products. the issue is can we do a little bit more on the plant-based food side. we do meatless mondays, one day when we ask people to reduce. if we reduced our meat consumption by 15% we'd save a billion animals. >> did you hear vegetarians are more likely to get cancer than -- >> no, no. >> you saw the study. >> it's a preponderance of information -- >> saw the study that red meat causes cancer. take all studies with a grain of salt. but it's nuanced and it's the tragedy of the commons, too, in certain instances. sometimes conservation is helped by trophy hunting. >> i don't think so. >> never? >> no. >> i thought it was. >> some guy pays $50,000 to shoot an elephant or a lion. there is a transaction there.
6:57 am
there is mine boney but the poo trophy hunterers are shrinking. you can watch an elephant a hundred times. you can shoot it only one. >> we'll be right back. wild-caught alaskan salmon.
6:58 am
from icy ocean waters...to your kitchen counter. when you cook with incredible ingredients...you make incredible meals. get your first two meals free at blueapron.com/cook.
6:59 am
great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business.
7:00 am
crude, coca cola and technology in focus. president obama arriving in saudi arabia as the low price of oil is creating growing problems in the middle east. wall street is waiting on earnings from the cola king. and tech giant intel cutting thousands of jobs. it's all about the death of the pc. the data and the details straight ahead. big night for donald trump and hillary clinton. both sides of the aisle winning their home state. we'll run you through the results and talk about where the competition stands after
7:01 am
yesterday's big win. tea time for justin rose. progolfer and winner of last year's zurich open in new orleans is here to talk golf and how he plans on defending his title this weekend. the second hour of "squawk box" begins right now. ♪ ♪ live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" here on cnbc. first in business worldwide. i'm rebecca quick along with joe kernen and andrew ross sorkin. it's april 20th. 4/20 means something i guess that's why we're playing the grateful dead this morning. the futures this morning. things relatively flat. yesterday we saw the markets close higher. this morning dow futures down 7 points. s&p futures up by just und under .5 points. nasdaq up 3.3. oil prices have been giving back this morning down about 2%. you can see wti still above $40.
7:02 am
down about 82 cents to $42.26. headlines. housing market. now about three hours away the national association of realtors expecting to report that march existing home sales rose 4.3%. donald trump and hillary clinton have won their new york state primaries by pretty comfortable margins in tuesday's voting. both had seen their top rivals take a string of recent primaries prior to yesterday's voting. printer and imaging solutions company lexmark aagreagreed to be bought by a deal worth $40.50 per share, about a 17% premium to yesterday's close. earnings out from dow component coca cola. the company earning 45 cents a share, a penny better than the street had been expected. revenue a little bit light. if you check out the worldwide case volume, that's always important. people look at this number closely. up by 2%, a little bit below estimates of a 2.5% increase.
7:03 am
the company saying they see 2016 organic case volume up 4% to 5%. it says in a currency neutral basis it's looking for earnings per share to be up 4% to 6% next year. it says currency neutral. we don't know what will happen with the dollar. yahoo topping estimates. revenue tumbled in the latest quarter. earnings aside, though, we'll see what happens with the stock. everyone hoping for comments on the company's search for a suitor. ceo marissa mayer saying it's a top priority. the deadline passed yesterday, a couple of days ago, for preliminary bids. new reports saying that verizon is said to make a bidder short list. >> a short, short list. >> there are the shares of yahoo! which have benefited -- i mean, if you own the stock, you would be glad.
7:04 am
at least it's not 25. it's back to 36 at this point. but is that where it goes, sorkin? is it going -- what's $9 billion? 40 or above? >> yeah. that would be tough. four to six billion. we're in the range. >> is it? >> it won't be take under. >> $5 billion would be -- >> part of the problem. >> it's not going to -- >> how you value the alibaba piece and what the tax implications are of how it's done. that's the whole game and whether it includes the yahoo! japan stake which is kicking off basically a $90 million a year royalty. >> do you know in advance the -- >> i know everything in advance. >> what's the golden parachute for marissa? >> i believe she'll get about 120-something million when all is said and done. >> she put up with a lot. that's a good price. >> she's properly incentivized
7:05 am
to sell the company. >> you'll hear about that, i think. >> how upset everyone is about the money she is making? >> yes. >> by the way, the whole thing -- couple of hundred million. the four or five-year period for arguably very little apologies to her is -- >> how do we get that deal for -- you know, because -- >> you have to call your agent. >> some of these twitter people on the left want me to leave. if i could do the 120 -- >> you would do that? >> start a gofundme page. buy me out. president obama touching down in saudi arabia earlier this morning. on the agenda today, a bilateral meeting with saudi king salman. the trip comes a mid strained relations between washington and riyadh. obama expected to push for better relations between saudi arabia and iran. ayman joins us now with more. i think about this a lot of different ways. there are two big players, it's not in anyone's interest for either to get too powerful. iran or saudi arabia.
7:06 am
so the president is walking a fine line here. >> yeah. it's a tight-rope walk. one of the flash points in the relationship is the september 11th bill moving up on capitol hill. the bill would make it icier for americans to sue the saudi government alleging that they were involved in the september 11th attacks. before he left yesterday president obama threw a little bit of cold water on the bill saying he doesn't support it. here is what he said on "cbs this morning" yesterday. >> this is a matter of how generally the united states approaches our interactions with other countries. if we open up the possibility that individuals in the united states can routinely start suing other governments, then we are also opening up the united states to being continually sued by individuals in other countries. >> so the president saying he is opposed to this bill. paul ryan yesterday, speaker of the house, a republican obviously, came out and expressed some of his doubts as well saying he wasn't sure this
7:07 am
was a good idea either. here is what the speaker had to say. >> i think we need to look at it. i think we need to review it to make sure that we're not making mistakes with our allies and that -- that we're not catching people in this that shouldn't be caught up in this. >> guys, the president touched down in saudi arabia about an hour ago, as you said. he is now on his way to the palace where he will meet with the saudi king. we can imagine that this topic will come up. as you said, joe, a lot of tension points in this relationship now especially with the rise of iran, the iranian nuclear deal and all of the instability we've seen in that region. >> right. every other place where a despot is -- or the existing rulers are gone hasn't turned out well. suddenly these guys don't look quite as bad as they used to, maybe. thanks. >> before you change. on yahoo!. in 2014 according to the filings, she would get paid $157 million. the latest filing shows it's
7:08 am
closer to only $37 million. >> what? >> might be actually -- >> stock based? >> i am trying to find out. i just wanted to clarify that. >> that's outrageous. >> you think it's too little? turning now -- turning now to the results of the new york primaries. donald trump receiving 60.5% of the votes in new york. on the democratic side hillary clinton won with nearly 58% of vote. joining us now to talk about what this means for the upcoming primaries, joe watkins, a republican strategist and former congressman harold ford, now managing director at the hated wall street, which we found out both parties hate wall street now, harold. it's unbelievable. that's what we get for hammering them on both sides for the last, you know, nine months. the poll numbers were disconcerting in terms of -- we cover wall street. wall street is the financial engine for capitalism in this country. and i -- you know, it's 70% disapproval in both parties. that's not good. you don't need to respond to
7:09 am
that. i didn't mean to start with morgan stanley, but i mean, it is -- we're in an odd place in this election for a lot of reasons. >> this is why outsiders are doing so well. it's the anger that you have on the part of so many people who are long-term unemployed or working part-time for economic reasons. those same folks who are not in the labor force. there are a lot of dissatisfied people out there and they're driving -- you look at the percentages -- the percentage last night that donald trump won by. i mean, 90%, i think, of the folks that voted for him are people who are really angry. >> we've let the media, in hindsight, mischaracterize what caused the financial crisis. it's now blamed on wall street instead of, you know, we've got -- how long have we been at zero interest rates? there's a lot of things that went into it. but now that's -- okay. >> here we are today. you have the two candidates that have been leading this thing from the beginning looking as if last night was the way for
7:10 am
hillary more so than donald trump at the moment but i think it's safe to say, in light of what some senior people in the republican party have said, even if trump shows up in cleveland with less than 1,237 delegates. if he gets there with 1,115 or 1,130 it will be hard to stop him. hillary clinton had an opponent who took the opposition position that you've described, joe, around a whole variety of matters including business across the country and across the world for that matter. so i think the country -- both parties are starting to show that we want to pick the person that's best likely to win and be the vessel for change. no candidate wins by saying vote for me, i'm going to keep things exactly as they are. we all want a candidate to transition us and take us to a better place. >> she is running on a third term for president obama. >> not necessarily. you saw her contrast herself with her opponent. >> careful with that. she needs his endorsement. >> i think she'll get it. i think a lot of what he laid
