cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. stocks are coming off another record day, the dow is now just 57 points away from 17,000. take take look at that. 16,943. the nfib, small business index comes this morning and at 10:00, we get wholesale inventories. goldman's top forecaster is singing a bullish tune. jan hatzius says the economy is growing at an above-trend pace. among the reasons that hatzius is positive about future growth, he's citing improvement in the housing sector. corporate news, general motors now holding a shareholder meeting today in detroit, just days after the automaker released its recall report. investors will be questioning ceo mary barra, families of

crash victims planned a protest outside that meeting. phil lebeau will join us from detroit at the top of the next hour. i'm sure we'll get an opportunity to talk to him about what this is all about. web hosting company go daddy filing for an ipo up to $100 million. >> it said $100. >> $100 million. >> i could help them with that if i owned the entire company. >> you could. you could. >> that's an important word, million. >> could have been priced at 100. >> could have been $100 a share. >> who knows half the time. that's what makes it -- the job would get dull. >> right. >> just reading stuff without actually -- it's almost like a puzzle, almost like a puzzle of what we're trying to say. >> if it was just reading, none of us would be -- >> we don't want to do that. >> no word on which exchange

godaddy intends to list on or the symbol it would adopt. go daddy perhaps best known for one of our favorite guests on this program, future race car driver danica patrick. the company was founded in 1997, acquired in 2011, kkr and silver lake. >> they had a model, that was her there, they had one prior to that that i thought was one of your favorites. >> we had her as a guest and they had the famous ads. what does the guy say? >> not just a member. >> i'm president of the fan club. >> a clients or whatever. >> i use go daddy. >> what does it do? >> i use d it five or six years

ago. >> some of them were so racy, they got criticism. >> yes, they did. >> bathroom stalls, cleavage. >> this year's were not as racy but pretty cool, too. >> racy in a different way, danica. >> this year was not danica. she was last year. >> the previous year. >> this year i have no idea. >> the thing with the big weight lifters. anyway, it's a long story. we should tell you this morning, about a couple other things. the head of paypal is stepping down to join facebook. i wonder what this means? we saw john donahoe last week. david marcus has been running the ebay unit for two years. he will soon run messaging products for facebook. that could hint that they are using transactions. >> this was a high-level poach.

mark zuckerberg got in with this. it must have something to do with monetization. >> they bought a company. donahoe has talked in the past about how a lot of people, he buys in, entrepreneurs, he brings them in. this was a ceo of another company they thought about three years ago. interesting from that perspective. one other piece of facebook news, that company accidentally releasing its snapchat competitor yesterday. the new photo and video sharing app called slingshot popped up yesterday afternoon but was then pulled down. the company spokesman says the app will be ready soon. facebook tried to buy snapchat $3 billion last year. have you been snapchating. >> no. >> as a parent i'm not a fan of it. i don't think it's the type of

thing -- >> it's better than regular messaging. >> no. as a parent you can't track what your kids are sending back and forth. it's concerning. as kids get older you start to wonder what you're doing. not at this age but at some age. >> i would prefer everything disappear that they do. >> so it doesn't -- >> i think it makes them think things disappear. they feel like they can send stuff. you want to make sure -- >> if you live in europe now you can erase your history. it's all okay. >> there's a good -- there's a really good piece, i was going to send it to you, becky. >> does it have to do with ger s s germs? >> no.

>> it's a narrative piece. >> i wouldn't have liked if you sent that to me. i'll take a welcome at it anyway. >> yes, take a look at it. if you look deeply, it's a vision. brett stephens. international game tech knowledges reportedly hired morgan stanley to explore a sale. this is a company i followed for so long. it's been rumored off and on to be for sale. the company makes slot machines. reuters says that igt has been working on a sale for more than two months. let's check on the markets, even if it goes up 20 points a day, in the dow, that continues to get us -- remember we've been over 16,000 a few times. now it looks like we may finally get close to 17,000. yesterday, the s&p closed above 1950. 1951. but you can see today that we're going to give back a little, at least on the open.

let's take a look at -- it is summer. it's the summer driving season. oil, it's been quiet but there's a new price for oil and it's basically $100. ten-year, maybe 2.60 is sort of there. there's an interesting chart in "the journal" on the front page. any questions as to why this has gone down and down and down. we should have been watched what happened in spain. you can see what's happened in the ten-year happening globally. instead of looking for answers, the entire globe, there's the ten-year spanish bond. so if spain comes from 4% to below us, why would we be going up? i don't know why these bond experts didn't figure that. all the economists didn't figure out maybe you should look at global interest rates. let's look at the dollar. i need about 1.20 to book a trip

over there. >> you have a ways to wait. >> were you robert frank source on these luxury safaris? >> i was not. >> he's coming on. they are really pricey. really pricey. >> that goes without saying. he didn't just interview you? >> he didn't just interview me. i sent it to some friends. i heard about it yesterday. i saw robert. >> stop try ing ing t ing ting anything higher. >> oh, yes. >> weren't you that close to animals? >> he weren't on a moving safari. >> i don't like setting up or taking down camp. you don't have to do that, do

you? >> oh, no. >> you show up, they do the setting up and setting down. >> yes. >> you were at a structure where you stayed. >> yes. the elephants would come and drink in front of you. >> didn't you see lions and tigers and bears? >> no bear. >> you saw lions and tigers? >> no tigers. >> apparently 88 staffers for 18 people. >> 88 staffers for 18 people? >> yes. >> wow. >> robert has much more details on this. that's a ratio higher than your apartment. >> our ratio is 73. >> 73-4? >> this is how bad my math is. >> the dow which we were just

talking about and the s&p closed at all-time highs again yesterday. fresh new record all-time highs. while the vix is now trading at precrisis, prefinancial crisis levels at 11, just dead in the water, joining us now to talk volatility is joe bell, senior equity analyst at schaeffers investment research. who first said it's too quiet? it is. isn't this a time where you start wondering if something is brewing, joe, or not? >> that's the question a lot of people are talking about whether this means there's complacency in the market. we look back historically when the vix first drops below 12, what does that mean? it it's happened quite a bit, it's generally a characteristic of the bull market. if you look at one month, three month and six months out, it generally doesn't trigger automatic higher volatility. it triggers lower than normal volatility versus anytime return. even during the prefinancial

crisis we dipped below 12, about 2 1/2 years ahead of the market top. it's a characteristic of the up-trend, not necessarily an automatic sell signal. >> at schaeffers, do you try to interpret why it's happening? or do you look at what's happening and trying to figure out where it's going from here? i can make two cases. one is that the economic backdrop is kind of benign. it's almost kind of a goldilocks thing. inflation, someone wrote a piece today that it's higher than people think. feldstein? who wrote that? yes, marty feldstein wrote one that it is above. is it because it's generally benign and a pretty good environment or is it what other people say, the fed is still here and they are masking the normal volatility from pumping so much money into the system? >> yes. that's definitely true. we've been hearing that for quite some time as far as this being a fed-fueled rally and

things of that nature. when you talk about the volatility, even the 20-day historical volatility on the s&p 500, it's below what the current implied volatility is. participants are embratsing or expecting higher volatility than what we've had. one interesting thing on the vix call activity, we look at that a lot. it's become a popular hedge the past couple of years for hedge funds and institutions. that higher volatility generally happens during market declines. we've seen about as five times as many calls on the puts for the past 20 days. it's becoming a more common theme for people to hedge and brace for the higher volatility which insulates the market, the potential downside. they're not going to do that panic selling if we get some sort of pullback. it creates a floor. >> i can see that when they make the case that someone like -- president goldman, that they can't trade now because there's no volatility.

citigroup will have a dropoff in trading volume. if the fed and central bankers around the world continue to keep interest rates artificially low, the money finds its way into financial assets and even if there would be something that would cause people to sell, they don't sell because there's nowhere else to go. do you think that is part of what's happening here? >> that's part of it. when you talk about the stock market, there's hundreds, thousands of different factors that go into what affects the market. that's one key factor to look at. we look at expectations, how high or how low the bar is set for the market. you talk about rates and interest rates and bonds in the u.s. that goes right along with that. we saw polls where 95% of people expected higher rates than 2014. it's one example of if the masses believe one way, it's often the opposite case, because

they believe in one theme. >> have you ever had a tom and chi? >> no, not yet but it's becoming popular. >> i had never seen "shank tank." i'm watching it. blake happened to see it and she says it's like living the dream. we're watching reruns of "shark tank." >> they put bacon on it, all kinds of stuff on it. that kevin o'leary -- >> is that on a doughnut? >> no, it's not just doughnuts. it's grilled cheese and tomato soup. >> i remember grilled cheese on a glazed doughnut. >> that was a specialty or something. >> yes, he's in cincinnati.

that's where he started. you can get a franchise. it's interesting to watch that. anyway, we watched this. i watched one period, until 9:00. if you couldn't win the first two games you were going to have trouble. they needed to win one of those. the los angeles kings beat the rangers at madison square garden to take a 3-0 lead. and i don't know whether we have this one -- i mean, it looked like it was in the goal. the guy's name is quick, jonathan quick. he wasn't even in front of it. he flailed and stuck his stick out. a ranger was in front and still couldn't put it in the net. they didn't put any in. he's been amazing this guy, quick. he's quick. >> he is. >> stopping 32 shots for the shutout. the kings 3-0 in the best of seven series. game four is wednesday night. we're still holding out hope. that would be the ultimate comeback is always pbl. you never know. >> how often has that happened?

