live from new york where business never sleeps this is "squawk box." >> good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick. a commercial resupply mission to the international space station is planned for this afternoon. several tons are to be deliver. including new science experiments and technology research. also headed for space an italian espresso manger. if you were just making up this morning, let's get you up to speed on the markets. take a look at what's been happening with the futures this morning. things have barely budged. last week was a very good week for the markets. the major averages quite a bit higher. the dow was up 7%. apple taking nearly one million preorders in its new watch. that happened on its first day

on sale. it says 62% of buyers purchased the less expensive sport model which started $349. we've been talking to analysts in the last half hour about all of this. we may get numbers from apple themselves. in global news, china's exports charge -- dropping a larger than expected last month. stocks in china rallied today as the weak data added to expectations that the government will unveil more stimulus moves and speaking of china the world bank is trimming its growth forecast for the developing east asia citing a continued chinese slowdown. activist investor jana partners is urging qualcom to consider a break up. jana wants the company to look at spinning off its chip unit from its patent licensing business. jana is one of qualcom's largest

shareholders. and symantec has been looking for buyers for its storage software business. reuters says an interest from an potential enquirer has been limited because of a tax burden associated with splitting company. u.p.s. plans to invest more than a billion dollars in europe. fedex is in the process of buying tnt express. we got a couple other headlines for you. a new survey finding that the corporate deal appetite hitting a five-year high. executives are looking to pick up other companies, especially because of the strong dollar and low oil prices. 56% of global companies surveyed said they intend to make acquisitions in the coming year. i can't figure out if this is good news or bad news because usually it's maa is a backward indicator. it's a back half of a cycle

rather than the front half of the cycle. everybody is too confident. good news also we have drivers given not a -- gasoline prices continuing to drop. the average price of regular at $2.45. down a nickel in the past three weeks. crude prices fluctuating during the period. the decline at the pump came as retailers dropped prices. as we mentioned the futures lookeds relatively flat this morning. we have the dow and s&p with strong levels. you can see this morning things are relatively flat while the markets decide which direction to take. take a look at the early trading in europe right now. you can see it's similar

patterns. the ftse is down. and cac and dax. and we see the handing sending and nikkei and shanghai. >> wti looks like it's up by 1.6%. that's a gain to 42.48 for wti. also check out the two-year note cht it was down. pretty significantly, the yield last week. you can see right now the yield sitting at 1.979%. if you take at look what's been happening we currency markets. euro all the way at 105.5. wow. dollar-yen at 120.70. >> trip is looking good. >> trip overseas right now. check out gold prices down $5. 1,199.10 an ounce. >> are you planning one? >> yes. see dyan sour did an extended

interview with the great julie andrews who looks as good as she's -- she's just amazing. >> 50 years. >> went everywhere. >> went to everywhere. >> went everywhere in saltsburg and all the places. we're going to mun itch to salsburg is only an hour and a half i'm and thinking autobahn. i'm thinking about it's april hour and a half i'm trying to think about making with 32 minutes. >> not with the kids. >> you are going with the speed limit. >> you are used to driving it. >> it's a good time to go. it was really you know people -- >> climb every mountain. that's the best movie. >> even the guy that was a shakespearean arc and was above it for so long now he embraces it. >> although he did stay out of the way. last time i think it was during the oscars he said this was her

moment. >> doris day almost -- it was picked for her instead of julie. she was kind of an awn known when they picked her. it was a really good special with die april sour. she was funny because she was running around like the found tan. they went to the spot where the beginning starts and it's amazing what therls. they built that little stream. this afternoon even there. if you watch it closely on the first shot the sky is totally clear. the next time you see her there's always clouds that no one noticed. >> doe a deer. >> that wasn't even called -- rogers and hammerstein amazing. >> i get so emotional when they sing adelweiss. i'm going to start with crying -- in political notes,

just kidding, hillary clinton announcing her second run for the presidency yesterday. today, marco rubio is expected to join the republican field. john joinds us. did you tweet out about rubio's announcement, unless you are going to endorse jeb bush i know what your announcement is was that you that tweeted that? >> that was me. that was me. >> you are kind of a smart ass. >> pot meet kettle. >> i'm kind of tired of these teases that we're doing and speaking of teases yesterday the only people in the country who were not trans fixed by you don't remember dap spieth -- jordan spieth at the masters were the small group of political reporters were watching their phones and ipads when this ridiculous tease for hillary clinton was finally going to be ended. it happened sometime around when jordan was on the third or fourth hole when they released

this video on facebook. >> i'm getting ready to do something too. i'm running for president. americans have fought their way back from tough economic times. but the deck is still stacked in favor of those -- >> now, with that video, she then took off on a cross country drive to iowa where she's going to campaign this week stopping at gas stations and mingling with average voters. it's worth remembering that the reason that there was so much hoopla around this and so much attention paid to how she's getting in is that she's not a natural at this and her 2008 campaign was full of divisions. you had the campaign manager putting out a memo talking about team work and how we're all on the same team. it will bear watching over the next few months for all the dominant position she's in how much better can she perform, can her campaign perform than she did in 2008.

then of course mark doe rubio in miami, in quite an interesting announcement is going to jump into this race the interesting thing is he's a protege of jeb bush and bush is running as well and could pose some stiff competition to jeb bush. >> i didn't see the twitter controversy. i did look at that logo and thought that was one ugly logo. because it's so -- it's not -- >> you mean hillary's logo? >> wasn't there a twitter -- >> i don't know about the controversy. i thought it was a pretty good logo. >> wki leaks mad dnchts people think it looks like fedex. >> she can't get a break. she said she's fought against children and families her entire career. they left out -- >> actually i missed that. >> they missed a word. i wonder if you just see it and it just doesn't register with you, really you didn't see that, it's all over the place.

they were missing four. >> once i saw she was in i went become to the masters. and i was quite disappointed by the way on the bogey on the final hole. i wanted him to break tiger's record. >> it was in the bag, and no one had been at 1900 before, he tied tiger, but he actually set the record. >> that kid is not human. he is unbelievable. >> we took it for granted because we just took for granted that he was going to -- every approach out was going to be pin high which is where you need to be on those to get -- but then the way he sunk those puts that was what was just by far and away, you don't see things -- that's the young nerves. >> he seems not to have a central nervous system. >> he's not worried about making the one coming back. you know, that's what a lot of people -- if you diet right at the hole a lot of times it just misses then if you gun it you have to make the five footer back at hose.

he's amazing. >> if that kid was 14 years old, he would be on hillary's short list. >> yeah for vp. all right. john, i got one question on the hillary video which is there's been some controversy or people talking about class warfare comment that she made. when she said that things are stack against -- it wasn't that she said things were stacked against the middle class, she said things -- >> average families. >> average families but the way she said it suggested that she was sort of taking a shot at the top and i was sort of curious your view. >> she was taking a shot at the top. that's going to be a big part of her campaign is saying more things have to be done and some of that involves redistribution of income and i am certain that in tax policy and in spending policy, she's going to do things that emphasize that people at the top have done well, just as

obama has done, and people in the middle have stagnated and government has got to make some changes. ths reminiscent by the way what al gore did at the end of clinton administration, we all remember that convention speech where he accept the nomination in 2000 and talk about powerful forces arrayed against average families. i'm not sure that hillary clinton is going to say it as starkly as al gore did. i think it's certainly going to be -- it's a core theme of democratic economics and it's going to be a core theme of hillary clinton's economic policy. >> the president gets buffeted from both sides but he's not running again. this whole elizabeth warren lincoln chafy, the specter of moving further to the left i don't know if that's going to play -- >> she's not exactly vulnerable

i'm not sure how much the primary process is going to move her -- >> did you see joe, the snl skit? katie mckinnon playing hillary and one of the funniest moments was when the actress playing hillary makes a video and she talks into the camera and she said i want to emphasize that i'm going to have to earn every vote because i'm saying stiff competition, she started naming potential opponents and she named martin o'malley and she started laughing. >> and then john oliver and michael bol ton talking about tax season. and then michael bolton song a song to the irs, how are you supposed to live without you?

joining us now, joe watkins was in the george h.w. white house and jimmy williams is the executive editor of blue nation review.com. i'll start with you, jimmy because maybe it didn't become a big factor for her moving her left, but even there was a bloomberg poll that said even a lot of democrats wanted a primary challenge to either toughen her up or to get her to move -- i didn't understand why democrats would want to challenge her. do you know why? >> i'm not sure why hillary clinton would never be tuvenive toughed up. she's been around the block, per se and for the idea that democrats want to make her swing left, the last time i checked, she's well within the mainstream of society. she's pro equal rights pro choice, pro environment, i'm not sure what part of her she needs to go left on. >> in your notes, i see you are

expecting a lot of mud slinging from those nasty republicans with hillary. >> you said very interesting in that a moment ago. it's this idea of populism about the pop top versus the rest of america, the shrinking middle class. this seems to be a central tenet, a talking point on the right these days. you've heard jeb bush talk about the middle class and marco rubio and ted cruz of all the people in the world to talk about the shrinking middle class. that's a wonderful talking point, the problem is the policies just don't match it. i welcome that debate. i think it's fabulous for the republicans to be trying to populism them sefses into a frenzy while hillary clinton skates in. >> i remember it seems like her entire career she's been up against a vast right wing conspiracy. the gop finds mud to sling.