7:11 am
out is what the country wants. to joe's point, no doubt a feeling that a lot of americans have been left out for a variety of reasons to the growth and opportunity that exists. bernie sanders is speaking to it. i think mrs. clinton is speaking better and we'll see how republicans fare -- >> many think wall street is bad for business. it was a majority. >> there is a majority. >> it was 51% republicans. much bigger number for democrats. >> like 52% would vote for him, harold, at this point. >> we all know hillary clinton. she has been a part of the political lexicon and vocabulary for all my adult life and longer. everyone has an opinion. the more people who learn about bernie sanders in a general election -- two years ago hillary was polling at 75%. >> that's why i don't think you look at -- kasich's contention is he is better in the nebulous general election polls. >> i think kasich finishing second is interesting for
7:12 am
perhaps an assault on the cruz argument that he is best positioned. >> helping trump and hurting cruz. >> does it help kasich? >> kasich has been very smart in all this. he has made himself a player. he won his home state of ohio. the convention will be in ohio. he'll be playing to the home-town crowd again. he's been able to stay in the game and last and look like the adult in the room for -- >> by doing that he's denied cruz probably. >> staying in the game just out of pure -- just deciding, i'm going to stay in. i mean, marco rubio has more delegates than him and he is out of the race. >> art imitates life as they say. so this is going to be almost a reality tv election. >> there could be drama, for the first time at a republican convention in decades. >> the whole election will be crooked hillary versus -- that's what he'll be calling her. and trump, you're going to see things -- the clinton machine, when they don't like someone --
7:13 am
>> oh, yeah. >> you know what will come out about trump. this is going to be interesting to watch. is it a negative for u.s. democracy? will people laugh at us around the world? should we say this is the way sausage is made and it's a good thing. >> it's a very different -- >> it is what it is. >> it's a very different cycle. if donald trump is the nominee don't suppose that he won't be able to reach across the aisle and get democrats. >> i am not assuming that. >> democrats who feel they've been left out. >> do you think it will be a close election or a blowout? >> if trump is a nominee he'll be a formidable candidate in the fall. >> you're saying that so your side doesn't underestimate him or you believe that? >> i believe that. the country is evenly decided in many ways. if trump is the nominee, you know, people say favorables are this and unfavorables are that and same is true with mrs. clinton. i don't think we'll see a race
7:14 am
in the near term where the nominees come out of the party with higher favorables than unfavorables. there is so much scrutiny as joe described eloquently from the outset. >> thank you. >> i don't think you get -- i don't think this changes. now, if trump is the nominee he will be tough. the country will begin to listen to him more closely. if you look at how his campaign and professional lives over the last two or three weeks with the addition of some of the people he brought in. he showed a discipline last night. he called ted cruz senator cruz and not "lyin' ted." if this is the transition he's going to make i said to my party and candidate, i think we win but donald trump will be a tough opponent between now and november. >> gentlemen, thank you. >> thank you. >> thank you. >> go rangers! >> don't change your -- yeah. not good last night. tough last night. did you see that nash goal, the first one? awesome, up in the corner. 50 seconds left in the second period, and penguins score. we'll talk intel when we get
7:15 am
back and a bigger update on marissa mayer's pay package. >> i knew you would. the e-class has 11 intelligent driver-assist systems. it recognizes pedestrians and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash. the 2016 e-class. now receive up to a $3,000 spring bonus on the e350 sport sedan. the first stock index ♪ (musiwas createdoughout) over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation?
7:16 am
it's time to bench the benchmarks.
7:17 am
great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. welcome back to "squawk box." chips down for intel. earnings topping estimates but the company cutting revenue guidance and announcing it will slash up to 12,000 jobs globally as it works to shift its business away from the shrinking
7:18 am
pc industry. cfo stacey smith weighing in on intel's plans for diversification on closing bell. >> the restructuring is a tool to do that. what it allows us to do is to be more efficient, to be more profitable, and to increase investments in some of these new areas. things like the data center, memory, internet of things. 5 g and look at opportunities in the client space where we can concentrate investments on areas where we think we get a great return and can generate growth in the future. >> so question of the morning. can the chip maker turn it around? joining us is the senior editor at re/code. that's the question. >> hey. >> can they? >> well -- are they giving up on mobile and basically saying we can't do the mobile thing? it's no good for us? >> intel completely missed the mobile thing. they could have made the x 86 chip, which is their primary technology -- >> i used to have a 486, 386 and
7:19 am
a 286 gateway computer in the day. >> wow. they missed that entire revolution. now they're just barely in rumors making inroads into perhaps the next iphone but not even on the main processing side, just on the wireless chip set and maybe like a small segment of the iphone business. they missed it. >> so they missed that. but can they make it back in the server business, which is what they're -- what they say they'll try to do? >> that's where intel is really strong. intel's data center business is its biggest, most profitable business. and that was down yesterday too. when you say intel missed the mobile revolution, that's true because the chips -- they don't have the chips in the phones. every time you launch an app, the app is reaching back to a server running an intel chip 90% of the time. so they control that market. >> is it better on a server or mobile chip? >> better on a server, absolutely. they already have a 97% market
7:20 am
share. >> where do they go from here? >> right. they don't control more market share of servers. >> that was sort of a rhetorical question but a real question. where do they go from here? >> internet of things is something they talk about a lot. >> it's mobile for the most part, right? >> it is. but the margins are a lot smaller because the chips are necessarily smaller and the -- they cost less. so, you know -- there is a lot more opportunity. so it's a high-volume opportunity. >> this big cost-cutting issue of 12,000 jobs, do we know where they're going to be? didn't seem like they laid it out just yet. >> they didn't lay it out. but intel bought altera, $17 billion, i don't know how many people there were. you have to be assume there would be some layoffs as a result of an acquisition that big. it actually says a lot about intel's strategic reasoning because the chip is not going to be able to get much faster.
7:21 am
you have to have ancillary chips connected to the main chip to help it to do more stuff. >> moor's law is over? >> i didn't hear that. that's new for me. >> in about 2022. the industry is planning around a different set of assumptions. you're not going to get the two to three-year doubling. >> everyone moving on the mobile side to the graphics chip. >> yes. >> does intel have a piece of that? >> they do -- they really compete within video. that's the one -- nvidia turned gpus into like one of the central chips for supercomputers that are simulating nuclear explosions and doing medical research and exploring for oil and stuff like that. so intel has that. it's just not as good. >> is there anybody who can compete with them, intel, that is, on the server side? we keep -- >> yes! yes, there is. but they're just getting started. the other architecture, the arm guys. >> the arm guys are in virtually
7:22 am
every front. >> qualcomm, people like that. they -- they would like to get that kind of a chip in, which is, you know -- kind of like similar to the chip you find in your iphone. they would like to get it into servers. it's kind of a small, small thing yet. google would like to have an arm-based server. facebook too. they'd like a competitive alternative o the intel based chips that go into the servers they build. they'd like some alternatives. >> i feel very educated this morning. sadly, though, because i thought the moore's law thing would continue. >> no, no. >> multi-level something that was going to get around it. >> stacking. >> i forget what it is. >> nanotech. >> just remember. intel makes chip better than anybody else. if there is a way, they'll figure it out. the ceo of intel will be on "squawk on the street" at 9:00 this morning. when we come back, earnings will be a key driver in today's trading session.
7:23 am
the dow logging five out of six positive days. several quarterly results still to come this morning. we have already heard from coca cola and the company beat on the earnings per share, light on the revenue. looks like the stock is a little lower right now. we'll talk about all the market moves when we come back. it is national pot-smoking day. lots of theories and myths about the origin of the term "420." april 20th. the story behind the term today. "squawk box" will be right back. d aflac pays cash. aflac! isn't major medical enough? no! who's gonna' help cover the holes in their plans? aflac! like rising co-pays and deductibles... aflac! or help pay the mortgage? or child care? aflaaac! and everyday expenses?
7:24 am
aflac! learn about one day pay at aflac.com/boat blurlbrlblrlbr!!!
7:25 am
we like that. not just because we're doers. because at sheraton, we're changing. big things. small things. spur of the moment things.
