cuts for a.i. it is thursday, january 18th, 2024 and "squawk box" begins right now good morning welcome to "squawk box" here on cnbc we are live from the world economic forum in davos, switzerland. i'm becky quick with joe kernen and andrew ross sorkin our third day of coverage here at the economic forum. our final day of coverage. markets are following what is coming from davos, but getting fed speak and data this morning. bostic is expected to speak at 7:30 a.m. eastern time on the state of the economy we will have weekly jobless claims coming in at 8:30 a.m ahead of that, you have the dow

futures in positive territory along with the s&p and nasdaq. dow support 40 points. s&p is indicated up 9. the nasdaq up close to 80 points this is after the dow posted the third negative session in a row. down 94 points on wednesday. that is on pace for the worst weekly performance since october of last year let's check on treasury yields ahead of the fed speak. you will see the ten-year yield at 4.08%. we should talk about another hot spot on the global stage pak pakistan carried out air strikes after the strike on tuesday that targeted iranian ininsurgents. neither country wants the situation to escalate, but worry ice that it could occur.

the u.s. military carrying out strikes on the irania iranian-backed houthis targets in yemen a statement on x saying that the missiles presented a threat to commercial and military ship notiships in the red sea. some have slowed down trade avoiding the red sea you show the price of crude. you made a prediction and you might have had a higher number in mind. $73. we will pick up more on the topic with s&p global dan yergin in a few minutes the bells are nice every morning. is that going out? >> i don't know. >> to do that for the opening of "squawk box" every day

>> kind of them to orchestrate that >> it is noon here local time. the noon bells >> it is not coincidence that's a lot more than 12 rings. >> it is a beautiful bell. church bell. >> it is very european. >> the hills are alive in corporate news, sheryl sandberg is leaving the meta board. she is leaving with a heart filled with gratitude. she stepped down as coo after a volatile time with the company which included controversy around the 2016 presidential election and the covid pandemic in 2020. sandberg has been a board member since 2012 she was seen as the adult to run the company for wall street to get the ground running after

facebook launched. this was the next situation. alphabet's ceo sundar picha warns more cut s are coming ambitions will force the company to make tough choices for some teams which means eliminating he roles and removing layers. the company is shifting to artificial intelligence and pichai saying that the company will ultimately need to spend less money and move that money toward better investment alphabet shares were a bright spot in 2023 more developments in the apple watch saga i smile. all about the watch and blood oxygen sensing features. the company will remove the blood oxygen sensing feature from the series 9 and aultra 2

watches. if you want to be all things health, it makes a difference. i'm not sure i would check >> a new patent fight is about to emerge? the other news you all know i wear my oura ring i was prepared it is stuck. the oura ring has 100 patents in that ring. samsung announced they are h manufacturing a ring if you saw the statement oura put out, they said we have every patent you could imagine on this ring i think the implication is nobody has seen the samsung ring samsung announced the ring as

part of the health program they want to do blood oxygen and everything else. >> can you say that nobody else measures a ring? >> i don't know. >> does it have a patent >> if you look inside here, there are hundreds of sensors. i assume you try to get a broad patent >> the fights begin. >> the question is is samsung or whoever else makes the watch or ring is able to come up with a unique way to get the same thing? >> what is your most useful metric from the oura ring? >> for me, i like to look at hrv.ious variability my hrv is very low you want a high hrv. >> low means you are stressed? >> it is the para-sympathetic.

>> rem >> for me, deep sleep is important. i look at that a lot, too. my heart rate is higher because we're in the mountains with the elevation. >> it gives you an overall score. what does the overall score tell you? >> how happy or not i will be all day or grumpy. >> i rest my case. >> i know where you aryou are g with it. coming up on "squawk box," we will find out what it means for the energy markets with dan yergin he will sit with us. later this hour, you have to see this pal pal palantir ceo's alex karp

touching on so many issues we will bring you that interview and more when "squawk" returns there are some things that work better together. like your workplace benefits and retirement savings. voya provides tools that help you make the right investment and benefit choices. so you can reach today's financial goals. and look forward to a more confident future. voya, well planned, well invested, well protected.

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♪ ♪ welcome back to "squawk box" live from davos, switzerland the red sea diversions are impacts markets. experts are predicting a

prolonged crisis we talk about all this with dan yergin good morning to you. >> good morning. >> nice to see you on day three. our final day here what do you hear and what do you think about as you have been discussing this issue with so many political leaders here? >> it is a disruption. supply has doubled with the russian oil. russian oil going to asia and middle east oil going to europe. the numbers are down some people are not shipping through the red sea, but a lot more are not shipping oil through the red sea. >> what do you think the implications are for the price today and how quickly or not do you think this is resolved >> so far, what is striking, it has not had impact on the price. there are two reasons for it one, the build up of supply from the united states. that is a geopolitical re-balancing the market is oversupplied right now. you would expect a geopolitical

premium in the price >> oversflupplied with the resu? >> canada and the united states have added new supply to the market the u.s. is, by far, the largest oil producer today with the price and energy >> to the extent that everybody is trying to keep this from escalating, do you think this can remain this way? >> i think it is a high degree of contingency it is a proxy war going on the houthis have a lot they can keep shooting. we see what is happening in syria and iraq as well the risks premium in the oil price. >> is something missing? >> i think the supply and psychology of the oil market has changed because the u.s. is the world's largest oil producer

now. >> dan, would you ever venture a guess for peak oil within 100 years? could you narrow heit down? >> somewhere within 100 years, absolutely this is a game we see oil demand continuing to increase it increased 2 million barrels a day last year. >> could it be another 100 years? >> i think probably the most reasonable position right now is some time in the early mid-2030s we see peak demand. >> at a point where it will be declining. >> we used all of the oil up >> it will be demand that will impact before that >> here in davos, we talk about climate change and evs and electrification and solar and the like

we talked about the pushback politically in the united states and other places are you seeing the shift and the issue with consumer demand for evs which doesn't seem to be there? is that a function of price or products not good enough or infrastructure >> i think in europe, it is 26% of new cars. u.s. is about 10%. i think it is interesting. i have been hearing the pollicization of evs red state, blue state. >> the u.s. specific >> i think the other issue that is there is the amount of minerals needed. the other thing on the agenda here which is a waking up on the energy transition which means the electric car has two and a half times more copper than the traditional car. >> the u.s. is the largest market in the world for cars maybe china is bigger. >> it is bigger.

>> how quickly will it get electrified? >> it will be slower and bumpy we don't have a charging infrastructure for t. yit you pushed down the brakes on evs. there is a pushback there. >> that is not happening from the chinese automakers >> the incentives are there and china is now the world's largest automobile exporter. >> do you have better infrastructure systems at least when i think about it, one reason i get concerned is i go places where there are not a lot of charging systemsystems. >> it is condensed in europe in china, it is driven from the top. >> we have talked about this many times this is in print the world economic forum in

davos is the world's greatest machine for conventional wisdom and the top-line conventional wisdom is wrong. we say that every year what are the three biggest dei, esg and climate change. what is right? >> are you asking me >> i'm not asking anybody. i'm not really asking anyone >> a.i a.i. a.i. >> okay. next year, we will say a.i. say dud? >> probably. it probably has legs. >> dan yergin, thank you. >> more legs and crypto. >> thank you >> thank you coming up, a.i. can be used for crypto some of the messages you may have missed from the world economic forum, including a fiery speech from the argentinean president putting the world on notice. "squawk x"s mi rht

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today, i'm here to tell you that the western world is in danger it is in danger because those who are supposed to depend the values of the west, are co-oped of the vision that leads to socialism and thereby poverty. >> that was the argentinean president speaking earlier today. joining us now is semafor's co-founder ben smith you need to decide what is happening here that you need to lead with at semafor >> i think one of the things is the people who love this place the most is the populous like milei who can use it as a back drop to denounce

they are having the fun. the right-wing journalists hanging outside. no one -- the rebel guys >> i like the rebel guys >> kids in a candy store >> they have a scene with a polite issue with a woman asking them to move from the parking spot we will not be counted like the globalist elite. >> it is good to be the foibles here >> okay. beyond that, what will you take away from the number on this davos or call it 2024? what do you take away? >> to me, the big story is an attempt to walk away from the progressive political posture. >> here? >> that a lot of companies have. you hear less about sustainability and less about dei. >> it is all going under >> it is part of the reason they

are happy to talk about a.i. it is politically neutral. they are concerned about the backlash. >> that's interesting. we wasted five years in davos. >> can i ask this question the political backlash is real in the united states we talked about dan yergin about the red states and blue states with the evs you go to europe and china and there is no political debate whether to buy an ev or not buy an ev or which side of the aisle. >> you think esg is popular in china? anti-esg leaders of the world. >> sort of and sort of not >> they have plenty of government >> the u.s. is polarized in. >> i don't want tos disappear before i get out of here they are the anti-esg? >> they are pushing to dominate the ev market. they are not worried about that.

they are pushing europe. >> that makes dominating the ev market for capitalistic reasons is an environmental attribute? >> yeah. >> what else >> the other thing you see here is what a great business the world economic forum is. that is the thing, we in the media business, can marvel and put on events with the event pushing on $500 million a year for companies and they sell the badges at various levels it is the world's greatest trade show everybody has to be here >> honestly, if it you talk to the ceos here and the business leaders, they are here not because what is going on with the forums a lot don't go to a single one of these, but their customers are here sdplch. >> everyone is here because everyone else is here. it is a target rich environment.

>> you see them on the show all week. >> i looked at your news did you write every day? >> lots of things. >> what is your contrarian take? we will go back and say it was wrong. is a.i. going to be a big dud? >> that's a hard one to say. >> what is the thing that you look back at 2024 davos? >> it is a famous thing to sell the davos consensus. the most iconic one is to be here in january of 2020 and no talk of covid. in 2016, it was a 96-page risk report that did not include trump or brexit. this is item of faith that donald trump is elected which is great news for joe biden i think that is everyone who seems to believe it. >> are you out of your american

mind to consider that with the sensibility in europe? china, if you build a new coal plant every day to power the evs, you are environmentally friendly >> i'm not a spokesman here. >> you got plenty of coal to power evs. thank you, ben >> good to see you when we come back, some big goals in big pharma. sanofi's paul hudson will layout his funds and using a.i. for drug discoveries we have really interesting things thecay n do with that when "squawk box" comes right back you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com you know when you have those moments? that time to reflect.

