now. ♪ ♪ live from new york where business never sleeps this is "squawk box." ♪ ♪ >> good morning. welcome to "squawk box." becky out sick today. we hope she gets better. let's tell you what's going on this morning. jay z launching a war of words blasting the streaming media status quo. the rapper found a title and he says big companies are spending millions to under mine it. if you are just waking up this morning, let's get you caught up on the markets. u.s. equity futures at this hour looking at the dow higher it looks like it opens up 22 points higher and nas dag 8.5 points higher and s&p looking a little over 3 points. joe, i know he's got this new

service, but -- jay z has been successful because of apple and youtube and all this stuff. >> what is the criticism he's talking about? just the fact that it's not doing as well as others is that right? >> he's trying to move all these premium artists on to his service, some of the other services obviously would like to keep them so there's a big of a scrum going on. >> we're separated here. it's almost like -- >> we need somebody in between us. >> keep them separated. it's weird. you stay over there with your views and we know what they are and i'll stay over there and we'll have a point, counterpoint. >> you are on the left there. >> camera right. all day long we're a business network but there are general news stories that happen and right at the top, i was a little bit uncomfortable. i talk about nepal and i go right to apple, but, you know

there's no really elegant segue to go back and forth, so we'll just do what we do and just excuse the juxtaposition of these stories. here are some of the big stories that we're watching today. now we'll talk apple so i can smile and a little bit happy. because it's a business story and obviously the worst business story never compares to what people are going through over in nepal right now. apple set to report quarter results after the open. analysts are looking for earning to grow 30% over last year. the numbers are absolutely staggering on revenue of more than 56 billion. it's a quarter. 56 billion. >> it's amazing. >> it's absolutely astounding and a quiet start to the week on the data front. we've got services pmi and the dallas fed survey on the docket today but the big story is the fed is the fmoc begins a two-day

meeting tomorrow with a policy decision set for wednesday afternoon and all the related commentary is it june september? you saw some news out of beijing almost a pseudo qe starting to occur in china which you would have never thought. people said they have become a western economy and if you are a western economy, i guess you got to do qe. in corporate news boeing is holding its annual meeting in charleston, south carolina the first quarter results were handily over estimates, can it keep machinists from getting a foothold at the nonunion plant that it has in charleston right now. how close were you to nepal. >> i was in bhutan in the himalayas, they did feel the

earthquake. >> you saw the avalanche video. >> that's incredible. terrible. >> i don't know if you can tell the difference between an after avalanche if you were up there and that it was caused by the earthquake. >> you won know what it is. >> it's frighten to talk about and to watch, but you don't necessarily think of nepal, something that up in the himalayas, but apparently there were plates that were hundreds of years that were unstable. >> when i was in bhutan they talked about -- they have earthquakes -- >> apparently. third century buildings, structures since the third century were lost. >> it's incredible. as joe was saying this is our big developing story this morning. it doesn't have anything to do with business news it's an important one nonetheless. this is the real world here. disaster in nepal. an earthquake now killing over 32 o people i've seen the numbers even higher.

devastating the heart of nepal's capital, kathmandu. we report on the lives lost. >> this is what remains of one of the terms in the square which is the heart of old historic kathmandu which seems to have born the brunt of the quake. the buildings here vulnerable fragile couldn't withstand that 7.9 shaker. it's dusk now and people are gathering in open spaces around the buildings here. they are too afraid to spend the night at home. there was another big after shock here and they are terrified the buildings may yet collapse and they are afraid to go back inside. >> we are establishing shelters for people and especially also providing water and logistics, trying to arrange that people are safe for the night and with food, et cetera.

>> while this area appears to have born the brunt, it's unclear what's happened in other parts of the kathmandu valley in and areas closer to the epicenter of the quake. state department confirming now that three americans died in an avalanche in the himalayas. victims included a google executive, a medic. the google exec was dan freddenberg. he climbed everest last year several of his guides were killed in an avalanche. he was climbing with three other google employees. they are all safe. technology is playing a big part in this story. families and friends worried about people in nepal in that area are turning to a relatively new facebook app called safety check, it asks users in an area affected by a disaster if they

are safe? the app allows friends get notified about their status. google's person finder is a similar tool and some of them were stuck above a certain level where they could be rescued and some have been rescued in the meantime many i don't know how many people are still left on the mountain unable to get down and some are talking to their loved ones. i'm not here and i'm not sure -- it's weird. >> you've seen the shots of helicopters coming to pick people up. it's a terrible story. talking about weird transitions and how hard it is to go from that back to business world. corporate news applied materials in tokyo cite problems getting approval but u.s. anti trust regulators, it was announced back in september of 2013. amat says there's no termination fee for either party. cap gemini is buying u.s. i gate

for $4 billion. that deal has been approved now by both companies's boards and shares in deutsche bank this morning under a lot of pressure. the company posting a bigger than expected drop in first quarter profits. the european banking giant is unveiling details of its new strategic plans today, this includes the sales of his post retail sale today. corrine theeian college operator is shutting down all its remaining campuses and stopping all other operations. the company has been hard hit by multiple federal and state investigations into whether it misled students and investors. corinthian agreed to shut down its campuses. bristol myers squib says

it's experimental drug combination succeeded in a study and it cured hepatitis c in combination with a commonly prescribed anti viral drug. another headline gasoline prices rose about 5% in the past two weeks. the will you understandberg -- lundberg industry survey puts the price up 13 cents per gallon. prices are significantly below where they were at this time last year. let's check on where the markets are. indicated this morning about 24 points on the dow jones. the s&p up 3. the nasdaq continues to outperform as technology continues to shine.

