"squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew is off today. let's look at how things are shaping up you will see green arrows with the u.s. equities this morning dow futures indicated up close to 90 points nasdaq up 100 points s&p indicated up 20. this comes after the second day of declines for the s&p and the dow. the nasdaq was down yesterday. if you have been watching the treasury market, you will see yields lower 4.238% for the ten-year note

cocoa prices were at an all-time high yesterday maybe for the easter bunnies the chocolate bunnies? >> easter. a lot of foods food stuff a lot of things. >> up 241% over the last year. those are big increases. in baltimore, really troubling news francis scott key bridge partially collapsed after it was struck by a large container ship a baltimore police spokesperson said people doing overnight work on the bridge may have fallen into the water authorities said they are trying to rescue at least seven people. it is unclear how many very manies wvery long vehicles weree

bridge when it collapsed the cargo ship appeared to be damaged. the 695 bridge was opened in 1977 as the crossing of the baltimore harbor over the river. we will bring you the update from baltimore in the next hour. i'm not sure i have been through there so many times, but usually through the tunnel if you come through, i think, the center of the state or away from -- i think i may have bone it it is a very long bridge >> you can see major portions of it collapsed this is a very long bridge it is a major thoroughfare from new york to washington it is one of the ways around the inner harbor so you don't get stuck in that traffic. you can take the tunnel or this bridge it is a very, very heavily traveled section. >> it was long, but not so high. i remember not liking the guardrails

i remember -- >> parts where it is high and parts where it was low this is the part that goes up and over >> we don't know at this point when you've got something that heavy and another structure i am moveable, something has to give. this is the infrastructure project? >> this is a cargo ship. >> think about when that is moving and the amount of weight and momentum and everything. it shouldn't happen. >> serious concerns and questions. this is still an emergency rescue situation they are talking about multiple fatalities with this situation >> if you don't know how many cars are on the bridge. >> or workers on the bridge at any given time >> cars are beneath the surface

then. >> this is still a search and rescue it has been -- this happened after 1:30 a.m it has been hours. there are still efforts to try to figure out what happened here in business news, adam neumann submitted a bid of $500 million to acquire wework out of bankruptcy a source familiar with the matter said the bid could go up $900 million neumann was ousted five years ago. he has been trying to find a way back ever since. citigroup says it is in the last stage of the overhaul after shrinking the work force by 5,000 employees since september. in a memo, the ceo told employees that the largest round of staffing moves including reassignments and departures would be communicated to

employees from monday to thursday of this week. shares of citi are up more than 40% in the last year florida has passed a new law that bans people under the age of 14 years of having social media accounts regardless of parental content that requires social media companies to close accounts believed to be used by minors under 14 minors who are 14 or 15 could have an account with parental consent. >> i don't know how you enforce that >> if there are -- it will never been 100%. if there are i implications i don't know what the consequences are >> could you click yes, i'm 14 >> if you have a repercussions for that, you could require

proof of identification for that it would be tough. because it is just a state, i could see the social media companies going around and trying to go to the federal level. maybe this would be something that would actually inspire some federal laws to get their arms around the problem that is social media >> are all kids 10 to 12 on social media >> my son's not. >> i think will are a lot. >> it is a way to feel like a social pracariah. and tesla must require self driving demo before handing cars over this is a hard requirement that would slow the deliveries. the instructed employees will show the system with a short test drive that tesla describes as full self drieving

it is a $12,000 add on feature for the company. i can't imagine. you need to know a few things about it these cars are amazing any new car and i never do everything. >> i was trying to figure out this morning how to shutoff the information fed back about your driving habits i figured it out this morning. >> that's happening this. >> yeah. i never knew it was doing it this morning, it came up and turned on. it is a quick message when you are trying to back out of the driveway it said the information is transmitted from the car last week, we talked about the story in the wall street journal that laid out how they are tracking that information and selling it to insurance companies. i spent time how to figure out how to shut it off main menu and info and the

transmitting information section and turn it off. >> the center vents blowing air and bottom and top and which ones i want on i'm still working on that. when you buy a car, they spend a half hour with you programming the radio. >> buying a car takes too long. >> i'm in a hurry, too for the next few years, i hope do know how things work. mcdonald's is planning to sell krispy kreme doughnuts by the end of the 2026. the rollout will begin the second half of the year. krispy kreme will double the distribution to satisfy the partnership. it is an expansion of the test partnership that started a year and a half ago take a look at the shares quickly. you see mcdonald's is not doing much crkrispy kreme is under 15 >> can we go back to cocoa for a moment dave is giving me an update. it has been rising all year because rising temperatures and

weather conditions have drstresd crops in west africa which produces 70% of the global supply not a demand thing >> ever since i was a kid and you get the hollow ones, raren't you disappointed >> no, they're my favorites. they're thin to try to bite, you break your te teeth. >> i used to be disappointed you crush it and it breaks solid ones for me, i like the solid. when we come back, the eu looking to take on more mega cap tech companies we will look at the impact on stocks with gene munster a programming note for you james gorman will be on "squawk on the street" at 10:30 a.m. he will talk about the proxy

battle and the successful successor for bob iger "squawk box" will be right back. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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her uncle's unhappy. i'm sensing an founderlying issue.d. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock.

so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for. welcome back blackrock ceo larry fink is out with the letter to the shareholders he warns the global retirement

crisis is coming as people live longer and stable anocial secur stressed one solution is get more people investing in the capital markets. he writes, no other force can lift people from poverty or improve quality of life quite like capitalism. this is one of the personal letters. the most personal letter i have seen from larry fink he starts out talking about when his mom passed away in 2012, he and his brother had to go through the bills because his dad started declining quickly.zn retirement because his mom was a professor at caltech his dad owned a shoe store between the two of them, they never made more than $150,000 up to date current finances, if you were to look at that in today's dollars. his dad was a pretty

enthusiastic investor. he points out, larry does, you are looking at populations aging in japan for the first time last year with 10% of their population exceeded 80 years old. the oldest country in the world. if you look at japan, they have most of the savings in the bank. if you look at india, people have savings in gold money in the bank and money in gold don't do a lot. if you invest money, took $1,000 and invested it, it would be $20,000 by the time he was ready to retire. capital maurktrkets are the wayo help people invest we need to do more to educate people on these matters. >> my parents grew up in more difficult times. they didn't spend money. my father never made more than -- he was an auditor for an insurance company. i think the most he made was $35,000 a year

what they were able -- i was an only child and what they were able to save for me was mind blowing. hundreds of thousands of dollars. i remember growing up and we would not get a lincoln or cadillac we would get a mid-level car never get what they wanted because they wanted to provide for me >> that is larry's message we need to educate people of what can happen. telling them to go and invest in retirement or 401(k) as pension plans have pulled back telling people to do it themselves is saying drop pieces from the engine and assemble it yourself he points to the ozempic trend and wegovy and helping people live longer, but not teaching them how to take care of

them themselves that is a valid point. >> i can remember talking to larry five years ago this was his passion >> longer than that. this is something he has been concerned about for a long time. it takes new prominence and urgency to it when you realize what we were talking about last week with social security is set to run out of funding by 2034 when you have the demographics working against it, he makes the point that when social security started out, and ties it back to the hungarian -- 150 years ago when the ideas first came up it was a great idea to retire at 65 half of the people who paid in by that time would have already died this was a different way of running insurance programs the demographics change all of that when you have people living easily until 90 and beyond we need to rethink how we do all of this. they are valid points.

a better way of long-term thinking and tackle some of the problems hopefully this is a message that catches on and people can wrap their brains around. >> you will not have your money in the bank or money market will not do it. it helps running the world's largest asset management firm. you can feel good about your role in life >> that is the letter from larry fink the european union launching an investigation into apple and meta and alphabet with the tech legislation. other companies could be next. joining us right now is gene munster. gene, we had 24 hours to think through what this will mean. where are you thinking the longer-term implications are going to be? >> becky, the headline, to jump

to it, this is noise very similar to what is going to the department of justice in the u.s. they have similar story linelin but it is effectively noise. i want to frame what is going on here when it comes to the digital markets act, the eu's goal is to level the playing field. with meta, this is related to data and the subscription business doesn't provide enough of a free offering for consumers who don't want to share data >> okay. let's stop on that for a second. we don't provide free uses for customers who aren't shares data it is an admission that sharing your data is the price of admission, i guess, for getting into some of these things. >> it's a head scratcher to me ultimately, these are businesses and they need to make money.

i'm simply framing the issue with the european union is here. i can understand meta's response will be just that. we have to have a business take the free product and sell the data or pay for it the case of apple and google ttgoogle, it is about choice and the app store and choosing cheaper options of apps off platforms where you don't have to pay apple the take rate. i led with my belief this is all noise. there is going to be a lot of noise around this. look at the intensity level that the eu has approached this and they had to submit, the big three had to submit their resolutions to dma in the middle of march march 1st. they had to have it middle of march. two weeks after that, they already have come out. the eu has come out and said

they are non compliant it will take a year for the eu to actually cross, this ts and dot their is we will continue to hear about regulation i have a strong belief that it really doesn't matter. what ultimately matters is consumers love their products. when they love their products, they will use all three of the companies in the future. >> if the fines, a massive amounts of fines levied on these companies. 10% of the global revenue if the regulators choose to do that even if consumers love it and continue to use it, regulators could have a massive impact on the profitability of the companies. do you change your rating or change your stock price targets on any as a result >> we continue to own google and meta this our titan fund

we continue to believe this is noise and with the fines in perspective, of course, apple makes $100 billion a year. the fine for apple, you do the headline number under $40 billion. a big number google is the most fined company by the eu. biggest fine was 4.5 billion dollars in 2018. we are talking about fines which is higher than what the eu fined in the past. even though they can charge up to 20% of revenue with the e acce accelerator. there is a ton of bark not much bite. this is not u.s. law i'm not an attorney, but i don't think their case will hold merit. i suspect the fines will be record fines and still sub $10 billion for the companies. >> you still own meta and

alphabet you did not mention apple. have you sold out? >> we continue to believe this is a great company to own. we continue to believe that they will do some profound things in a.i. it is just a risk/reward it is specifically related to the march quarter. what caught my eye last week wasn't everything that was going on with the doj, but with tim cook's visit to chinwhchina. some say it was to prop up the sagging isiphone sales some are saying it is the political fallout. there will be retaliation from china we are starting to see that i think there is a question that we have just in terms of how this near term plays out long term, this company has the pole position related to what they will do and we will hear more on that in june i like to see how this march quarter plays out.