it's never self-inflicted. it's never servers or benghazi. it seems like these guys are waiting to take shots. you know? >> you know at the end of the day, i know there are a lot of democrats that wish that she had some primary opposition just to sharpen her for the general election, folks to maybe move her a little to the left than she currently is. make her talk a little bit more about wealth redistribution make that more of a central theme in her discussion but the most part she has to remake herself, i think. there's a whole new generation of voters that really don't know her, i mean certainly for many of us who remember her as first lady and then as a u.s. senator and secretary of state, there's plenty to remember and to certainly plenty to think about hillary clinton but she's got to redefine herself for those younger voters she's got to redefine who she is and what she aims to do and she's got to look new and fresh and energetic and

she's running against herself in the primary. that's going to be a challenge for herself as well. >> republicans are late to the populist argument. what is the left proposing? raise the minimum wage and other redistribution? i guess. but i still don't get it in term of growth anything that would get us out of the muck. >> you won't hear anything like that coming from the democrats in this cycle, certainly not too much of this from hillary clinton. definitely not from any of the other candidates and martin o'malley, if elizabeth warren seeks to run, you certainly won't hear it from her, it will be -- the burden will be on republicans to talk to fight the good fight. of course jeb bush is way ahead. marco rubio may be his protege, but he's running going to have toll raise a lot of money to

come close to jeb bush. jeb bush locked ape lot of the big money early on and rubio is going to have to find a place for himself with the other conservatives i suppose who are already out there. rand paul ted cruz who were up there now in the lower double digits, so he's got a lot of work to do. on the other hand his challenge is that he's not as polarizing a candidate in a general election as rand paul and ted cruz seem to be, all of them pale in lying of jeb bush. he's clearly the frontrunner here. the man to beat. >> jimmy, why do you think that bill de blasio says he has to think about it and hear more about what she's going to say it. he's known her for a long time. >> is it legitimate for a progress sieves and liberals to want hillary clinton to come out as far left as she possibly can,

whatever, that's fine but it's about electability is it not and by the way that also goes for the right, and so i think what she has -- again, i just tiked off five or six different things where she is well within the mainstream of american society and those are all left issues. so i don't know what mayor de blasio is waiting for her to do per se other than declare what she did at 3:00 p.m. yesterday afternoon. she's now going to go have small meetings all across the country. john just talked about how she's driving to iowa. she will be in new hampshire, down in south carolina which i just got back from there and is she's going to have to sit down and actually connect with people. joe watkins talked about her making herself over. i don't think she has to do that. i think we know who she is. she has to go ask people to vote fore her and say why and if she can do that and do that all across the country, they will be fine. >> she needs everybody that likes her to vote for her.

high negatives jimmy, the weird thing, do you think that there's a strange similar biotic relationship between jeb bush and hillary, they need each other. if they don't have each other, the other is going to say your old news and i'm new. if they are both old news i guess it's the -- >> it makes easier for each of them to run. >> if i were rand paul or ted cruz or marco rubio, i will hammer that home every single day. jeb bush has a problem, two words, terri schiavo. they will think twice about jeb bush. >> so hillary care and monica and all those things -- and benghazi and the server she's got nothing to worry about, but tarry shy voe -- terry shy voe.

>> i do not think that hillary clinton is a cake walk into 1600 pennsylvania avenue. people look back at their records. if it's okay to look at hirk's record as first lady secretary of state, united states senator two times, it is okay to look at jeb bush's two terms as governor. terri schiavo. >> i agree. terry terri schiavo is not going to be the main issue. >> jimmy ignored those other guys, he was definitely going after jeb because you might as well start now. >> jeb also did say -- >> wait a second. let's go back to terri schiavo. what's the problem what jeb bush did? >> he flew to washington, d.c. and asked his brother and the republican congress to federalize terri schiavo's body.

>> he asked for the feeding tube to be recertified into her. >> her parents had a different opinion than her husband had. >> last time i check, your husband matters more than your parents. >> again, terri schiavo whose feeding tube was taken away and her husband wanted her to starve to death. >> i understand. if the era was big government was over why was it so big during the republican revolution. >> i think that's a very different case. i wouldn't bring that up as something that's going to hurt jeb bush. >> how about the minimum wage should be decided by the private sector. >> you can raise that. >> i haven't had any coffee yet, guys, gosh. >> all right. gentlemen. thank you. >> that may be his issue, the terri schiavo. coming up on monday morning strategy, what investors need to

know about the trading week ahead. next, attention travel warriors a new report giving u.s. airlines lower marks. you probably thought that already. but across the board as we head to a break, here's a look back at this date in history.

welcome back to "squawk box." making headlines, a new report this morning giving airlines low marks for quality. more flights are late these days, bags lost and customers lodging more complain. on time arrival fell to 76% last year. rate of sloft, stolen or delayed bags, 13%. the worse offender airlines that did worse, the worst on

this report it's united express, it's all of little guys who do all of the rides, where there is very little competition. i just want to say it. >> those are the small planes too. they are uncomfortable to be on those planes for a long time. >> you go to omaha on a united express flight -- >> it's a three-hour flight. it's a very tight space. >> it's very little competition on those flights, i if i it if there was nor competition on those flights. >> there is competition. you can fly a big plane if you fly somewhere else and stop first. >> direct flight is where. >> your whole complaint, it all goes back it's hard to get into the business and the way the government handles the slots at all the airports. it has nothing to do -- the airlines trying to finally get a return on capital for 20 years getting their kicked. they have all had to merge just to stay in business and it's a business we definitely need. you know why you don't

understand this? >> tell me why. >> because you got two kids you got two kids and you've never had the 16-hour drive driving. and just getting down to south carolina from here or something, it's not even florida. >> i did the eight or nine-hour drive. >> do it a few more times and tell me whether we need an airline industry. >> i haven't done a 16-hour drive in a while. >> you know how many semis you pass he probably isn't coming over or is he then you pull back in the right lane there's another one coming up no. i mean it's 16 hours of nail biting every pothole, every, you know, fly, believe me. >> you said you are used to the auto bahn speeds. >> i'm ready to go to bataan you driving around this himalayan mountains.

>> you got the terrible cold, and he goes through bangkok again. god foes what he brought back there. >> we can tell you a couple of other thegs, sears and simon property. sears is contributing ten locations located at simon malls to the venture. this follows a similar venture announce the earlier this month >> this is a complete unwind. >> he's made money. he's made money out of it even though the whole thing has become such a debacle. >> you see that they are not investing back into the stores. >> let's talk about u.s. stocks they are coming off of their best closes in april. our next guest believes deflation is not in the cards. joining us is jason render.

thank so much for being here. explain what you mean. deflation needs to higher ects why? >> well, it's the search for yield. it's the thesis we've been talking about for i guess two or three years now. i know it's -- this tina thesis has gone from being like a nice companion did to restraining order. >> there is no alternative. >> and you have a situation where german bond yields are 14 basis points. you have a problem. 100 equity of the german dax have higher yields. below 2% you have 40% of the stocks in the s&p 500 that have dividend yields ahead of the treasury. if you are a pensioner, you are someone that needs income you are left with so few alternatives and again i think ultimately the fed is going to normalize rates but i think

candidly people should fear inflation longer term rather than the fed. the fed is moving toward a more normal stance. you say this and the way you explain it, it's like you are here, you hate being here you hate recommending this. >> it's not quite that. i find this is the most hated bull market in history and people are still calling it a rally. i travel around the country and no one is enjoying this. no one is happy. i would say it's hard to have a big bull market top when you don't have the types of euphoria that are normally associated with the bull market top like in '99 and 2000. i think there are good reasons to be in equities i think what drives people a little bit crazy is the fact that the policy mix, i will argue, especially between fiscal monetary and regulatory those three things is probably

producing misallocations of capital. you have a situation where you have very easy monetary policy but very tight regulatory policy on banks, all the benefits are going -- in term of the political season that's coming up, that's going to be a big issue. in my way of thinking the policy is actually made. it works. it's made the income equality worst. >> do you think they are playing in the stock market or playing out in certain pockets or and it doesn't worry you that when they actually do raise rates, you are going to see some crashes? >> i think that there are some -- i would say particularly in the alternative space, private equity could be one area where there's actually more private -- close to more private equity companies than there are publicly traded stocks right now. there are 5,000 firms managing. you have a lot of things where people are just -- they are reaching for yield and it's

not -- i don't think it's going to end well. there will be pockets that are going to cause real troubles. i just don't think it's going to be in the publicly traded space. i think it's going to be in another place that we're not looking at. so this is -- i think this is what worries me eventually and i think -- >> it doesn't happen in publicly traded space, it will eventually fall back? >> it won't happen in publicly traded stocks but it will eventually impact the overall economy. the irony i think of the monetary policy that we have now in many ways is the trickle down monetary policy the whole focus is getting asset prices up and you are hoping that will eventually lift everyone up. it's an odd way of going about it in my view. i would much rather see policies that are focus ds on capital formation, but this will be another thing that plays out over the next two years. just watching this political debate that you guys had where -- before. i watched that and it worries me. it worries me because what i'm finding is companies are much more willing to take financial

risk let's say issuing debt to buyback stock or ma. rather than economic risks. when i watch political debates like that it doesn't make me feel better that companies are going to say you know what let's open up a plant. >> you say as washington is stuck and mired in this back and forth and not making tax changes, not making plans clear, that that is what leads to this sort of behavior? >> that's my opinion. as a business owner myself i think that's the way it works. capital spending in particular takes the most confidence, it takes a lot more confidence than shared purchases, right? because you are not going to get a return for four or five years. by the time it works out, you may be spending more time with your family or whatever it is so there's a very strong tendency to try to do things that are immediately acceive to earnings. i think again you are seeing this. i'm sorry to make this a political discussion i think the economic activity 2% real

gdp growth and the political debates are intertwined. >> thanks for coming in. >> thanks for having me. appreciate it. >> coming up jordan spieth's run at history this weekend. and the big corporate sponsors behind him, a couple of big rivals against each other just like the guys who were sponsoring. first, a commercial resupply mission for the international space station is set for this afternoon. it will also carry an italian espresso maker living on the space station who is tired of the instant coffee. there's no explanation all the time. nasa says it wants scientist to feel at home as they feel months in or by the. sidewalk "squawk box" we'll be right back.

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♪ ♪ ♪ >> it wasn't suspenseful. >> it was suspenseful to see whether he was going to beat it by -- >> they had a shot at 16. >> if jordan had missed and he had made it would have been two strokes. still i wonder about the ratings because tiger was there. tiger controls that -- at this point he still kind of does and he played -- it was weird that we worried about his short game

which was great. he said it was always great, but the long game we remember when he hasn't won for a while was back. he had two fair warks, only two on sunday but one of the cool things and, you know jordan is a confident kid and we spent time with him, quality time at the at&t dinner out at pebble beach. randall is pretty sharp and so is kevin plank. how about lance and bigdo down on the sponsorship. what's really kind of neat if you look at jordan's bag, it's an at&t bag. >> and his clothing is under armour. >> but rory who was three over after the -- on friday he was three over after the first nine, and then you saw how close he came he's nike.

he's big time nike. and so it's a nike underarmer. that's going to be the big rivalry. >> nike all over the place and phil mike i'm doing okay. jordan spieth watching, number one, where those tees are at augusta, versus where the normal people hit, they are like 100 yards back and yet the balls end up at the same place when jordan hit, every approach was pin high. >> i didn't realize that yesterday. they also showed his grandfather who was also wearing an underarmour. >> his putting was almost like academiy shack, amazing.