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welcome back sanofi has a goal of becoming an immunology power house for more on the plans and other assets in the pipeline and the c company's five-year plan is the

ceo to discuss it with hudson. there was a deep dive to spend more money on research and development to grow these home grown drugs. there was skepticism on the street at the time the stock has rebounded sharmpl. what is it that you think the street is now seeing my guess is they are hearing more about your message. what are you telling investors >> we had a great opportunity. we shared publicly the pipeline. we spent a day on the 12 blockbusters that are in flight. we increased a number of phase three studies by 50% we have, perhaps, the world's best immunology pipeline people started to put it together the value of the pipeline will fall fivefold since the end of

2019 we are getting a bit of reward for people understanding it. >> part of the criticism that came out was you had not done this with home grown drugs in the past which had been partnerships what have you said to investors to say we see what is here. >> we have been successful at partnerships, but the same time, we are experts in immunology we know what we are doing. we know the pathways and the benefits we want to do things which have never been done before we understand the value to patients and the value as shareholders >> the davos here this year, a.i. is the buzz word. it is everywhere we go you said this is the best davos ever because you are involved with using a.i. for drug discovery. i'm amazed of the things you think you can do with deciding where you do phase three trials

based on a.i how does it work >> it is the great disruption. such an opportunity and earthquake discovery with the golden generation of science born out of a.i. we have been on this journey for three or four years. this is not just a bunch of pilots in research and development, we have biology with a.i. drug targets >> what does that mean >> there are things we have not been able to design to grip on to the receptor. we can model that differently. >> you might have called it a.i. the year before. >> it is where it started. >> now more refined. you have been doing this drug development for a couple of years? >> we have been one of the first. we have over 11,000 people in the company using a.i. on a daily basis. large language models give us a

bigger opportunity in my pocket, i have the equal of 60,000 people doing analysis on 14 million spreadsheets every day real-time. that is the scale of the opportunity. >> say that again. 60,000 people? >> 14 million spreadsheets with 130 terabytes of data without a human being involved that is how quickly things are moving imagine a year from now. we are becoming an a.i.-enabled app. >> that is where the fear comes from the technology ten years from now. >> i'm old enough to remember when the internet came out you have to be responsible you have to recognize the opportunity. >> no doubt. years ago, people talked about this singularity machine learning is a billion times the sum of all human knowledge. we cannot predict that we have no idea what is on the other side of that >> i think we see enough to know

that we can transform patients' lives. we have an incredible pipeline. >> until they pull the plug on all of us, paul sdp. >> we have seen "the terminator" movies and we understand that. >> that's the best case scenario >> you get the heads of state and leaders with a.i. and policy decision makers on health care sanofi is well placed. we launched three medicines. rsv. we launched this year. we showed we can build a pipeline and use a.i we have positioned ourselves well that is the value that people are seeing. >> paul, i want to thank you very much for joining us today a pleasure to see you again. really good to catch up again. >> thank you >> thank you coming up, we still have a big lineup ahead i hope so. we have two and a half more hours. morgan stanley's ted pick and actor will.i.am and former house

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coming up, palantir's ceo alex karp calling out corporate leaders in davos for not talking a tougher stance on anti-semitism. we will veha that when "squawk box" rolls on from the world economic forum this morning. withush of a button, constant contact's ai tools help you know what to say, even when you don't. hi! constant contact. helping the small stand tall. [♪♪] your skin is ever-changing, take care of it with gold bond's healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond.

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welcome back to "squawk box. yesterday here in davos, i spoke to palantir's ceo alex karp and asked about his recent trip to israel >> the main reason i went is because corporate leaders who are running companies need to stop parroting things we don't

believe and being silent whenit is con tro inve trotroversial with one of the worst terror attacks of sexual barberism we have seen in 100 years it is up to us to speak loudly and private, but show what we mean in public core to defending the west for me is not just me going to israel i'm well known there our products are used this i'm proud of that. bringing the board to say you can debate about israel. the people who are attacking it are calling into question the very existence of the thoroughly democratic western country

defending our rights we cannot just speak loudly and private. one of the key issues you find here is people want to talk about building trust no one can trust the elite if everything you are saying is a half truth at best >> you ran a full page ad in "the new york times" after the tragedy in israel. you were the only company do anything like that what was the reaction to that from your fellow ceos? >> look, there are a lot of people who are like you are beep beep crazy you will get in a lot of trouble. people will call up and yell at you. my reaction to them was is never again mean i never take the risk of my own career it was always hard in history to stand up against discrimination.

brutal acts and sexual violence. we are at the point where you have to stand up you know, the interesting thing is in private, a lot of people agree with me. their position is you can't say it in public because you will offend someone this is wrong. you can no longer live in a world where you are not saying something that will offend if you are going to defend something, you have to defend it >> what is your view about companies speaking out about lots of other social issues that you think they don't believe >> the core reasons why people who are basically decent and wonderful people in america have basically no trust in theelite everyone senses they spoken out on things they don't believe in and they set a precedent the precedent they set is i'm going to speak out about moral causes okay, now you have a crucial moral cause. you can be against what i'm

saying you can be against standing with israel you cannot say you don't have an opinion. you have an opinion. you have fallen on your head there are people in corporate america who say i never have an opinion. my opinion is the shareholders i'm sympathetic with them. if you spent the last five years lecturing about all sorts of things that no one believes you believe in private, you can't just wake up the next day and say i can't speak about this thing i believe or say i have no opinion. it is crazy ridiculous and undermines the fabric of democracy because no one believes it. >> one of the conversations in davos is one we have not seen about what is really happening on the ground in israel. the conversation about anti-semitism and what is happening in institutions all over the world it is not here yet it seems limited. >> davos has an important function i live on a different planet

the planet i live in, climate is important, fighting bigotry of all kind is important the most important issue of our time is war and peace. the metaphor for that is what i going on in israel any prejudice is the canary in the coal mine. you are not providing real fear of growth population you are not explaining it and you just go and blame the jews any enterprise that is about making the world a better place that doesn't deal with these issues is basically saying i'm not engaging in the problem. this is not just a problem here, but a problem with all sorts of institutions with higher education to fake discussions in the corporate america and international conferences. i don't know why it falls on me to say the obvious this is obviously just showing

you are not talking about the real problem. >> can you speak to your recruiting efforts and how you are changing them in where you plan to recruit people from and how you think about what used to be the most prestigious groups in america >> palantir tests everyone you went to harvard, we test them community college? we test you. in the '50s in america, a yale alum, and you got tested, you would be offended. the legitimacy is so much weaker of the institutions. you will move to the me methodology. i know what our test is. >> you say reform our insti institutions what does that mean? >> across democracy in the west. we have a very large focus on what we pay, not what comes out. in tech, we have absolute miopic focus on what goes out

not goes in. our institutions have to move from what did we spend to what did we get that is scary because the outcomeparticipate the reality of the west and every institution does not matter what you spend. it matters what you get. if there is one lesson of software, the single thing america does better is not input, but output. >> can i ask about the power and influence of america today i spoke to antony blinken, the secretary of state yesterday, and we talked about the different challenges israel, ukraine, china the question is are these idiosyncratic issues over the

polarization of politics in the united states and the american influence isn't what it used to be >> let me give you a different rip on this. it is confusing to the outside world. we are at 84% of the top 50 tech companies in the world which are american in ten years, it will be more like 90% we are absolutely dominant part of the reason corporate america likes this i tell you fake things and you believe it and you become the product, is because they want to hide in the small group of people in america. that creates a problem with china. we are winning and they are not. then, we need a way of robustly defending ourselves rhetorically and militarily that is nois not zenophobic they don't know how to say yes we need a border and it shouldn't be a senophobic

border you need a robust way powered by software that is the single thing we do better than iran and russia and better than china. >> let's go around the world and talk about the state of around d ukraine. you've been working with ukraine for a long time now there is $50 billion they're waiting for from the united states. what do you think is going to happen >> look, i don't know what the congress is going to do. i talk to people all over america, some of whom are skeptical. you have to move away from the intellectual arguments and think of this as it is like prison we show up weak there, we will be taken advantage of, not just by russia, but by iran, and by china. so, even if you do not agree with what biden is doing, what i happen to think we should do, you cannot afford the president of the west loses. and we should do whatever we can to help. and then if you go around -- yeah.

>> let me ask you this, i spoke to president zelenskyy yesterday about what his future would look like if former president trump becomes the president again. i'm curious what you think of that question. >> you know what, you don't want to box in the next president of the united states. we have to figure out a way to make these things work >> israel. how much longer does this go on and is there a way to effectively eradicate hamas without more civilian casualties, palestinians >> despite what you may be learning at your institution of higher learning, this is all about making iran feel that this is no longer acceptable. at the moment iran feels the cost is too high this will change and there is no other way to change it. and so i don't know what that point, when that happens, but what america and israel have to work together to do is signal strength, while reducing human casualties it is very, very hard to do. >> can you imagine a two-state

solution where the israelis trust the security without some form of occupation for a period of time? >> we are so far away from those discussions. there will be no real discussion until the hostages are free. so, like, right now, it is, like, the hostages have to be freed, hamas has to be taken apart and then there will be discussion it is going to take a lot of trust building to make anything like that work and i don't know when that happens. >> state of play, china, taiwan. >> i'm more worried about china than anyone i know but mainly because the chinese economy is clearly going to underperform the american economy and if america actually begins to invest as much as we should in a.i. related defense systems, every day that goes by we get stronger and the obvious reaction to that about -- from a dictator is to say, wait, i'm stronger today than i will be tomorrow, so i structurally am

more worried about that than most people. >> perhaps one of the other big topics here, not geopolitical, but innovation is a.i. can't go down the street without talking about a.i. sam altman is here, the it boy of the a.i. movement how do you see large language models both working with and maybe even competing against palantir >> i mean, look, our u.s. product, i'm not here to push our product, but it is, like, it has grown so quickly that we have to rebuild the whole company. and the reason it is growing so quickly is in the beginning of the a.i. revolution was not large language models, it was in the military we learned a lot of lessons there that people are learning now. currently for a business, a large language model looks a little bit like self-pleasuring. if you want to move from self-pleasuring to transforming your business, you're going to have to learn how to manage that model and integrate it into the logic and knowledge of your enterprise you won't be able to do that as well as you can do it with

palantir. >> it appears you may be on the trajectory of becoming part of the s&p 500. what does that mean to you >> look, we have been profitable now for quite a while. one never knows how they decide to select people, but we are committed to being profitable. we're a very strong company. look, the problems that exist now on the battlefield, in the intellectual arena, and in u.s. commercial especially, are completely palantir-shaped problems it's very important for our customers that we have shown the financial strength we have, significant profitability, billions of dollars in the bank, growth that would be nice too but it is a lot about saying, look, you're going to rely on us, so if you're relying on somebody you would like to know they're strong and we're strong. >> when you think about the business, briefly when talking about a.i., you said at some point we're going to have to remake the entire business what does that mean? >> look, when you -- the shape