>> you sold it it's not in the fund >> we have different funds it has a different fund. currently, we do not own it. we continue to believe strongly and look for opportunities to get back involved. >> you said currently we don't own it >> that's correct. >> when did you sell it? >> top of my head, i don't remember we have multiple funds and we can move in and out of the funds. i don't know the exact timing on it we continue to believe in this longer term. we are navigating the march quarter. i do believe if we look at the picture related to the regulation, i think the conversations will quickly shift to what's going on in the march quarter and with apple, specific to the china sales we want to navigate these near

term >> when would you buy it >> it is more about getting past the shares right now are attractive it is getting past the news cycle and the comments with this area with the weak iphone cycle. for me, i think it is attractive we just look for opportunities after this news is in the stock. >> lower or wondering how low >> yeah. it's actually knowing we think there will be some concern coming into the march quarter. we think the stock can go lower. not significantly lower. >> you are mr. apple what you could have done is a i don't own any apple right now which is different from previous now i'm waiting. the march quarter doesn't look

good it's probably going to go lower and i'll buy it there. that's how i would have started the interview. that could have been the first 15 seconds. >> okay. >> i wasn't sure we are digging into that that's new for me. >> painful to pull your teeth. we didn't give you novocaine. >> that's okay >> we appreciate you coming on and talking about it >> i just feel -- >> if you say something bad, you feel the apple music will go away on your phone if you say something bad? >> no, everything will work just great. it is important that we look for the biggest opportunities. we're thrilled we have owned meta over the past year plus those are the upsides we're looking for here. >> will do you us a favor? call us if you buy back in

>> absolutely. i'll be right here >> thank you, gene check this out before we head to break. it was about a week ago. is bitcoin -- that is gold i don't know what is happening inflation is coming down, supposedly, but the fed is coming back. even if it is one cut. gold has been doing nothing but go higher. this was up more .2% there. these are squirrely numbers depending on where you see the asset close. there it is. we were thinking is it going under 60 it was at 61 it had been at 75. back down to where it looked like it was going to go under 60 it didn't. you blink and you see friday and sunday and tuesday from 63,000

and all the way back this morning which is just under $71,000. crazy. coming up, the battle for the future of tennis we will talk about the counteroffer for the future of tennis from saudi arabia "squawk box" is coming right back. gender gaps and the capital industry is massive. women comprise of 11% of investsinging partners female founders were just 2% of capital dollars. over three quarters of all vc dollars go to male-only founding teams. for women's history month, i'm julia boorstin ♪ hello, mia. are you ready to meet your demise? man, we really need to upgrade your trash talk. ♪♪ nice shot... shot... taker.

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the off court battle for the future of tennis continues the proposal for a premier tour is four tournaments and endorsed by usta ceo lou shur has a counteroffer from the commitment from saudi arabia's sovereign wealth fund. joining us is the president and chairman and former tennis pro and executive director of the harlem tennis program. she is at the conference including tennis and pickleball and squash and others.

great to see you, katrina. welcome. >> thank you good morning. >> sounds like fun down there. here's where i'll start, ka katrina. it is under valued that's what we're seeing whether the saudis and maybe that's not great or qatar or maybe some other sovereign wealth funds over there or the premier league and finally recognized that men and women's tennis is under valued i think this has to be welcome to some extent although there is the saudi investment and maybe it comes from the premier and this other over >> tennis is at the height right now where the men and women have been talking for years perhaps about joining forces doing more joint tournaments and many tournaments have joined over the years what you mentioned with lou and

the dpgrand slams and wta and a talking about doing more together the offers coming in from the uae or at least talking about raising the value of sport and professional tennis. i'm not sure where it will end up, but at least they're talking about more investment in the professional tour and raising the bar. these players deserve to make more money they are putting it out there week in and week out we will see where it's going to go. >> would you have a problem if it ended up being the saudis, katrina? >> for me, understanding the rules they have, there has to be a lot of parameters in place if it actually ends up over there you know, it is about pro protection it is about women's rights for

me it is about making sure that things are in place. i think as far as the wta is concerned, if it is the wta tour over there, the wta has always been about change and making a difference if there is somebody that can make change, it is the wta if it is the collective effort of all of the tours and grand slams going in and making a difference and making a change, tennis has been that sport for equality particularly with the grand slams with equal prize money hopefully those talks are in place. >> that goes way back to billie jean i remember when that was happening in real terms. i was young. >> that's been about prize money. now we are talking about human rights we will see if they can raise the bar. >> the overhang from 9/11. just like with liv golf, katrina.

tell us what you arie doing down there. this is the first time you have had? >> it is about the racketx conference tennis, racketball, pickleball, p paddle, squash i'll speak at 10:00 a.m. at miami beach convention center. they got me out on the pickleball court to hit around a bit. i'm here to listen to all of the amazing people and specialists in all of the sports they have a lot of vendors here talking about and selling so many amazing and different ideas and equipment for their sport. it's been really great and active with activity going on and great speakers a lot of energy. it's warranted a lot of special people here and i'm thrilled to be part of it.

>> i'm glad now i know there is a paddle and padel. >> you talk about the padel with the glass walls and short court. the winter sport with the screen and cage >> i know that one >> i try to pronounce it differently so the people understand one is more of a summer sport. >> thank you >> i want to work on a quieter for the pickleball courts. they are loud. >> yeah, yeah. >> quieter paddle. >> ckatrina, thank you have fun i wish i could go down when we come back, low cost air carrier breeze announcing expansion with several new routes the company's ceo david neelman will join us with phil lebeau. we'll be right back.

recapping shocking breaking news from overnight in baltimore. the francis scott key bridge partially collapsed after it was struck by a large container ship there is video of that bridge

going down authorities say two people have been removed from the water. one in serious condition they are looking for upwards of seven people they say there is an active fuel spill from the vessel. the shipping giant maersk chartered the container ship carrying the customer cargo. it was operated by a charter company called snynergy group ad the flag from singapore and headed to sri lanka. >> if you watch it, it is going toward the bridge and it looks like it is losing power. the lights go out. it gets close to the abutment and it goes on for a second and goes out again you see thick smoke. there was something wrong with the cargo ship itself. then it was almost past it, but like the back of it swayed into the abutment and just like a

house of cards the way it came down >> it was just after 1:30 in the morning. >> that might be the good news. >> there were workers on the bridge. >> there is no good news, but if it had been rush hour. >> still an active search taking place. there were vehicles on the bridge we're not sure how many. active rescue and search is still taking place switching gears. low cost air carrier breeze is expanding with new routes. phil lebeau is here with the special guest. phil is right here. >> good to be with you let's bring in david neeleman who is the founder of breeze airways. david, you are announcing a number of things this morning. let's start off with the news about adding more routes you are now north of 56 if i'm not mistaken with destinations including dallas which is where you will fly into. what are you seeing with the growth out there not just for breeze, but overall with people

looking to book flights right now? >> it's dallas and pensacola and ba bangor, maine and lancaster, pennsylvania 56 new routes. we are seeing some great demand. when we had the pull back turing covid, a lot of the cities like the ones we're announcing today, they lost service. we are filling that gap. we have non-stop competition customers love flying us. are fo to dallas. a lot of kids from the university are flying. it is serving a great need. >> you are moving to profitability three and a half years after you started with the first flights. you are getting to a point where

it is no longer a niche airline in a few markets you are starting to gain extraction w traction. with that, comes consolidation, somebody looking at you guys, or going public what are your thoughts >> we are not three years old yest yet and it has been a challenge out of covid one of the things we expect to be is profitable this year and next quarter and expect to be profitable this month. one of the things to become profitable is they launch their own credit card. this is a first time anyone has seen this thing. this is our credit card. if you think why would anyone want another credit card in their wallet 11 of our 56 cities has more destinations than any other airline. important cities charleston, norfolk, richmond,

places like providence, rhode island and hartford, connecticut. people really want to have options. they want to go nonstop. as far as going public and consolidation, there is always rumors out there the justice department made it clear they don't want to see more mergers that's not really something we're looking at right now we are talking care of our customers and having great people serving nice people serving our customers and seriously nice we're really thrilled with our airline and how it's going and the customers love flying us. >> david, you ordered more a-220s airbus has not been hit with the same number of issues, nowhere close to what we see with boeing, but it is a stretched 134 supply chain are you getting supply from

airbus >> we are. we are getting the delivery. over one delivery a month. we're up to our 24th 220 as of next week. we will be at 34 by the end of the year and 50 by the end of next year. you know, we're getting them obviously, the engine issues are also issues. we're working through that with pratt and we have plenty of spares the operations is running great. when you combine the credit card and the advantages to it that our customers will have, you know, it is a really good day for us. >> david, thank you very much. co-branded credit card david joining us from brazil as breeze airways continues to expand, guys these niche airlines, under served cities have businesses

there. what are the biggest cities and what is the service to the big cities you know, you don't think about the fact there are a lot of people who want to go into charleston or norfolk or other cities breeze is making that work >> you have ever tried to get to those cities >> i'm thankful we have the smaller airlines here. smaller and efficient and a-220 is perfect. >> what happened when the cities were served and the companies were bought up now the regulators will not allow deals like that to happen again. >> well, that's true keep in mind, he has a long track record of taking companies public or consolidating. i would not be surprised somewhere down the road whenth atmosphere is right that we see him do something like that bigger with breeze. >> connecting flights on a pain. they're horrible. >> they are. >> just getting on the regular flight on time and off time is bad enough then 40 minutes. terrible >> for us flying in from

