with joe kernen. becky quick is off today, but we have mandy drury joining us p. >> and guess what i have here. this is the exact same can that you gave me the last time i was on "squawk box" and you very proudly held it up and he said, look, it's made in australia. upon closer inspection, made in austria. >> thank you for reminding me. >> are you going to drink it? >> absolutely not, no. i'm full of java. >> do you need one? >> what are you saying, i need it? >> no, i know that i need glasses, but why did you think -- you don't know the difference between austria and -- >> no i hadn't drank must have r enough red bull that morning. >> okay. where is the hfr- >> it's austria. >> that don't look might go like australia, kra. sxwh b >> but you wouldn't believe how many people think australia and

austria are the same thing. >> that's what i think happened. >> i didn't drink enough of it and i wasn't thinking clearly as i don't frequently. but -- >> that is red. >> it is red. >> and what did you say to me before we went on air? >> with becky, it's okay. >> with her it is, too, i said you know we have talked on becky in the new york "post," there was a day when it said that women wear red when they're open to -- >> open to what? >> sexual advances. and we have talked to becky about that. we kidded becky about that. oh, handy, do you know what that means. and i told her will, i did remember that. and that's why she wore it. >> that was a joke. >> but she didn't say it was when me or you. i assume that she -- >> how do you knows of for one of you you guys? >> this squawk ward moment has

been brought to you by joe kernen. >> that was that moment was brought to me by me. and it really wasn't. we don't have a mandy awkward moment. >> in squawk ward moment has been brought to you by joe kernen. >> topping our global market headline, spain's foreign minute have i saying they face a crisis of huge proportions after spain's unemployment rate hit its highest level in two decades and s&p announced a two notch downgrade. firm citing worries about the budget deficit and ailing banks. spain's unemployment rate shooting up to 24%. >> insane. >> did we hit that in 1935? that is unbelievable. >> and also the highest level since the early '90s in spain in a that is and one of the worst

jobless p jobless figure in the world. >> i think france is above 10% now. that was in the news today. >> planlg you're passenger youm market, i'd call that a mixed picture. let's take a quick look at where the euro stands right now. buck 32. and we'll have a live report from madrid in just a few moments. in other news today, the bank of japan easing monetary policy today by about banding government bond purchases by 10 trillion yen or about $123.8 billion. the central bank also keeping expectations of more stimulus alive. promised to pursue powerful monetary easing to reach its 1% inflation target. the boj maintaining it key policy rate at a range of 0 to

0.1% as widely expected. >> i think halvthat was seen ac baby accepts. but how many times have they tried to get inflation in the system and how long has it been before they have been able to do that? >> so is that a model for here? >> i was thinking about what our real employment rate and when we talk about perhaps being at 10% -- >> real unemployment rate is 15%, 16%. >> and then i out about the claims number yesterday which wasn't great again and i was checking what the date was today. to see whether next friday is employment friday, which it is. so we will get a -- the last one at 120 was weak and we've had these claims numbers and a lot of conjecture and speculation on this show about whether will this summer swoon, whether we repeat the last couple of years as we've gone in the spring.

>> so what's your prediction? >> i'm not worried about the stock market as much as the overall economy because valuations i don't think are that high. i don't think it's built on fluff at this point. but as i said to you earlier, you and your compatriot, the guy at more beg morgan stanley, we're back to 1400. so you better go back to the drawing board. if guy gets paid -- >> my compatriots? >> your partner in crime, hoping for the -- your co-bearish person -- >> i'm not bearish. i thought it was fascinating. >> you loved that he was -- >> it was interesting. >> you loved this that he said that i was taking -- >> it was an interesting debate. i'm a journalist, i'm a story teller who likes a great debate. >> you do tell some whopper. >> you you are an objective

journalist. >> he is objective. i object to just about everything you say most of the time. >> pretty much. >> a key read on the u.s. economy also morning. we'll get the itd least snapshot of first quarter growth at 8:30 eastern. economists are looking for gchlt dp to come in around 2.5%, that would be down from the pace of the prior quarter. also today consumer sent chlt. we'll s sentiment. but let's check on the markets. according to the imlied open, a little bit softer for the the s&p 500. the dow marginally stronger along with the nasdaq. as for oil, let's check out what crude is up to, sitting at 104.08. brent 119. ten year note, the yield is still below the 2% mark at 1.119. euro-dollar just hitting above the about 1.32 mark.

dollar-yen at 80.67. we were talking about the further easing measures by the boj. and the dollar index is slightly softer at 78 and change. gold is currently at 1654. >> the move yesterday wasn't based on strong economic news. >> the essential if necessary, we stand by. we'll act. >> and then the vix, 16 yesterday. which was below its 50 day average which shows, you know, that correlated with the feeling take maybe we're in another up trend week. we seemed to deal with spain for the past two weeks which gave us trepidation, but how why is that okay again? i don't understand. spain is not fixed. >> a lot of things aren't fixed in europe.

>> but we keep coming back to the notion that they are experts at delays things and kicking it down the road and doing it effectively. >> are we experts at notice delnot delaying things? >> yeah, but we -- you being from us a tree, a what do you -- with that austrian accent. >> i do a mean yodel. leather pants. what do they do if us a tree, a eat chocolate, drink beer? >> a few notable names in earnings central this morning. looking for ford and also a couple of dow components like

perk oig and probl merck and proctor and gom beamb. and jon moeller join us. amazon shares jumping after earns of 28 cents a share. that was better than expectations, but below last year. the bottom line number. but that wasn't what people were talking about. what her talking about was this huge i think 34% rise in revenues. $13 billion for the quarter. as they go beyond just books and dvds and even appliances. like b to b type stuff. >> one stop shop. >> i've told you this every single day that i come home, virtually every day there is an amazon box outside. because the shipping didn't cost anything. >> who is ordering all of this? >> sometimes myself, sometimes my wife.

henry and max, they now who to order. >> only at 15 months. i know they're smart, but they're not -- >> they're smart kids. >> largest internet retailer. building warehouses, acquiring a robotics firm. spending aggressively. also success at selling more digital products through its new kindle fire tablet. jeff made the high school take of coming on here -- >> thanks, jeff. >> he made the about mistake of coming on here one time and whenever he has a big number, we think it's going pretty well, jeff, right? see, i tell jokes. watch this. okay. i got to get this here. baby seal walks into a club. you get that? baby seal walks into a club. it's over.

>> what about a horse walks into a bar. >> one of my favorites. >> oldie but goody. >> and jeff thinks it's fantastic. >> walked into a restaurant and said, hey, can i get table near a wart. >> good sport. >> never came on again. i don't know why. we have to work on him. >> jeff, how much are you worth today? just give us an idea. >> he laughs at this number. >> did you get his permission to play this will? >> no. that's why he hasn't been on since. >> definitely the last time. >> he's done so well, and when we talk about him, we do,s's almost in referential tones. >> i'd argue that he is as close to the next steve jobs that's out there. >> that's what i mean. you go back to pre-1999, how many are still around? and also you have those mug

writers at barons have talked about amazon being a bubble so many times that it's -- they basically single handedly -- >> the question, though, is with all of the money that they're spending and the profit decline, ultimately do they raise prices, ultimately do i become so addicted to prime that they can really jack the rate some the whole issue about even the book selling. these are real issues. >> but they're the same issue that's been years we've heard this again and again and again. >> but there's got to be a initing point tipping point. >> they always exceed their prior levels even though they've been spending this money. they spend is right. if they made a huge screw up, but they haven't. so major butkusing there.

s&p downgrading spain late yesterday. let's head to madrid stock exchange. still investment grade, so let's hope for the best in spain. >> it's just more bad news, though, for the spanish economy. it's been an extremely difficult week. we started out with news that it was in a technical recession. news out from the banking sector this week and i must say, there's a strong perception in international markets that the entire banking sector here is basically about to collapse.you news out from the three major banks suggested that profits are still solid. as we close out the week, the news about the ratings downgrade puts more pressure on spain. enormous tension already in the markets. the ibex has been very negative.

positive, now negative again. so telling you about the volatility out there. but also the latest batch of economic numbers were extremely weak. retail sales falling 3.7 about% year on year. this is consistent with what the bank was saying earlier in the week that demand was shrinking in the first quarter. one thing that stood out to me was that they're still spending out there. people are spending at the shops. so it tells you there is a little bit of black money still in this economy and that the official numbers don't obviously state the exact case. the cpi number inflation, i'm not sure it's even worse talking about that in this type of context, but that's 2% as you'd expect. unemployment rate 24.4%, this tells you the challenge to try to meet its deficit target to reduce the deficit from 8.5% last year to 5.3% will year, that's a huge challenge for the local government to achieve. >> thanks so much. appreciate that report. we'll be keeping an eye on spain, i imagine, for a while.

>> or it will keep an eye on us. >> coming up, the man who runs one pimco fund that's managed outside the firm. but first, some sports news. the nfl draft last night for those of you who were awake or not awake, quarterbacks andrew luck and robert griffin going one and two as expected. and then everybody wanted to it make a trade. there were eight trades involving 12 of the league's 32 teams. minnesota swapped its number three choice for cleveland's number four pick. the browns who also gave up a fourth, fifth and seventh rounder desperately wanted alabama running back trent richardson. vikings still got matt khaleel. and there you have. i should have been watching the draft. >> is there a cnbc stocks draft? >> i did. >> we had 21 stocks.