of problems now is how do you move soldiers around, how do you move missiles around, how do you rebuild your enterprise? the differentiated value of enterprises is going to come completely down to can you do that and that is so strong on the outside, that, of course, it is changing how we do things on the inside what does that mean? our go to market has to be different. we did hundreds of boot camps last year compared to 72 pilots the year before. it just is a question of embracing the fact that the revolution is bigger than we are. >> we'll have more of that interview online i got to tell you, i love talking to him every year here >> he speaks the truth he speaks his truth. >> fearlessly. >> he's fearless about it. and he does it with a nuance, not a -- it is not a one way or the other. he's a progressive and he says a lot of things that i think, you

know, joe, you're nodding along with it is very interesting that -- >> we can think we are the true progressives because we want to move things forward. which is what my view of progressive policies are regressive in my view. in the beginning, i like that part the part i liked best was about colorado he was saying it in a nice way -- he was saying, all right, you got harvard and then you got community colleges in colorado he's kind of saying it like -- >> joe's alma mater for those of you -- >> but he said, but i might get -- basically saying i can get maybe a better person, we need to test them all because there is no difference but, you wait long enough, my alma mater is going to become ivy league i don't think he meant it that way, but that's where i was nodding and laughing go, bucks! >> he'll say whatever he thinks and does not worry about the

fallout from it. >> you know the beginning was the part i like best i mean, i needled you a few times about signaling -- not you, but that contingent of people that say the right thing, but don't believe any of it. once people got fired from misgendering someone, but not saying from the river to the sea, you knew things were screwed up >> i don't disagree with you. >> okay. >> still to come, from geopolitical uncertainty to the a.i. revolution, fred kemp, the president of the atlantic council picks up on the key themes dominating the chatter here athwoect e rld onomic forum. "squawk box" will be right back. when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics. fresh, warm hot dogs, straight out of my torso! one for you, one for you. oh, you're a messy one. cool, right? so cool. anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. hot dogs! fresh, warm hot dogs!

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good morning from the world economic forum in davos, switzerland. the futures are mixed this morning after the dow posted its third straight losing day. jobless claims and housing data could set the tone for today's session. the u.s. launching new strikes on houthi targets in yemen amid continued attacks on ships in the red sea we're going to talk geopolitics as tension in the region rises plus, the ceo of hp will join us to talk about the pc market and the rise of a.i the second hour of "squawk box" begins right now

good morning and welcome back to "squawk box" here on cnbc i'm andrew ross sorkin with becky quick and joe kernen we're in davos, switzerland. final day for us here at the world economic forum let's show you where the futures stand right about now. we got two and a half hours to go before the markets are set to open want to show you that the s&p 500 is looking open up about 17 points dow up about 18 points nasdaq looking to open about 130 points higher. we'll flip the board around, treasuries, ten-year note just at about 4.086%. the two-year, 4.327%, joe. the u.s. military carried out more strikes on iranian-backed houthi rebel targets in yemen as tensions rise in the region and geopolitical risks are front and center here at the world economic forum here to break it all down for us, let's bring in fred kemp, president and ceo of the atlantic council, also a cnbc

contributor and i don't remember at least since we have been -- since i've been coming, a two-front war at this point, potentially that we talked about. and certainly it is very strange that the ukrainian situation has been going on for two years and it is almost as if the u.s. economy or the global economy has been able to almost compartmentalize that in certain ways oh, yeah, well, what's the fed going to do, instead of what the people are laying it on the line every day over there but then you throw on what is going on in the middle east and we realize we need to pay attention to these things. >> so interesting you put it that way so, talking to ceos, they want to talk about geopolitics. half my conversation with ceos this week is geopolitics and then they're gloomy and talk about the two-front war and we can come back to that. we're at the beginning of an era and beginning of any era is really volatile.

1945, 1962, think about the beginning of the porst world war ii era, which began with the cuban missile crisis, but the building of the berlin wall, et cetera you talk to ceos about their businesses and they're on the offense. generative a.i., the energy transition, changing supply chains, they got a bounce in their step so there is a really interesting dichotomy between geopolitical pessimism, i'm not as pessimistic but you hear a lot of it here and economic for the companies' optimism. >> i guess no one knows what is going on with putin, whether that or -- to go beyond ukraine and there is a fear of that. no one knows in the middle east whether iran finally gets drawn into something or there is a wider, you know, whether that actually takes on more fronts. and then in the backdrop of all that, you got taiwan and china, china newly aligned with its

friend russia and iran, and it all -- it is a hideous melting pot. >> the chinese leader who was here refused to meet with the ukraine leader so if you take this -- >> three fronts. >> yeah. if you take this president of the 1930s, what was missing then until world war ii, it was u.s. global leadership. what people fear about this new era is the u.s. is the wild card will the u.s. come through for ukraine this year? how is the u.s. going to manage the middle east? so, the -- what i'm hearing from u.s. leaders is they want ukraine to hold in the north in the east, but breakthrough in the south and threaten russia enough in crimea that putin comes to the table that would be a good outcome in the middle east, they want -- israel to move on from hamas at some point, restart its integration talks with abraham

accord states, normalize with saudi arabia there is a lot of effort to regionalize out of this. so what is crisis for? if you don't use crisis to come out fixing things and what is the point? so you can either be really gloomy and say this is the 1930s and it is going to lead to something even worse or take the lead and shape it in a better direction and my argument is we have agency in this, and i think the u.s. above all has to respond. >> and the elephant in the room, or the large orange man in the room, here in davos, is someone that might be much more isolationist than the biden administration >> every conversation, there is not a conversation you have here where i'm not asked to handicap the election and then handicap what the outcome of the election would be one conversation i had today was about trump and the fed. certainly he's not going to keep powell >> what about trump and ukraine? what about trump and china, what about trump and the middle east? >> trump and ukraine is a real

danger, no doubt about it. trump and nato, you know, he wants to strike deals, he's transactional. there is almost less alarm here -- people are calling the trump put. they're hedging trump. and in the middle east, the gulf, they would like him back and europe is probably the place that is most nervous because they said the most bad things about trump and trump doesn't forget that sort of stuff. and so europe is the place that is the most concerned about -- but people are saying it is a coin flip at this point here >> so, ben smith thinks it is happening. he thinks the davos consensus right now is that president -- former president trump becomes the president and he says because it is a davos consensus, he thinks it might be good for biden. >> so the davos consensus in 2016 was hillary clinton the davos consensus 2020 was trump being re-elected that was consensus now, i would say biden or a third player.

there is betting -- the betting line in london, you talk about all sorts of strange things in davos, is 46% for trump in the 30s somewhere for biden, but people still think there is an outside possibility of something strange happening because we live in such a volatile world, why wouldn't the unexpected happen. >> what is the record on this? >> i don't bet a lot there -- >> bet on the dogs >> leading odds at ladbroke would be for president trump. >> for president trump it is interesting there is still some feeling in this volatile world -- think about it, we didn't predict covid, 2020 2022 we didn't predict putin in ukraine, we didn't predict hamas, we didn't predict gaza war. why shouldn't there be something unpredictable that happens in u.s. politics this year? >> would be nice if it is something good, not a pandemic, not a war, not -- it would be

nice if peace would break out. >> are you pick up it is a consensus around trump and that outcome would be bad for the global economy that's what i'm getting mixed messages on that >> that's not surprising in davos. we had -- have you seen jamie's video? 5 million views. jamie dimon basically said that -- and, you know, to say in da davos, look, you have to kind of say he was right about immigration, you have to kind of say he made decent points about nato, you have to kind of -- do you remember when he said the germans shouldn't be relying on their natural gas coming from -- he -- and when he said that -- then he said i think he's trying to get some tough love to the democrats. don't vilify 75 million people as deplorables because -- >> i was going to make this comment, though, because i have followed that on twitter if you really look at one of the

reasons it is being retweeted and tweeted so much is because there is a group of people who i think want to believe that what he's actually saying is please vote for trump and i don't think that's what he's saying at all. >> tough love for -- you can almost look at any person saying something and say either they're saying it to warn democrats, you better get your act together or they actually want trump. >> here's what i think is the serious concern about trump. if you think about -- it is a new world order, post 1945, you need a martial plan, nato, european union, work together in common cause that's not trump's first instinct and that's the real concern here the end of world war ii, we had 50% of gdp our adversaries were in rubble, the global south didn't play much of a role now it is much more complicated. so the president has to come in, this is what i'm hearing here, with a more sophisticated control and a way to galvanize international institutions, oh, my god, can you imagine him talking about galvanizing

international institutions >> you definitely need some people around who live with some -- that's going to be a challenge. but someone said it and said it well, there is nothing wrong with maybe america first, but maybe america only is not a policy that -- >> i kind of like america with others, but -- >> you're not america fifth. >> it is not america fifth, but why have people followed america in the past? it is because we led in such a way na was in a bunch of other countries' interests and in the global interest when we do that, it also can end up being -- >> every country leads with their perspective of what is best for their constituency. >> you're right. >> when china starts leading like that, you let me know call me. >> thank you. >> that's the one consensus here that china's demographically doomed and india is up there is a real buzz on the streets about india. >> thanks, fred. >> thank you when we come back,

anti-defamation league ceo jonathan greenblatt will join us to talk about the surge in antisemitism around the globe and how leaders are responding and later, the power of a.i. and how the pc market is adapting. the ceo of hp wille bour special guest. "squawk box" will be right back. . with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy.