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a federal judge dismissed a lawsuit by x, twitter, against a research group that accused the platform of proliferation of hate speech, alleging the group prepares its research using flawed methodologies and the judge wrote that the case was an attempt to punish the group's

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shares of take-two interactive fell yesterday on fears of another delay of the video game production started to fall behind and could miss its 2025

release window the shares this morning down by just 12 cents. the francis scott key bridge in baltimore collapsed after being hit by a cargo ship. we will bring you a live update from baltimore plus, is america sliding towards chinese-style capitalism with washington picking winners in the name of national security "squawk box" is coming right back the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star! be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart! ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim:

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when you realize you can give your people everything, and more. thank you very much. [applause] ask, "now what?" here's what. you go with prudential to protect, empower and grow. with everything you need to deliver, you guessed it... more. one more thing... who's your rock? learn more at prudential.com collapse in baltimore after being struck by a cargo ship we will have the latest update on the developing story. boeing's management shake-up could change the face of the aerospace giant. a look at what the shake-up means for the company amid the 737 crisis is the u.s. heading towards

chinese-style capitalism the second hour of "squawk box" begins right now ♪ ♪ good morning, everybody. welcome back to "squawk box" right here on cnbc we are live from the markets in times square you will see green arrows, and the nasdaq right now is indicated up triple digits, and the dow is just behind that up by 98 points if you have been watching the treasury market, at least right now the 10-year is at 4.23 bitcoin has been a little higher

this morning, back above 70,000, in fact, about 71,000 at this point. >> yesterday and today is what -- because it doesn't show how much it has really gone up in the last 36 hours >> nobody can tell >> yeah. >> breaking news overnight in baltimore, the francis scott key bridge partially collapsed, and it's a big partial if you see the videos, after it was struck by a large container trip. two people have been removed from the water, one in serious condition, and they are looking upwards of seven people, and the shipping giant maresk said they were being operated by the synergy group, and we will have a live update from the area in a bit. and then larry fink is

warning a retirement crisis is coming as people live longer and programs like social security is stressed the solution is to get more people to invest more assets in markets. he writes, no other force can lift more people from poverty or improve quality of life quite like capitalism. we spoke about this in the last hour, and he talks about when his mom passed away in 2012, and his father quickly declined after that, and he and his brother had to go through the financing and they were surprised how his mom and dad were able to save, and they probably never made more than $150,000 between them, and they were still able to manage saving a lot of money, and they

invested >> entitlements and what we do in the next ten years is important, but this would take some of the ease off and he long has been an advocate of us getting it together, and robert johnson wants to be able to have traveling retirements accounts, and lot of people worried about what we are seeing happen before our eyes, the aging population and people don't have any money in the bank >> if you do have money in the bank, it's not earning as much as it could be markets over a long period of time, and markets can be risky, and over time it can grow and go along with these

things >> start early >> 10% of japan's population is 80 years old or older, and that's a pretty significant -- >> yeah. >> it's happening in most countries around the world, most developed nations around the world. >> the boomer generation is huge it's huge. you know, it's going to happen everywhere it's a human condition, and we are going to watch it play out in realtime and it would be nice -- we're trying and doing everything we can, but we have to fix some of this, and there's no political wheel to touch medicare, medicaid or social security >> i can't remember the last time you were on, but we had a lot of data points and fed speak, and a lot of inflation

numbers and ratcheted back how many cuts we were going to get, and how are you feeling about the prospects of the stocks and bonds for the rest of the year >> yeah, and good morning, joe, and i am feeling good pwtd prospects for stocks, and last time i was on with you was in december, and we talked about the great year being an opportunity for investors and the broadening out, and we have been seeing the broadening out, and you have sectors like energy and finances and industrials that are starting to participate more and more in the rally feel good about that despite the near-term overbought conditions we have had since december, and despite us hitting new record highs, i think stocks do have staying power. i think the big developer in the last few months has been not only do we have the prospect of the fed cutting the interest

rate, but we have growth surprising to the upside and is remarkably resilient that's why stocks have been in a sweet spot, because of rate cuts and revenue and margins are supported by the better than average economic data. >> it's the opposite of what we were worried about it's the greatest situation you could have stagflation is the worst, where you have high inflation and stagnant growth, but if you strong growth and declining inflation, we should not be surprised. can you explain gold's break out? >> yeah, i think there's a number of reasons for that first of all, if the fed actually does cut interest rates then the time of high real interest rates that the investors have been enjoying might be behind us, and that's

why investors are turning to gold and bit ccoin that's one point we know that things are not calm in places around the world, and once again i think that's why investors are seeking out some of the havens from geopolitical instability and that's why you are seeing some of the upside move in gold and bitcoin as well >> if we don't have inflation under control, that could be why gold is moving, too, all the debt overhang, the interest payments that we're facing, and you'd like to bring rates down so the debt service is better, but a lot of times if you have a lot of debt inflation helps what you are paying back is not as much as you borrowed policymakers and central bankers

have a lot to deal with, and it's a difficult period, i would think, for them. >> look, they do have a lot to deal with. first of all, i want to make two points on that first of all, with core pc expected at 2.8%, and that's to be reported on friday, and that gives a lot of wiggle room for the fed to cut interest rates, and while there may be a concern that inflation remains cyclical at some levels and that gives monetary policymakers wiggle room but there's a concern that is the $26 trillion government debt that needs to be refinanced over the coming years and is being refinanced at much higher interest rates we just had an update from the congressional budget office about the unsustainable

trajectory of the government debt, and we were being asked how concerned should we be about the debt, and you don't have a concern if the interest rates are at zero, but if they are up at 4%, that's a mountain of debt to be refinanced, and as a nation and government we need to raise revenues and cut expenses, but the key thing is we need to have the willingness to fix that before the markets start to push us in that direction >> yeah, the tech trade is tired or not at this point >> well, near term, right, if you were to look at the overbought conditions, we have been there since december. i am still a big tech bull, and artificial intelligence, if you take a step back and think about the massive amount of data that

we have in the world today and we are not doing anything with, and google was analyzing 1% of the data we have today, and we can't possibly analyze the rest of it, and when i look at it from that perspective, it's a trade that is not tired. the other thing, joe, that is notable, we had updates from nvidia and broadcom and microsoft and a few others, and hyper scalers are right now hyper focused on the entire datacenter, and you need to compute, and some of the chips and some of the storage and memory and so forth, so what is interesting to me is i don't

think that that tech trade is tired but i think the ai trade is broadening out and it's a tide that is lifting a lot of boats. >> you don't have to pick the ai winners because almost all of technology could benefit theoretically from ai. >> yeah, that's why you stick with them. >> thanks. all the way back in december is it march? appears while. she would only be on like three or four times a year then? >> yeah. >> we need to check in >> yeah. when we come back, a live report from baltimore on the bridge collapse. later, if america sliding towards chinese-style

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a major bridge in baltimore collapsed after being struck by a cargo ship, and nbc's tom costello joins us now with the latest good morning >> reporter: joe, this is a major, major disaster here in the baltimore area this is the francis scott key bridge let me show you where we are and then we will show the video. this is the road that goes up to the francis scott key bridge, and you can see the bridge goes up, if you will, at an angle and that's it. that's the end of the bridge look to the right and you will see cargo is stacked on top of a container ship and that's the ship that hit the bridge take a look at the video itself of the actual incident, just a phenomenal, terrible incident, and a vessel hit the bridge and

took it all out. the support structure collapsed and when it did the entire bridge, then, went down. the fire department in the last few minutes said they believe seven people were onboard or on top of that bridge, i should say, and went into the water two people were recovered. one of them is in critical condition at a local trauma center everybody onboard the ship is okay, including both pilots and the crew the teams here on the ground, fire department and coast guard have not gotten on to the ship because they want to do a full assessment to see how sea worthy it is. they do not believe there's anybody from the ship in the water and they do not believe there's any pollution in the water. nonetheless, this vessel has in some way either lost its ability to navigate or made a

significant navigational error hitting the bridge, a critical bridge in the nation's most busiest port, and you likely to see significant traffic today, and the port itself likely to be dealing with huge logistical challenges in terms of the ship traffic and cargo traffic and what it can and cannot do, and 695 is closed in and around baltimore. 895 is open, and 695 is closed this is going to a tremendous logistical mess today. at the moment this is an immediate search and rescue operation from the fire departments from multiple locations, and being in the water, it's about 45 degrees in the water and 32 degrees outside where we are right now, and the university of minnesota duluth

is suggesting you would have about seven minutes in the water before you start to face exhaustion, and maybe you would have an hour in the water if you are lucky and you have a flotation device and some sort of a warm weather -- or cold water gear i should say -- sorry, it's awfully cold out here not long, maybe an hour of survivability in that water temperature, and nonetheless the all out effort continues here to search for survivors >> what about the cars the seven you are talking about, does that include vehicles >> reporter: yeah, the fire department says they believe there are cars in the water. they already have sonar imagery suggesting there are cars in the water. it's not clear how many people were in cars that went in the water. it's not clear whether there