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good morning. it's friday, yay. almost the weekend, but we still have one more trading day to get through. so let's take a look at the implied open. s&p 500 looking flat, same with the nasdaq. dow jones maybe a marginal implied open to the up side.

making headlines, expedia shares getting a boost. topping earnings and revenues estimates. >> and now to the national weather forecast. scott williams joins us from the weather channel. scott. >> good morning, andrew and everyone. we're keeping tabs on the forecast for the northeast and new england. for today, interior sections, highest elevations, we'll find rain and even wet snow. morning city, windy, 56 degrees for the high today. low 60s toward washington, d.c. moving in to your saturday, upper 50s new york city, we'll find clouds and showers from pittsburgh to the nation's capital during the day on saturday. and then on sunday, a few lingering showers washington, d.c., 64 for the high. upper 50s to near 60 on sunday in new york city.ork for the south, we're looking at warm and muggy conditions. 88 degrees in tallahassee today. a few scattered showers and storms from memphis to atlanta. and then for saturday, temperatures in the 80s, so

looking good, maybe you'll be in new orleans for the jazz and heritage festival. taking place this weekend. mid-80s, sunshine, looking between as well, but warming into the low mints for you by sunday in tallahassee, they'ring 90 by sunday. toward the midwest for today, cincinnati, we're looking at temperatures in the low 60s. strong to severe storms though today into tomorrow across sections of the midwest, but look at the cooler conditions by saturday. mid-40s for highs in will chicago. by sunday, we'll keep scattered showers and thunderstorms in section of the midwest and the ohio river valley with slightly cooler temperatures. of course we're tracking thunderstorm activity across parts of the plains and already the rocky, but impacts for you with thunderstorms for kansas city and st. louis. have a great weekend, guys. >> too cold, scott. too cold. >> sorry. >> don't blame the messenger. april rapidly coming to a close, so where the old saying sell in

may come true? bob arnot joining us. other people call it arno. anyway, chairman of research affiliates which runs the pimco all asset all authority if you said. we had a great first quarter and then we've had some head fakes so far the second quarter. a lot of people come on and say that the highs may have been seen or pretty close to the highs for the year. and we'll muddle around. i don't buy into that. but i don't know anything. what do you think? >> well, firstly, there is pretty serious headwinds coming our way. what we've described as a 3d hurricane, combine enter connectivity between did deficit, debt and denothing grief if i which plays automatic over years if not months or quarters. ultimately the market's

performance probably hinthings bernanke. the big issue is with 2% bond yields and 2% stock yield, why don't people look elsewhere. i think it there are much more interesting opportunities outside of main street of stocked and bonds. >> i take two things from what you said. number one, whether bernanke is able to convince people to keep the put in or not, 2% doesn't seem like it's much of a competing asset for equities. and you said 2% is the yield in the stock market. plenty of blue chips yields 3.5%, 4%, with the likelihood of increased dividends over the next couple years. and that seen tsz like it speaks well for equities. what are you talking about that might be better than equities.

>> emerging market stocks and bonds look to be awfully interesting. they're cheaper than u.s. stocks. a little richer than europe and japan, but what. the growth engine for the world economy in the coming deck and i had will deck add will be the k merging economies of the world. so ferif cheaper and great more growth, that -- >> every single one has different fundamentals. started off this year with a bang, but quite a number of them starting to face their own individual headwinds. so which one in particular would you look at in terms of being interesting? >> i don't drill down to the individual emerging market's economies, although you're right, they're as different from one another assay germany is from japan. but broadly if you look across the emerging economies, the ones that are priced at dividend yields of as you're saying for blue chips, 3% or 4%, the ones

that are priced at 3% or 4% yield and have much better growth prospects than the u.s. would certainly be more interesting long term investments than u.s. stocks. same thing holds true on the bond side. >> but getting back to what you feel about just the s&p this year, i know that may not be something you want to focus on, but have we seen close to the eyes or is it going to be a slow steady move higher for the rest of the year? >> will this is one year where i don't have a strongly held view on u.s. stocks. i do have a cautious view. i think the risk on the down side is much greater than the opportunity on the up side. >> what risks have not been telegraphed ad nauseum on c mnb for the markets? >> the risks are pretty well-known, which is one of the reasons i'm not terribly bearish. but you do have the risk of renewed recession. you do have the near certainty

of the lapsing of the bush tax cuts. do you have the near certainty of another debt limit crisis coming up either just before or just after the election. bithat one thatha thathat that out interesting politically. you have the near necessity of ramping down the deficit fairly quickly starting will year or last. >> those last two things sounded bullish to me. the reason we have the dell ceiling crisis is because you you had some guys elected after obama care that decided we're not going to go for business as usual for just raising this and adding another 5 trillion over the next four years. why isn't that a positive that those guys are holding a line on more spending and more tax increases? >> it's a very important positive in terms of the long term health of the nation and long term health of the economy. it's not a positive for the

stock market. because stimulus flows into the economy, whether it's monetary or miss cal stimulfiscal stimul ultimately through the private sector. the money makes its way this to the private sector and if the private sector isn't inclined to reinvest because of fears about the future, then the money winds up staying in the private sector in the form of increased profits. so a lot of the profit puffery we've seen in the last year or two has been a direct consequence of monetary and fiscal stimulus propping up profits because companies don't want to spend. >> they need to spend and they need to hire and they need to build plants and i guess some of the uncertainty needs to be removed for these corporate planners. we've had that pointed out a lot that -- >> and they're not going to spend in an environment where they don't know what the rules are going to be next year. >> we might get a better idea next year. >> wouldn't that be nice. >> someone once said that's why we have elections.

>> you. >> no, it wasn't. it's the guy who is visiting every college campus taking the 747 to every college campus in the country. >> he needs the youth vote. >> anyway, thanks, rob. sxwh what is he supposed to -- >> you think the student loan issue is governing? he's going to swing state college campuses pushing a -- creating a fight to push -- it's election nearing on the taxpayer dollar. what is he supposed to do? he's supposed to put a budget together, how to deal with viv s vitalments. >> on the issue of the travel budget -- >> i agree with boehner. there's a shock to all our viewers. >> i don't know the answer to this. >> there's no clear law -- >> for get about the law. what do you think the right --

an incumbent president in an election year, how are they supposed to campaign, when do they campaign and if so, how is it supposed to get paid for? and i ask it completely just straight up and down. >> it's not everyone an election year. it's in an election two year. because it started long before we were in the last 12 months. i'd like some governing. i'd like -- the one thing about leadership is that i know it's the other side's fault, but you're still supposed to try to do something. >> i'm asking a different question. >> do you think that the thing that's most front and center right now is student loan interest rates? >> no, but you're purposely trying to -- >> wouldn't you find something else to do right now in. >> it's a distraction. >> and you're purposely trying to distract from the question i'm asking you. >> no i'm not. we went from the the buffett rule which was going to raise $47 billion in ten years --

>> he's been well media trained to say that's an interesting question, but let me tell you something more interesting. >> wait a pints in, we have to -- >> still to come this morning, plenty more debates between joe and andrew. why social gaming company zynga can tell us something about the facebook ipo, but first, attention hockey fans, two new york area teams in the news this morning. the top seeded rangers eliminating ottawa last night. i was in ottawa last week watching the senators and rangers game. meantime, the new jersey devils beat the florida panthers 3-2 in game seven to advance to second round of the eastern conferences playoffs. >> you were off? >> i was off for a a little while.

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markets twists and turns. following oil, president of merck block. dan, i'll start with you. always good to see you. >> they got you up early today. >> i just didn't go to bed. >> good plan. >> oil sitting around 104. seemed to have stalled and yet to me it feels like there are a lot of bearish signals out there. why has it held up so well, is it just iran? >> there have been a lot of bearish signals. we had for example one of the iranian ministers to russia who has been talking about the russian plan and nuclear action and that should have dropped prices. israeli general saying he believes the leadership in iran is not crazy and they also will

pot develop a nuclear weapon. and that should drop prices. we have gas prices at least on the futures market that have on several week. prices are just too strong here. >> where should they be? >> that's really what counts to me, what's going on in the market and how the market price action is actually moving gas prices. gas prices were a big, big issue in february and march when it looked like they were going up a lot higher than they normally do. but what's happened is that peoplegotten -- nothing much has moved and all the bullish points are still on the table. there's still an eu ban going into effect come july. there's still clearly an israeli position that they cannot have a nuclear weapon developed over there p about a

there. and why see prices going down very much from here. in fact every time you see prices drop in to that 115, i'm talking about brent, it seems like a buy. >> where do you think we'll go then? >> just the strength of the market here just looking at it makes me think that there's going to come -- we'll get to a head in this iranian issue somewhere. and i don't believe that they'll back away from the nuclear aspirations. >> people weren't here for our pre-interview conversation. >> good thing, too. >> why do you talk about any fundamentals whatsoever when you think a lot of this is hype from high frequency trades? >> because what happens is that the money that comes in is what affects the market here. so it's not -- so what there is a fundamental me sis that is out there about geopolitical risks that are out there. that drives money. >> and speculators caused all this? >> i hate that word because what will -- >> high frequency traders. >> for you it's the index funds. >> it's investors for the most

part, people, private wealth managers and funds -- >> and you would take them out of the market completely? >> i think there is a bill floating around congress for exactly that purpose. but in a political year, it won't happen. >> about iran's not fixed, where will prices actually be? >> you mean if could you actually take away all of what you're calling the speculative money in oil? >> i'm not calling it that, you're calling it that. >> you use speculative, that's isn't an interesting thing. >> let's not argue semantics. >> if you took investment money out of the system, $40. $40 a barrel. that's my opinion. >> wow. >> when you removed all of the in-veszment money -- look, we're dealing with what is a very huge surplus at least -- >> it's a global marketplace. brent would fall on $40? >> down $40. you would lose $40. >> oh. >> you'd drop to $75, $80 a

barrel on the brent. . >> we'd love to talk all day on this, but we have scott. >> for a man who kdresses like cow, the news over the last week must have been disturbing for you and what happened in the cattle markets. >> what's disturbing is that we randomly test 40,000 of those cows a year and this cow didn't show any signs. we thought we had it fixed from 2006 and we're not feeding cows to cows any more, but we are feeding cows to hogs and chicken and we're feeding hogs and chicken to cows. so what's disconcerting is it was randomly found, it will leak some questions. and the chart just doesn't very good at all. >> what's the trade on live cattle? >> i think they'll hang in the market for the next six months. the mad cow thing will go to the back pages. but if you find something accidentally that will weigh on people's minds. it's such a flammable subject. i lived in the uk over the mad

cow issue they had there. 150 deaths and had to slaughter 180,000 head of cattle. and i can't give blood in this will country because i lived there during that time. so it's such a hot p topic that it will weigh on the market and i can't say pile in there and get long cattle because it will be weighing on people's minds. >> we have chilton coming on. most of you guys in the pits probably aren't excited about a lot of limits on speculation or how many contracts an individual can own, are you? >> depends on how much stock you own on the exchanges that trade those things. it will ultimately start to affect volumes. but at the end of the day, there's an argument to be made that speculators actually have a purpose in the market. they will drive price up when maybe they're 00 low and spur on investment in research and development or drive prices lower when we have an

oversupply. so some arguments can be made economically that they actually serve a very good purpose to the market. and we only really talk about them on the up side. >> and in the oil markets in an election year. i know. >> right. we're not patting the speculators on the back when we have oil at 40 buck as barrel either. >> scott, dan, always great to see you. thank you very much. enjoy your weekend. >> thanks. coming up, want insight into the facebook ipo? how shoot social networking guy and be valued? take a look at zynga. inside line on both companies coming up next. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want

