good morning, everybody. i'm becky quick with joe kernen. andrew ross sorkin will be back tomorrow. we are issuing congratulations to adam scott. he made history yesterday becoming the first australian to win the masters. this was something, the back and forth. joe, i didn't watch it a lot this weekend, but i did watch what was happens happenings as they were going down to the playoffs. >> i saw it all except or the last two shots. the approach at ten. i was watching it, delayed, and then it stopped. >> oh, no! yeah. >> it kicked off and you missed the last -- >> because of the way the dvr was set. then the channel was on cbs, it

went back as far as i could, but it was too late. it was okay because i saw the putts made on 18. >> yeah. the first time around. >> and i saw the first playoff on 18. and then i saw them both in the middle of the fairway on 10. that was good. we're going to talk to shactman about it. the long putter thing is -- it could be re-ignited. >> isn't that illegal? >> you've got -- he won, web simple soon won last year. keegan bradley has won recently. there's a lot of -- whenever someone win wes a long putter, they once again start saying that there's something going on. but, you know, everybody has the right to use a long putter. i don't know whether they can get all the different golf authorities -- and then there was the tell whole tiger thing, too. >> i didn't see that, but i read all about it. >> i'm sure. i don't like living in a twitter world. >> there are new pictures i saw on twitter last night where new

pictures suggested that he should not have been penalized at all. >> we know about opinions. you know what they're like. everyone has one and they all stink. people just -- no one knew about the rule from two years ago that they had done. the real sad part, and i'm a tiger fan, is that he was on his way and that was really bad luck when he hit the stack on -- i think it was 15 when he hit it. that was four strokes. two strokes of a penalty and, really, he would have gotten a birdie there. to be that mentally tough to still almost be in it all the way to the end -- >> even just the two-stroke penalty alone, it cost him at least $1 12,000. >> money is nothing to tiger at this point. all he wants to do is win majors. but the course, once again, augusta is -- >> it is beautiful. >> it's great. makes for a great tournament. adam scott, i don't like his caddie. but that's tiger's old caddie.

>> you ran into him. >> he's a thug. but, anyway, it was good to see adam win in. he's a great player. >> although i have to say, i was a little bit held with angel cabrera. >> you were? >> he seems like a classy guy. he seems like a nice guy. yes has no fear, i'll tell you that much. >> was it last year? >> no. he won three or four years ago in the playoffs. >> i remember watching the -- was it phil who gave him the jacket? >> i think he won after phil had went, yeah. >> adam scott in the british open last year had finished with four bogey toes lose by one stroke. that was very classic about it. he finally come to where, you know, putting was always his problem and he has the long putter now, so -- >> ben white tweeted something funny. he said thankfully adam scott won to make up for the fact that he's such an ugly fwie. >> yeah, i happeknow.

out of all the golfers -- justin thompson isn't the handsomest guy and is he's dating -- i don't know. golfers are suddenly kind of cool. ian, we talked about the pollen count was 5,000 down there on thursday and friday. i guess he has -- >> allergies. >> yeah. and you know what? start using that. i'm going to start using that. did you see goals? >> yes. we're going to take a look at the u.s. equities this morning, but gold is under incredible pressure. it fell below 1500 this morning, though. >> it was below 1400. it was below 1400 this morning, 1390 something, down $106. >> 1408 is barely hanging on ott this point. >> it's following $80 a day. i saw some tweets they saw that they were putting on "worldwide exchange." people finally figured out it's a worthless, shiny metal.

i noticed two things that happened. >> why, yeah? >> when you get a guy like rosengr rosengren, and when he starts talking about he's going to be comfortable tapering or eventually ending, i think we're just -- you know how if you've got a fire hose on full bore and you are just starting to tighten it a little bit, i just think the writing is -- what else would cause it? what else would cause gold? >> i think i have a different theory. i think it's because there's a new fiat currency. so anybody who wants to use a fiat currency that they can trade later is moving to bitcoin. i'm saying this tongue and cheek, but -- >> you know how i am about adopting different things. the coin will have rallied and come back down -- well, actually, it has already. you could say that one of the reasons that gold moved from 200 to where everyone in the world is predicting to 2,000 is

because it saw this wave of central bank printing. it saw that. as a result, it saw that and -- >> there was a lot of fast money in it. you saw soros and all these other guys -- >> it was over a period of years. the fast money got in after it was moving. but you've got an entire planet that almost collapsed with the financial crisis. you knew that all of that overleverage was eventually going to go from the private secretarier and be taken on by the public sector. the public sector is the only way it's going to be able to globally absorb all of that is going to be from the printing presses being on and the printing press has been on for five years now. gold would have been run up and maybe we're seeing the light at the end of the tunnel. >> where maybe some day they won't be printing anything. >> rosengren is a met for for even the most dovish guys are going to decide, look, we

can't -- enough is enough. >> yeah. and in japan, don't you think everybody knows they're debasing their currency? it's going to be above 100. i don't know. >> i still don't understand why the why now. all of a sudden, people figure it out. this is the moment to run away from gold? but it has been frightening to watch and it's been down in bear market territory at this point. we'll keep an eye on that through the morning. if you take one more look at the gold price, it's down 92 to 1408 an ounce, a drop of 6% just this morning after big drops every day last week. >> oil is at 88 today. >> it's just so strange to try and figure out how people are running and chasing after this. if you look at the u.s. equities picture, it has some red arrows. right now, those dow futures are down about 70 points below fair value. s&p futures are off by just over 11.5. if you put this against what happened last week, the dow, s&p, the fass dak each rose by

more than 2 the%. the dow is up by ..4%. the s&p is up by almost 11.5%. nasdaq is up by 9%. >> and in earnings central today, we're going to hear from citigroup before the bell. the bank is expected to of the earnings of $117 a share on revenue of $20.1 billion. and a reminder, we're ed adding a new twist to "squawk box" this earnings season. we'll need your help. >> i actually like this. and, you know, i think something like 5,000 people voted on this the last time. >> you make a kissing sound when i talk about augusta. >> i do like this because i think it's a good measure of how many people are actually watching. >> we're calling this arm chair, calling all arm chair analysts, there's no way you can do this, but just click on our website a bunch of times to make it look like you're visiting. we'll do it this way.

citigroup is either going t meet, beat or miss expectations. you make the call on how companies will perform. vote as many times as you want. for me, i would vote on meet, i would vote on beat, vote on miss and then do it again. >> our arm chair analysts got it right last week. they guessed that it was going to beat expectations and they were right. >> they lower their expectations. analysts always are concerned. our poll today is focused on citigroup. will today's first quarter werings meet, beat or miss the current first call consensus of $117 a share going on our squawk facebook page and vote now multiple times. >> looks like somebody has a case of the mondays. >> log on, click around here. there what's going on with google? leonard -- >> who is he? >> a swiss mathematician, considered wunl of the greatest

of all times. >> because? >> as i recall, he did ground breaking work on fluid dynamics, optics, and i believe it was astronomy. >> if you recall correctly. >> now that you mention it, it strikes a cord. >> right. and actually, when he was in school, he would do a lot of work and someone would ask a question and they would go, anybody? yuler? anybody? yuler? it's the 306th anniversary of his birthday. he died in 1783, one of the great ft mathematicians of all time. yuler. yuler. the only mathematician to have two numbers named after him. >> which are? >> the yuler mascaroni constant and yuler's number is used in calculus. yuler. yuler.

yuler, leonard yuler. i don't know. that was pretty good. >> that was pretty good. google is filled with geeks and i've never heard of this guy and i took calculus. remember yuler's constant. let's talk about the global market news. part of the reason you're seeing futures weaker this morning is because of the numbers that came out of china overnight. china's economic growth was slowing in the first three months of the year. for china, it was actually a disappointment. it was down from the previous quarter, 7.9%. economists had been looking for 8% growth for the most recent one. our eunice yoon is going to join us with more from beijing in just a few moments. let's take a look at oil prices. there are some massive moves throughout some of these markets. oil prices down by $2.70. that's almost a drop of 3% to

88.59. concerns about that weakness in china playing out here, as well, because people are looking at this and realizing that you are going to be seeing some smaller growth coming, less growth coming from china over the next decade than over the last. if you look at the broader markets, the ten-year note here in the united states is now yielding 1.733%. if you take a look at the currency markets, right now, the dollar is stronger against the euro and the pound. euro is at 1.3059. the yen is at 97.79. and gold prices this morning, as we mentioned, have been taking a huge drop today. down 92.50 to $1408.90. right now, it's time for the global markets report. kelly evans is standing by in london. kelly, this is a lot of things we're trying to figure out. >> there's gold going by right now, down $108 at 1393. so we're frozing on down 9 2. it's below 14 let you know right now. i don't know why. >> the low of the day is 1385.

