time, our guest host is robert wolf of 32 advisers. we have marty feldstein joining us, robert seulentic, marc fabe, jonathan bush and jason furman. we have the european central bank making its latest decision at 7:45 a.m. eastern time. mario draghi and the ecb are likely to take no action this time around. draghi will be holding a news conference at 8:30 a.m. we'll be monitoring that for any market-moving news coming out of that. we have the weekly report on jobless claims, that will be released. economists are expecting the number to fall to 325,000 from 344,000 the week before. and all of this comes a day ahead of two two of janet yellen on the hill.

the fed chair will be testifying before the senate budget committee this time, starting at 9:30 a.m. eastern time. she told the join the economic committee the economy still needs plenty of support and that the markets are not in bubble territory. >> valuations are in house torq -- historically -- interest rates are historically low. that feeds into the valuation. there's that linkage. there are pockets where we could see valuations in smaller cap stocks but overall, those broad metrics don't suggest that we are in obviously bubble territory. >> in reaction to her comments, the dow managed a triple digit gain, closing at 16,518. the s&p 500 also picked up ground adding ten points. the nasdaq, though, dropped 13 points. the nasdaq looked worse earlier

in the day, though. you did see much steeper declines. it was boosted into the decline of 13 points by the end of the day. the futures right now, you'll see at this point dow futures are indicated higher about 13.5 points, nasdaq up by 2, s&p up by 1. the ten-year yield, yesterday it was below 2.6%. this morning, that yield ticked slightly higher, 2.631%. that obviously is still something the stock market will be watching closely. let's get over to andrew. he has more of today's top stories. good morning. we have corporate news for you this morning. tesla reported first quarter results after the bell. the electric carmaker earning 12 cents a share, 2 cents ahead of estimates that's good news. revenue beating expectations, coming in at $713 million. its outlack for the current quarter disappointing some investors. tesla sees the delivery of 7,500 model s vehicles in the second

quarter. we'll talk about this in just a few moments. k-cup maker greene mountain reporting better-than-expected revenue. we should little you about alibaba with morning, just filing for what could be the biggest ipo in history. now the chinese e-commerce giant striking a deal with amazon rival shop runner. shop runner's whose partners include neiman marcus and nine west will use alibaba's infrastructure to launch in china later this year. that move would offer a way for u.s. retailers to access this company. shop runner launched four years ago. currently has over 1 million

members and is still very small compared to amazon and ebay. joe? over to you. i missed you, i missed becky. >> i was here yesterday. you forget. >> sorry. >> you were probably overshadowed by the big tall guy that won't take off his jacket. >> that's all right. >> you're so nice. >> it's a protest. you want no jacket. this is a working set. >> when in "squawk," do as the squawkers do. but no. barclays unveiling an overhaul plan that would have the british banking giant cutting 19,000 jobs over the next three years. the company will also separate noncore asset into a bad bank. i like just the term. very bad. these is a bad bank. where it will house much of the european banking. you're a very bad bank. you're a very bad boy.

>> i want to talk about something else. >> are you going to go where we were just going? >> no, i'm not going anywhere near there. >> all right. >> from now on, st. patrick's day and cinco de mayo, i don't know anything about anything. basically we're dividing the bank into two, a core group of four strong businesses that are well fogs positioned in their ms with good growth prospects or returns. we're combining our personal and corporate banking interested in the uk into a new business. we have our barclays car payments business, our africa interests and investment bank which will be much more focused on client-led origination and a smaller plan going forward. >> let me say one thing before we get to astrazeneca. this is in a nutshell is what

occurred to me yesterday. the import/export numbers came out, both were weaker than expected. analysts say that the economy probably contracted in the first quarter. remember we got 0.1. they think it's down 0.8. that means for the next four quarters we need to do 4 plus to get to 3 and the ten-year, the way it's acting is not forecasting anywhere near 4%. i don't know what that means. >> somebody was saying before, steve liesman was saying, because i worried about that, too. >> don't worry about it. >> you said when you then come back it's easier to make a much bigger gain off of it. >> it's stretched. >> i was thinking it's gpa, right? if you get a 2.0, you're never getting that back to a 4.0. >> i know that. that happened -- no, it actually didn't. i just came down. started the psych major with a 4.0 and by the time i hit molecular biology -- speaking of

which. astrazeneca, shares gaining on the speculation that pfizer is ready to return with a higher bid. people in the know say it's about money. the british government -- is there any way we say no, we don't want your tax dollars. i'm sad we're not somehow going to try to keep pfizer here. >> we are. it's not over yet. you don't think there's going to be calls to do something? >> then we can't -- when we try to do something somewhere else, people say you can't buy us. >> right now it's 20%. they're trying to change it to 50%. >> they can do that quickly before this. >> i'm surprised congress -- we talk about the issue here. i think a lot of people in new york -- you don't hear it out of washington. >> no. >> i'm surprised by that. i don't think they do it just on this. >> pfizer's previous approach which was promptly rejected.

the value of the cash and stock offer has slipped because of a fall in pfizer shares, following results. ian read will try to lay out the merger next week. >> i think he's over there arguing or representing or doing whatever important people do. >> we have offices there. >> >> we do. >> why would the uk give them a hard time about this? >> they wouldn't. >> why is there even a question? >> why is astrazeneca -- isn't astrazeneca saying -- >> they want more money. >> don't stop, don't stop, don't stop. i know what i am but i want more for what i am. >> pretty much. >> you think they're using the government as -- >> i don't know. i don't know. i don't know whether they want

to stay out of pfizer's clutches or want a better deal. you never know. usually it's money. >> a lot of times it's ceos that don't want to lose their jobs or boards that don't want to be kicked out. >> ian read probably has ten reasons to do it. >> and the number on the other side -- >> the amount in dollars. >> the reason is no longer relevant. turning now to the crisis in ukraine, russian president vladimir putin calling on pro-moscow separatists in ukraine to postpone a vote on succession, just five days before it was to be held. it was the first time that putin has given that he would not endorse a referendum planned for sunday by pro-russian rebels seeking independence in the east. the russian leader also announcing that he is pulling russian troops back from the ukrainian border. the russian markets seeing some relief in putin's comments on

wednesday. you can see the micex is down by 6 points. you're not seeing even worse gains than you might have been doing otherwise. oil prices right now are down 24 cents, they're still above $100. the dollar today, if you want wato take a look, euro is at 1.3941. dallas/yen is at 1010.75. they're up about $3 this morning but still below 1300 at 1, 291.902 291.90. ford shares moving higher on

that news. also in the auto world, a case of good news and bad news for automaker toyota. it's reporting a record profit for the fiscal year that just ended march 31st. it also became the first automaker to sell more than 100 million vehicles in one year. however, toyota's also saying it sees profit dropping 2.4% for the current fiscal year which would put it below analyst estimates. currency fluctuations which helped toyota the last year are expected to have a negative impact this time around. >> you're still sick? >> how long did it take you? >> i still cough at night. it was over a month. >> when the voice was gone it was a dry, painful thing. now it's just a mess. >> i think you need antibiotics. >> no, it's not antibiotics. it has nothing to do with -- >> i was on three cycles of antibiotics. >> i'm not going to add to the problem. >> i waited 21 days before i got

antibiotics. >> you're adding to the problem to society. >> when you're adding -- treating a viral -- obvious viral infection. >> everybody is doing it, man. >> it is wrong. >> i didn't get antibiotics until after 21 days. >> you settled one thing which is a huge issue in my house. when you take an antibiotic, it's not that you are going to become immuned to the antibiotic, owe site becomes immuned. there are people who think it's the opposite. >> the science getting thrown around lately. tesla posted -- >> he needs a kleenex. >> i was coughing last night still. this is five, six weeks. >> rough night. tesla posted earnings of 12 cents a share, beating the street by 2 cents as you heard andrew say at the top of the show. the stock was down 12 points,

plummeting after hours. with us to break down the numbers is colin rush, senior analyst at northland capital markets. do you have at your finger tips what this is trading at in terms of next year on some metric? what is the stock valued at now, colin. >> you're looking at a big multiple for next year. it's something like 80 times. i don't think that's the story. this is a long-term story. investors are not lo-- looking next year's numbers. >> the auto mark set pretty tough to be a survivor and be able -- tyou saw what happened o the chryslers in the '80s. you saw what happened to all of them recently.