7:26 am
♪ changes you'll notice. wherever you are in the world. because it's 4/20, it's being called national pot-smoking day. there are a lot of theories and myths on how 420 became the term used amongst weed users. so we're going to set the record straight. a group of five friends in
7:27 am
california known as the waldos by virtue of their hang out spot out side the school, coined the term in 1971. it was harvest time and they got word of a coast guard service member who could no longer tend his marijuana plants near the reyes peninsula. so they decided to pluck some of the free buds and they agreed to meet outside the school at 4:20 p.m., supposedly. to begin that hunt. ♪ ♪
7:28 am
(ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store.
7:29 am
7:30 am
welcome back, everybody. among the stories front and center, united continental announced changes to its board of directors as part of an agreement with activist firms par capital and altimeter capital. it's adding two directors designated by those firms. airline also adds a mutually graebl independent director within the next six months. stock down 15 cents. watching shares of coca cola
7:31 am
after the company came in with earnings of 45 cents a share for the quarter, a penny better than the street was expecting. if you look at worldwide case volume, slightly down. stock down 1.5%. mortgage applications rose 1.3% last week. new purchase applications did fall but refinancing activity jumped by 2.6%. the average 30-year mortgage rate was 3.83%, virtually unchanged from the week before. we had mentioned marissa mayer's severance package or what she would get if the company were sold and she were to leave the company as a function of the change of control. we mentioned it was about $157 million. that number was actually based prior on a prior year. it's closer to $37 million. i mentioned both numbers and we said why was that. >> for a good reason. >> it's actually a good reason. a large part of it actually already vested. the reason it was 158 originally is because she would get accelerated vesting on shares
7:32 am
given to her when she first joined the company. so much of that has already vested. >> say the number. >> about $110 million, i think, of the component that had vested maybe last year. so she's -- yeah. >> paulson money, isn't it? >> a little bit of the explanation between the $37 million number and the $157 million number and what's changed over that period. >> okay. in this current environment, any number like that people -- we're in that environment right now. they'll shake their heads. >> i get it on twitter all the time. there are people who will say, look, when she got to the company -- the stock has close to doubled. >> you're preaching to the choir, right? i'm talking about people that, you know -- >> just saying. now, the flip-side is some people would say it doesn't matter who was in the job during that time period because it was because of alibaba. >> by definition, if it -- people would argue it's not a free market but it's a market-based system that results in these things, right?
7:33 am
like baseball. that's not a lot of money in baseball at all. and those guys -- they got a good fastball or they're a lefty with a great curveball. >> the market situation is slightly different in that it doesn't -- >> how did it happen, then? >> alibaba. nothing else happened but alibaba. >> someone bought into that. >> the core operations that she ran have been an unmitigated disaster, yet the stock has gone up. >> my point is someone wanted her to come there after a series of other losers who were unable to do anything. they wanted to bring her there. >> let's talk about what happened. they brought her there. they paid her this money, right? she effectively then bought him and the activists off and off the board. and she put her own picks, effectively, on the board. welcome to your crony capitalism. >> i don't know. >> that's what actually happened in reality. >> you know who said that.
7:34 am
nobody gives you power. you gotta take it. >> well -- give her credit for taking it, then. >> jock ewing. >> i thought -- >> he said it to his son bobby about jr. >> i'm saying, if you look at the map of what's taken place over the past couple years it's more complicated than just market forces at work. >> she has not made off. it was earned fair and square. god bless her. she pays a lots of taxes. i hope she does great fi philanthropic stuff with it. she didn't inherit it from her father. >> the markets overall had a positive week for anybody who has been invested. the dow and s&p 500 striking highest levels this year. with possible crude oil chaos. plenty to keep an eye on. global market strategist at jpmorgan funds joins us and jim paulsen, chief investment
7:35 am
strategist at wells capital management. welcome to both of you. >> jim, you think the s&p 500 is likely to break out to new highs here. >> i do. >> that's different than what you have been saying for a while. >> i had a range all year of 1800, 2200. went down there on recession fears that weren't founded to 1800. came back to about unchanged, finding out they weren't going to recess. right now we have positive things pushing us higher, becky. ending the deflation scare. we're, i think -- >> commodity prices picked up. >> yep. i think so. we're also underneath that is core cpi and wages also going up. i think we all realize this might be the worst quarter for earnings and they get better in the second half. i think we've gotten broadening evidence that there is a pickup around the globe economically. economic surprise indices are jumping in the world. europe, britain, canada. i think we'll have a global pickup which is, i think, the
7:36 am
real undertone of this rally, being led by international markets. >> do you offer your bunny thing? your bunny jump is still rising. supposed to jump and come back down. >> i think we're bunny jumping. bunny jumping to 2200 and then we'll find out when we get a global bounce in growth if we have to raise rates. >> we are getting somewhere. what if we go to new highs? >> i think we will. >> you do? >> yes. >> not much. >> what you have to do with the bunny barket, j bunny market, joe, is play the timing. there is not enough return just to buy and hold. >> sustainable. >> it doesn't go very far. >> i don't think it does. >> it's kind of sideways. >> i think if the recovery lasts several more years, which i think it will, i think we'll go higher but returns are more like 5% per annum buy and hold. if you want to add to that you'll need a little -- a little market timing.
7:37 am
>> anastasia, do you agree with that? >> i do. i think it's a market that you have to allocate and tactically. one of the near-term concerns that we have is that the sentiment has run a long ways here. for example, the multiple on the s&p expanded from 15.5 times to 16.8 times. in all of that was sentiment. it's not necessarily earnings recovery. >> is there a deserved valuation on these things or do you think it's behaviorally. >> it's behaviorally. but to jim's point, you could argue we left behind the recession fears, at least in the first quarter. that's why you see the rebound. i see the reason for the markets to move higher, looking past the near term, the earnings inflection point. that's really key. there is very little to like about the first quarter's earnings, for example. >> they haven't been as bad as many had expected. more than 70% beat expectations. >> that's one thing to like.
7:38 am
the expectation for for a 9% year over year decline. hopefully we'll get something better. so far the earnings surprise has been about 5% which is good. that's the first thing to like. the second thing to like is that, in the third quarter of this year, we should flip to positive earnings. but one thing that i would caution is this is not going to be necessarily across the board. if you look at multi-national versus domestic companies, for example, domestic companies are not going to have this inflection point. in fact, they are earnings will stay stable. multi-nationals, that's where you see the greatest inflection point. energy is where you see the other inflection point. so i think those might be the areas to look at. >> in terms of energy, that's where people get a little nervous with things. they think we've come a long way very quickly. we've stabilized. you sound like you think we really have stabilized here and we're not going to see -- we have had guests who said we'll set new lows with apple at $27. >> i think we found a new range. i wouldn't say we'll stay at $40
7:39 am
a barrel the rest of the fear but the seasonality here favors a higher range. the range is somewhere between 30 and 40. 30 is what opec is not willing to tolerate oil prices beyond and ho 40 is a more comfortable proposition. it's all about finding the range. that's what allows earnings of the energy companies to begin to recover from very shallow levels as we know. i would also say, you know, i am much more interested in large-cap integrated companies than let's say the small companies that -- you know a lot of them will go out of business. >> anastasia and jim, thank you both for coming in. great to see you in the studio. so we don't have amoroso. >> no. >> different one. >> we were talking about it before. >> maybe next time i'll bring a friend. >> i saw her last night on another network. >> anastasia is ours. our guest. >> who we know and love. >> i saw it on the guest list. >> sorry, bud.
7:40 am
>> okay. [ sighs ] >> anyway, you were great. i thought we had pat paulsen. still to come, the president's middle east mission to saudi arabia. it's old allies facing new pressures, namely how the united states is approaching iran. the handling of syria and its harsh rhetoric of the kingdom. more on the president's trip and oil prices and the global economy. up next, justin rose joins us. last year's winner of the zurich classic defends his title this weekend in new orleans. i still haven't recovered from the putt in the ryder cup. what a stud! joins us on set after the break.
7:41 am
ok team, what if 30,000 people download the new app? we're good. okay... what if a million people download the new app? we're good. five million? good. we scale on demand. hybrid infrastructure, boom. ok. what if 30 million people download the app? we're not good. we're total heroes. scale on demand with the number one company in cloud infrastructure.