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back on a friday morning. did that for joe. zynga reporting better than expected earnings and revenue. he forgot it was friday. but the company failing to show stronger growth in player numbers. collin sabastian, good morning to you. you look at these earnings. give me your pulse. good, bad, overall? how happy you can be? >> a little bit of both. i think on the positive side, strong sgloet in mobile game which is helps diversification for zynga as well advertising revenue is more than doubled year over year, but as we saw earlier this this week from facebook's revised filing, the social game market may be slowing a bit and zynga appears to be experiencing that trend, as well. >> and so there were lines on facebook, they've tried to do more on zynga, more on android. how successful will they be? >> it's somewhat spec thulative

their own platform. so i think the jury is still out. although we do think that it's certainly a viable strategy for zynga. and facebook is still also a viable strategy. let's keep in mind they have 900 million users. so kocustomer acquisition is ve efficient. the positive side is the growth in mobile game which is really seems to be an inflection point. >> what do zynga's earnings say about the upcoming facebook ipo and its valuation? >> well, i think the key point is zynga's social game business on facebook as i mentioned, we saw a slowing growth there in face back's portion of payments and fee revenue. so we'd like to see at some point a reacceleration in growth and i would imagine that facebook's investors would want clarity on some of those initiatives. >> i just want to pick up on what you were saying about how we're at an inflection point here in terms of their mobile growth. isn't that one of the concerns the fact that a lot of their growth is coming from the mobile

players? because correct me if i'm wrong, but a lot of people who play for example farmville, they're not so likely to go and load up on all the virtual goods like farm equipment or a spade or whatever. is that a concern for you? >> sure. i think monetization of users is still somewhat immature compared to the social game market. so we'll see how that evolves over time. i think there's an opportunity to close that gap. but in general, revenue diversification i think is positive for zynga given their dependence thus far on facebook. >> thank you so much for joining us this morning, getting up early. >> hangthank you. >> coming up, what one casino can tell us about the economy. they made their name in a high profile fight with facebook. now the winklevoss twins have a new venture or two. >> they're pretty cute.

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more bling with grand opening of the golden nugget hotel. joining us chairman and ceo of landry's who owns the cass no good morning, sir. good to see you again. >> how are you? i think what the golden nugget did years ago and the way that really helped las vegas. i don't know whether i'd say it launched a renaissance there, but can it happen in atlantic city? lord knows that would be great for new jersey and the east coast if it did. >> it is. when you think about the location of atlantic city being right here next to philadelphia and new york and 30% of the population of the united states within 500 miles, it's a great opportunity. atlantic city is becoming more

of a resort destination with regatta. there's a lot going on, great convention space and we're happy to be here. >> i don't want to get too sappy here. you're a businessman and you do things for profit, obviously. isn't this an area it should work, areas like atlantic city, galveston, that need fixing up, infrastructure, shovel ready projects, instead of taxes people and having the government basically $0.10 of every dollar gets where it's supposed to go. isn't this the way it's supposed to work? >> absolutely. we did this without any benefits from the state whatsoever. that's the way landry's has always done everything, pure american capitalism, not overtaxing people or undertaxing them. it is the way it's supposed to work. i think this is going to be a great project for atlantic city. >> like i say, i don't want to -- i'm not ready to propose

you for sainthood but atlantic city, i didn't even want to visit there for a while. it's a place if you're used to las vegas, you're in a beautiful casino in las vegas you're in las vegas, if you walk outside atlantic city there's a place you may not want to spend a lot of time. it needs this economic in surgeonence. it's great across the board but driven by a profit incentive. >> it is, joe. i don't want to just plug this property because there's a lot of great properties in atlantic city. but it's on the water, on the marina. when you walk outside, it gives awe feeling like no other property in atlantic city. that's what turns me on about this property, the ability to be here on the water, on the marina. if people start coming to atlantic city and seeing it. you've got to remember, it's the second largest gaming market in the united states over $3 billion. it has changed even in the last 12 months.

you're getting a different demographic. i think you're going to see it on the upswing now. >> can i ask, are people spending in terms of sort of post recovery, are people spending? a lot of things under umbrella, you've got lots and lots of things that weren't all named here. to what extent are people spending now, compared to back in 2007. >> there's no comparison. it's kind of funny. i tell people all time that if you would turn off the television and not watch cnbc and all the other business programs, business is good out there. >> whoa whoa whoa, hold on, i'm taking back everything from you. what was that? >> you were about to get a sainthood. >> wow. whisk that halo away. >> mark twain said a dog won't bite the hand that feeds you. that was cold. >> i know, but it's not you guys, it's your guests that are

doing it. >> okay. then we grill them. >> in the last -- absolutely. in the last 18 months, really, the consumer has totally been spending. with all the different chains and concepts we have across the country, the consumer is spending money. they are spending it in vegas. they are spending it across all price points, even the higher end price point. i think you'll see that in restaurants, retail, cars. people are spending money. the economy is much better than we tend to think it is right now because people are spending money out there. believe me, i see it. >> it's great. >> atlantic city, great history. remember the boardwalk. >> absolutely. >> beautiful place. >> i think the saints would let back in. >> quarterly results for ford, merck, procter & gamble, numbers and instant analysis when "squawk" returns.

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procter & gamble cfo talks quarterly reports and the consumer. day two of the disrupters. >> that's a good idea. >> think somebody will steal it. >> we talk social network and venture capital with kyle and cam rom winklevoss, founders talk about how they are rewiring the world. the second hour of "squawk box" starts now. >> i'm andrew sorkin with joe and mandy drury. here are morning headlines. spain's foreign minister saying the country's sickly economy faces, quote, crisis of huge

proportions. comments after spain's unemployment hit the highest unemployment in two decades. s&p taking a downgrade to debt to trbbb plus. amazon earnings up $0.28 a share. revenues topping expectations. expedia shares getting a boost in after hours trading. online travel agency estimates worldwide hotel revenue increased. look across the board dow open 24 points higher. earnings news, ford, p & g. ford headquarters in dearborn, michigan, with the latest quarterly results. hey, phil. >> reporter: it is a beat for ford coming in at $0.39 a share. the street was expecting the company to earn $0.35 that works

out to $2.3 billion. that's a decline from about 20% from a year ago. that's the underlying story at ford. even though revenue is coming in stronger than expected at 32.4 billion versus estimate of $31.2 billion, look what's happening in ford. that's really what's weighing on the company now. the company reporting in europe a loss of $149 million. that's roughly in line with what the street was expecting but compared with a profit of almost $300 million a year ago. you see that impact in the profit margins. on the auto side profit margin of 6.4%. remember they want up in the 8 to 10%. that's the target for the midyear. north america completely different story. north america profit margin of 11.5% up from 10.3% a year ago. the best pretax quarterly profit for north america since 2000. so clearly the company operating very well in north america. the problem continues to be in

europe and that's dragging on the company. talk with ford ceo in just a few minutes and get a little more color on these numbers. one more note that will get a lot of attention, guys. ford offering 90,000 retirees a lump-sum payment so they can reduce their pension obligation. essentially they want to take the $75 million pension obligation, erase that over time by offering lump sum payments to employees. they don't know how much it's going to cost but it's a big shift in terms of future obligations. back to you. >> thank you. >> i was going to ask phil a question, we've got time. i was going to ask whether or not ford needs to be scared of anyone in particular in the north america market. i ask this, phil, because i was just reading this morning that honda, for example, of japan has come back with a real roar. forecasting a tripling of operating profits.

it's making ground in the u.s., one take more than 10% market share back. is this the kind of company ford should be worried about? >> i think ford is worried about two things, pricing discipline in north america, especially as the japanese automakers come back from what happened with tsunami and earthquake last year and ramp up production and really flood the market if you can use that word in terms of product and pricing. the other issue that ford is looking at is keeping those profit margins as high as possible in north america relies not only on pricing discipline but also production discipline. in the first quarter there are people who say, listen, you should be producing more, red hot, they have been clear in saying we're not going to crank out product to crank out product we're going to make sure we have pricing discipline. yes, they are watching what competitors are doing. right now they are sticking with strategy of being disciplined in pricing. before we got to jon moeller, want to mention merck reported results.

looks like stock might be up a little on this. i think the bottom line number of $0.99, a penny ahead of expectations. then for the year they are affirming -- i love when they do this. >> reaffirming. >> i don't know if they have already affirmed. >> this was the earlier guidance. >> that would only be an affirm until they have affirmed it another time. >> no they are reaffirming -- this is an affirmation. >> did they affirm it once or give it once. >> gave it once. >> this is an affirmation of the first they gave. neither here nor there. 385 to -- 375 to 385 for the year is where they got it and 380 is the estimate. i saw that the revenue is 11.8 billion. that was the estimate, 11.7 for

sales. >> you're the resident scientist, anything interesting? >> i looked -- they talk about singulair, vytorin, guardasill, they have all those numbers. let's get to procter & gamble, which i don't understand at all. i want to see where it's tracesing. third quarter numbers above expectations, 94 versus 93. but i see a couple of different revenue estimates. i've got your revenue number below one of the estimates jon moeller, was it below? >> a good online quarter, organic sales growth 3% that compared to guidance of 3 to 5 so on the low end. within that new price controls in venezuela excluding those who would have been 4% right in the middle of the range.

earnings per share as you mentioned, $0.94 compares to guidance of 89 to 95, consensus of 93. we increased our dividends 7% making this the 122nd consecutive year we've paid it. >> i can't get fourth quarter numbers to match up with expectations. can you tell me -- >> we reduced our fiscal year and fourth quarter guidance slightly to reflect pricing controls in venezuela as well as a couple of adjustments we need to make in a few markets. within that we're anticipating a very strong fourth quarter, organic sales growth of 4 to 5% and accelerating operating profit growth. >> if i were an analyst or shareholder i wouldn't know what to do with the stock. fourth quarter at $0.93. now your adjusted number is 79 to 85. that is below. same for the full year. the full year estimate had been