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time is war and peace and the absolute most important metaphor for that is what do you think about what happened in israel? and, by the way, antisemitism as a kind of prejudice has always been the canary in the coal mine for your society isn't working, your university isn't working, you're not providing real growth to your population, and because you're not explaining why it doesn't work, you go blame the jews like any enterprise that is about making the world a better place that doesn't deal with these issues is basically saying, i'm not really engaging in the problem and this is not just a problem here, it is a problem with all sorts of institutions from our higher education to fake discussions in corporate america to international conferences, and what i don't know why it falls on me to say the obvious, this is obviously just shows you you're not talking about the real problem >> that was palantir ceo alex karp talking about the rise of

antisemitism and the international response which he says is far too little our next guest is in davos to raise awareness about that issue and how it is being addressed, speaking to a lot of folks on the sidelines, taking part in a panel soon, jonathan greenblatt, thank you for joining us it is a topic, though, that really, i mean, alex has been the most public outspoken person here on this topic, actually most of it sort of goes on behind the scenes, a lot of private things that people have been talking about, but, you know, with the exception of what you're doing on stage later, it is not on the agenda >> yeah. >> it has been on the agenda that we had on "squawk" and the american it discourse and then in europe and elsewhere too, but oddly not here what is happening? >> i think it is strange i mean, extremism and hate as we know affect markets. they affect your employees they affect your customers they affect how you operate. and antisemitism right now is the most virulent strain of this hate. >> here is the question.

i was with the ceo yesterday, and this ceo had been approached about what can you do to help? >> yeah. >> what can you do to help he's saying to me, i'm triing about what can i do to help, but he's jewish, wants to help, wants to figure out what kind of pressure could be applied but is so scared to speak out publicly, or to do something even privately that could therefore become public and either offend his customer base or potentially affect his employee base, and for some reason this issue -- which i think i would imagine shouldn't be a politically polarizing one around getting hostages back somehow is explain it. >> i mean, look, hatred of jews is a universal problem, and it demands a universal response now, look, there are bad actors who are trying to say what israel is doing in the middle east is the cause of antisemitism but that's baloney

we have seen an explosion of antijewish hate, and it didn't start after the israelis went into gaza. it started on october 7th. we have seen staggering acts of harassment and daily violence. by the way, not just in america, but in england, in france, in germany, all over europe >> wasn't it surprising enough back home that the political continuum far enough left, college campuses, you know who i'm talking about, whatever, and you get to some oppressor, oppressed, apartheid analogies, you get to that point, and in davos you're surprised these are the -- >> wait a second >> -- elitists in the world, of course they're going to be -- if you get woke enough, you got to be -- >> i don't agree with the woke thing, because the other thing is there is also skinheads on the other side who -- i bring it up -- >> the truth is, in the last 90

days, it has been anti-israel -- >> there is 100,000 kids on college campuses that -- >> joe, the reality is that it is those right wing extremists who are shooting and murdering jews in pittsburgh, in poway let's just acknowledge, it is not just right, left, it is right and wrong. >> you occupied the left so comfortably for so long, you can't see it. >> come on >> one screaming through the rooftops, the other is actually shooting from the rooftops that's a major difference. >> it is appalling the universities have turned a blind eye to this. >> why is it being discussed in davos? what is your reason? >> look, like most of these ceos are not, like, woke activists, joe. >> why are they scared to talk >> because they have palestinian employees, who they think are going to go after them, they have -- >> palestinian employees are not hamas.

>> no, it goes to how anti-semitic the world is. that's what it is about. >> this is the reality that this hamas logic is rooted in anti-jewish hate that plays on all the tropes for a long time i think some of the chief executives are afraid because they don't know what to do here is what you do. leadership means you lead. >> you heard karp. >> alex is amazing we need more albert borla has been great. we need more executives. jeff sonnenfeld will tell you, a lot of them are doing good stuff, but being out in front like alex -- >> behind the scenes >> how much do you think it is a function of not offending not just how many antisemitic people there are in the world, but a number of countries and the leaders that are here that the world economic forum is trying to bring here. there is al lot of -- >> russia is not here because of

ukraine. >> i think it is shameful they didn't get pressed on this the truth is we have a terrible crisis right now in the middle east, we need hostages to come home yesterday today is the 104th day they have been held in captivity in tunnels. billions of dollars went into the tunnels. they have a network overseas of ngos in europe and america, who promote this lie that israel is committing genocide. it is disgusting and we have jewish people getting attacked in broad daylight this needs to change i want to put more of this on the agenda and hopefully today is a start. >> if you're the biden administration, grade. >> well, look, it is still a work in progress this semester isn't over yet i'm glad they released a national strategy. i'm glad biden has been strong on israel. >> for everyone who says they're strong, there is someone who says the bloodshed needs to end now. >> this started with hamas, this can end with hamas if they return the hostages today, it is over. >> the red sea and what we're seeing there -- >> the houthis >> with the houthis attacking

all the ships, does this make it more or -- >> this is not about palestinian nationalism. it is about iran that wants to exert control, spread its influence. that's what this is about. houthi flag, you know what it says it says on it, it has four lines, it says death to america, death to israel, curse the jews, allah is great. >> very political question but it relates to his. we have been talking all morning about whether the conventional wisdom in davos is that former president trump becomes the president next year. that is almost becoming baked into the cake, whether that's a contrarian signal, and we talked to jamie dimon about which president or which president would be better for the country. on your specific issue around what you do for a living, who do you think would be better president? >> look, president trump, president trump did some things around israel that were

incontravertibly good. >> he's probably a better friend to israel than -- >> let the man answer the question. >> i understand it biden's popularity is higher than trump's today he's been so good on this. look, at the end of the day, what i've got to hope is that some degree of common sense prevails what i'm hearing from ceos here is they're all doing the scenario planning now about trump winning. that's what i heard from several european chief executives. >> what is your answer >> that's why i answered because he's not going to give you an anser. >> it isn't yes and no i hope for best and prepare for the worst. >> jonathan, thank you. >> abraham accords were progress. >> this is why the attack happened because iranians wanted hamas to break up the possibility of israel normalizing which would have been the surest bet for a peaceful resolution. >> he has people in his administration that are mad at how pro-israel -- >> james baker wasn't a big fan

of israel and he was a chief of staff of the white house let's be honest, you see this on both sides, joe. joe biden has been rock solid over the -- >> good people on both sides >> well done well done. >> thank you, jonathan. >> coming up, this morning's corporate headlines, futures right now, we're going to talk about a -- the dow is now -- the s&p is up a little bit but you can see that the dow barely up, strong nasdaq, though "squawk box" will be right back. >> thank you, sir. >> announcer: time for today's aflac trivia question. will i am played what character in the film "x-men origins: wolverine." the answer when "squawk box" returns. alright, you about ready to get out? what's this? a hospital bill?! for a thousand bucks?! gaaaap! did this goat just say 'gap'? he's talking about expenses health insurance doesn't cover. but with aflac, you can get money to help close that gap. aflac, huh? -aflac! -ahhhh! okay!

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>> announcer: and now the answer to today's aflac trivia question will.i.am played what character in the film "x-men origins: wolverine"? the answer, john wraith. welcome back, everybody. couple of headlines for you this morning. bank of america upgrading apple to a buy from a neutral. the analyst there citing expectations of a stronger multiyear iphone upgrade cycle driven by a.i. technology.

that's the buzzword for sure, everything we're hearing here. rising the price target to $225 from $208. the last tick, $186 for shares of apple shares of boeing rising this morning after received an order from india's acasa air for 150 boeing 737 max planes. that order does not include the 737 max 9 which was grounded by the faa after an incident on an alaska airlines flight earlier this month. sheryl sandberg is leaving the bord at meta sandberg, who resigned as the company's chief operating officer in 2022, said in a post on facebook that she would not be standing for re-election at the annual shareholder meeting coming in may. when we return on "squawk box," the global ceo of deloitte will join us to talk about how ceos there, here at davos and abroad, are feeling about the state of the economy and morgan stanley ceo ted pick will be our special guest.

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welcome back to "squawk box" right here in davos. ceos have been cautiously optimistic about where the economy is headed. here is some of the highlights >> the consumer has been relatively strong. they continue to grow their spending demand is there. businesses have gotten more and more cautious. >> i think it is a mistake to assume that everything is hunky-dory it is like this little drug we all feel, like it is just great. but, remember, we had so much fiscal monetary stimulation, a little more on the cautious side. >> no question, we made a lot of progress on inflation. depending on how the progress, you know, moves from here, that will spell the direction of policy >> joining us right now to discuss the current state of the ceo sentiment is joe ucuzoglu, deloitte's ceo good morning. >> good to be here >> we keep talking about whether it is a contrarian take or

what -- what the signal to the noise is here. it seems like a lot of people are either very sanguine or optimistic, does that mean next year when we come here, we're going to say, boy, were they wrong? >> the consensus view in davos has not been particularly accurate going back in time. but i think you have to start the conversation with the geopolitical backdrop. you know, one of the things that really struck me is people are leaving here more concerned about the state of the world, conversations with those in the foreign policy community, those in the military community, the threat landscape is highly risky. now, it is somewhat miraculous that we have threaded the needle and in spite of that, the global economy has been relatively devorest and the outlook is reasonably positive given some of the things you heard, lower interest rates, strong consumer, the expected productivity gains from technologies like gen a.i there is a big asterisk.

a lot of balls in the air and the risk profile is high. >> what about the a.i. piece of it we're at peak a.i. here? what is the consensus -- what does that mean given how it is part of everything >> you can't walk six yards along the promenade without a bunch of flashy graphics around generative a.i the issue isn't just how significantly positive the use cases are. this is going to be transformative to every aspect of the enterprise. we look at types of use cases we're working on with clients, anything ranging from transforming the drug discovery process, creating molecules, all the way to something you might think of as being more mundane, like call centers, where the productivity benefits are substantial, this is going to have a big impact. the issue is the time frame. and i'm a little worried that, you know, we may be at least the height of the hype cycle and sort of predictions around how quickly this all plays out these are big complex enterprises. >> we have talked to companies this week who are doing things

right now with generative a.i. everything from drug discovery and deciding when you should do a phase three trial of something to having engineers become 50% more productive because they do the dummy work for you >> they're doing it now. but is it fully implemented and operationalized and all the benefits manifesting look at the macro economic productivity statistics. you don't see some massive transformation overnight it is going to take time in the enterprise, you got to revamp long-standing embedded processes. that's the work we do with clients. there is a bunch of work around i.t. modernization, legacy antiquated main frames that need to be refactored, just to get the data in a state so -- >> it is not time, it is massive amounts of infrastructure spend. >> there is a ton of infrastructure spend, our people are being kept quite busy this is going to have a massive impact we're highly bullish deloitte is a voice of credibility. we want to be the adult in the room we don't want to overhype and

have people come back and say you promised x and they lose faith. it is going to take some time. >> want to talk about, don't know if you've been listening to a bit of our conversation this morning, talking a lot about maybe controversial or polarizing political issues about when companies are supposed to speak out or not, antisemitism is a topic talked about privately here but not much on the official agenda. wokeism and the like do you feel like -- and really the backlash to a lot of esg efforts that a lot of consulting companies have been helping big businesses with, how is that shifting for you in both in the united states and i'm curious how it is different maybe in europe or other places. >> so i lead an organization of 450,000 people and one of the things you find is around these issues, people in different places of the world, different cultures come at these things through very different lenses that's a dimension of inclusion. i don't think this is an issue of wokeism, backlash, the corporate community was all in and now they're back tracking.