we will take another look, but i would trust the number at the top, not at the bottom. >> yeah. >> we'll take a look at our boards and get those fixed. again, it looks like it's below $1,400. kelly, you are watching all these moves, as well. >> yeah, exactly. it's an extraordinary morning. the message is pretty clear. there's not a single market across europe that's in the green right now. what you guys are looking at is the performance in the commodities complex. it is confirmed to some extent by the sell-off we're seeing in equities. here is the gold quote over here. spot gold down about 5.6% or $8 3 to 1395. yes, if this were just the story, you could make up a couple of reasons why this might be happening, perhaps going down to the bubbles that does or doesn't exist in gold, perhaps going down, people liquidating decisions, etcetera. but then you look at what's happening in silver and i have to say, this is even more extraordinary. silver is down more than 10%. it is a huge move and silver, remember, being an industrial

metal. people always say, when you see a divergence in gold and silver, it's about the industrial cycle. it's about global growth process secretaries. the fact we're seeing equity sell-offs, a silloff in silver and back over here, a bill sell-off in brent and nymex crude, down 2%. almost below $100 in brent. 3.3% for nymex crude to under $89 a barrel. and it's not necessarily a dollar move. if anything, the u.s. dollar index is firmer, a little higher on the morning. so some interesting questions being raised by these markets. take a look at the debt levels this morning, as well. this isn't just a risk on/risk off move broadly across this space. just to reiterate, here is what's happening across european equity markets. it's pretty consistent. we're down about 1% or a little bit more across the globe. these are session lows, so it has been picking up momentum across the trading session. as we take a look at this, we are seeing a sell-off in the periphery of spain and italy,

but these are not major moves and certainly not the magnitude that may be suggested by the price action we're seeing in commodities and stocks today. 4.7% and 4.34% respectively for spain and italy. that's pretty much levels where we've been in the past couple of weeks. no major change in the repricing for what this means in some of the struggling debt crisis. this morning, 1.25%. that's not a fresh record low, but i wouldn't be surprised given the trading behavior that we're seeing if we start to retest those lows this morning. we're not starting the week off on a strong note. it will be interesting to see just what damage is being done to technical levels and to a lot of trading investment decisions given the size and speed we're seeing at some of the declines in these commodities. back over to you. >> all right. and watching gold for a while, friday kicked into high gear and then today, this is just amazing. and i don't know what the hell it means, kelly, but we will --

you know, i'm not going to say it, but, you know, the gold bugs that we were so sure it was going above 2,000, and it was so dear and we talked so much about, you know, what are you going to do with this when -- you know, i've traded my gold for cattle. long ago. i've got heads of cattle. i'm employing people. i've got leather, i've got milk, i've got so many things, so many uses, meat, steak. >> silver, gold, everything getting hit. cattle prices, i don't know where those have been lately. there have been some very strange things. >> but it's a producing -- you know, all you can do is sit around and watch your gold, right, or rub it or something. i'm not sure. anyway, china, eunice yoon joins us with the latest economic data. good day. that's all i'll say. good day. i know it's sometime over there. >> that's right. it's evening. but, ae yeah, the economic data

is the big story here. and the economic data was very disappointing. a lot of people were talking about how the gdp numbers for the first quarter came in at 7.7%. you guys were talking about how in most companies that would be enviable growths. here in china, we were all sitting around expecting the markets to beat inflation numbers of 8 pergs growth. the economy has been jacked up on credit. there's been a strong export growth. so even though the authorities have been turning on the credit taps, we didn't see the growth that we were expecting. that's why there was search huge disappointment in the market and why now there's been a bit of a debate going on in the discussion about the economic model and whether or not the investment is really puttering out. now, one sector that gets a lot of investment is the property sector. and the property market is really important not only for china's growth, but also for the world. and the authorities here have been in a constant dilemma, where they're really trying to reign in any possible bubble

without creating a bust. if you live in china, you buy and sell property in a place like this. it's a real estate center. every housing transaction for the city takes place here. these days, the place is crammed full of homeowners like joe ma. ma owns two homes. why do chinese people like to buy houses so much? >> there is no other way to invest your money. >> real estate is a popular way to invest here. but unlike other places, average chinese have few investment options. capital controls prevent most people from moving cash overseas while bank deposits give back a fraction of 1%. thousands of people have been packing real estate centers like this one to register the sale of their home before the tax kicks in. the workers here tell us that

they've been doing overtime to keep up with all the requests. to escape the restrictions, many are even turning to divorce. after the government property policy was announced, every part of the country started seeing a wave of divorces. this lawyer says fake divorces are a social phenomenon. divorce lawyer john lay recently helped a woman who confronted her husband on a tell all tv talk show shown here online. the husband convinced her to get a fake divorce to avoid the tax, but then ran off with another woman. the two people had a fake divorce, but in the end, there's no such thing as real or fake, he says. she lost her marriage and her wealth. ma intends to buy more property in the future, despite the government's attempt to clamp down on the market. >> trying to do that for ten years and never goes down.

>> and property investment growth for the first quarter did slow down, but housing sales skyrocketed, up 61% year on year. and i was not surprised to hear that at that real estate center. i asked a lot of people how long they've been waiting. some of them have been waiting for two hours, but had 200 people ahead of them because everybody is trying to avoid paying that tax. >> eunice, thank you very much. we'll talk to you again very soon. we've been watching those numbers that have been coming out and that's been pressuring the futures this morning. also watching a major sell-off in oil and gold. dennis gartman joins us on the squawk news line. these are some haywire markets this morning. what do you think is happening? >> first of all, i think there's a lot of people throwing up their hands, throwing positions overboard. panic is everywhere. the margin clerks seem to have taken control. and i think in gold, what you really have here, becky, is the fact that cyprus has been told they were have to liquidate some

of them gold to meet the bailout. if cyprus has to do it, i suspect spain, portugal, italy will be rumored to do it. that's been weighing on prices. it's one of those evens that come along once in a while. i've been at this 40 years. normally people say thief never seen anything like this. they don't mean it. i've never seen anything like this, i mean it. >> and gold prices, you pointed out this morning, just since friday we've seen a drop of $150 an ounce. >> yes. but -- go ahead. >> the sell-off coming from the cyprus bank, what does that suggest? other countries will sell gold before getting in trouble, too? >> i think it would be unfair to force the cypriots to sell and not have the others do exactly the same thing. i think that's in the market. i think clearly mr. paulson has himself a bit of difficulty with his fund. i think that's in the market. you've got crude oil falling.

over there, the backwardization was coming in indicating that there's more than enough crude oil to be found around the world to meet demand. that's weighing on the gold market. you've got the margin clerks with very sharp pencils this morning. here we are under 14. who would have thought it? not i. >> deppis, we were at 16 before any of this happened. and, you know, the central banks around the world were printing for as quickly as they could for the past two years. gold has been coming down. it got over completely loved, it was so dear to people. every person in the world was predicting -- it was for 2011 or 12012 they were predicting over $2,000 an unions. and, okay, so every day you hear that there's going to away nuclear war started by north korea, you have 85 billion in this country and japan in the the last three months is set out

on even more printing and it still dropped below 1500 or below 1400. so that's more than cyprus. that is a lot more than cyprus and is more than some central banks. >> joe, the question was, what has driven gold down in the last 24 to 48 hours? >> why did it peak a year and a half ago? >> because you probably had far too many people getting far too accepting of far too much central bank expansion of reserves. i think the central banks are probably pulling back on the expansion of those reserves. not a question. that's what i think. >> gold in dollar terms has been a horrifyingly bad, ridiculously bad -- >> the writing is on the wall. >> the writing has been on the -- >> and i'm not saying it's rosengren. i'm saying he's a metaphor. he happens to be the third story. when do you put a boston fed guy as the second story in the "wall street journal"? maybe it's a slow news day. but to put him there just

because someone so dovish is saying he can see the day when they stop, i mean, it seems like just slow -- instead of opening, you know, instead of turning on, on, on, maybe you're just starting to see a little bit of where they're starting to turn it off a little. >> i think the fed is clearly going to be turning off the expansion of reserves sometime later this year. the fact that they put it on the table, the fact that they've debated it is in and of itself debt meantal to gold. that's been the reason the gold market has not rallied, had been falling, had been put under pressure. but the question becky put to me, why has it fallen precipitously in the last 24 hours, i think that's another story. >> and what should we buy if there's a major geopolitical event? do you have any suggestions? >> government securities have been the only thing that i'll own. whether you like it or not, joe, that's been the best trade. people have given gary shiling and others a very hard time, but

that has been and probably will continue to be the best trade. we forget that down here, as we say this the bond pit having grown up there, the value of an '0111, the value of a one basis point move at these levels have such a greater price implication than the value of an '01 five years ago, ten years ago or when i started 30 years ago. you move yields one basis point, you get a big move in price. that's what's happening down here. people are still going to be moving to government securities. they have been moving to equities. that latter trade may be problematic for a couple of weeks. >> are you short long putters? >> what a great masters, wasn't it? >> yeah. everybody who is winning has one of these long -- >> i am such an old guard player, i gave up my persimmon wood only two years ago. i think mr. hogan would roll over in his grave if he saw people putting in this manner.

it's wrong. >> i got one of those and i had to shorten it because my stomach is -- you know, you have to keep it just -- i need one that's adjustable depending on where i am in my diet. but i think it's better to have to have it free swinging. and in a tournament like that yesterday, you're not going to win. that's why it separates the men from the boys if you can't anchor it somewhere. >> i caddied out there on the tour in the 1960s and i remember seeing mr. hogan and i can't imagine what he would be saying if he saw it today. >> i think you're right about that. and the same with the designated hitter. thanks. >> thank you, joe. >> thank you, dennis. we're going to continue to watch oil and gold and all of the other big moves today. again, equities are under a lot of pressure, too. but it's crude and gold that are in the spotlight right now. gold is down 10%. that's the drop of $169. right now, we're going to take a

quick break. when we come back, the senate's gang of eight preparing to unveil an immigration plan.

this just in, ergen, ergen, smergen, the dish is acquiring to acquire sprint for $25.5 billion. that has to include debt because they're offering $7 a share.

sprint is closed at 6.22. it's bidding 6.75, asking 6.85. at this point. it's going about a -- i think the market cap at seven would be about $20 billion. so they're calling this 25.5 billion dollar bid for sprint nextel. ergen as a combined company. he is using barclay's to financing advice. it's an informal offer. >> that's interesting. dish's offer isn't formal, but the company said it's being advised by barclay's, which is confident it can raise the funding. earlier this year, dish offered to buy a wireless carrier half owned by sprint. ergen talked about that, saying the debt was stacked against them because of a tangle of contractual obligations. but, wow, this has to be the

biggest move yet that carly has made back into the area. the hopper allows you to jump across ask through commercials. the story in the "new york times" today laying out how he has been one of the vial people in hollywood as a result of this. but he is a guy who knows how to shake things up and create a splash and he's doing that with this. >> he's crazy, i know, nuts. i don't know. yeah. >> he's a big thinker. this is definitely a big -- >> he's been called a big a lot of things. but big thinker is one thing. we'll see. speaking of the hopper, faber, wake up. faber. we're going to ralph his lazy tuckus out of the -- >> the sock is trading down. i know we looked at sprint. like it could open lower, it depends on where the bid/ask goes with that.