7:42 am
7:43 am
[ cheers and applause ] [ whistle ] >> it is tee time. the zurich classic kicking off next week in new orleans. joining us now, the defending champion of last year's classic. pro golfer justin rose who has a recognizable face but maybe the sweet swing is even more recognizable. everybody loves -- johnny miller, anyone talks about it, you have the current swing of the game, i think. and you compete in every major too. yeah. >> yeah. obviously i've through the years
7:44 am
worked hard on the swing but i think it's rhythm. >> it is rhythm. >> that's what glues it together. >> my arms and my body do not want to work -- >> speak to one another? >> they don't. it's from here. i cannot start down slow. >> that's exactly the thing. people get to the top of the back swing and are thinking about hitting the ball already. when you think hit from the top you lose everything good that should happen. >> if we start talking about this we won't get to -- i might have to leave the set and talk to him in the green room. the first thing i said in going to break -- and we'll talk about everything you want to talk about with business. the putt at the ryder cup. how long was it? phil was like, i'm going to win this match. and that went in and it was like the whole world shook, didn't it? >> it was funny. i had my blinkers on playing my own match. when i watched it on the replay, the whole comeback, that obviously seemed like a pivotal moment. >> it couldn't go in. that putt. it was impossible. >> i haven't made many putts
7:45 am
longer than that since. it was at the right time for me. it was about a 40-footer. i did remember visualizing it over and over thinking i had to make the putt. obviously at that point in the proceedings, every single match was vital. >> phil was unbelievable too. >> we had such a great match from start to finish. we really did. obviously it hurts to lose but he was fantastic in defeat. >> then i remember it was like a par 3 at marion. phil -- i think he was pumped up. you ended up -- he was on the short end of that one too. >> sorry, phil, nothing personal, i promise. hey, it was so good to see him go on and win an open championship and that's probable the one he possibly didn't expect to win. i bounced back the next week. >> he did. i wonder if jordan does that. >> i think jordan does do that. >> remember rory at same place, number 10 at augusta and then he won the open by 15 strokes or something. >> he did.
7:46 am
you are not going to go through your career without some type of slipup, whether it be two years after turning pro or ten years after turning pro. something will happen in your career. you can't hide from that. so the fact it's happened both early to rory and jordan, it will make them stronger. rory has proven that. jordan is incredibly mentally tough. even in a small scenario, when he makes a bogey during a tournament you can pretty much bet your bottom dollar that he's going to make a birdie pretty soon after that. he is very tough. >> golfers are good guys, a lot of times. we know about -- i know tim pretty well. the amount of money that -- is there any other sport, really, that gives back as much, do you think, in terms of any, you know -- since it goes to different cities, the charities involved in the cities with the tournament, they benefit greatly almost every time. >> that's very true. the pga tour has instilled in us that giving back to the communities in which we play is important. we've taken that on board with the kay and justin rose
7:47 am
foundation. she gets top billing there because she does most of the legwork. it's very important to give back in the communities in which you live and that's been a good thing for us. zurich classic in new orleans. it's a good example of supporting a community after hurricane katrina and obviously through the last ten years or so i've seen what they've been able to do there in terms of rebuilding. it's a team effort a lot of times. >> someone sent in a picture of you -- they said give you major kudos during masters week you made it a point to go help the kids at the drive. >> yeah. >> chip and putt thing. that's pretty cool that augusta does that too. >> absolutely. they've taken on the mantra of trying to grow the game of golf and through drive, chip and putt it's a fantastic way to engage kids and obviously myself and then, you know, some other megastars, justin timberlake. guys that kids with identify with and can identify golf being cool. the three of us had fun with the
7:48 am
children. it was a nice way to start my week. >> his game is not awful, justin. right? >> he is very good. he is a scratch player. i think he's playing off two currently but very solid player and super competitive too. >> he is young. he hasn't gotten -- i don't even -- it's like -- it's like -- i'm not going to say the word because it starts -- i can tell you how it starts. it starts with the putter. >> he doesn't want to -- >> then it goes to the chips. i can yip -- i can yip a drive i think from up here. you don't have anything for me? a psychiatrist? a drug or something? >> you're probably -- yeah. i don't know what's the easiest option, but you know, obviously -- the short game is -- the short game is ultimately -- your mental state manifests in your short game typically. you're right. it starts with the putter and works its way back through the bag. >> is that true? >> i think it's true. >> i think i'm going to cure it. i'm okay putting. not great. if i can get the sand wedge -- if i can -- if i'm working on
7:49 am
something that's working. accelerating through a little bit more. it's becoming a little less yippee. i'm trying to talk myself into it. >> my advice is you have to commit to the process of the shot and not get too interested in the result of shot. i see that with guys with putting all the time. they're peeking at the hole before they make contact with the putt. you have to trust it a little bit. like anything, good processes end up with good ruesults. >> i have a golf business question. you're participating in the olympics. >> yes. >> why did you decide to do it and why did so many golfers decide not to do that? >> i would say the majority of golfers are very much excited about the olympics. it's only adam scott i've heard who is maybe not going to participate. for me i view it as a once-in-a-lifetime opportunity. i'll go down there early, go and take in the opening ceremonies and i'm going to slip on the track suit and feel like a real athlete and, you know, just really embrace it. i think anytime you get the
7:50 am
opportunity to represent your country, i think it's something that i have always -- >> did the sponsors push you to do it? >> no. it's the one tournament where there is zero visibility with your sponsors. >> you have to use everybody else's sponsors. >> yes. i think it will be great to grow the game. should a player from an emerging nation win it that will be huge in terms of growing golf mnot just in that country but worldwide. >> will you take the contributions for your foundation, justin? is that how it works or is it self-funded from you? talk about it. you have three different things you do. nutrition, books and what else? it has to be your wife. no golfer thinks about that stuff. >> the simple tag line is feeding hungy tummies and curious minds. they're linked. if you're hungry, you can't go to school with focus. you're not in position to learn anything. the nuts and bolts of it are feeding children, trying to get them to school in a situation
7:51 am
where they have the capacity to learn. and then from there we try to sort of bring in, you know -- we add books. we've provided 40,000 books to the 1600 children we feed every friday in orlando. from there also trying to broaden the horizonts in terms f experiences. working with local hospitals to give tours just so say, hey, i might want to be a doctor one day. or who knows what they see. a simple trip -- we took them to the beach. it's amazing what kids take out of that when you take them out of their -- very much their -- the environment which they see which might be only one or two blocks. you take them out. we took them to bay hill, for example. they couldn't believe how soft the grass was, how different it was. it was cool to see what the children take out of these trips and experiences. >> we're going to make it through the interview without using the "t" word. which shows you the state of golf with guys like you, rory, jason, jordan, ricky. golf is in good shape, i think. >> golf is in really good shape.
7:52 am
>> i didn't even think to use it. >> the "t" word? >> i'll say it. it will be great if tiger makes it back. >> he is what he is. he has how many majors? >> 14. he has been the generation that the guys you just mentioned, jason, rory, me -- we grew up with him. >> did you read the interview with him? >> no. >> you weren't sure whether he really wanted it even anymore. did you read that? >> i can't imagine. >> i don't know what that was. he was trying to set the expectations low or -- >> i think that's smart. anytime tiger has done anything there is so much hype about it. it's probably smart for him to try to make the comeback -- >> you guys are not machines. jordan, the second ball that went in the water. you're not machines. you'll hit a fat shot, a nervous shot. i think i have seen -- yeah. i'm the king but even guys that you're not machines. but it's amazing what you do. you're like a different breed. >> during the tournament i hit
7:53 am
20 or 30 nervous shots. you are not immune to nerves. one thing i have tried to realize over the years is just because i am nervous doesn't mean i'll hit a poor shot. i do not try to reality nervlat and performance together. >> thank you. when we come back, a recap of the morning's earnings reports so far. stick around. "squawk" will be right back. don't go to paris. don't go to la. don't go to tokyo. live there. hey, welcome! come in, come in.
7:54 am
when you airbnb, you have your own home. make your bed. cook. you know, the stuff you normally do. ♪ wherever you go... ♪ don't go there. ♪ live there. ♪ even if it's just for a night. ♪
7:55 am
youto get the help you'refar looking for. that's why at xfinity we're opening up more stores closer to you. where you can use all of our latest products and technology. and find out how to get the most out of your service. so when you get home, all you have to do is enjoy it. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around.