that's indicated up on a bigger percentage basis than the other averages. we'll take a quick look at europe and asia. europe showing some red, but, you know less than a point everywhere percentage point. france down about.7 of a point. and japan, hang seng and shanghai mix with japan down slightly and handing send shanghai up a little bit. oil, piece in the wall street journal today about a lot of investors exiting those who invest in oil. it's short lived. we know about 50%, i don't know what that would be 90 to 45 then you add 22 so that would be -- what would that be 67 with a 50% retrace many on energy. we'll see whether that happens. then check out the ten-year. we'll talk about the ten-year in

just a moment. 1.91%. the dollar with some weak economic numbers last week has been going down in relation to the euro. the fact that 1.08 that's really low with what we've seen in recent years and finally gold which had a horrible week last week is still below 1,200 but up $7 today. in our monday our morning strategy decision the fed's decision will be one of the key drivers this week. let's bring in deutsche bank chief economist and contributor joe lovornia and alison dean and a contributor and consultant at aa dean's advisory. >> that's your name? >> advising myself. >> taper has to do with tapering

qe. that's just now, now it's just an acronym i guess for additional what would be perceived as tightening, one of the things you point out is in the past 20 30 years, you look historically at comments from the fed that have noted a change -- up coming change in direction. you've had really big moves. here is the thing. you point out, you go back and look. they were scary but rates were much higher on percentage basis, the average move you said is 2.28%. at 1.91 what kind of basis points are we talking about? that's nearly as scary because rates are so low. what would it be? >> here's the thing. it's really a shift in market expectations of where the fed is going. so take '96, fed doesn't raise rates in '96. you had a huge back up in rates just because the market didn't think the fed would be cutting rates. these moves actually occur, they

are large and we don't even log adjust. we don't adjust for the percentage change. take the tape ner '13. ten-year yields went up over an eight week from 160 to 3%. even though rates are low, you still have to look for a pretty large move and the super taper tantrum tantrum, i took that from an imf piece that came out earlier. it was their phrase. but they were my numbers. >> is this something that would finally cause us to say this is the comeuppance that we're going to get from all this? like we're wondering now, it's like a free lunch. everything has worked. the measuring has been. we've done all this stuff and there haven't been any negative. some would say the weak economy is all this stuff has been happening. is this when the roosters come home? >> the problem is that with the fed doing qe there's this issue

of whether they are going to reinvest, they have going 200 billion maturing. all these other central bampings are pursuing some same sort of policies the comeuppance may not occur this coming year or the year after. when that changes, nobody exactly knows. i can assure you when the market reprices it will not be seemless it won't be easy and there's nothing yellen will do to keep those markets from changing because the market will be based on its expectations. >> they haven't done it yet either. >> right. i will market it's really been a story about the market coming to the conclusion that the terminal fed funds rate the rate as which monetary policy will peak in the cycle, that rate came down 200 basis points last year. that allowed sovereign yields and emples to rally

significantly. the inflation adjusted rate will implicitly be zero. that's when monetary cycles begin not end. we have no idea when it occurs. >> the other person used to run the fed green says you don't know what the bubble is until it starts bursting. everything has been so orderly so far with the way this has worked. it's so slow and we get so much advanced notice. we haven't raised a quarter yet and we've been talking about it for years already. will it get disorderly? >> i think once it starts to happen, people go into panic mode. >> so even with all of the talk they will still freak out? >> i think because people -- well, there's a lot of talk people will go well, it will just be a little bit and we're not seeing enough corporate growth, i don't think there's that much conviction that's what's going to be done is going to be that drastic and that

significant and so if it winds up being something and the drend is going to be a little bit more i think the markets could overreact. right now, we're not in an environment where anything looks cheap. >> this is arguably the most dovish fed we've ever had to get yellen and the others on board to raise rates, think about the economic conditions to be present to get them to move when they finally do it whatever year it is they are going to move slowly. it doesn't make any sense to me. >> when you get down to 5% unemployment, that still might not be enough they will stay no, we don't have the inflation we need. >> eventually you gel -- the banks are raising capital. you are seeing lending improve. eventually, you get some inflation pressure, eventually. >> you saw the -- i mean if japan's insurers can't get any

yield, that means people can't get yield anywhere. so this 2% rate we have here is attractive to everyone in the withhold world, right? >> this is one of most attractive yields. >> i saw it somewhere that japan -- >> germany, switzerland. >> but the insurers in japan, how do you run an insurance operation if there's negative yields? you can't -- you know the assets and liabilities don't match-up right, for what -- you need to come here and buy even at 1.9, you need to keep buying our ten years, right? i wouldn't be caught dead owning a 10-year at 1.9%. >> i'm with you on even a bond at 250. >> or even a tax-free at 2.8. we don't have to worry like big institutions. we can put it in the mattress. they can't. they can't just leave it sitting there. xingt this is why they are buying back stock.

>> the buyback should be going into plant and equipment and employees and preparing for, you know, long term. it shouldn't be going -- that's one of reason maybe the economy is not -- >> it's funny. you look at the cbo numbers and the fed stopped publishing this data ten years ago. it's only about 1.5%. there's been no capital deepening in the corporate level. the irony is the weak growth we have actually has the same effect on reducing unemployment as it has in the past. my guess is some day the economy will improve. we'll get some inflation pressure and the market is going to have that aha moment and it will to reprice. we'll be worried about causing financial crisis or contagion because all of a sudden people actually see fed raising rates for the first time in nine or

ten years. allison deans, what are you advising to do with money? >> stock market still looks relatively cheaper but the mark crow top line trends corporate profit growth is going to be very challenging in the u.s. so i think stick with your equities but start moving some of it overseas to europe. the countries where you are starting to see them doing what we started doing two or three years ago, you have better valuations there. the trends are more positive. here things are fairly valued. while it's on a relative basis it's one of the more attractive asset classes to be in equities i think you need to diversify overseas. >> if you were selling your stocks over here and didn't have the wherewithal here would you put it in a money market? >> i would put in an a money market. i will go long term municipals.

it's not a great interest rate. >> some people say this could be a decade that was the other article over the weekend about the global savings glut of everything, that it's never -- it's going to be like turning around a cruise ship. it's going to take ten years are of rates like this really? there's other people who think we've got wamg growth this year. >> when interest rates go up, the bond are going to come down and people on fixed income are going to freak out in their minds. >> they definitely will. if you look at the flows, fixed income versus equities you've gotten about a trillion dollars into fixed equities. people will definitely freak out. you've got markets that are much less liquid than they were before because banks don't have the warehouse in the inventory.

then there's going to be people on fix income and it's going to blow the other way. thank you, guys. >> you are welcome. >> appreciate it. mplings coming up we're going to talk about hackers, remember news of the russians hacking the white house? it actually turns out the situation may have been worse than first thought. officials now say hackers actually read president obama's unclassified emails. we've got details about that. here's a look back at this date in history. s e financial noise financial noise financial noise