>> do we have his number? >> faber's number? >> give me faber's number. we just called his house? just call him. just roust him. wouldn't that be funny to have him actually answer the phone? david, cnbc. >> call him live on the air? >> "squawk box" here. >> hello. >> is that what's going on? yeah, he's got the phone off the hook. well, maybe he's calling sorkin as we speak. >> that could be. we're going to continue this watch this deal just coming out. by the way, we've already been watching a sell-off in commod y commodities. oil at this point, if you haven't seen it, has been dropping rapidly. it's down by author than 3%. it's below 88.50 at 88.42. gold prices, this has been a massive mover all morning long. that board, i don't know if that's right or not. is it down 6%? it's been down as much as 10% in the early trade this morning. we've watched it much lower, going up and down through the course of the morning. but right now, this board shows that it's down $92 to $1409.

silver is getting crushed. we're going to talk about all of this and more. by the way, it sounds like a minor move relatively speaking, but the dow futures are down by 70 points, as well. this is on some of the weakness that we saw. we're going to talk about all of this when squawk comes right back. i know what you're thinkin. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business. departure. hertz gold plus rewards also offers ereturn-- our fastest way to return your car. just note your mileage and zap ! you're outta there ! we'll e-mail your receipt in a flash, too.

it's just another way you'll be traveling at the speed of hertz.

nespresso. where there is an espresso to match my every mood. ♪

where just one touch creates the perfect coffee. where every cappuccino and latte is made at home. and where i can have exactly what i desire. ♪ nespresso. what else? welcome back, everybody. joining us right now is mark vitner. also joining us on set is paul hicky. co-founder of bespoken investment group. gentlemen, we are trying to make sense of what is happening in the market and this huge deal coming out with dish launching a

25.5 billion bid for sprint when you include in some of the debt. so it is a busy, busy morning. paul, tell me about what you think has been happening with gold and oil. why this sudden, huge drop? >> well, i mean, i think part of the oil decline responsibility is china's weak economic data that's going to have some weakness. but the whole commodity sector overall has been weakening. part of the longer term trend we see is commodities being strong. the way we look at dpoeld, it's a worry. people think it's a worry for the markets. you have to realize that the whole gold bull market we've seen over the last ten years has occurred over a period where equities have underperformed. i wouldn't take this gold sell offas too much of a worry. >> but equities have underperformed, do you think people are realizing that and waking up based on things happening recently? i think if you look at the market, any peak -- there's always reasons for it. and people are always waiting for the catalyst for it to happen.

the exact reason tends to be -- it can be a little event, but it's part of a greater thing. the straw that breaks the camel's back. >> but you think this is the beginning of a longer trend? we think commodity res going to underperform and it's all because of the strong dollar. that's going to be negative for commodity prices. so that's going to -- you know, but as long as the dollar is strong, we don't want to be avoided. >> mark, those numbers out of china were concerning. it sound like great growth when you say 7.7%, but everybody is looking for 8% and this is worse than the 7.9% we got the last quarter. is this a signal of china becoming a much bigger market that is much harder to move the needle on. >> well, it is the place where we were seeing most of the growth the last few years. it was a real standout. and there's no question that things have been cooling off. and i kind of suspected we would get a weak number because we had seen so much weakness in global commodity prices, particularly in industrial goods well ahead of this number. so it doesn't come as a total

shock. i am surprised by the move in gold. i think there seems to be a lot of faith that the central banks are going to be able to magically crank up qe. i'm not sold on the inflation outlook. i think inflation is likely to surprise on the upside two to three years out. certainly it's not going to be a problem this year. >> and 24 terms of what that slowdown in china means for the rest of the globe, does it affect your guesses for where the u.s. economy is headed? >> well, we reduced our export growth some time ago, so we don't is have a lot of export growth out there. when we travel around and meet with companies, it is really surprising over the last three or four years how many sell more in china than they do in the united states. china has been growing spectacularly, so folks that used to sell into the u.s. housing market are now selling more in china than they do here.

i think one of the ways you see that in realtime is looking at industrial commodity prices. >> mark, when you start looking at market moves like this, does that change your outlook on anything or do you sit back and wait and see writ settles in all this? >> it makes me nervous. you see big drops in oil prices and oil prices are so important in the industrial world, it's just good news on the surface. it should give consumers a little bit of a boost. but it's also a sign that there's something not right out there. another number that we're watching today is nahb home builders index. and it's been below 50 the last few months. even though everything we hear about housing is that it's booming. but the number is not above 50, which means more home builders think that the housing market is bad today than think it's good. that's just not consistent with a -- with a boom in housing. so there are a couple things out there that just don't seem to be right, a couple pieces of the puzzle that just don't seem to

be in the right places. >> paulie, do you have any nerves like that when when you look around and see those moves? >> this is the biggest two-day move. it's about 8% in the last two years. in the last five to ten years, we've seen a lot more moves like in in commodities and the overall market. >> but the vix has been down so much. >> longer term, vision is. but you see these big day-to-day moves. you see oil is volatile. with 5u89 concerns that the fed is going the take its food off the gas, we have seven straet straight years of sub-2.5 growth and prospects fort further growth down the road fought looking that much better. i don't think we need to worry about the fed becoming aggressive to the tightening out here. >> paul, thank you very much. mark, it's great talking to you. so that 25 billion is part cash

and part stock, 25.5. they're talking about $4.76. we're talking about dish, buying sprint. an informal offer to buy sprint, $4.76 a share in cash and this is like people that memorialize pi, 0.05953 shares of dish. add that together and it comes out to $7. 4.76 and it's 7, it must be -- did you do -- >> no. it's written right here. >> oh, all right. because yuler, the guy on google, you could use the yulerco efficient to figure that out. >> yuler. yuler, yuler, do you remember what was happening in october? >> yuler. >> we didn't listen to a lot of what faber was talking about

finally with clear wire. >> and i wish i would have listened to it a little more closely. >> sprint was supposed to be acquired by japan's soff bank, 70% of it for $20 billion. that was agreed to in october. that seems like a long time ago. anyway, the phone just rings and rings at faber's house. i think he's got it off the hook. i think he's got it off the hook at this point. as soon as he does that, 6.43 -- >> ergen's point is that that puts it in play. you can do these things, jump in on it. >> coming up, we will continue to call faber. we're going to continue to -- because this is a merger and acquisition that he loves, lives for this stuff. we're going to continue to watch oil and gold, as well. futures at this point are indicated -- call me maybe. who sings that? never mind. anyway, we're calling him. stay tuned. it's a busy monday indicated down about 57 points this

morning. we'll be right back.

welcome back. if you're just waking up this morning, check out gold. you probably saw, if you follow it, anyway, what happened on friday. and today we've been below 1400. it bounced back above 1400, but down $91 after a huge down draft on friday, as well. and you can see, if you look closely, you see the highs at 1800 and then it would go down to below 17, back up, back down, back up, so higher -- lower highs and lower lows and then it broke through that. remember when it broke through the moving average and it's been -- there's been nothing

holding it up since then. you can see next stop we're going to have to get a different chart if we eventually go below 1350. queer going to have to move the x line down. also, oil, going the same way, which is not surprising. you for years have been able to measure gold and oil terms or oil in gold terms, although it broke down recently. but oil at this point, 88.69. and we would actually probably welcome a little bit of weakness in oil given the consumer and the news we saw last week on the low end with the dollar stores, consumer confidence, michigan, everything else. >> it was interesting, mark vitner just pointed out, he said it does offer help to consumers, but it's a sign that there's something not right out there. and what that means for the overall economy. we have a lot of news this morning. when we come back, we're going to tackle some of that news with our guest hosts this morning.

we're calling him in early. bob doll will get the chance to talk currencies, commodities, stocks and bonds. we will ask him was going on, what he thinks is happening. squawk will be right back. my mantra?

trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms;

decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron. acceler-rental. at a hertz expressrent kiosk, you can rent a car without a reservation...

and without a line. now that's a fast car. it's just another way you'll be traveling at the speed of hertz. welcome back, everybody. this morning's top corporate news. dish network launching a $25.5 billion bid for sprint. this is coming out of the blue.

it is a cash and stock deal. $4.76 in cash and $2.24 in dish stock for every share of sprint. this is coming in and stepping in. he said, hey, sprint has offered to come through on this entire situation. earlier this year he made an informal option for a company half-owned by sprint. this is to try to be able to offer a triple play. joe, we had ted leonsis on the set. >> his point was there are 3 million or 4 million people with tv sets that have no cable and no -- not even tv sets. they're getting all their info through the internet. i said wouldn't that just enter mediate the tv companies and

cable companies. and he said you're going to have to offer the triple play. you have to do wireless, you have to do data, and you've got to do tv. >> definitely a play for spectrum for jurgen to come in and do this. you may wonder what it means for the broader industry, the type of competition that comes in. it means lower prices all the way around. quickly talking to people behind the scenes. sprint was already in a position where it was slashing prices to win back market share. as a result, sprint is looking at margins like 15% compared to verizon who may have 49%. you can understand why anybody who is not able to offer a triple play might be interested in doing that. sit expense toe it is expensive to roll it out on a national level.

dish's offer isn't normal. but it is confident it can raise the funding. $25.5 billion dish offering to buy sprint. >> friday, the justice department said that at&t and verizon shouldn't be able to block smaller callers from getting the spectrum. even though they're much smaller they should be able to bid on these auctions. that was just friday that the fcc or justice department said that should be part of the equation. our other top story this morning, gold and oil. our guest host is bob dahl. when things move like this, bob, we know about dislocations in markets. there's technical things too. it broke below -- a long decline and broke below the average. what would cost $200 in two days. >> that's incredible. technically it's always been in that zone for quite some time.