were construction workers on the bridge that went into the water. in total they believe seven people are missing at one point we heard 20 people, and now we are hearing seven people from the fire chief the problem is, as you know, it was pitch black out there and they couldn't see a thing, and thankfully the sun is coming up and they are getting a better view of what they are dealing with >> and that may include the people, and it could be the construction workers, and -- the video, it was early, and we have no idea and it looks like the lights went out in the cargo ship and the power went off and it lost the ability to navigate. i don't know if you have seen that >> reporter: yeah, i saw that, and also it looked like there were smoke coming off the top of the ship we're all getting -- you know, it's all from a very long

distance, of course, and not the greatest cameras that we are getting that vantage point we have a lot of questions -- we will have a lot of questions for the ntsb as well as for the local responding jurisdictions, coast guard and fire departments. at the moment, right now, at this very moment, this is an all-out search and rescue effort they will try and dissect what went wrong the francis scott key bridge, i think it's about a 55-year-old bridge this is a major artery here in the baltimore area, and so it's just stunning, joe, i will tell you, the locals are stunned that you would have, first of all, that a single ship would hit that support structure, and second of all, the bridge would be so vulnerable that it would be taken out and then crumble like that in the water >> this is becky more on that being such an important artery, and i was

reading this and i don't know if you will know this off the top of your head, the trucks carrying dangerous materials is not allowed to go in the tunnels, so the truck traffic will be in a huge snarl because of this. >> reporter: yeah, i went through 895 to get here, and 695 is closed. i drove up at 3:30 in the morning, and it was a lot faster in a moment we are going into rush hour, and it's going to be a mess up and around baltimore, and because that bridge completely and fully collapsed, it is not going to be a quick fix at this point. >> it could be years, tom, couldn't it? at least months and months >> reporter: yeah, i think you are absolutely right listen, i am no bridge expert. the other question here will be who was piloting the ship at the

time you know, when you bring a major ship into any of america's biggest ports, the captain on the ship has to stand aside while a local pilot boards the ship to navigate into the port the question is going to be who was piloting that ship at 1:30 in the morning as i mentioned, this is a singapore flagged vessel who was violeting that vessel at 1:30 in the morning? did the ship lose power and then it was uncontrollable and it crashed into the pylon we don't know the answer to that, and as you would expect the focus very much right now is on search and rescue >> tom, thank you. we very much appreciate it obviously a lot of questions still to be answered we will bring you another update in the next hour when we come back, boeing ceo, dave calhoun, announcing he's stepping down in a

management reshuffle as the boeing crisis weighs on the giant. and then paul jacobson joins us for an interview. "squawk box" will be right back. time for today's aflac trivia question. who was the first woman to serve on the supreme court the answer, when "squawk box" returns. e? who pays cash to help close that gap? aflac! oh, aflac! get help with expenses health insurance doesn't cover at aflac.com pictionary?! - so this is pickleball? - pickle! ah, these guys are intense. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement.

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welcome back, everybody. boeing ceo, dave calhoun, will leave the company at the end of the year >> i want somebody that knows how to handle a big, long, long cycle business like ours it's not just the production of the airline. it's the development of the next

airplane our next leader will develop and call out the next airplane, so i would like somebody clearly who has the experience inside our industry >> the chairman of the board and president of boeing commercial airlines are also leaving the aerospace giant as part of the shake-up joining us right now with more on the company's path ahead is paul argenty, he's with dartmouth's school of business last time you were on with us, you said you thought dave calhoun needed to step down. what do you think of the announcement >> yeah, i think it's too little too late in some sense one of the problems i see is that he's not stepping down until the end of the year, and the succession plan is not firmly in place. the obvious person they were thinking about was stephanie pope, and she was the coo and is

now in charge of the commercial business they will have to take forward. the good news is they have to make changes, right? a new board member they will look at for the next ceo, and it doesn't bode well when the current customers don't want to talk to the current ceo, and he will be here until the end of the year, and i am curious why it's taking so long to get this done >> what do you think, if anything, regulators will have to say about this? bow some boeing is not your typical company, and it's relative to our national defense >> yeah, i think a lot of people will be happy with the changes coming, and a lot of people will be frustrated it's not coming sooner, and big questions about who calhoun was talking about,

and there was hope stephanie pope would be that person. she was the cfo and is now running businesses and has experience, but is she that person that can take 170,000 employees and a company that is in free fall in one of our country's most important assets forward, it will be a tall task for anybody stepping into that job. >> what does the next ceo need >> needs to be a great manager the problems are systemic and rooted deeply in the company's culture, and a cfo shows they are much more customer oriented and quality oriented, and i think they need to find somebody fairly quickly to get the job done i am surprised that calhoun is

taking so long as you know, he had a long runway, and they extended the retirement age for him and he didn't plan to leave, and it seems like he's leaving, screaming and kicking out of the office >> we all go back to the tylenol scare, and we look at some of the legendary ceos and how they handle things, and i don't think there's anything that compares to this, the long-range expertise in the near-term things you need to do, and long-term seems much more complex, and it would take a lot more than recalling the tylenol, and that was over in a month and this is not going to be over for five years >> yeah, and it was done in a different time, joe, when you could take a month to get the job done now people want answers very, very quickly and they want to know exactly what you are going to do to solve the problems.

you are right. this could be the most daunting management task we have seen i guess coming back from the financial crisis and some of the magic people like jamie dimon gave us, but this is a much more complicated situation, and you are talking about trying to develop future products and you have an organization that needs to be completely rethought in terms of the top management team as well as the board all of those people have been there from the very beginning, going back five years and through all the crashes. a lot of house cleaning to do and a lot to make up for in terms of time, and obviously it's not a job that a lot of people would be able to do or be excited about doing. >> professor, thank you for being with us this morning >> thank you, becky. up next, is america sliding towards a chinese-style

capitalism greg ip of the "wall street journal" will be here to discuss. "squawk box" will be right back. at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley.

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the results of cnbc's all-america survey are out and steve liesman joins us with the highlights once, tell everyone, these are across the country a bunch of economists >> don't you want to make the joke, joe? >> no, i'm not going to do it. i want to know exactly who are these people >> 1,001 people across the country, all makes and models and all races and everything president biden has pulled just about even with former president trump with the survey, and even while trump holds a commanding lead among voters as which candidate is seen as best in key economic issues. 45% picking biden, and 46% pick

trump, and that's a 3.1% margin, so technically it was a dead heat biden saw improvements among those with a college degree, and trump saw his big advantage within a high school education increase biden saw his overall economic approval ratings climb and overall rate climb as well, and it's up from 35 to 39 on the economy. biden has terrible approval numbers on foreign policy, just 30%, and immigration and border security, just 39% and that's over on the right side of your screen there he's benefiting from somewhat better views on the economy.

that's up from 19 in december. those saying fair to poor down to 75 from 80. those who are optimistic, up 26 points from the last quarter pessimistic now and for the future, 54%, and down from 66% >> that's a big swing in the quarter. >> it's a pretty big swing in the quarter. we have been tracking very, very modest bumps going along here's where it gets interesting. better numbers for biden on approval, and better numbers on the economy. look here, first look at the top issues, top issues judged by respondents. inflation, 81% health care, 77. who is best for the middle class, 76% who is best for it trump has a 27-point lead on who is best on inflation biden, a 19-point lead on health

care, and who best for the middle class, trump has a five-point lead. who is best for the overall economy, trump has a 30-point lead and about 30 points when it comes to crime what is interesting is both are republican and democratic pollsters and say the 39% approval for biden might be enough to get him elected, and both points to the fact this is about an election that nobody seems to have won. they are 45-46, right in the middle other polls have shown something of improved strength for biden but doesn't get past trump at this point >> 39, historically, if it was not terrible now, the 39 wouldn't do it >> well, what we did not measure yet, and there are a series -- >> did you say 1,001 >> yeah --

>> did somebody say, please, please, let me in? >> it's notthat way. it's so difficult, joe the price of the polling is quad -- it's like please answer our calls, and we identify ourselves and try to do it the right way. >> i never answer any of these >> thank you, becky. >> i couldn't answer your poll anyway it would be a conflict >> probably not. >> the 39%, what we don't know, remember, trump had a cap, and -- >> the red one >> literally and figuratively, yeah, you are right. >> you mean a ceiling? >> yes, and he could not get above that i don't know if that's the case here the real issue and we will talk about this today, among the undecided, african americans are

a larger percentage than the rest of the population as well as they normally are, and the other thing is latinos first of all, they give biden a 9-point advantage, and he won the 2020 election 28 points plus on the latino side and we asked latinos who is better on the x issue, and they go back and forth. >> what happens with a third candidate? >> we don't know yet we -- probably in the next poll, we are partnering with the nbc network, and they will throw in kennedy. >> you must have been shocked when you saw that 30 and 28 number >> yeah, on the immigration -- >> no, 30 overall on economy -- >> and the 28 on crime >> yeah, the plus 30

>> yeah, given -- still, nostalgia about the trump economy compared to where we are is bizarre, and it has to do with inflation >> that's a big part of it i don't know what trump has said that would be the thing he would do in the face of inflation. voters decided the cure for inflation is not biden i think that's one part of it. and then maybe there's a sense that trump might spent less. in other data we have, better on the federal deficit and on taxes, and that might also be seen as why trump is better. bi bi biden erred terribly on the inflation reduction act. >> yeah, gas, it's at a 1.80 >> austerity --

>> austerity is not the word >> nobody wants to talk about it interesting poll, huh, joe >> pretty good -- >> got a couple more coming up >> pretty, pretty, pretty good >> thanks. when we come back, the message from disney to wall street, and the battle overboard seats as we head towards the company's annual shareholder meeting. "squawk box" will be right back.