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. a story in today's wall street journal grabbing attention this morning. farma companies are buying other companies drugs that are under valued and raised its prices. it's duty is to shareholders and to maximize the value of its products. what do you think of that joe? are you okay with that? >> it's the way the market works. >> it's a free market thing. >> well, you know is it -- i don't know enough about it. is it a drug that's under patent protection at this point? >> yes. that's why they are able to do

it. procter & gamble planning to significantly cut the number of ad agencies it uses. the story is notable because procter & gamble is the world's largest advertiser. they cut about 14% of their ad budget earlier this year. >> we'll talk p & g later today. >> you are going to talk washington. >> we can talk a little. i'll tell you a couple of the president's jokes i like the best. i didn't like them all. in washington news officials now say that russian hackers read president obama's unclassified emails. hackers breached the system last year and also got into the state department's unclassified system. at this point, hackers do not appear to have access the servers that control message

traffic from the president's blackberry. >> my understanding they only got the emails they got other people's emails who received his messages. >> my hope is i don't think hillary is going to give us the emails on her server. maybe the russians have all of her emails and we can get a look at what was going on from her email. boy, with all this stuff that's come out recently there might have been a really good reason to have your own server don't you think? after all this stuff? >> you have your own server yet? >> what any favorite thing is over the week was washington george stephanopoulos grill the author of a little -- hillary book. is that fair that he's -- >> he's now a journalist. he's doing good solid journalism. >> it seems weird that he would be in a position where we assume he's objectively conducting the

interview -- >> and he was. he gave him a hard time. >> right. he gave the guy a hard time who wrote a negative book about the person he used to work for. >> the point is he's going to ask -- >> be a little cynical. i've seen him really ask tough questions on the people on the other side. he's a real tiger. joining us from washington. that tie you had on john that bow tie, it wasn't the formal bow tie. what was the sign on that? it was cool. >> it was a political bow tie, it was my 40th birthday from my friend jill a bramson and that's because my white house correspondents dinner black tie. it's got various politicians on it, designed by nicole miller who does kind of whacky ties. >> was it a clip-on bow tie or

do you need to tie that thing? >> i tie that thing every single year. >> i wouldn't wear that. i would have to look like tom jones, where i would leave it hanging down like that because i was sweating because i was so sexy. >> you know what i think it may have been a clip-on tie is that yellow tie our friend brian steele was wearing at dinner. >> do you not know any better or do you just not care? i always ask him that. >> i think he's trying to push the envelope with all those hollywood people around. >> i think he is. so what -- do you want to talk -- you no he what my favorite joke was? i told andrew it was -- >> bucket list? >> it was from jerry seinfeld. i told you about that. i saw jerry seinfeld four months ago. he said i'm 60 now, i changed the b to an f and anything -- you want to ride a roller defendanter with your -- roller

coaster with your kids that's in my bucket list. he lifted that. >> although i would say that there were some people who took exception to that. my friend byron york wrote a piece on sunday saying that two things about the president's speech one that whole anger sketch revealed a whole lot of anger that the president has privately. and secondly he suggested, i think disapprovingly that the president obama was the first american president to publicly allude to the "f" word for a long period of time in a speech. there are lots of presidents who have used the "f" word quite a bit in private. >> i shot -- -- i just saw a shot to the great loren

michaels. my favorite joke was that the economy is still a little bit uncertain. in fact, i have a good friend who used to earn millions of dollars a year who is now living out of a van in iowa. that was a great joke. >> that was nice. it worked. >> yeah. i'm sure she was just dying of laughter at that one. >> you know, what i think she's still got millions of dollars. >> i think so too. except when they left the white house, when they were penniless as you recall. >> dead broke. >> dead broke. was that the term? i don't know about the knee jerk progressive viewpoint of the world was expressed by her. do you think that played pretty well? >> no not really. i think it was a little -- it seemed like a -- like a routine for kind of a democratic club or

something like that and it was very tilted one direction. she had moments. >> but what you said was ridiculous that the president -- you know you know that there's no way anyone can follow president obama in that setting and come close to him in terms of timing. he's got great joke writers. >> he's got great joke writers but he also has really good timing. he's very good at those events. >> it's phenomenal and that's the highlight of the night, is watching that. i don't know anyone that could follow him and every year it was better. some people thought this was bunch his best. the setting of the -- who cares -- he's demeaning the office of the presidency because of that? because of saying bucket a few times? >> not in my view but people have different opinions. >> okay. they do. >> did you like the angry guy? >> i loved --

>> did you think that was funny? >> i thought that worked. i liked the little transition on the end on climate. >> i didn't like the subject he was deciding to be mad about. of all the things happening in the world, i would think he can be mad about some other stuff. >> what would you have picked? >> i guess the middle east you can't do that in a light setting. maybe the climate change in a light setting is the best place to do it. it is funny, the church of climatology. >> did you have a good time? >> i did. to get between tables it's almost like playing football. you got to block people. it's unbelievable. i think the list of people -- >> selfies -- >> did you fly home on that corporate jet and get home snugled in your bed -- >> i take corporate jets

wherever i possibly can, john. thank you. >> coming up want to be successful? the key could be obsessions. interesting advice from someone very close. we're going to head to the break. we're going to check out the winners and losers for s&p 500. flo: hey, big guy. i heard you lost a close one today. look, jamie, maybe we weren't the lowest rate this time.

but when you show people their progressive direct rate and our competitors' rates you can't win them all. the important part is, you helped them save. thanks, flo. okay, let's go get you an ice cream cone, champ. with sprinkles? sprinkles are for winners. i understand.

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welcome back to "squawk box." this is just the two of us. >> just the two of us. we have things to talk about. >> i want to talk about this real quick. this is eland musk's ex-wife going on cora. do you know what this is? >> is this the one he married twice? >> this is the one he married the first time. this is one of the services where people can posted the question. she goes on to answer the question which is kind of bizarre that the ex-wife goes on to explain. she says you have to be obsessed. this is his ex-wife by the way. if you are not obsessed stop what you are doing and find what does obsess you. it helps to have an ego. make no mistake, you will need

people. don't pursue something because you want to be great. pursue something because it fascinates you, because the pursuit itself engage and compels you. extreme people combine brilliance and talent. if it doesn't drive you competitors will crush you and make you cry. extreme people develop strategies to survive. they find strategies to -- >> i don't know anything about her. is she -- is she talking about watching how eland musk did it? >> i think -- she doesn't say it -- >> she could be very successful on her own. i don't know -- >> no, no she's talking about -- >> elan. >> it's a fascinating read. >> she watched him and says that's what he's like. >> she didn't it say that. that's at least the way it's

being taken. >> you want to touch the third rail of the bruce jenner interview. >> i was fascinated. >> i was moved. it was not a hoax obviously, because he was laid bare and you look at his life in the context of what he was talking about and how early he realized that this was the way that he felt and then we all need to be educated on these things and it took two hours for me to understand completely and i tried to communicate to people that didn't watch it and i realize that they are in a place where if you don't spent the 120 minutes, there's no way to explain it to them basically. >> let's go through the one -- i thought of you at this moment which is to say diane sawyer asked this question of him. i don't know if she asked the question and he just said it. he almost looked as surprised as