>> explain the whole tiger woods -- >> it looked like it was very painful. i don't know what he -- i don't know whether that's -- i don't know anything about anatomy in terms of that but it was a great tournament. it was great for jordan and wouch out because it would have been hard to -- when you shoot 64 the first day and 66 the second it's kind of anti climatic. it's hard to sleep on a lead. >> you see jordan it was hard today and you can't -- no matter how mature you are at 21. you sleep on a lead three straight nights and all that pressure. >> he says he's confident. he's not cocky. there's a difference. >> that's another great story. what a great family. >> jesuit high school in texas where he went. >> when we come back my favorite topic, your favorite topic, your numbers on ceo pay, where the money is going and why. stay tuned. >> and how to stop it. carefully to work,

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welcome back everybody. ceo pay has been trending higher. that's according to the "new york times" this morning. our mary thompson is here and she has more on this story right now. mary, good morning. >> good morning, becky. once again it looks like the big money is in tech and media. the top earning ceo as for the largest companies by revenue that file their proxies. highest pay, microsoft's new seo sattya nadella and/or akle larry ellisson. and steve monthlienkopm from

equal com. and disney bob iger and after that, larry merlo. most ceo pay is tied to stock performance this day. median ceo pay rose 5% over $14 million. the average pay unchange so far. warren buffet is the lowest paid of ceos. missing is david zaslav his pay among the highest. the firms just over 6 billion in annual revenue. les moonves, he will probably be added to the final list. this is preliminary. a more complete list will be

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to wait longer than expected for delivery. may and june until nearly 1 million customers ordered the new product on friday. according to research firm slice intelligence, the editor in chief of "the verge." and you were here you showed us the watch. you have it on again. i won't ask you to take it off this time. >> against rules. >> might be against the rules. this million sales. is that surprising to you, not surprising to you? >> not surprising at all. i think what's surprising is that supply was so constrained. especially of the lower end model. if apple had a good weekend, they'll put out numbers today. they sold just under a million and most people bought the lower end sport model and i'm surprised that model is supply constrained. or even some of the middle ones. but i am surprised the aluminum cheaper one. >> you think thiey made a mistake

by not producing. >> not a mistake. but i think the demand is surprising to them, especially in this early part. >> the demand is surprising not only to them but i also saw a note they're bringing their numbers down on fossil and movado because of strong demand. somebody is going to suffer. they're looking at traditional watchmakers and thinking hey, maybe they'll have a tougher time of it. >> the way i think of the watch. apple hasn't had a strong product in the $300 i have to buy a gift range. that used to be the ipod. i am going to go buy an ipod and the watch is that thing. you can go buy something that? a $1,000 or a two-year cell phone contract or a $1,000 mac book. >> it doesn't need a contract or anything? >> no it just connects right to your phone. sort of the next apple thing to buy. apple can erely on that strong customer base. >> in terms of the trajectory of

sales. we have a million this week. you don't think we have a million next week. and we also have to open up china and all these other markets. how does it look to you? >> it depends on whether they could get products in the stores on the 24th. you can go take it home day. it doesn't seem like they will be able to. that's just rumor. i'm not really clear on that. but i think sales will taper off. the initial big surge, i was up at 3:00 in the morning and a big moment on twitter and everybody ordered the watch and said which ones they were buying and that will keep going for a little bit. the next move for them is actually in the stores. you can actually take them home and i think that will be the next start. >> a great launch for them to get into the holiday season if this is the gift that people are going tabe looking for at the holidays. >> there is, quite frankly, just some software updates to do they have a big launch coming later in the year with true native third party apps. a lot to do in terms of the product itself getting it out in the stores and seeing how people are using it and see

where they have to put their engineering effort is a big deal. >> there will be software updates. how quickly do you think this is horrible because it is coming out with it now. how quickly edo you think they'll update the device not just in software. we'll see a different physical product a year from now? two years from now? same upgrade schedule as the phone in. >> i think this one will go very quickly. that is only because it was pushed once. so, all the rumors say it was supposed to be ready to go at the end of last year and apple announced it in september and they waited. >> they have to get through the christmas season with this device. >> everyone calls it a phone. i call it a phone all the time. the way i think about it the first ipad. it was magical and revolutionary and it was gone in a heart beat. >> what was the period? >> just a year. it was like instantly they were done with that product and the ipad 2 and if you think about the longevity of the ipad 2, still for sale in some ways.

the internal processors are still in some ipad minis. >> the 2 the 3 and the 4. you look at how quickly they revved that first generation product. they got it in the market and proved the concept and validated the market for tablets, which had not yet been validated and then immediately iterated with a product in its basic format is still on sale. i think this is the market validation. >> you know what that looks good. >> looks good. >> i mean it is a good i mean it looks good. not like an ugly i mean that is a, that looks elegant. it looks good. and you lie because those knobs are very shiny. those look good. that looks really good. >> you're going to get there. >> i'm not going there. i can see you -- >> he's trying. >> valiant effort. >> i see you work on those. >> do my best. >> getting that shiny. >> thank you for being here. >> thanks for having me.

coming up this morning's top stories plus the race for the white house. former obama chief of staff will be our guest host. maybe they're always that shiny. anyway, stay tuned. >> maybe you don't polish them. >> maybe he does. >> stay tuned "squawk box" will be right back.

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europe rising. stocks across the pond near all-time highs. jim o'neil tells us why he thinks europe's qe is working even better than america's. the race is on. i'm running for president. we break down hillary's path to the white house with bill daley former president of staff to president obama.

and the doctor will see you now. >> if i was bent over like this i would probably feel 100% better -- ♪ moon river ♪ >> health tech let you consult with a doctor on your wrist. dick tracy style. >> we'll get right out there and give you a hand. >> company's founder joining us on set the second hour of "squawk box" begins right now. at the beating heart of business, new york city this is "squawk box." welcome back to "squawk." huge win and that's what we were talking about. welcome back to "squawk box" on cnbc. first in business worldwide. only break up and destroy like a bunch of companies. we can still hope. i'm joe kernan and our guest

host this morning is bill daley and, curt sort of although we're closer on a lot of things and you're a bankster now, aren't you? >> i'm in the financial service. >> wow. >> all right. anyway current head of u.s. operations for argenter capital. here are your morning headlines brought to you courtesy of andrew. >> a couple headlines for you this hour. china's exports declining. but stocks in china rally today as the weak data added expectations that the government will unveil some more stimulus moves. janna partners is asking qualcomm to consider spinning off its chip unit from patented licensing citing a quarterly letter that is sent to investors today and jana wants qualcomm to

buy backs and change executive pay structure. apple taking nearly 1 million preorders for its new iwatch. we just talked about it in the first day of sales. slice intelligence, 62% of buyers purchased the less expensive sports model, which starts at $349. we're told little bit constrained in terms of how many they made. >> we'll see what happens over the next few months. >> usually around 8:00 we sometimes get numbers. when the numbers are good apple puts them out. we'll see. remember last year tim cook came out publicly and said he wasn't going to release the data separately. remember this? he wanted to do it in advance. tell everybody in advance. >> you aren't surprised when it happens. >> you're not surprised when he doesn't do it. >> maybe don't hold your breath. hillary clinton making it official she will run for president. for more insight into the race

for the white house for 2016 power players from both sides of the aisle. joining us on set eric cantor also former house majority leader and our guest host as mentioned, bill daley is with us. the head of u.s. operations and he is also the former white house chief of staff to president obama and a former commerce secretary under bill clinton. gentlemen, thank you both for being here this morning. bill, you have known the clintons for a long time and worked closely with them. how does this map out for hillary's campaign to the white house? >> it was a difficult thing to roll out only because everyone was trying to figure out she do it with a big crowd. everybody wants to look back to the '08 campaign and mistakes that were made. even though she didn't win. her and president obama went to the very end before it was decided. it was a tough race. she did a very good job after coming in third in iowa. so i think the rollout will go

well. i think her trip to iowa driving is a good thing and all the messages off of that. but this is a long process and a difficult process for anyone running. it's a slaung shotlong shot for any one of them. she looks like she is in strong shape. right now only a couple people speculated. martin o'malley, who hasn't announced. jim webb former senator from virginia and the never-ending cry by some people for elizabeth warren to get in who keeps saying no no no but some people don't take no for an answer. >> the current democratic party might prefer bernie sanders. >> he's an independent, joe, you know that. >> a socialist. >> and that's fine. and he's very proud of it which is fine. >> eric we also hear that marco rubio, very likely to announce this morning that he'll be running, as well. how does that shape up the

republican field at this point? >> becky, i think certainly a bit of a contrast between marco rubio and hillary clinton. hillary clinton has been in public life for decades and thunouncement of marco rubio, certainly, i think reflects the strength that our party has in the next generation. but if you look across the board, i think our bench is very, very populated. we're going tahavettoo to have a robust discussion and healthy for republicans. as far as hillary clinton is concerned. she's going to have to go out and tell people what she's for because i think people sort of have this perception of her having been in her position for so long. you know i sort of think about the connection that elected leaders have to have with their constituents. you have to ask yourself when is the last time that hillary clinton sort of stood in line at a grocery store. she doesn't do it at a tsa line at the airport. i think that's probably why she's taking a van ride across

the country. but, you know i look at sort of the issues because at the end of the day it will come down to where these candidates are on the issues. and when hillary clinton comes out with a video and i think you've got to give her some credit for the new digital age that we're in to just promote this on facebook. but i do think that you look to see what she's going to do for the economy. she had a hit in there, again, that sort of reminiscent of the class war fare that we've seen. >> you mentioned 6:00 hour. >> six years in this administration. is that where she's going? >> we mentioned the logo too. she mentioned, who paid for this, bill? that on the left is the hillary logo and that on the right is the cuban flag. >> joe, come on. >> what do you mean you know? >> therefore -- >> i'm just saying. okay wikileaks immediately accused her of stealing wikileaks.