it is a matter of what you do, what you say, how you go about it, in a nonpolitical manner and so we can talk about it in the context of antisemitism. we can talk about it in the context of climate the issue is coming out with a perspective that is grounded in values that ought to be unifying there is too many forces tearing people apart we should be driving people back toward the middle. a lot of the common ground here, whether you're a progressive democrat or you're a conservative republican, too much of the noise is taking the fringe of the issues and trying to divide people as opposed to any one of these things, we think there is a lot of common ground. >> think about electrification, solar, we have been talking about evs and sort of what we're seeing in the united states, in terms of pickup on evs, consumer demands, infrastructure problems and also it has become a blue and red state issue versus how it seems to be being approached in europe where they don't seem to be the same type of political

headwinds. >> i don't know if i agree with that i think you're seeing a lot of polarization in europe right now, particularly this issue driving a rise in the far right across several countries let's just take this issue as an example. there is no doubt that we have to decarbonize the economy that it is an imperative there is also no doubt that you can't do -- >> you say that as if there is no debate or doubt about it. there are people, like, joe is sitting right here, he has doubts and debates the whole thing. >> let's talk about how to do it pragmatically. so is it going to happen overnight? no we need a lot of fossil fuels for a lot of years that may be inconvenient to some and you got people protesting as we walk up here. but the science is pretty clear. and we have made a lot of headway. one of the reasons why some of the worst case draconian scenarios, people talked about without any efforts to mitigate this, we would have been headed to a four degree rise by the end of the century now people are debating, is it 1.5, 2, 2.5, how much is

mitigation, adaptation if you take a pragmatic approach to this, i think there is a lot more common ground than people want to acknowledge. >> if i were to show you carbon dioxide, i call it carbon dioxide. carbon in itself sounds black and sooty. carbon is an element it is solid. it is black. carbon dioxide is a colorless, odorless gas present in trace amounts in the atmosphere. and in the past, now you got to go back a ways, but it can be 20 times higher and temperatures weren't cooler i have great doubts that co2 is the primary climate control knob and you come here, in davos, and you just said the science is settled. science is never settled or we would still think the earth was flat at this point i'm fighting an uphill battle and i don't want to get into it. we can agree to disagree, but it is amazing the amount of group think that goes into -- >> joe, we're trying to be pragmatic. we serve proudly manufacture the

o many of the oil and gas companies. they're saying in a pragmatic fashion over time, we need to reduce -- >> if you talk chemical waste, strip mining and there is no fish left in certain parts of the ocean, there is plastic islands, there is so many things, i'm the biggest environmentalist in the world is there a phantom menace of co2? how long will you support the oil -- will you cut them off ever >> no. >> okay. good we need them and the world we live in would not exist without the energy sources we have right now. and it is going to be a very tough transition that takes 50 years at least >> joe, i'll save you. thank you for joining us >> i'm trying to save him as well >> two different ways of saving joe. >> everything else comes home to roost. maybe this will. allthe other stuff >> we got a lot more coming up this morning front man for the black eyed peas, songwriter, singer, now mr. a.i., will.i.am will join us from the world economic forum.

he'll be with us in just a little bit take a quick look at the futures ahead of jobless claims and housing data you're looking at the dow off about 13 points. nasdaq up 150 points s&p 500 up 21 points "squawk" coming right back we got this. we got this. we got this. life is for living. we got this. let's partner for all of it. edward jones

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all right. alphabet soup. up next, the ceo of hp on a.i., the impact on the pc at the top of the hour, morgan ecl esy ceo ted pick will be our spiagut. wealth-changing question -- are you keeping as much of your investment gains as possible? high taxes can erode returns quickly, so you need a tax-optimized portfolio. at creative planning, our money managers and specialists work together to make sure your portfolio and wealth are managed in a tax-efficient manner. it's what you keep that really matters.

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welcome back to "squawk box," live from the world economic forum in davos, switzerland. >> right now, welcome back, everybody. we would like to get to the pc sector, take an overview of what's been happening. hp unveiled the new line of a.i. powered laptops at the consumer electronics show in las vegas earlier this month for more on how a.i. is changing the work world landscape, we want to bring in enrique lores, hp's ceo thank you for being here today >> thank you for having me here. >> i know you're in a quiet period, so there is only so much you can say, but let's talk a little bit about what you're seeing overall in global demand for the pc market, just because this is a conversation we have been having this week with intel and others there was a huge demand for pcs, new pcs because of everyone being tracked, work at home, school from home where are you do you think in that cycle

>> mthis is part of the data we can talk about we saw a decline of 2%, which is showing the recovery that we started to expect a few months ago because we have been declining and now minus 2 shows market is getting better hp grew shares we're happy with our performance in the market and helps with the optimism we have for 2024. >> and just in terms, you think it is going to be a normal cycle from here? things got so out of whack for a while. >> i think it is going to be a normal cycle and then there are those who have significant tailwinds that will continue to drive demand we -- install base, this is clearly going to help. as we introduce a.i.-based pcs that allow consumers to run a.i. applications locally, we think this is going to help demand for pcs for the coming year. >> you have a study you've done on satisfaction with work.

and a little shocking when you see the numbers, just 27% of people have what they call a healthy relationship with work that's kind of staggering. >> i think it is staggering, but i think it reflects the reality of how people feel today i think the pandemic showed the different way of work, create a different type of need, so now all our employees, and now they really want to see a change to make sure that they can combine the personal needs, the professional needs, that they get the technology that they will help them to be successful and this is showing that we need to make significant changes in how do we connect, manage, develop, grow our employees to make them successful >> what does that mean for hp? what is your role in all of that >> for us, it is very big opportunity. we as hp believe that the company can enable hybrid work, the solutions that we bring, so really we are taking this as the core of our strategy to really drive a change in how people work and collaborate

>> there is a class action lawsuit about third party printer ink replacements people who have gotten angry at the idea, they say they were not aware when they updated software and their hp printers that it would disable some of the printers if they weren't using hp branded ink what do you say about that >> i think for us it is important to protect our ip there is a lot of ip we build in the ink, in printers themselves, and what we're doing is when we identify cartridges that are violating our ip, we stop the printer from work. >> so violating your ip, meaning they're rip-offs, counterfeit and you're going to break the printer as a result? >> in many cases it could be it can create issues from the printers stop working, because the inks have not been designed to be used in our printers to then create security issues. we have seen that you can embed -- in the cartridges, through the cartridge, go to the printer, from the print,er, go t

the network. >> long-term, though, do you think the idea of third party cartridges at all are a bad idea >> our view is we need to make printing as easy as possible and our long-term objective is to make printer as subscription. we have been driving and barriers to print, office much more convenience solution for customers. >> right. >> especially most sustainable every time a customer uses a cartridge we take it back, recycle them, use it again. >> the plaintiffs in this case say it artificially keeps up the cost how much if is for replacement ink printers the theory, get razor for cheap, pay a lot for the razor blade. same with printers and printing cartridges. >> part of the business model developed over time. we sell our printers and make it clear the printers were for hp supplies we made it very clear from the beginning. so we --

>> and do you break even lose money, make money on the hardware >> lose money on hardware. make money on supplies. >> how much do you lose typically? i buy a print other $3in had. >> we don't disclose specifics of the business model. >> but there are bad customers anyway if not using hp -- >> pardon me >> bad customers anyway if not using hp cartridges because you haven't made money on them >> exactly the number what we use unprofitable customers ef time a customer buys a printer it's an investment for us we're investing on this customer and not using our supplies, it's a -- bad investment. >> i have paper problems jamming. i can't fix my paper jam haven't been printing for months. >> sound like me. >> saying, a real problem. >> i go to your home and fix it for you. >> you told me a service you offer. >> right. >> that actually will -- go to

your -- >> we have seen it -- i.t. is very difficult so one of the roads we see, how do we make it easy, make it easy to connect, to solve problems like yours and we have a service to enable that, but so far we shift the business subscription not only for printers but pcs and the rest of the products we build that will be an even better way to -- >> pretty good as i said. internet of everything in my house means something is always broken a lot to keep up with. >> you ahp smart friend? is that, you can use -- going there, by the way. >> let me ask you about berkshire hathaway warren buffett bought a huge stake in april 2022. selling it we just found out in filing last month he cut the stake to 5.2% berkshire hathaway cut their stake cut that, i should say

do you know why? third institutional-wide shareholder. why sold shares? >> we don't disclose specifics but i can tell you we are really confident having the company value creation of opportunities we have, and committed to continue to execute our plan. >> a.i. has been what we have asked every person here. seems to be on everyone's lips what does the future of a.i. mean in the hp world >> we are really excited about opportunities a.i. brings. as you were saying at the beginning, we are introducing our pcs next year. the capability to run language, launch language models localry, which will from a cost, speed and security perspective, a much better solution for consumers, and for others and's probably biggest change in the pc industry in the last 20 years. >> enrique lores, thank you. >> don't let them go hold on. $16.99 for the help.

it's like a help line? by phone >> uh-huh. >> they don't come to your -- i can't pay an extra service fee to come? >> not to come. >> with paper jam, i mean -- how am i going to fix that over the phone? >> very good trained you should try. >> okay. thank you. >> thank you. >> appreciate it. >> and try to do it with a text. the robot -- have you tried that >> how much is this is a.i. actually chatboting >> thesing reae ing ream peel br time use a.i you won't know the difference. >> moynihan was here my face recognition on my statement is all messed up. >> he didn't say your bank balance. >> what did he say >> you need to get paid more. >> exactly get a check on the markets here futures -- always -- overpaid but -- >> stop spending, under compensated. i think. futures this hour. you can see down 62 points or so

on the dow jones industrial. look at the nasdaq that is a pretty strong move this morning as we have said for 32 years, the tech-heavy nasdaq. treasuries ten year, 4.08%. >> we've got a huge lineup in our final hour you do not quantity to go anywhere check out what is on tap morgan stanley ceo, ted pick, with us. and then ceo mike friesz and singer/songwriter on tra pra murt black eyed peas member, will.i.am. the man himself, right here on "squawk box. do not go anywhere a massive hour ahead final hour of "squawk box" from davos, switzerland, world economic forum. at t. rowe price our strategic investing approach can help you build the future you imagine. t. rowe price, invest with confidence. the first time you connected your godaddy website and your store was also the first time you realized...