>> been coming down. >> of course you would have broke the bottom. fundamentally it's just a sign. maybe belatedly. the world is healing. why did the gold do so well? the dollar did so poorly. the world didn't fall apart. inflation is not a problem. i think that's what you're finally seeing. >> a tech tonic shift. we should point out it's affecting others's markets as well. >> the risk we have to be careful doesn't signal renewed deflation. are we worried about slovakia? >> how do you spell it? >> if you think it's been a busy

monday morning, you haven't seen anything yet. quarterly results from citigroup. we have it all covered. i know what you're thinking... transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right.

you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business.

the market is in focus. from earnings to economic data. we'll get you ready for the trading week ahead. today's guest host bob dahl and chris whelan. can what you tweet help advertisers? an effort to get you to click. plus, a rising star in private equity. meet the man behind kps capital as the second hour of "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" on cnbc. there are a lot of moves in the markets this morning. futures are indicated lower. dow futures down 71 points. this is just the tip of the iceberg with some of the moves we're watching today. part of the reason for the weaker equities even as we come off the second best week of the year for the s&p 500, fresh economic numbers china has been grabbing attention. it grew 7.7% by the first quarter. it sounds huge. it was less than we had been expecting. 8% was the number we were looking for. the weaker than expected figures is part of the reason we have watched commodity prices get knocked for a loop. dropping near $88 mark. down by more than 2.5%.

earlier this morning we have seen it die down 3%. part of the concern of what's happening to the global economy. maybe the gold market is the best place to look at this. it has dropped off a cliff. it's down 6%. we were looking at numbers earlier showing this down 10%. we have watched gold trade. 13.85 is the weakest i have seen. it's down $92.50 to $1,408.90. we're watching this very closely as well. if that's not enough for you, get this. dish network is launching a $25.5 billion bid for sprint. it's worth $7 a chair. this offer actually represents a 13% premium to buy sprint.

it has declined so far. we have much more on the story. you get not only satellite but maybe internet and wireless cell phone service as well. by the way, if you hadn't noticed it's tax filing day. you have until midnight to get your tax returns filed. you can get an automatic six-month extension if you file a form. it only gives you extra time to follow, not to pay any taxes that are due. we have a number of big data points out later this week as well. today we have the empire state survey for april. that's out tomorrow. we have march housing starts. consumer price index. thursday, jobless claims number. plus, the commodity selloff. that will be impacting the market. all of that after the s&p 500

and nasdaq posted their second. >> should 5% appear too small? be thankful i don't take it all. should 50% appear too small, be thankful i don't take it all. and we're getting -- i'm not convinced that's not the price. a long way from a masters champions is over. adam scott defeated angel cabrera in a playoff on the second hole. 10th hole but second playoff. he is now ranked number three in the world. i'm seeing it called anchor ranker. anchoring a putter against your chin or stomach or whatever. a lot of major winners, bradley,

this is all talk whether you get an advantage. i guess everyone can use one. >> it takes away an advantage if you have nerves of steel. >> right. you have to have nerves no matter what. it does help to anchor it against your big fat stomach. it doesn't help me. i can yip that. i can yip the one on my belly. i can yip left hand low. it's another big week for quarterly results. senior portfolio manager >> joe: bob dahl and chris whelan. chris, you haven't told us, at least not yet on air, what's going on. what do you think is happening? you should know something about this. >> bob said it.

the world didn't end. gold had been a refuge. >> the way i looked at it i thought it was you have global debt that was so high five years ago in private sector. that was moving to the public sector. the only way they deal with it is by turning the printing presses. if they used it for uncertainty. >> i think they used it as the world's fourth currency. i don't like the yen, dollar, aour roerbgs i'll buy gold. >> for uncertainty, as we said, they used u.s. treasury. >> it was almost like the dotcom days. when you go and see it retail in the way that gold was the last few months. >> and it was momentum play. a lot of people didn't have return anywhere else. generating their own return. it's a relatively small market. >> unless you're in it for the

the long term. >> you seem to be hanging on to that. >> inflation is a steady, persistent problem. see, the gold bugs make a mistake thinking we're going to see another enormous surge that we saw in the 70s when the demographics were very different. but every year you're losing grouped to inflation. this is what kills consumers. >> to protect against inflation, i would love to why gold at 300 an ounce. >> you're thinking about it much more deeply than a lot of players. >> thank you. >> it's like the rental market. people in it for the long term and people who are in it to flip the house. >> you better be having your kids in it if you're talking about buying it at 1900 to get a return at that point. it's the here after.

>> if you really index gold to inflation -- >> well, do you think it signals an inflection point in central bank easing around the world? they're just starting -- >> i think the evidence is lack of demand. i think the real theme is simply we're not going to have the kind of demand we have had in the past with enormous credit expansion. gold is an industrial metal. you know, basel you can use as collateral. it's actually a capital asset. for me, when you see weakness in china, they were using all sorts of strategic metals and now they're not. >> we should keep bringing up silver too. gold is down 5 or 6. gold is used for making semi

conductors. >> and copper as well. they have been down sharply. >> a lot of times you don't know what to do with equities when commodities heads south. you can think, wow, certainly low oil prices is bullish for an economy, right? although you don't know what it's indicating. you expect equities to go with commodity on breaking under the support? >> big moves in commodities is not great move for stocks because it indicates dislocation. obviously there was a period where commodities went down. that's the world slowing healing. very slow growth. thank you monetary authorities all over the world for helping us out. that's how stocks can go up. >> this is the thing. with all the money that the fed has printed, you're is seeing no

credit growth. look at housing. supposedly up 10% last year. we think it was mostly an adjustment between voluntary sales, distressed sales. but look at the banks, they're not lending money. >> now that we have japan, it shocked people even more than a couple weeks ago. >> right. >> is there any shoe left to drop that would extend this huge easing cycle the world has been? >> ecb could come out. >> they could? >> they're very tight. >> 75 basis points. >> japan is done. we're not going 100 grand. >> they probably need to. my guess is they will. >> that will strengthen the dollar. >> if you look at bank earnings, what's starting to hurt banks now is the earnings and assets. everybody has interest margins

falling because of qe. the net net was positive for leveraged players. all savers are penalized. corporate treasurers weren't making anything on cash. i think that hurt spending. fed policy is deflation ear now. if you take the income away, you're taking a big component out of consumer activity. >> all right. what are we doing next? shining star? >> end of the world. >> another big story we've been covering is the dish bid for sprint. $25.5 billion deal. we have breaking news on this. chris king will tell us a little bit more about this. he's an analyst at steeple. this is charlie's latest move to go after a way that he can offer

the triple play like anybody else. what do you think of this deal? >> it's certainly a surprise this morning. charlie has a couple of things going for him. he can sender combine with sprint and clear wire. he's also sitting on a pile of cash, about $10 billion. he would have to raise a significant amount of debt to pull off this deal. but they feel pretty good about that situation. at least given the current capital markets right now. so i think at first blush he has a good chance. i think a lot will depend on how soft bank is is for sprint and particularly clear wire. a lot of people speculated their ultimate goal was really getting their hands on clearwater's 2 gigahertz spectrum. it will be interesting to see what the expanse is from japan

on this. good news for sprint shareholders, though, in the near term. we could have a bit of a bidding war on our hands. >> just trying to handicap it, who do you think is more desperate? >> you know, it's tough to say. dish certainly has limited options here in terms of getting a wireless network up and running on its own. it would take a ton of time, a ton of money. i think certainly hitting the ground with a fairly robust wireless operator would help sprint a great deal. i'm not sure they are quite as desperate. they would like to have a global eco system. and that was certainly part of the rationale going after clear wire and sprint. as i sit here, my initial take this morning is that dish probably has a little bit more

incentive to pull this off. they have much deeper pockets than dish. >> you think about it traditionally from a consumer's perspective when you start seeing competition like this, it would normally mean consumers can expect lower fees. someone seu spoke to this morning suggested that may not be the case because sprint has done so much to win back market share that it is operating at an ebitda 13% versus much higher numbers than others in the industry. >> right. i'm not necessarily sure this changes the dynamics of the industry a whole lot. sprint would still be there. either way under soft bank or dish as a somewhat viable, you

kno know, third player in the market under at&t or verizon. they still remain very difficult regarding who is ultimately owning this asset. i'm not sure the overall dynamics changes anything. you have t-mobile who really has been much of a price leader as sprint has been the last couple of years. if dish does wind up with sprint or this goes a long way down the road, there have been rumblings that tissue could be tied up with t-mobile usa. so that would certainly be put on the, and in fact, is, put on the back burner right now dish is trying to take down sprint. this could stimy those plans at least here until this situation is settled regarding dish and sprint.

>> chris, you make an interesting point. dish needs this strategically more than the first bidder but the first bidder has deeper pockets. do you think there could be more rounds to this? >> external could be. soft bank and its ceo, he is a very interesting guy. i'm not necessarily sure what his reaction to this would be, whether he really wants to chase the sprint asset, whether he really needs clear wire true dot five spectrum that desperately -- i don't have a good sense of that at this early stage. you know, clearly sprint is trading so far above where it was 12 to 18 months or so ago. anyone that winds one this asset is going to be playing a premium. a lot would argue unjustified premium for the asset, particularly as you get over $7 a share. but, again, i think the strategic asset that sprint has

in place with their own spectrum as you get a more mature wireless industry those assets do become more valuable for players like soft bank and like dish who are somewhat desperate to get into the u.s. wireless industry. because this industry is not growing organically any longer. you really need an asset that's already in place to really hit the ground running. chris, thank you very much for calling in today. >> thanks. when we come back, a shining star and an environment that has been a difficult one in terms of raising money for private equity.

down about 70 p. procter & gamble raising its quarterly dividend 7%. the payout goes up about four cents. up to just over 60 cents a share. 52nd consecutive year that the company has increased its

dividend. and that is not something that most companies can say, especially after what happened 10 years ago. >> and news pending medical testing equipment maker. and subject of takeover speculation for weeks. and reuters said over the the weekend life chose the the fisher bid of 13 billion over two competing bids. that's up six points or so. >> kps partners announcing they have closed the special situations fund to new investment. that makes it one of the fastest fund raisings to date. joining us to talk more about it is the co-founder and managing partner of kps capital partners. mike, this was interesting. you came out and were looking to raise $3 billion. you announced this in a room full of investors saying this is something we're thinking about. a show of hands had gone up.