fedex. logos matter. that's what we're talking about. twitter exploded. why is the arrow pointing to the right. is she not going to attack to the left? >> come on joe. >> that's not as bad as i read. i think it's a horrible left -- >> conspiracy she's running to the left. >> i don't know what it means. it's pointing to the right, but just like cuba's flag. i'm not sure what she's saying. >> how about the -- >> big red arrow. >> the point that you just made about her comment about things being stacked against the middle class and disproportionately better for, what was the line? do you remember what the line was in the video? >> things are stacked against the family. >> in favor of those who -- >> again this is the point, though. are we going to esee now a replay of the last six years or if you think about where her husband was and, bill, you were very active in the cabinet back then. you know he was one that sort of opened the door for the

democratic party to be free trade, right? to be for these trade agreements. i think one of the big tests for hillary early on where is she going to come down on these grade agreements? >> the trade agreements that her husband supplied were also a way of opening the doors and making sure that people in other countries had a fair shake at this, too. my grandfather was a union leader at the time and supporter of bill clinton even though he was supporting things that most union membership went against. the way he sold it to these people. a way of eveninging the playing field. >> run the effort to pass nafta and it was a brutal fight, as those who were involved. probably the most difficult fight. and this fight for trade authority for president obama will be as difficult. >> would bill clinton have used the line. the deck is stacked in favor of those at the top? >> that's 23 years ago. the times are different. listen to the words of republican candidates who are

announcing this. somewhere said earlier in the show. they are all running, not to the 2% but the 98%. and everyone is trying to help the middle class and get wage and einequality. >> instead of just like talking to the 2% probably better to bring in some 98. >> you figured that out? >> it is a game of addition, not subtraction. >> if you're going to promise redistribution to the lower 60%, i mean as bad as the romney quote was that he made and it probably sunk his candidacy, you know it's hard to get, i don't know if a republican gets elected to national office again. when you get promised. your recurring favorite -- >> it is a game of addition. politics is about addition. well, look at that's why everyone is talking aboutthe middle class. that's why everyone is talking

about it. no one is going to use the quote you just said. take from the wealthy and give to the bottom 30%. but, we have to the thing bill clinton understood and i think hillary clinton understands is that we better get this economy growing to lift more votes and not just the people at the very top. >> growth initiatives probably make more sense than minimum wage, right? probably trying -- >> combination of that and both will help. no doubt about it. >> when there is growth, walmart raises it on their own. >> trying to reach out to the middle class, as well. >> i think, clearly, it is about saying that we're going to be committed to economic growth. we are going to be about creating the environment for long-term decisionmaking. i think, you know as bill and i both have been in the public sector and now in the private sector, i think there's a challenge for leaders at the top when corporations and large cap companies, especially as well as within the government, how are you going to commit your vision for the country and then how are you going to from a

tactical standpoint every day go about promoting that vision and the same incumbent upon our elected leaders in washington. >> how do you do that without sounding like you're not sucking up to companies, to ceos to the weltiest americans? >> but the thing is you have to create the vision. that's where i think hillary has a real problem. i mean she's got to go in and say what she's for. you know, i think when you hear marco rubio you know immediately what he's for. you've seen jeb bush chris christie, scott walker all these folks have records and the narrative is there. what is the narrative? what is she for? how do you get the working middle class of this country behind that vision? i also think from the standpoint on foreign policy something which we haven't discussed which does bare on geopolitical risk and economic growth. i think that's a huge challenge for her because she as secretary of state, you know, you would

think that that could be a huge advantage for somebody running for office. but right now give on the state of the world, she's probably got more of a liability coming out of being almost allegedly the chief architect of the policies that have brought us to where we are. >> bill you can blame where the middle class and the bottom and food stamps and all that stuff and disability increases. you can blame that on the great recession of 2007. but, you would have to say that the last six years in terms of zero interest rate policy with the fed and in terms with the supposed middle class economic policies, the results have been you know staggerly bad in terms of where we are and in terms of income inequality and wage growth. maybe we should try some different things? >> i think hillary clinton's challenge is going to be to come up with different plans. no doubt about it. she can't run as the third term of barack obama. >> gdp growth does not help the middle class. i mean maybe, i remember you

were in bill clinton's administration. you see how the middle class benefitted. trickle down doesn't work. look, if the entire pie is growing, that at least gives hope. >> you have to make sure that with your policies that more people are being lifted and right now we've seen a recovery as you stated earlier today. or someone on your show stated. the recovery that we've seen over the last couple of years which is very obviously, very good for the country. very positive. but it's benefitted a small slice. >> when the stock market triples, the people that own the stocks. >> this is where you go back to the policies, the trade policy for instance. a couple things that washington can do right now to get things going for everybody is to come together to believe in economic growth policies. and that's why i think this is the first big test for her. is she going to be like her husband and go in and bring people together for growing the whole pie or are we going to see now diverting back to what we've seen for six years. >> you think trade policies actually move the needle, though for voters?

i'm not sure where the voters understand where the policies are. >> you said let's get to the substance of the policies. i think they're very pro-growth in nature yes. you can see ultimately people standing if we can see a more competitive environment. >> i'm not saying don't do it. >> but at the same time someone who has been a big believer in free trade, there is a dark side and there's a negative to them. that's why we have to understand that. that's why there's trade adjustment and lots of people are. we have to under that. they have to be trade agreements like columbia which passed under this administration and korea that were solid agreements that there was a bipartisan consensus on. this administration did that. and i think hillary clinton is going to build on it. >> eric cantor thank you for in joing us. bill daley will stick around the rest of the show. coming up, how lifting sanctions on iran can change the

global market. squawk market master jim o'neil will weigh in on emerging. debuting on the apple watch. they're calling it the affordable care app. the company's founder will join us right here on the set. we're back in just a moment. the lightest or nothing. the smartest or nothing. the quietest or nothing. the sleekest... ...sexiest ...baddest

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ualcome back to "squawk box." sanctions to be lifted with talks with the u.s. the deadline for the talks is june but everyone talking about a key scenario for the oil markets what if the sanctions are lifted and what happens if iranian oil floods the market. here to play out some of the scenarios with us and chief commodity strategist. couple things. >> yes. >> what do you think the chances are that the sanctions are lifted? let's start there. >> first of all, you have to get a deal on june 30th for the sanctions to be lifted. no way you can flood iranian oil to the market because even if you get it on june 30th then they have to inspect the facility and make modifications to the facility. you're talking 6 to 12 months following a june 30th deal. who starts taking the iranian oil. it will be staggered when it comes back on. >> you think it does come back on?

>> if you get a deal. all about getting a deal. >> you are handicapping the piece of this the critical piece at what? >> the administration wants a deal. i think i've seen a 60/40 but a couple real speed bumps they could hit along the way. congressional legislation. do you get the corker amendment passing. that could give congress making it harder to take off sanctions immediately. >> before we get to the implications and the oil, we have mr. washington here. what do you think the chances are that we actually get a deal? >> i think 60/40 is a good number. i think it will happen. not only because the administration wants it the rest of the world wants it. all our allies want it. the deal it's a long way to get an actual deal but my guess is the push worldwide will be to get a deal with iran and try to stop what's been going on in the last couple years not just the sanctions, but this tension and see if we can begin anew with

iran. the world, not just the u.s. >> push it forward. now you're saying if oil does come on we're not dealing with it for 6 or 12 months afterwards. >> after june 30th because of the specifics they have to modify their reactor and they have to modify the enrichment sight and then those modifications have to be verified and come up with a mandate of what do you check off for verification? that will take 6 to 12 months. >> what happens to oil if nothing happens when the iranians there is no flood of iranian oil and then what happens if it does? >> again, i think it's a 2016 issue. comes the question of how much is the u.s. production on the market. if you're adding an additional 500,000 barrels of iranian production back half of the year, that puts downward pressure on prices. but the back cuts have been significant. we're talking about a 20% global cut and that should be potentially filtering in in 2016. not going to be an amazing pull downward because we've taken so much off for next yootear.

>> oil prices where 12 months from now? >> 12 months from now i think we're in the 70s. back in the 70s 12 months from now. >> that's irrespective. >> that's high 70s and then you layer iran. if you get 500,000, you could be down a couple bucks on that. i don't think it's taking us back into the 50s or 60s. that would really be a massive snap back in u.s. production. you know basically that you have a w-shape curve and all this uncompleted wells come back because you're in the 70s. >> if you're in the 70s, what is the price point that suddenly makes sense for all the u.s.? >> i was saying look if we get into 2470s, all of a sudden do you potentially incents have several 100,000 u.s. barrels back? they have a scenario 480 this year and climbing into 500 on u.s. production. we're in the 70s they put a 2017 number of additional barrels

coming into the markets. >> which puts you where? >> high 60s, low 70s. >> what i also wonder technology wise a lot easier to get production back up and running and then to shutter it or slow it down when you have price fluctuations. if you'll not see the same spikes and dips in prices that we used to see 20 30s years ago. >> i think that's what we're looking at. the u.s. is the place where you have this incredible store turn it off and turn it on. the problem that we see and what does that provide that flow for oil prices. when you have disruptions, that stuff just stays off for longer. it's the u.s. in many respects that is a new swing producer. >> thank you from tomb raiders we appreciate it. >> thank you. i'm thinking you might buy my oil at 75 how many months from now? >> will i buy your oil? >> did you say 12 months now? >> you'll buy it for me at $75

in 12 months? >> i'll take it. >> my investments don't usually give me 50% in a year. >> we'll see. >> slam dunk. >> oh, i'm not saying that. i used to work at the cia, i'm not saying slam dunk. >> so i should not put all my money right now in oil futures? >> i'm optimistic. >> i just want to know -- 50%. i mean i'm getting five or six in the stock market. >> you hold me to the five. >> buy one barrel. all right, coming up security scammers. captured burglars committing multi-million dollar jewel heist that story after a quick break. time now for today's aflac trivia question. who was the first president to have a presidential address televised? the answer when cnbc 'squawk box" continues. and a gentle wavelike motion... ahhh- ahhhhhh. liberate your spine... ahhh-ahhhhhh......aflac!

and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just one day. ahh! so he had your back? yep. in just one day, we approve and pay. one day pay, only from aflac. [duck snoring]

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burglars from an easter weekend heist in london's diamond district. the gang dropped down an elevator shaft and pried open the doors and drilled through nearly seven feet of reinforced concrete and then raided the vault. the thieves stole tens of millions of dollars in jewels. >> very clever. >> and the great thing is you know they know there are cameras. they're in surgical suits. cameras everywhere in london but doesn't help when you're bundled up like that. i like the music. >> was he slouching? hard to tell from that. >> your duck walk. >> my duck walk. >> spot andrew with those size 14s, right? >> you have a size 14 shoe? >> no. >> i'm jealous, they're big. 12 1/2. you wear big socks.

when we come back this morning, european stocks climbing to record territories. '"squawk box" right now as we head to a break, take a look at the u.s. equity futures. so far undecided. the dow future down by 17 points and the nasdaq is up by less than a point, but, remember the markets are coming off some high levels. stick around "squawk box" will be right back. when a rewards card is designed to sync with your life it gets talked about... ♪ ♪ ♪ so you can live the way you live, and enjoy all the rewards. chase sapphire preferred.