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good morning and welcome to the world economic forum our final hour, global finance, politics and a.i the topics of the day among leaders gathered here in the next 60 minutes we've got another great lineup of guests the ceo of morgan stanley. liberty global, and workday. as well as former house speaker paul ryan and award-winning musician and entrepreneur will.i.am. on his journey into artificial intelligence.

the final hour of "squawk box" from davos, switzerland, the world economic forum, begins, right now. good morning and welcome back to "squawk box" here on cnbc live from the world economic forum in davos, switzerland. one hour left. you set final day. final day this year. >> yeah. >> i just can't wait. >> for next year. >> next year can't come -- >> looking flat already. >> and along with becky quick and andrew ross sorkin, i'm joe kernen u.s. equities mixed with the dow unchanged but strong gains -- dow's now down 65, nasdaq up 139 points. >> what? >> interesting must be obviously, some really good performing tech stocks or a couple dow components that are

not participating in the session today. treasury yields, i think we saw a little uptick yesterday. once again, on some of the hotter numbers retail sales pretty good good christmas in season 4.09% ten year. >> morgan stanley reporting fourth quarter results earlier this week. the firm topped revenue expectations help from investment banking business but profit hit by more than half a billion dollars in charges the bank took. some for replenishing fdic we saw at many other banks. joining us, first interview since the top job, new ceo ted pick and, ted, welcome. >> a thrill to be here on my bucket list to be on "squawk box" and here i am. >> wow >> thanks for having me. >> wow >> and on the jerry seinfeld list. >> the lovitt list. >> yes some ceos that we ask to come on, they go, "no." >> it's the "love it" list

nice to see you. >> it is nice. >> thanks for having me. >> hope it's beginning of a beautiful relationship. >> i hope so, too. >> ted, talk talk about earnings in a little but talk about your vision for the firm you've been at the firm, since 2008 there when an existential crisis seen everything. there rebuilding it with wealth management as part of this of what are your goals things to look for different than the era of james gorman >> i'm a lifer i got hired out of college. i went to business school. came back. so it's the only job i ever had. so i'm really grateful they've kept me 31 years and we've seen a lot you know as you remember, we traded $6.71 in 2008. so it's been a long road back. 14 years mr. gorman putting it back together, transforming and keeping it good. transformation and reformation

of the good morgan stanley the goal, don't change the strategy it's working elevator, up a couple floors explained. wealth asset manager and a global investment bank what we got. get the ecosystem working together, and i'm bullish about it number one is reiterating that the strategy is in place number two, talking about the culture. culture that got us through the cruises, through the transformation competitors now firing on all cylinders. make sure we mobilize around the firm getting along well, keep going on that. last piece, hit financial targets. $10 trillion in wealth asset management dollars will be coming a big number going to get there hitting 20% returns. that's it. 10 and 20. so taking time but i'm super bullish. >> the stock traded off on earnings i think by about 4%, and from what i've seen and heard, looks like concerns around the margins at the wealth management business. which, again, wealth management business, huge deal.

why the stock has done so well sew long optimism around that, but margins aren't what wall street hoped for and doesn't look like they'll get to the 30% goal that you had set for some time yet. you want to talk a little where you are in that sort of movement >> yeah. definitely the key item. as you know, james took 14 years to put this thing together, and built a ton of credibility i've tried to do that with colleagues in business units turn around fixed income, felt like personal credibility really important right out of the box so as you talk about all the time, a weird moment of cycle transition loaded up on t bills, money markets, and velocity of wealth management business is quiet and a little sort of reaction function from march. we're going to get to 30 i just feel like with all investing we're doing on the run and given on the cycle, kind of just guides people to the

mid-20s a while and know getting to 30. it's happening. the winners in our name you know, people who owned stock 5, 10, 15 ears. folks react off the way i set off, take off pluses and minus signs laying out what we have to hit. 10 trillion. 30% margins in wealth. 30% for the firm including investment bank and 20% returns -- did it during covid you know a weird period everything kind of worked. i want to get there durably. part of the reason the boss had so much success he guided the place to kind of a durable area. herky-jerky on morgue be stanley. mid-20s, a little disappointed mid to high, mid-20s feels right. hit those levels we'll start to exceed that as the cycle transitions and move forward. >> we've had, used to have jim on and, james, and actually --

in the middle of some of goldman's problems, i would sometimes ask if he was -- wouldn't say -- i wonder if during those years it's not a zero sum game, but did morgan stanley take advantage of problems goldman had, and david was on earlier this week we said congratulations. great quarter. really good first quarter and in maybe a while. turning around for goldman is that a negative for morgan -- you want everyone to do well did you take advantage of weakness of goldman over the years, of james? >> we need to find a way to get focused ourselves, truly big things whether our market cap got bigger big story for us for a number offer yaos out of the financial crisis, were we going to make it the rest -- i know took a long time. >> the wealth business wasn't goldman's business weren't even trying to be in that.

>> we asked james about, never admit he was taking any satisfaction but i think he took pride putting margin -- >> tell you, david and john are, and i -- they are excellent competitors. darn good at it, and the beauty of the business we're in is, sure, boutiques and there are multistrat hedge funds pick away at what we do. to be a world asset manager, a leading wealth platform. three and four in the world one not even public. to be a global investment here a but in hong kong next week or tokyo? only three of four of easy that and goldman will be one of those global investment banks. us, too'san excellent competitor beauty of it is, right way of the cycle all of us wealth and investment banks and i like our ability to push forward and print tickets. >> what do you think about the economy for 2024 what do you think about the markets? how are things shaping up.

>> you guys talk about that obviously a lot. the right answer is, "who knows? always the right answer. the -- i guess the market said 140 basis points of cuts, balance of this morning, and kind of less or a little more than 50/50 on march, and dow, 75 basis points i think this feels a little like the -- late teens when we were coming off the zero barrier in reverse. ready to lift, and then every time they talked about it, try it out, there would be hawkish reaction sort of stand pat. doing opposite talk about the path lower. a loosening. asset prices go through the roof okay see if that overheats us again i do think we are probably past peak inflation. what's interesting, though, becky, is, like, it is not incon conceivable we have to go faster. >> uh-huh.

>> i.e. 50 baisis points price it out. >> the economy weakens >> possibly have to hike highly possible, too. >> how do you layer on top an election year? >> yeah. >> in terms of both how you think the fed may behave, also how you think ceos in terms of the investment, business investment, banking business might behave around m & a, ipos the like uncertainty that seems to always happen in one of these kind of psyc cycles >> you know, this is a prism where you have to sense whether it's corporate activity and there's a ton of activity buzz people want to do stuff end of a financial resuppression and then pandemic and elections people want to scale up. world smaller. purify a backlog of sponsor activity has to get sold, taken public. companies warranting to merge with the right companies,

regulatory authority don't know what comes next. advisory tickets, you know well will quicken and i think quicken mid to large cap across industries, and across border. it's not going to be bang, but i think once people start get going we'll see a bunch of it. >> ted, circle back to what you said in terms of your message to wall street and how you plan to run the bank what i heard, i don't want to put words in your mouth and make sure i'm interpreting it correctly. what i heard is, you're not going to manage this for the short term looking at long-term investments's if anybody's looking for a quick pump on stock, forget it'sit's not the place to be. probably important you don't manage fob the long haul never be ale to >> right bal balance, a form gorman premium and he earned it don't have that evaperate. right? name of the game is to sort of balance real expectations and

build credibility but have people understand we are highly confident of both of these pieces to grow and the secret sauce is, they're going to grow together ecosystem being a leading wealth manager, banking an individual, not an institution and covering them as an investmental banker, hedging their risk as a trading house is unique and the case, talk to core shareholders made a lot of money in the name last 10, 15 years love durability of the story. you know trouble with the ban bavgs ultimate briced off the book value able get to pe the way you get to pe predictability, durability the road i think we're on again and as you can hear i'm super bullish about it. >> ted, thank you for coming and spending time with us. we really appreciate it. >> really appreciate having you, guys thank you. >> thank you. when we come back a lot more on "squawk box." a special interview on a.i. creativity with will.i.am.

on set in moments. next, talk about state of streaming. media and telecom with the ceo of liberty global. mike fries is there. don't go anywhere. "squawk box" returning from davos, after this. let newage products transform your garage into an area of your home you can be proud of. modular steel cabinets let you pick and choose the storage solutions to keep your garage organized, with overhead racks and shelving, slat wall, workstations and flooring that let you create a showroom garage to call your own. designed for diy installation. all you need is one weekend to take your garage from unusable to unbelievable. visit us at newageproducts.com.

future 5g streaming and cable, focus here in dain davos haven't seen you since last year joining us to talk about it. you were, would go on something. talked about fiber talked about 5g. what have you been doing in the past 12 months >> a lot more of that. our networks in europe are among the best but we have to continually invest in fiber and 5g a lot of capital but paying off. driving innovation you hear about this week. fiber, 5g, consume less energy, power and fuel this growth you're talking about it's necessary it's happening a lot of cap x forcing up to focus on top line and drive growth, a.i. can help. critical. >> watched it go up, basis points >> didn't help we have a lot of debt. highly live rathered, by design. also derisk. balance sheet is fixed, hedged,

all of our interest rates are fixed long term, but no refinancing coming 4% something like that. for our leverage, pretty good. seeing green chutes. i was at the goldman dinner. economists say interest rates are coming down. inevitable. >> green shutes not in the economy, in the interest -- >> hopefully go together thought soft landing as a result we'll see. our balance shoe et ieet is str. lots of cash. >> anyone mentioned a.i. while here >> what does that mean for us in the industry grinding to drive revenue a game changer. anything that up its the consumer will be more joyful, better, more efficient anything that involves our networks will be more energy-efficient going to find outages more quickly. our people going to be more productive. all knowledge work we do inte internally i think it's real and for us use cases identified

don't have to be first in a.i. just fast. i think we're on that track and the risks are real no question about it, but unlike prior innovation cycles i've never seen such awareness. regulators are on it and companies will self-regulate we have principles around being, beneficial, responsible, ethical. everybody's thinking ahead about these risks. that's never happened before the internet came around, nobody thought about risk not saying they're not real. just saying first time i've seen there's a lot of work going in ahead of time to manage and anticipate those risks. >> can i talk to you just about, mike, the john malone ecosphere. >> sure. >> working for john. having him as a mentor, and a friend, it's a very different way, i think, going through this it's a different company as a result. >> yeah. >> what's it been like >> it's been the most incredible thick in my business career. worked together three decades.