it takes a lot of capital to run a car company. you think that this is an electric, we should discount this, there will be no bumps in the road at all. >> if you look at how much money these guys are have spent to jen rat a profit, making a dent, you're looking at less than a couple billion. they bought a $2 billion facility for about $60 million. they ran manufacture 20,000 vehicles a year. a company that has 25% gross margins going higher into the 20s and has optionality in terms of what they can do. >> no argument on any of the points they just made. the company has half the capital

generalization of general motors. that seems like quite a stretch. >> they're changing the technology that's been in the transportation market over the last 100 years. to see these guys to be able to come in at the cost numbers they can come in at, and still be generating cash on the p & l, is impressive. i think that's why they're getting credit from a value standpoint. >> let's say there was -- not 2008, 2009, let's go through a run of the mill recession at some point in the next five years. they're ready for that? >> i think this management team will see it relatively early. at this point, you know -- >> they're going to see it relatively early? why would they see it relatively early? >> they've been able to decline out very, very well in terms of the demand profile. they'll see a level of decreased

demand before. >> they're still going to be spending capex like crazy. >> a lot of money going to be spent ramping up. >> my question to you guys is why are you poo-pooing the effectiveness of this capital management team? >> it's not a question against management. it's in the a question against anything they've done. i give them kudos on all those counts. >> in the "60 minutes" piece, elan, without that rocket launch that happened to work after four or five failures, there wouldn't be a tesla now, i don't think. it was that close, right? apparently. >> all right. well, i don't think that's particularly relevant to the stock at this point. you know, the capital that they've deployed and the way this company is executing in terms of their product development, the sales they've been able to generate, the buzz

they've been able to generate, the brand, i think we're in a good position with this company. and wa we're looki and what we're looking at is whether they can execute on the promises they made the street. >> we'll be watching. we want to stay -- we need to ask questions like that. we don't want to go through 1999 again where people are embracing it and no one asks any questions. we'll have jonathan bush on to talk about the bubble basket. the notion that there's a lot of stock -- what are they trading at? >> triple digits. >> we'll talk about that. actually this next guest can talk about some of this, too. member of cnbc's disrupter 50, getting another big backer. yahoo!'s marissa meyer is getting involved. as we head to a break, check out the earnings calendar.

we're expecting results from priceline.com, liberty media and amc networks and many, many more. "squawk box" returns right after this. passenger: road trip buddy. let's put some music on. woman: welcome to learning spanish in the car. passenger: you've got to be kidding me. driver: this is good. woman: vamanos. driver & passenger: vamanos. woman: gracias. driver & passenger: gracias. passenger: trece horas en el carro sin parar y no traes musica. driver: mira entra y comprame unas papitas. vo: get up to 795 miles per tank in the tdi clean diesel. the volkswagen passat. recipient of the j.d. power appeal award,

two years in a row.

we have a disrupter's story this morning and our executive edge. it's called wealth front. they're an automated investment firm in disrupting the traditional financial industry

services industry. it's got big-name backers including venture capitalist, mark andreasen, ben horowitz and marissa mayer. here is the president and ceo of wealth front, adam nash. >> great to be here. >> for those who don't know what this is, give us a 30-second zplangs of h explanation of how wealth front works. >> it's quite simple. we're the largest and fastest growing automated investment service. we provide an index fund portfolio without the high minimums or fees of the traditional provider. >> if i called charles schwab and fidelity, what is different what you do as oppose today's

what they do. >> we do 11 different asset classes. they won't automatically monitor and maintain that portfolio every day. we do rebalancing, intelligent dividend reininvestment and tax loss harvesting on a continuing basis. >> if i tell you 20% bonds, 80% stocks, as that moves you'll continue to move that money around. >> you take a questionnaire with judge your risk tolerance. we give you an asset allocation. different asset classes make sense in different accounts. muni bonds might week sense in a taxable account. reits in an ira. we use every opportunity to efficiently rebalance it. if your reit fund pays a dividend on april 7th, but your

emerging markets is down, that dividend will be invested in the emerging markets. >> you do that on a dahly basis. >> vanguard put this out in 2005. it's called trigger day rebalancing. we look statistically at the portfolio and when it's mathematically more out of balance than it should be, that's when we rebalance it. >> do you get charged a fee for every time you sell? >> no commissions. because we're in software, we're completely free under $10,000. we never charge commissions for trades. above $10,000 we only charge 0.25%. >> for each trade or -- >> no. >> or just on the whole? >> assets under management on an annual basis. >> is there somebody i can call?

no, no, i'm suhrious. is there a phone number i can call or do i do everything online. >> no, no, we have a phone number on the home page. you can call. >> but nobody does. >> most of our clients are under 35. 60%. 90% are under 50. >> you only want a phone number if you're old. >> more importantly -- >> it's 0.25% on a quarterly basis. >> annual. >> annual basis. >> it's one-fifth the cost of a traditional service. the minimums for traditional wealth manager is very high for a normal person. we like -- most of our clients are young, they're getting started. we're excited about them. they're at the beginning of their income and wealth accumulation. >> what are you putting them into? all etfs. >> we look at etfs in 11

different asset classes. we find the ones that have the lowest drift, the best execution statistics and pick those for each asset class. actually two, so we can take advantage of tax loss harvesting when it's available. >> if i would compare your service to the traditional services, what kind of gains than i pick up off of the fees i'm hopefully saving with you. >> there's been a lot of research on it. individual investors normally do terribly in the market. they underperform, 3%, 4%. a lot of that is fees. 1% to 1.5% is the norm. if you're paying one-quarter of 1% you're paying 80% of the fees you'd normally pay. >> this is a more cosmic question. you talk about people being under 35 who don't want to pick up the phone. there was a whole world of day

traders, a whole world of people that would call their broker. is that over? we talk about where the retail investor is and what their interests are. to the extent your service represents sort of a new way of thinking about that. what is it? >> i think you're right. there is a generational shift. gen y millennials have been through two market crashes. ironically, that's put them in a position where they actually believe they're not going to make their fortune beating the market. right? there are still 10% to 15% of people who want to get in there and trade. the other 80% if they're a doctor, they want to be a doctor. if they're a lawyer, they want to be a lawyer. engineer, engineer. >> have you given up on the idea that we could have a 10, 15, 20-year bull run? >> they don't think they can beat the market. we can have a bull run.

>> warren buffett's point is put it in a vanguard index fund. >> i like to think that warren hasn't checked out our site yet, otherwise he'd probably be positive on what we're doing. young people are passionate about what they're doing. there's 90 million members of the millennium generation. a third of them aren't out of college yet. the oldest edge of that, in their 30s, they like it automated, they like software, they want it cheap and they don't buy the pitch of beating the market. they're happy with an inexpensive, passive solution. >> we have to run. i refresh you have the software, is your software, nobody can replicate it? >> i'd like to think we have some of the best software folks in silicon valley. the truth is, they are focused on the baby boomers retiring.

charles schwab manages 2.3 trillion. they're looking for the next trillion dollars. gen y has about a trillion. baby boomers want to talk to someone about how they'll retire, when they take it, et cetera. >> the music is playing. >> when do we have a hard break? >> we missed it 45 seconds ago. coming up, janet yellen and what it means for the summer. >> i want to talk about the olympic story. i'm blown away by the olympic story. i'm going to talk about it. and the mayor of cincinnati, i think this is my friend's nephew. i'm not sure. john crayon nley. i know all the cranleys.

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oh, no, no, no. oh, my word. good morning and welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. and the headlines this morning,

two interest rate decisions and policy statements coming from overseas this more than. the bank of england will issue its latest decision at 7:00 a.m., followed by the european central bank 45 minutes later. ecb president mario draghi will hold a post-meeting conference. astrazeneca, investors are speculating that they may raise their bid to $113 millibillion 106 billion. >> we'll see whether astrazeneca suddenly becomes enamored of the whole process. ian read will speak to two parliamentary committees in london about the company's bid for astrazeneca. the olympics are staying on the

nbc through 2032 in a record $7.75 billion deal. it's a stunning preemptive deal negotiated over six months. the ioc awarded the broadcast rights to nbc for an additional six games. nbc had three. all right hold the rights through 2020 in a four-games deal signed in 2011. >> huge. >> that was a record, 4.38 billion. nbc has done all the olympics since 2000 and the summer since 1998. i wondered at the time, wow, i wonder how much they had to pay up. this is when it was announced, the first deal, it sounded like a lot. but nbc sports, the way nbc sports does the olympics, they're so good, i think the ioc was thinking about a couple things. it's a great relationship. it wasn't put to auction. they know they're going to get incredible production and production value.

by far the best. they worry about the future like everyone else, geopolitical tensions and all kinds of things. this is not inflation adjusted. it's basically the same price. by the time it rolls around it could be a 50% discount. it's such an incredible deal for nbc. >> think about this. now it will be an ad. think about the platform issue. what other network could do that? >> i know. >> who else has all these channels? >> they could have got more money. >> abc can do that. >> it makes sense for nbc. sports is the thing people turn on. >> you'd do the same thing for "the new york times" and you don't feel embarrassed when you talk about how great that thing is. anyway, this is -- the only thing, i've said this, the only thing that worries me and the ioc is, by 2030 it may be all summer olympics. unfortunately. there may not be any more winter

olympics at that point. i'm just saying. after yesterday -- >> it may not be the same locations you used to have. >> no, no. >> i thought you were going to tell me the summer olympics -- >> it will be boiling water and thousand-foot tidal waves. we'll all have masks on because co2 could be 0.042% of the atmosphere. on that note, let's talk more about stocks ending a mixed day on wall street yesterday. both the dow and the s&p had their best day in three weeks but the nasdaq did see some give back, having its worst day in three weeks. join us now, louis lower than expected, chief analyst at nomura securities. gentlemen, welcome to both of you. it's great to see you. serot, let's talk about the

market reaction yesterday. it was strange to see the dow and the s&p pick up so sharply but there are serious concerns about what's happening on the nasdaq. >> the market is definitely sending cautionary signals. we think there's a lot of income substitution going on, the ten-year, 2.6 is scary. geopolitical risk as joe just mentioned, as far as europe slowing down china, i think you have to take it slow. we feel the next couple months you'll see a little bit more of a correction. >> even trading below that, the yield was below 2.6%. is this concern about the economy, is this concern about jaeio political issues? >> the geopolitics played a little bit into this. i think what happened coming out of last year, people were very, very short. i think the slowdown in the economy in the quarter caught people a bit off guard.