>> i don't know if it's ever happened -- in almost any world series, anything that goes seven games, when you're down three, it's rare for someone to come back. this should be an assignment. we'll talk about hillary's book. we should read -- brett stephens, i like the idea that -- she still doesn't know if she's running. i just don't know whether i'm going to run. >> as opposed to jeb bush or chris christie or anybody else. they've all declared they're in the race? >> no, they're not on a book tour going from stop to stop to stop. >> it is a much bigger question if they're going to run. >> this is ludicrous. i like it. i like the way they talk about the scripted nature. >> we'll talk about miss hillary. when we come back, this morning's "executive edge" goes on hillary clinton's "hard choices" book tour. will they let babies and

kids into first class? that's andrew's question. >> choreographed reality. >> coming up in the next half hour. >> there you go.

welcome back, everybody. it's time for the executive edge. we start with politics. hillary clinton embarking on a book tour and a comment she made in and an interview last night

getting a lot of buzz this morning. the chairman of the rnc tweeted how out of touch is hillary clinton when dead broke means mannings and huge speaking fees. >> diane sawyer pressed her. she said, okay, it was funny, when we were trying to buy houses and trying to get mortgages. and someone said, but, correct me if i'm wrong, hillary, but $200,000 per speech, do you think people -- >> $5 million in speaking fees. >> $100 million is what they made. >> he's worked so hard. >> do you really think average americans, who make $40,000 or $50,000 a year, if you can make that for a two-hour speech, do you think they can empathize

with you. >> she did a great job trying to answer the question. >> i think they had millions of dollars in legal fees. it's hard for an average person to relate to any of that, including having millions of dollars of legal fees. >> going into the white house, you have a lot of costs while you're there. >> if you're trying to maintain a household in washington, d.c. and back in your home district and pay to go back and forth -- >> a lot of those people do go into debt. that is true. >> when you come out the other side you have a chance to make a lot of money back because of the prestige. >> they might have had a few more legal fees than some of the other inhabitants that went into the white house. there were things going on. i have not seen the lewinsky stuff yet with diane sawyer. she probably has that totally down on how to handle that. she has benghazi down.

>> did you read the lewinsky piece in "vanity fair"? >> i did. >> what do you think of that? >> it was very well written. >> bill maher feels bad? >> i think she had help with it. it was incredibly well written and it made me rethink some of the things i thought before. >> for benghazi she was saying, diane sawyer was pushing her on whether she wished she had done -- been more concerned with the safety of the embassy. she was saying, well, i put a lot of pressure on people who knew how to do things like that. they know how far away barriers have to be to prevent a saw cried bombin -- suicide bombing. i pressed them hard myself. she had a pretty good answer. you figure she would have.

that's why she's going on tour to put a lot of these things to rest -- >> ahead of a potential campaign. >> exactly. >> we don't know. potentially. donald sterling is pulling his support from a deal to sell his l.a. clippers to former microsoft ceo steve ballmer. sterling's attorney says he will pursue a $1 billion lawsuit against the nba. we thought this was a done deal. privately some suggested this is because the nba said it wouldn't reverse the lifetime ban or cut the fine if he went along with the sale. >> he thought that somehow if he sold the team -- >> he's not saying that now. this is what people are speculating. >> he wants to sell the team as long as he can go to the games? >> he's saying the whole deal is off, forget about any of it. this was based on private recordings that were illegally made and used by the nba, so they shouldn't be able to take any of these steps.

i think he wants to hold on to the team. >> do we believe the tapes were illegally made? >> those two deserve each other. >> v.stiviano. >> phil jackson, he's very tall and won a lot of championships. he hired derek fisher. hopefully he'll be a great coach. he was a great player, point guard put he doesn't have a lot of experience coaching. 5 million a year for five years. in your view, you think ceos may get overpaid. because there's no real market. don't you think they could have gotten some dude in here for $600,000 a year to coach? >> they could have but they couldn't have got phil jackson. >> no, not phil jackson, derek fisher. >> yes. >> they could have gotten a lot

of people -- why go right to 25 million whether you don't know if he's going to be any good or not? >> do you think he would have taken the job for 600,000? >> i don't know. somebody else might have taken it. >> you could have gotten a good basketball coach. >> you don't know that. >> you don't know if you could get a good basketball coach for a million a year? there's plenty of coaches around that would do it for a million a year. >> he wanted that one. there's a market for that guy and then there's the market for the other dude. >> no one else was offering derek, necessarily, a job. >> how do we know? maybe derek didn't want to work. you had to pay him a certain threshold. >> i think we should be happy when someone does well. >> i don't disagree with you at all. >> even if ceos, the only thing i think that we should care about is the cronyism issue that you've discussed, putting that on you now. >> good. i like it because i think you're

right. >> i think he's said that the crone did i boards, that has largely been dealt with. i don't know if that's true or not. would you serve on a board? you're on boards for charities. >> if i wasn't a journalist, yes. >> you're on a charity board. >> i was on the board of robert wood johnson university hospital. i stepped down when i had kyle. that was the only board i served on. >> no one's asked me. >> a public company board? >> we're not allow eed to serven corporate boards. >> that's good because that's why i don't do it. because i'm in demand. >> let's talk about one more story, a private u.s. cybersecurity unit is accusing a unit of china's military of hacking. the firm says that the chinese unit conducted far-reaching hacking operations. the security company suggests the shanghai based unit has attacked networks of western government agencies and defense contractors since 2007 and,

guys, this was sophisticated. they would send out something that looked like it was an ad to go to a yoga studio in france or something. it was a glossy looking thing. if you clicked on it, they could get in and steal your secrets. >> don't click on stuff if you know who it's coming from and may look a little weird. >> the nigerians have stopped e-mailing me. >> that's not a real offer? >> no, sorry. you'll be waiting a long time for that to come through. >> the nigerian guy is not -- >> you're not going to get a call back. >> that's 100 times what the average -- is that 100 times? 50,000 -- >> that's how much hillary was making speaking. >> ten times 50,000 is 500,000. so the guy, his starting salary

is 100 times the average salary. >> i'm proud of him. good for his family. it's good for his family. >> i agree. i celebrated whenever anyone does well. i don't really feel like you reciprocate there. >> more to talk about when we come back. we'll get back to the markets on a record-breaking streak as the dow marches toward 17,000, we'll check out some stocks to watch in the next half hour, including a banking join the that could have room to run. take a look at yesterday's winners and losers as we head to a break ♪ feeling hot hot hot did you know a ten-second test could help your business avoid hours of delay caused by slow internet from the phone company? that's enough time to record a memo. idea for sales giveaway. return a call.

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good morning and welcome back to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. you're not related to this guy. >> i am not. >> the goalie. >> what about quick & riley. >> no relation. i see christopher quick sometimes and we call each other cou suxt. >> i'm not related to him. >> no. have you ever done the 23 and me, the dna tested where you can find out who you're related to?

you're related to all kinds of people. >> we're probably all related to adam and eve. i think becky and i could be related. >> really? >> you claim him. i'm not. be aerospace raising its full-year earnings guidance, planning to split into two companies. and met life announcing a $1 billion share buy back. if they bought back a billion shares, that would probably be back the entire company, right? let me just see. $61 billion company. just over a billion shares. that would be a 90% buy back. it's a billion dollar share buy back. the last time the company repurchased shares was 2008. and the ft reports that chico's has held talks with private equity firms in recent weeks about a possible sale and shares are rising on the news and extend trading.

do you remember what the fas stands for? >> fashion arts -- >> no, no. no. >> fas -- fsa i know. it's in london. >> it's a word that if you mess up -- arts specialties. >> folk art specialties. >> you have to be careful. >> very close. folk. very close. >> folk. >> folk. >> i don't say folk. there's an "l" in there for a reason. it's folk. >> like yolk. >> yolk. >> egg yolk. >> you say yolk. >> y-o-k-e is a word, isn't it? >> yes. what's y-o-l-k? >> that's in an egg. >> what's y-o-k-e? >> he knows about basketball, our guest. >> he does. he has something to say about that. very quickly, let's take a look at the markets.

we've been watching the futures. after four days of gains, the futures give back a little bit. dow futures down by 19 points, s&p off by 3.5. europe in the some of the early trading right now, you'll see not major moves across any of the markets. the biggest is a decline of 0.5%. in asia, overnight, checking out these markets, you'll see the shanghai composite was up by about 1%. in japan, the nikkei was down by 0.8%. oil prices this morning, if you're looking at wti, it's up about 37 cents. wow. wti is getting back towards $105 a barrel. that has to concern some people. right now it's 104.78. the ten-year note is still yielding at this point, 2.624%. it's picked up a little bit from last week. you are pushing above 2.6%. the dollar right now, you'll see is up against the euro. euro is at 1.3539. that's weaker than we saw last week, even after mario draghi

moved. the dollar is down against the yen. gold prices lack like they are down slightly. the s&p 500 finishing at a record high for the fourth straight session. the dow making it three in a row as it creeps toward the 17,000 level. joining us it bill snead, the ceo of snead capital management. it seems like every day we're talking about new records. you're also looking at 1950 for the s&p 500. that makes you nervous, though? >> it makes you nervous because historically, most years you have a 10% correction from peak to trough. we've gone a couple years without one. things like merger and acquisition activity is something historically has given you a reason to concerned. 1987, the first nine months of

the year, the great big acquisitions, r.j. nabisco and some of those things. as a veteran, you get more cautious. >> valuations themselves are not running out of control at this point, if you're looking at p/e ratios versus forward earnings? >> no. the small cap indexes have very high price earnings ratios on a trailing basis and the large cap indexes do. i noticed the last couple of days, the small cap index had a nice move again. we believe that over the next three or four years that large will outperform small by quite a bit. but, again, there's a lot of things been going on lately. you mentioned almost $105 oil. wall street is the only place in the world where as the competitors come in and become your enemy that people bid up the price of the industry. so at the berkshire hathaway annual meeting charlie monger said competition is the enemy of competence.