7:56 am
♪ ♪ let's look at stocks to watch this morning. intuitive surgical reported first-quarter profit, $4.42 a share. nine cents above estimates. the company shipped 110 of its robotic surgical systems during the quarter, up from 99 earlier. global payments and video retailer gamestop swapping spots. global payments joins the s&p 500 after the close on friday. gamestop moves to the s&p mid cap 400. s&p points to the pending acquisition of payment systems by global payments and resulting increase in the market company. dish network earned 84 cents a share for the first quarter, well above estimates of 62 cents while revenue was in line. and that came despite a decline of 23,000 subscribers compared
7:57 am
to the year earlier. okay. coming up, we'll get street reaction to the coca cola results, plus, the president touching down in saudi arabia earlier this morning. we'll have a live report from the region. oil sliding this morning after kuwait oil workers going back to work. we'll talk oil's next move and more in a bit. "squawk" returns in just a moment.
7:58 am
7:59 am
8:00 am
happening now, president obama visits saudi arabia. oil prices. iran and repairing relations with riyadh, the agenda, straight ahead. new this morning europe accusing google of breaking anti-trust rules. we'll tell you what it could mean for the tech giant and many others including facebook and amazon. video gone viral. two princes. luke skywalker, chewbacca and a light sabre duel. may the force be with you as the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york. this is "squawk box." ♪ welcome back to "squawk box" here on cnbc, first in business worldwide. i am joe kernen along with rebecca quick and andrew ross
8:01 am
sorkin. we always say this right now. we're less than 90 minutes away. works every day at 8:00, from the opening bell on wall street. futures right now, they were down earlier. now, in fact, the s&p and nasdaq are up. the nasdaq was much weaker than the other averages yesterday. now the dow is down a little. intel might be pressuring it, though it won't down that much for what it said. intel -- i'm still dealing with that being a dow component. >> they beat the -- >> they did. the forecast wasn't great. >> down about 60 cents. >> any other dow components? >> coca cola reported. it's a little weaker. looking like it's down by about a little less than a dollar. 70 cents. >> okay. let's talk a little bit about today's top stories. dow component coca cola did post earnings that were a penny ahead of consensus. the worldwide case number up 2%.
8:02 am
street was looking for it up 2.5%. they talked about earnings and the earnings guidance they gave for the next year is in line with expectations except they're saying it's currency neutral and nobody knows what will happen with the dollar. the stock is down by 1.6%. united continental announcing changes to its board of directors as an agreement with activist firms par capital and altimeter capital. it's adding two directors designated by those firms and add a mutually graeagreeable director in the next six months. eu charged google with abusing android dominance saying the tech giant pushes its own apps. this could lead to large fines. google already facing charges. alphabet shares up 2.3%. $2.36. >> this is kind of what the government did this microsoft, saying all the bundling was too
8:03 am
much. remember? >> internet explorer? >> same story. >> another successful u.s. company. just too darn successful for the euros, right? >> same story. other stocks. intel shares as mentioned earlier under pressure as the chip maker gave lower than expected revenue guidance and cut the full-year profit margin outlook and announcing it would cup up to 12,000 jobs. yahoo cutting expected earnings. most of the attention, focusing on the ongoing sales process for the core business which reportedly sees verizon as the leading contender. printer and imaging solutions company lexmark agreed to be bought. $40.50 per share. about 17% more than yesterday at its close. president obama touching down in saudi arabia earlier this morning. on the agenda today, a bilateral meeting with saudi king salman and saudi arabia is feeling the
8:04 am
burn of these lower oil prices. the kingdom taking out a $10 billion bank loan in its first international debt issuance in 25 years. saudi arabia also confirming it plans to sell a stake in saudi aramco. jackie deangeles joins us with more. such a wide variety of things to be discussed in saudi arabia for the president. >> as the meeting unfolds one of the main issues is the ipo. we want to look at why saudi arabia is doing this and what the size and scope of this deal is. saudi aramco controls the king's oil. widely considered the most valuable company in the world. generations of saudi leaders worked to buy out foreign owners so the kingdom would have complete control of the oil resources. today they're putting a chunk of the company on the auction block. it's expected to be worth -- the world's largest publicly traded
8:05 am
firm with value estimates between $2 billion to $2.5 trillion. the saudis only looking to sell a 5% stake. raising a little more than a hundred billion dollars. it wouldn't include the king's oil reserves. a source familiar with the situation confirming that jpmorgan and michael klein and company tapped to lead the deal. it's thought early 2017 is likely. what does it tell us? saudi gdp expected to shrink another 1.5% this year because of low oil prices. last year the kingdom quietly tapped the debt market, cut its budget and was willing to cut the deal in doha if the iranians would cooperate. the saudis believe they're the lyn linchpin of the area. feeling the burn. >> which burn? the bern? >> feeling the bern -- >> you just just say that. >> the burn of low oil. the burn of $40 oil. >> you can say feeling the kern.
8:06 am
>> you could say that. we are going to stay probably in this range for quite some time. i think what happened in doha sunday is important. the iranians not coming to the table, thumbing their noses at the saudis and saying we don't need to talk about this. we are in such dire straights. we don't have anything to lose. the saudis have everything to lose. they've been cutting the budget and trying to maintain the influence in the middle east. it's tough. if they want to sell saudi aramco, you know things are not great. let's bring in tom petri, the chairman of petri partners and has led teams that have advised u.s. department of energy. thank you for joining us. >> let's talk about saudi aramco. i know this is a portion of the company. one of the huge issues is that it wouldn't include reserves.
8:07 am
investors are having a hard time trying to figure out how to value that. what would you tell them? >> i would agree. there is a real contradiction there. maybe the way you bridge this is that there is a strategy the saudis have to do a lot more refining of their own oil. at the current time they -- they refine a relatively small portion of that but there is a big value-added to be had from the oil production. if you do more of it on an integrated basis. and this -- >> that's not a quick process, though. takes time to build up the refineries, right? >> oh, it will. absolutely. this is going to take quite a bit of time. and that's probably why the percentage they're talking about is fairly small. singl single-digit percentage to be sold. they're talking about listing on the saudi market, which is a thin market. there is a lot of work to be done by the bankers. that's why it's still a year away. i think it's significant that
8:08 am
they've signalled they'll do it a year sooner than they were talking about and they have made decisions about the banking team and so on. so you will a all of that point ahead on this. i think the real definition will come out probably late this year going into next year. >> tom, we have also heard that saudi arabia just took out a big loan and is considering sovereign bonds as a way to raise funds in the meantime. does this tell us they're stiffening the resolve when it comes to not cutting deals and not letting iran maybe get away with things that they might have been able to do in the past in terms of saying who will produce how much? is this their way of saying we're in this for the long haul and want to chase out the producers who have much higher costs? >> i think that's a fair conclusion. but let's remember, a lot of this is the theater of it. 10 billion doesn't close the gap. we're talking -- their numbers would say 100 billion of
8:09 am
deficit. but it does signal, look, if you want to try to outlast us, you're going to find it difficult. >> what do you think just about oil prices? there are people now speculating that maybe we've stabilized somewhat. other people are saying, look, we ran up far too quickly in oil prices and we could test the lows of the year back at $27 a barrel. what do you think given the geopolitical situation? >> i think, first of all, we overshot on the down side when we penetrated $30. so some of that recovery, sharp though it was, was getting back into a more normal adjusted price. i also think we're going to spend the bulk of this year maybe going into early next year actually seeing enough of a decline in north america and china and other non-opec sources where, by this time next year, most of the surplus, if not all, will be eliminated. but we still have to then pull down the inventories. so the view that it will take
8:10 am
this year and some of next year to get us back into a new normal is correct. but i would -- that doesn't rule out the possibility that we could see somewhere in the mid 40s to the low 50s as we close the -- this year. i think that's a reasonable expectation. the new normal that i'm looking for, 65 to 80. i think it's out there probably in 2018, thereabouts. >> thank you for joining us today, tom. >> pleasure to be here. president obama's trip to saudi arabia today comes amid strained relations between washington and riyadh. nbc's ron allen is with the president, and he joins us live. good morning, ron. >> good morning, joe. how are you? >> i'm very well, thank you. and you? >> i'm good. i'm good. yes. the president has just arrived here. he is sitting down for talks with king salman. you're right. it's a very strained time. not the least of which because of some comments that the president has made over recent weeks questioning essentially
8:11 am
the commitment of saudi arabia as an ally on any number of issues. also, in recent days this issue of 9/11 has come up again. some of the 9/11 families are upset with president obama for not backing a bill making its way through the senate that would give them the ability to sue the saudis for damages. they're still deeply suspicious of the role the saudis may have played in 9/11. there is also the issue of the classified information still being withheld and kept secret that's part of the congressional investigation of 9/11. the so-called 28 pages. some of the families also believe that that might contain information that might implicate the saudis. the administration, the obama administration, has said that's a matter for intelligence agencies to decide, whether or not it should be made public or not. that's in the background as well as issues of terrorism. as you know, the united states now feels that has some momentum in the fight against isis. we're probably going to push the saudis to do more, something they have been reluctant to do in the past. also, on the diplomatic front in
8:12 am
syria, the united states and its allies trying to make a push. the saudis somewhat distrustful of what the united states has been doing. they want the united states to do more to remove assad from power. also the nuclear deal. iran and saudi are arch enemies. a lot to discuss. a difficult climate with oil prices dropping and united states not as dependent on saudi oil as it has been in the past. tough issues here for the president to deal with as he sits down for talks. and then, tomorrow there is a bigger meeting with other gulf nations as well where issues of fighting terrorism, regional security and so forth will also be on the agenda. joe. >> it's amazing, ron. we've had the $750 billion threat, and you know, the president very quickly went from someone that maybe the saudis are displeased with to someone who is really kind of in their court and can make a difference
8:13 am
if he vetoes that bill. it's very -- the whole ca buki dance interesting to watch. must be interesting to see the actual body language as all this is happening. >> it is. saudi is a fascinating place. the relationship here is complicated. you're right on that issue of the -- the bill making its way through the senate to possibly allow 9/11 families to sue the saudis in possib saudis and possible retaliation. that's one place the president is perhaps in their corner you might say. there are a whole host of domestic issues here involving saudi arabia. women's fights. freedoms. oppression. corruption, the economy. so on and so forth. the saudis have been somewhat not pleased by some comments the president and other administration officials have made criticizing them on that range of issues as well. you'll be here a long time. a lot to do on what is supposed
8:14 am
to be a farewell tour. >> it boggles the mind what it would mean for the whole region if suddenly that, you know -- anyway. appreciate it. appreciate your reporting, ron. good to see you. coming up when we return, d coca cola up with company reports. case volume a bit below expects. a take from the street in a moment.