you raised the money right then and there. >> thank you on behalf of my partners and my firm for having us on. it's a real privilege. at an our yann meeting in florida a week before thanksgiving we announced we were going to raise the fund. we knew we had raised the capital which was normally launched january 31st and it concluded this morning. from start to finish it was three months. we were humbled by that. >> you were hugely oversubscribed. $12 billion that people wanted? >> generally we don't comment on how heavily oversubscribed we are. there have been reports to that effect. we had seven years to invest that capital. we will do that methodically, prudently like we have the last 20 years. >> this is interesting too because it has not been great

for those trying to raise capital. there are the haves and the have notes. >> yes. >> part of it may be because of your particular specialty. you focus on industrial companies, trying to turn them around and fix things up a little bit. >> yes. one of the things we're really proud about is that we have been able to achieve the success that we have had the last two decades by investing in manufacturing and industrial companies. every morning when i listen to squawk there's all this particular about telecom media and the industries. but we have been able to knock the cover off the ball by investing in manufacturing and in industry. and we're very proud of that. and we believe, and this is the key differentiator. we believe superior investments are achieved by radically transforming the business and operations of companies rather than playing with balance sheets. we see value where others do not. we buy right and we make

businesses better. >> is there a manufacturing resurgence in america? is that real? >> it's going to take longer than most people expect. but it is so exciting. first of all, we are on the verge of being a hydrocarbon some power. if the government would just get out of the way, the effect on manufacturing is going to be unbelievable in this country. just so you understand, and i know you're from ohio, joe, there is steel being manufactured in youngstown, ohio after a 30-year period of absence. what's going on is really unbelievable. over time it is going to have a dramatic impact. becky, i want you to know i do agree with you. there are two camps from the energy front. there's the export camp and the camp that says we -- >> very selfish. >> i believe it would be lunacy to export a god-given natural competitive advantage that we have. what we need to do is built out

our natural gas infrastructure for class 8 and class 6 trucks. that's what we have to do. we own motorcoach industries, the largest manufacturer of over the road coaches. we make natural gas buses. this is the wave of the future. i'm a very long-term bull on manufacturing on american manufacturing on the american worker. >> if the government can get out of our way. do you think they will? stkphreu hope so. i cannot understand why we're not building the keystone pipeline as we speak. it's lunacy. i really can't understand. >> we will have you back to talk about a lot of these issues. >> thank you. >> coming up -- thanks for watching. exporting -- who is the k? you're the p. >> gene kaylan.

>> it wasn't kernen? >> no. i'm available. coming up, where prices are headed in the markets. a slippery slope. down under 90 now. plus, breaking news from kayla on jpmorgan. revolutionizing an industry can be a tough act to follow, but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. nespresso. where there is an espresso to match my every mood.

♪ where just one touch creates the perfect coffee. where every cappuccino and latte is made at home. and where i can have exactly what i desire. ♪ nespresso. what else? ♪ a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner,

you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week.

welcome back to "squawk box", everybody. in our headlines this morning, there are a lot of them. the selloff in gold continues. metal sliding to its lowest level in two years with weaker than expected numbers help to go ex asser bait that slide. he said he has never seen anything like this. right now the gold price is down just over 6%. earlier this morning as much as 10%. it traded 13.85 an ounce. this was at $1500 last week. a massive drop off the last few

trading sessions. it's affecting not only gold but silver and copper prices. dish network is over $25.5 billion for sprint. dish says the cash and stock deal is worth 13% more than a takeover deal from japan soft bank. sprint hired barclays to advise it. actually dish has hired barclays to advise it. they are taking a look at what has been happening. barclays believes dish can get the money to come forward with that deal. again, a cash and stock deal. >> thermo fisher $76 a share. we have more news this morning on jpmorgan. pension fund sending a later to jpmorgan shareholders. kayla, what do you have here? >> a group of pension funds representing just about 1% of

jpmorgan shares said earlier in the year they were going to file a proposal to splint chairman and ceo roles. this morning we're getting actual proposal that will go in the proxy. it happens in just about a month in tampa, florida it's interesting to look at some of the reasons this group is citing. first and foremost saying the management of a company and leading the board of directors is a full were-time jobment both are full-time job in and of itself. the second reason it is incumbent on jpmorgan and its board to restore credibility with regulators. they have been in the center of $16 billion worth of litigation and saying that a letter that actually came last july from the occ, which is the main regulator downgraded the company's management rating on the back of

some oversight and lapses of oversight there. this letter actually sights that confidential letter saying the capabilities of management or the board of directors may be in sufficient. that was the letter from the occ in downgrading the company's rating which is a very big deal. and it cites a couple analysts who agree with this position as well. it is interesting to see this come to the floor. last week or maybe even the week before we saw a similar proposal at goldman sachs actually get negotiated. the funds and the management got together and figured out, okay, how can we reach an agreement on this. we did reporting and they reached out to jpmorgan last fall. after much back and forth the corporate secretary got back and said, actually we're not going to make our board of directors available to you. >> so you go ahead and send in what you would like the worry to

be. we're not going to worry about it. which raises the question what are the odds this could pass. >> jamie dimon asked about what would happen. and last year a similar proposal was brought again. even though it was really just a formality, 40% voted in favor of it. he was asked what if 50 voted in favor. of course the scales would tip against him. and he said over and over again this is an issue with the board of directors. i leave it in their hands. there's enough time between now and may 21st to come to agreement on this. i'm sure you have thoughts as well. >> i think large public companies should always divide the chairman/ceo role. they are responsible for governance, for hiring and fair. by definition the ceo reports to the board.

it's that check and balance that is in the basics of american society. but it's also part of the guidelines for banks from where it comes from. i think especially for banks you're going to seat regulators insist on dividing the roles. we only have wells and jpmorgan left. the other two have done this. >> if it's done by a vote of shareholders rather than consensus that they reached together. >> if the board is smart in this case they have taken a lot of damage because of controls issues. that's not good with federal bank regulators. they almost have to react. my gut tells me they will impose an outside chairman. and then you will see a transition. >> they had a lead independent director. >> right. >> former chairman and ceo. tough as nails. really tough guy.

he rents a good challenge to jamie dimon. you look at jpmorgan's performance and some of the headlines versus bank of america. >> i think they probably have good governance now but they have had such ugly headlines. they will have to formalize it. dimon said himself they are very active and effective. but they misgamble. look, we messed up. this was a risk position. it wasn't a big number. jp has westerns and losers every quarter. it was in effective communication i think at the end of the day. >> thank you very much. >> so you think not just banks? you think everybody should do this? >> i'm very militant on corporate governance. >> it hasn't helped in the uk. if i'm a shareholder i want

someone to be challenging senior math. >> it hasn't helped in the uk. it's been abyss mal. it depends on the chairman and the ceo. i think you'll get great performance at citi with someone like mike o'neill. that's the post exciting. >> it's not going to be -- five years from now you'll still have the majority of companies and the u.s. will have chairman and ceo. >> i think it's more about the banks and the regulation, financial institution. everything we have seen. if you're talking about executives who are owners, that's different. >> you wanted to do the 75% tax rate like france?

>> no, no, no. come on. who are you talking to? >> all right. if you have any comments or questions about anything you see here, e-mail us or follow us on twitter. we have been watching huge moves in commodities. the price of gold right now is still down by about $95. 14.06 an ounce. this comes after it's been down by as much as 10% this morning. it's traded below $1400. it's not just gold. it's silver, copper, any of the industrial metals following around this? check out mining stocks. barrick gold down 1%. [ driver ] today, my ambulance knew all about a bike accident,

just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. and it got his okay on treatment from miles away.

it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before.

welcome back. a lot of cross currents today. oil below $90 a barrel. the yen is up against the dollar. and the euro being helped by a treasury report saying that it would watch japan's policy to ensure they weren't competing

for a competitive advantage. alan good, analyst at morningstar. in new york, boris klosper. >> good job. >> still sticking with that last name even though it's very difficult for us, boris. >> still sticking with it. >> partner and managing director on the bks. just in terms of what we're seeing in metals. >> right. >> and currencies today, since it's the same thing, basically, what do you think happened to gold last week. >> here's a fact i just saw before commercial break. over the last 10 years they have made quarter of trillion dollars. so i think we may be seeing a little bit of a reverse here as commodities definitely start to come in. i don't know if this is the beginning of a secular trend down or not. but certainly tonight or today we're seeing correction in the commodity currencies. it was very interesting. last week it was about the trade. they were running wild.

today the exact opposite. everybody is getting slaughtered because of this down draft. >> does it say anything about this incredible period we have been in? >> does it say that we've -- the inflection point has been passed finally? >> i've been watching this morning. i disagree. i don't think the fed is done. i don't think we have reached that point yet. >> they're not done but they're not going to say, okay, we're going to 100. the next thing they do is coming back from 85, right? >> probably. they may stay at 85 for much longer than everybody thinks. if this is a spring stall that turns into a deeper slowdown. it may actually be a much longer period especially if yellen is the next fed chairman.

it may be a little bit premature. >> allen, what in the oil markets in supply and demand dynamics, what in the oil markets accounts for what's happening in crude or nothing? it all has to deal with in what we're dealing with in the other markets? >> certainly it is slowing demand. u.s. probably has sort of maintained its demand at this point. it is certainly down too many barrels from a few years ago. you have slowing growth in china as well. increase in supply here in the and you say globally as well. so really we're in a situation where demand is slowing. >> but it has to do with the china story and with global -- the prospect for the global economy. that's what's happening? >> absolutely.

europe is slowly. u.s. is just moderate growth at best. china's growth rate is still there. meanwhile, u.s. adding a million barrels of production each day. you will see a lot of crude oil in the market that the u.s. is no longer buying. it will pull out pressure as soon as supply is ult greater than demand in the short-term. >> that's actually hopefully a positive sign. >> right. >> it offsets all the of the payroll tax. exactly. >> the new trillion dollars, obama care taxes, all this stuff. >> right. >> it would be nice for consumers. they were feeling the effects a little bit. >> i totally agree with you. that can be our form of salvation going into the summertime as long as oil prices stay relatively low. >> a lot of the restaurants we saw there, they are definitely feeling the effects of the payroll tax or something, right? so this would be a nice tax

break that we might get with oil. especially if it's in the low 80s. >> absolutely. below 90 this morning. they came out last week and had a rather i guess positive forecast or lower gasoline price. ultimately, even though we have weaker demand, lower supply, you ultimately are going to need relatively higher prices to continue to support that supply increase. if you think about being below 100, you could see opec do something. the saudi minute sure mentioned $100 sounded right to them. if we see the spread widen out, suddenly some of this oil production may not make sense. if you get down in the 80s or even higher 70s. the down side may be protected given ultimately you need the higher prices to support the production that's coming on line. >> the whole commodity complex is down today. i notice that natural gas,

however, is up. is there a relationship there anymore? >> between oil and natural gas? >> yeah. >> certainly not here in the u.s. that die verged a long time ago. 6-1 energy equivalent doesn't make sense anymore. ultimately we think natural gas prices have to move closer to 5.40 to sustain the marginal production. coal and gas switching, the ultimate move back to coal. it really doesn't exist anymore. >> do you think we're going to see any seasonal effect in oil this summer or the combination of greater efficiency.