that means there's a whole lot of incompetent oil and gas people out there right now. every tom, dick and harry in the world is poking holes in the ground. i was in london in late january and the "daily telegraph" headline was frac'ing in northern england. if they're frac'ing in northern england, that means there aren't any places in the world that holes aren't being poked in the ground. the largest user of gas in the world is the united states. we've used less. our mileage per gallon standards are set up to be dramatically higher over ten years. why is there a bed every day? there's a bed every day in that market. why? there's way more competition and, therefore, way less competence which means ultimately prices should fall quite a bit. >> let's talk about some of the stocks you like. even though you're concerned about where prices have gotten, there are some that you really like, including ebay. why? >> interesting. david marcus, i don't know if

you read david marcus's piece that he wrote back to the ebay employees that he was leaving. in the tech world, if you work there for three years, they write a 0-year letter. facebook, apple, amazon, google, they all covet paypal. they all covet it. because they're completely dominating the payment system. it's the most popular, widely used and security payment system. so if facebook hires the guy that's with just running it, what does that tell you about facebook's intentions? >> he's coming here to do messaging. really? are they going to generate revenue off that? or are they going to be one of the three companies that's trying to buy ebay and they want to have the guy running it sitting in the house. >> you like ebay because you think they're going to get bought? >> think about it. when facebook was getting ready to go public, they'll have a

huge capitalization, they want to do this or that. google and apple, these companies have so much money on the books, google made a $400 million attempt to create a competitor to paypal. >> that's a $62 billion company. >> it is. how much cash is on the balance sheet? in the private equity world, the small and midstuff is all picked over. you'll see the natural progression we saw in '87 which is the buyouts get bigger. >> from a private equity standpoint? >> no, no, strategics you're saying. >> here's what happens. they want paypal. they don't necessarily want the marketplace business. it is profitable and successful. >> you're making the argument that carl icahn made around ebay. >> that's right. in other words, we agreed with icahn but we didn't necessarily think splitting up is the right thing. what we do know is google made a $400 million attempt to create a payment system that failed

miserably. just the idea that one of these companies can sit down, in fact, ebay goes down every time somebody says they're going in the payments business. right? amazon is going in the payments business. ebay goes down. apple says they want to go into the payments business, ebay goes down. facebook hires david marcus, ebay goes down. the bottom line is they all want to be in that business. >> you don't think hiring david marcus is more of a sign of trying to create it yourself rather than planning to buy ebay? >> look, talk to google. they spent $400 million trying to create it themselves. and failed miserably. nobody even remembers what the name of their payment system was. >> i don't. >> i think it was google wallet. is that what it was? the bottom line is, it's an incredibly profitable business that generates high free cash flow and the people that might be interested in it, it be google who wants to be in that business or whether it is somebody like amazon, who

doesn't generate high free cash flow or facebook which it would be a wonderful way to monetize what they're doing. i just find it interesting that this guy writes a letter and says all these nice things about the people he worked with and so forth and secondarily, he's going to work at a company that would love to find a why to monetize 500 million eye balls every day. >> let me ask you quickly about bank of america. that's another stock you like. >> sure. bank of america, we love the whole banking industry in that large, too big to fail category. they're the new philip morris, the most sued, regulated, politicized and damned company of the last 50 years was philip morris. it also happens to be the best performing stock on the new york stock exchange during that same 50 years. we're now officially to the point where the large banks are the ones that everybody hates. here's bank of america, their sins are all six to eight years

old. and the good things are all out in their future. basically as a value investor that's all you're looking for in this world is the news, all the bad news is 6 to 8-year-old information about countrywide and things that maerrill lynch did before they were owned by bank of america. what's not to like? a p/e of 12 at 30, starting out at 15. life's pretty good. and the history of the banks is that they pay 50% of those normalized earnings out in dividends with $1.25 dividend, that would work pretty well. >> thank you very much. >> you wouldn't say folk singer, you'd say folk singer. in truth, the "l" is not distinctly sounded but it affects the way you say the "o" i'm told here. there are words where the "l" is totally silent, calf, salmon, half, with yolk and folk it's

not "l" but it affects the "o." you can ask. >> google is an amazing thing. >> i wouldn't say folk. >> folks. >> the "w" is silent in wrap. coming up, jetblue -- you have to use that one -- offering a new way to fly, the airliner rolling out a premium service called mint. andrew may get on a jetblue flight. no words if those bratty, screaming kids are banned. we'll check it out in a few minutes.

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welcome back to "squawk box." it's time for the "squawk" planner. general motors holding its annual shareholder meeting today. ceo mary barra is expected to address the media. we'll talk to phil lebeau about that in just a couple minutes. the national federation of independent business will release their small business optimism report, coming at 7:30 eastern time. and the government is planning to release its wholesale trade report for the month of april. that's happening today as well. that is today's "squawk" planner. jetblue is going upscale, meet the low-cost carrier's answer to first class. we have it right here on "squawk box" in just a moment. you keep r lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry, but you worry. what happens when your paychecks stop? because everyone has retirement questions.

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welcome back to "squawk box". jetblue going upscale. morgan joins us from the company's terminal at jfk airport this morning. . good morning. well, we have button for massages, free in-flight wi-fi. i could even order a cappuccino. this is mint. this is the first ever premium service. this starts on flights from new york to los angeles this weekend. now, this represents a big shift in strategy for jet blue, which has built a brand on on being egalitarian just one tier of service until now, extra space,

extra legroom. despite bigger competitors, the stock has been climbing, hitting a multihigh just yesterday. mint is for the highly lucrative, trans biz traveler. it has 16 seats, including four seats with doors that can fit a 6'8" person. partnering with blue marble ice cream. and the pricing is significantly lower than competitors. it's going from $599 to $999. analysts say those prices may eventually need to come up. >> jet blue is going to struggle to some extent to take away the corporate travelers who is loyal from a frequent flyer perspective of delta. i just question the return that

they are able to generate at $599. >> okay. so each -- spacewise, each seat takes up two regular seats. but jetblue took that into account. >> whether it's in the old formation or the mint formation, relatively similar to the a-320. which means the unit costs per customer are lower. when you combine with increased revenue we think we can generate, that leaves us with a win-win all around. >> all right. so in a couple of hours we will be on a sill lated flight to test drive all these amenities. in the meantime, i'm going to break in this seat and take a little power nap. >> andrew just has one question. he wants to know if babies are banned? >> are children allowed? when you're trying to sleep with your eye mask, earbuds and

you're paying that premium so you can sleep or do work, are babies allowed up there? infants on the lap? >> let me ask. i'll get back to you. i'll have that later on cnbc today. >> andrew wants that banned. andrew thinks it's a bad idea. >> i can't be totally alone. >> you are alone. >> i talked to people about this in private. they are in agreement. they will sell you the ticket, go for it. it's the airline. one airline that does not. >> which? >> malaysian airlines. they don't like children in first class. i investigated this. >> you can still torture people in malaysia. that's not a good example. >> what happens if the kids are in the first row of coach? you still hear them. >> yeah. that's not great either.

you have to figure out where you're going to sit. >> the dots are -- >> i'm trying to connect them. i am. >> the dots are that the people in coach are plabeans anyway. they're low lives. that's what you're saying. people who can't afford first close -- >> no. >> they're not living in an ivory tower. >> the entire product experience should be so you can work and sleep. you are paying a premium for that. >> it should not be -- >> when is the last time you them do an ad for premium service with a kid screaming.

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g.m. shareholders meet under the cloud of recall crisis. the big issues facing the automaker at today's annual meeting. let's make a deal. merck goes shopping. tyson gets hillshire. the world of sing later. artificial intelligence, quantum computing, robotics. how financial services will fit into the technologies of tomorrow. the second hour of "squawk box" begins right now. >> i'm going to them this picture. show what they used to do back in the early 20th century. put stamps on kids and mail

them. >> i'm not sure that's true. >> i looked at it. it looks true. they would have to ride on a train. >> but they were still on a train. >> but you would put stamps -- i don't know about on their person. >> this whole conversation is just bad. >> it's just the image you try to project and then there's the actual you. >> have you ever seen an ad for a business class by an airline with a screaming baby? >> you're not guaranteed a quiet car. >> why even have a flatbed. >> when they walk through and want to serve breakfast and turn on the lights. >> people do the people in coach deserve the the screaming base because they're in coach. >> i did not say that. >> there are quiet cars on trains. restaurants that don't have children. hotels where they say no children. >> they don't say that about first class. >> they kind of do, though.

>> i'm joe kernen along with becky quick and andrew ross sorkin. the futures at this hour are indicated lower. we have been grinding higher. what does that add up to? if you take 101 points on 18.50, where is that? 3% or 4% for the year. 10-year trading in the mid twos. $2.62. the amazing thing is the spanish 10-year is below the 10-year here. foreclosure activity has dropped to an eight-year low. reality track saided 110,000 were in the foreclosure process in may, 5% less than april and 26% below a year ago. as we told you earlier, be aerospace is splitting into two publicly traded companies. they make all the equipment.