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welcome back to "squawk box," everybody. in our headlines this morning. retailer sears and mall operator simon property have announced a 50/50 joint venture to try to unlock value in sears owned real estate. sears is contributing ten locations located at simon malls to the venture. this comes after a similar deal between sears and general growth properties that was announced earlier this month. again, the goal there is to try

to unlock that real estate value that has been talked about since lampert got involved. "furious 7" racing away from competition. the blockbuster brought in more than $60 million in its second weekend. that brings the movie's global total to $800 million. that's right. two weeks, $800 million. it is on pace to become the highest grossing film in universal's history, if it passes "jurisic park" at $1 million. hbo's popular series "game of thrones" returning last night with season five premiere. but fans got a sneak preview four episodes of the new season leaked before online. it expects the episodes will be downloaded more than 1 million times. the episodes were leaked by a group that was approved to receive them early and traditionally critics get, what happens is the critics good et the four episodes on dvd

beforehand, but usually burn into the episodes your name either on it or a critic thing or whatever and that doesn't, nobody seems to know how this that burning is not there, apparently. golf masters tournament wasn't the only major sporting event that took place over the weekend. 80 collegiate teams faced off in the quidditch world cup in south carolina. a game created by author j.k. rowling for the harry potter series. the university of texas claiming its third consecutive world cup. i think they also have brooms that they get to ride. >> they run around on them. >> but it's more fun in harry potter. >> i was at universal last week got to ride the rides, which are amazing. >> those brooms are broken. >> no they're not. >> they're not working. >> not flying. >> no fun when you're flying around. i don't even want to do that. >> how do you even play with the golden snipe thing? that's supposed to fly around

too. >> that does look kind of dangerous. >> i think the broom thing is dangerous for men, specifically. >> that's what i mean. in fact i didn't want to, you know what, europe's in focus more specifically right now than that. i was going to say bicycles away. that looked, i mean if you made a wrong move -- >> serious college activities. >> colleges are, those were good years, weren't they? >> did you have fun at cornell? >> no unfortunately, i wasn't studying. no. the german dax and the french cac are each up more than 20%. year to date as easy money hopes fuel a rally to all-time highs across the pond. with the european economy on more solid footing. the quantitative easing program could produce better results than qe did in the u.s. one man with that view is jim o'neill who joins us now, a former chairman of goldenman

sachs. is something weird. not enough bonds to buy and negative interest rates. how does that end up being positive? will you help me out with that? you're smart. >> can i just say, joe, before we go on to that i was listening to your previous slot. you guys missed the really sporting event around the world over the weekend where manchester united tore apart in manchester yesterday. global show. you guys have to focus on these things. >> you know what, thank you for mentioning that. it was an nbc -- it's working out well. thank you. >> i know. annoyingly, it's helping the currently owners of manchester united far too much. that's another subject. >> yeah. >> so, to answer your question. i think there's a bit of a perfect storm going on for you in equities really.

something i kind of thought could be the case. you guys i'm sure wouldn't remember it but earlier on the year when i said that i believed in order for the global equity rallies to be sustained, we had to shift to leadership from probably china and the u.s. and china and new york but not the u.s. and that's kind of what's happening. in european case you guys i'm sure discuss it so many times the weakness of the oil and the dropping oil prices and all on top of qe all related to qe. but importantly, i think the thing that is creeping in. one or two of the proriffural are showing more and more signs of benefits of structural reform. utally is really the one that is joining the concept most recently with more and more people going more optimistic about italy. i was at a big event in italy a few weeks back and i was really struck by the very positive mood about business people not from

finance people. haven't seen that in years. we're starting to see it come through the data. i think there are several reasons why the growth is so strong, to be honest. >> i see what you're saying now. number one, you talked about the structural reforms. that has nuthing to do with qe and then you're looking at qe not as a way to drive interest rates down not even to negative levels but as a courtesy basement tool, which is obviously, bearing fruit right now. when you look at it that way, i see what you're saying. you're absolutely right. >> i think that's the thing that is really going on. and, of course, in a global situation, it's not really a net winner for the world because, in that sense, europe is probably benefiting at the u.s.'s expense. again, i said to you guys a bit more recently and since then it looks more likely. amazingly, it looks to me right now as though q1 gdp growth is going to be stronger than the u.s. europe's benefiting from the

dollar strength. and, of course the u.s. is certainly suffering to a degree from it. and that's almost definitely because of qe. the way to think about europe is certainly not in terms of declining bond yields because they were pretty low in the first place as you implied with your question. >> when i look at it the way, but also timing too. europe has been you know been sort of not the place to be for so long. suddenly, it is -- so i mean right now it's probably not too late, jim. in your view the stock market here is at all-time highs and you still have room left in europe. would you really emphasize europe if there is a way for a u.s. investor to to that and maybe hedge against the further decline in the euro? would you say take a lot of money and put it over there and take it out of this market here? >> i mean i think the timing is also quiet. i think there was a bit of evidence of some parts of europe

benefiting already. so qe came on top of some modest evidence that things were picking up. so i think it's a bit dangerous, if not crazy to describe it all as being a quick impasse of qe. not that you can underestimate the importance of lower oil prices for developed countries in general, but for europe in particular. a lot of things going on here. so long as the euro doesn't make a big recovery and who knows. i've spent far too much of my life guessing what exchange rates is going to happen. i think it's not too late for investors to still invest more in europe relative to the u.s. and link to things going on around the world the past week. the big mna stories are european focus and not so much longer the u.s. >> so what if yellin loses her

nerve. does that mean that the euro starts going back up? you think she's -- i don't know does she do june? that will make the dollar even stronger and the euro even weaker. what do you think? >> in my judgment. in my judgment june is off the table. i think if you look at the last couple of months worth of data in the u.s. only some of the weakness can you describe ascribe to the weather. and i think there is evidence that the dollar's strength. you look at the latest factory orders and durable goods, in particular, is having a bit of a negative impact. i think the feds based on the way that they're approaching things, is going to want to see a lot more evidence that this isn't kind of new weakness. i can't say on their criteria i can't really see the case for june. i think if we saw the next month with data the same as the last month, maybe september is off the table, too. given how the fed's approaching it. i quickly add that one level,

i'm not sure why the fed has this criteria because it's not clear to me that the u.s. really needs emergency low rates any more for any purpose. but getting away from them needs to be linked to certain criteria. the criteria the feds have chosen is not happening. i thunk june's off the table. >> bill your thoughts on that? >> i think june is probably off the table. but i also think as we get later into this year and jim said he thinks even september is off the table. you then get into it. i know the fed is independent and the fed is not political and doesn't act. but you then begin to get, you begin to get into the election cycle of the presidential race. and you go back to 1992 and a lot of speculation that the feds should have lowered rates during that president bush 41's re-election. and didn't. they thought it hurt him. you go back to 2000 when rates probably should have been cut

and they weren't during that election. and it's suddenly after the presidential election you had seven cuts in you know, one even before 9/11. i think as you get later into this year and they'll pull the trigger on this. i think they're going to get into a real box come next year. yeah jim. >> all right, joe. whether you have bill to look and throw an idea and get bill's reaction, you know if you guys also recall if you go back since '08 i kind of thought the u.s. would go through a period of surprising people. positively with the big improvement in the current account. help by improvement of u.s. manufacturing on this drop in oil prices that has now happened. but i now find myself worrying slightly. this positive story about the u.s. isn't going to last and certainly in terms of outperformers. the u.s. can't cope with an economy being so dependent on the consumer again, as it was

pre-'08. and in that regard i think the dollar's strength is something that at some point the u.s. will probably have to discourage. as difficult as it is for washington to do though. but love to hear bill's reaction to that given his past life. >> well, i totally agree with you, jim. i think there's a lot of false expectation of how good the economy is right now. i think you'll see out of this week, especially, some of the earning's reports as what is really going on with the economy. i think the fed's got a real problem. i think they put themselves in a box and, as i said politically, as they get later unin the year and a big move by many people in washington, especially the tea party people to bring the fed more into the political game and do audits and have a greater oversight of them. which would be terrible. on the other hand, they don't live in bunkers and they know there is politics going on. if they don't do anything soon i think it gets very hard for them next year and then to try

to sound as though they're not political. on either side. all right, thank you. was there a score in that game yesterday? were there actually goals scored? that's always helpful. >> there was, i was there live. it was four manchester united and city managed to scramableble back with two. jim o'neill, thank you. appreciate it. we'll see you soon. coming up when we return a doctor's appointment on your wrist. that's the idea behind the health of a new app on the apple watch. the company's founder joins us on the set, next.

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that's what i'd like to do. welcome back to "squawk box." one of the first health care apps doc now connects users with doctors by hd video givepinging a new definition to health care. you did not bring a watch. you are not allowed to bring a watch. >> no watch. but it's coming up very very soon. >> tell us how it works. >> you swipe the phone and there is a doctor there. nothing else.