i do. >> she did a great job. >> he he says he is a republican. >> she did a great job but at that point he goes -- what she said was the president was the first person to use the word transgender. how did that make you feel? >> well, i'm glad -- i'm guess he's said it i don't like anything that the guy has done because i'm a conservative. >> you are a what what i don't think she could actually say republican. she said you are a republican? he goes yeah. is there something wrong with that? she goes well, why don't you go trying to mitch mcconnell and john boehner and see how they feel about you? maybe i will. neither party has a monopoly on understanding. she doesn't understand the -- there are ways to think about, you know cliched stereotype i

kal republicans. if i were the gop, honestly i would welcome bruce jenner. i had be delighted that he was republican. i would let him speak at the convention because this party has got to move into the 21st century. >> are they ready to do that? >> no i don't. that was the other thing i was going to talk about. corporations have figured it out. the gop is too stupid to know how to sell themselves at this point in certain ways. i think they keep losing or they can be inclusive one or the other. >> i'm with you on that. >> coming up. a new book shedding light on the first all army, all female team to serve and die alongside special ops in afghanistan. the story when "squawk box" comes back.

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women in the war zone an untold story, ashley's war is a new book that sheds light on the first all army, all female team to serve and die alongside special ops in afghanistan. author gayle zemak lemon is a senior fellow at the foreign council relations. special ops which we found out over the weekend. it's a huge part of the current way we do thing. when you are in certain places where you need to be able to

speak to ladies or women, you need women. that's the only way to do it. the women have to be with the special ops, therefore they are almost part of special ops. we didn't know they were trained in special ops. >> it's a story of leadership and character and kourng in action. there were special operations leaders who said weerp missing half the population and our guys need to figure out what's going on in the whole house, not just half the house. in a conservative traditional country we need female soldiers. it was a talent management question. we need people out there. >> it's totally secret when it started out, right? >> yeah. there was a website that said you know here's what we need and there was a recruiting poster that went out said female soldiers become part of history, join special operations on the battle field as they said it was ten years into america's longest war. >> it's still prohibited women from stwanry but they are

basically doing that or they have come close and we lost a historic woman, that's what your book is about. >> it's a team story about courage and character. >> how did you get on this story? >> i was hosting an event, this marine that reflects the story of marlene ashley white. and she died on a night mission in afghanistan in 2011 i said wait, what was a woman doing on a night mission in afghanistan, and who were these people what were they doing there and why don't we as a country know who they are, because it seems to me that's the story we should -- >> how easy is it to get these people to talk because it's always complicated when you are trying to do stories like this? >> there was nothing easy about it, but i will say it was not easy because nobody thought they did anything exceptional or worth remembering, they didn't want their teammate forgotten.

that's why they spoke to him. >> what's the current situation with women in special ops? they may make the cut to become marine troops. >> women still cannot become rangers, s.e.a.l.s delta, by january 2016 that zig will be made whether all jobs will be open to women or an explanation as to why they don't. army ranger school opened to women last monday. 19 women started. they have the same wash-out rain -- rate as men by now. >> how long is a walk through? >> it's three phases two months. >> how many push-ups are you able to do? >> at least six pull-ups. >> i think you can get six. >> i can do it if you lower the bar enough. bend my knees. didn't you see that that's in

one of those movies where you see the guys -- i think it's fascinating. you were pimco, you are a bona fide -- thank you very much for having me. >> the book is called "ashley's war" today's stock to watch is apple. today's big earnings report we'll talk about when we return. there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy.

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welcome back to "squawk box." apple reporting second quarter results. they'll do that after the bell today. some say it boils down to one metric. good morning to you. joe, we got the name right, you okay with that? >> practiced chris -- >> the chris part was the hardest part. >> could be complicated. >> you say iphone sales are the most important thing to watch this afternoon. what is your number? >> we're at 57 million for the first quarter. >> that's higher than most analysts are anticipating. >> i don't think that's a terrible surprise to people. people know iphone has been successful now. when you go into the june

quarter, now, that's usually the lull quarter between iphone launches. that will be down. that is the quarter you get the apple watch. we think that bridges the gap between iphone maturing a little bit on iphone 6 and then getting the watch in. >> what is the one thing you're worried about this afternoon? what is the one number you're thinking i'm just not sure? >> i would say mix. one of the things -- >> mix being the mix between iphones and computers. >> mix between iphone 6 and the 6 plus and also the memory configurerations. because apple makes a significant amount of margin depending on whether you get a plus the larger phone is much more profitable for them as well as the 64 128 giga bite. >> which way do you think it's leaning? >> it's leaning on the positive side. >> meaning more 6 plus than you thought. >> more 6 plus and more of the higher memory skews. one of the things apple did is they dropped the 32 gig skew. so, basically, for another $100

you go right from 16 gig to 64 gig and that's been very profitable for them. really right now 16 giga byte phone is very tight. you don't have enough space for that. >> you have a buy on this stock. what do you think it should be? >> $150. >> $150. >> and how much of that is dependent on whatever we see from the i watch later this year? >> not a lot. we have about $3.5 billion of apple watch revenue into next quarter. again, that's good in the june quarter because usually weakest quarter for apple. you have something to add to your revenue to the number. in the grand scheme of things it's not tremendous on a full year. >> your number dependent on any kind of new great product you never heard of? tv coming something magical? >> at this point the stock is reasonably valued. you know they're doing well. the other thing we didn't mention is return of cash. that's one of the other things that they'll talk about on this conference call is how much

cash. they're generating a lot of cash. over the last year, returned 0% of what they generated and a good chance they'll return more. >> we have to go. would you like to buy anything with all that cash? >> i think at this point they have so much they can afford to buy a lot. at this point, probably the most is return to us. >> fair enough. chris, thank you. >> thank you. coming up this morning's top stories, plus the future of media. our special newsmaker this morning aol ceo tim armstrong. saw tim at the correspondents' dinner. he will be on set with us when "squawk box" comes right back.