396, now you're below that by a material amount. should shareholders say they are doing something in venezuela and doing something competitively and it doesn't matter or should they be disappointed. >> i think they should focus on friends, accelerating top line growth, accelerating operating profit growth. in february announced five-year $10 billion cost intervention kicking in next year. we expect even further acceleration as we head forward. i think that should be the focus. >> what was the competitive thing -- that sounded nebulous. what happened in venezuela, number one. what is the competitive thing you said would affect results. >> in venezuela price control regulations that were implemented which require us to take prices down by as much as 25%. >> they haven't actually seized your operations yet in venezuela, have they? is that on the rise? >> absolutely not. we're not concerned about that. even with those price reductions, we are very

attractive business in venezuela. >> what about the competitive thing. >> we've been taking a fair amount of pricing to offset what's been a two-year run in commodities, $3.5 billion of commodities increasing over the last two years which we've been pricing to recover. there's a few countries where competitors for very good reasons choose not to take prices as well. those cases we need to adjust. >> price hikes in certain areas of the world did not stick and other people were able to undercut you. >> we're making adjustments in about -- single digit number in the world. we do business in about 1,000. broadly prices have stuck. as is always the case, we need to be agile and make adjustments as needed. >> do you see those high raw material costs easing over time. >> we're from a planning basis assuming there's going to be continued pressure on raw materials. it's kind of a mixed bag across

commodity exposure. there's some commodities notably natural gas an pulp below a year ago levels but still many like diesel, alcohol, surfactants up double digits from last year. >> some of those prices where you tried to pass price increases along are going to come back down. they didn't stick. >> a few places. we put $3.5 billion in the market this year. this number represents about 1 to $200 million reduction off that. >> that's why you have a good -- you're forecasting good organic sales growth. it's not going to be -- the margins are not going to allow you to pass that earnings per share. >> not immediately in the near term but that's why we've announced this $10 billion cost savings intervention which should provide the ability to offset further increases while investing in innovation and our

shareholders expect and we expect of ourselves. >> jon, good you made your case today to explain the guidance, which is lower. it looks like it's down about $0.87 we'll see what happened. you've got the long-term prospects out. maybe that will help. thanks, jon. >> thank you. if you have any comment or questions about anything you see here on "squawk box" e-mail us, follow us on twitter. coming up next, our disrupter series. it's continuing with the winklevoss twins. they are standing behind you. right behind you. tyler and cameron. provide funding for startups. what they are looking for when it comes to picking the next big thing. "squawk box" is right back.

welcome back to "squawk" friday morning. turned to a former prosecutor in the oklahoma city bombing trial for the investigation of google. beth wilkinson will take over the case, begins monday. s.e.c. looking whether the internet giant, significant

implications for growth am bigs and consumer's use of internet. suggesting her hiring means this is very serious business and google may really be in crosshairs in a different way than they might have been before. we are now on day two of our disruptor summit. they are the next generation of inventors, social media giants and soon to be mega millionaires, even billionaires. we've got a couple already like that at this table. they are literally changing business media and society. joining us now, this is special, cameron and tyler winklevoss principles of winklevoss capital. how are you guys. you've got to get an autograph. >> for my daughter. >> he says it's for his daughter. >> yeah, exactly. >> many people will know you for many reasons. some have seen the movie. they will think of you in that respect. some will know you as potentially creating the seeds of what is today's facebook.

how do you want to do that? >> this was the whole construction of the movie. >> i was trying -- >> i said the seeds -- >> for allegedly planting a couple of minor seeds for that. starting right away with you that you didn't really have much to do with it, right? >> no, no. >> very delicate, andrew. >> i was trying to be delicate. i didn't know how to approach this. >> i didn't think this was the platform. >> so you now have a fund and you're funding a number of different venture projects. tell us about the projects. >> well, we started with we're closing a couple deals hopefully in the month. unfortunately we can't, it's premature to disclose what they are. but we focus on early stage disruptive startups. >> how big the fund, can we ask? >> we don't really have a mandate or size right now. we're kind of just looking at

the investments as they come. each case is different. so we're not sort of setting a certain amount. >> is there a commonality in terms of what you look for in a company? >> yeah. we look at companies that are early stage where we can add both capital and operational experience and sort of make an impact and work with the entrepreneurs to build their team and where we can add value. >> have you a pretty big war chest in the form of facebook stock. is that cash or is that stock you still have at this point? >> we took equity in the company. >> you took equity in the company. right now you're waiting on the ipo like everybody else. >> exactly. >> do you have views on the ipo coming up? >> look, it looks like the interest is extremely strong. it looks like it's going to be a strong offering. >> does $100 billion valuation make sense to you? >> valuation is what people are willing to pay. at this point in time there's a

ton of interest. i wouldn't be surprised if it went off somewhere there. >> what has the experience been like for you giving you notoriety in terms of how many people know about you. when you go in to compete against another venture capitalist trying to invest in a company, how does it work? how does it change the dynamic in a good or bad way? >> so far it's been positive. we do have that experience. we were there at the beginning of the web 2.0. so i think that our dollars -- we bring a little more than dollars to the table. so far we found that's resonated with the companies we've looked at so it's been really positive. >> yoda byte is one of your companies. >> possibly. >> they are friends of ours we're going to have one of the yoda bytes on short ly. you're looking at the cloud. >> ironically our dad started

programming in the '60s. back then a time share, a boeing time share. he started computing in the cloud, then desktop and now back there. i think it's a huge space. >> so many things happening on the cloud. a crowded space. my question is how do you work out what's going to work and what's not? i know yotta byte is doing something different, appealing to enterprise players, private cloud, how do you work out when you have a zillion cloud players. some are pretenders. they just say they are in the cloud but it's different. how do you work out what's going to work out and what's not? >> the key is a unique or innovative approach, shifting the paradigm. with respect to yottabyte they are attacking from the software

standpoint. the closest analogy, microsoft windows is to desktop they are the operating system. they can work with any infrastructure on the back end. they don't really care about that. i think that's part of it. of course the team behind it. there's definitely a lot of players in the space but you've got to look at the people behind the product and who they are, what their background is. do they have a track record of success. >> that's what i was going to ask you about, partnership. partnership is very important given the history of what your partnership had mark may or may not have been like. how do you think of that now in terms of how you select somebody you work with and do you keep tabs on them? >> partnership is obviously huge. rarely is a company, no matter how good the idea is or the concept, rarely is it a smooth linear line from point a to

point b. issues are going to coup. that's -- to come up. if you have the right team, you'll get through. we had an interesting journey the last years. that brought us closer as friends and as colleagues. >> was there a lesson from the whole experience you can apply to what's going on now? >> i think if you're around really good people, you'll get through whatever hurdles come your way. >> you don't want to go into something sort of keeping -- i think you said keeping tabs or looking over your shoulder. if that's your starting point, it's like a marriage. you wouldn't want to get married if you're already keeping tabs on someone, probably not going to end well. >> i thought yoda but it's yotta. it has nothing to do with yoda. >> not that i know of. >> okay. i've heard larry summers side of the story. he says that the words weren't

exact but that the gist of the conversation was pretty true. is that the way you remember it? >> i think we came in -- >> his feet were on the desk. can you out him on that? >> his tenor was very -- >> unpresidential. >> smug. >> first time he's ever been smug. >> we came in looking to reconcile what was a -- looked to be a breach of the student handbook with regards to the fact as students we can't plagiarize on a paper. we want to reconcile while the university didn't want to get involved. we didn't expect him to do anything but more of a mentorship advice kind of thing. long and short he said go to the courts and that's what we did. >> would he have been like that to anyone that came in, do you think? >> there's a certain level of consistency with what happened. >> the other thing is you

have -- he's wearing a sweater, which i think now maybe you weren't totally ridiculous wearing that thing. why does it look so different -- >> that's his look. >> he's a disruptor, i'm disrupting. >> who is copying who? >> did he see his sweater the day he wore it? >> i must have. i'm up every morning at 7:00 a.m. >> my last question, have you seen -- you guys now are pop culture. the simpsons, did you see that? marge beat you guys. you're pop culture. the flip side, any publicity is good? >> a lot of it was out of our hands. we didn't choose to make a movie. we started out to make a website and it's something that spiraled way out of anybody's

imagination. >> have you ever run into mark since all of this? >> we have not. >> in a car. >> i think we -- >> run over mark. >> if we're known it's hopefully for actions as opposed to being known. we're proud with the way we've conducted ourselves the last seven, eight years and we look forward to the next chapter. >> i'm curious, would you ever invest in a company that uses facebook as a platform? i assume a love, hate -- >> you guys are still -- >> you must have a love-hate relationship with facebook, you want them to succeed because you own the stock but there's an underlying frustration about the success. >> it's not just that we're owners or stakeholders. we believe in the product. we like social networking. we believe we had a lot to do with the aspect of web 2.0. the issue has never been with the product. i think it would be foolish to

think -- >> if you were running it, it would be worth $200 billion by now. >> would you have taken it any different direction? >> the core competency of what it is today is the same as what it was initially. it's obviously grown. the trajectory has been very logical and is stayed on course. >> do you see -- when you look at google and its circle products. >> close. >> and you look at other people who want to get into this field, five, ten years ago do you think facebook owns the space the way they do, somebody else emerging? do you see a technology, a technology somebody might want to invest in. >> facebook has done a great job in social networking. no social network has given enough value proposition to leave facebook. >> that's the issue with google+, they created another social network and there wasn't really an innovation beyond --

it became clear that facebook was doing a pretty good job. >> people don't need two social networks. i think the larger question, is there going to be a paradigm shift or is social network going to dominate internet usage the way it does today. that's the question. >> you say people don't need two social networks. i wouldn't be on facebook and another product, another social media site that was identical. people these days get board. they want something new. they want to try something different and innovative. >> there's a difference between -- there's only so many hours in the day and networks effects. the time to have two social networks, update both of them, it's redundant. i think there's going to be a lot of people this check it out, definitely people that try to use both. the majority won't have time to do more than one. >> cameron, tyler, thank you for being here. how do we tell you apart, by the way? >> the sweater. >> the name tags. >> the hair.

>> in the movie the hair is different. >> i'm left handed, he's right handed but you can't really tell? >> really? >> you can tell. >> winklevi. that's common now, too. >> that was actually way before the movie. >> thanks, guys. this was great. coming up, comments from ford ceo on quarterly results. phil lebeau brings details and outlook for the strategy. then steve schmidt joins us to talk about the strategy for the white house. "squawk box" returns after the break. eak. who's gonna help cover the holes in their plans? aflac! quack! like medical bills they don't pay for? aflac! or help pay the mortgage? quack! or child care? quack! aflaaac! and everyday expenses? huh?! blurlbrlblrlbr!!! [ thlurp! ] aflac! [ male announcer ] help your family stay afloat at aflac.com. plegh!