we're helping those clients go deep on their products, and also reach across into retail for the customer experience, and really reaching across into technology for the services they are going to put around it, and even into insurance and baking for how they are going to support the financial transactions and ongoing life. >> how do transactions put that into practice? >> you have to build your ecosystem. this is about getting those people you are going to partner with build insights into value that unlocks for the customer, and that's about being true to what creates a loyal and

delighted experience for the customer most importantly, you have to stay true to your strategic agenda, what makes you profitable and relevant. >> thank you for sharing your expertise. >> thank you our next guest compares the current u.s. business climate to china's, and is not doing this as a joke but is actually taking a look at this and he has things he sites like the acquisition over u.s. steel and the ban on tiktok is driven by national security concerns, and i would say not as much as national security concerns as much as national interest and profits.

and joining us, the deputy economics editor, greg ip. you are looking at the $8 billion we have given recently to intel, and your bigger point is companies and board rooms have to think more and more about politics before making any decisions? >> yeah, the embrace of individuals, subsidies for electric cars or whatever or all the national security stuff related to china, and business decisions have a political element which means if you are in the boardroom of one of the companies whether it's tiktok or u.s. steel or whatever, you have to evaluate the political environment in everything you do you might say what else are we going to do? china took the world down this path, and you can't stand bypassively while china exploits

our openness, and it bothered me last week, it looks like republicans decided to vote on tiktok, it could be about how donald trump feels about facebook than national security risks, and the same with u.s. steel, what are the impact on pennsylvania >> how we feel about israel is how the left flank on president biden's re-election, and we could throw israel under the bus to get a few more votes, and that's pretty bad. >> yeah, and nvidia, he was asked he had operations in israel, and he said yeah, we have a lot of people on the west bank and in israel and they are currently important to the product set, but those are the

questions ceos increasingly have to deal with, and you step wrong and you will have to pay the price. disney is the same, gone on the wrong side of desantis and he made them pay dearly >> i think you are right to point out that national interests could be twisted to whatever the person in charge sees as their own interests. national security is an issue i think we should be putting before profits, and national interest, that is determined by whoever is in charge, and that's a very different issue >> i think it would be helpful to have essentially the guidelines of what is driving our decisions to be as transparent as possible. we had a committee screening for investment and it was a compact group and didn't look at

anything, and we have them looking at a few more things, and like subsidy decisions, and it hands the public more pressure points. the burden is on the companies to do the right thing by the shareholders and products pap company like boeing, and they used to make great commercial airlines but seems to have lost its way and it's hard to escape the conclusion that might have been on how they cultivated their biggest customer, like the pentagon, and the real burden is on the folks running the companies to stay focussed on making great products rather than trying to please who is in the white house at that particular moment. >> greg, you did mention just industrial policy, and some of it is security related i guess we need to onshore all of these important industries. we don't want to be left out in the cold, but some of it is not. some of it is -- you mentioned,

ev subsidies you could connect the dots to national security way down the road, but a lot of it is the government deciding which way the economy should go, who the winners and losers should be it has nothing to do with national security, and we are just drifting that way, the ira. >> yeah, the industrial policy is that you have market failures when things like national security come along, and sometimes you get the impression, and this administration defines market failure so broadly, and absence of onsite child care, market failure, and suddenly that becomes a reason to pile on other sorts of parameters when you are dealing with business. you look at the ev and the chips on semiconductors, and you see there's a lot of progressive priorities you can have a positive or negative opinion about the priorities, and they get in the way of trying to meet the central goal of the programs which is to build up indigenous

capacity in those areas, and if you are thinking of doing business with uncle sam in these areas, you have to evaluate how much do we want to get onboard >> greg, a really thoughtful piece on this. we appreciate your time this go on things. so thank you very much >> all right thanks for having me >> good to see you overnight in baltimore, the francis scott key bridge partially collapsed after it was struck by a large container ship you're looking at some live pictures this morning with the sun up, as well as the actual collapse of that bridge on the right hand side. we'll bring you an update from that carrierarea in just a bit "squawk box" will be right back. . and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal,

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light she had partner's cofounder. let's start there, if you want, rich, and you can just give me your primer on how to run a successful media company from here on out, because i'm glad i don't have to think about these things >> joe, that's actually a brilliant place to start, honestly because the challenge right now facing disney is that they're trying to do many things at the same time. you know, obviously, i think we've talked about on cnbc many times, disney's content is struggling, whether it's marvel, lucas, pixar, all of the major content engines of the walt disney company that were incredible for years have certainly been struggling over the last few years, and i think that's been iger's number one priority but as you know, you don't just turn content on a dime, it takes time if you look at animation, obviously, your parent company, universal, has been crushing it

in animation, far more so than disney so this is a time thing for disney it's just, you know, there's no quick fix to content but at the same time they're trying to fix content joe, they're also trying to build a streaming service for entertainment. you know, they've just combined, if you look, disney plus has a new logo they've combined the disney colors and hulu colors it's this bluish green as they combine those two services to compete in entertainment and at the same time, thinking about the cnbc documentary from the other day on espn, they're also trying to figure out the future of espn and how they navigate from linear tv over to digital, which is not very easy for a business and so, my point, joe, is they're trying to do a lot of things at the same time, rather than sort of focusing on one thing and really nailing it. and i think that's the greatest challenge disney has and the disney board has >> still effects from the strike i'm trying to figure out what it

is the content -- it's not a wasteland, really. just to quote dickens, best of times, worst of times. people want content more than ever before. the economy is pretty good they've got money to pay for content. why is just changing the distribution business model, why is that -- why are we having such trouble making any money doing it i just don't understand. it should be the best times and the worst -- it is still the strike >> the strike certainly plays a role in why the movie pipeline and even some of the tv pipeline is a little weak right now there's no doubt about it. but, joe, i think you have to look a little bit more internally at these companies. they're struggling they can't withstand the losses that they've been taking look at -- look what's happened to the stocks across this universe you know, look at wdb, look at

paramount. it's been a disastrous last six months all of these companies as they strive to get to break-even. and break-even is not usually a goal the goal is usually to make real money. to get to break-even, they're scaling back their spending on program, spending back their marketing of new programming, and it shows there's no doubt about it when you look at these services, more and more they're relying on shows that air on linear and digital. look at a show like show gunn, that's on ftx, but also on hulu. you can see that same phenomenon plague out an i.d. show is right now number one on max so sort of the special exclusive content for streaming is really getting pressure and i think that's part of the reason why subscriber growth is slowing. and it's just -- it points out i think what you're hitting at, which is making this transition from an incredible business, where everybody paid for every channel, to a streaming business

where every day, you can scchooe to click on or off, subscribe or unsubscribe, is a dramatic different business and i think that plays back to the whole disney debate around activism and what's happening with the board, is what happens with secession the number one disney has to figure out over the next three year is bob iger can't stay forever. i know he's been there a long time now and came back, but they need to figure out a new ceo >> yep, we're playing it out "the gentlemen," that's a good one. a programming note, new disney board member james gorman will be on "squawk on the street" in the 10:00 a.m. hour to tk out the proxy battle and the search for a successor for bob iger "squawk box" is coming right back the awar d-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization.

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check out our best offers. designed just for your business. like free devices and more. red hot deals act fast. breaking news, a major bridge in baltimore collapsing after it was hit by a container ship two people have been pulled from the water, but authorities are looking for more on the markets, the futures are pointing to a higher opening on wall street. three days remain in march, and the major averages are all on pace for some gains. and will it be a wework redo for adam neumann we're told the company's founder is bidding to get his old company back details ahead as the final hour of "squawk box" begins right now.

good morning, everybody, and welcome to squa"squawk box" rigt here on cnbc we're live from the nasdaq market site in times square. i'm becky quick along with joe kernan andrew is off today. we've been watching what's been happening on this tuesday morning. yesterday was the second down day in a row for the dow and s&p 500. nasdaq broke a five-day winning streak, but this morning you do see some green arrows. nasdaq is indicated up triple digits at this point dow is up by 75, the s&p is up by 21. and treasury yields have been roughly about where we've seen them the last few days the ten-year is at 4.24. the 2-year is 2.49 the francis scott key bridge in baltimore partially collapsed after it was struck by a large container ship eamon javers is there with the latest >> reporter: an absolutely surreal scene here at the port

of baltimore this morning. i can tell you, i was coming into the area just after sunrise this morning, and this bridge is visible normally for miles around, skand just about two mis away, you can see the claollapsd bridge, the two points of traffic on either side where the highway had gone up to the bridge and this enormous gap in the middle of the bridge, visible in the water below, where the highway would have been from, as i say, miles around this is the port of baltimore, joe. it's a major east coast hub of traffic. more than 800,000 automobiles came into this port in 2023. that was the 13th year that this has been the leading port for automobiles on the east coast of the united states. so, an enormous, enormous facility just over to my left here, as we're coming in. acres and acres of new cars arriving so you can imagine the scale of the interruption to commerce

that will take place here. in addition, of course, to the is very human tragedy that happened here this morning this is still, authorities say, an active search and rescue scene, but we are now some six hours after the incident itself. so authorities will be giving more information at 9:30 a.m., and we'll get the latest from them in terms of what they think they're looking at here in terms of the human toll today. obviously, a tragedy for the city of baltimore, joe this is the highway that runs over the francis scott key bridge behind me is 695. that's a major regional artery in terms of traffic in and out and in the surrounding area of baltimore, that's going to be massively impacted the i-95 itself, it will not necessarily be, but the tunnels in baltimore will be impacted, as well. clearly, traffic coming into the port will be impacted for some unknown period of time, joe. the bridge span that is down in the water here just behind me, bottle necks the port itself