you've seen them having to reverse. you saw that on friday when you got a good jobs report, rates went up for a while but ultim e ultimately came back down. you are seeing people get out. you saw that reaction yesterday. i think they interpreted yellen's comments as suggesting it wasn't going to happen quite as quickly. >> cynical people say the reason the ten-year is where it is is because the fed controls where interest rates are. as long as we stay at zeier he, there's still at 45 billion a month. it's as simple as that. some people are saying that. any truth to that? >> look, we had a 100-basis point adjustment when the fed indicated they were going to stop tapering. we're in the middle of that adjustment. i think it's our expectation you'll get decent growth in the second half of the year. by the end of the year we'll be talking about rising inflation. when is the fed going to hike? at that point, rates will be at

3 or above. i think we're transitioning out of that world. no question the fed is very important right now. >> yes. i guess yesterday with what yellen was saying, sarat, what did you take? >> it's a show-me story. housing is slowing. people have been waiting for earnings to show up. we've been giving the market the benefit of the doubt. >> how are we getting 4% if housing is slowing. >> that's the question. >> i don't know if i'm a new normal guy, doesn't that sound like a huge leap of faith saying we're going to get to 4%? >> i think it is. i think the market is telling you they don't believe it. you'll see more of the stocks that are stable going to be sold off until you see some type of catalyst, maybe it's the oil prices come down, employment starts improving. we think. at the end of the year you'll see better growth but it will be companies that will have to show they're actually doing it as opposed to saying, hey, the market as a whole is going up.

>> where do you think we are gdp at the end of the year? >> i think gdp will be 2% to 3%. i don't think the 4% is really there. there are no indications if you see what's going on externally that we'll get there, just because people say we're going to get there. i would say 3%. maybe you get higher with inflation and growth. >> what do you think the catalyst is? what do you think that spurs us to this bigger growth? >> look, i think the fiscal drag is waning. that's a very important story that i think continues to be underestimated. if you look at, say, for example, q4 and q1, the drag from federal spending was very large. if you look at what we expect for the second half of the year, that's going to go away. household balance sheets are improving. a lot of the head winds are diminishing. i don't think we're going to get to 4%. my forecast for the second half is in the low 3s. i think gaps are closing, that w

will push inflation up and force the fed's hand. >> lou and sarat, thank you both for coming in. we have a huge lineup, robert wolf, harvards economic adviser, martin feldstein will be here and athena health ceo jonathan bush will respond to david einhorn's short call on that stock. keep it right here, "squawk box" coming back with that and a lot more. i have low testosterone. there, i said it. how did i know? well, i didn't really. see, i figured low testosterone would decrease my sex drive... but when i started losing energy and became moody... that's when i had an honest conversation with my doctor. we discussed all the symptoms... then he gave me some blood tests. showed it was low t.

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welcome back. time for the squawk planner, earnings central. we're expecting quarterly results from price line at 7:00 a.m. eastern time, the weekly jobless claims report coming at

8:30 a.m. eastern time and fed chair janet yellen will be appearing, again, this time before the senate budget committee, starting at 9:30 eastern time. that, everyone, is your squawk planner. back to you, sir. coming up, a guy i went to school with, his brother's son is the mayor of cincinnati. i'm so old. anyway, coming up, a city on a mission to jump start economic growth. president and ceo of ready cincinnati and the mayor of the city, democrat, but democrats in cincinnati aren't quite as bad. john cranley will be our special guest, next on "squawk box." question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions.

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last month, the city of cincinnati unveiled ready cincinnati, a regional economic development initiative created to spur growth in the greater cincinnati region. here to tell us more about the initiative is president and ceo of ready cincinnati and the mayor of the city, john cranley who i went to grade school and high school with your uncle bobby. and your dad was ten years older than my friend. >> yes, much older than you. >> exactly. much older. >> bob was the late child that

came many years later. >> almost a mistake, i think. i'm just saying. anyway, thank you for joining us. >> my pleasure. >> cincinnati is a great place for business. >> it sure is. it's open for business. >> p & g, people don't know p a fifth third, macy's all headquartered in cincinnati. >> we're a best kept secret. >> you had quite an irs office too, didn't you? >> we absolutely did. >> that's a nervous laugh. >> all the cranleys i know are republicans. you're the black sheep. >> there's no question i got a lot of bipartisan support. >> you're not like the czar of cincinnati? >> yeah.

we have a very bipartisan coalition. we have been tackling the tough issues of pension reform and things of that nature. but the main reason we're here is because we're in the beginning of a huge wave of renaissance. i don't know if you've been back recently. >> over rhine is bohemian heaven. >> from downtown during the recession, the business community and the public sector invested over $2.5 billion to the revitalize our downtown and over the rhine. when no one else could get construction going, we doubled down. we have this vibrancy that is like nothing else in the country. national geographic did 36 hours in cincinnati. g.e. just announced another 1,400 jobs. they are bringing a new high

rise. >> a whole other portion of their business is coming to cincinnati. >> 5.8% unemployment. >> doubling down and putting more money during the recession was tough to do when city taxes had to be down. that's not a call a lot of municipalities were allowed to make. >> that's right. that wasn't all the government money. western southern, they had a private transaction. they were building when other cities couldn't because of the depth of our corporate base, which is so incredible on a per capita basis. >> it's livable. when you go to a game, you drive into your parking space. there's no like -- >> we like to say it's the most convenient big city in america. because you have everything you want within reach. you can go to a game at night. >> go across to the river on a floating restaurant on a mark twain type steamboat.

the cost of living, 15% lower than average. and the cost of doing business, number two. according to kpmg. >> they just named us the second most cost-effective place to do business in the united states. it's a great place to open your business. whether you're a fortune 500 or start-up company. joe, as we mentioned with with this downtown renaissance, we put a lot of time and effort into our start-up company. the entrepreneurs are help to go fulfill the creativity. >> you have had some of the ribs, haven't you? >> i have. >> the montgomery inn. like if you ever drink a little at night, skyline. >> skyline too. >> fly direct in and out of the city. >> yes. >> not always easy. >> what do you mean? >> you can't always get a direct flight.

>> it's into kentucky. you can whenever you need one. >> actually, cincinnati is within a 90-minute flight of 50% of the country's population. so we have a lot of direct flights here to new york. i'll help you get there any time you need to. >> we are working on getting more flights at the airport. >> i thought delta's express flights. >> delta still has a minor hub at delta. we're bringing in more flights. but the bigger issue is because -- one of the things people don't know about cincinnati is we have 60,000 consumer marketing professionals because p and g, macy, kroger's are the largest advertising in the world. we have this fuel of innovation. >> if you have a creative branding problem, we have a solution for you with those 60,000. it's in cincinnati. >> i love dusty, but he had to

go. so painful. lost seven straight. >> he moved the team in the right direction. now we have to move to the next level. >> i like the new guy. and billy, his finger is hurt, right? this guy, andrew, and becky, sports. actually, becky, he is a center fielder that will set the stolen base record. he has to be able to hit. >> we have a lot of injuries. bruce is out. of course chapman got hit in the face. once we get healthy i think this team will take the off. remember, joe, we're going to be hosting the all-star game. we will be able to put -- >> i saw the all-star game. fossy got run over. suddenly all these things that happened. i was actually at that one. it was at river front.

>> 1970. and i used to go to crosley with my dad. andy dalton, i don't know who he is. >> great guy. >> but who shows up any given game. did you see the game against, what was it, the jets, it was like 40-0. >> he can be hot and cold. over time he will be more hot than cold. >> bear cuts and musketeers. >> we're hitting lots of good playoffs. it's the place to be. >> anything else you need to say in closing? because i was really going wild on cincinnati. >> i was going to say you handled it for us. i'm willing to hire you if this gig doesn't work out, joe. come on back. >> the ability for a business person to bring a product market and get a buyer through p and g, macy's is unprecedented. you will have access tow highest level. >> mayor, if this doesn't work out for you, you can do one of

the talk shows like jerry springer did. >> i'll do a talk show like you. honestly, the off-season isn't really off for me. i've got a lot to do. that's why i got my surface. it's great for watching game film and drawing up plays. it's got onenote, so i can stay on top of my to-do list, which has been absolutely absurd since the big game. with skype, it's just really easy to stay in touch with the kids i work with. alright, russell you are good to go! alright, fellas. alright, russ. back to work!

alright, that should just about do it. excuse me, what are you doing? uh, well we are fine tuning these small cells that improve coverage, capacity and quality of the network. it means you'll be able t post from the breakroom. great! did it hurt? when you fell from heaven (awkward laugh) ...a little.. (laughs) im sorry, i have to go. at&t is building you a better network.