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automaker ford out with earnings few minutes ago, the automaker beating the street $0.39 a share versus $0.35. estimate, phil lebeau spoke with the ceo. >> two issues you want to talk about when you look at the first quarter earnings. europe is the big one. the company lost $149 million. when i asked about this, have we seen the bottom with the european auto market, european economy, we don't know. we don't know if we're at the bottom over there. as a result ford which already

in the first quarter said they will continue to cut shifts, capacity, in order to match capacity, matching smaller demand over in europe. he's pretty confident they are going to be able to limit their losses in europe if you will. the other issue, is there starting to be a breakdown in pricing discipline here in the north american market as the japanese automakers bring more product into the showroom. he says they are starting to see some of their competitors increase their incentives but that ford has made a strategic decision that it is not going to be matching those incentives or flooding the fleets that some of their competitors are with some of the lower profit margin vehicles. so as a result ford says we may lose some sales but at the end of the day ford believes holding out of pricing discipline is going to be the key to not only growing profits but profit margins in north america as well. guys, back to you. >> phil lebeau joining us from dearborn, michigan. >> politics, steve schmidt, you

may know them. more movie references as woody harrelson played him in the hbo movie "game change" about the 2008 presidential campaign. >> who all have we vetted. >> romney, crist, pawlenty. >> who can we win with? >> none of them. >> obama just changed the entire dynamic. >> it is a change year. we desperately need a game changing pick. none of these middle aged white guys are game changer. >> schmidt is chairman of affairs, msnbc republican strategist. wow, that must be fun over there. that was woody harrelson in the hbo movie "game change" about the 2008 john mccain presidential campaign. it's weird when it was happening. did the conversation go like that? i wondered why the hail mary pass? you thought his prospects were

that dim at that point? >> pretty close to the conversation that happened. the movie was pretty accurate. that was the worst republican year anyone had to run an election in. we were outspent by $250 million. we were looking to a path to victory believing that we would be down after the democratic convention by about a dozen points, which is where we were. >> i still get mail here about -- i got something today, i mentioned we were talking about all the moves to the swing states and to the universities using air force one. someone wrote in, well, it's better than spending trillions on iraq. the bush fatigue is so thick you could cut it with a knife and it was worse when you were trying to run a campaign. i think any democrat could have been elected at this point. >> look, 2008 was a really tough year. i've been in the middle of two presidential campaigns for

president bush in 2004, 2008. it was a tough year. politic isn't fair. one side, you know, sometimes has an easy path. the other side has the steep uphill path. that was our lot in life in 2008. look, i think the election is a little bit different this year. i think both sides start out with about 47% of the vote. you see a very, very tight presidential election. it's going to come down to the debates. once again it's going to come down to who wins florida, who wins ohio. you answer those questions, you know who the next question is going to be. >> your view of governor palin after all is said and done, obviously you never would have picked her initially. so was it your fault she wasn't vetted better. >> partly my fault. i was deeply involved in what turned out to be a deeply dysfunctional process. if i knew then what i knew now i

would have tied myself to the bumper of senator mccain's car to prevent him from leaving the arizona compound to announce her. a mistake was made. i've talked about it pretty extensively. the result was someone who was manifestly not prepared to be president of the united states was put on the ticket. i think there's important lessons to be learned from that. i think there's important lessons to be learned about how you vet the vice president. the reality is both sides, democrats and republicans have picked people in the last 10 years who were manifestly not prepared to be anywhere near the oval office. john edwards for one, sarah palin on the other side. >> i love david axelrod was john edwards' guy. that's what i love thinking about now, a lot. how would you -- the campaign the president has been running for how long, andrew, would you

say we've been in campaign mode, not the whole term, three and a half years but three and a third. >> past year, two years. >> the right tack that the obama campaign is taking, in your view, steve. >> the obama campaign is fundamentally trying to run a campaign to disqualify mitt romney. the reality is if the president had been able to do the things that i promised to do, if he had succeeded in doing them, he'd be running a different campaign. he'd be running a campaign talking about his accomplishments as opposed to a campaign talking about mitt romney. >> be tough to run on health care when you don't know after june whether it's going to be on the books. that would be a tough one. it would be tough to run on anyway as unpopular. what about a vice president? should we ask your advice on that, vice president for romney. do no harm? >> look, i think there's a very small number of people who

passed the test who will be viewed automatically as this person is prepared to be president of the united states. you know, my personal view is that the person who is the front-runner to be vice president is probably senator portman from ohio. he's a great guy, someone widely respected in the party. he played john edwards in the debate prep against dick cheney in 2004. he played barack obama in the debate prep against john mccain in 2008. he's a very popular political figure in the state of ohio, which is a state that republicans have to carry. no one will say anything other than he's prepared to be president of the united states from day one. i think he's the front-runner for vice presidential candidate. >> ford might be good this time around after last time. >> people do the vanilla ice cream thing with him. he's a very effective

communicator. he's a very good politician and he's prepared to be president of the united states. absolutely. >> who is your favorite msnbc host, steve. >> i love them all equally. >> so do i. so do i. we're going to see them all this weekend, mandy at the correspondents -- you be at the correspondents dinner? >> i will. >> i'll see you there, say hi to you. coming up, talk straight from the gut, jack welch will be phoning in with a bit of news and talking about the economy. at the top of the hour bart chilton, from oil speculation to derivative regulation we'll lay it all the on the line. >> announcer: still to come, want to e-mail the cute guy in the porsche? maybe hit up andrews and jeeves as they cruise through the city. the founder tells us how his

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welcome back to "squawk." we've been talking to inventors, millionaires, looking for billionaires. our next guest disrupted things in startup. this is co-founder of sum zero. close? >> founder of bump.com and principal and vice president of sales and marketing at yottabyte. >> it sounds smarter. >> let's just go around the horn real quick and explain to viewers who don't know what products you guys have created and are working on, what they actually are. >> the bump network is a communication platform tied to your vehicle. what it enables people to do is send communication by license plates. car to car, also send business

vehicle, government to vehicle. >> in the car -- >> you're in the car. >> i'm in the car, see another car that passed me like joe did yesterday, how do i send him a note. >> if you're moving you have to use your voice because it disab disables texting and driving. >> i can send to anybody? >> he has to be in the system. it is completely tied to voice activated. >> people are going to be flipping the bird over this digital -- it's going to get bad. >> crowd source accountability. there are 300 million people on the road. first the mind goes to that person cut me off. the reality is when you drive bought mall and you get special parking because your license plate is red and you're a member of the system that's different than consumer to consumer interaction. >> i imagine you're hoping for example there might be citizenry going on between cars, you might

indicate, hey, dude you forgot to turn your lights on, it's foggy, you should do that. in reality andrew might be right people use it to abuse each other. >> just like e-mail, there are people who e-mail things that aren't supposed to be said and then also wonderful things. the government, your car towed. the business, just arrived at coachella music festival -- >> yotta is to cloud what microsoft is to the pc. the first operating system. >> the whole thing exists in the cloud. have you to be connected. >> there's the beautiful thing. the problem with the cloud, can't readily adopt because you have to be connected. with us you have an ability to have a private cloud within your business as well as the public cloud. >> that solves the problem of who owns stuff in the cloud. >> cloud is asset gain.

>> does that mean you own infrastructure or the business owns the infrastructure. >> either way. cloud service provider. you can shift your work loads to the cloud or while running your stuff inside your four walls. >> who are your clients? who are you targeting? >> we're targeting the enterprise businesses. we're also targeting cloud service providers to build cloud services for our software. >> what are you doing there? >> i run subzero.com, a professional community for investors, private equity analysts. what they use the site for among other things is share investment ideas, propriety research. we have a job recruiting tool on the site as well. >> you're crowd sourcing ideas for the buy side. i'm curious, though, if there are issues that develop around that in terms of people grouping together to buy shares of stocks. either they are going to say they are doing it independently, some doing it together, what that means in terms of disclosures later. >> the entire community is

predicated on transparency and accountability. when people join the community their names are associated with whatever they post. their names also associated with employers so there's definitely. -- significant pressure to be as ones as possible. people can rate submissions. >> you require members to share investment ideas. it's not like you can if you want to. you have to if you're part of this community. >> it's reciprocity-based platform. in order to access other people's content you have to share some of your own. >> in terms of how you think about your business, all of you have venture money in your firms i'm assuming? it's not just your own money but other people's money. they are going to assume they are going to get an exit. at some point and we talked about instagram a lot during this disruptor series. how do you think about an exit? this can be integrated with facebook. i have to hope to god mark zuckerberg is watching and he'll buy me. do you think to yourself there's

other social financial networks and i have to merge with them or do you think i'm going to pursue an ipo -- how do you think about this larger -- >> for me and for us we're about disruption right now. there's a lot of work the i.t. industry. we're not looking to sell out at all. there's a lot of work to do to shake up the norm. >> venture investors expect how long? what's the time horizon for them. i assume have you to manage your business for their benefit at some level. >> we have private investors. we're privately capitalized. the goal is to build the most profitable business possible. your question about monetization, the question is develop a platform around your vehicle, the coming of the connected car. the revenue model is built around software. >> are there any car manufacturers investing here? >> we're in discussions with different car groups. >> who? >> i can't say what groups we're in discussion with. if you can imagine a world where you can touch all the people that own the exact same vehicle and all the people who own the

exact same vehicle can touch ear other through this membership vehicle we built it becomes very powerful. >> where are you finding most of the people, we're talking about education and engineers needed for a lot of these businesses. is that a challenge for you? >> it's definitely a challenge. we've tried all kinds of avenues. i recently actually spoke back at harvard. they have a hackathon event. the twins, i don't know if they mentioned, have a talk to get to know students at a younger age, when they are looking for a fulltime position we're one of their calls. >> do you have to train them up yourself, though? >> it's an educational process. part is selling yourself and your concept and how you are differentiated from other offerings. but it's hard, you know. i think it's definitely a challenge. >> for us we're a little bit different. most people think about

companies doing what we do as from either coast, new york growing, silicon valley, we're in michigan, it's a little different. university continuously going on there, sourcing a lot of great talent there. takes a lot of technology to build an automobile. >> who can write code, you? >> i took some computer science but i wouldn't call myself -- >> have you written code? >> i don't write code. >> you? >> i used to write code? >> yes. >> how old is everybody here? >> 44. >> 37. >> 30. >> the venture capitalist says one criteria for investing in a company, i think he will not invest if you're over 28 or 29. he believes the greatest disruptions come at younger levels. i'm curious about a different question from an entrepreneurial standpoint -- you're a little different. you guys have had other jobs before you did this.