i can't imagine not working with john he is one of a kind. you know him well. spend a lot of time with him what makes him different first of all a long-term thinker. not worried about tomorrow or the in ex-day. second of all, he's loyal, generous he likes to give his ceos, greg, david, my, bandwidth, freedom to do what they think is necessary, but always there you can bounce ideas off him and it's extraordinary i think the three of us talk all the time how lucky we are to have somebody like him in our lives, as a friend, a mentor and also in business. >> how bullish on the business now? one of the things he was very good as seeing around corners and able toal see the next frankly 20, 30, 40 years ahead, there was going to be wind's cwind's -- wind coming from the back. now wind is coming from the front. >> great point i'll tell you this at ain interesting inflection point in my bice

transport, broad band, connectivity business, is it a commodity? critical infrastructure, but is it a commodity? how do you differentiate we spent the last five years changing the portfolio now we have fmc, and sold off the cable off 12 times spent $14 billion buying back 60% of our shares ridiculously low values and in position now told investors in february, come with a strategic update show how we'll bridge the massive value gap in our stock, through a series of transashtransactions d strategies sddelivers for sh shareholders fundamentally we need revenue. whether that's selling new services like health or selling telehealth services and gaming in belgium find ways to get customers more stuff, supermarket approach, it can work second thing interesting about our business is goal in our business is the networks

europe, infrastructure valued 15 times ebitda wouldn't be surprised to look at networks wereand servecos separately finding ways to break up the business in a way so met networks, whether fiber or 5g, value different from the -- >> what do you think of starlink and what that could ultimate do to your business accepting that you will always have, from a perspective faster probably better network? in terms pure reach? >> competitor. >> beauty of that business model, small number multiplied by a big number is a big number. a whole planet to sell to. going to be fine on these devices a game-changer but safety first talk via satellite on your apple today. >> right. >> that will be useful right. not replacing things we're doing with 90% of the population >> good answer. >> he gets 10%

that's it. >> and liberty, pedigree of the malone sort of one of -- remember the baby -- tigers? anybody that had anything to do with -- >> yeah, the cub. >> and going to ask you. what is john think, everything looks like in five, ten years? you see, see that 23 million streaming. saw an article said lowest of the playoff games. >> wild card game. >> streaming on peacock. >> question is, you've had this experience do you think you can hold those customers? that's "the" question. >> i think we can. john on recently if he's a appropriately realistic about traditional media and challenges it faces, and transport business we're in, charter,o otherwise, i think he understand avenues scale if you have capital. avenues to break through i think david's going to break through. warner brothers is going to be a winner going to take time doing all the right things

john is realistic and humbles us and reminds us that he's -- live long enough you see everything two, three times that's helpful. >> mike fries, great to see you. when we come back, meaning of creativity and human generated art when a.i. assistance is on the rise. talking all about that with musician and innovator will.i.am. "squawk box" will be right back. ♪ (upbeat music) ♪ ( ♪♪ ) constant contact's advanced automation lets you send the right message at the right time, every time. ( ♪♪ ) constant contact. helping the small stand tall.

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welcome back to "squawk box. we are live in davos, switzerland. our next guest a global celebrity's you know his voice and face with the rise of artificial intelligence he's pushing for protection of people's likenesses. joining us to talk about his deep dive into a.i., entrepreneur will.i.am thanks for being here. >> thanks for having me. >> everyone sits at this table says you can't walk six feet without somebody saying the word "a.i." to you. what have you learned on this journey, this trip are we at peak a.i. or is this just the beginning >> not peak. a pac-man. it's warner brothers haven't gotten to haloor xbox. haven't got that yet so this is a -- it's 1984. as far as -- >> in a good way >> no. both ways. >> well -- let's go straight to this give us the, in the good way and

give us in the bad way as you see it >> well, it hasn't gotten bad as what social media has done to society. we haven't seen that yet. and let's hope that regulators, policymakers, get their stuff together so it doesn't end up that way we can't have it to where companies lead with greed, because we're just going to have some version, even worse, what 2.0 and social media did to society where the our civil liberties are compromised, democracy is compromised privacy compromised. we shouldn't repeat that with this level of tech. but we have dupe machines, made-up machines but technology on the other hand is spectacular. it can help bridge the gap who gets access to the best education. help unearth tomorrow. industries. because at the same time, it will topple the industries we

know now >> you just came from a lunch, i think, with sam. >> uh-huh. >> and open a.i. has become the sort of the gold standard for a.i. at the moment, but it has gone through even in the last three months, people looked at it original not for porofit not led by greed a whole new question what open a.i. even is really a company effectively mit a business like any other if not more so? >> i always have optimistic lens how i look at the world. the amount of compute alone for that machine to work, it has to have, make money it can't -- it cannot be a non-for profit and have that level of compute who's going to pay for everything >> right >> so i understand that perspective. to say that it's, it's going to

lead with greed, aww, too early to saythat that's why i'm having these discussions. sam's a good guy at the core a good person. >> tell us how you're going to use a.i. and how you already are using it >> i invest in companies, first. and i want kids from the communities that i come from to be competitive in this space build companies, solve problems with this technology so mentoring kids, i have a program in l.a. started about, a little over 14,000 students with computer science and robotic skill sets, with our partnershiply l.a., leading my entrepreneurial activities. philanthropist first showinging kids what i do i'm hosting a radio show

cutie pie co-host. first time as a co-host. excited about that company, fyi.i. >> how does that work? >> like this show except my co-host is an a.i. >> you say something -- and then does it -- is it right on? and somebody typing behind the scenes >> no, no. >> you can tell it anything beforehand >> just chitchatting >> it's mind-boggling you can just -- cop in and not have any preparation and dive in on any subject, popular culture realtime information historical stuff banter it's freaking amazing. >> what's the weirdest thing cutie pie ever said to you any to throw you off >> oh, i pulled it up. doing, i was doing a panel the other day, and we were, i was having, like, joking bander with

it earlier on, in the morning. and so when i -- when i introduced cutie pie to the folks i was on the panel with it call ed me user why you messing around like that i'm just pulling your leg. right? it being witty, we didn't program it to be witty. >> right. >> i was joking with it earlier. >> right. >> and so it probably -- was continuing with the joke banter. >> let me ask you about likeness going to become a huge issue in terms of i.p., copyright protection the light by the way lots of lawsuits against open a.i. around content including used from geddy images, "new york times" and others i assume you want to be paid for your likeness, if, in fact, people are creating songs or other content that looks like you, feels like you, and -- figure out what's the distinction?

something that looks like you may be one thing feels like you, sounds like you but only slightly like you is that different? >> these are all new concepts and there's no rulebook for it yet. we're figuring it out as we go. i think even yourself. >> yeah. >> you need to own your a.i. and your data that's going to power it right now we don't own our data. hey, who do you bank with? you don't have to say, but you bank with somebody. >> yeah. >> what's your data bank don't have a data bank that company doesn't exist the industry that banks our data doesn't even exist oh, yeah it's called meta you can't use it but they can use it and they sell it. that is new. moving forward that has to change because it's a human right that i own my stuff so it's a human right the stuff i own is going to, it's going to feed my essence and likeness.

>> and right now if somebody were to sample one of your songs,ing how's that work? >> that's a different type of technology. and that's been protected. there -- there's an industry called the publishing industry. >> yep. >> in the record industry, that owns the master recording, that protects that. >> right what about a little rift, and really, but not really >> they've already, there's laws around that. chord progressions are not copyrightable. it's a progression only eight notes we all share this information and this ability and when we write songs, you know, you're writing songs around theory that has existed before the record industry. >> right. >> so these types of thinkings need to be put around a.i. more importantly down to the human core of it that is your a.i it's ot a public rest room not buying a freaking house and

ask the realtor where's the rest room by the way, the whole neighborhood is irsharing a restroom down the road you want to make sure things private to you are yours data private to you should be yours. the thing powering that should be yours, not some company. >> i like it i like it. >> these are great beat bots. >> big issues, big thoughts. >> also, where is the freakin' constitution for a.i.? everybody making it should have, sign some constitution where the licence? you have a car, drove it, took a test companies that make the cars have regulations, seat belts, air bags speedometers. >> technology always runs ahead of regulation. that's the problem. >> yeah. here we need to move fast. people watching. people need to know and ask the question, am i talking to a human here what is this >> thank you for bringing us these big thoughts forcing us to

think you a lot this morning will.i.am. great to see you. >> thanks. rick santelli standing by in chicago with breaking economic data bringing the numbers to us. >> looking at markets you see interest rates are moving higher one of the reasons -- 187,000, initial jobless claims. that is the lowest level since jan of '23 and harkens back into the '60s unreal we think about these numbers, and if they get must less than 182,000, then we are definitely going back to the '60s so we see how important these numbers are. continuing claims, same scenario whisker over 1.8 million 1 million 806,000 is the smallest of continuing claims going back to october of '23 philly fed minus 10.6. that means 5 minus months in a row. 5 negative signs in a row and 12

of the last 13 months have been negative now, let's look at building, housing starts for the month of december 1 million 460,000. 1 million 460,000. that's a little bit better than we were looking for, and if you consider last month, it was 1 million 525,000. we could see that these numbers have dropped back down last month was an outlier. it was the best level on starts in 1.5 years and we actually saw a single family pop a bit. we know there's been a dearth of building multifamily trying to make some of that up in terms of permits. 1 million 495,000. that follows 1 million 467,000. and that actually is a number, of course, that is a bit higher. it's up nearly 2%. orx"ilrernft atu aer sht break. let's check it out.

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welcome back, everybody. talk about the health of corporate america and its workforce. joining us to do that workdays co-ceo carl eschenbach carl, welcome. >> good to be back here. >> solo this time. >> solo this year. yeah i remember sitting here last year with my co-ceo and founder. and joe was questioning us this co-ceo thing can actually work. >> told you this would happen. >> what was eventually -- >> joined 14 months ago, would do transition in a year and neal move to an exec. chair exactly our plan of record and what we'll do end of this month. a lot of people question the co-ceo thing whether it can, would or not i think it's gone incredibly well in fact, i think we have a blueprint how it should number

that neal and i have a deep trust of one another, different skill sets come from different backgrounds. i hope me joining his co-ceo in the last year freed him up to go focus on what he's best at incredible technical mind. one of the greatest technical minds of our generation and letting me run and operate the company and i think it's worked out well and reflected in business results through the first three quarters of this year going really well. it can work, joe. >> who was with -- remember citigroup? remember that? >> a lot of things -- >> history is littered. >> right back to -- consoles. right? >> yeah. no we actually talked about it at another conference you interviewed neal and i talking how it could or should work and i'm proud to say i think it's worked really well and our workmates accepts me thankful ful for that and neal .