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janet yellen easing market concerns. >> those broad metrics don't suggest that we are in obviously bubble territory. squawk market master martin feldstein. >> mark mayfaber on the next mat turn. and firing back at david eye horn's bet against his company as the second hour of "squawk

box" begins right now. good morning, effect. welcome back to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. bank of england unchanged with the rates. robert will be with us for the morning. marty feldstein, cbre robert selentek. and jonathan bush will be responding to david eye horn's shore call on the stock. and chairman jason furmouth. the dow and the s&p up. 117 points.

the nasdaq was lower 13 points. dow up 18 points. the yield is below 2.6%. it's been driving other markets all through the week. janet yellen back on capitol hill this morning after testifying before the joint economic committee yesterday. she'll be making a return appearance this time before the senate budget committee. shares of barclays gaining ground. restructuring will cut $19,000 over three years and create a bad bank. so they are laying off people. stock is up 5.8% this morning. >> we have been through that.

>> it became the first automaker to sell 10 million vehicles in a single year. yes, that's right. selling 35,000 a year. toyota forecasting 2% drop. >> tell but a couple other things as well. tesla reporting first quarter reports after the bell. it earned 12 cents a share, two ahead of estimates. revenue beat expectations. a little bit of bad news. the outlook did disappoint some investors. alibaba filed for what could be one of the biggest ipos in history. now striking a deal with shop runner. it has partners, including

neiman marcus and nine west. this could move a lot of business over there. it would offer a new way for u.s. retailers to top the second largest economy and bring more authentic american products to china. >> is that for real, those margi margins? >> tell me the revenue number and how much they make. it's 45a 45% margin. >> it's like ebay. all they are doing is taking the commission off the product. they don't do any distribution themselves. it's not an auction house. it's a storefront. >> if that's the case, what is their competitive mode? >> their competitive mode is

hundreds of millions who show up to this one site. that's the one thing about alibaba, it's a series of sights. >> for the valuation in the ire country, $200 billion. >> they are only putting out -- >> oh, i think it could be 20 billion. >> one of the biggest ever. >> the one point made yesterday or the day before, if you compare it to amazon, then the valuation should be sky high given the margins they have on amazon. i think jim cramer spoke to it too. they view it lower. it is 22%.

>> why is yahoo!? >> they say yahoo! is the rest of its assets or negative. >> that's the business. >> federal reserve chair janet yellen gave an beat assessment of the economy. she talked about how the economy is impacting in equality in the wealth gap. >> the people who are affected by unemployment are disproportionately people at the lower income end of the spectrum. so a weak economy contributes something to income in equality. and i think what the fed can do is to promote a stronger economy, a stronger job market generally. and that will help. but the trends that are responsible for rising in equality go much deeper. >> she had extraordinary accommodation is still necessary. if there's one person out of work the fed thinks it is their job to get a job. joining us the next two hours to

talk about the private tech sore view and robert wolf of 32 advisers. and former ubs america's chairman. in large part responsible for the income disparate with his other fat cat banker ceos that were overpaid at the time. welcome. >> good to be here. >> you're the president's banker. he called you guys fat cats. you said i don't care, i've been called a lot worse. >> i've been called a lot worse. >> you were a big football player at penn. >> only in size. >> no. 32. you were a running back. the most famous person to ever have 32. >> jimmy brown. >> that's a famous number to have. >> when we grew up you could

only buy a few stars. i was 32. jimmy brown. and you love penn. >> what we're trying to figure out here, yellen and the fed is extraordinarily accomodative. >> it's bernanke 2.0. we should not be surprised. >> does a strong fundamental economy -- is it strong if it needs this much fed help? >> we do not have a strong fundamental economy. we have an economy that's moving slowly in and around 2 plus percent. 2, 2.5. it keeps us out of recession. but it's slow moving. most of the people think the fed will stay accomodative beyond 2015. >> beyond the predictions to make, do you consult with austin? he's your main guy at 32

advisers. >> our company is cross board advisory. we will talk about trade finance. we will talk today about our new finance coming up. we are chugging along. >> it sounded like you were channeling him. >> he feels china, you know parts of the story, as you just mentioned, andrew. >> do you still talk to the president? >> yes. >> do you get the feeling any other than wedge issues for 2014? will he try to do anything else to fundamentally address our growth problem. >> infrastructure is something he has touted all along. >> the whole idea sounds great.

but we are counting on the receipts for tax and revenue. unless we would therefore increase the deficit. i agree it would be great to repatriot. >> what do you make of this pfizer/astrazeneca deal and what that represents, both in terms of what the corporate tax rate is. more important, given all the money that's stuck that can't be repatriated or whatever else you wanted to go to? in there's a bunch of different things. we absolutely need corporate tax reform. the president said he would be manufacturing at 25%. and he would put the rest at 28%. listen, idealistically -- let's just put it at 20% and have an up and down vote on every loophole. you can't pass it. you cannot pass that deal. it has to be revenue neutral. otherwise, everyone would argue

the deficit is going up. >>. >> if it's revenue neutral -- the are they at a disadvantage in terms of the rest of the world? >> yes. >> if they're paying less, you can't insist it is revenue neutral. >> most of the fortune -- >> you know why. this is -- the reason they aren't is because they moved a lot of operations. the blended rate -- >> the blended rate includes the international. it still would be lower. >> just to be clear, you didn't ask me if i'm for tax reform. i'm for territorial tax. >> why won't be the president

take it as a loss to go revenue neutral. >> he wants to raise revenues. >> absolutely false. >> if you reduce by near 10%. >> you would have to close the loopholes. >> what are you going to do? close r&d, depreciation, mortgage? you will have a lobbyist outside the door on each loophole you try to close. >> wouldn't it be a ferrer situation to get to us a much more simple tax code where you don't -- i feel bad for small businesses. we don't have legions of accountants. >> there is no question if you're a domestic-only company you are paying the highest level. >> right. >> why do i care if a lobbyist is outside my door? >> he's pointing the finger telling him to go away. >> you cannot change it with a

pen. it has to go through congress. they have not been able to go through congress. >> listen, everyone wants to do it. you speak to the left. you speak to the right. you speak to the center. everyone wants corporate tax reform. it's a question what you can give up to get there. >> much more with robert wolf throughout the program. >> when we come back, should markets expect a growth rebound. we have squawk market master marty feld stks stein.

. welcome back, everybody. more on the economy from our very own squawk market masters. economics professor at harvard. former chairman on economic advisers under ronald reagan. >>. >> i think this year we're going to be closer to 3% than 2%. that comes after several years when i have been saying to you all that we're going to be lucky to get to 2%. >> she is worried, though, about what happens in the housing market. she's concerned about weekends

there. >> housing is down. new home sales down. existing home sales weak. but sit not going to drag the economy back into a recession. >> the market is concerned about where things are headed. it was yesterdaying less than 2%. why is that if it's closer to 3% growth by the end of the year? >> the bond market has come to accept the tapering but it is counting on janet yellen to keep very short rates close to zero. >> nice to see you. >> nice to see you as well. >> it's been a few years. >> it seems you may be concerned

about inflation that no economists talk about. is that because see consumer spending coming back quickly? that's the essence of that? >> well, consumer spending is coming back. the unemployment rate among those who are out for less than six months is down to 4%. when the short-term unemployment gets low that's where the real pressure is in in the employment market. what i said in the wall street journal piece is the fed had not become clear that if inflation begins to rise 2%, 2.5%, even though 24er they are slack in the labor market, they would be willing to raise interest rates. >> but you don't see wage pressure to cause any sudden

shift? >> in the 1960s, we had the less than one and a half percent. then 5.5% and we were off to the races. if inflation begins to pick up 2, 2.5%, they will be raising rates. >> do you think the market is correctly interpreting janet yellen? if you think the economy is improving and if this fed is data dependent, could it change its mind about when rates need to rise? >> well, it could. i think it will keep its eye on that.

i had questions at the new york economics club a couple of weeks ago. >> right. >> and i asked her explicitly what the fed would do if inflation rate was about 2% and rising. she gave what i thought was just the right answer. they were symmetric. they don't like it below 2% but they won't take it above 2%. they would raise interest rates if there was slack in the economy. >> the solid jobs number the last time -- >> the household data just awful. awful in two senses. awful in we hope it's not true. and awful because i don't know how to reconcile those numbers with what we saw in the

establishment. >> baby boomers retiring? if you are not working, marty, what does the job need to pay for you to decide to give up all the disincentives? i hear $45,000, $50,000. you have to buy clothes. you have to get day care. you have to have a car, pay for gas, shave, get out of bed. what do you need to make to leave the ranks of the unemployed? >> most of the people who are working make less than that. most who are unemployed would be happy to get a job paying a lot less than that. the household numbers that came from the number of people in the household were surveyed were down last month.