the death toll rising in nepal after set off avalanches on mt. everest. the latest on the damages and efforts. new digital shows and new mobile tech advertising and media deals. plus making big bucks on two wheels. we're talking motorcycles with incoming ceo of harley davidson. >> not a motorcycle baby it's a chopper. come on, let's go. >> what happened to my honda. >> we have harleys lined up outside on the plaza. the second of "squawk box" begins right now. back to "squawk box" right here on cnbc first in business

worldwide. becky quick is off. little under the weather, but we hope to see her tomorrow. meantime, joe has an update on what is going on. an update in nepal. the death toll from the quake that struck on saturday is now past 3,700. 3,700. thousands are fleeing the capital as the aftershocks continue to hit the area. and food and water shortages threaten the people that are survivors. the death toll is likely taclimb as rescuers establish contact with some of the remote villages they can't get to. at this point the earthquake sparked avalanches on mt. everest that killed 17 people. rescue teams in helicopters airlifted some climbers down to lower elevations. the u.s. state department confirms that three americans did, in fact die on the mountain. the victims included a google executive, a medic and a filmmaker at a base camper for

mt. everest climbers. we'll continue to monitor the rescue efforts and bring you an update from nepal later this hour. did you know this guy? >> i did not know him. >> you worked at google. >> tim armstrong is here and we'll talk with him in a minute. you knew of him. >> i knew of him and saw some googlers this weekend and we talked about it. really sad, tragic event. >> he was there. he climbed it before didn't he? >> never a great segue to business news at this point, but we're going to turn our attention to some headlines. greece working to negotiate a debt deal that would unlock $7.8 billion and bail out money and greek prime minister and german chancellor maintain negotiation. breach of unclassified computer system may go deeper than we thought. russian hackers read president obama's unclassified e-mails. they did get access to the e-mail of people that were inside and outside the white

house that corresponded with the president. they're able to see the e-mails sent on the other side. also, quick look at the markets and see how things are setting up this morning. the dow much higher. 68 points higher and nasdaq will open up higher, as well. s&p 500 looking like it would open a little over six points higher. >> fun to watch the nasdaq now that it got through its old highs. i have no idea what the ultimate target could be. last time remember when it got 2,000 last time? went to 5,000. and now this is this is supported by actual fundamentals at 5,000 this time. this is where the growth is. you have zero interest rates. that's where the growth is and it's like the new world that you're so familiar with. >> how long has the party gone? two, three years? >> i don't know the ultimate level is either. it could be surprising to people i think. the watch list this week, the fed kicks off a two-day policy

meeting tomorrow. fed watchers say that hints about a june hike affirmative or negative are unlikely because the committee will want to maintain flexibility in its policy. there are a couple of key data points to watch this week. on wednesday the first read on first quarter gdp, which i'm interested in. but we're still doing three, really? then on thursday the employment cost index comes out and gives a reading on how wage pressures are beginning to build in the economy. tim's sitting here. >> tim is sitting here and sitting here for a reason. new fronts kicking off this week, the biggest two weeks of the year for digital video programming in the advertising industry. aol paying off recently. video revenue grow by 90% from the year before and their original slate of 16 shows had over 185 million views. the company set to roll out a new lineup of shows tomorrow. and here with a preview is as we said tim armstrong. chairman and ceo of aol.

also doing a recap of the washington correspondents' dinner. you can tell us all the stars you spent time with. >> adorable grandmother. >> you took some selfies. >> i didn't take very many photos. >> coach belichick. >> frank commin russki. >> who you don't want to get your picture taken next to. >> very nice guy. very tall. >> pretty good. you liked it. president awesome. >> from seinfeld but it did. how do you like our digs? >> i was just going to comment. being back in manhattan, how do you like it? >> we're digging it. >> how are you digging the digs? >> you're cooler than we are, you're mid-town. downtown is fun. i did talk to gale and make up who has been with you guys for 18 years. i said gale you guys on set are going to tell me it's great. how is it really at cnbc in the city. she said it's fantastic.

>> check's in the mail there you go. take care of gale for that one. let's talk -- she does your makeup. a lot of reasons you have to take care of her. >> she does what she can. >> thank you. >> let's talk about the new front. let's talk in particular about originals. you are spending a lot of money on these originals. everything, by the way, it feels like in the business. whether it's yahoo! or others are spending money on this. james franco in one of the series nicole ricci, sarah jessica parker. you have 185 million views, which is a lot. >> yeah. >> do the economics of these originals. are they actually profitable? >> yes, that iare. very impactful because ifon tv landscape landscape, there is roughly going tabe about 4 billion people with smartphones in the next couple years. you have a massive market of both paid tv and really machines in people's pockets that act like cable boxes and the growth rate grew 90% last year.

all of that growth is what advertisers are chasing. when you take a step back and say how do you make this program and where are videos going profitable? you have a really big audience and high-quality content and you use massive digital to distribute those things and the combination allows you to have -- >> original programming, the model was, you were going to pay up initially for programming. it was going to maybe break even and then the real money in original programming was syndication, it was sort of the secondary. >> right. >> in this new world that we're living in is there that secondary piece in the same way? >> yes, there is. multiple windows now that people are distributing to. nicole ricci show it was online and now vh1 and online again this year. 16 unique viewers on it. the size of a major tv show overall. these economics, they work but they work because the underlying map in the industry is so great with how fast things are changing right now.

and you look at 2020 roughly half the tv ad dollars are expected to be spent about $40 billion on mobiles. >> that's amazing. >> you're a tech guy. you're not a media mogul. you're -- >> i'm a culture and code guy. we do both. >> i like that. >> go to breakfast, he's the guy that knows how it put content together on tv stuff. i mean you -- >> no no no. >> what do you mean? he has a show coming up. who did you hire to develop this stuff? >> well, number one four years ago decided to hire all the technologytech technologists. recently dermaturermat mccormack joined us and we have a great mixture of the world's best engineers working on this and now we have a great mixture of the world's best content people working on this, as well. >> just a bonus for people like us who are, like we love drama. >> we love this stuff. >> i watch "sons of -- i watch

anything. i'm craving content. so much unbelievably great stuff comes along and i don't worry about what you do. the bundle breaking down. it will just make entertainment a richer and richer experience for us. >> the one thing if you look at content right now, about 70 million hours of high-quality content produced in the u.s. per year. if you look at where cable and wireless are going, 130, 140 million hours of original content. >> you don't think there is a content bubble? >> no i think content is going to go way up in price. and i think high-quality content. >> but at the same time you're pursuing this programmatic advertising. at least the conventional wisdom is that -- >> it's not true. >> prices are coming down. >> you're going to compress the margin? >> ad prices are going to go up. >> for those that don't understand explain it? >> programmatic advertising is the ability to use automation

instead of human driven ways of programming advertising. you take machines and have machines target advertising and the results, four years ago at aol we did 300 million ad decisions a day. today we do a trillion. >> why doesn't it go the way of display advertising where you see the margin on display advertising? >> a format versus what overall opportunity is. so, you have a better targeted ad one-to-one with consumers and video in it and rich media. the ad prices we've seen. gone up double digit every year for the last four years. if you look at mobile video ad pricing it is 1.5 to 2 times what you see on tv. >> we often see prerolls. how many people -- literally where it says five seconds to skip, four seconds, i'm waiting for the countdown and i just want to press the skip as quickly as i could. does the preroll work? do ayou like to put it in the middle? >> i think prerolls work and