talk about that shift in terms of getting out of a day to day job where you have a salary and go jump into the deep end, if you will. >> this is my second disruptive play. the first activity was active network, active.com, went public last year. the business i'll leave it to the management team to explain but really is a revolution in how people initially registered for athletic events around the world. >> you were always on this path i guess. >> for me i haven't had a job for a long time. i had a business prior to this we grew and built and subsequently sold. it wasn't really a job per se. >> let me ask you one other question. we talk about politics, the impact on business. is that something you think about? does the election matter to you in terms of the issue facing your companies and businesses and decisions you're making around them? >> for me it's my customers. our customer's buying, their comfort level. right now trepidation and caution, not fear. >> wrong answer. you're a young guy and he gave

you the young answer. >> wrong answer? >> trepidation and uncertainty about what's going on. >> i'm curious. >> it's the customers, how they are feeling. >> i buy into it completely. >> politics matter to you? >> commercially it's great for us to figure out how to deliver information about people that are attending different political events. but it's very -- i think it's very important especially for the capacity for what we have is in the disruptive space, we have disruption built upon disruption right now. that's what's enabling the speed of disruption. politics affects it. >> a startup person or entrepreneur, we don't have the resources to get involved with government but i will say that with our business especially where transparency is important in an industry that maybe hasn't been as transparent in the past, some recent legislation has been good for us. the jobs act has been a positive

change for us. >> good to know. >> guys, this was great. thank you. thanks so much. appreciate it. >> university tapping ivy league for leadership, school announcing cornell university daniel spiro as dean of the jack welch management institute jwmi. an instructor, expert on financial management. joining us on squawk news line to tell us about this appointment is jack welch. is that jack welch management institute named after you, jack? >> yes, joe, yes. we're excited as hell about getting danny to come in from cornell to lead our school. i've been talking to you about this for a year or so. the school is really taking off. to get danny on board to lead our faculty and curriculum development is just a big break for us. >> i kind of had a renaissance moment in the last week or so.

i was talking to some guys, smart guys, jack. we're talking about the country and a lot of the problems we have. everybody talks about education. everybody talks about education. they made the simple point that instead of $150,000 worth of student loans where we're trying to figure out what interest rate to charge on these things, does a later really need to sit in a class? they made the case that online you can get a better education for a law degree if you're tested somewhere else, where you actually have to go through a test, a better education for five grand than you could for $100 grand a year. i didn't even think about that. i guess it would work for an mba, too. we might be able to educate all these people that don't have an education. >> joe, to get an mba today in the traditional way you have to drop out of work for a couple of years. you spend -- you lose $100,000 a year of your salary, a couple

hundred thousand dollars, then you pay 50, 60, $75,000 a year for an education. so you're talking about $250 to $350,000 of lost opportunity costs. we can deliver a better, better curriculum and driven exercise where you learn on monday and put it into practice on tuesday in an online setting. what we don't have yet is the socialization aspects. the sitting around, talking, et cetera. we have to do it online. but that's going to change. this is the trend that's going to change the cost structure of these big, fat education institutions that are charging inflation plus every year as they take care of these faculties. >> jack is a disruptor. andrew is going to ask how old you are. you're 28. >> he is. >> congratulate you guys for

this series you've got. it is so good to have these guys on and show them to your audience, because we're seeing these guys all over our private equity industries and trying new techniques on pricing, inventory controls, so many things. this technology is -- this cloud technology is giving so many opportunities to so many startups. your audience is getting a great treat watching these guys on the air. >> i just ran the -- that's what you heard, the disruptors animation for you. because why we left you out of the disruptor series is beyond me. i just rectified that quickly. so you're there. >> thank you, joe. >> you're very welcome. when are we going to see you sitting on set disrupting things? >> i'll be in soon. i want you to know the last time i was there i told you this economy was not accelerating and it is not accelerating. >> prior to that you said it

was. i know. >> you've got tentacles everywhere, with clayton and everywhere else with various and sundry ventures. >> we're as excited as can be about this school. the last time i was on i told you we had doubled the number of enrollments in the first quarter to 76. we're going to double in the second one over 150. this idea of getting an mba and learning on monday and putting it into practice on tuesday for a fraction of the price while you're still working is a home run. >> all right. jack, we'll talk about it next time you're in. you're on the phone so tell someone when you're next guest hosting slot is. you can do that right now. thanks, jack. >> thanks a lot. nice job on the disruptors. >> thanks, jack. great to see you. coming up. it attracts users like paris

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young minds buzz feed and business insider. the business video service from jay-z to shakira. cftc commissioner bart chilton will be our guest host this hour. he's ready to lay down the lie on a new class of speculator he calls the massive passives paragraph breaking economic dat ark, first read on economic growth in the third quarter gdp at 8:30 eastern. the third hour of "squawk box" begins right now. welcome back to "squawk box" first in business worldwide. i'm andrew sorkin with joe

kearney. because we have mandy drury, becky quick is off. >> where is carl quintanilla. >> carl. >> carl. >> okay. let's check u.s. equity futures at this hour. we had earnings news this morning. looks like we're going to have, if we could get that screen up, it would be slightly helpful. maybe, maybe not. there it is. green arrows. we open up about 28 points higher, also should note on earnings news kkr crossed the tape. looks like a good number. their portfolio up 9% and assets management also up. a little news on confirm kr this morning. >> absolutely. charts have been known to be slightly helpful. earnings reports from major companies. boy, have we had a big week for earnings this week. earnings of 39 cents per share that beat analyst expectation of

$0.35 per share. revenue came in above expectation at 3-of- $32.4 billion. merck reported earnings of $0.99 per share ahead of expectations, roughly in line with expectations. p and g, procter & gamble beating by a penny. revenues a bit light. company lowering its current quarter and full year guidance as it works on restructure plan, continues to feel pressure for high commodity costs. do watch shares of amazon, jumping up reporting earnings of $0.28 a share. that was a $0.21 beat. revenue topping expectations, live internet bringing cost under control after spending aggressively on expansion. also quoted to success in selling digital products through its new kindle fire tablet. >> from mg global to stopping speculation our guest host has been making a lot of headlines.

joining us for the next minutes, commissioner of the commodities futures trading commission and frequent guest in studio here. what were you back on east coast for? >> doing a caulk with some people and doing this and meeting with our staff in new york. we have offices in new york, chicago, obviously, and kansas city and d.c. so we try to get around. >> wherever there's commodities trading. >> absolutely. >> i can go back years. we've had the same conversation about speculators. we had one just about -- when was the last time. >> maybe a couple weeks ago. >> we had dan dicker on. he doesn't want any fast money in commodities at all. he doesn't want any index moneys. >> you don't have any markets if you don't have people -- you've got to have speculators, two-way street. the question is, is there a balance. i understand the concerns people have about some of the index

funds, joe, in that there are fairly static, fairly -- they can be fairly price insensitive. if you look at managed money, which includes more than just index funds, last month we had of the managed money, these guys i call massive passives, 85% were along. that creates some pressure in the market. that's an issue we've been trying to deal with through position limits and other things. >> here is one thing that a lot of people talk about this. the first time we ran up the 150. the stock market had been static for a long time. so a lot of these pools of money were chasing returns somewhere else. >> absolutely. >> did it actually happen that money managers, that their desire to help their clients make money caused all of us to pay $4.50 a gallon per gas? >> absolutely. >> that really happened? no.

>> didn't happen? that's what people say. these global markets suddenly being -- the tail was wagging the dog. >> everybody likes to make it black or white. one thing or another. as you talk about all the time, oil is a global commodity and not just one thing. even if you talked with really smart people at the exchanges, they will tell you they push prices a little bit further than they normally would go when they are getting into the markets. two 2005 and 2008 we saw $200 billion in this managed money come into markets because they are looking for other opportunities. that's fine. >> nothing else worked. >> right. >> why are you arguing with yourself then right now? that's a point i would make, has nothing to do with -- oil is going to go where it's going to go based on supply and demand. how many contracts are you going to be allowed to own? you want to cap the number anyone with own now, right?

>> roughly 10% of a market is our proposal. we talked about ford that's after getting 10,000 comments and actually based upon some of the have in the months and had for 10 years on agriculture contracts. all we're saying is put this into -- not just saying it, the law tells us to do this. go ahead and have it into the energy market, metals markets. i think it's a fairly high standard. i don't know who needs more than 10% of a market. >> can you speculate how many crude is due to speculatory money? >> i can't do it, it would be dangerous. based on what goldman sachs researchers say if you have a civic you're paying $7 more every time you fill up as a result of speculation. that's their numbers. if you have an explorer $10, f-150, $14. >> helicopter. >> helicopters are very expensive. >> what is the real solution

then? >> it's two things, andrew. one is to have a reasonable limit. again, do people really need more than 10% of a market? the second thing is, is there something you should do with regard to a class of speculators? i don't have the answer to it. >> what do you mean? >> managed money. if joe has 15% of the market, you might agree joe shouldn't have it. joe can only have 10. whether or not all of you are managed money and all have 10% and that equals 30% and you're all doing the same thing, is that something we should be concerned about it, should be concerned about. for me definitely an area of inquiry and something i'm interested in but i don't want to go overboard and say can't invest in the markets, don't want to dry up liquidity. as you talk about a lot, it's a balance trying to figure out the right thing. i think we have the right balance. >> do you feel like you need stronger powers, more enforcement powers. >> we have called for president

called for recently additional fines and penalties on manipulation. i'm totally supportive of that, of one of the weird things mandy in the law, right now it's unclear in some people's minds whether or not you are fined for every instance every time you would make a trade, for example, or every day you're out of compliance or whether or not it's just a pattern. so what the president said and what i agree with, i've been saying this, too, for a long time, we need to essentially ensure it's every violation. we can't have manipulation or pushing these markets around that the fines are the price of doing business. they need to mean something of we've had some really good cases recently but we're working on more even. >> i don't know when you said something about -- what did you say on air about mf global. >> i said a lot of stuff. >> basically said malfeasance, didn't you? whatever happened? >> look, something happened with

the money. it wasn't -- it's not appropriate. something went drastically wrong. it was a slap to the face for us. >> you've seen a lot of the material, meaning the e-mails, the back and forth, pieces of this investigation. jon corzine, responsible, not responsible? >> first of all, i'm commissioner, not an investigator. >> just say something again that will be circulated everywhere. >> i'm just curious. you've at least seen the same stuff i've seen, we've all seen in the papers but i'm curious, i imagine you've seen a little more? >> i've seen a little more. i can't talk about that part. >> just whisper. >> the investigation in terms of whether they did enough to protect customer funds before it fell. >> cme acknowledged in "new york times" that we were working with them looking into this, so i'm not going to say anything. the agency didn't say anything.