>> a real life doctor. >> hd video. you see them on the phone, immediately. >> why is that better than just doing it right on the phone? >> it's faster. no need to open up the phone and put the finger and turn on the app. it's like literally you tap and swipe and the doctor is there. >> doctor of -- >> it's a used license physician. we have 68,000 doctors. >> sits there waiting for the swipe. >> 68,000 doctors in our network. a doctor will be there available for you any time anywhere. >> are they sitting in call centers somewhere or in their own office doing this in between apointments? >> this is a technology that we developed. doctors all over the country and 4,000 cities and towns across the country and they're available. direct them depending on where you are where the patient is clicking on the watch. >> i might get any one of those 68,000. >> yes you'll get one of the 68,000 because people want to

get access immediately to doctors. and it's affordable. >> how much does it cost? >> $2.99 a minute. you don't are need to have a subscription in advance and pay in advance. just $2.99. >> how is that worthwhile for a doctor? >> it is. they're available. they're taking time that is otherwise down time. >> in terms of the quality of the doctors -- >> sure. >> i have a doctor, dare i say on park avenue who doesn't take insurance and charges through the nose. he's a fantastic doctor if you're watching. i can't imagine that he is going to want to be and i think of him as one of the great doctors in new york city. i can't imagine he would want to be on this service give on the economics of his business. if you're somewhere else in this country, it's a different story. are you going to be getting doctors like that onboard? >> of course. we have 68,000 doctors. some of the best in the country. you can find them and see who they are and see their profiles. what you can understand is it more than $120 per hour for the doctor himself. so it's not, it's really

significant money for the doctor to do that, as well. they're just doing it minute by minute. there's no down time ask no form. >> $2.99 to me doesn't sound like it's enough of a doctor's time. if i have a three-minute question. how much do you take off that? >> they need to do it at least five minutes. we need to provide care. we need to listen to the patient and see the doctor. >> so last week some of the viewers may know i was sort of under the weather. joe made a thing of it. i thought maybe i needed zpac and i didn't end up getting it. trying to do it on my own. tried to get rid of it on my own. >> how did it work? >> totally resistant to anything we have here. >> if i got the doctor up on my watch. would thus save me the trip to the doctor so he could prescribe the medicine over the phone? >> the beautiful thing about it these are physicians in good standing. they can prescribe medications on the spot but just the

beginning of the process of care. so, just to emphasize. when you tap the watch, see the doctor, you're at the beginning of a process and then you can see them after that on health tap and real care if you want it on the app and it's continuous care. >> does this look like poison ivy? >> you can swipe and show and show them what it is. >> do you get to grade the doctors? five stars, four stars, no good. they get kicked off. >> rate one to five stars and you can also -- i mean, come on. national gives me the control to choose any car in the aisle i want. i could choose you... or i could choose her if i like her more. and i do. oh, the silent treatment. real mature. so you wanna get out of here? go national. go like a pro.

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a brand-new episode of "secret lives of the super rick" some of the most elite security in the world. robert, tell us about it. >> good morning, becky. highly trained and they learn three languages and cost more than $200,000 and they are dogs. or more precisely, executive protection canines. take a look. lily, yona and juna are extremely rare very expensive and can turn from adorable to vicious in a split second. these european german shepherds are bred and trained to go from best friend to worst nightmare in a single command. the price tag on lily $80,000. but it can go much much higher. >> the most expensive dog we ever sold was for $230,000. there's a show in europe, you can equate it to sort of the

miss universe pageant. julia placed in the top 50 dogs in the world. >> reporter: these dogs are also trilingual. understanding a combination of english, german and silent hand signals. >> business growing rapidly for harrison canine. the newly rich from overseas often prefer dogs over body guards. harrison canine sold all three of those dogs right after we visited. >> you can't bribe a dog. that's what they all say. >> not even with meat? >> not the right dog you can even bribe with meat. they're too mad that you're even there. >> but they love the people they protect. >> unbelievable. >> unbelievable. greatest dogs. >> they can go from kind to vicious in one word. >> all right. looks awesome. >> that's neat. you know alarm. when you have a dog, anything out of the ordinary they have -- it's almost like they why wouldn't they have a sense,

their smell is 1,000 times as powerful. they know how to find their way home. >> work better than the alarm system in britain which didn't alert the authorities to jewel thieves. >> work better than secret service agents also. >> that's true. nobody wants to get the idea of a painful, you know being devoured by an animal is something that no one. their teeth, second only to rot wilers in the amount of pressure. >> is that right? >> all right. thank you. >> thank you. >> congratulations. >> come over and visit. >> call first. >> 10:00 p.m. eastern time? >> 10:00 p.m. if you're not afraid but they don't like fear. they can smell it. coming up a new look for ge after the company announced it would sell-off its finance

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if we can expect more of these types of moves from big business. you may want to keep your watch on for a few more months. apple has a backlog of orders through june. we'll talk to an analyst about a delay and what it could mean for the company's bottom line and what impact it could have on watch sales overall. hillary's run for the white house. a former senior adviser joins us to talk about what she brings to the table and what it could mean to investors. the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york. this is "squawk box".." something some serious market activity today. welcome back to "squawk box" on cnbc this morning. i'm joe kernan. we're less than 90 minutes away

from what could be a disturbing session. down 31 points on the markets and the futures right now are down 3.5% on the s&p. getting worse as we continue to play this music. let's check out the markets in europe. quickly. i haven't said anything about the music in a while. i have not. i've been a good buoyant. france and the ftse and can you do it. apple taking nearly 1 million preorders for its new watch in the first day of sales. that's according to the research firm slice intelligence. we'll talk to gene munster in about 15 minutes. san francisco fred president john williams said the risk of something derailing the recovery once it raises rates is declining. points to an improving job market as a new reason. earnstone young find that the corporate deal appetite is hitting a five-year high. 56% of global companies polled say that they intend to make

acusitions in the companying year. joe? a few stocks on the move this morning. janna partners is urging qualcomm to consider a breakup among other changes. "wall street journal" said they want jana to look at spinning off its chip unit from license patent unit. united health care. upgraded. i need, you know i need a list. nike visa. visa. >> travelers. >> apple. >> oh, my gosh. that's hard to get used to. >> we're talking about united health care. downgraded. i'm sorry, upgraded. that would have been a big mistake. membership growth at publicly traded health care company supports a higher multiple. and abbvie and the analyst points to optimism about the drugmaker's acquisition and concerns regarding humira and

its help titing c drugs are already priced into the stock. general electric rethinking its business anounseeing plans snnounceing plans to sell-off its business. the big question now is could other major corporations take a hint. harry wilson is here and joins us and the chairman and ceo. but, do we think this portends something else in a larger ways in terms of insurance companies that want to get out from this designation, which is one of the things that ge wants to do. something that banks want to do. and jpmorgan should be smaller. you think it happens. >> i think a couple things. this is a trend that is going on for a long time. ge should have been spun out or sold out years ago. >> when? >> post crisis. barkley has been talking about

it since 2009. not way back then, but certainly the last year or two. many ways ge is late to the party. not a new phenomenon. that being said i think you're seeing the increasing effort increasing amount of activity like this. the qualcomm news another example. and so you're going to see more and more of this i think continue to evaluate the portfolio portfolios. one of the more interesting situations, you have a guy who built up and now devesting a majority of the brand over the next couple of years. so you're seeing more and more of this across all sectors of the economy. >> small is beautiful. big is not. >> i think focused is. it does not have to be small, but focused. the notion that size for size is sake. that didn't make sense once upon a time. >> does that not surprise you if it does not come back around. this is the weirdest pendulum

swing. in favor out of favor. >> part of the nature of capitalism. you have the conglomerate era of the '60s and '70s and now it's swinging back, again. so, you'll see this over long periods of time. i think, you know much like medicine, your last segment. modern management signs continue to improve and things makes much more sense. the notion that you should stick to your competitive advantage is a sensible one that should always prevail. >> can i ask you, do you think there's much made of the fact that the regulators and the whole idea of them being designated. do you think if that had not happened, do you think they'll still be doing this and should they have done this? >> that's a great question. if they had not had the issues i think they would not have spun it off. at least that's my understanding from people i talked to or close to the situation. that a big focus about it they have a huge amount of staff

dedicated to compliance issues and bleeds into their industrial business which continues to do well. it seems like metlife taking extraordinary steps in the last couple years to try to rid themselves of the designation. >> they are doing it through the court. they're not deciding -- >> but they also remember, they sold their deposit business to ge capital, ironically enough and also sold off another part of the business. the mortgaging service, the gp morgan. >> within the context of financial services do you see firms looking at this example of what ge did and say, you know what we'll shrink down? >> it's harder. >> still hasn't happened. >> you think about those, deposit funded banks, i think it is hard for them to escape the designation. a question if you're goldman or jpmorgan and you want it try to escape it. in their case given their history and the size of their operations, i think it's very

difficult. i don't think they have a credible path. >> do you think the designation gets added to other companies that we haven't thought of yet? meaning, there's black rock, which is now a huge asset management and larry fink would say there's not that risk and they control $4 billion and black stone is almost its own sort of investment thing. do you think the government will start looking in the shadow banking business if you will. >> politically or economically heads that direction. obviously, general regulators are anticipate aing the nexting the next crisis. that's one issue out there. as a result of that i don't see them creeping into other large asset managers. i think and i think those firms are focused on trying to avoid any steps strategically that will bring them closer to regulatory oversight. >> you mention p and other

conglomerates that are low hanging fruit to be split up? i'm sure you talked to activists who said they want your help trying to activate them. >> a lot of firms very successful at this. couple things. one is a lot of this has already been done. as we talked about. some conglomerates that managed to escape this pressure because of good performance, a lot of respect for their leadership. hathaway is an example. a lot of businesses and they make sense together persist. united technologies and illinois tool work and the mayor may not make sense in the long term. then you have some other businesses that are interesting that are not necessarily conglomerates but more like ge where the environment has changed. the competitive environment has changed and the business makes less sense. xer ox is an example. a great services business and it is growing and long-term contracts and they have a legacy hardware business that is not a

good business, shrinking. not much anyone can do about it. does not make sense for the services businesses to be clouded by the hardware business. >> put xerox on your list. i think i just heard something. >> those businesses that are conglomerates with parts that are giving a pass either by performance or management or companies where the competitive environment has changed and they no longer make sense. >> let me ask you a broader question. at the top of the hour and ewe also said it in the 6:00 hour we reported the old ernst & young saying that ceos in america will do more transactions than ever before. a very high percentage of them. do you look at that as a barometer that things are great or do you look at that as a backward barometer that suggests we are in the, if not the back half of the game -- >> the seventh inning type barometer. takes a while for corporate executives to get confidence

after coming out of a crisis and understandably so. and, in particular, given the recovery we had post 2009. i think you'll see, so pretty late in the game. and i think there are a lot of other factors for example, the strong dollar helps american companies and there are factors like that. you've already seen the first quarter, i think the highest level of mna in the last five years and the second quarter has been starting off with a bang between the shell deal and the heinz deal. so, i think the combination of those two things suggest -- >> chuck used to say, you got to dance while the music is playing. how long does the music play for? >> where wish i knew. it's hard to tell. obviously, a lot of potential foot faults out there and geopolitically economically. it's hard to tell. i'm personally cautious. i don't think there's an imminent downturn coming. >> were you part of that, what

happens, no a joke about the london thing to be done. it didn't work. >> the diamonds. >> the diamonds are forever. nice to see you. >> good tasee you.o see you. >> thank you. >> it's funnier when you do it. >> it's not funny when i do it. i agrooe. >> you have more experience doing it. when we come back this morning, demand for apple's watch throwing the company a bit of a curveball. some buyers will have to wait until late june or maybe even july to get the device. how will tight supply affect the company's bottom line? we'll find out, next. later hillary clinton makes it official and then hits the road. her first campaign stop iowa. can she win the white house? we will ask one of her former senior advisors in just a bit. "squawk box" will be right back. ...and takes the wheel right from your very hands... ...this isn't that car.