i don't think we should put too much on these numbers. >> i want to ask you. we haven't touched on the name. we slather ourselves in this? >> the left wing -- >> i want to know your views on mr. pickity's book. have you read it? >> i have been reading it. i'm writing about it. you want to wait a little while and you'll read my view. >> that's such a tease. >> give us a hint. >> it's not convincing. >> in 100 years, how long will it be proposed that socialism is the answer to the way to grow. >> he's not talking about socialism. his policy proposals are

confisconfisk confis confiskatory. >> there's two issues. the data that represents the in equality he's talking about and the prescriptions which i think are probably more controversial. >> both are controversial in my judgment. >> took us five years of doing nothing else to raise marginal rates 3% on people that make over $450,000. you're going to 80%? >> that's why i was saying, the prescription -- >> i want you to be 80%. >> will you come back and talk to us after you finish reading it? >> after you saw that wall street journal piece, call back and have me back. >> thank you. >> >> thank you, marty. >> david eye horn announcing earlier this week he is betting

against athenahealth. he is responding to eye horn's call here on "squawk box". join us at 8:00 a.m. "squawk box" returns in just a moment. she keeps you on your toes.

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and a flash back on this date in 1976. the theme song to "welcome back kotter" by john sebastien was number 1 on the charts. i was just a glimmer in my mom's eye. coming up is commercial real estate about to hit the sweet spot? the ceo of one of the biggest brokers. aflac.

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let's take a look at some earnings reports. priceline drew quarterly profit of $7.87 a share. the travel website operator saw growth in established and newer markets. i was just hanging out on kayak a few minutes ago. wendy's earning 7 cents, 2 cents above estimates.

wendy's benefited from a menu revamp. real estate website operator zillow reported surprise profit of 2 cents per share. analysts had been forecasting a loss. it was aided in the increase of aid users. they also own street easy for those folks hanging out in manhattan trying to figure out what everybody else's house is worth. not that i do. here now is the ceo and president of cbre group. largeest investment fund by revenue. everything seems awful. you said we were going into a sweet spot for commercial real estate. what gives? >> for a couple reasons. a lot of capital is flowing into

real estate. the last 5 years, 10 years, real estate has done better than equities. that's a positive thing. not a lot of new stock being brought o. historically low level. pretty good time for commercial real estate. >> how much is an aberration, so much being driven by tech. >> tech accounted for 15% of the commercial leasing last year. so it was the top driver but it wasn't the only thing. energy was certainly a driver for commercial real estate. you saw companies that are involved in manufacturing in the upper midwest doing leasing. tech certainly a big piece of it. >> during the resession i remember hearing about a lot of commercial real estate where people were locking up leases for seven, eight years. are they starting to come off at this point?

how much is locked up in things like that. >> well, the average rate for commercial lease is probably six years. what was going on, becky, back then, you heard about blend and extend. rates were low. they could go into their landlord who wanted certainty, extend their term. but there's always a constant flow of leases coming off. >> bob, good to see you. >> good to see you, robert. >> there has been an incredible number of new real estate. is it supply and demand or will new construction opinion coming in. >> historically low level of real estate, particularly added office space. a fifth of what it was at the peak of 2008. you will see new supply but not a dramatic amount of new supply. in the next couple of years it will stay down. it's actually down to the levels

it was at after the bust in the early '90s. it is historically low levels. this is why they are interested. >> when you think about both coasts. tphrbg, for example, hudson yards is going up. who is the loser in all of that? if you're in the valley, some of the leasing will go empty? >> i think look at it this way. you see particularly good leasing where the young tech workers want to go many silicon valley, san francisco, places like pittsburgh, like salt lake city. where there's a good critical mass of tech. >> new york city, the competition between the hudson

yards and 1 world trade, who is going to win that battle? or do you think everybody can win? >> we have been involved in leasing. so i think both will be winners. right now the strongest market new york is midtown south, the lowest vacancy, about 6%. >> where are you guys based? >> midtown. >> would you ever move to hudson yards? >> with with a small start up, the answer is yes. it would be based on the infrastructure. we would have to make sure we had the right subways and trains. >> you will have that. >> i know you will. >> of course. >> one of my questions is you talked about investors coming into this commercial real estate market. investors want hard assets. they were all future currency and the approach that people

have been buying real estate all around. the question is, are these new investors you're seeing at the table that you haven't seen before? >> we're seeing a lot of money coming in from asia. china in particular. they want hard assets but they want cash flow. they want underlying strong credit. if you come into new york, you buy the kind of leases going into the big office buildings. you have credit, flow, hard assets. there was five times the capital for domestic u.s. office buildings as there was a the year before. clearly a move in the direction. >> coming up, marc faber on emerging markets. ukraine. and david eye horn on

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i see that cause is mostly reflecting transitory factors,

including the effects of the unusually cold and snowy winter weather. with the harsh winter behind us, many recent indicators suggest that a rebound in spending and production is already under way, putting the overall economy on track for solid growth in the current quarter. >> fed chair janet yellen. markets will be listening. that's probably the people that will be making up the markets. minutes away from ecb great decision. let's gauge the heating of the global economy. joining us from vietnam is marc faber, editor and publisher of the gloom, boom and doom report. i want to talk about something positive for quite a while. most people think the 2008-2009 was the event. in earthquake terminology,

there's fore shocks and aftershocks. you think there is a decent chance it might have been a foreshock and is predicting something even more devastating as in the future. have i got that right? >> yes, you got that exactly right. basically the crisis occurred because of excessive credit growth and credit of a percent of the economy in 2007. now a percentage of the advanced economy is 30% higher than it was in 2007. and the interest rates are zero. so i don't think the economy is recovering at all. we have an emerging economy.

i have been writing about this two years. we have geo-political problems in ukraine and in the east chino sea. mark, for some reason we have the impression that everyone has delevered. i know a lot of private debt became -- uh-oh. are you okay? >> yes, i'm fine. we think the printing presses can handle that. you say 30% were levered 30% more than we were during the financial crisis? >> total credit including government, corporate, consumer debt. >> when you're in a period like this, no one can know what's

going to happen. they have thrown everything we have got trying to minimize it this time around. if everything doesn't go according to plan here around, they've got nothing left. that's what scares me. >> actually, they have something left. that is to throw even more money down the drain. what it does is leads to price increases. nobody can deny anywhere in the world that energy prices are substantially higher than they were 10 years ago. nobody can deny that food prices are up. at some point will will lead to

pressure -- more srebl pressure. we already have the pressure but they're not so available because the statistics are distorted by the ministry of truth. but once this come can out, the policy will be perceived as a failure. it's interesting. since the beginning of the year, the stock market has basically done nothing. it is down 4%. nasdaq, 3%. but long term bonds up 12% in terms of total return. now i believe the next test will be stocks and bonds will go down at the same time. >> you just mentioned the treasury rally. you would think of us being in the middle of a bubble, there will be quality and therefore you would see a continuing rally. you just mentioned you're

nervous about bonds as well. where do investors put their money when you get negative in cash. >> i wish cnbc would advise me about this. in the emerging markets they're relatively inexpensive. they're not absolutely cheap. bonds are expensive. if you buy a 10-year treasury note in the u.s., the maximum is 10 years. if you hold it, it's 2.6%. it's not very desirable. >> just very quickly i want to tell everybody breaking news. we are hearing from the ecb. it is leaving rates unchanged

just like the bank of england did earlier. i'm sorry, sir. go ahead. >> hello? >> yeah. >> do you want to finish your thought marc? >> real estate is relatively expensive. but i live in asia. i don't see real estate has being very, very inexpensive because it has going up the last couple of years. i don't see it going as very attractive. the most underappreciated asset is cash. nobody likes cash. cash for the next 10 years you earn precisely zero. ms. yellen is a money printer like all the others. and she will make sure that the dollar continues to depreciate

in real terms. for the next six months is the most attractive. >> i don't want to be in cash. >> i don't want to be in cash either. i'm saying for the next six months opportunities will come along for a long time. >> just as many people that have been predicting bond markets to collapse and rates to go up, the same people have been predict thing all this money printing would lead to inflation. you mentioned commodity things that are up, insurance premiums. no wage growth. >> and an economy isn't gang busters. when do you expect the first inkling that it will be really nasty. it's just no one can see that right now. can it happen overnight?