we're down here. it's remarkable given where we were three months ago. >> we're still above $4 here in los angeles. i'm not sure we will see those levels any time soon. certainly -- the seasonality will continue to be there. you will see lower highs and lower lows in that sense. so every summer you're going to get the uptick. if you get weaker prices you may see demands step up that much more. we have ultimately hit our gasoline demand peak in 2007. since then, total oil demand is down 2 million barrels. we may flat line for a couple years. hybrids, greater efficiently, less people in the workforce. you will see lower gasoline demand. >> one thing i noticed about commodity is from a speck particular point of view. they overshoot to the up side and down side. it's probably going to mean oil

will go into the 70s. that will hopefully be good on lower gasoline price. that will off set and create a positive macro flow into the summertime. >> great. gentlemen, thank you. allen. >> thank you. >> boris. did you see these snails? rat-sized snails that eat through stucco. is that not the grossest thing. >> rat sized -- >> snails invading florida. eating through the stucco. >> can you pick them up? >> i guess. would you pick one up? >> everything grows bigger in florida. >> a little salt.

>> they get stuck. >> it sucks all the liquid out. pour salt. >> what is that joke? something riding on the back of a snail? i can't remember how it goes. i don't know. >> coming up -- what's it say as it is riding on a snail. wee. >> must be from ohio. >> coming up, much more on the dish offer for sprint. oh, whoa, wow. david faber, we found him. 7:49. david will join us on the phone. he wasn't answering his phone. he wasn't responding to e-mail. he was going to say he was making calls about the the deal. plus, city will be reporting. you still have time to play

armchair analysts. vote now on our facebook page. we'll reveal the poll results after the numbers hit the wires. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me.

i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine. omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like a pro.

yes, you could. but i wondered what a i tcustomer thought? is great, hi nia... nice to meet you nia, i'm mike. what do you drive? i have a ford explorer, i love my car. and you're treating it well? yes i am. there are a lot of places you could take your explorer for service, why do you bring it back to the ford dealership? they specifically work on fords. it seems to me like the best care. and it's equal or less money, so it's a value for me. get a free brake inspection and

brake pads installed for just 49.95 after rebates when you use the ford service credit card. who doesn't enjoy value? welcome back, everybody. in corporate news, faa is ordering an inspection of more than 1,000 u.s. registered boeing 737 jets. the faa says it could cause pilot toss lose control of the aircraft if it actually fared. air worthiness directive calls to for improved pins.

still to come, city is set to report. numbers at the top of the hour. the actual numbers and the market reaction just ahead. stick around. "squawk" will be right back. revolutionizing an industry can be a tough act to follow,

but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business.

i'm not talking about snails. >> stop. >> i will talk about them later. i found out where they're from. it's hideous these snails. tony is hip to this.

>> stop, stop. >> people are talking about it. coming up -- i'm going to tell you where they got them. maybe from a ham sandwich. >> please. let me know if we have earnings from citi. >> that's my read. >> read it then. >> earnings from citi. ahead of the numbers, down 61 points. we're also watching crude prices. check out gold. it was a snail riding on a turtle. it says wee! we'll be right back. [ penélope ] i found the best cafe in the world.

nespresso. where there is an espresso to match my every mood. ♪ where just one touch creates the perfect coffee. where every cappuccino and latte is made at home. and where i can have exactly what i desire. ♪ nespresso. what else?

only hertz gives you a carfirmation. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz.

welcome back, everybody. citigroup out with first quarter results. city came in with earnings of $1.29 a share. that compares with the 1.17 the street was looking for. revenue a little better than expected. >> stocks up 45.17. and that chart looks better. but just remember can you say 4.5? because that's what it is. it used to be 58. it's at 4.5, whelan. are you happy with this, though? love the new guy.

>> i think citi has the most interesting up side. >> where could it go? it could double from here? >> they have to finish working through city holdings. >> you didn't like tandem. >> i didn't. i was pretty vocal about it. mike o'neill fixed bank of hawaii. it was one of the most problematic. >> that doesn't seem like any it has any relevance. >> well, it does. what are we going to do in the future? the problem was we had a news story every month. i don't think he could clearly focus on just what it was they were going to do to drive value ultimately. i hope city is going to, as i say, get through the legacy issues. they have a bright future ahead if they want to do certain things better. for example, mortgage. they are number 4, number 5.

>> michael corbett, ceo, has comments about what's been happening at the firm and larger environment. citi benefited from results. sustained momentum in investment banking, continued year over year loans. remains challenging. we are sure to be tested. >> and mail. you have to get mail on the line. >> they didn't go bankrupt but they goat keep all their tax stuff. you're happy about that? >> it's just the way washington works. look, i think the treasury could have done something different with tax assets in a lot of different institutions. fannie, freddie, aig. if you want to get investors to come back, you have to leave it in the bucket.

>> what do you think about city and some of the other big bank stocks. >> i think the balance sheet improvement still has to be added. still more to be cut. where does top line growth come from? i scratch my head and don't really know. >> this is the whole sector. there's no visibility. it's partly pause of the fed. partly, frankly because of lack of demand. the banks are stretching to go over your traditional mortgage company. very short duration because of basel 3. they have a much more, as you were saying before, capital markets, trading. these are all the businesses that has driven them.

do you rebuild subprime. we don't have household finance anymore. there's a whole raft of nonbank competitors that are gone. under basel 3 you can see them go back into the area and do it right. >> i think you're nailing it on the banks as a whole. if they can find a niche, a particular bank, what they're really good at they can start doing better. then you get some revenue growth. >> absolutely. look at capital one. same issue. they are starting to spent more money. >> it saves some of the banks if they don't have 30-year fixed mortgages. >> well, you can in basel 3. you get penalized. >> would you want to be a bank holding on at this point? >> if it has an average life of seven or eight years, i think you can manage that. we're telling banks not to hold mortgage services rights. they are going to sell them all to us.

>> people said after what happened that they aren't going to print money like they used to. they have to go back to being bankers. make sure they get repaid on loans. they can get revenues the way they used to with the spread. >> because you don't have off balance sheet finance. that's what drove the bubble. >> can't you get back to borrowing low. >> you can but that's a very boring model. there's a lot of growth in that model. >> banking should be boring. when did it become citigroup? >> he had never been at citi before? >> i don't believe so. >> you know, the first wave of -- >> look, i like performance. when somebody takes a misdirected institution and says, hey, we should own the island of hawaii, that's a good

idea. >> the first wave of snails in florida. they d. they came from hawaii back in the '60s. some kid brought them back in his pockets. these probably came from eggs on a ham sandwich. >> okay, stop. stop. >> apparently they are so big. they respond to humans. they look at you and pretend they like you and communicate. they're there. but they think may have been used in santoria. >> snail gets mugged by two turtles. police asked what happened. he said i don't know. it all happened so fast. >> that's a good one too. we can talk about this deal. that took forever. let's get a check on the markets first. then we will get -- u.s. equity futures down 58. weaker than expected. people thought they might do 8%.

economists think that, you know, that could have been a short-lived rebound in china. they thought they were back on track. now back down. that is helping to knock commodities for a loop. lowest level in four months. gold below 1400 for a while. it's fallen off a cliff. now down $100 in two days. following a big selloff on friday. he's finally here. another story. people who need people are the luckiest people in the world. but once this hit we were falling you. >> i was -- i think i was awake. what time was it? >> like in the 6:00. do you have an unlisted number? >> no. the phone was in another room. i was getting ready for the day. >> did you have any idea -- remember when we used to talk about clear wire. it was so boring. >> yeah.

>> there was a reason for doing it all. it all made sense. charlie jurgen brought it to this is really interesting what's going on. what does this do for him? put him in triple play business? >> it's a great question, what is charlie ergen really after? 8 to $10 billion worth. it is spectrum sitting there not being used. it's part of some strategy. clearly you could make a case that he believes that in i don't know how many down the road people will be consuming an enormous amount of entertain over their normal tkwraoeusz purchase not necessarily their wireless devices in the home. he has all the spectrum. lately he has been issuing debt as much as he can to raise debt. why not given where rates are right now. makes a lot of sense to do that.

and he has been making -- he made this bid for clear wire. very certain bid. kept it just completely trying to figure out what they can do to get sprint to come back at a higher number. he comes back after sprint himself. very interesting. it is fraught with some complexity and question marks. in this environment given my experience lately on watching the banks scramble all over themselves to fund deals, i don't think he would have a problem raising the money conceivably, especially how much cash he's got. >> he's got 8 billion. >> at least 8 on the balance sheet. then you roll in the spectrum he's got that's not part of the deal in terms of consideration but it will help with synergies, joe. it's going to take him at least nine months. keep an eye on dish shares.