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welcome back to "squawk box." nothing funny about the european markets at this hour. oh good. you missed this becky. this is we were playing german what is this called? euro -- >> now is the time when we dance. >> you heard of craft work.

famous german band. we played it last week. anyway, there is the, we're going to use this the audio guy is going to keep this right at his fingertips. >> i don't like it. >> do you feel like you're in berlin smoke everywhere dark night club. >> here we go. let's talk about apple, everybody. receiving nearly 1 million preorders in the u.s. for its smart watch. research firm slice intelligence says that buyers spent an average $504 per watch. let's check in on the weekend of the watch with gene munster. senior research analyst and he has an overweight rate og on the stock and $160 price tag at target. gene, what do you think? we heard about some of these outside companies and we have not heard anything from apple. but do numbers like that sound like they make sense to you? >> they do. i mean keep in mind that the wearable market has been ice cold for everyone else. so, for them to do a million, they could probably put an apple

logo on a tea cup and sell more than a million. that seems like a fair number. they legitimately could have done that. 1.3 million units globally. >> if they could put an apple logo on a tea cup and sell it. what do you thing of this particular tea cup? what do you think of the watch? is it worth it? >> i it is. this is probably going to ramp six quarters out here. you'll get the apple fan boys that are enthusiastic and that's some of the demand that you're seeing initially. we'd expect that. the real excitement and ramp comes over the next six quarters as more apps come out and really start to improve the value of this. when we did the private shopping over the weekend, we asked one of the sales people why to actually buy this and they said it is a watch first and second is these apps will come down the road. i think those apps is an important part. easy to get caught up in all the hoopla around this launch and you have to look at this in the

context over the long haul and a lot of reasons to be optimistic about this as being a big category for apple. >> watches are already seem to me like a market that has been severely dented. i wore mine this morning and i put it on intentionally and i probably wear it afewfew day days than i don't. this morning i've seen numbers on movada and fossil based purely on what they've seen for the strong demand for the apple watch. does this seem like it will disrupt yet another different industry? >> it definitely is. i don't think there is any question about that. i agree with the trend that people have been using their phones to tell time but you can actually add value like we talked about to something on your wrist i think that makes it incrementally better than a typical watch. as i mentioned apple is really pushing this design side of the watch. they really want to go after the people who are not as interested in technology and just want a nice watch. i think that point is something that is more disruptive to the

traditional watch players. >> gene do you change your numbers based on what you've seen this weekend? basically selling out of the supply that they have. >> the supply it was super tight. just to put it to answer your questions. we haven't changed our numbers. we're at 2.3 million for the june quarter. i think those numbers are too high because the supply is so tight. we noted that five minutes after the preorders started, which was midnight pacific time on friday morning, we started to see some push out times into may and as you mentioned, we're showing june and july for most of the watches this morning. so, that's got to impact the street numbers. won't impact our numbers, though. >> overall, this holiday season i can see a lot of people wanting a gift like this. something in the 300 price range. we had an analyst who pointed that out earlier. you don't think it is this holiday season you think it's the holiday season after that. >> it is. if you go back and look hus tor historically. the average person isn't as tuned into this as we are and it

takes a little bit of time to realize the virtus of these. probably holiday of 2016 when this really goes vertical. >> gene, thank you so much for joining us this morning. >> thank you. by the way, folks more on wall street's view of the apple watch demand available on cnbc pro. coming up more from our guest host and former white house chief of staff bill daley. and later one crazy night, kanye west giving a free concert and did something pretty wild with his fans. you'll have to keep it right here to find out exactly what happened. the video here in a moment. we're back in a moment.

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let's turn back to our guest host bill daley is at argentiere capital. >> we should also say former white house chief of staff and also former commerce secretary under bill clinton. we could talk more politics, if you'd like. would you like to talk more politics? >> it's up to you. >> joe emay want to talk more politics. >> well ask, i was going to go with elizabeth warren but go ahead. >> elizabeth warren. where were you going to go?

>> you weren't listening earlier. we talked. he said no democrat really seriously, thinks that -- >> and i pointed right at you. i told you he would bring it up. >> i just don't see it. >> please run and win. win the nomination. >> i do not see any, right now, changes, but that may be a commentary on the state of the democratic party, also. i don't see anyone giving hillary a challenge in the primary. >> i won't out you that you said that a lot of people like her because she wants so much more regulation because the average guy out there wants even more regulation of financial sector. >> we probably have already overshot? have we not? >> have we overregulated? in some areas, probably yes. i don't think you can say a blanket yes. >> in financial service.

>> they didn't get rid of some agencies and streamline them. i don't think you'll see any great move that's realistic. >> do you think the republicans can run a rand paul or a ted cruz or do you think that they need to once again -- >> well as someone who would like to see hillary win, i would like to see cruz or rand paul. >> you thing they would do -- >> see we don't know whether you're just saying it. republicans don know ss don't know if you mean this. >> when i speak to you, joe, i mean whatever i say. >> so you think bush. you would prefer bush not to run then. >> i think bush is a tough candidate. i think kasich runs from ohio he's a tough candidate. the fact of the matter is the country is divided. either both are going to show up. the republican nominee -- >> wall street very excited. i would say a lot of people on

wall street are excited and will back hillary. you're backing hillary. how does that play against her attempts and efforts to distance herself from wall street? >> look it's -- >> how is she going to do it without upsetting the people who are going to be writing her checks and at the same time, capture the popular -- >> president obama has done pretty well with wall street as far as contributions. the democratic party has overall. but i think -- >> obama did the first time the second time not so much. >> still doing pretty well with people in the broader financial service. maybe not from the big banks that are headquartered here as well as he did with coleman but still gets a lot of money from coleman partners. what she has to do is speak to the average person and talk about the economy, not only wall street. but she has to talk about the broader economy. and when she, obviously, is for solid regulation of the financial service sector. we don't, another situation that came up in '08 and the impact

that that had. but hillary clinton has a long record and one that -- and i think the big attribute for her is that she will be able to get along with people and on the hill and do a deal. she understands that to get a compromise compromise, you have to work at it. she will work at it. >> in contrast to some other names we won't mention. >> a lot of people in politics will not compromise. >> all right, bill. tip toe around. there are no egg shells on this set. you don't have to ebe careful. >> bill is going to be with us. >> nat willthat will be a big switch, you're right. when we come back this morning, hillary clinton announcing her candidacy for the democratic presidential nomination. her first stop will be iowa. can she win over voters? we will hear from her former senior adviser, next. right now as we head to break. look at the u.s. equity measures. dow down by about 30 points and

s&p future off by 3 and nasdaq is slightly positive.

welcome back to "squawk box," everyone. let's take a look at some of the stocks to watch in today's trading. pandora is rising in the premarket trading coming after "wall street journal" spotify is close to a funding deal that will value at $2.8 million. to gold producers alamos gold

and aurico gold. that deal valued at $1.5 billion. from buy to neutral. during a period in which the stock's advance has stalled. rapper kanye west jumped into a lake at a concert he gave and dozens of fans followed him into the wattperper. he was performing a free concert and towards the end of the concert called out to fans who had been watching to the other side of a shallow pond. swan lake west jumped in the water and fans flocked to him. kim kardashian tweeted this morning i got to rock out with everyone in armenia last night here. so, there you have it. there's no like electric guitar players. >> want the whole band to follow. >> there was like security in

the water? here how did that work? >> sharks you mean. >> german shepherds. >> yeah. all right. well we'll move along here. new report this morning gives airlines low marks for quality. phil lebeau joins us from chicago's o'hare airport with the latest details. hey, phil. >> hey, joe. this is the airline quality rating that has been coming out for 25 straight years and this year the results will give the specific airlines in about an hour, but this year the overall headline is that the quality of airline service has declined yet again. basically seems like what we have is two worlds of airlines. great for investors, not good for those who are flying. all four measurements in this survey they all went down. this is the worst rating in terms of airline quality service here in the u.s. since 2008. we talk about the four measurements that make up this study. take a look at all of these and how they performed within the last year. consumer complaints up 17%.

on time flights down 2%. there was a slight increase in the number of people who were denied boardings or who were bumped from flights and mishandled backmishand baggage that was up 11%. further coner foriferfirmation that this airline service is not working for those who are flying. >> they just seem to have not gotten their act together. there is a lot of consoldag and a lot of mergers and a lot of turmoil and i think that's playing itself out for the customer to actually have a poorer experience when they do fly. >> and, again, we've talked about the two worlds of the airline industry right now. it's not good for a lot of people who are flying. they are not happy about being crammed into planes and having to pay more in terms of extra services. if you're an investor boy, has this been the place to be over the last three years. look at the airline index and trailed off over the last three or four months and the runp that

we've seen for airline stocks. the bottom line is this guys. the airlines are maximizing profitability and as part of maximizing profitability they have limited capacity and that's irritating a lot of people who are flying. well, guess what that's not going to change any time soon. again, we get the specific airline rankings coming up in about an hour we'll hold this for you as soon as they come out. guys, back to you. >> were kids in first class like babies, were those any of the complaints that you noticed, though? >> i didn't go through all of the complaints to the d.o.t. joe. but i can ask specifically if they are. >> i'm not sure what the right answer is. >> blaming consolidation on some of this. >> they're actually profitable which would be nice to have a profitable airline. >> not blaming consolidation on better service. every time a better service. >> how was the flight over 15 hours? >> 15 hours.

>> any kids in first class there or back? >> i think actually there were but they were like 9, 10 years old. they were older. very quiet. >> your kid. we were solo. grandparents hung out with my kids. >> there you are, again. no problem on the way over there? >> no kiddy problems. no kiddy problems. coming up next long-time clinton adviser ann lewis find out what she thinks of hillary's big announcement and the quickly growing 2016 presidential field. we'll talk about it when we return. t a trade idea about, say organic food stocks schwab can help. with a trading specialist just a tap away. what's on your mind lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move wherever you are. and start working on your next big idea. ♪ ♪

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welcome back to "squawk box" this morning. check this out. a man's home explosion caught on tape. happened in buffalo, new york. started with an underground electrical fire. smoke was pouring out of man holes causing three explosions and the force of one blast sending the cover about 100 feet in the air. the good news nobody was hurt. and secretary of state hillary clinton announcing and senator her run for the presidency. joining us now, someone who has worked closely with secretary clinton through the years. ann lewis a former senior adviser to both bill and hillary clinton. it's great to see you. thanks for joining us this morning.