>> inflation is an increase and money on credit. you can print mope in the u.s. we have a globalized economy. it can produce prime real estate in london, new york. saying there is no inflation is an error. >> i don't understand your comments about leverage. banks have delevered. housing markets delevered. for the most part we have seen it come out dramatically.

there's a lot of cash on hand. where are you seeing that leverage? >> in debt. yesterday, since you are an anchor, by how much did this consumer credit grow? it was announced yesterday. $60 billion. yeah. okay. i don't ignore you, marc faber. >> has it gone down or up? >> anybody that does, does so at their own pertil. >> we have had the financial break of our life. that's already happened. another is not due. even geithner says there will be another one. >> we will have to talk at

christmas. >> one every eight years or so? >> well, anyway, the other thing i would like to leave as a comment is since the beginning of the year all i hear is the very bullish comments and very bearish comments. and everybody is an expert. and everybody is glued on what ms. yellen is saying and not saying. the fact is the stock market has done nothing. and the momentum stocks owned by the retail clients and some hedge funds are down between 20% and 50%. whether it's yelp, amazon or netflix or tesla. whatever you look at, they are down substantially. >> all right. meanwhile, you're calling us from like leonardo the dicaprio's beach. how far is the ocean where where you are, marc? >> 30 meters. >> you are a dog.

i knew that. it's not raining. is it sunny? >> it was sunny during the day. i'm actually on what i call a very attractive area. i am in central vietnam on the east side facing china where they have now trouble. the stock market suddenly went down 6% today. it's called china beach. stkpwhrf i know exactly where he is. >> he's probably sit anything a pool right now. >> i'm not at the pool. i'm in my office. >> but you're not alone. i know that. just kidding. >> he's got a pool in his office. >> marc faber --

>> cnbc is most welcome to come and stay at my villa for free. for free. >> we could never do that. anyway, thank you. we appreciate your time today. and we'll check back with you. like i say, ignore marc faber at your own risk. is this you? >> we have fannie numbers. fannie mae talking about how it lost 6 cents a share for the quarter. the company says it had positive net worth of $8.1 billion. it does see 2014 net substantially lower than 2013. part of that because it expects mortgage originations to drop by 40% from 2013. that matches up with bank of america and other companies. when we come back, david eihorn

slamming athenahealth. call it a bubble stock. jonathan bush will be here to defend his company against that call. he joins us at the top of the 8:00 a.m. hour. "squawk box" will be right back.

>> coming up in the next hour, athenahealth ceo jonathan bush responding to david eihorn's short call. you can't afford to miss it. the first time he will be talking about since eihorn said

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athenahealth strikes back. jonathan bush. first on cnbc interview. council of economic advisers chairman jason furman. >> investors shocked by tesla's quarterly results. the final hour of "squawk box" begins right now. welcome back to "squawk box". i'm joe kernen along with becky quick and andrew ross sorkin. check out the futures after the ecb rate decision. jobless claims will come out in 30 minutes. they have been volatile.

partly weather related. we got down under 300. back up to 340. so we will see what happens today. there are some headlines. really, if i had the entire world to choose from no one other than -- >> i will tell our viewers about the headlines this morning. bank of england and european central bank with policy statements out this morning. they both left their key interest rates unchanged. so it's a headline but not a huge headline. mario draghi on the latest policy statement in the news conference the a 8:30 a.m. eastern. of course we will be monitoring that for you. a mixed morning for eli musk. at least the companies associated. good news, reported first quarter profits 12 cents a share. the stock is falling on a current quarter outlook. solar city raised its full-year forecast with revenue above

expectations. apple head of north american sales is leaving the company. he's going to be replaced by deck, currently in charge of sales for japan. comes only two years. he had been chief financial officer. joe, i'm surprised you have not said, done some kind of imitation of all the people at home rushing to the tv because of this news. >> which news? >> about mr. row. >> he claims he is in position to succeed the way the bulls hope. it could easily fall. shares of athena fell at the conference where people have

done this other years. it's a charity conference. with us is jonathan bush, chairman and ceo of athenahealth. 4. >> it's a list of noncommunists. >> it was over 200. now 107. there have been storied stocks. athena got caught up a little in some of the air coming out of these names. >> yeah. >> his main thrust is not necessarily a cloud company or sizzle software. you're more like adp. what is bpo? >> business process outsourcer. >> usually a company like that

will trade in the mid to high teens. if you're 1.07, 2 1.10, you're triple digit 100 times earnings. >> yes. >> this is where he is a hero of athena cause. it is not a bpo. it's not even a sass company. it is a software enabled service. this business model holds the greatest hope for economic growth in this country for the next decade or two. it takes software, gives it to customers in exchange for using that to solve complicated expensive problems. >> you have to say that again. >> you're promotional. the greatest opportunity for

growth anywhere for the next two decades? >> for our country, yeah. >> this is what i see. don't buy it if you don't like it. >> you have used the word mobile, social, cloud. >> right. >> it's all the key words that get people excited. >> yeah, yeah. >> you're not saying there's anything wrong with the company at all. he's just saying the valuation doesn't make sense. >> for all i know he's right. what he also says is we're like a bpo. we're not an enterprise software. everybody uses the company's network. everybody uses an internet native network to do it.

everybody on athena, all five services are on one instance, one application. >> let me look at other stuff. right now you work mostly with doctors. you would like to get into hospitals. >> that's right. >> companies that do that for a living, it spent $3 billion. >> yes. >> so part of your growth is you will introduce the system. >> 2016. >> turner, epic and others are great enterprise companies. they sell you this a box 100% of the things if you unpack them and plug them in right you could run a your whole hospital right. >> you have to spend the money to develop a system to take these guys on. we're just going to say, hey, use our scheduling, their scheduling. we're both connected. for nothing, start using our

scheduling. we're sending you a patient. let us check the eligibility, make sure the precertification is in place, the insurance card is correct. these are things people who own wear can't do and we can do. >> on a multiple basis, on a comparable basis, people say who what should it be comparable to. you say what are we and who should we be compared to? >> right. >> you're the investor in your company. >> right. >> who should you be be compared to owe a multiple pe basis. >> you're the first guy to do something a certain way. companies look look like us, people compare us to sass companies. the company spent $11,000 to get

that, including all the sales and marketing. they could have done a lot of work we did in addition to providing a piece of software over the internet. they decided instead just to give you the software and say godspeed, john glenn. we would say we are going to manage your list of prospects, edit them when they change, do postcard mailers. >> you have compared yourself to sales force.com. >> sure. >> and amazon. >> yes. amazon is an example of something that gives you software and only gets revenue when you get the result. they own warehouses. >> you realize this sounds very salesy. >> a couple of years ago i think earnings were $3. estimates keep coming down for revenue growth. it's not going to be $3.

it's going to be 1.07. the street, after missing numbers, they always give you a pass on. >> yes. >> and margins were supposed to go like this. >> we bought one come. every product every year, what we do with the cash recreated is invest in r&d for new product. last year we announced we are going to tkrgrow r&d 45%. it doesn't take three years to set up. rather, three months. that's right now only us. a huge opportunity is where everybody is on software.

everybody already bought a billing system. replace the building system. 70%. 70% of our clinicals replace brand-new software based mmr. >> $16,000. >> 16,000. but in the numbers these analysts use to do this discounted model to get to the stratosphere, you're going to have a lot more doctors. not 16,000. but 63,000 a year. >> somebody should look back and see customers on the network. there are five, six products you can buy. they have big dig counts that good away over time.

the revenue goes up and up and up. give us a small percentage if we improve this. it's very little risk to the client to say, sure, if you can do that, i'll add that. that's why we have been able to grow right through these sclerotic software. if you use your blender wrong to make a smoothie, it's not the blender company's problem. >> obviously when you come on, you seem completely committed to this. where do you stand in terms of what percentage of the company you own. have you sold stock recently? tell us a little bit about that. >> the best thing is to have a temporary deep dip in your stock. we are looking for cfo. act now while supplies last.

this is a great time to get your stock. >> i'm assuming i'm risk. the idea of creating the heat care cloud. you guys are no dummies. it is a new idea for people that there could be a free public utility only paid for as you use it. like the power grid connecting everybody no matter they are. >> does that mean you're holding. >>. >> 1 thoeu sales a month. like tom cruz. >> what do you think the value of the stock should be and why? >> i am absolutely sure athenahealth is a $1,000 stock. i have no idea when it gets there. i don't know if it's because today because everybody is discounting it back. is it later?

we have a business unfriendly government. there's not a lot organically. you have to move further up. >> is that based on revenues? discount it back. there comes a time when we have enough for the network to work. it goes away. for example, collector. we used to receive 95% of all payments for our payments on paper, scan it, enter it, post it to the system. today 92% comes through electronic in a what we have built plumed into the rest of the insurance network. it's ebay margins for that one piece of our business. each piece of athena's 234e9 works will generate ebay

margins. it will take decades. >> the way i look at the company stability and reliability, are we gaining enough so we don't slip down the beta max. there's not enough nodes. i say grow revenue 30%. make sure the gross margins grow. >> i asked for a different reason. you have talent. >> yes. >> the people that work there. >> yes. >> and you pay a large part in stock. >> yes. >> so if the stock drops you have a problem. >> yes. >> otherwise, the stock wouldn't matter to you. >> if it goes all over the place frantically forever it's more complicated. if it drops and stay dropped, we will pay people there. i, who took all stock options, let the record show at 195. i have to wait a while for my next million.