>> all the flat beds. >> they make some of the flat beds, which you hope you will be able to sleep in. it's not guaranteed there won't be any sound. >> you have to fly on a private plane. >> that's what you better do. keep your multimedia empire going. the wheels up card you can get one much cheaper than a marquis card. >> none of that stuff is cheap. >> it's not cheap. it's about half of what it would be for marquis. >> some day. >> $20,000. >> a different type of plane. >> it's still private. works just as well. believe me. they are pressurized cabins, leather interior. have you ever looked at one? look at one. >> if you were to take one to florida it would take seven hours. >> you go closer. you go three-hour flights to

georgia, for example. >> okay. >> you can get a jet if you want a little citation. >> most of the time i'm sitting back in coach with the babies. >> don't change your story. don't you elitist. >> my family and i like to sit in coach. i don't like to bring them up there. you are not thinking for the other passengers. >> i am thinking for the other passengers and pore my children. >> you are paying for the tickets versus what the company is paying for them. >> correct. if i'm by myself. i don't want my children to be spoiled. i wouldn't want to spoil the children. >> for you they have to bring back steerage, the wheel well. or where they store the dogs. a lot of elitists.

godaddy is going public. >> godaddy is going public. >> $100 million offering. >> phil lebeau. >> ask him. he has to nye all over the country constantly. >> he has a preview of what to expect later this morning. andrew wants no babies in first class ever, phil. >> i once had to fly back from india with a screaming child next to me the whole way. i understand andrew's pain. but there's also nothing you can do about it. a lot of questions about how much of this meeting will be focused on the business of general motors separate from the recall crisis and how much will the recall crisis dominate the discussion. when you look at the meeting today it is clear that mary barra would like to focus on going forward, where the company is. the question is whether or not we will hear from victims's

families? will any be speak out at the meeting? and shareholders disappointed with the return over the last three or four months speaking at the meeting. mary barra is hoping to focus on the business of general motors separate from the recall crisis. she is going to be meeting with reporters before the annual meeting. this will be the first chance reporters have to talk to her since the release of the investigative report came out last week. it was before we had a chance to look at the internal investigation. year to date, general motors sales up 2%. that is lagging the auto industry as a whole. may pricing power was above trend according to the latest annual report from citi. as you look at shares of general motors, down 10% year to date. the market is up 4%, 5%. clearly g.m. shares are not keeping up with the market as a whole. understandably people are saying, look, you have this ignition switch recall crisis

the last three months. that's weighing on shares. i think the question becomes for a lot of investors and shareholders for general motors, when can you say, okay, we think we have our arms around the total impact of this. and then when does the stock start to reflect that in terms of optimism. when is it time to get back to the business of selling vehicles and not on this. >> it's punitive. the guys are circling around. it's funny. it's always the same guys. >> right. >> it was the same guys that got -- what was just the one, the same trial lawyers. or this same -- i read the article yesterday. the last two big cases where there was liability. it's the same dudes. >> right. you know what's interesting, joe -- >> if they get into punitive,

would it be material to g.m.? >> i'm sure there's a possibility it could have been material. keep in mind, ken feinberg, who has been retained by general motors to put together a victim compensation fund, once they put that criteria together, he will start floating proposals to attorneys and executives at general motors. once they come up with the criteria in two or three weeks, the expectation is they will get about 90% of the cases will go through that fund. people do not want to go to court. they are looking at this and saying you know what, we will live with that. we can take that compensation. we'll be done with it. the other 10% will go to court. whether or not those 10% of those cases if general motors were to lose and there were punitive damages, how material would that be? too hard to say. >> toyota. i think it was toyota. $260 million in lawyer fees for toyota. >> phil, stay here. let's continue this conversation can. let's bring in an analyst to

talk about g.m.'s stock performance. >> jamie, you heard what they were talking about. one is the recall situation. the other is the company overall in its performance. how do you break those two apart? >> it's a great question. when you look at the recall data first, there is no conclusive evidence at least to date that there is there has been any impact to sales or share. >> not yet. as joe brought up, how big is the risk overhang about whether those lawsuits will come, whether there will be punitive damages? >> well, from an exposure standpoint. >> jim: has 35 to 40 billion on hand. if you look back at toyota and some recall and sort of legal related decisions, look, i don't think that's going to be a fundamental material impact to the bottom line. from a shareholder perspective, i would take the view that shares are oversold as it

relates to recalls. >> and what do you think of the mary barra has done since coming into the office? >> first, it is stunning this is all about mary barra and not her prereceivers. she has taken this as an opportunity. we applaud how she stood up in the face of public and regulatory scrutiny. this is something that has affected or made something intangible much more tangible for the american public. that is to say a culture change is a foot finally at g.m. it's been many decades where this has loomed. maybe now finally we can start some of the cleansing product that ford and chrysler have gone through the last several years. >> jamie, what do you think of this as a distraction in terms of how you think of this two or three years from now? i have to imagine for the past several months, virtually nothing -- i assume developers do what they do. but there has to have been a bit

of a stand still. this does paralyze you to some degree. how does that show up later, or does it? >> it's actually a great point. if in happened a year ago in the midst of their product transition, they would have been caught more in their tracks i think. but the fact that the new products are up and running and the portfolio is a little further along in the refresh cycle, that mitigates the concern near term. the bigger losing question which few have brought up. the f-150 is coming out later this year. it's all aluminum. multiyear production retooling process. that's the big issue with tkpwfpl i think they are multiple years behind ford. but in the immediate term as it relates to recalls, i see a low $40 stock price. quite frankly there is no impact historically. not only g.m. but toyota. if you look at some of the

bigger ones historically, there's no correlation there. >> you have a hole even though you expect the stock to trade up from here? >> exactly. i have to look on a year out basis, across my group who will be the outperformers. from 36 to 41 or 42 dollars is a great run for g.m. there's more opportunities in my group in dealers, distribution, service. that's why we haven't upgraded. longer term, it is more about the cultural shift and transition to aluminum. >> do you think this recall issue, if it's not affecting sales right now, is taking away the attention of management? >> on one hand, i think you're right. oerbd, i think it's forcing them to really have, again, kind of a cleansing of the broader structure. it will force them to have more checks and balances i hope, and really force lower tiers of management, whether in north

america, europe or elsewhere to take on morabilitiabilit this could be a very good thing for the organization longer term. but, again, it took ford four or five years to get this right. it's hard to believe that g.m. can do it faster. >> jamie, thank you very much for joining us. phil, thank you. we will see you a little later today. >> so it's 900 nautical miles. or 1,000 miles. >> what is? >> newark to miami. 315 maximum speed. >> that's three hours. >> three hours on one of those? >> you can't go to california. but you can go to kiowa, hilton head. or city to city. somewhere out in pennsylvania, pittsburgh. >> i'm a man of the people. >> i can see that. >> commercial. when you walk in the plane and you see other people, you're confused. >> i get that.

>> you're like why are these other people on the plane? who are these people? can i order something from them? >> investors tkrbg just enjoy the rally. or worry about a correction? we dig into the market. plus, this is my day, the sing layerity. what happens when machines have the knowledge of all human existence. it will change the face of financial services. having the cloud allows us to rapid prototype a lot of ideas. being able to pay as we go is crucial for a start up. having to fork out a lot of money up front was risky. we can launch a feature really quick, and if the feature doesn't work, we haven't lost anything, and we can have something up and running in days. and this would not be possible without the cloud. we are now supporting over 25 million users each month.

dow off 19 points. nasdaq close to 7 points. radioshack reporting a bigger than expected q1 loss. the quarter was hurt by industry wide decline in consumer electronics. radioshack is making progress helped in part by joseph kernen. >> i've gone in if you have an

adp -- adt system and you need a lithium battery. there's one nearby. they sell a bunch of smartphones and stuff in there too. i don't know why it can't be run better, you know? >> well, i think so many locations -- >> $1 stock. $1.50. >> the electronics business is tough. >> they have so many outlets. you have to go put a lot of money back in to change the look. >> a long, sickening decline. look at that. up to $36. >> plus, the name doesn't help. >> right. they changed woolworth. why not change radioshack? shack? >> shack doesn't sound good. >> s&p is now up 12% from the low that we saw for the year on february 3rd. joining us is the senior index

analyst at s&p dow jones index in new york. what do we make of this slow sort of steady, not very exciting advance? these can last longer maybe than things that get everyone's attention. how hard is it? is it a positive? or does it indicate there's no conviction? >> well, obviously no buy, sell or changing of commitment. that itself is some kind of commitment. there's no volume. but the market will definitely be tested. i think it's going to be earnings season that will do it. we made these increases over the last year and a half. not just from the 12% in february. on p.e. expansion, which has gone up. second quarter earnings will test the market. that's where the true test will come to see if we can hit the 2,000 mark or drop underneath. >> but you can't decide what a normalized p.e. is unless you

have an interest rate projection. we will have basically zero interest rates for three more years. what kind of p.e. does that warrant? >> right now we're at 18. the actual 12 months for march before we get into june and the next year, you're at 18 p.e. you're at 19.50 on the s&p. 2011 you were under 12. the earnings have only gone up 15%. but the market has gone up 70%. so the growth is in the earnings for the p.e. expansion. and the quality of the earnings, while they have gone up, has deteriorated to some degree. we have had a record margin. we are creating higher bottom numbers with less on the top. sales have not come up. q2 should be the test. the second quarter earnings have not deteriorated at all. they are off 1.8% from where

they were at the beginning of the year. so they have not come down where it is easy. it is late in the second quarter to start reducing your estimates or for street guidance. >> in the frothy part of an advance, what's the average multiple? how stretched does it get when we get to the seventh, eighth, tphaoeubth inning? what was it in 1999? >> it wasn't as high as you think because the tech was so high. again, '98, '99 was pure tech. just like 2000, 2001, when the decline was there, difficult deposited stocks tipped up. the p.e. we stand at now is about where the historical actual p.e. is. going forward, however, we're still below norm. it is a little bit below the norm. it would be 15 or a little bit more for that 18 months out.

so we're a little bit off that. but we have very far from under 12. a lot more optimism on the street there. >> all right. >> i don't know. okay. so we have come a long way. it's not as cheap as it used to be but not in nose bleed territory yet, but shoe probably watch it is. that fair? you tell me. sell or not? sell or add? >> dollar averaging time? >> yeah. >> that's the question, though. >> i think it's going to come down to second quarter. i truly think we have a test coming up. and the p.e.s are high. interest rates are low. >> they better stay low or else we have a problem. thank you, howard. see you later. >> another twist and the streaming feud between netflix and verizon. "squawk box" will be right back.

goldman sachs chairman and ceo live from the goldman sachs energy conference. from the state of banking to corporate taxes, we cover it all. that's tomorrow right here on "squawk box". we're moving our company to new york state.