>> glad to be here. >> do you think, what we're hearing, ann, is that there are certain things that happened last time around that want to be avoided this time around. i don't know necessarily, you know, whether that's true. would you, if you were advising her on how to run, would there be specific things to do differently this time? >> yes. i'm very happy with the way the announcement came out. i think you saw just what hillary wanted to do which was put the voters at the center of this process. it's not about consultants. this is about voters making their choice. what did you learn? if you watched that today? what did you hear? you heard one she's running because she wants to be the champion of working families and small business and everyday americans. and, two, she's out there to earn your vote. those are the two most important messages and i think they got across. >> ann, you were you're familiar with the clinton economic record and, you know all, i don't know whether the

presidency was a partnership, obviously, but she was there. and it was the middle class did well. there was a lot of economic growth, though. there was low unemployment and gdp growth. there was sort of an appreciation for the private sector that -- >> that's absolutely right. 22 million new jobs and we could go on. >> so would you, would you allow her to be pulled left and into this populous rhetoric almost anti-private sector pro redistribution. does she need to do that to win? >> look this is a campaign that is about hillary and hillary's economic policies. i would go back and say. look what she said and look how she chose to talk about what is at stake. what did we see? two small brothers who are starting a small business. we saw a student just graduated college who is out looking for a job. we saw a mom who said okay i'm going back in the workforce. this is about growing the middle class and making sure there are economic opportunities and that

those small businesses get the support they need. so, yes, it will be a very strong economic message. this is something hillary cares about. has worked on. you know i remember when she was first elected senator from new york. and she had this listening tour and heard from people in upstate who are so concerned about their economic circumstance and how hard she worked as a senator from new york to build economic opportunity in that part of the state. >> will she be vulnerable to you know i'm already hearing wall street donations, wall street loves her. things like that. will she have to run from that and, in other words, i think there's two approaches. people say trickle down didn't work. trickle down private sector. we had a trickle down of government. which will she choose? >> i'd say she will choose to be herself. she is smart enough strong enough and knows enough and understands enough about economic policy. both the policies of bill clinton's administration and the challenges that we confront

today, which are different. so, you cannot just go back and repeat the past. you've got to say, how is it we face the challenges that are with us now? what is it we do for small business today that is maybe different from what it was when bill clinton was in the house? what is it we do for the young people who are just getting out of college who are looking around for their job opportunities? that is what she's been working on. she's spent the last several months talking to people who have good economic ideas. she's putting that plan together. you're going to see it as she goes forward. but i think she's given a very clear indication of the direction she wants to go. >> but to set herself apart from her republican opponent. do you think that you think she'll have to stay in sort of the same arena as president obama or could she tack at more towards private sector solutions? corporate tax reform. things that are pro growth rather than redistribution.

can she do that or already have to stay far to the left? >> i'm glad you mentioned some of those republican opponents. i was looking at economic policies and as far as i can tell, they all want to go back. they want to go back to the policies of george w. bush and i don't think that is a direction the american people want to go. they want to keep going the way we are and, again, building the economy, strengthening the middle class. i don't think you do that by dividing people. i do think you have to take economic policy seriously. as you may have seen hillary already said i think it was a recent tweet, for example on dodd/ dodd/frank. we have to keep that financial regulation in place, don't weaken it. what is it we do now for small business? what is it we do now to grow job opportunities? >> what do you think joe suggests there? will it be a replay of infrastructure minimum wage or do you think it's going to be maybe cut down on some regulation that's no longer necessary? have employed you know, an

earnedearn earned income tax credit rather than a minimum wage. anything that can cause congress and her to be able to work together better than what we're seeing right now? >> i certainly hope so. by the way, i don't see a contrast between the earned income as the one of the worst names i have ever heard, it is a really good idea. but earned income tax credit and minimum wage. they can work together, again, to support working families. look, here is what i hear and this is what i see. the campaign is what they call the ramp up stage. you know it's like when you put a business together you start with your business plan you start with your early stages and then you keep growing. in the last couple of months, hillary has been looking at and talking to people specifically about policy and specifically economic policy. now in this stage, she's out there listening to voters togging to them. what are their concerns? what are their needs and challenges and then in the spring i'd say about may, she's going to be ready to step forward and say, okay here are the policies that i'm going to

be suggesting, adapting fighting for as president. >> something you said earlier about things have changed now. there is at least a perception that when president clinton was reelected, he in some way that helped with his approach to the private sector that that helped in the success of his economic aspects of his presidenpresidency. are you saying that that approach at this point because of a different environment that we're in right now, that is no longer the right thing at this point in time? >> no. what am i saying is because now we're in 2015 that saying oh, let's go back to 1992 and 1995 that's not smart. you wouldn't do that in business. you wouldn't do that with any economic policy. >> i'm not trying to go back in time. i'm just talking about seeing the prosperity likely more generated by the private sector and by private companies than by the government. >> absolutely.

i think hillary would say absolutely to that. two examples. number one, she's the child of a small businessman. her dad was a small businessman, world war ii vet and created a small business. the family would go in sometimes when they were short sometimes and they had orders coming in and would help. she has lived what small business people go through. she understands it and has a lot of respect for it. look at her record of secretary of state and look how hard she worked with american business. she brought what she called economic state craft. she would work with companies to build, to win contracts abroad that meant jobs at home. so, at every stanl, the isis somebody who takes the private sector seriously and takes american business seriously. now how do we do this so we're growing opportunity for everybody. >> she will not have a bruising nomination battle. hopefully she won't have to apuz parts of the party that are so far to the left. elizabeth warren or bernie

sander or whoever. but she will come under criticism for her relationship with wall street and the sector. you know it is going to happen. >> i know when you're in politics you'll come under criticism no matter what you do. you might as well figure out what is the right thing to do and the smart thing to do and she's going out there to iowa. she'll be in iowa tomorrow and she's driving across the country. those people aren't going to say right, left. they're not going to use those kind of labels. they're going to say, what can our children do so they have a better chance. that's what she wants to talk about. >> government creates jobs we know businesses don't create jobs. hopefully she won't say that again. i know you wouldn't let her say that if you were still advising her. >> i think we'll have a great campaign because you're going to like these economic policies. >> if she were to be elected, i hope, maybe bill will be the first man and he'll be there pushing the private sector. ann, appreciate it. say hi to your brother.

he's on all the time. >> i know he is. he likes the show. when we come back another furious weekend at the box office. we'll have the details, next. plus monday morning strategy with jim kramep. find out what you need to watch in the trading week ahead. check this out. just a few minutes ago the german ten-year yield dipping lower. a negative yield which tells you why stocks continue to climb. there is no alternative, as jason told us earlier. also check out the u.s. note because and 10 year yielding 10.91%.

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the blockbuster brought in more than $60 million just in the second weekend. that brings the global total to $800 million. it's on pace to become the highest grossing film in universal's history if it passes "jurassic park" comcast is a

parent company of both universal and cnbc. >> wow. good. >> $800 million for the weekend let's get down to the new york stock exchange. jim cramer joins us now. i guess we talked ge. it becomes clear now, totally a -- >> a cheap industrial company, so it makes all the sense in the world. >> and i represented earlier that it was on progressive web sites as this is a huge win for the country and for dodd/frank. is that how it should be viewed? >> no it's a huge win for jeff immelt. what a great opportunity to basically sell bonds. he's selling bonds. i think that's what we would all admit that's the thing to do. i salute them for taking the bold action. i like this industrial company.

what's left has a lot of cash to make a lot of acquisition. we can value it against the emersons of the world and it shows up better. so i congratulate the team. >> i wonder what does ge need? >> more aerospace is always great. there's a lot of these drilling and service companies that are selling at happen of what they were. maybe they bought some at the top, but not a lot. now they can hold it for a long time because they have a great balance sheet. >> the activist controversy gets bigger now, who was it bill george. have you come down on where you are that all activists are created equal? >> i think? guys really have a plan and management doesn't know about the plan but the biggest majority have a plan and management has seen it time and again. it doesn't really work but you know what? the pressure from these hedge

funds to do well is causing management to make decisions that may not be good for the long term and cause reasons to sell. >> would you rather be an activist or raider? >> i would rather by devin blank today. >> yes yes. >> kevin blank is my hero. >> you've seen the no texting commercial with george, too? >> congratulations to everyone involved for maybe one of the most fun weekends ever. >> 21 years old, so humble. great. anyway we'll see -- we'll talk to you after the break, we'll have more from bill dailey stick around. "squawk box" will be right back.

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bill we noticed the picture of the president sitting down with the president of cuba. that's a world of difference where people thought we might have been just two years ago. >> last senior u.s. government officials to meet a president of cuba was in 1959 i think, or '58. nixon and castro. i think it's a great openings. it would be great if they get the apple watch and a chance to be connected with the world you understand why the policy was in place in the late '50s, '60s, but for the last 30 years it's been a nonfactor in the world. cuba giving the people a chance to experience open markets and open economy i think would be helpful to them. >> the cuba situation makes more sense to me sometimes than the iranian situation. >> iran is a country of 70 million people it's a serious country, could be a serious

economy, obviously oil makes for them to be rather powerful along with an aggressiveness. >> that's why i feel much more comfortable sitting down with cuba. >> in my mind it's been strictly a political issue in florida because of the cuban-americans. understandable, people were chased out, the lack of human rights there, the president noted it again. they also have a serious leadership change. at some point even the castros have to -- >> cede? >> -- pass on or pass on. it's always been castro as long as we've remembered. i think it's a good thing for our country, good for our relationships with it is rest of central and south america. cuba is a small part of the summit but our relationships with mexico brazil other central and south american countries have been impacted by this cuban situation for the

last 50 years. i think this gives you a chance to strength are or relationship with our neighbors. >> good for baseball too. >> true. . good monday morning. welcome to "squawk on the street." i'm here with jim cramer. david faber is uptown at 13 demon tore's active investors. he'll -- enjoy the quiet morning. it will be a busy week. oil is up nearly 2% and the ten year is right around 195. apple watch sales, estimates coming in this morning. the story strong