>> do they care? >> a lot of people for me to still call. hard time reaching me. some of the soft banks advisers are trying to figure out what's going on. sprint is going to have to figure out what they are going to do. special committee. that being said, the vote is not that far away. you have time, value, money. you have at least some question in terms of what will this be worth when dish opens. let's see how much it goes down. people question what is the overall strategy. no doubt i think he is serious here. give him at least some credit. $25.5 billion. $17.3 billion in crash is pretty serious. listen, fully financed offers is what you want to come over the top with, especially one that's only a few couple of months away

from being voted on. this is not that. this is still highly confident letter. barclays in his corner. >> we talked to an analyst who said if he had to look at this at first blush, charlie ergen may have more of a desire, desperation even to get this deal done versus soft bank. soft bank had deeper pockets. then some other speculation saying what about double the valuation of the yen and what that means as well. >> that's an interesting point, becky. that one i thought about. soft bank already bought some of the convert. just to refresh people's memory on that. sprint is going to stay out there. it's almost the deal that southeastern wants for dell is the deal soft bank is offering sprint shareholders. in other words, they'll have a public stub. 30% of the stock will remain out there. they were buying 70% for $20 billion. they funded some of that already

through a convert when the deal was announced. right now if you're a shareholder of sprint, 55% of what you own is going to get changed for, let me remember here, $7.30. that's how you figure out the value of sprint right now. we know son is a man. he told us that day one. he will energize the wireless sector in this country if in fact, they are successful to closing this deal. >> ergen got to spectrum. he couldn't really do that, key? much easier to do it this way. it's a lot of money. has sprint got a lot of spectrum too? >> sprint has some. they're buying clear wire because they need even more. no doubt everybody needs more spectrum. you can never have enough. >> no. >> you're right on charlie.

he has the spectrum. he needs to find a partner. you can't build a new wireless company from scratch. 10 billion is not going to get you there. and he knows he doesn't have that ability. so he has been looking for partners. part of this also becomes leverage in some ways. is there a way to figure out something that would allow you to pursue a joint venture of some type. he is looking to get that in a useful position and build it out. but he can't do it alone. this is a bold move. there's no doubt about it. and a significant one. i would be interesting to see how dish shareholders react to this. he is moving from a business with its challenges to one that is a duopoly. if you start to get more players involved and it starts to look more like europe than the u.s., it's not going to be as pretty, that's for sure. >> 11 billion in savings, too,

is is his calculation. >> i don't know what the numbers are. >> we were talking about ergen. we were talking about what's he going to do with all that money, cash. and we were even talking about this idea broadband wireless, right. can you bring a wireless signal to the home that is so big that you don't any longer need a broadband connection from your cable company. >> yikes! >> malone said when he owned director controlled direct he was trying to figure that out for quite some time with verizon. he's like you. he has a science background. he said the physics didn't work. it's not a matter of it will come in a few years if we wait. maybe charlie has figured something out. >> that was before we found his. hold on. we had leonsis on.

and you worry about the disenter mediation by satellite and cable. you try to offer it cheaper. everybody is trying to do that at the same time now. you know what is really unamerican is to not have any phone. you have just a wireless phone and you don't have cable. and you have like something on the internet to get all your entertainment need. that should be outlawed. that's going to be a problem for us. >> it is becoming a problem already. over the top. don't forget, though, the cable company make the margin on broadband is enormous. really all they're doing is carrying the programs and then we're all paying espn five bucks a month. >> you made news with malone with sports programming cost so much and it's not going to be bundled. you have to pay separately. >> that's right. >> and that is a problem with

the future of all of this too. >> it is. it's uncertainty whether the bundle will hold together. if you're a satellite guy like charlie. >> i don't know how you can sleep until 8:00 in the morning with all these things that are so disturbing. >> broadbandst the product, joe. even you've got it in your house. >> i know. i know. this combined with all the stuff about the snails. anyway, thank you for finally showing up down there. it's going to be a great "squawk on the street". you're going to make a bunch of phone calls. that's all i'm going to do between now and then. >> thank you. >> ergen. that's crazy. >> much more on the markets and the big move in commodities this morning. is faber still there? is he gone? 13 billion with life. finally on a monday. this is really good. thermo is 13 billion. that's done.

as we head to break, armchair analyst facebook poll. citigroup earnings would meet expectations. 25% said a miss. the majority of voters got it right again. they were above 12 cents. wall street expectations call for 45 cents a share when coke reports tomorrow. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason

serious investors are choosing fidelity. now get 200 free trades when you open an account. ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just to stay alive... but feel alive. the c-class is no exception. it's a mercedes-benz through and through. the 2013 c-class. starting at $35,350.

welcome back, everybody. dow futures below fair value. those are off the weakest levels of the morning. down 79 points earlier. also watching a slide in commodities and lower prices for oil. lower prices for gold. a lot of dislocations this morning. joining us to talk more about this is chief exempt officer

howard ward. first of all, what happened with the dislocations and secondly, why do you think they are covering some of the losses. >> i can't help but wonder is there a role that japan is playing in all of this with the very sort of disruptive change in monetary policy in japan in recent weeks. and what we have seen in japan is money flying out of japan because of the lower years down 40 basis point and into euro dominated debt. a lot of money to buy goal is raised from shorting euro debt and the dollar.

i have to think that's playing a role in the sudden plunge we're seeing. >> in terms of where you think this shakes out, is this the beginning of a significant change in where we will value things like gold and this is a blip from where we recover from. >> it should be viewed as a currency more so than industrial commodity. the and the only reason to be out is if you think quantitative easing will be out. so if you believe that ben is going to pull back, taper off his easing or be done completely during this calendar year by all means get out of your gold. >> does it matter if it happens in december or january? >> no, i don't think so. if you think there's another 12 months i wouldn't be selling gold. you should be backing up the

truck to buy gold. for the rest of the markets, s&p is above action. we're up 15%, 20%. we're due for a pull back. it would be a good opportunity to put money to work. and i think that's probably the most likely outcome. i don't think we have enough data to change the economic forecast for this year. the march data was hurt by weather, seasonal adjustments. >> you didn't say that last time? 3% to 5% last time you were on. >> i think i did. >> we're up another point. >> well, i still believe --

>> guess what the lead story. >> on? >> drudge. >> snails. >> no. >> dennis on cnbc. >> used to have the venezuelan guy. cnbc. >> this is a pretty small market. is cyprus going to be selling gold? will other european central banks selling gold? what they should do is sell gold-backed bonds which would give instant credibility. >> we don't have good inside like that more often. what do you think of the bank of japan. >> i think it is. i know there's an argument they have been dealing with inflation. they need to have this kind of a jolt.

but to me this is -- i know that stan miller said he has gone from volcker to ben bernanke overnight. maybe it will all work out just fine. but i worry about it. i worry about the debt of 200% of gdp. i'm concerned. i don't think it's a layup here. >> don't other nations have to respond? you have to respond, right? >> yeah, absolutely. it's tough. we have all watched sick cals get cheaper. is there a catchup for sick cals? or is it just another sign stay with the expense of staples and lead the sick cals to the side.

>> yeah. i think, bob, that there is much more longer term value in the nonstaples and the nonhealth care, nonutility trade. those groups are trading near their all time high levels of evaluations. right now i think we need firmer economic data in order to encourage people to take the extra economic risk to move into the industrials and energy and the technology side of the market. right now it is a little soft. we need a little more confirmation that what happened in march was more of an anomaly than not. >> how far back gold -- >> 25 now on futures. so that's up 38. >> right. >> and gold is coming back a little bit. oil almost back to 90 after being low 88 for a while. >> it was down right at 88. >> very calming influence,

however. >> 20 points on the dow. >> soothing. calming. almost like a salve. >> i try. i try. >> howard, thanks for coming in today. when we come back, citigroup reporting above the street's expectations. that is indicated higher. we will dig through with an analyst who covers it right after this. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪ to help you take charge. but i wondered what a customer thought? describe the first time you met. you brought the flex in... as soon as i met fiona and i was describing the problem

we were having with our rear brakes, she immediately triaged the situation, knew exactly what was wrong with it, the car was diagnosed properly, it was fixed correctly i have confidence knowing that if i take to ford it's going to be done correctly with the right parts and the right people. get a free brake inspection and brake pads installed for just 49.95 after rebates when you use the ford service credit card. did you tell him to say all of that? no, he's right though...

lets you jump backwards and forwards in time to capture the perfect shot. blackberry z10 with time shift. built to keep you moving. see it in action at blackberry.com/z10

welcome back, everybody. city posting better than expected results on the bottom and top line. gerard cassady, managing director and head of us bank equity strategy at rbc. we have been watching stock this morning. it's trading higher. the street likes what it seems. what do you think with wells and jpmorgan last week? >> yes, becky. when you take a look at the numbers from jpmorgan and city in particular, the capital markets business is unusually strong for both companies. citi put up very strong numbers in equity trading which helped drive better than expected numbers today. >> so do you buy the stock as a result? bob dahl says we know things

will be difficult for banks across the board. >> it is standing $52 a share. long-term investors would do very well in buying the stock. this company citi is going to continue to see improvement this year in credit qualls and that is going to drive prices higher. >> is this your favorite of all the banks. >> yes. of the large banks, this is our favorite. we see opportunities not just here in the united states but the growth of latin america and asian markets will help grow the markets as well. >> what is the driver for city going forward? we talk about the foreign business. but do they make a lot of money other than their institutional relationships in place like the middle east or more money on shore. >> i would say they make more money offshore particularly in

asia and and latin america. they were able to utilize their deferred tax asset. this is the first time that it has gone down, which means u.s. profitability has increased. citi holdings is the tank of toxic assets. that declined this quarter. it's going to be a big focus point for the company this year. >> what do you think your equity returns will be for city and the other large banks? what is your benchmark going forward? >> we believe the benchmark will be much lower than the period of 97 to 06 around 15 and a half%. >> we should point out jp banny is on the wires now announcing plans to fund ongoing spending.

850 million out of $1.85 billion revolving credit line. it is continuing to explore additional capital, raising alternatives, proceeds. as i said, will be used for working capital requirements and expenditures. it is down again. it's down about 2% or 3%. it is also trying to develop a larger plan. to try to strengthen its financial flexibility, but also trying to expand that. earlier this year the cfo said we increased our credit and capital expenditure needs. at this point the draw provides more than our current funding needs to ensure our continued liquidity and will continue to explore capital raising

alternatives with the tans of our financial advisers. in the last couple weeks they talk all about your factors and the people that you buy from. they want to make sure in this transition period. >> that they still feel comfortable. 14.40 to 14.44. >> we'll continue to watch that. gerard, thank you for joining us this morning. we'll continue our what's working series with some economy proof stock picks. right now as we head to break, look at the u.s. equity futures. they're down but not nearly as bad as they had been earlier. 50% on the dow futures. s&p eight points below fair value. "squawk" will be right back. nespresso. where there is an espresso to match my every mood.