so any traffic coming into the port of baltimore will be interrupted by this, including the cruise lines carnival and the other cruise lines sail out of this port as well impacts across the board in terms of commerce, tourism, regional traffic, and of course, the human tragedy that we may be dealing with here this morning, joe, as authorities still trying to get their arms around exactly how many are missing and how many are unaccounted for back over to you >> obviously, that's -- we're early here, but that's what we're thinking about, the human toll but we can't help of think of the -- becky pointed out, that trucks aren't allowed to use -- some trucks with hazardous materials aren't allowed to use the tunnels, they'll have to use the bridge so they'll have to go around, and the bottleneck in the shipping waterway itself, eamon, there's things that come out of the port of baltimore. someone said 25% of the coal exports, a lot of it comes out

of baltimore so you've got to think of that as well. and it's not going to be a week, two weeks, a month we're talking, could be -- >> could be years. i think i read this morning on the way up here, that they began building this bridge back in 1972, it was completed in 1977, this is a multi-year process to build these types of bridges and then zwjust the planning an all the permitting and everything else is years and years in this day and age. and of course, dealing with the wreckage here. of course, you've got the scene immediately to figure out what happened here this morning there's going to be an entire process of investigation, then a process of cleanup, then a process of reconstruction. so you're talking about a long, long time. and the scale of this port, joe, i can't begin to emphasize just how many acres and acres of cars here, but also acres and acres of containers. the shipping containers just stacked two, three, four high going back a mile from here.

this port is enormous. the amount of commerce that comes through here is tremendous all of that will be interrupted for an unknown period of time. the economic impact clearly is going to be significant. and you can imagine all of the logistics companies right now trying to figure out their workarounds, starting today, for the next undetermined period of time, possibly years, joe. >> you know, the only thing i'll say with that, eamon, this is a large stretch of bridge, but it's a small section of a very long bridge. i think the bridge is more than 1.6 miles. there's got to be a lot of questions, as we were talking with tom costello earlier, just around vulnerability the idea that one ship could have that much impact on that stretch of it. but this is a small section of a very long bridge >> reporter: yeah, absolutely. and you look at what happened this morning, if you've seen some of the video of the actual bridge strike this morning, it's just horrific, becky, as you see that there do to appear to have been some vehicles on the bridge

as it went down, authorities said this morning that they were able to rescue one person from the water. that person refused treatment. so, somebody was able to survive this, get into the water on this very, very cold day out here in baltimore, and walk away without even being treated at the hospital that is remarkable itself. but the scale of what happened here will take people some time to get their arms around >> eamon, thanks and tom costello, we've got our own man, eamon javers there. they're both, i guess, tom, nbc and eamon with cnbc. th thanks larry fink out with his annual letter to shareholders this morning. among the headlines this morning, he warns that a global retirement crisis is coming as people live longer and safety nets like social security are stressed one of the solutions is trying to get more people to invest more of their assets in capital markets. he writes in part, no other

force can lift more people from poverty or improve quality of life quite like capitalism he points to aging demographics, not just here, but around the globe as a great thing that people are living longer, but sets up this idea that we need to educate people in how to be able to pay for themselves in those longer years and talks about the changes in social security as demographics play a real large part in that insurance sort of coverage people living until they're 65, but living until they're 90 and on >> first off, mccormack, shares moving higher after earnings the spice and seasonings company reaffirmed its full-year guidance, up almost 6% the ceo says the fundamentals of

the business are strong and expects to see sales acceleration throughout the year shares of mccormack up almost 6% also looking at u.p.s. shares this morning they're moving higher after releasing fiscal year 2026 targets ahead of their investor day. shares are up 3.5% for this year, the revenue aspects between 92 and 94.5 billion, a new note from bernstein says the targets are heavily dependent on a strong domestic business. during investor day, ubs also expected to lay out its strategy among recent acquisitions and give the view on the macro picture. ceo carol tome will be live on "the exchange" at 1:00 p.m shares of u.p.s. up just about 3.5% okay, what goes with the golden arches? apparently it's krispy kreme shares are up more than 21%, spiking on the news that mcdonald's will sell original glass chocolate ice with

sprinkles and chocolate cream filled nationwide in 2026. some stores are already selling. this deal is expected to double distribution for krispy kreme. the doughnuts will be available all cdonald's up fractionally on that news. >> part of the move for mcdonald's for healthier fare. >> salads and doughnuts. >> go along -- >> they tried the yogurt and like fruit -- >> well, they also sell coffee they sell a lot of coffee. >> but then they said, scratch that, what about krispy kreme dou doughnuts? and everybody noted. >> what would you rather have, parfait or a krispy kreme doughnut >> french fries. >> take a guess. >> french fries. when you said, what goes with the golden arches, all i thought was french fries >> my favorite thing there >> not alone >> frank, thank you. for more on the equity and fixed income markets, we want to bring in aox ana, thank you for

being here you have a interesting view of the equity markets and fixed income the what do you see happening with the stock market, as we hear from the fed, rate cuts are likely, we don't know when >> it's really interesting >> as a credit watcher and someone who watches, certainly when you look at equities through the prism of the rate cuts that they're likely pricing in, as well as many other metrics, they definitely seem to be running quite frothy. the fed is allowing this by essentially letting the market and the economy live in a 3% inflation world, while talking about getting to target and talking about rates, but really if i'm jerome powell, what is

the impetus for me to do anything right now the economy is doing fine, unemployment is below what the fed considers to be neutral. the inflation rate is above. even in their longer-term projections, their target, and the economy does not seem to be restricted by these rates in spite of what he said in the press conference, which was kind of perplexing, the realities that the economy continues to track strongly it was really interesting, because the projections of the fed for 2024 in terms of growth and inflation have gone up, but they're still anticipating three cuts the projections for '25 and '26 in terms of growth and inflation are unchanged, but they're expecting less cuts. at least, that's kind of their official guidance. and i think that's really interesting and fascinating. i think in reality -- >> you think it's not real you think those cuts are going to go away >> i don't see the impetus for him to do anything we were here maybe six months ago. i was talking to you and i said, look, in the absence of anything breaking down, the fed is not doing anything and that was when january cuts

were priced in, march cuts were priced in, september cuts were priced in. i said, look, nothing's going to happen there's nothing wrong right now with clipping a very healthy coupon at the front end of the curve while also looking for opportunities, which do exist, and we are taking advantage of them, because you can absolutely earn more than cash. you don't have to sit in cash. but in the absence of anything breaking down, it's really hard to see why they would do anything here. >> if the market has already priced these rate cuts in and the fed does nothing, does it create a problem or is it just kind of weaning the markets off of this idea and letting them get to the point where they realize, okay, the economy is in great shape, we don't need to cut, and that's the best-case scenario >> i think it creates a problem for fixed income investors, perhaps less for equity investors, because i think we've also seen the focus come away a little bit from the rate cuts, although they are certainly part of the conversation in equities and more towards earnings. and earnings have been strong and constructive that is the tail wind for equities i think for fixed income

investors, the passage of time will continue to spell disappointment, because our ten-year is still very much priced for a 2% inflation world. if you think of the ten-year as growth plus inflation, it is not reflecting where growth and inflation is today as well as where the fed is guiding it will be and the fed is this neutral rate, fly out 2.6%, it's really hard for me to see how or why they landed on this number, even from a longer term standpoint, if you look, if we pick up our eyes and look over the horizon, right, and you were talking about this earlier, we have a demographic crisis here, and we have an aging crisis we have a lot more defense spending we have a lot more spending on the energy transition. we have dezblooiblgs what -- which one of these things is ultimately disinflationary? it's really hard to see. >> although a lot of those things are dependent on lower interest rates to be able to finance. >> they are. so i think what we're going to see is more fiscal spending. and perhaps that is what's guiding how to be throwing out

these ideas around rates being low. but i will say that even though the absolute amount of government debt and the fiscal deficits are tremendous, more than we've ever had, in terms of net interest expense, as a percent of gdp, we're still below, about half a percentage point below where we peaked in the early '90s or before that during the last inflation in the early 'o80s. and i don't know if that 3.25% expense is a percent of gdp is a red line or not, but we're not there yet. there's definitely more room to run, and the fiscal, you know, impulse to spend will continue >> ox ana, thank you >> thank you >> and coming up, a conversation you don't want to miss with general motors cfo, paul jacobson we'll hear all about the company's ev strategy and production the race to build plug-in hybridanmus d ch more. stay tuned you're watching "squawk box" on cnbc amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen.