also interactive where you can do direct commerce inside the video ads overall. >> who has done the coolest advertising you've seen? >> i think red bull is doing a good job of thinking about how they're spending both in terms of media consumption and marketing. companies like go pro and then when you really look at general motors has done a great job with us verizon is doing a very very strong job. they're integrating with women's leadership with makers. our program sponsor for makers. so, you look across the major companies, all of them are now involved in digital and i think this is the first year where you'll see the new front, the business we're in and the up front real collide. i think advertisers will push those two things together this year and it will really change. >> you have a view of what happened on friday which is to say the comcast, timewarner deal was undone if you will by the government. >> i think the view point it's pointing to what i think is a seismic shift. you'll see tectonic changes and the whole landscape of media and that deal at least for me is a

canary in a coal mine of what will happen over othe next few years. the traditional media and digital landscaping. >> did you write a letter to the sec saying this is not a good idea? >> no. >> you thought it was a good idea. >> we believe that higher scale networks are really important. if you look attt a network today -- >> with companies and let them have a return on investment. >> but, you know, what do you want? this administration has never been that savvy on private sector. >> you must have had conversations with people and others in the content business who had other views about this kind of thing. >> i mean everybody is self-interested in what they -- >> that was what -- >> of course o, that's what they wanted. >> that's why i'm trying to understand why he would want something different. >> we look out five years in the future and we want to have networks with 500 million people on them. if you think about where we are today, both from the size of the

chinese companies to the u.s. companies to some of the wireless networks, we want massive scale distribution put together with lots of investment in that area. when you think about wireless bandwidth has been growing at 50%, you know increases over the last four or five years in general. we want big cable and we want big wireless. we want all these companies to get bigger and bigger scale. >> when is arianna's party. big anniversary party. >> a week or two. >> a week. >> you paying for that? >> we're going and paying for it. goldman sachs is partnering with us. yeah. >> i still think you need to buy drudge or somebody. is it too expensive? >> drudge? >> do you want me to start, you know aggregate some stories for you. >> why don't you start something. right down the street now that you guys are in manhattan. >> maybe that is too expensive. you know just tabalance things out on aol. >> huffington post is now the

new service in the world. number one on facebook. >> you're only talking to half the world. >> have you been on huff post this morning? >> i told you i was. >> right there. we have everything. >> you know -- >> were you on this morning? >> i haven't. >> just because i know you're going to go there. so, i need to make sure that i can, it's like hard to keep up with him, as you know. yes, exactly. talking about an arm's race. talking about consolidation in the hardware space, or at least the pipe space. what about consolidation in your business? >> i think you'll see a lot of movement in terms of people gathering audiences. and gathering programmatic advertising. >> so, you know the perennial combination is you and yahoo!. right? that's been the one that was rumored, speculated about. i think you've thought about it before. >> this predates me. the first day i got to aol, that was one of the stories the first day i got there and probably five years before i got to aol that happened. i think that is a dead notion

frankly. >> doesn't work any more. >> here's the deal if you look at what we're aiming at as a company, we have been growing revenue and profit for eight quarters in a row. programmatics going over to 100%. we have to make a decision if we want to take a step back. mobile is growing at 70% a year right now. the. >> if not yahoo! if that's off the table. what is the kind of thing you would look at? >> we are aggressive looking at three things right now. how do we scale supply? how do we scale data and how do we skate our video and programmatic stack overall? so you should assume that we will do everything we possibly can. >> how do you define the data piece? >> data piece is access to consumer profiles and targeting and those things and then also personalization technology. how do we get the right content? >> what was the strong joke about aol? put her in chat rooms. no one is in -- are they not in

chat rooms any more? >> we have 250 million global consumers. >> how was that a joke? how was she making fun of aol with that? >> i think it is a relevancy -- >> that's a win. >> it's a w. >> i don't know whether ms felt like it was a big win after a couple jokes about them and cnn. did you -- >> how do you think hillary felt? >> i think good. i mean she had an infommercial there. >> i was thinking more of the president with the millionaire living out of the van kind of thing. you weren't running her servers? she doesn't use aol for her e-mail? >> the russians have that server. we can get it from them now. find out what's on it from them. all right. >> there you have it. tim armstrong, thank you for coming in. >> i'll come enmore often. >> stop by on your way to work.

>> how do we get the downtown attitude? what is the most important thing? >> you come downtown take the tie off. joe was commenting on my suit before hand. i usually don't wear this. i usually wear a sweater. this is my uptown look. coming up an inside look at white collar crime. a new cnbc documentary hosted by our own andrew ross s o, rkin takes a rare look inside a federal penitentiary. we'll take a sneak peek. then tech's hot streak. pick for your portfolio from the internet sector and then incoming ceo of harley davidson is here. we'll ask him about the stock's struggles recently. the strong dollar hasn't helped and also his plans when he takes over the top job. we have some hogs we'll go take a look at outside. boys?

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welcome back to "squawk box." the disaster in nepal topping 3,700 people. richard engel reports from the ground. >> reporter: the entire city of katmandu has seemed to move outside. families live on curbs trying to keep their children fed, clean and most of all away from buildings. the historic center of katmandu is the city's most popular attraction so far with ancient

temples and provinces and it bore the brunt of this earthquake. where a nine-story tower had been now just a stump. a temple compound even older reduced to a pile. volunteers today were digging with their hands. they don't expect to find survivors, just bodies. police have already found around 150 of them in this area. used to come to this exact spot. why are you helping out today? >> it's my place. i used to be here every day. used to sit around here with friends and it's my place, my country, my people. >> reporter: this is also the height of tourist season. an american visitor captured this video of guests huddled in front of the hotel. >> there was a huge crowd and a couple big aftershocks afterward and everyone was saying get down get down. >> reporter: they're on edge but what is happening to the east on the slopes of mt.

everest is far less clear. there were more avalanches sunday. trails and camps swept away. at least three americans have died on the mountain a few dozen survivors have been rescued. it's unknown how many people are trapped on everest. a military official told us here that teams are now heading out to remote parts of nepal, which are difficult to access even under normal circumstances and which now may be completely inaccessible. >> u.s. state department confirming that three americans died in that avalanche in the himalayas that was triggered by the earthquake. we'll bring you updates throughout the morning. in the meantime when we return from the penthouse to the penitentiary. a sneak peek of a new cnbc documentary. gives you a rare look at life behind bars for white collar criminals. back with that and a lot more in just a moment.