8:15 am
the first stock index ♪ (musiwas createdoughout) over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks.
8:16 am
8:17 am
welcome back to "squawk box." coke reporting earnings this morning coming in one cent above estimates of 45 cents per share for the first quarter. revenue slightly above forecast. worldwide case volume up 2%. slightly below estimates. joining us is mark schwartzberg. he is a beverage analyst. good morning. >> good morning. >> you look at this and say the comeback is real? >> i look at it as a little disappointing. the plus 2 is disappointing versus consensus and also sequentially lower. i don't think that the turn-around is not having some traction, but i -- it is a little disappointing. >> what has to happen for it to gain traction? >> i think we need to see what's happening in north america.
8:18 am
that grew revenue at 5%. in north america we need that turn-around to be evident in other markets. we saw disappointing volume in multiple markets around the world besides north america. >> which ones were the -- >> eurasia and africa disappointing. latin america, particularly brazil. saw weakness in other markets also. if you say emerging markets and say coke you saw a disappointing performance. >> why do you think that is? currency fluctuations? >> i think it's largely the environment. pepsi described the environment in multiple markets as being more difficult than anticipated. i think coke is trying to improve trends for their brand coke. >> and you look at how much water is a piece of it. >> water, by and large, is not the mix you want. if it's smart water and you are jennifer aniston --
8:19 am
>> you dedesawni and minute made up. fanta, oddly enough. is that just a marketing thing? >> fanta is a more popular flavor in multiple markets outside the u.s. including emerging markets including germany. >> orange? grape? >> grape fanta. >> orange fanta on "the walking dead." >> that's right. they found some of the cans. that's right. >> sprite still doing very well. >> sprite. monster two is in their portfolio. they don't own it but it's doing well. in general the stills business is doing well. carbon business was flat globally. >> flat with the carbonation. >> if you think about pepsi relative to coke now. which do you want to own? give me the run -- >> very popular question. i am sticking with coke. i would look at this as an opportunity to add to a position. remember, too, we have re-fran
8:20 am
dhi channizing. a few years from now the company starts thinking about what they want to do beyond beer. >> that is the sort of -- it's not an overhanging. may be a great thing. everybody thinks this will get taken over. >> i would call it possible, not probable. i say it for a number of reasons starting with the financial possibility. it can be done if you look at a.b.i. three years from now. the merits. what's likely to happen is anheuser-busch will become a major coke bottler in africa if coke does not invoke change of control rights when abi closes on the transaction. >> you don't think they will? >> i don't think they will. they're going out of their way to say that at the end of '17 3% of the bottling will be in the hands of those we own. it's hard to see whom else would be the bottler besides coke if they're not allowing avi to do it themselves. >> is there a complication in
8:21 am
that anheuser-busch is the only buyer? >> it's a large asset. it's hard to see it being competitive. >> right. if it can't be competitive, how much premium should be built into the stock for what you're talking about? >> there is a time valuation. i do think coke's turn-around, you have to build that in. to believe you'll make a handsome return, you have to believe the turn-around is working as well. >> thank you for coming in. >> thank you. when we return, video gone viral. princess william and harry visit the set of the next "star wars" film. social media along for the ride. interesting things happen from there. we'll show you when we come back. wrely on the us postal service? because when they ship with us,
8:22 am
their business becomes our business. that's why we make more e-commerce deliveries to homes than anyone else in the country. here, there, everywhere. united states postal service priority: you
8:23 am
8:24 am
welcome back to "squawk box." cuban revolutionary leader fidel castro making a rare appearance at the closing ceremonies of the twice in decade parties communist. the 89-year-old leader said farewell to cuba's communist party telling leaders he'd soon die to fulfill the position. formally stepped down in 2008 after suffering gastro -- i can never say that. >> gastrointestinal ailments. >> it broke weird because it was
8:25 am
too long. more than 13 letters, it doesn't fit in the prompter. speaking of cuba, singer-song writer dave matthews is one of several well-known american artists visiting cuba as part of the president's committee on arts and humanities. the delegation is composed of 20 members including also smokey robinson and usher. may the force be with the royals. prince william and harry visiting the set of "star wars" episode 8. the royal brothers duelled with light sabres and chatted it up with luke skywalker and harry got a hug from chewbacca. >> harry is eligible. >> bachelor, you mean? >> yes. >> yes. very. >> right? you feel it too? you feeling the -- >> you see it in the tabloids when you read through. people speculating about who he is seeing when he's flying around. >> he's flying in helicopters. >> who he's flying to see in different places. served in the military. >> yeah. >> he was partying somewhere -- i think he's --
8:26 am
>> i think he straightened out now, a little. >> all right. >> a little. speaking of the royals, prince goreorge debuting on the royal stamp. the 2-year-old heir to the british throne featured on a batch of stamps released in honor of the queen. coming up why donald trump says he would replace janet yellen at the fed if elected president. first, as we head to break, check out the price of oil this morning. down 74 cents at $40.34. i give this another couple of weeks with the oil situation. until we know it will be above 40. stay tuned. you're watching "squawk box" on cnbc, first in business worldwide. what are you doing right now? making a cake! ayla reminds me of like a master chef and
8:27 am
emiana reminds me of like a monster chef. uh oh. i don't see cake, i just see mess. it's like awful. it feels like i am not actually cleaning it up what's that make mommy do? (doorbell) what's that? swiffer wetjet. so much stuff coming up. this is amazing woah. wow. now i feel more like making a mess is part of growing up. stop cleaning. start swiffering.
8:28 am
8:29 am
♪ ♪ ♪ ♪ get your motor running welcome back to "squawk box." approaching 8:30. here is what's making headlines this hour. national association of realtors is set to issue march existing homes sales at 10:00 eastern.