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welcome back. we have been debating this one around the table during the commercial break. another twist in the public fight between netflix and verizon. netflix will stop sending messages for slow delivering of its tv shows. >> i would have done it differently. >> the messages appeared on screens when it was buffering. they say it was a test and it is leaving open the option of receiving those alerts. >> coming up the -- >> and you're buffering. >> and you think the fault of the buffering is the content. >> i would make it so you can't even get netflix. i would cut them off completely.

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welcome back to "squawk box", everybody. facebook poaching a key executive from ebay. david marcus is leaving after three years. he will be running facebook's messaging products. a lot of people trying to figure out what does this mean for facebook? facebook will try to figure out a i way to create its own pay pal. we have an investor who thinks its a way to go after ebay. that's over $60 billion in market capitalization.

. citigroup lost its bid to stop a lawsuit targeting minorities for high-cost mortgage loans since 2004. a federal judge ruled the suit can go forward. vermont is raising minimum wage to $10.50, the highest of any state. it will go into effect by 2018. joining us is carl lairk. and bks managing director. i think a lot of times oil moves with currencies. maybe not. they affect each other. what we have seen after what happened last week, the big news with draghi is 1.30 on the horizon for the euro? >> i think it's possible. while europe is moving lower, i think there is a greater chance

the currency finds support around 1.34, maybe 1.35. we are not seeing the same type of extension as in the past. one of the reasons we are seeing the euro fall is the increase in u.s. yields. many have been burned by the treasury story. so we're not certain whether it's going to continue. but for the time being i think it might be lower. but the losses are limited. >> why is volatility so low even in that market? >> well, i think in general what you are seeing is a lot of aversion to taking on the big trades after they have gone wrong since the beginning of the year. a lot of people loaded into the dollar/yen, into the short treasury trades. they are floating losses and don't want to increase their risk. lack of surprise is keeping everyone on the sidelines. so i don't see any significant pickup in volatility until the federal reserve tightens. even though we are seeing the

euro fall, we're not necessarily going to see the same type of 3%, 4% decline we would normally see on negative rates. >> carl, what does all that mean to the the oil market or the oil complex? >> well, i think it's just a matter of economic growth. we saw job creation. that's the funny thing. we don't care if it's part-time jobs. we don't care if it's full-time jobs, temporary jobs. as long as somebody has a job and they're driving to work. especially with gasoline. there's not much you can do about it. >> when does all this new energy that we bring on stream, when does that start to have a downward effect, if ever? if coal, if these new epa guidelines cause one part of the energy complex to go up, will

that support prices in the rest of the group? >> it will eventually support prices. but at that point, especially with coal, we will probably look to natural gas. we have talked about that before. i think that's where natural gas makes its move. it can come into demand higher than we have seen in the past few years. as far as oil prices go, when there's new oil, all we do is back out foreign oil rather than lowering prices here. we are pushing it back. that's where the whole opec thing and saudi looking for more compare capacity. you really have to realize that we are bring anything 3 million barrels less than we were now four or five years ago. that's already in the market. if our demand increases or anywhere else increases, oil gets tight and it keeps going higher. >> even with all this new technology and shale, five years

from now you would say oil would be 150, 200 or 90? >> no. you know what, when you talk about volatility, the same thing will happen with oil right now. 104, 105, we're fine. in 10, 20 years, maybe 120, 125. it's just not moving. it's like a roto oven. set it in and forget it. it's going up. it's not going back up like it was in the 2000s from 90 to 120, 140. >> joe, i want to add quickly. there's a nice oil trade happening in currency right now. we're not seeing a major weakness against the dollar. norway produces a lot of oil. if you do believe oil is at a high, that could be a nice continuation opportunity. >> i hadn't seen that, cathy.

versus the krona. >> they had see it higher. you have this nice opportunity that's just getting in to brew. look at some of the crosses. >> put that trade on. >> we did once have one of our anchors interview the king of norwegia. >> coming up, the urge to merge. m&a fueling another advance in the markets. which companies are ready to get it on? who will make the first move? summer love on wall street. yes, it is. check out the sexy futures this morning. "squawk box" coming back in just a second. (vo) rush hour around here

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we have seen a frenzy in mergers and acquisitions. tyson foods winning the bid war for hillshire brands. if you look pack at the number of deal brands, it is starting to look like we are in the middle of an m&a boom. we have seen 18, count them, 18 mega deals. this exceeds $681 million. companies have an incentive to acquire now. while interest rates remain low and financing is cheap, the phrma sector, particularly busy. top m&a deal so far is valeant's offers to buy allergan. $53 billion. allergan has not accepted this but gets counted in the tables. two of the other huge deals so far are in media. it goes to joe's view about content. the larger one is at&t offering to acquire directv for $47

billion. would create the second largest telecom company. it needs approval from regulators. in close third for a deal by value is comcast to buy time warner cable for $44 million. comcast the parent company of this network. in that deal goes through it would be the largest. that is a short way of describing for a long way of getting to our guest this morning. joining us to talk about this is director of deals intelligence. he is very intelligent on what is actually happening here. >> good morning. >> for the last three or four years, you would come on. we would talk about how we thought there would be more deals. cash on the balance sheet. interest rates are low. the environment seems right. and there wouldn't be more deals. >> right. >> and then something happened.

>> right. >> what was that? >> a resurgence of deal making this year. we are finally seeing the confidence come back into the boardroom, in the ceo suite, looking at the level of activity, broad base, unsolicited, hostile, competing bids. it seems the m&a target list is now starting to come to fruition. >> is there a eureka moment? can you pinpoint what was the tipping point in all of this? >> it's haar to pinpoint the exact moment. i don't know if you had a moment that you think. you have been building on increased confidence, better economic growth. stock market highs. it's just been, you know, a frenzy of deals. >> you're my doubter guy. this deal making as a percentage of gdp that's right behind here. you're right there. they got a camera on it. that's okay.

to the extent you believe m&a -- do you believe it's a lagging indicator of confidence? lagging indicator of what? >> general lagging on the markets. >> if you're playing at home trying to understand what this all means, what inning does this put us in? >> it's hard to say because we have never seen this level of growth. 70% up. we haven't seen it since '98, '99. >> hold on. '98, '99 already? >> yeah. we haven't seen it since when? >> we have a year or two left. >> it's somewhat unprecedented. we have seen gradual double digit growths for years. we haven't seen a 70% increase in the first five months since '98, '99. it's not really apples to apples. >> right. >> because the sector view was all tech. >> right. >> write this down for us. wall street is oftentimes the

big beneficiary of these deals in that there are enormous fees. >> right. >> there was a long-time worry these fees were not coming back. a lot of departments, m&a departments that shrunk down worried. other departments were worried themselves thinking how are we going to pay for everybody here. >> right. >> what will this look like when the year is over? >> on track to have one of the best on the m&a side. all the numbers are the analysis numbers. $300 million in fees for pfizer/astrazeneca which went away very quickly. it takes a while for them to come through and show in the overall numbers. >> there is also a big question mark for the last decade. there was going to be at some point free compression. hedge fund, private equity fee compression. advisory fees have not had them thus far. >> no, they have not.

>> why have they been so resilient. >> it's hard to say. who is advising. the growth of the boutiques. >> who are the big winners? who are the big lose senators. >> goldman sachs is still number one. they have been going back and forth with morgan stanley. every week they have been changing from number one to number two with big deals. on the boutique side of things, the past two years, they have taken 30% of all m&a. >> that's hau huge shift where we were 10 years ago. >> 10%. >> okay. who is the loser? >> from the m&a side of things? >> it's complicated when i ask questions like that. >> it's hard to say. everyone is seeing growth this year. european banks. boutiques have fallen back a little bit. but it's hard to say it is from an advisory perspective a loser because it has been such a broad

based view across regions, sectors. we have health care and media, 14% of m&a. financials, 11%. industrial and retail at 9. it's the most balanced portfolio by region that we have seen. >> real quick. just make a prediction for us. end of year, what will be the hottest sector? >> i think it's going to be the cmt. 40% of all deals are tech media, telecom. >> that's not just the two or three big deals. >> no. it is a very large number. >> that's a big sector, though. >> yeah. i would say telecom space we will see shake out. and still see some continuing interest on the tech side of things. but some of the big start-ups coming up and potentially being acquired. >> appreciate it. thank you. still to come, convergence of technology and finance.

cnbc teaming up with single layerity. tomorrow on "squawk box", executive chairman martin franklin is our guest host. the economy, the consumer, and the right grill for andrew. and focus this week for investors. cfo of nordstrom shares his view of the second quarter. that's tomorrow on "squawk box" starting at 6:00 a.m. eastern time.