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e*trade opportunity is everywhere. welcome back to "squawk." what happens when the spotlight fades? that's the subject of a new cnbc

original documentary. i looked at the experience of fraudsters who go to prison. here's a sneak peek. >> southbound train 613 -- >> reporter: on a humid afternoon in orlando, passengers board an aptrack train headed for georgia. some travelers are on business trips. others on vacation. but not this man. >> my name is ken flask. i was convicted of bank fraud. i was sentenced to 64 months in federal prison. i will be reporting to a federal prison camp in georgia. if i would tell you i'm not afraid i'm lying. i'm scared. who wouldn't be afraid. i'm going to prison. >> you can see for yourself where some of these felons that are convicted of financial crimes stay and what it is like.

the documentary airs wednesday night at 10:00. we went with him to prison. and it was amazing to be with him two weeks beforehand. he was a lawyer. could have been your neighbor. he had padded his bills by a couple million dollars and had a terrible, terrible back story. his son was doing drugs and he justified, rationalized a lot of what he was doing because he had tapay for rehab and things like that. his son actually died ultimately. and, anyway you can see him on his way to prison. he will be there now for a couple years. >> you went to that prison with him? >> our cameras followed him to that prison. i spent time with him. about a week before. >> does he have his own cell or in with the general population? is it what you think of as a white collar? >> you'll be surprised. you know we went to a couple different prisons. you'll see kozlowski who is now out and some of the big names that we interviewed. and then we also went into

prison with a number of people who are there. you know, the federal prisons, you're in a big, almost like a dormitory room is what it looks like. >> a lot of beds. >> a lot of beds spread out. and it's not really cell. kozlowski was in a state penitentiary, he had cells. >> i took a tour o, l.a. and the most shocking thing about it was that there weren't individual cells. very few. some of the hardened guys had to be, but an eye opener. did he have a reason to be worried about his safety? >> i think in this particular instance, no. we also went to kentucky. spent some time with a fellow who is in prison in one of these things. i don't think that those particular places are nearly as dangerous. we also went to a women's prison, actually. which was fascinating. i mean some people talk about these things. there's a yoga class that she goes to in the morning. >> one of the routines that

sesallysesour sister network cnbc and they have a lot of "lockdown" shows and they've been very successful. i watched a couple that were incredible and one was in a women's prison. but i never, i didn't realize we would snoop to that for ratings at this point. >> thanks. thanks, joe. >> but now we've done it. it's different than "lockdown" this is white collar. >> this is white collar. look, to me this is like "orange is the new black." this is -- >> a ratings thing. >> we can only hope a lot of people watch it. >> i thought that your voiceover was good too. >> yeah? thanks. >> there's potential there. even for live tv some day. coming up, the hot streak in tech continues. we'll take a closer look at what's working in the dotcom sector as we head to break, though, take a look at u.s. equity futures.

welcome back to "squawk

box." among the stories front and center. applied materials in tokyo, eletron announcing they have given up on thar planeir plans to merge. french it services company cap gemini is buying igate for $4 billion. and deutch bank posting a bigger than expect eded drop. also unveiling details of its new strategic plan today. and extreme weather caught on tape. take a look at this hail storm in stevenville, texas. >> we've got softball-size hail going on. and i just got -- yeah, i'm okay. >> if i'm going to -- >> oh, my gosh. yep, got that one, too. can we -- oh, my gosh. this is the biggest hail i've ever seen. oh, this is -- i'm covered in

dmrasz glass. >> what do you want me to do? >> there is nothing you can do man. pull up beside that building. we lost our windshield. >> wow. >> big hail stones. five to six inches. they were part of a storm that brought strong wind and heavy rain across much of texas yesterday. >> we're going to talk about tech investing. technology has been on a hot streak with the nasdaq last week an all-time high. where should you beg? here with us on set director of research and portfolio manager at the jacob internet fund for jacob asset management. so, joe asked. we have now broken through. where do you think this thing goes? how high does it go, nasdaq before we get into the names? >> that's a good question. clearly at this point, i think it's safe to say that eval evaluations are stretched to a certain extent. >> not, then what they were last time they hit 5,000? >> stretch. you mean back in the days of the bubble? i mean it's interesting.

a lot of differences. >> you need a new word for what they were back then if this is stretch. >> you know it's interesting. because as i was a journalist back then covering the financial markets. covering tech stocks. >> you're a recovering journalists? >> that's what i said. 12-step. >> you know back then i met a security guard, and they wanted to know what was a hot tech stock tip. like i had a clue. and you don't see that now. >> you gave them pet.com. >> exodus communication. >> back then another name we remember joe he's deceased at this point. when we went through 2000 i think he was a gruntal then. he said this nasdaq is going to rip. when we went to 2,000. it went to 5,000. it's a much different nasdaq now. but not just -- >> we're talking about real

profit. real earnings. and even the most wild eyed optimist back then would have been shocked at how transformative the internet has been within business. how we communicate, how we entertain ourselves, how we learn. >> when you say stretched, how stretched are we? >> it's tough. it is tough to say. right you i think you need tabe more of a stock picker. we have transitioned the fund. we shied away from some of the larger cap names in our space. we're going more mid, small cap. i think that's partly because of the strong dollar. you know that's clearly a risk factor going on. i think some of the economic data so far we've seen in the first quarter has been fairly mixed. so you know and that for instance hasn't been particularly the right move. we trimmed our position in amazon, for instance. and they had, obviously, a very strong quarter. we did the same with apple, which reports tonight.

i assume they'll have a blowout quarter. but i think for the year so far, the russell 2,000 is up more than double what the broader market is. it's been a decent move. >> you like google. that's your largest position. >> yeah. >> because? >> that goes against the, obviously, shift away from larger cap names. but we believe the franchise they built remains one of the most powerful operating today. and we think the valuation, even though it's a stretch, little over 22 times is still very reasonable. >> so, if google is stretched but reasonable, explain twitter then. you like twitter and you like yelp. what are the multiples on both of those? >> you basically have to go with revenue, obviously. and they're, obviously, at a level which is reasonable given their growth rates. i mean twitter is growing almost triple digits. you have to pay up in order to get the kind of franchise value

that we think both of those companies are building. these are very impressive business models. both of them rely entirely. the value within those companies relies entirely on the consumers. they don't pay for their content. they don't pay for what they're generating. we think in the long run, those are very profitable business bundles. they're in investment mode. no question. those multiples are traditionally high. but -- >> here's one we don't talk about on this show a lot. this thing called ehouse. chinese real estate company you like. >> that's an interesting play. they have one of the larger brokerages in china. and, obviously, the real estate market in china has been weak. but recently the government has made several steps to try and boost that market. they own 75% of a company call and you take out the value of that within their company, as well as the cash and it is trading very, very cheap valuation. >> thanks for coming in this

morning. you like amazon right? >> we like amazon. just outside of our top 15. >> thanks so much. coming up shares of harley davidson under pressure. down 13% year to date. the company's incoming ceo hopes to change that. and he's here and he's brought a couple of iconic harleys to show off. we'll be right back.