8:30 am
looking for an increase to 5.3 million units. donald trump and hillary clinton won their respective new york state primaries breaking a string of victories by their biggest rivals. i guess trump might not really think some of those were actual -- i don't know if he -- >> he beat number two by 35 points. kasich. >> i don't know if he would call those victories in colorado and wyomi wyoming. >> he has protested strongly. check out shares of vm, the maker of virtualization software reported quarterly profit two cents above estimates. issuing a strong current quarter forecast and announced a $1.2 billion stock buyback. in a new interview with for tune magazine. donald trump praising the fed's low interest policy saying low rates are, quote, the best thing going and the fed raised rates now it could be disastrous. he said fed chair janet yellen
8:31 am
has done a serviceable job. he didn't want to comment on reappointment but he said he'd want to put other people in. >> her term goes through february of 2018. >> he reiterated his support for reducing the fed's power. sort of talking both ways here, allowing congress to audit the central bank's decision-making, which makes some people nervous. joining us right now to talk more about what's been happening in politics and what it means for the economy is douglas holts aiken, president of the american action forum. christian weller, a senior fellow at the center for american progress. gentlemen, thank you both for being here. doug, let's talk through a little bit about what you think about the candidates. who do you think has the best plan in terms of the country's economy? >> well, i don't think you see much in the way of comprehensive growth strategies out there. on the democratic side there is no vision for growth. it's essentially policies for e redistribution and entitlement
8:32 am
expansion. case vp cruz has a fairly standard set of proposals on regulatory relief. emphasis on small business and a big tax cut. but no real plan to balance the budget on the spending side. mr. trump is flatly anti-growth. big tariffs, proposals for tax cuts that don't add up either. i am not overwhelmed by the quality of the economic policy-making that we're seeing on either side of the race. >> i disagree a little bit. >> christian. >> i think what you see on the democratic side, especially secretary clinton, has couched a lot of her policies in terms of economic growth. >> yeah, but they don't create growth. you can say it. it doesn't do it. >> every candidate is saying it. >> let's look at what some of the specifics. greater infrastructure investments, for instance. they are a part of both the clinton and sanders' platforms.
8:33 am
>> trump has talked about it too. >> greater access to college education. we think education matters for economic growth. >> how do you pay for it? how do you possibly pay for free college and balance the budget? >> both have laid out proposals how to pay for it. >> do you see a difference between clinton and sanders? >> there are size differences. >> massive size differences. $15 trillion. >> you have to acknowledge that they are part of the platforms. the other part you have to acknowledge, care-giving credits, child care credits and other things making it easier for people to stay in the labor force are growth enhancing. they don't cost that much. >> you can't simply say this is not growth. >> christian, you are a serious guy. and a well-trained analyst. we have a long-term growth potential of 2%. that's what cbo pegs it at. how much will any of that change 2%? >> well, i mean, i'll take any
8:34 am
little bump above 2%. >> right. there is no answer that. be honest about it. >> look, i -- look, some of the estimates putting the ultimate growth potential, for instance, under sanders up to 5%. but we are below potential. there is a lot of catching up to do. so stronger infrastructure investments, easier access to college, and allowing people to stay in the labor market through child care credits and other things do enhance the growth potential. >> doug. >> we're under 5% unemployment. we can't be that far below potential. so you can't couch this in terms of stimulus or some sort of recession recovery. the recovery started in june of 2009. >> we're in terms of under -- we have underemployment. >> if we're serious about this, it has to be about things that raise the long-term sustained potential for growth. saving, investment, you know, technology, innovation, things that augment productivity. >> right. >> that's not -- that's not
8:35 am
there. everything that -- >> i agree. on the innovation side, we haven't -- we haven't seen much in the details. right. i agree. we need to see more details on the quality of the infrastructure investment and especially on innovation. it would be nice to see sort of an innovation and technology initiative from either of the candidates. let's look at this. on the democratic side at least we're talking details and specifics. on the republican side we're getting tens of trillions of dollars of tax cuts. skewed heavily towards the top 1%. we've tried that and we failed on that. >> christian, let's talk about -- do numbers matter? when you're basically putting hillary clinton and bernie sanders in the same camp, do numbers matter? >> they do matter. >> is there a point of taxation that's too high? >> they do matter. i think, that there is clearly -- in terms of the total size of both the spending and the taxes, there are qualitative differences between sanders and
8:36 am
clinton. let's say in terms of directional. it's comprehensive and it's directionally in the right direction. it doesn't blow massive holes in the deficit and invests in things that we agree do lead to faster growth. on the republican side we have no plan on infrastructure. we have massive tariffs on trade. and we have irresponsible tax cuts on the wealthiest americans who really don't need extra money. >> talhe bottom line is this. whoever is the next president will inherent from president obama a broken budget that's going to create $7 trillion in additional deficits, and by the time we get to the end of the second term, whoever is elected, we'll be entering a debt spiral. there is no plan on the democratic side acknowledging the fiscal reality. it is spend and create new entitlement programs when we can't pay for the ones we have. that's irresponsible. >> clinton's proposal actually -- her proposals would
8:37 am
shrink the deficit somewhat. >> they would not. >> we're talking $10 trillion to -- >> you're talking a $10 billion fund for a coal town. every time you turn around there is a new spending proposal. >> i am going with what we know in terms of the overall proposals. we're talking the overall evaluation of the overall proposals. >> $5 trillion in new spending. >> there is the other side -- >> there is no paying for it. >> doug, historically -- >> we've done nothing. trump is saying like he is going to cut taxes by something like $11 trillion or $12 trillion over the next decade. >> asked and answered. he said he'll cut taxes and get rid of the debt. it won't add up. i agree. >> i thank you both for your time. doug and christian, obviously everybody's definition of growth and how we improve things is widely disparate, which is why you end up with this. >> historically we've seen big projects like that, doug, where everyone is free but no one has
8:38 am
anything. you can take your pick of countries around the world. everything is free but no one has access to everything. great system. coming up, "squawk" getting real with the real house wives of new york. two of the original cast members join us next. first, as we head to break. take a quick look at u.s. equity futures. ♪ actions. they speak louder. we like that. not just because we're doers. because at sheraton, we're changing. big things. small things. spur of the moment things. ♪
8:39 am
changes you'll notice. wherever you are in the world.
8:40 am
8:41 am
. ♪ now new york ♪ concrete jungles are made of, there's nothing you can't do ♪ ♪ you're in new york that was a clip -- did we show a clip from bravo's the real house wives series. the franchise bringing many of the members careers. we're joined by two of the original cast members of the real house wives of new york which recently started its eighth season. countess luanne de leseps. >> had he when they approached me i had an existing business for 20 years. i really didn't want to do the show but they pursued me. but i had just launched a
8:42 am
website for my ex-husband and i said, we can showcase it. it will be a good thing. from doing the show i developed skin care. just got my creative juices going. got onto hsn. first house wife to be on hsn. >> i always have a problem with my dvr. i hit it up and i go 98% and i haven't recorded anything and i hit it and it's real house wives -- wie daughtmy daughter - not just you guys. >> the whole franchise. dallas is pretty good too. >> beverly hills. i think we went to a restaurant in beverly hills. >> vander pump. >> are you not trying to stir something up here? amy will do something here. >> he's learning from andy. >> you're familiar with all the -- >> i'm very familiar. but go ahead. >> what i can't believe is -- okay. i wouldn't know -- i don't think i could act normally with -- here i do. at home i don't think i could act normally. >> you don't act normally.
8:43 am
>> you guys go through divorces. >> we both -- we both have been married for a long time. >> doesn't the camera sort of get in the way? >> number one, when we film, we have a schedule to film. they'll say, ramona, we're filming at this restaurant. meet with luanne. or i'll meet with dorinda and tell her how i feel about getting divorced. >> where is dorinda? >> what happened to her? i don't know. >> she is in the berkshires. >> we go through a lot of things on the show. we both have been married for a long time. >> 23 years. you are at 10? >> i never talked about my divorce on the show. it won't my thing. very protective of my family. >> i talk about everything. >> even though i did get divorced, it wasn't on the show. that i played -- i really didn't play that on the show. it was more about what i was doing. sure, i went through a divorce, but it wasn't on the show. >> i look at it as a reality. the viewers -- 50% of marriages end in divorce.
8:44 am
i wanted to show women what i was feeling. people say i look better than ever. in a good place. am i sad my marriage is over? absolutely. but i'm moving forward. >> divorce suits her. she has never been better. >> you talk about unscripted television as being what they call scripted-unscripted. tell us how it actually works. you know you're going to the restaurant to talk to each other. you know there is a fight coming? you don't? >> it's totally unscripted. >> it's not scripted. it's an edited produced show but it's not scripted. when we go into scene it's what we have on our minds, it's what we want to say. >> do you think about it ahead of time? >> you always think about what you're going to say. you always think about, you know -- you kind of feel what's coming or can -- >> john and dorinda. i knew that we already had a conversation. give you a concrete example. i had lunch with bethenny.