singularity university in partnership with with cnbc is kicking off a first of its kind event bringing top technology and futurists. quantum computing, artificial intelligence. michelle caruso-cabrera joins us with a special guest. i like looking at the financial side of things. in total it's very exciting. although we're just -- we're a little early maybe, michelle. i would be more excited -- >> early for the singularity. >> as we prepare for a point in time in the not too distant future, when total machine

knowledge, computer knowledge is billions of times more than -- cumulative, than all of human knowledge. how do we know the pace of technological development by machines at that point? we have no idea what's possible. it's like the big bang. >> aoeult wile fans are thrilled to hear you talking right now. that is an incredible thought. it's a little further out. the name of the conference is exponential finance. the founders firmly believe there is since happening right now that will impact wall street in the next two, three, five years not just when we get to the singularity. one of the founders, one of our foremost scientists, thinkers and real believer about robotics

and humans at some point merging. and peter dimandis, also one of the founders. it is not a typical university. where does some of the money come from? google, auto desk, sisco, nokia. what we are showing you is video of one of the executive sessions they do. they run a summer program for students. they do one week executive programs. we learn about nano technology and drones. you can imagine the quality and quantity of information that you download, how it can affect your business. good to have you here. >> good morning. >> why would there be such a huge impact on the world of finance right now when we start showing people things like the

driverless car, nano technology, et cetera. >> it's pretty much every part of our lives, our businesses. >> what is expo tepbl technology. >> technologies empowered by information layers. with computers, we saw them go from analog to digital. so there is an information layer that helps people communicate. so we went from analog photography. imagine the old cameras where you had this film stuff you had to load into it. that was a squares are resource. and now a digital file where we share files. i take a picture. you can change it. accepted it out to everyone else. it's never consumed, which means it can continue to propagate and propel and accelerate poe pt sc

exponentially. >> that's the exponential part. >> we are seeing this in biotechnology, nano technology. it is going to impact every part of our lives. in the finance community, a couple of factors. one, the markets are changing a lot. values of -- valuations are companies are changing. air b and b. >> uber. >> uber, good tpref. the most recent. where are these coming from? they raised money on a valuation of like $10 billion, which is twice what hyatt hotels is and they have no assets. how can those two reconcile the same market? we are starting to see big implications of these new types of technologies. >> other things we will be talking about is the driverless car. if it happens, and you are convinced it will. >> there is no if. >> far fewer accidents in the

world. >> sure. >> what does that mean for pricing of auto insurance in a basic way? that do you need life insurance for eventually. >> i actually think the bigger implications with driverless cars, an autonomous car doesn't need to park. it can keep driving around. when you need it, it just pulls up. if it's parked in front of a fire hydrant, it can move. which means there's a lot of space dedicated to parking garages. >> lots. >> and lots of space which can be completely repurposed. so if i was an entrepreneur and i had a lot of money in my pocket, i might think of picking up a few of those big parking lots and think about what the future of those could mean if we don't need the lots anymore. >> this is going to be so cool. there's still time to sign up if

you want to talk, come down to the lincoln center. >> keep your weight down. not you. everybody. exercise. eat healthy. because you want to be here 20 years from now. you just do. i'm telling you. the most ironic thing, if i miss it a couple of years, a i'm going to be really mad. that's my point. >> i don't want to live forever. >> i do. how old is mankind? we're right at the very edge of this. and i'm going to be the last person -- >> the last person to die? >> the last person to croak before we figure it out. >> we will have destroyed the earth by then with climate change. >> i'll take my chances. >> okay. i'm going to blow a little more hot air in the commercial break and for the rest of the time. >> closing in on the dow 17,000,

a summer stealth rally, slowly grinding higher. find out if we are due for a correction. then later, the business of intellectual property. the ceo of inventorgy. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

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. welcome back to "squawk box" here on cnbc. first in business worldwide. i'm joe kernen along with becky quick and andrew rock sorkin. consolidating the big gain from last year. now up 4%, 5%. what is it, june? the end of the first half of the year is over june 30th. we will see where we stand at that point. if year up 5%, it will be what everyone predicted, 7%, 8%, 9%, 10% year. and the headlines andrew will if i was stkph arrives to a 6.5

year high. small business owners recovered all the optimism they lost. chico's is holding talks in recent weeks about a potential sale. those shares rising on that news 15% higher in the premarket. the ceos of major companies are sending a letter to congressional leaders. they are calling on congress to act on immigration legislation. it's been nearly a year since the senate passed a bipartisan immigration bill. as we all know so well it stalled in the house. right now let's get to the markets. stock drifting to new highs. bond yields are still low. joining us right now is charles campbell, executive director at mkm. and chief economist at deutsche bank. a former economist in washington, d.c. and, gentlemen, welcome to both

of you this morning. >> good morning. >> good to be here. >> charles, we keep seeing the new highs. is that something that makes you nervous at all? some not really, becky. for three reasons. the ecb conducted much needed policy maneuvers last week. not so much the refinancing and the lower of the negative to positive rate but policy maneuvers to encourage lending, specifically to small and medium-sized businesses. where customers are paying in some cases twice the rate on loans that larger businesses are paying. a decade ago, before the financial crisis began, large and small were paying the same rates. that's not the case today. the ecb is responding to much needed demand by the marketplace and putting in measures which deliver from several years ago in addition. they're not allowing the calculation to include mortgages, for example. >> sure. but that means you look at helping europe's economy and

therefore helping ours in turn. >> it helps europe. it may not be sufficient. they have left it open for additional policy maneuvers. >> an article in the wall street journal points out spanish 10-year bonds are less than u.s. 10-year. that makes no sense to me. do you understand it? >> well, it's certainly a reflection of the better news out of europe. ecb helping it. europe's inflation rate is a percentage point below ourselves as well. >> if i'm an investor looking where to put my money, where would i feel better about doing it, it would be the u.s. >> it stretches the imagination looking the last three or four years. and taking the risk it of european picture. >> that doesn't mean it's all good times. still incredibly high unemployment, particularly among the youth in spain.

i don't know how you get yourself out of that hole. >> europe has a lot of challenges ahead. good news, activity has begun to pick up. it has been doing the better than the normal. a long way to go on unemployment. inflation is low. the prospects from here are looking better. and the ecb, makes this at least plausible if not expected. >> charles, what does the that mean for bond rates here in the u.s. over the next several years. >> it's something for so manien vestors. they never anticipated bonds would go where they have ended up going. >> this has been completely baffling. >> that's right. >> the interesting thing is people buy bonds for a different reasons. people buy equities for generally one reason. expected enterprise value ebitda is expecting to increase more than the market is expecting. but the situation with bonds,

people buy them for lots of different reasons. it partially answers the ukraine situation. it could be other reasons. immunization. you know, there are a reasons why they buy bonds. our leading indicator is nfib. others is like the initial claims, cycle highs. payroll last week. early 2000. four months in a row of 200 plus consecutively. >> we had mark grant here yesterday. he laid out this theory that and rates would be lower for a much longer time than people have anticipated. he is looking well past 2015 before the fed is moving to raise and rates. do you think that's right, peter? >> there are reasons to think long-term interest rates have come down on a sustained basis but not as much as he is talking about. certainly the demographics have been impressive. the working age population is well over 1% up to 6, 7 years

ago. thanks to the aging baby boomers and drop in birth rates you are seeing less than half percent growth on its way to a quarter percent. that says potential growth and long-term equilibrium have moved down. but this is an economy that investment has been low. productive has been disappointing. we have a long way to go the up in that direction. potential growth is underlying still in 1.5%, 2% range, heading to 2.5%. it's difficult to see real interest rates much below 2% in the long term. >> you think the fed itself here in the united states will move to raise rates in the middle of mechanics career? >> that's the message they are giving us next year, middle of next year. i would hold them to their word. >> mark grant said it.

how much of that activity do you think is a result of people thinking financing costs will go up materially? they are trying to get in on some kind of closing window. >> well, i would suspect some of it. this is awfully complacent right now. i don't see people rushing to the exit at this point. >> how much stock strength is coming? and if bond yields rise substantially, does that throw a wrench in the market? >> if bond yields rise, that's not necessarily a bad thing. therefore it's not necessarily going to be a head wind for risk assets. >> do you think we could make it through this year without a 10% pull back? >> i think so. >> gentlemen, thank you both for coming in. >> thank you. >> thank you. >> mary barra on the recall

crisis. and the annual meeting. also up for a vote, the first union rep ever to serve on the board. we'll check in with phil below next. as we head to break, check out the "squawk box" market indicator. tomorrow on "squawk box", goldman sachs chairman and ceo lloyd blankfein live from the goldman sachs energy conference. > from the state of banking to corporate taxes, we cover it all. that's tomorrow here on "squawk box".

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welcome back to "squawk box". s&p opening up 3 points. nasdaq, 8. best buy increasing dividends by 12% to 17 cents a share. that is because of the company's improved cash position and confidence in its cash-generating power.

mr. concekernen. some families on of those killed in accidents due to the faulty ignition switch, unfortunately, they are going to be in attendance which will make it a tense situation for everyone. also, up for a vote, the first union representative to serve on the company's board. who is that, phil? and it's hard to believe. how old is that company? >> it's over 100 years. >> and never had a union rep on the board? that's amazing. >> right. ordinarily that would be the story that a lot of people are focusing on. that's not the case today obviously a lot of questions regarding the g.m. ignition switch recall, the latest in terms of the investigation, as well as the impact for the company financially. there are protesters here at the g.m. headquarters in detroit. they were out front yesterday afternoon. we were out there with them. there were two family members of

victims of g.m. vehicles that were recalled. they were killed in those vehicles. we talked with them yesterday. those two families are expected back this morning. whether or not there were there are families inside the annual meeting remains to be seen. keep in mind they have taken $1.7 billion in charges linked to recalls. for general motors, the question becomes, will there be any more charges either in the second quarter, and they do expect to have some, although not a huge material impact, or whether or not they can look forward to third and fourth quarter and believe they have at least a bit of a handle in terms of how much the recall switch crisis will cost the company.

up next, godaddy is going public. facebook oops moment. those stories after this. and intellectual property driving corporate value. the importance of patents. the company's folio over 700 ip licenses like panasonic and nokia. "squawk box" will be right back. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ [ birds squawking ] my mom makes airplane engines that can talk. [ birds squawking ] ♪ my mom makes hospitals you can hold in your hand. ♪ my mom can print amazing things right from her computer.