if the market doesn't see it, they shouldn't make any money. >> explain the shortfalls. has revenue in the last two years, let's say eight quarters, how many times has it missed or been guided down? >> we set every year to say, look, i don't know. given how much unfilled toil there is, we're going to grow 30% a year. given the the complexity of serving the network that's as much new dock without underserving somebody. this first quarter i think we grew 27. the reason was our newest family member has been traumatized by the refactoring. so we lost a lot of salespeople. we will get them back in position. they will make their quotas. we'll be back. >> it is probably a more

important metric than earnings per share at this point. >> gross margin of products. they have to get more profitable in and of themselves. and growth of the network are the two things i focused on. >> you can look at our gross margins. >> you recently had a big win in new jersey getting the largest medical network. >> yeah. >> what type of investment did that take to get and where do you see the returns coming? >> perfect. i assume you're referring to summit medical. one of the most respected in the country. this is distracting. let us do your billing. we'll connect up all your patients. we're connected to all the insurance companies. you don't have to set up anything. we'll just start doing it.

they beat us up. it's new jersey. finally we got them down. tiny price. we delivered enormous improvements in their collections. they say why are we still doing this over here? everybody is dancing in the revenue department. can you just turn on the oven? of course. revenues up 40%. everybody is connected to the labs. >> and the idea of an investment to get in because you want us to focus margins and what you think the affect is. >> i happen to know amazingly, summit received an ipod with a video from me saying i cold called you 62 times.

and he said i'll only talk to the guy on the ipod. absolutely. i'm available that day. that was a couple of years ago. now they're on. they're going national. they're expanding nationally. they found a way of scaling with no cap ex, no staff. that's the athena story. >> summit medical is where i put all of my family. >> yes. i looked you up. >> it's the best pc -- >> another example here -- >> it's like a hospital. >> it is a temple. it's not a hospital. they eliminate 35% of the in-patients that a normal population does. >> with all the excitement he doesn't have to answer the questions. >> same with ascension health. they all had emrs. it's a national chain. they had to switch to our building because the mother ship said they had to.

each little ministry said i would rather switch. i'm sick of software. so six out of seven will be adding the medical record. that's why people are valuing the stock. it's a different animal than the software market. >> you have been on sabbatical. >> eight weeks. >> and you're back. >> i'm back. are you kidding me? my god, i'm back. >> to the extent this will be a distraction or something you have to deal with not just today but i imagine the next six months if not year. >> your frustration is my evidence of maturity. you can imagine my first instinct. there should be people against us. >> i haven't heard much about

athenahealth. now you can tell story. >> it would be a $40 billion market company company. >> they're stuck in software. >> you don't see when someone says you claim to be cloud based you don't see -- >> i claim to be male. i claim to be human. >> you don't see it? that's not a leap beyond where you should be? >> this is a fundamentally cloud based company. 00% dependent on the cloud. our analysts figure out why. drop a rule in the system. every single doctor on the network gets it. never gets that claim denied again. every doctor can see that specialist and never send a fax ever begin.

>> what did you call it? backbone. >> nation's health backbone. >> and you're investing the health care network. >> health network cloud. i'm building a way of using al gore's internet. the idea is we wouldn't be shopping so much if besos hadn't made the click reliable, delivery reliable. he created a gated community in the internet that we feel good about. >> i understand what you're

saying. we actually used bpo. i'm not surprised that's one they used to gain efficiency. >> ubs. >> i saw your sign when i was i touring different locations. >> i understand the use of the video to show that the ceo is erratic. that's just you. i don't think you're erratic. >> if you were to read the transcript he wouldn't have seemed crazy or erratic.

>> it can come across as salesy. >> nobody knows what it is. i'm sure it's going to work. sometimes i sound, you know, so far we have been right enough. >> eventually you have to answer to the forward earnings. >> we start to get 10%, 15%. there's no more airy fairy. it has to start turning around. >> you have answered to a lot of that already. just air coming out of the home up stocks. you have been coming on since the company was fledgling. >> you guys keep paying attention. >> we wish you a lot of success. >> appreciate it. tesla disappointed. phil lebeau jumping into the

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>> welcome back, everybody. we lost some of the gains. jobless claims coming up in just a moment. stick around. "squawk box" will be back with those numbers. there's a new way to buy a car.

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welcome back too "squawk box", everybody. we are a minute away from jobless claims. rick santelli is standing by at the cme. we have steve whiting, global chief strategist at citi. take a look at shares of mcdonald's. global comp sales up 1.2% last month. that is slightly better than expected. u.s. sales were flat. that was better than the industry had been expecting. europe was the only region in the world where you saw the estimates falling shy. again, that's a dow component. stocks up 4%. >> and they have had trouble. they did the coffee. the fruit and the yogurt. >> breakfast has been a big thing for them. >> they have head winds with the

whole health craze. gaffy does a whole routine. >> fat daddy routine. >> oh, me, i'm just waiting for a hooker. i'm not eating a hamburger. >> numbers were 344,000. rick has the incomes. >> all right. initial jobless claims. well, they were revised last week up to 345. then they nose dived down to 319,000. so that is a big drop. but remember there was easter holiday seasonality issues going on. it was a large drop. many expected 344. it now stands at 345. was overstated. continuing claims from 2.76 to 2.6 million. i'm not embarrassed to say i

like a big mac every once in a while. it's all about the euro counter seu. we have jean claude on. what a nice day to talk about all things central bank. they didn't do anything with rates. they could probably use the microphone potentially to continue the about zoo qaa warfare on markets. they have accomplished a heck of a lot when you consider where southern european economies lie on the map of good gdp relative to where their interest rates on. the press conference is starting momentarily. and it looks to me like there is volatility in that market at this point. and we also of course have going to have the last of the auctions today which total 69 billion. today it is 30-year bonds. back to you. >> all right. for more on those numbers, stick around. we have steve liesman. also steven whiting. steve liesman, what do you think about the numbers?

>> rick said the word, seasonality. you had this later easter. that factors in. what i like to do is fall the forward moving average. 3.20, 320, 324. you have a chip in there. tell us what that means for monthly payrolls. >> it's keuconsistent with 238 april. it was a shift of employment that would have occurred in the winter into early spring. so probably above 230 for the may employment report. april may be one of the strongest of the year. we will have continued declines in the unemployment rate this year. >> the participation rate, that do you think of that, staoefren? >> it has been incredibly vexing. a large number have dropped out of the labor force from 2007 on. it's been very, very resistant.

it's critical for this economic cycle for the recovery that we get labor force growth. it's been close to zero. so i think there is potential for, again, younger workers to come back into the labor force. i can't imagine they stay out forever. but this is obviously really important here. because the fed can't print labor. >> i brought along some charts. alan krueger has been on several times with his theory that basically says the long-term employed will drop out of the workforce and aren't coming back. so i asked him to calculate a couple things for us. the extent to which the long-term unemployed dropped out and the extent to which they found jobs. >> 28%. >> the highest in many, many months or years actually. >> all right. >> that is a really bad number. >> it's a bad number. it accounts for a big part of the participation rate. leaving the workforce. and you can link it directly back to the end of benefits. the idea -- >> is that two years?

is it one year? >> 27 weeks or longer. >> this is not necessarily an argument for keeping the benefits in place. what it does say is when you have these benefits in place it keeps people attached to the workforce. it doesn't say that it helps them find work that they are more likely to find work either when you get rid of it or after. a very slight increase in the job finding rate. all it does it seems to me -- steven, tell me if i'm wrong here, it causes them to respond to the question, are you looking for work? yes. it doesn't say let me find work. it would be a humanitarian reason or aggregate demand reason. >> again, you don't really care about the number. you care about the realities. they are not competing for unemployment. they are not forcing any changes in the economy, competing for wages and these sorts of things. ultimately, whether they stay

out indefinitely is another question. the fed is essentially running an experiment. they want to see the labor markets tighten a lot and see if they can drawback into the labor force. they will hit capacity restraints. >> you saw this number that puts gdp as a contraction. >> you were the first to report that. >> nine us 0.3. the range is .1 to minus .8. >> there is at least half looking for four. >> a lot of commitments now that agree with steve liesman. they believe it's possible to have 4% growth for the rest of the year. second, third, fourth quarter.

even though that won't quite get you up to 3% annualized. and many commitments say a smidge more concerned if we can have five quarters of 3%. the laugh time we had three-quarters of 4% gdp was the last quarter of 83 and the first two quarters of 84. and the last time we had 53% was the last quarter of 98. ponder that. historically not a lot of -- >> this better be i hell of a snap back. >> just to be clear, we are showing 4% and continuation. >> 1q, 2q. >> it will average 2, 2.5 if we're lucky. >> we were speaking earlier, another chart looks at education

obtainment. and it seems those who don't have the education are those who are long-term the unemployment and not part of the participation. it's exactly the same. >> people dropped out of school because they were attracted by the construction business. >> aren't we forcing the participation in? couldn't we be here for a long time? >> we have to wrap here. what would we do about it? is it a government program? a business program? what is the course of action. >> let the free market. >> one of three options. >> it's not easy. it's the right point. >> robert will be with us the rest of the program. tesla beating estimates on the top and bottom line. there was mixed guidance. shares down 7% in after hours trading. phil lebeau joins us with more on this story.