>> we're thankful because we don't have room. >> made room last year. >> got close. >> absolutely. >> and your stock has done incredibly well. almost up 75% over the course of the year what happened? what was pushing things? and what's the next hurdle that you now face >> yeah. i think, you know, thanks to our nearly 19,000 workmates around the world, our partners and customers truly appreciating and seeing value of our platform. really helped our stock grow we've had a very durable and diverse business model, becky. we sell both at a segment level at the largest enterprises and mid-market and then sell across ma multiple verticals and don't have a tenant customer to rely on because we're so broad what we do. last year we launched a number of growth initiatives continuing to push into the new year. in fact, number one focusing on our international growth today we get 25% of our business

outside the u.s. yet it represents more than 50% of our addressable market. >> growth. yeah. >> also investing heavily in our financials platform. people obviously see us as the market leader when it comes to human capital management our financials platform is a major growth engine for us in fact, seeing most customers thinking about how do i deploy both at the same time? call it a full platform sale we think that's another big growth driver. we've oof modified how we partner around the world leverage the ecosystem much more broadly. the market side of the business. lastly, i think the innovation engine at workday is alive and well and helping lead that in our product and technology organization will only continue to fuel our innovation and we have a deep data mode that many others don't have in the enterprise with more than 65 million users on our data platform so i think there's a lot of good reasons, but, really, comes back to workmates around the world

and how they're performing. >> part of what you all do is help with job applications, and there's a lawsuit that has been filed that says basically the a.i. product that you have to help companies sort through lots of applicants coming through has biases and discriminated against this one gentleman who's filed this report, or this lawsuit. he says that it's got biases built in and as a result he can't get past workday, can't get hired? >> we're we're of this lawsuit i can't comment on it obviously but we respectfully disagree we've been doing a.i. more than a decade built it deep into our platform and approaching it in a very responsible way. at this conference between hearing a lot about a.i. and responsible a.i. in the last decade over the last five years workinging with regulators around the world in the eu, u.s. and even the state

level making sure a.i. is implemented in a responsible way. >> let's just talk about it not necessarily in this case but it is a big question raised of all a.i. it can only -- it will have biases based on whoever engineers it. the -- it will be as discriminatory as its programmers were those biases are kind of unavoidable? >> yeah. to a certain extent. i think, you know, the output of your a.i. is only as good as the data you're putting into it and the data model this about workday, our data is highly curated 65 million users on a common platform where we're training our model a.i. ob bots it's secure, protected highly curated and very different than doing a.i. training offed internet. with think we're different how we think about it. >> curious if there are trends on insights seeing now, is thyear anything different

so much access data how people workish are getting hired, when they're leaving, why they're leaving. anything new you're seeing in terms of trend lines >> no. last year i think there was a pullback in hiring you know, because of the uncertainty in the economy. you know, this conference last year all we talked about, recession. hard landing soft landing this year we don't toalk about that as much people are cautiously optimistic seen layoffs but seeing hiring trends continue. >> what about it it -- t & e budgets? going into restaurants cutting down on ubers, things that surprise you when you see where people -- >> i don't think we're seeing different or data tells us differ than we saw last year i think business travel picked up again >> right. >> the hybrid workforce is allowing people to move and have

mobility and seeing things change in that dimension of the business, but overall, andrew, not much changed year over year. people are being very responsible. trying to drive, you know, operating margin expansion and i think the way you do that is by thinking about how you're going to get productivity gains having a platform like workday, focused on employees, trying to get them to be more likely to stay longer, which reduces attrition and drives productivity gains therefore money to invest in the business. that's where we're spending our time focusing. >> carl, thanks for joining us. >> thank you for having me. coming up on "squawk," former house speaker paul ryan will be here to weigh in on former president trump's blowout win in the iowa caucus, and what he sees in new hampshire next week and the conversation that's happening in davos all under a the former president stay tuned you're watching "squawk" and this is cnbc.

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people say maga actually looking at people voting for trump and saying you are like him and, but i don't think they're voting for trump because of his family values take a step back be honest. right about nato right on immigration kind of grew's economy quite china virus >> i don't like how he said things about mexico, i don't like -- but wasn't wrong about critical issues, and that's why they're voting for him it i was, jpmorgan ceo jamie dimon with us yesterday here in davos. former president trump easily won the iowa republican caucus on monday. in the political world, attention shifts to new hampshire with its primary next

tuesday and in what appear es a closer race between trump and former south carolina governor nikki haley. joining us former house speaker paul ryan founder of solar capital vice chairman and tenio. x'ing, whatever we do on twitter, we put it out and that's got about four million views now. >> the jamie quote >> there's something in there for everyone >> all those positions are republican positions, not just donald trump's positions the things jamie just articulated are republican positions, so that's the point >> that's the quandary, paul there are people that agree with republican positions, but the flag-bearer of the republican party right now and the presumptive nominee is donald trump, which some people have a lot of trouble with. and it's -- and you're one of them >> i'm a non-trump republican. but look, let's wait until new

hampshire. let's see. >> i assume that you -- you could write in your -- mrs. ryan. >> i don't think my wife would appreciate that. maybe somebody else. >> i don't know if you think this is right, but it feels like the conventional consensus, wisdom here is that he's going to be the president, not just the nominee, but that he's going to be the president. we had ben smith on earlier saying, if you believe this is, like, consensus is wrong, that davos consensus is contrarian indicator -- >> then go the other direction see what thomas is saying and go the other direction. a lot is going to happen between now and november nothing's linear in politics these days there's zigzag, who knows, is the point. biden is so weak that even donald trump polls ahead of him, but look at nikki haley's polling. she beats him by, like, 12 points in a head-to-head poll, so i would prefer a candidate who i think would be a good president and who i know is going to win, and by the way, give us more seats in congress that's nikki haley obviously, my preferences aren't

bubbling through the republican party right now, but let's just wait and see what happens in new hampshire and see if this inevitably narrative which is coming out of iowa if it sticks past new hampshire, and if nikki haley wins new hampshire, then i think we got a race on our hands. >> you made a lot of sausage, you knew how to legislate, you were speaker of the house. the good news is that we might have the government funded all the way, and it's a leap year. so there's an extra day in february we have another day of a funded government i mean, people are cynical, paul, about doing this again and again and again, aren't they >> i did four or five of these deals, so the appropriations process is broken, and the problem is it takes both parties to fix the appropriations process, and you do not have that you do not have a bipartisan consensus on how to rewrite the 1974 budget act to make appropriations work, so we're stuck with the situation we have today.

mike johnson inherited this problem, and mike johnson is in a tough position he's going to have a tough margin when bill johnson goes. he's down to a one-vote margin they're going to get the government funded. it's going to be ugly, late, but it's going to get done >> i saw a clip of laura ingraham pushing the speaker, saying, i just go off the phone with donald trump, and he very much does not want you to take this deal when these things come through. >> trump wants chaos i think trump thinks chaos helps him, probably, but mike johnson is elect ed speaker of the hous. mike johnson is a decent man, a smart man, good temperament, but he's got dealt a terrible handle >> it only takes one to challenge him. >> when you become speaker of the house, you know you're going to do things that not everybody on your team zbis going to like

mike johnson knows this. >> did the crazy eight -- do they want to do it again are they giving him more rein? >> they just blew through eight people, effectively, so what are they going to do, do it again? i think there's really no stomach for that, other than there may be an entertainer in congress who thinks they can get their 15 minutes of fame that could very well happen. you can't let that run you if you're the speaker of the house. you can't have that in the back of your mind you got to go do your job, get the country moving forward, represent your party and your principles look, he's doing biden a favor, connecting the border to ukraine. i want ukraine funded. i think ukraine will be funded, but we also should secure the border, and biden's not doing it probably because his side and his base doesn't want it mike johnson's helping our president secure the border by getting him to take a border deal, and he actually solves that problem, he's doing biden a big favor, and he should take that >> how can biden not want it

when you see what's happening to some of the -- >> you can't defend the border you cannot defend it >> you can't defend the border policy >> that's right. it's indefensible. i know his politics. >> the border is indefensible and the policy is indefensible >> the border is defendable. i've been down to the border we know what to do you just got to pass laws and do it >> i got a business meets politics question for you with your taneo hat on. you advise business leaders on what they can or should say or think about or strategy or whatnot. jamie dimon comes on our program and says whatever he thinks, and he has -- >> jamie dimon is unique >> he is a very remarkable license to do that, and an authority to do that, given the success that he has had and the tenure and pedigree and the whole, just, the career that he has had. most ceos don't feel that they have that freedom. >> because they don't. >> that's what i was going to ask you. i imagine there's a lot of ceos

who are coming to you, saying, there's a whole bunch of issues here and i'm going to be asked about these things or i need to go out and say this or that. the election's going to come by the way, if we're going to lobby on this issue, that's going to get us behind this person or that person. houf h how do i do it >> we have about 200 of the fortune 500 chairmen and ceos as clients, helping with financial, operational, reputational matters, so this question comes up in almost every conversation i have my basic advice is, stick to your meeting, do your business, and if you're trying to get pulled into these woke wars and you comment on this thing and not that thing, that's a choice. find a cause you care about. find a cause that you and all of your stakeholders that you premeditated that you care about and go focus on that that gets you political capital to sit out these other fights. sit these fights out, stay down

the fairway, make your widgets, don't join politics. >> did you see what alex karp said today alex basically made the argument that, for example, on israel, you can't not have a thought >> i talked to him the other day about it that is different. honestly, i'm talking about transgender issues >> sure, but by the way -- but most of the -- but most of the ceos here don't want to set -- >> that's a clear moral issue. >> sure, but most of the ceos, who i imagine with your clients, are not saying a word about it they're not because they are so fearful. look, i have had the conversations throughout this whole week, and nobody wants to say a word >> i mean, the level of anti-semitism and pro-hamas sentiment is staggering to me. it's chilling. and i think -- >> but do you say to your clients, get a backbone? >> i say the hamas thing is an exception. there are exceptions, and that was a brutal, awful, horrible terrorist attack

israel is absolutely in the right to defend themselves >> they say, if i do that, people are saying, why am i not screaming about islamaphobia >> jamie dimon can do whatever he wants because he's jamie dimon, but you're run of the mill ceo who's two, three, four years into the tenure, they got to watch it because they're going to get sideways from their agenda >> that's what people are, like alex, are so -- >> but alex is -- >> he's cynical that they were willing to weigh in on safe, woke issues, and then when there's a real issue >> this is my point. when it comes to stupid culture war stuff, stay out of it. do your business but when it comes to really clear life -- >> now they're nowhere to be seen >> i'm going to make it difficult, and i think we all felt it or remember, after george floyd was murdered, there were people, employees, african americans, i didn't feel this, but i was aware of it, who felt that this was a life and death issue for them and felt their

company needed to speak out and do more. that's why it's -- whoever the marginalized group is at that moment feels it. it's true. >> i know. but you need to think -- here's what ceos don't do they don't think like politicians. here's what a politician thinks. how does this reverberate around all my constituencies? how does it ping-pong around seven different ways the ceo went to business school and learned about ebitda and revenue growth and two steps down the political chess board, not the seven steps down of a typical politician so, we basically teach them to think like a politician. you better understand what you're going to do when you do this >> paul, we love having you. you are our final guest from our three days of davos coverage >> i feel honored. >> we were going to talk about inflation, i thought, and economics. >> we can do that in new york. we can do that any time. >> now that you have a real job, you can come on any time >> all right, thanks thanks, joe. >> we would love to see you back

in new york to talk about those things paul ryan, thank you very much we appreciate it let's take a very quick look at the markets before we hand things is over you're going to see that we had been in negative territory for the dow. still there, down about 80 points that comes after three days of declines s&p, up by 12. nasdaq up by 117, and folks, thank you for being with us over these past three days. we will see you monday right now, it's time for "squawk on the street. ♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at post nine of the stock exchange. bulls will get an assist from a high-profile apple upgrade, upbeat guide from taiwan semi. yields bounce as jobless claims hit a 16-month low apple is trying to lift the group as