all i'll say, mandy, everything on the table, won't leave a stone unturned. >> another question, could mf global happen again today? >> i wouldn't want to say never, andrew but we have a lot more systems in place than we did then. there's 126 futures commission merchants, guys in the futures world, 126. we went out immediately and did a review of the top 70 of those and everything looks good. one of the very small silver linings in this whole mf global debacle, i think firms out there said let's make sure we're abiding by the law. customer money, supposed to be sacrosanct not just there one time a day, all the time. >> you can categorically say in terms of losing catastrophic money we're 100% safer? >> 100% safer, mandy. we still have more things to do. for example, when you have the money, maybe if you're mf global

or a firm like that, you've got your money in a bunch of different bank accounts. there's no reason why every day all the banks can't just wire into a place and electronically, talking about the disrupters and all the technology that exists out there. we know the money is there 100% of the time. that needs to happen. i also think we should have an insurance fund for when somebody does violate the law and the money goes away. trustee mentions that in the senate banking committee and it's something we're working on. >> for months. >> we're going to have a break, obviously continue this conversation throughout the hour. meantime continue our disruptor series with biggest technology innovators. up next, video service that attracted investments from music mowing up jay-z and pop star shakira, ceo of viddy will join us next. next half hour founder of second market and buzz feed joining us. squawk returns after the break.

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welcome back to "squawk" on this friday morning. our next disruptor runs the number one free app in the apple store, apps store on apple and has been dubbed instagram of video. calling in now from the "squawk" news line, viddy ceo and co-founder. >> thank you for having me on

the disruptor series. >> give those who are unfamiliar, the instagram of the video space, if you could spend 10 or 20 seconds explaining what it is to those that don't know. >> sure. viddy is an application that works on iphone, ipods and ipads, the easiest way to capture with the punch of a button music transitions and special effects, one more click of a button share that out to your friends and family and other videogrpahers around the world, facebook, twitter and other sites like tumbler. >> i can tell you i have used the app and does make videos -- i'm not videographer, mine don't look so great but with the features you have, you can make a video better. how are you going to monetize the product? >> our focus is building the

community. we just passed 15 million registered user mark, adding 15,000 a day. it's about us creating an extraordinary product and building an extraordinary creative community that can express themselves creatively. as we continue to expand there's opportunities around advertising and premium services that will make sense. >> you're providing this for free at the moment? this app, i don't remember if i paid for this. is this a free app? >> yes, it's a free app. >> would you consider a premium version? >> there's likely opportunities where videoographers will pen fit from other types of services. right now the priority is on building the community and continuing to improve the product. >> in terms of building that community as we mentioned a moment ago, 50 million registered users right now. do you have any targets in terms of how many you would like to have by the end of the year,

brett? >> it's interesting. we're number one in the u.s., number one in canada, number two in australia and uk, number one app in photo, video occasion around the world, one of the top five fastest growing apps on facebook. we're not doing direct projections but just extrapolating out. we see this is an extraordinary opportunity because it appeals to pretty much age group and everyone around the world. my nine-year-old takes videos. we're a twitter-style video feed. my 71-year-old mom will see his video in her feed and she's a power user. i think the opportunity is big. >> what did you think when instagram was sold for $30 million. >> great for instagram and facebook. >> great for you, potentially, too, right, brett? you must be thinking kaching. >> why he's not thinking about

money. you build up your customer base and try to monday ties it, to andrew's question, right? >> of course. we're building a real business here. the content is being created by our community is some of the most fascinating content you'll ever see. >> is there a level at which, brett, a level at which you would like to monday ties, a time horizon? when do you do one of these things? >> looking out at the 100 million registered user mark, relative critical mass? >> how quickly do you think you can get there at this rate? >> well, we just aren't projecting against our numbers but if you start to do the math it's pretty quick. >> number one in the apple store, on android as well? >> just now working and developing an tried app and that's coming soon. >> how important in terms of growth and diversify a way from apple. right now seems like you'd be very dependent on apple. >> we love apple. we're apple finatics.

we love an tried. there's a 2x multiplier effect. >> when you say the android app is coming soon. how soon? put a timeframe on it, brett. >> we're looking at the the coming months. >> anyone doing same thing, similar, looking over your shoulder, wow, that's something i've got to think about, worry about, a feature i've got to add? >> not so much. we're really just focused on running our own race. it seems to be working. consumers love the application. it allows them to express themselves creatively and easily share. what's great about it is the community aspect of it. that's what's working now if you look at sites like pinterest and tumbler and facebook and instagram. people like the feedback they get from family, friends, other people. >> hey, brett, last question. jay-z is one of your investors. how did that happen? >> we've been approached by

quite a few people in the entertainment industry. we see this as the intersection of technology and interim. on the one hand we have the co-founder of twitter as an investor and on the other hand rock nation, will smith's company. it allows big artists like lincoln park, bill cosby to engage with their fans in a new way, instead of 140 characters and a picture we're bringing pictures to life so artists and celebrities can intimately connect with fans through our community via facebook and twitter. >> brett, very cool stuff. we hope to see -- if you sell your company for a billion or more to facebook please tell us first and come on. >> really appreciate it. thank you. >> good luck. coming up in the next half hour of the show, more of our disruptors series. young minds behind second mark buzzfeed and business insider joining us. first government's first read

for the first quarter, gdp data at 8:30 a.m. eastern, nine minutes time and counting. "squawk box" right back.

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welcome back to "squawk box." almost a third of shareholders rejecting executive pay plan today. the nonbinding vote at the annual meeting still passed. rival barclay bracing for a similar revolt. s.e.c. bringing in big gun for google antitrust pro. the former prosecutor in the oklahoma city bombing trial. the case will have significant implications for growth ambitions and consumer use of internet. tech giant accused of using it's power in the search market to stomp rivals as it moves into

related business such as travel search. europeans are looking at two similar claims. >> all right. you know, the nasty twitter people, i looked at a couple. they have one follower. they might as well send an e-mail to the show. they have one follower. >> one follower. >> who is this guy and who is listening? >> how about you. >> i have 8,000. >> 8,000. >> and you barely even tweet. i've got about 14,000. >> you are leaving. >> i'm leaving, going to the west coast. >> on a jet plane. >> yes, bi bill maher show. >> pick a curse word. >> like o damn.

>> don't use the combo words. >> during the break we'll give you suggestions. >> when you go on bill maher do you finish sentences? there's a lot of high fives. >> i will try to challenge just to make it interesting. >> have a good time. [ mujahid ] there was a little bit of trepidation,

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we are seconds away from the first quarter gdp data. always interesting. rick santelli will give it to us. rick. >> the survey says decides pointing. 2.2 looking for 2.5, looking for 3.5, need 4. if you look for consumption it's 2.9. that's a better number than we're expecting. the gdp price index, this had a bit of a drop with respect to expectation but definitely higher than our last look. that's 1.5. if you look at personal consumption expenditure, quarter over quarter, it's 2.1. that was expected but it's a huge jump from what we've been looking at, which has been around 1.3. disappointing would be my term. there's some that will spin it.

130, 230, euro currency, a lot of anxiety in the aftermath of what happened in downgrade in spain, see the euro currency isn't the deliverer, saw potential quantitative easing much more in the form of yen. see the dollar yen has had some movement. interest rates obviously they are low and not going any higher on this as we approach low yields going back in february, third week in february for a 30-year. about to slip under 310. preopen equities they really haven't reflected this number in a huge way. up 27, down one. i think as we pay attention, digest a bit, this is not pretty when we get the full opening at 9:30, guys. >> rick, thank you. stay with us. i have bart chilton and thought of a great question to ask him. i want you to listen and yell at

him. >> just go back and look at kudlow. i like to chew my tobacco once. >> rick is the disrupter. >> i would have in troed you. >> i wand you to go over these comments. remember earlier you said we'll see what bernanke says whether qe 3. we've had answers. yesterday, does that mean he didn't pull away from it or able to go without training wheels? >> joe, it's a great question. i've been puzzling for the last two days. what bernanke mentioned was clear if things are bad, not going to tighten if things get better. that sort of affirmed but we're not doing anything imminently right now.

might have been something -- >> something for everyone. >> i do want to talk about the numbers here because a couple of things jump off the page. gdp great in the area they cared, spending number at 2.9. not so great is a place where market didn't expect it, business investment down 2.1. one of the bright spots of the economy. not sure why that happened. structure minus 12. housing investment, best number i've seen in i don't know how long up 19%. the kicker to the whole gdp everyone will talk about decline in government spending, down after the last quarter with federal government spending. i don't know how the accounting works. my guess is the government not declining spending by 5.6 annual rate that's what this number shows right here. exports were pretty good. i don't see inventories.

get you next time around. government spending a big part. business invest mement, two-wee component. >> here is my question, ready, i came up with this. brett, bart simpson, bart chilton. the limit on oil, people don't like oil at high prices. are you going to put a limit on the fed and how many treasuries they buy because at 2%. i guess that we don't mind as much because the government likes that price level. we don't get rid of speculating or position sides there, just on expedient markets that make sense for us. >> what do you think, rick? >> i think bart simpson would be the perfect individual to regulate bernanke's behavior. >> seriously. >> i'm serious. >> doesn't the government own more than 10% of that position? does it apply to them?