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welcome back to "squawk box" this morning. godaddy have now filed for an ipo up to $100 million. no word which exchange it intends to list on or the similar politte will be adopting. it is best known for its advertisements featuring race car driver canada patrick. she has been a guest on this program. you're looking at another -- we haven't had her on the show, have we? >> she's been in here. she's been in cnbc but never on this show. >> that company was founded back in 1997. it was acquired for $2.3 billion in 2011 by a private equity consortium lead by kkr and silverlake. that may turn out to be one of their better recent deals.

this is the one that ran on the super bowl. they tried to sort of move away from being overtly sexual. >> that's why no one remembers it. >> it was the big musselman. >> he's wonderful. from -- >> oh, brother, where art thou. >> the big lebowsky. >> how he is in transformers. >> haven't seen that movie. >> he was crazy. >> great actor. >> yeah, he is. >> i think they just let him go wut. he was nutso. >> facebook released it's

slingshot yesterday on itunes. it was quickly pulled down several hours later. a company spokesman said the app will be ready soon. remember, facebook reportedly tried to buy it for $3 billion left year. so this is their answer. head of pay pal stepping down. dave marcus has been running ebay unit for the last two years. he is soon to be running the messaging product. they are hinting the company is interesting in using messaging for transactions. buying tickets, making reservations. raises questions about the future of pay pal. carl icahn pushing, continuing to push for the salesperson of the business. not pushing as hard as he was before now that dorffman is on the board.

a very public fight between netflix and verizon. netflix will stop sending mention for the slow delivery by verizon of its movies. they said it was just a test. it is leaving open the option to resume the alerts later they just made a deal with verizon. sort of bad behavior. you make a deal and you go back and start pushing them around. >> cantana. >> what are you talking about? >> the name of the character in big lebowsky. >> do the right thing is the first time i noticed him. was he in something before that? in case you missed it last

night, the los angeles kings beat the rangers, 3-0. the goalie stopped 32 shots for the shutout, including one where i guess it was skill, but he stuck his stick out. there was an open goal. it's heartbreaking. maybe it's not the rangers's year. it's not over yet. kings are 3-0. game 4 is wednesday night at msg. you learn from bill w., one game at a time. that's how it happened when the rangers were down 3-1 in that other series. so it's possible. i'm not writing it off. >> guys, breaking news. allergan's board is unanimously rejecting that revised, una little bit itted proposal from valeant. yesterday our guest here on set was persian square capital management. we talked a lot about this with bill ackman.

they are now saying that this bid substantially undervalues the company. it creates risks for allergan and not in the best interest of the company and its stockholders. david piatt is chairman and ceo. bill ackman has been waging a war. he said he would lose his job on this. he is coming out right now and saying this is bad for shareholders of allergan. they have a track record of consistent results. they continue to have strong momentum in the business. portfolio raises evaluations for stand-alone allergan. >> he's attacking the company, though. if you go through the letter at the end, he said valeant's unsustainable business model relies on serial acquisitions.

>> that sounds exactly what the bear case has been laid out. >> a lack of clarity in growth prospects because of their opaque -- >> all the things that ackman addressed yesterday. >> anemic growth with allergan drew to significant price increases. >> that is straight from the bear's take. of course that makes the market, the two sides on this. we have sound from yesterday. bill ackman was on set with us yesterday. here's what he had to say. >> if you have a competitive advantage in terms of your ability to operate at very low cost and everyone else is operating at high costs, you can make a large number of acquisitions and create a shareholder value. that's what valeant has done. >> as mentioned, this has been well publicized in the media. thought on both sides of this. and there are two takes on what

valeant's strategy is and whether it is a sustainable long-term goal. again, at this point the news is that allergan's board is unanimously rejecting that revised bid from valeant. >> okay. >> we'll continue to watch it. ceo of inventorgy takes about i.p. licensing. licenses for panasonic and no a nokia. we'll take ow asa farry that will blow your mind. "squawk box" will be right back. , a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.

hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow.

welcome back to "squawk box"ment let's take a look at stocks in the news. we just told you allergan now rejecting the latest takeover bid from valeant. the bid significantly undervalues the company. chico's considering selling itself to private equity. chico's having talks with several private equity firms the last couple of weeks. radio is shack lost 97 cents per share over the latest quarter. a much wider loss than expected. revenue fell below estimates as

same store sales fell 14%. metlife announced a stock buyback program, the first stock repurchase program since 2008. >> big three automakers want to save the art treasures. ge, ford, chrysler pledging $26 million to keep the city's art projects off the auction block. some creditors are demanding art be sold to pay off billions in doubt. when a city declares bankruptcy, are things like the museums, place that you can raid to come up with money. looks like the pig three are stepping up and making sure the art does stay in detroit. and a police station station tv. it will access movies from the playstation store. and time warner in talks to take a major stake in device

media. it would buy $2.2 billion. in one structure, time warner may combine hln, former headline news network, with vice in return for roughly half of the enlarged company. that company was just valued at a billion dollars. amazing media story. also, hillary clinton now launching a book tour. it is called "hard choices." it covers everything from leaving the white house with huge legal bills to losing to barack obama in the democratic primary to her years in the state department. and i know joe has been -- >> we were going to run some don sterling. >> i was trying to figure that out too. >> translator: other piece of news is don sterling is no longer going along with the clippers deal. >> there's big questions about that. >> what does it have to do with hillary? >> i don't think it had anything to do with hillary.

earlier it was back to back. >> i was still waiting for the video. >> you wanted more sterling news? >> no. i wanted to see the sro run on the hillary discussion. >> natural gas supplies to ukraine and the eu are said to be stable today despite the past russian deadline when kiev was supposed to pay off some of its debts or face a supply cut. it is a key part of the crisis between russia and ukraine. and then in china, inflation is picking up on rising food costs. five-month high of 2.5%. inflation stillwell me low the 3.5% target for the year. so that does leave room if they want to for an interest rate and other measure to stimulate the economy. it's been a while. they are below target. they are below the 7.5% they were trying to do. so far no word on whether they would cut rates.

they're still worried about overbuilding and misallocation of capital. roach has a big piece today. steven roach. one of our market masters. >> just thinking they have been on the other side of that for a while. >> yeah, he has. he is talking about cashing in. how to ride the next wave of chinese growth. negotiate a bilateral investment treaty to help exploit china's coming boom in services. they switch to a domestic consumer society. >> i'm still amazed at what you pointed out yesterday. the japanese is even higher. what was it, 7.6%? >> yeah. >> kind of stunning. i guess it makes sense why the stock market was up for so much last year. >> if you can do it -- how did they do it? i would like 7.5% here. >> after 0 years of such minimal

growth. >> we were talking about spain with -- who was it? youth unemployment. and just how tough it is. we haven't fixed things here for youth unemployment. i know it's bad over there. we were talking like, yeah, they have big problems. thank god we are doing so well here. it is systemic. >> when you have their 10-year and our 10-year yielding the same thing that's crazy. here's your donald sterling video. >> pulling from a deal to sell the clippers from former ceo steve ballmer. he will pursue a $1 billion federal lawsuit against the nba. i haven't looked at the daily news, news, andrew. they hire a coach who has never coached. instead of getting the best

college coach. you could even find someone who knows month you to coach. i'm sure they would come for less than -- my point was the ceo paying everything else. the first time the guy coaches he gets a five-year deal at 100 times the average worker's paycheck. i'm happy for him. but if i was going to dispair acknowledge ceos and try to figure out way there is no market and why they don't do anything, you would have to ask why a coach is making 5 million. that doesn't seem fair based on teachers and other things. ? if there's a market for them, god bless. >> sometimes i think we should have these discussions again. >> and again and again and again. >> your arguments would ring just as me low in the eight as they did the six. >> that's not true. i'm happy for him. >> i don't believe you're happy for him now.

how can he possibly use 5 million? nobody needs that much. >> speak for yourself. >> get the babies out of first class quickly. >> a wild vacation that could cost a pretty penny. one of the most expensive vacations. tonight's big premier of the secret lives of the super rich. take a look at futures at this hour. we have some red arrows. dow looks like it opens off 23 points. financial noise financial noise financial noise

♪ >> welcome back to "squawk box". hewlett-packard is challenging ibm and high-end super computers. hp announcing two new super computer products. the journal reports this is the latest sign hp is doubling down on technology hardware while ibm is pulling back from the market. also, yesterday inventergy became a wholly owned subsidiary of aeon. it opened $4.90 and closed at $3.85. joining us is the man at the helm of that company. chairman and ceo of inventergy. >> good morning. >> before we get into it, tell

the viewers what inventergy does. >> our business model is we partner to corporations and have them get greater value for their intellectual property. we're 80% of the asset base are in their intangibles. so they need to get greater value beyond just the product and service revenue. that's our job is to help them get that greater value. >> in terms of what this whole transaction was about, it why do we need to become a public company? >> from day one i decided i wanted to be a public company for a number of reasons. one of which is to ensure that i would have greater transparency and higher ethics for my company. they wanted to work with a partner that could trust their brand, respect it, and have high ethics in the public marketplace. >> give us a couple of examples of companies you partnered with.