8:45 am
she said i think dorinda is trying to sell us on john and i don't like it. she said she was going to bring it up the next time we saw her. i said i have been hearing things about john. should i talk about it? of course i just spilled it out. it started a big fight. >> we do a lot of charity work on the show as well, which a lot of people don't talk about. you know, as well as, you know, the drama that goes on because there is big personalities on the show. so there is -- there's great stuff on the show. there is drama. you know -- >> we're real women with real problems. >> like in everybody's lives. i've created an apparel line on the show, the countess collection, i have a live show coming up may 23rd. now i'm going into home and bedding and bath. there are a lot of great things to be done. of course, it's a great platform for business. obviously we're on each week and it's a showcase for our businesses. >> how did you figure out which businesses to go into? >> organic things.
8:46 am
she loves dresses. i love jewelry. >> countess said i love the way you dress. show us how you do it. i started with apparel and moved into jewelry because i was acce accessorizing my own apparel line on e-vine. >> it's organic. >> what about bethenny these days? >> i love her. we get along great. >> she is an aggressive business woman. >> right. >> she has an aggressive personality. >> an aggressive businesswoman. you have to give her credit. when she started the show she had nothing. she had zero. she had no husband, no children. no real big business. >> i have a hundred -- i want -- >> she has come a long way. you have to give her credit. >> can this be a platform for business was my question. then i thought, gee, i wonder if it can be a platform for politics? i think we know the answer with maybe reality tv. look what donald trump is -- he might be president. >> absolutely. it's a platform for politics.
8:47 am
>> for business. it works very well. >> at the same time, politics dates us. so our show -- you see, if you start to talk politics. that's why we don't do a lot of holidays and things on the show. it gives you a place and time. >> does bravo tell you there are certain things you can't promote on the show? >> it's organic. it's who we are. >> is it gluten free? >> bethenny had gluten-free products. >> it's not scripted. fiction. >> neither are we. >> it's bigger than fiction. >> we have to go. sorkin, down boy, god almighty. >> i don't want a skinny girl. i want a fat guy cocktail. thank you, ladies. >> thank you for having us. >> i would say you have to find a count, man. >> what's going on with the count? >> she found a king. >> you won't be a countess anymore, right? >> i won't but people will always think of me as the countess. that's why -- >> people want to know.
8:48 am
>> super excited. >> let me -- >> you going to make some news? tell us when the wedding is. >> you're all invited. >> listen, would you let me answer a question, for god's sake. >> stop the music, people. keep going. >> the countess thing. i will lose my title, which is fine by me. people know me as the countess. that's why i've done my brand, countess, a styled for living concept. it's part of who i am. it's a life-style. >> and once you get the title you always have it. >> i am getting married new year's eve. you asked the question. there you go. >> you guys play the markets, either of you? >> yes. >> you do? >> that's a whole other segment.
8:49 am
8:50 am
8:51 am
it's one of the most expensive races in the world, the gumball 3000 is a week-long rally where more than 200 rich guys take their supercars on a transcontinental journey. that must be hard across the ocean. robert frank joins us now with more. >> they have private planes for that, joe. for both the cars and the people. >> and the car goes on to the plane. >> the car goes on to the plane. $200 million worth of cars driving from scandinavia to las vegas. it's invitation-only.
8:52 am
it's around-the-clock party with models, rock stars, deejays and the super rich. our cameras were the only ones allowed this year to ride shotgun. this year gumballers include formula 1 superstar lewis hamilton, rocker tommy lee and famed deejay dead mouse. they're all friends with the guy in the black lamborghini, gumball founder maximillian cooper. he spends millions of dollars to set up one of a kind v.i.p. experiences like this stopover in sweden to go drag racing on a private airstrip. plus, this all-night rave in denmark that features glow in the dark dom. after three days in scandinavia, the hungover gumballers and their wheels are loaded onto a ferry and shipped to germany. from there they drive to a
8:53 am
soccer stadium in amsterdam where car lovers can worship their incredible rides. yeah. the cars then fly private along with the people to the u.s. where the party continues in the sky. we're going to have a lot more on this insane trip tonight. that's the private jet. there's a lot of nudity in this segment, just be advised. that's why it's tonight at 10:30 on "secret lives of the super rich". >> this is like the cannon ball run but didn't seem like they were trying to undercut each other. >> it's not really a race. it's a rally. although the cars go very fast. there's not a lot of competition except for how much to drink and how much fun to have. >> all right. robert, thank you. >> thank you guys. let's get down to the new york stock exchange, jim cramer joins us now. jim, what did you think of coca-cola earnings today? >> i thought they were fine. coca-cola is one of those companies that sells a lot of cases. sold more cases than it did last year and that's enough to rest it laurels on.
8:54 am
i do think remember pepsico did beat it by 1%, which is a new dynamic. pepsico's got a little more momentum than coca-cola. i know these stocks have fallingen out of favor for a few days because we've decided to go deep cyclical whether it be freeport or iron ore company or oil company, it was fine. no one's going to get hurt owning coca-cola. and this quarter is another quarter where you won't get hurt. coke zero up 4%. i thought that was notable. >> jim, just in terms of what we've been watching, we've been talking a lot about saudi arabia today not only what it means for geopolitics but the oil market. tensions like that not great. again, we were also looking at that kuwaiti oil strike being resolved. and you're looking at higher supplies here in the united states. >> that situation in kuwaiti takes off, but i think the untold story is china is going from 6.7 million a day all the way up to 8 million.
8:55 am
looks like they're building strategic petroleum reserve. the natural gas market was phony tight. that had to do with the fact there was a chicago outage and texas offline because of the weather. don't get excited about natural gas. that's a one-day phenomenon. >> okay, see you in a couple minutes. coming up, we have a comedian's take on the lgbt situation. we've. the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital, be untraditional, and reimagine what the bank of the future can be. our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. we're creating new platforms across channels so customers can effortlessly invest, borrow,
8:56 am
lend, transact-wherever-whenever they choose. and we're digitizing the way banks run, driving efficiencies and delivering new value for their customers in return. digital works for banking and financial services. lets talk about how digital works for your business. ♪ go to ziprecruiter.com and post your job? to over 100 of the web's leading job boards with a single click, then simply select the best candidates
8:57 am
from one easy-to-review list. and now you can use ziprecruiter for free. go to ziprecruiter.com/offer2
8:58 am
welcome back to "squawk box" this morning. tracy morgan canceling his tour date in mississippi. part of his comeback tour following that fatal car crash in 2014. cancellation comes in response to the religious accommodations act which grants businesses the right to refuse services to lgbt customers across the state. so there he is taking a stand. and squawk sports news, the hits keep on coming for johnny manziel. his contract with nike has now been terminated and dropped by a second agent after failing to meet an ultimatum to seek treatment for unspecified substance abuse issues. it's the second time manziel's been dumped by an agent this year. and sources say nike severed ties some time after the nfl season ended. he released a statement saying
8:59 am
he hopes to take care of the issues facing him so he can focus on what he has to do in order to play this upcoming season. you read the newspapers, i've seen in the post and other places he's added coachella. it was weird. >> not something that makes you look like you're taking things seriously. >> there's a lot going on. it's hearsay and i guess we don't want to engage in hearsay but seems he has personal issues that both sponsors, agents and teams are going to need to have some type of at least the will to deal with some of them before they take another chance on him, i think. let's tell you about a couple stocks to watch this morning. intel shares under some pressure after the chip maker gave lower than expected revenue guidance and cut full year profit margin outlook. the company also announcing it would cut up to 12,000 jobs. that stock is now down by 1.8%. yahoo reporting better than expected earnings with revenue in line, but of course most of the attention from investors is focusing on that ongoing sale process for yahoo's core
9:00 am
business, the internet business, which reportedly sees verizon as the leading contender. and that stock is up by about 1.7%. and before we go, a quick check on the markets. take a quick look at the stock market as indicated off just fractionally. and one more time, oil. they had it in there. they took it out. >> we got to go. >> oil's down. >> fun real housewives "squawk box" edition tomorrow morning. >> join us tomorrow. "squawk on the street" is next. good wednesday morning. welcome to "squawk on the street." i'm carl quintanilla, jon fortt also joining us this morning. this hour cnbc exclusive be brian krzanich of intel. get to that in

68 Views

info Stream Only

Uploaded by TV Archive on