>> look -- >> they have very issues they have owned up to. >> any significant concentration can be a problem in markets. i'm not going to get into the fed's position but does seem to me that too much concentration is obvious. >> i am curious, rick, curious on the gdp real quick. >> he's changing the subject. >> whether or not we will tiff to where we were. if you look at the fourth quarter of 2008, we're at negative 8.9. certainly isn't what people are hoping for but still at least in the right trajectory overall, right? >> well, i would say that every country in europe has used that line for every number we've seen in the last year. way worse, could be better. i would think that the united states is better. we don't need to make excuses

lower the bar so you can drive a mack truck under it. we deserve more, should get more by putting natural gas stations around the country or tell more truths about how americans, for example, could put instruments and apparatus in their garage if they have natural gas. there's so many energy-related issues that could bolster our economy, our gdp and get us off of foreign fuel that that alone would make a difference. 2.2 is horrible. i wouldn't make any excuses to call that a passable grade. >> rick, how upset are you about -- do you see political motives in bart's move at this point to try to cap speculation? >> listen, i would think without the current structure of trading above and beyond otc issues, i would think without that the

price of oil would be 30%, higher if you believe 5 to 10% of the current system it would be added on top of that. no system is perfect. i would argue for anybody to show me research -- better system to allocate resources without picking people, barnie, chris dodd, who wants to do it this month in congress to have an aggregate allocate resources the market system is the best. the future's mark and model is the best. the only people that ruined it are those asleep at the wheel, derivative futures sense trying to swamp our boats. >> can i answer bart's question. 2.2 is not strong enough. we need 2.8, 3.5 is what the economy is clearly capable of without an inflation standpoint. this number is going to bring back more speculation of the fed. not at this level.

if the trajectory in this direction, start to print gdp with one handle on them, talking more forcefully about federal reserve coming back in here. >> gentlemen, thank you very much. coming up, our disruptor series with the biggest names in tech innovation. young minds behind secondmarket, buzzfeed, and businessinsider. back in a couple minutes' time.

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all right. the entire set has been disrupted. the next generation of inventors, social media giants and soon to be mega millionaires, minimum, changing the world of business, media and society. we call them disruptors. joining us barry sill skrer, founder ceo of secondmarket. john, buzz feed and joe, deputy editor for "business insider." welcome barry, joe, john. you weren't quite disruptive enough last time. hopefully you can be a little more disruptive. i don't know. hit chilton or something. >> i'll think i'll avoid that. >> no flack from the disruptive tribe. >> he looks like -- i wouldn't mess around with them. they say you look like a james bond villain. >> you've got the smile, the hair. >> my only teechbldancies are

protecting consumers. >> i resemble that. it implies you're evil. >> the football commentator looks like. >> also heard you look like the guy on coach. have you ever heard that one. >> haven't heard that one. this is very important stuff we're talking about. got these great guys. >> >> so barry, tell me how it works. you've got private market companies, don't know how to trade stocks. >> secondmarket, trying to democratize the process around discovery and investing and unique investments. that's private company stock, hot tech companies, launched a market for community banks, distressed fixed income. the whole idea is to connect. we have 100,000 investors in the system with unique investments. >> not just a buyer and seller market, a whole marketplace. >> you're not alone either. >> it's a whole marketplace. the public markets have become

really inhospitable from small cap companies. it's taking a lot longer to go public now, nine, ten years. used to take half the time. what we've done is created spring training, the bridge, get companies to the point they are mature enough to go public. meantime, six, seven, eight years old, people need liquidity, early investors want out, others want to come in, we work with investors to that make happen. >> like recent guests, recent jobs act, bipartisan but far left hated it. i read on the "huffington post" this going to breed bucket shops by the thousands. was it helpful for you? >> for second market, yes. the jobs act was great. covered the entire capital formation process. crowd funding, easier to raise capital private and easier to go public, which is great. look, we want to do everything we can to support entrepreneurs,

job creation, making capital. >> not going to be a disaster. >> honestly the thing with funding, the s.e.c. has about 270 days to figure it out. they are looking out for investors. very, very exciting concept. we'll have to see what the rules look like. >> thanks to you a lot of hedge funds on the facebook for official ipo. >> that's what's exciting about what we're doing, giving investors access to opportunities they have never had access before. you can now get involved whether it's a private company on the tech side, private community bank, where before you had to have the relationship with the manager or broker or didn't know it was available providing transparency and system to give access. >> you didn't control the editorial content. >> my partner was one of the co-founders of "huffington post." i was not. >> they were the ones trashing the jobs act. >> if you say so. >> how does buzzfeed work?

>> there's been a big change in media, from portals to certainly now social is the new starting point. it the way people get news, discover content, get excited. we're the definitive social publisher. twenty or more people come to the site looking for content to share across the social web. an original editorial team, partnerships with some of the biggest publishers like daily mail and "time" an "post" we track, identify what's viral and -- >> how are you working with traditional advertising, are you -- >> all the top advertisers in the fortune 500 have recognized is not banners. social advertising is the future. they want to create content, get it shared. we work with the most wide variety of brands to coke, pepsi, toyota to ge. they want to create content, get it shared and optimize what's

getting shared the most and promote it more. >> all of you guys thought leaders, change element guys. without facebook can you even -- do you have to be a first mover? how do you deal with -- facebook seems like the big kahuna and you've got to stay with them. is there room for anybody else? >> we're super excited. facebook is our best and biggest partner. we get double the traffic from facebook we get from google which i think is a very different big movement that's happened in media right now. what's amazing about social users they come to the site through status update or shared post and then they develop affinity through social in a way i don't think people do through search. i think search users are what i call wet nerf ball users, soak it in water, no bounce. >> facebook users, addicted. >> we're at 6 million and now 20 million, that's all through practicing what we preach and using social to --

>> how do you make money. >> social advertising. we did 100 campaigns with top brands. we'll probably do 2 or 300. >> i'm trying to figure out how business insider fits in. not totally different. >> a lot of same ideas, especially this idea of creating content that's designed to be shared. in business news, one of the things i think about a lot, a big story about today's gdp number. within that so many chunks. one chart, government contribution, what it says about the job market. you can chunk it up, break it out and create individual units that are a lot more exciting to be shared than just here is the roundup of today's gdp number. >> we don't aggregate, produce original content. michael hastings who took down mcchrystal, he has a story on the front page about all the women behind obama, a campaign, a girls club not a boy's club.

links, don't write stories. >> what's the difference? >> tracking code. >> we have tracking code on all these partner sites and we see what stories are shared the most. that's something many publishers have ever had. we trigger just the link to these partners so the partners get the traffic. >> i wanted to bring up this topic of original content origination with you. i know there have been accusations that business insider rewrites other people's articles and presents them in a flashyer, nicer, more digestible package. what would you say to those accusations? >> we certainly have the feeling if there's really great stuff around the internet we want to site it, link to it. if there's a great story someone has written, want to send them a link. frequently what we'll see is the real story is some nugget that was buried in the bottom of an article that no one saw, because no one gets to paragraph 15 in a

traditional article. so we'll highlight that and make that the main story. >> the guys with like the 3,000-page tome. >> do the work. generally people are really happy when we link to their stuff. i don't know. people say all kinds of things but generally works out well for everyone. >> been thinking about it a lot dependent on advertiser, all the disruptors, always goes back to advertising. we do need to keep making something to sell with advertising or no? >> banners don't work. all the big brands realized that. it's brampbl created content that engages, creates the message. we found with social advertising, did studies with ge and virgin mobile, awareness, intention to purchase, brand affinity, they double or quadruple when there's a message and social connection tied to it. >> it's targeted, too. these days everything we do is

so tracked or reported. >> think about how much user dat ark is out there, whether on facebook or platform, the ability to target an ad to the right right time and pay a little bit of money is very compelling to advertisers. >> it's really word of mouth. it's the ultimate thing. i think you'd be interested in this. i pass a link to you. that's the ultimate targeting. >> wow. >> all right. all right. >> fascinating. >> jim, thanks for returning. we appreciate it. >> go do something disrupting this weekend. >> on a programming note, later on "squawk on the street" amazon's original disrupter. we have jeff basos? oh, okay, with wall street journal dennis berman at 11:40 eastern. also, coming up, the view for wall street. we're going to prepare to close out the trading week. "squawk box" is coming right back. ck.s also offers ereturn-- our fastest way to return your car.

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well, in about 7 minutes time, we have to check out and hand it over to the wonderful team down at the u.s. stock exchange. what are you going to be looking at today, folks? >> i don't know what you guys think. it is soaring pre-market on very strong results.

>> i also think that proctor, i found that disappointing. i think you can rationalize and say that howard schultz is going to take on europe. can i just say, you guys, it's remarkable. this is why i think a lot of companies priced earnings multiples are down. because of everything that i'm hearing this morning. these are companies that are basically taking, taking the profit. >> cramer, where are you on -- we've got bart here. where are you on making sure that the commodity guys only have 10%? are they on the right track? i like my question if you were suggesting it. do you think the fed needs to have restricted limits on how many treasury bonds -- >> they can't have more than 10%, either. what would happen to the 2% ten your? >> i think they should be flooding the world with 30. i pleaded to tim geitner about that. publicly, privately. i think in the end, if we don't try to lengthen our matureties,

joe, is spain a possibility for us? i don't think they're going to take it off the table. >> jim, isn't there enough where they can push prices around? >> sure. we saw that with steinhardt. that was a vicious period where i remember trying to figure out what the heck is going on with the short term notes. and the answer is you're absolutely right. cramer controlling markets, right, jim? >> we were sitting here saying what the heck is going on. and, of course, oftentimes, when you see something like that, it is unethical. >> you always tell me that. you always tell me that. >> okay. guys, we're going to look forward to seeing you in a few minutes. i'll tell you what, these guys, they're not just younger than you, they're younger than me. and i feel like a real slacker. these are guys about to become billionaires. and here i am. >> i think that's okay.

coming up, you're right. i know, it is amazing. but some of them have been there before. >> announcer: next week, we're launching the "squawk box" book club. the books that shaped the conversation in the business world. authors michael lewis, ben miswick. books like "accidental billionaires." tune in next week for the inauguration of the blue chip book award. rd. the sweet spot that powers sound decisions. duff & phelps financial advisory and investment banking services.

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let's get some final thoughts now with our guest host cfc commissionerment i believe when you were on the show you launched your book. i'd like to get a post-check on are we seeing fewer or more or just as many ponzi scheme cases now? >> yeah, actually, we had a record number, mandi. we had 33 cases just at the cftc. the f.b.i. was investigating over a thousand. it's not getting any better, unfortunately. >> why not? >> i think people just need better education, which is why i wrote the book. i don't make any money or the agency doesn't make any money off of it.

welcome back to "squawk box,"