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. bank of america's global auto summit is today is that today? where the focus will be on hybrids, evs and more. our next guest is one of the key attendees and joins our own phil lebeau right now

hey, phil. >> hey, joe. we have a chance to talk with paul yay cobbson, before you go over to the bank of america conference, let me ask you, what's your perspective in terms of when you look at narcotic right now, particularly march sales, best we've seen since before the chip crisis >> good morning, phil, and thanks for having us on. we're really excited about how the year has started we had a little bit of choppiness in january, february came back really strong, and march is looking really strong as well for us >> the industry incentives have gone up, but our industries have n not. >> we had a number of vehicles that we produced that weren't eligible for the ria tax credit and we stood up for our customers and said we're going to give you that 7,7,500.

we've seen incentives tick up a little bit and have seen them come back down, because we are producing vehicles that are qualifying, because when you look a all the other incentives, we've seen them come down a little bit >> roughly in that 50/50 level >> speaking of evs, where are you in terms of the ramp-up in battery cells, battery packs, as well as evs. >> we're making really good progress on that we're in the early days of accelerating up. we've seen a couple good numbers from lyric as we continue to work on that production, we're well on track for 200 to 300 evs >> people are saying, if you're going to compete, this is where you have to show it. >> it will be the most affordable ev out there and

we're really excited about it. >> we expect to see that start in the second quarter. >> we expect to come very, very soon with that product >> hybrids have become red hot, and i know mary mentioned that you guys will start developing the hybrid silverado >> we're trying to make sure that as we navigate the path to an all-electric future and implying, we're meeting it where it is. and customer response picking up for that, a solution to help bridge between ice and ev. we're working on that. we'll be more information to come >> but you're behind the eight ball on that area right now? >> we're adjusting to where the customer is, i would say because we have been really focused on the platform solution, that's where most of our capital has come that's helping us to ramp up evs and make sure that we can meet the customer across a wide

portfolio of options at the high end and affordable end, as well. we're making progress and we'll get there with plug-in hybrids >> big concern in the industry right now is china, and its exporting of vehicles priced well below the competition you are also exporting out of china as well into mexico. how concerned are you about the chinese automakers as they continue to spread around the world and pump these lower priced vehicles into markets m >> we have to maintain our competitiveness around the world and we meet regularly, but we have to make sure we get our cost down where we can >> paul jacobson, cfo, general motors joining us here at their midtown headquarters before they head over to the bank of america conference guys, back to you. >> phil, thank you very much

phil lebeau, when we come back, breaking economic data we're going to get a new look at durable goods orders in just a few minutes. and we are told adam neumann is looking to get wework back, the details straight ahead on atth you're watching "squawk box" and this is cnbc

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up next, breaking economic data february durable goods are next. "squawk box" will be right bk.ac

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welcome back rick santelli standing by. what's happening right now, breaking economic data hey, rick. >> yeah, broken good orders. these are preliminary, joe in a couple of weeks, they'll change into a very volatile series, but do recall, last month, minus 6.2 on the headline that was the worst going back to april of 2020, which was covid now, if you look prior to covid, you would have to go all the way back to july of 2017 to find a bigger negative number and did we reverse it? indeed, we have! up 1.4%. better than the number we were expecting. 1.4% would be the best, well, only since november when it was up 5.4 now, let's get into the

nitty-gritty here, shall we? strip out transportation it moves a bit lower so transportation was a booster in this case, which may not be the case moving forward, considering some of the issues with boeing. up half of 1%, up half of 1%, and that follows minus 0.4 that gets upgraded by only minus 0.3. up a whopping 0.7% that is a very solid number. that's the best number since november but november up 0.9% of 1% was the best since march of 22 these are pretty loofty numbers. here's the rub what we gain in the preliminary fed, we lose in the rearview mirror last month unchanged in this category moves to down 0.4%. minus 0.4%, that doesn't instill a lot of confidence. that's the weakest level going all the way back to '22.

i missed one philly fed non-manufacturing this one's interesting it isn't necessarily the top tier, but many people pay close attention to this. and consider, this is now the 16th of 17 months where it's down, minus 18.3 that's now three in a row, every number, january, feb, now march, are negative minus 18.3 that is not a good number. how far back do we have to go? we have to go back to april of '23 when it was down 18.9. the aftermath of this, markets really haven't moved much. we were at 459 in a the two-year, we remain there. that's a little bit distorted. that's minus 4 basis points. we had a two-year auction yesterday, so you have to contemplate the role today we have a five-year auction, another record-sized offering by, at $67 billion. ten-year note yields right now hovering at 423, where they were before the number. that's down a couple of basis points the news continues to point to

the fact that, you know, are we going to have a liz trust moment in the u.s., with all of this debt and all of this issuance. we're going to pay close attention. we're going to be on top of that auk auction today, joe, see what happens. back to you. >> rick, stay with us. steve liesman joins us now with more you're back. >> not a day goes by that i don't read some analysis of incredulity about the size of the auctions and bonds and treasuries that we're selling. i completely appreciate ruick's concern here that could there be a skip in the matrix and all of a sudden it doesn't work you know, it seems -- i don't know if rick is still there. it is remarkable that we're selling this number, this amount of bonds every day, but nobody believes in it, and i will say, rick, that we need to go on the record, you've been on the record, i want to be on the record as well saying, unless there's a sense that we're on a

path of sanity, when it comes to the amount of -- people will buy them with the belief that something is going to get better in the future, but right now, there is no particular belief out there of any coming improvement. and that's allthe government has to do. and it's not doing even that >> steve, this is, this is by far. i've been doing this, been in the markets since 1979 listen, this is by far the scariest thing ever, because, you know, you look at where stocks are, we're toying with 40,000 on the dow. we're carrying all of this debt. if there is a liz trust moment, i'm looking at the camera. it's not going to be pretty. it will be very ugly i'm not saying it's going to happen, but the fact is that we have 537 people involved in this government and none of them are man or woman enough to really take a stand here. because if we wait until something happens, which is the way we seem to do everything, in

this condition, waiting until something happens will be game, set, almost match in my opinion. >> there's no canary in the coalmine the coal mine just kind of collapses is the way it kind of works. >> can i just ask what you mean by that? you mean, all of a sudden, nobody would buy -- >> all of a sudden, there's a failure and look, they're taking elm down and everybody day, rick comes on and gives them a "c" or a "d," and i think it's an "a" or a "b," because it happened i mean, my standards are a little lower than risk's i'm not saying rick's wrong about this, but he comes on and looks at the issue, the this and that, which is fine, but to me, the fact that they're selling this amount of bonds is incredible >> who's buying them >> first of all, you have institutions around the world, around the country that are able to now buy some of this long debt and match some of their liability in ways they couldn't

before in general, rick, even when the when issued is worse, they seem to do a little bit better on the back end, so it doesn't really amount to a whole lot of losses, at least in the next day >> but it's the only way i can let investors and people know that there's an issue, by looking at it. you're right, even if you see the market rally and rates fall after an auction, it doesn't necessarily mean it was a good auction. it means it wasn't an aha moment to answer becky's question, your question, snit's not necessarila failure. what i worry about, the price of poker is going to escalate very quickly, and the amount of add-on term premium that will be put into this system because of this debt will hurt. and who will it hurt most? it will hurt servicing the debt most because if you think lowering rates now is maybe because the government is worried it can't afford its own debt, just imagine if the long end of the market goes to 6, 7, 8%. then the government's cost is

going to skyrocket >> well, ask yourself the question look at the german two-year versus -- the ten-year versus the american ten year. why are we the center of capital in the world, why do we pay the most for money in the world? >> and it's not because, by the way, our ability to pay. if you look at america in terms of a coverage ratio, if we were a customer, tremendous coverage ratio. it's willingness to pay and it's the trajectory of the debt i have been an optimist on this and it has been right to say the world would not come to an end at previous debt levels. it's today, when i look at it and i do not see relief down the road, when i look at a relatively robust economy, and i see these high deficits, it makes me nervous for what happens if the economy is not this strong, what happens to the debt zpand deficit. >> what do you have to pay at that point >> what happens to people are in need in the event of a downturn?

what is the ability of the government to help them, if we have that kind of downturn >> zero ability. >> complaining about high rates now -- >> and that's the scary part >> it needs to be part of the conversation it shows up in our poll as an issue of import when it comes to the deficit. i'll leave it there, except to say there's a big number here for the second month in a row on computer spending. and i continue to be interested in the extent to which the investment in ai is soaking up investments from other places in the economy. it's just something i'm watching >> okay. >> thank you, rick and thank you, steve let's bring in another voice on the latest data in the overall economy. city economist, veronica clark has been waiting patiently and listening. were you nodding a lot more for rick or steve, would you say? >> i do appreciate the conversation it's a very, you know, tricky topic, of course >> and at this point, as far as the data goes, what the did you make of it today >> yeah, we just got durable

goods order for february, preliminary reading. i mean, strong on the surface, but we did have some big downward revisions to january orders i would say overall, you know, some of the manufacturing data has been a bit mixed we've seen that in the survey data, pmis have been a lot stronger, but ism manufacturing, which is still weaker. honestly, we're seeing that in a lot of the economic data there's just some conflicting stories right now. >> you heard the -- i mean, it is a little bit scary, because i remember 7, 8% easily. and we -- it's easy to say, we'll never get back there, but rates need to stay under control with the amount of money that the united states is trying to float at this point. >> yeah, i mean, we are still running very strong growth on the surface, and that's part of it we certainly were getting more questions on that debt sustainability issue back when ten-year yields were at 5%, as of october we've got fewer questions on it since, but it is definitely an issue in the longer run. and we don't see much

improvement in deficits in the next coming years. >> and are you at 1, 2, 3 cuts, no cuts, a hike? w what are we going to do later this year. >> we're penciling in 125 basis points of cuts from the fed this year i think what we learned last week is that this is a fed that is maybe secretly getting worried about possible weakness in the labor market. they really are understanding that we're getting to that point where there might be this tension between high inflation and not wanting to cause a greater weakening in the economy, and it seems like they're coming out on the side of really wanting to avoid a recession this year. but we have seen signs of a weakening labor market, and that might mean they're more willing to cut >> that's what i was wondering at the same time we, you know, sing the praises of the economy, what do you mean, we've seen some weakness in the labor market enough to get that many cuts you're assuming there's a lag, i guess, from -- >> yeah, yeah, and we're