>> i purchased large acquisitions from panasonic, wow way and nokia. three large companies in the telecommunications space. >> why is it more valuable to you than it is to them? >> well, they don't have the skill set and expertise to monetize the i.p. intellectual property is a difficult business. i have assembled what i believe to be the greatest talent per capita of any i.p. licensing company on the planet. >> what do you do with it? >> we take the patent assets and we build cases against other companies and give them an opportunity -- >> so you like patent trolls. >> they don't like that word. >> i talk about troll-like behavior. it is the me haeubehavior that in this industry. >> what are the the patent

trolls do that you don't? >> taking assets and putting 8,000 mom and pop shops on notice the same day. or suing 30 companies with weak assets without even looking at them. i provide or we provide a corporate professional licensing style model much as i did at hewlett-packard. >> you go to big companies and say, wait a second, you are in fricking our patents. let's taeupbdfind a way to pate. >> we don't lead with litigation. we try to create good business opportunities. >> you're trying to go and legitimately -- >> the whole thing is people pay fair value for intellectual property. >> that's what i really wanted to talk to you about. there is an argument being made in silicon valley and elsewhere that the entire patent system has gotten spiral out of control. the office will give you patents you don't deserve the, are

overextended. people are using them in this patent war. it is not spurring innovation but killing innovation. what do you say to that? >> first of all, you have to look at there was a major patent reform just put in place a year ago. that made some improvements in the system. the system is not broken. are taking advantage of the behavior. but it helps spur innovation. that's why the bill has been delayed. let's slow down. let's make sure if we make any changes we do it the right way. >> when you see apple and samsung in this bizarre ping pong match, where they sue each other left and right, is that good for anybody? >> that's the case of two goliaths suing each other on a

large scale in which nobody can win. >> google bought motor hola in part for the patents. does that make sense? >> it is all about innovation. implementation is easier to. it's the innovation and ideas that's unique. >> if you're an investor looking at your company or any other company buying patents, how should you value a company like that? >> let's talk not talk about his stock. it's a $5 million market cap. i don't believe we showed the symbol. >> we did. >> how would you value these patents? what is the most appropriate way to do it? >> the value is the amount of money obtained from licensing revenue.

there are trillions of dollars of revenue in this space where these patents are applied. we believe great value can be created for us and these partners. that's how we value it. >> i like talking about patents. just to hear you say patent over and over. >> so whenever we get a chance to talk about patents, i just like to make sure i do it. if anybody ever has a patent on a button that works in manhattan, that would be the coolest thing. but you can't get a patent on a button, can you? >> joe, thank you for joining us. >> you're welcome. oh, this joe. >> the adults are having a conversation. >> all right. thank you. when we come back, we'll get to jim cramer at the new york stock exchange. then the secret lives super rich

is back. lions and tigers and private jets, oh, my. one of the most expensive vacations in the world. tomorrow on "squawk box", executive chairman martin franklin is our guest host. the economy, the consumer and the right grill for andrew. >> plus, retail is in focus this week for investors. the cfo of nordstrom shares his view of the second quarter. that's tomorrow on "squawk box" starting at 6:00 a.m. eastern time. (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours.

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welcome back to "squawk box" this morning. the futures right now, if you could hear what goes on during commercial breaks. the red arrow on the dow, down 20 points. nasdaq off close to 9 points. and s&p 4 points. there's a new study out by pwc finding only 1% of consumers say online shopping is their primary way to buy groceries. the firm says while online shopping is on the rise, there may be a lot more obstacles in the grocery business than we thought about before. consumers want to be able to item the product before they pie it. it's like clothes. >> or shoes.

>> or shoes. >> so watching shark tank yesterday. >> what did you see on shark tank? >> it was very cool. these two ladies developed an app for ipad where i put your child's foot on the ipad and it measures exactly what they need. it immediately goes to zappos. >> and they accepted you the shoot that fits perfectly. >> nobody would buy it but mark cuban did. they don't make any money on the app. they make money by getting it to zappos. >> you should tie up with stride-rite. that would be huge. >> right. >> as a parent, you're kids feet grow so fast. they don't like going into the store. >> it's a pain buying shoes. >> you can't buy online.

>> my wife doesn't like me to wear them. >> your wife -- i mean, you're not allowed to wear cargo pants. >> no cargo pants, no crocs. a lot of rules. got the follow the rules. >> it was seven years for andrew. that's nice. >> seven years? >> seven years. >> holy cow! i'm going to add another billion to the valuation of uber on that. >> you disagree, right, jim? >> no, i don't. this is one of the situations where the private market can drive everything. and i think that uber -- i don't know. i thought that the percentage that they have to capture would be higher than what you said. meaning how do you do 50%? i don't know. but i will say this. the market is what it is. i think any felt is really smart.

this thing is sweeping the nation and the world. travis obviously has a great wrap. and i think what happens is it opens and it's worth 25 billion. it is more valuable than more v. whatever. anybody who uses it is going to be interested in buying it. >> i wonder when we're at a point, jim, you remember the late '90s and pets.com and stuff, is it possible for there to be a bubble in private financing? can these people be dead wrong and just get totally carried away with themselves? >> i think there was in software as a service and -- >> but not this? not this? >> i never used pets.com. i never used the 330 companies that came public between 1999 and -- no one ever used them. >> no. >> like a web van with a concept. uber is one of these situations where everybody who tries it, everybody who has it, lovgs it. i don't know a soul who said that uber doesn't work well.

i heard people who said they paid too much for uber, but this is a concept that is based on your cell phone that people like that people are going to say you know what, handheld mobile they will be able to monetize it, it's worth who knows. why should it be worth 18, why isn't it worth 25. >> somebody pointed out earlier, the ceo from the summit we were at, airbnb dwarfs vallation for hilton, somebody is wrong. does that mean hilton is undervalued. >> i think airbnb is undervalued. i think hilton is undervalued. i think that's one of the problems. we've seen with hillshire, with i dentices, the market got those wrong. if the two smartest guys in protein, pilgrims and tyson, i can't go to thoses two and say you really have -- maybe the

venture capitalists are valuing some more than others but when uber comes public, it will be a $25 billion valuation. why not. it's got a model, the model works and it should go higher. and -- going on right now of companies we may all think are nutty but pilgrim's and tyson didn't think are nutty. that's the problem. those are smart companies. i'm not going to tell them their a'idiots. >> all right. jim, we got -- talked about that. we will see you in about seven and a half minutes. make sure you stick around for that interview. >> and -- i'm going to be there. >> you are going to be angry. and my son that's his dream ticket is to go to e 3. last night he was watching the

presentations on line for e 3. >> really? >> all the new games coming out. he says you can get my christmas list off e 3. i didn't mow what it was. i need to get a ticket. >> probably. >> we might have connections to do that for you. >> up next need a vacation? robert frank may have the answer. >> it's the ultimate super rich safari. three weeks, seven countries, private jets, private chefs an lots of champagne. we will tell you what it costs and who goes coming up after the break. a final go. this is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.

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the latest edition of "secret lives of the super rich" premiers tonight on cnbc. ahead of that robert frank is here to tell us a little bit more about it. >> a few months ago on this show we told you about this boom in what's called private jet tours. these are where people board a private plane for a month-long trip with the best food, best hotels. tonight on "secret lives of the super rich" question take you on the most popular private jet tour in the world. it's a private tour of africa, three weeks, seven countries, $80,000 a person. you gets to ride along for free

on "secret lives." we'll show you a taste. get this. >> their first stop south africa for a five-star welcome dinner at the aquarium and they're stay at one of the most expensive hotels in all of africa. then, it's off to namibia champagne delivered by skydivers. next up botswanna, up close and personal with the elephants. then the jet heads to zambia for a bird's eyeview of victoria falls. by helicopter of course. now they then move to tanzania where something very unexpected happens and not so great, actually. we're not going to tell you what it is. let's say even the rich cannot control the weather and 1.5 million wildebeests. >> give us a hint. >> no. it goes kind of bad but this is where jeffrey kent, the godfather of luxury travel. >> abercrombie and kent, created

the world of luxury travel. bill clinton, bill gates, jimmy carter have gone on tours with this guy. when things go horribly wrong he knows what to do. >> like the wildebeest stampede, like a lion -- >> i'm not going to tell you. >> yeah. >> was this the -- the migration. >> this is the -- they were there for the great migration. >> that's the danger. you want to go to the migration but don't want to go to the migration. >> have you seen the video when it's the wildebeest and the crocodiles attacking them. >> the animals in this segment are just stunning. we see cheetahs, hippos. there's a balloon trip where they see cheetahs from the top of the trees. it's gorgeous. for the wealthy -- >> skydiving in with champagne. >> is that the ultimate. >> for the wealthy it's all about these experiences, memories and moments and not stuff and status. this is where the big spending will be in the years ahead is on this like extreme luxury travel. the champagne -- >> what does it sdmost.

>> $80,000 a person. >> there's extras on there too. we had $3 million worth of travel on this private plane that people took. and we interviewed some of the people who are going and what they love about it and why they spend so much money. >> what kind of champagne was it? >> they poured a lot of dom on this trip. >> everywhere. in the middle of the desert. skydivers fall from the sky with your champagne. >> california. >> amazing. >> wow. >> kind of amazing. >> and ridiculous. >> go on this trip? >> that one i didn't go on. spent a lot of time talking about jeffrey kent. >> you told us it was going to be about places that put in the camp -- >> for you -- >> yes. the tents are -- >> they're moving. >> they're mobile. >> they fly from place to place. >> but then mobile and even mobile once on safari. >> you've done a lot of this, right? >> i have done -- >> nothing for you. >> i have done some safari but never done anything like this. >> never had a skydiver deliver your champagne.

>> no, but i have seen victoria falls. >> from a helicopter. >> not on a helicopter. i went on a paraglider with a lawn mower in the back. >> did you stay in that hotel in south africa? >> yeah, i did. >> really nice. >> yeah. i've been up there. >> on a hand glooidser. >> yeah. with a lawn more on the back. >> "squawk on the street" begins right now. ♪ >> good morning. welcome to "squawk on the street." i'm david faber right here with jim cramer. we're live from the new york stock exchange. carl quintanilla has the day off. let's give you a look at futures at this 9:00 hour as you can see we are headed for what appears to be a lower open. how about that ten-year note yield. give your money to spain for ten years you get 2.54. give your money to italy for ten years, 2.716. uncle sam, 2.6. 3.1 is what you'll get --