>> the haters came out last night on the conference call. mainly if you were online and you read the comments from people who were saying, there you go. you have problems with tesla. in the conference call, tesla said they would be negative free cash flow. they ramp up production for the model x. ultimately, working on r&d as they develop new vehicles. and getting ready for asiding production in china and europe. this is a company that's grown. some people are saying aha, here you go. i have a problem with tesla. about 35,000 is what they expect

to deliver. deliveries in the second quarter, 7,500. that's in line with what people are expecting. it's all a matter of your perspective, guys. look at these comments from yesterday and say you know what, i don't think they will continue to grow at the same rate. or this is what you get when you have a company that is growing. i'm not sure how you grow a business without increasing capital expenditures. >> right. >> all right. phil, thank you. >> thank you, phil. coming up next on "squawk box", jobs, the economy and your money. chairman of the council of economic advisers jason furman after the break. in the meantime, futures have been moving around all morning. we have some red arrows. dow looking like it will open down 15 points. today is thursday

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>> the u.s. unemployment rate may be down, but the rising number of americans dropping out of the labor market is a troubling sign. jason furman joins us with more. i'm not sure if you just heard our last conversation after the jobless figures came out for the week. wondering what you think about that approximate. a huge number of people that have been out of work more than 27 weeks, what happens to those people? >> let's just talk about the general trend in jobs.

288,000 jobs last month. 2.4 million private sector jobs in the last year. dow see an economy continuing to gain strength continue to go cover from the ravages of the great session. you're absolutely right, if there is one thing we would like to see get better, long-term unemployment. it's twice as high as what it was before the recession. we're making progress on it, but we need to do a lot more. >> what do we need to do? just limit it down. there are basically three options. one is a government program. a second would be a private tech sore program. the third is just letting the free market make its way. what do you think the answer is? >> one simple thing is unemployment insurance inspired

that helps people through the hard times and helps keep them connected to the labor force making them look for jobs. the senate passed it on a bipartisan basis. we would like to see the house pass it. they are willing to add to that with the house. a second thing is the president is working with a lot of ceos all across this country to institute best practices. make sure you're not inadvertently working up a screen just because they have had bad look. the long-term unemployed, the unemployment rate is coming down. this is something we can solve. >> you can explain this to me. when we talk about corporate tax rates, i saw some of your comments. we don't want to get involved with a race to the bottom. i'm trying to figure out who you

are trying to protect in that sense. do you think we need to protect all countries so that they can raise taxes through corporations? what would be wrong with unencumbering corporations around the world to compete even better and create more jobs and reward more shareholders and to put the taxes somewhere else. why should we be worried. >> we want a tax system that's neutral. so businesses are making decisions based on what's best for the economy, what's best for their bottom line not what's best for minimizing their taxes. we would like to broaden our tax base. at the same time we want our companies to compete and succeed all around the world.

we want them to do it because there's a good reason, not to save money. >> we haven't heard the white house or washington weigh in on this pfizer/astrazeneca thing. in large part on repatriotization. the brits, all the officials are talking about it. what's your personal view of what has taken place here. >> it's a private business transaction. the british do have certain authority over. it's not something we have authority over. i think there are things you can do to tighten up the rules. far and away the most important thing is for us to fix our broken tax code so we are not given incentive on stuff like

this approximate. >> here, here. >> recently we have seen reports positive and negative on minimum wage. we have seen that may impact directly and indirectly 28 million. but the ceo comes out and says it may increase unemployment by 500,000. although a lot of economists have challenged that. what are you hearing about where we are on minimum wage? what are you doing to try to get the states at least to go on their own with it? >> we're making a lot of progress in jobs. we have begun to make it in pages. raising the minimum wage is one of the best steps we can take. and the president this year is a year of action. he's not just trying to do things here in washington. he's trying to do it around the country. connecticut, maryland, hawaii have raised their minimum wage.

companies can like the gap have done the it. the president did it for federal contractors. it would be well within the range of what it has been in the united states. well within the range of other countries and well within the range of what economists have studied and found little to no impact for. >> do you with the prescriptions in mr. pickity's book in taxation? >> we need a more progressive tax code. there are bet ways than what he proposed. the president in particular is proposing not to raise rates but to limit some of the tax benefits that high income households get. >> from the top 10%, jason? that's pretty progressive, isn't it? >> i don't have the number in my

head. >> they tonight make 70%. >> we have a medium and long run. we want it solved in a balance wait, reducing tax benefits for high income households. >> growth would do it. that isn't coming from minimum wage. >> we definitely need those. when we come back, jim cramer from the new york stock exchange. ♪ ♪ over 1.2 billion eyeballs are on us during the two weeks at wimbledon. true tennis fans want to know what's happening, they don't want to just see what's happening, they want to know and understand why it's happening. anybody can just put data up, but we want to get a reaction, make it far more interactive. we rely on the cloud to provide that immersive digital capability. you stand behind what you say. there's a saying around here,

around here you don't make excuses. you make commitments. and when you can't live up to them, you own up, and make it right. some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it when you know where to look.

and down to the new york stock exchange, jim cramer is joining us now. good morning, jim. i want to talk athena real quick. where have you been on athena? do you like this company? >> i like it and then it went too high along with a lot of the companies that were trying to be cloud base. a lot of my views stem from the fact that salesforce.com in the last week of february reported a great quarter and then went down. since then, i've been tempering my enthusiasm just on orders going up and i think athena is a

medical records company. in the end, that's what it is. and the medical records companies don't deserve those premium multiples. at 90, i liked it. in the 100s, i didn't. everything for a price. >> and then i've had people talk to me about tesla, that it's hard to be a huge manufacturer of automobiles, especially since it's so cyclical and our economy is so cyclical and you've got to be good at saving or rainy days and labor and everything else and maybe we can't assume that they have this whole thing licked because they have a great car. >> listen, we're going to make the cars. they do make more money than amazon. they have china demand. that is something that you said before the world turned upside down. you talked about orders in china. now you talk about earnings per

share, dividends, and buybacks. >> jim, we'll see you soon. up next, a big announcement from robert wolf. also, priceline group darren huston will be joining us. we'll be right back. ♪fame, lets him loose, hard to swallow♪ ♪fame, puts you there where things are hollow♪ the evolution of luxury continues. the next generation 2015 escalade. ♪fame

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>> welcome back. let's get to our guest host, robert wolf, the ceo of 32 advisers. he's expanding his business into a new area. a bit of an announcement? >> yes. we'll be adding to our cross border advisory. we're going to have a company named measure drone as a service. it's a 32 adviser company and we're going to help companies around the world use drone as a service. >> when you say drone, you're saying it cingular. why not drones? and you're going to be advising companies on how to use drone? >> the only thing i can think of when you say that is amazon. >> not military, obviously. i want to preface that.

but agricultural, disaster recovery. there's over 1,000 manufacturers of drones. and we think from a cross-border perspective, we will help in the key approach. we have justin overman and justin detlick who has 15 years in this experience. >> you have to get the faa to sign off, correct? >> correct. there are different regulations in the u.s. than in abroad. in 2015 the time period is going to change a bit but the way we are looking at drones is, look at a farm. they have 1,000 of acres. they want to understand their pesticide or a pipeline. >> what are the safety issues? are they equivalent of very, very expensive toy helicopters with cameras on them and

internet connection. >> we're looking at the aspect for a company. we're not talking about going into new york city and having these drones go through times square. ours is going to be much more tactical. we also want to help states on disaster recovery. >> right. >> you look at the recent mudslide. maybe if there was a drone aspect. >> i know that you're technically not a lobbyist, but how much of this role gets into washington and spent time with politicians, congress, senate, and other regulators around this issue? >> zero for us because the rules are already in place. we are well aware of the rules and we can help companies get the operational efficiency by having them understand the rules. we're also going to help them understand what rules they should be looking at, the size, the hours. we're going to have a turnkey approach. it's called measure. we're announcing it next week. >> it's been a pleasure seeing you. thank you for joining us. >> and i want joan to know i

paid his bet off. >> very quickly, i want to take a look at the euro. we were looking at 1.5 and now it's 1.39. this comes as the it's time for "squawk on the street." good thursday morning. welcome to "squawk on the street." i'm carl quint quint. markets are more stable after yesterday's volatile ride. a lot of earnings today. janet yellen, day two on capitol hill. yellen expressed the concerns about housing yesterday. and then in europe, the bank of europe and ecb left