starting to, you know, really even q4 of last year, we were starting to see the lines that the labor market was weakening you know, things like the hiring rate falling it's taking people longer to find work. we have had an increase in the unemployment rate. it's going from 3.4 to 3.9 the fed went from 4.1 end of this year to 4.0 we're not far from that right now. this could be a fed that's relatively easily surprised by some disappointing labor market data >> very good okay, we'll have to end it there, victoria, thank you thank you. steve's already gone, but thanks, steve. thanks, rick >> i think i'm more interested when steve and rick actually agree with each other than disagree >> no, no. >> if they both see things the same way, you better shut up and listen >> i think the truth somewhere in the middle of where they usually are. >> but when they agree on things -- >> that's true >> it's definitely worth digging

into >> that is fun >> anyway, wework founder adam newman maybe looking to get his old company back a person familiar with the matter tells cnbc neumann has submitted a more than $5 million bid to buy bework out of bankruptcy the bid could grow to more than $9 million depending on the outcome of a due diligence process. at the moment, the source of neumann's funding isn't clear. he was ousted from wework five years ago and the company filed for bankruptcy last year since then, it's been working with advisers to estructure. in a statement, wework says it remains focused on finishing the work it began when they filed for bankruptcy and says it believes it will emerge from chapter 11 protection in the second quarter as what it calls a financially strong and profitable company when we come back, bespoke's paul hickey will join us on the markets and on the current run for the s&p 500. it's doing something right now that it's only done a handful of times in the last 70 years

and a quick programming note jim cramer has an interview with blackrock ceo larry fink that is tonight on m"mad mon" :00 p.m. eastern time. don't miss that. "squawk box" will be right back. to build the electric vehicle of the future, you need partners. mining partners. technology partners. education. supply chain. energy. what if one partner could do it all? that partner is ontario, canada. with all the critical minerals to make electric vehicle batteries. 65,000 stem graduates per year. one of north america's largest i.t. clusters.

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welcome back, everybody. a lawmaker is looking for answers on the inspection of elon musk's neurolink. a member of the house ways and means subcommittee on health has asked the food and drug administration why it did not expect the brain implant company before allowing human testing. reuters reported last month that fda inspectors found problems with record keeping and quality controls for animal experiments at neurolink last june that was less than a month after the start-up said it was cleared to test its brain implants in humans blo bloomenhauer said he was concerned that the agency ignored what he called troubling evidence of animal testing data

that had been raised until at least 2019 breaking news right now on some major credit card companies and a long-running legal saga. kate rooney joins us with more hi, kate >> good morning. visa and mastercard are settling a class action lawsuit that's been going on for decades now. two decades now. is the companies have agreed to lower the rates they charge mixt merchants and agree not to raise those rates for at least five years. interchange is the fee retailer pays when someone swipes a debit card or credit card. it's set by the card companies they're going to give businesses a bit more flexibility when it comes to the terms, including the ability to steer customers to preferred payment methods and will allow surcharging as well the plaintiff's attorney saying in a statement that that will bring $30 billion or so of savings on fees to prmerchants. the settlement is among the largest in antitrust advisory. visa saying that these were

quote meaningful concessions that address true pain points small businesses have identified, while mastercard, for its part, says this agreement brings a closure to a long-standing dispute by delivering substantial certainty and value to business owners the settlement resolves claims going back to 2005, when a group of retailers filed a class action suit, claiming that visa's network rules violate u.s. anti-trust laws the defendants include visa, marri mastercard, and a number of other cards. it's still subject to court approval >> this is a long-running saga we were just looking at the stock prices, maybe we could bring that back up again that shows you right now the street's instant reaction at least to what happens. as kate mentioned, this is still going to be subject to a u.s. court signing off on it. but both of those stocks up about 0.8% maybe tells you a little bit what the market is thinking.

this is knee-jerk reaction and we need to hear more on it kate rooney, thank you very much rn coming up, we'll talk markets. the s&p 500 is up more than 9% in the first quarter three trading sessions are left. and don't miss an exclusive interview with james gorman at 10:00 a.m. eastern he'll be on to address the ongoing proxy battle at sndiey where he's a board member. stay tuned, you're watching "squawk box" on cnbc

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♪ and breaking news. the francis scott key fwlirch baltimore collapsing this morning. after a container ship rammed into it. the incident took place around 1:30 a.m. eastern time when a singapore flagship hit one of the bridge's support structures. as of a news conference last hour, the secretary of the maryland department of transportation said there had been no confirmed fatalities at this point. baltimore fire chief said earlier that two people were pulled from the water. a maryland official said that the fbi was on the scene to investigate if there's any connection to terrorism.

but as of last hour, they had concluded that there wasn't. our next guest tells us it's been more than 100 trading days since the s&p 500 experienced a pullback of 2% or more from a closing high since the early 1950s. that's only happened seven other times. and six months later, the s&p was higher every time, with a meeting gain of about 8% here with us, with more content, paul hickey, co-founder of bespoke investment group it seems like a kind of an indication of momentum, that's hard -- it doesn't dissipate immediately. >> yeah, good morning. joe, so, i think the point of highlighting the metric like that, as well as several others we could cite in that or similar respect is telling us what type of market we're in and these types of patterns typically occur in bull markets. and bull markets are, by

definition, periods of above-average returns. so if you want to get in front of those animal spirits and try and bet against the market you're really going against the grain. and, you know, be my guest if you want to dio that but it's a risky proposition >> seems like a lot of times a little bit of a pullback, builds up skepticism and helps the market advance we haven't had any selloff of any kind, the vix is low, there's no volatility. it's just been a slow, steady rise what do you attribute it to, paul >> well, so, i think we constantly hear about how the fed, you know, the pricing, rate cuts is going further and further out. and how is the market rallying in the face of that. you know, last week, fed meeting, you know, put the nail on the coffin on a may rate cut. and the market had its best week of the year. you got to take a step back and think of yourself, okay, what is this market rallying on.

it's certainly not rate cuts in january, we're pricing in seven rate cuts. and now we're pricing in three rate cuts and the market has done nothing but go up steadily since then you have to think about, we're in a global bull market. we're seeing japan hit record highs. we're seeing europe hit economic highs. economic growth is stable. even the inflation, higher than the fed's target appear stable and that kind of environment -- if you have slightly higher inflation or higher than preferred inflation, the fed has, though, confirmed on the sideline you know, just be careful what you wish for last week, we had the best week of the year, when the fed pushed out rate cuts further. so when that rate cut does come, i mean, they cut rates for a reason as we talked about in the past they usually don't cut rates because things are going great >> paul, has multiples changed

at all what do you have -- where do you have the multiple? and is this advance all been growth in the bottom line? of the company >> well, no, we have seen multiple expansion we've seen about -- you know, the s&p is trading -- depending on what metric you're looking at about 21 times earnings which isn't cheap by any stretch of the imagination. but it comes back to the point, again, that we're in an environment, bull markets you tend to see valuations expand. and there's been a lot of -- you know, we talked about last time, how this rally, if you look -- break out the performance of stocks during this rally, it's all based on -- most of it is based on a.i. and prospects for a.i. companies that have any exposure to a.i. or extend the benefit in any way from a.i. have rallied and it's no surprise that the market, bull market, started within a month of when chatgpt was announced back in late 2022. >> that, and you think that

that's not just a coincidence? >> no, i don't think it's a coincidence. and i think over time, you're going to see -- i mean, we have concerned over inflation you know, automation not just, you know, generative a.i., but automation in general. the enter nation was a deep inflationary force on the economy. i think a.i. and automation is only going to be, you know, multiples greater, in terms of, you know, keeping inflation in check. and we're doing with above-average inflation now. but, you know, the metrics that we see don't point to another wave higher in inflation like we saw in 2021 and in 2022. >> so, you think we do need to see some worry about the economy to get the rate cuts you think that will happen later in the year? >> well, so, i mean, well, think about this, you know, the fed is one of the most apolitical institutions we have right now

and if you look back historically, again, be careful what you wish for, the only time the fed cut rates after may in an election year was 2008. that was 100 basis points -- sun's coming into the window here but it was a 100 basis point cut when the economy was falling apart. so, we're starting to lose that window when the fed could comfortably come in here and cut rates and that would be not seen by a certain side as being a political move, you know, someone -- if you have rate cuts, it's going to be seen as political, coming right up into an election. >> all right you know, apolitical, but then, again, they're human, that your point? >> well, so, i mean, what we see now, looking at the data, do you necessarily need a rate cut at this point the market is telling you that it doesn't necessarily need a rate cut at this point the economy is holding in there.

and inflation, it's higher than the feds target. it's coming -- you know, we're not seeing like real signs of a falloff in economic data here. so, i think the one key to watch going forward would be the upcoming earning season. and how that comes if there's one thing we would be concerned about in the short term it would be the earnings results. last week's results came in and they were pretty mediocre in terms of results and the stock price reaction so, that's the one thing we're, you know, watching here. but that's a vacuum that's not going to be resolved for another two weeks when the companies start reporting. >> okay. all right. paul, we'll end it there we'll see you, thank >> perfect, thanks let's get one more check on the markets before we hand things over to "squawk on the street." you'll see right now that the futures are in the green we've come off the higher levels that we saw earlier in the day maybe cut in half. nasdaq up 67 1/2 points dow down by 40. s&p is up by 12 or 13 points

treasuries have been about where we've been seeing things a week or so. ten-year yielding 426, the two-year at 461, oil prices this morning look like they're slightly higher wti at 8219. folks that does it for us today. make sure you join us right back here tomorrow. see you then, right now it's time for "squawk on the street." ♪ good tuesday morning, welcome to "squawk on the street" i'm carl quintanilla with jim cramer. david faber has the morning off. bulls look to snap a two-day losing streak. healthy mix of ecodata and corporate news, amazon, disney, tesla, u.p.s. and others, blackrock's larry fink, his annual letter to shareholders emphasizing the need to focus on the country's retirement crisis. this major bridge collapse i