♪ where just one touch creates the perfect coffee. where every cappuccino and latte is made at home. and where i can have exactly what i desire. ♪ nespresso. what else?

welcome back. economic data from china weaker than expected. look at long-term deep value plays that could help you make some money. david is founder of dls capital

management. weathered the financial crisis back in 2008 and saw 12.7% annualized rate of return the past 12 years. we have been talking with bob dahl and others, maybe you were watching, about if we ever see a move back into the sick cals from some of the tkfpgsive utility type investments. do you think that's coming or stick with utility? >> well, i certainly hope so. i've been invested in the last 18 months in a lot of areas and it's been very difficult. you have seen basically multiple compression. you see companies across the board. i would think industrial basically pretty well were run in terms of cash flow and managing their inventories and so forth. the underlyings prices has been holding up reasonably well. but the equity evaluations have compressed. so i think it's a cycle and it's a better of time. and your other guests pointed out maybe the market needs to

see better data. slowly they're getting dragged in because there's no where else sog. >> given what's happening or what's happened in the last three or four days, should we be looking a lot the global economy and where we are in the recovery? it is throwing us for a little bit of a loop. we are looking at where we are in the recover, right? >> listen, there's no question about it. i can only come up with there's got to be a large technical sellout. but it's a small market that gets pushed around hard. maybe it's a large fund or asset allocation. it's taken a big hit and other commodities down. china 7%. it's not a bad number given the size of that economy. but nonetheless long bond yielding or 10-year with a low yield it's gone, looking at some of these commodities price.

>> it does feel like we're in that time of year again. for the last two years we wondered what happened again. and we seem to have fundamentals that can explain it. the payroll tax, whatever it was. sequester. there were other taxes. and there's more coming, believe me. are we going into another slope here? the jobs number was pathetic. >> listen, we are going to be chronically in low growth environment. it's going to be two, three, four. based on the amount of leverage, the state of the consumer, there's a period of deleveraging to get us past looking a lot of what europe looks like, 1%, 2% or depending on jobs and numbers. i think this is going to go on. you're going to have better periods. you're going to have periods of 1.5. and all along the way it's going to be chronic until they get really good fiscal policies to solve problemsysteth jobs and so forth or they

continue quantitative ease with three major economic zones in the world until the cows come home. >> david, this is chris whelan. >> hi, chris. >> what are you working with in terms of pigging up value plans? >> well, we're looking at -- try to look at five years. and i try to look at what the world is going to look like. i'm under the assumption, and i may be wrong at the end that emerging markets will eventually drive consumption at least the basic commodities and consumer goods and so forth. you will see low growth in european, japanese and the u.s. lower growth than you have seen the left 10 or 20 years. now, in the last two years, if you look at these commodity companies and so forth, that argument looks wrong. but that's -- that could be a very temporary period that we're looking at when you try to look at the broader scheme of things. so i would like to kind of look five years and see where are things going to be.

if i buy evaluations or low on a basis and i think that the areas are managed well. we will get our money out over time. we have all been in business long enough to see things not work for a period of time. it looks like we have our intellectual game in play. >> i know one of the calls you like is hewlett-packard. >> right. >> that's interesting given all the things we have seen with pcs and shipments being so weak in the first quarter. what is it that you like hp despite that? >> last time i was on we talked hp. i think it had been left for dead. they had three major divisions that make up the constitution of the company primarily. the news that came out on the pcs i think was not helpful to the story. but at the same time of of those pcs go into businesses. and you're going to have a new

cycle. now, whether microsoft is helping or not, it's tough to say. i think you have short-term interruption on a recovery of the story along the way here, which took place the the last couple of days talking about the pc shipments. i think the story has got to unfold over the the rest of the year, the next couple of years as they really get their house in order and do basic tackling. i don't think there's anything not intact based on that data. it's one data point. >> they got nice new servers. really small. three different colors. and they're doing stuff with -- i know you know this. they're doing something with the cloud. that's all you need to know. isn't it? >> if you pay the right price for investments, joe. >> who cares about pcs? you don't need a pc to deal with the cloud, do you? i don't know. maybe you do. anyway, we'll, watching.

thank you. >> thank you very much. >> okay. see you later. >> what's coming up? >> up next, we have much more on the slide in commodities. we'll check in with rick santelli after this. take a look. crude oil prices still down 1.6%. we have seen it below 88.50 at one point early this morning. and gold prices are still down too. we'll look at all those who "squawk" comes right back. i know what you're thinking... transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business.

[ beeping ] ♪ [ male announcer ] we don't just certify our pre-owned vehicles. we inspect, analyze and recondition each one, until it's nothing short of a genuine certified pre-owned... mercedes-benz for the next new owner. ♪ hurry in to your authorized mercedes-benz dealer for 1.99% financing during our certified pre-owned sales event through april 30th.

arrival. with hertz gold plus rewards, you skip the counters, the lines, and the paperwork. zap. it's our fastest and easiest way to get you into your car. it's just another way you'll be traveling at the speed of hertz.

welcome back, everybody. down to rick santelli who joins us from the cme in chicago. this is quite a day watching all the moves out there. what do you think about empire state? what do you think just about gold, oil, the the futures, what's happened today, whether it's justified. what do you think? >> well, first of all, i know very few people will remember watching this. very, very early 1980 when gold was, let's say in the 7.75 to $8.20 range in the front month futures. the limits had risen throughout that year and a half leading up to that from $10 to $75. and there were several sessions before february 1980 when the market never looked back and traded lower. we covered that range twice. so $150 range.

so basically if you double the price of gold, i've always thought there would be a time when we had a $300 range s. so quite frankly when i look at 1500, 00014 poupb gold and $110 range, i'm wrong. i think when i was out there five months ago i thought it would happen sooner. it will happen in greater volatility. one of the reasons, look, no further than volatility in the jgb. april 4th was the big meeting, right? >> right. >> on that day we have a low of 32 basis points, settlement of 44. that is one of the cracks you're seeing and all the strange structured finance that i think have led to higher commodities. >> do you remember the commercial? and we always show it of all the central banks in the world churning out the currency.

maybe that's what got us to near $2,000. this is not -- >> the brokerage firms and the intellectual property churning out etfs. >> so you think that's what it is. >> i think it's both. >> coming down this hard when everybody is still full bore and japan is full bore and we're still at 85 billion, it doesn't make sense -- >> i think it makes sense. joe, wait a minute. see, i understand how gold ended up being the blue plate special going up to 1800. but you also have to remember logistics. just think about how you finance a position, especially an old position, or how those buying at above 15, 16, 17, there's staying power. then you get a low gist cal look at it. >> but now we're worried about

another round of deflation. people have said that, rick. >> i'll tell you what, the more i hear about deflation the more i want to pull my eyebrows out. we have to do more to flight deflation. i think it's assets that have gotten bubble ishs through cheap money. you think about that word deflation and come back and do more of it, just shows the lunacy of these plans to save our lives. >> even gold goes up with cheap dollars. that's interesting. yeah. >> it goes down, but you have to pay for them. >> but you have to pay for them. right. >> rishgs the fact that the tail risks are reseeingcedinreceding. why should gold be at 1500 if tail risks are receding. >> i don't look at gold as a benchmark of any type of wealth. i just look at it as another exit where the people that are on that exit are too excited.

they turn the heat up on their molecules too high. >> thanks, rick. >> coming up, we'll have jim cramer's take on commodity, citigroup, sprint and the other stock stories we're watching. the market master. newly named market master jim cramer. how do traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent.

i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. but i wondered what a customer thought? describe the first time you met. you brought the flex in... as soon as i met fiona and i was describing the problem we were having with our rear brakes, she immediately triaged the situation, knew exactly what was wrong with it, the car was diagnosed properly, it was fixed correctly i have confidence knowing that if i take to ford it's going to be done correctly with the right parts and the right people. get a free brake inspection and brake pads installed for just 49.95 after rebates when you use the ford service credit card. did you tell him to say all of that? no, he's right though...

let's get down to the new york stock exchange, jim, you were in the glow of being named the squawk market master. >> one of two people in the last 72 hours that donned the green jacket, what an unbelievable final and tiger would have been in there would it have been for the two stroke. >> or the four stroke. >> he is so mentally tough and the stuff surrounding it. he's a phenom. hey, commodities, jim, happens in markets where there's fear and greed operating in margins calls, but given the environment it's weird to see what we thought was the printing and it's weird to see it's been crushed. >> if there really is less worry in the world there would be a big decline in gold. look, these moves are almost

always because there's a bunch of hedge funds that borrow a lot money. we saw this in 2008 and the sell-off. there's always someone who has some marginal dollar. it's making some bet on gold and we find out who that is a couple of weeks from now and that's why it went down. this is a world where 80% of the u.s. companies do better in the declining commodity environment and because of the s&p we sell all 100% and we pick among the rubble later on. you're right. >> given what we saw last week with the consumer and restaurants and dollar stores, you know, if gas prices go down, 30, 40 stents, that's good. >> it makes up for this -- we keep endlessly talking about the payroll holiday. >> every restaurant, retailer, bank. they're all beneficiaries and take a look at city. city was citi was a good quarter and we're all lockstep because of the futures and you take a

look later and that's why general mills went to 49 and we'll buy it at 47 and every raw cost of general mills went down dramatically and we're paying just as much for -- >> sti, j.p. morgan, who do you like better? >> citi seems pretty good and citi holdings generating a lot of revenue and i have to tell you, chris, i've always slow to say, so much better, run. at this moment, citi's kind of cool and i like the 13 billion for thermo, too. we need some of this to justify the market. >> and thermo up in pre-market and faber's got the whole story. sprint. i hope he comes down to explain it to the rest of us. he will. we rousted him.

>> we'll give them the last word when squawk comes right back. is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit thenewny.com [ penélope ] i found the best cafe in the world.

nespresso. where there is an espresso to match my every mood. ♪ where just one touch creates the perfect coffee. where every cappuccino and latte is made at home. and where i can have exactly what i desire. ♪ nespresso. what else? we only have time to say good-bye to bob