doug, we have the results, but first, we have a very special guest. come on out, flo! [house band playing] you have anything to say to flo? nah, i'll just let the results do the talking. [crowd booing] well, he can do that. we show our progressive direct rate and the rates of our competitors even if progressive isn't the lowest. it looks like progressive is not the lowest! ohhhh! when we return we'll find out whether doug is the father. wait, what? why do we do it? why do we spend every waking moment, thinking about people? why are we so committed to keeping you connected?

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welcome back. jay-z launching a war of words streaming status quo. the rapper found a tidal and says big companies are spending millions to undermine his premium music platform and in tweets he defends business model and compares it to other technology and music services that took years to build. he argues tidal can give their fans more without the middle man. as for critics who say tidal will only enlist the a-list talent that owns it rather than musician. rich getting richer and equity values, youtube $390 billion. apple $760 billion. spotify $8 billion. tidal, $60 million. harley davidson announcing that it is scaling back

production and reducing shipments in the current quarter. as it loses sales to some rivals that are offering deep discounts and shares of the company have been hard hit over the past year falling as much as 20%. the company will hand over the reigns to new ceo. his plans as the incoming president and chief operating officer of harley. you've been involved in day-to-day operations for a while. >> oh, yeah 20 years with the company and the last six years as ceo working on our strategy and putting things in order within the company, which gives us great confidence for the capabilities that we have going forward. >> historically i watched harley go through all kind of things over the same 20 years you is been there. there have been times in the past where harley had to just look at itself and say, we are an iconic brand and we can't necessarily just change with every whim. and there are times like this where it means cut backs in

production because your competitors will undercut you and then you throw in the dollar. i don't know how you compete with japanese manufacturers. >> they have a huge advantage and we see that. >> you have to hunker down. >> we're a premium brand and we know what we stand for. when you talk about incredible loyalty we have for harley and you put yourself in position of a buyer who goes and buys another brand and comes in a month or two later and it's $2,000 or $3,000 less. how does that fit into their sense -- >> that's not a harley. >> the competitors are doing that, we are not doing that. we know what our customers expect from harley. >> not very many brands where you buy a t-shirt where, you know you see harley davidson and there's a reason for that. if you cheapen it for short-term reasons, there is going it be a problem. you can't go into an mc and you can't go in there and ride a japanese bike can you?

do they chop japanese bikes? >> you know all kind of things that go on in the industry, but harley is in uunique. >> how many -- >> when we say customize. almost every harley is customized. >> almost every one. >> there is a spirit people get the bike and as good as it is they want to make it their own. part of the spirit of the brand, the whole idea of individuality and self-expression and freedom that harley is all about. people want to take the bike and make it their own. and some to great extremes and some just subtle changes. but almost every bike is -- >> there's a management. there is a management lesson here that we talked about last week. short term versus long-term. because if you want to stay harley, i don't see how you, you know how you respond by discounting yourself. but near term stock's down. is that okay? is that okay for shareholders if the stock goes down? you have to have a long-term

strategy. >> our focus is, you know, we have to deliver the short-term results that assure we have long-term performance. >> of course these are unprecedented times in currency and has a direct effect on our p p&l. and the advantage foreign competition has here in the united states because they all of a sudden got 30% in their p&l and having an indirect effect we're focused on running the company stronger every day. we look at every single element of the company and we're open to all kind of input on what we can do better because we want to be the strongest company out there. somebody may challenge the idea that we shouldn't be discounting. we would push back strongly and say the premium nature of the brand, the loyalty that our customers have is based on trust

and clear expectations about what they can expect harley will do. we're not going to violate that trust. >> in past slow downs, economic slow downs, harley always said that we're more in elastic as far as our demand because it's a dream purchase and people save up for a long time if they want a harley they're going to get a harley. is that different now? $3,000 discount that could change your dream of what you want -- >> the industry grew 9% in the first quarter. we were down slightly. a lot of those sales. some of those have impacted us for sure. but a lot of those sales are new energy in the industry. which helps us long term. and historically a lot of people enter harley through other brands because it is a dream. and so when we look at these short-term shocks it's more of a deferral on the dream. not a change in the dream. so, you know we understand that has been a long-standing pattern and, again, by understanding our customers and really focusing on this loyalty and trust that we

have with our riders we're going to make sure that we maintain that and maintain what it is they're dreaming to get to some day. >> do you, are you big into the waerd things i see out there. the three-wheel or atv-type things? >> we're not into weird things. >> atv things? >> no. >> how about a side car? can i be in a side car? >> no you have to wear the guzoo helmet. >> it would look good in a scooter but look cooler in a harley. >> he's got, that's a bigger problem than he has with the company itself i think, making you look cool. >> we have talented people that can pretty much fix anything. but might be a project. >> are there side cars honestly? >> we actually exited the side car business about five years ago. the market is very small. but they still exist and they're used quite a bit with harleys. >> all right, good. we're going to go out and take a

look. is that a soft tail? i want the one, the second from the -- >> the blue and white one? >> no the black. >> that is the new street 750. >> what is the light blue one? >> the light blue one is a customized street 750 and we have -- we have a competition going on in the united states and actually europe as well. to customize the new street. so this is an example of talent by the dealer in taking one of our motorcycles and demonstrating the customer what we've done. >> you watch "sons of anarchy." >> i watch it. >> say old lady. that's the acronym. do i have room for my old lady? >> you say friends. >> okay. all right. that term for you. we'll take a quick break and head out to the plaza with the incoming ceo of harley davidson. take a closer look at four bikes that he brought along.

i want this next one.

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we're back with the incoming ceo of harley davidson who brought along some hogs for us to check out. >> it's time to move on. >> it's a little, what is it?

40 50 years old? >> i don't know. kind of timeless. >> what's your new theme song? >> i think it's past your time. >> saw easy rider -- >> how about scarlett johansson. >> the bengals try to do "eye of the tiger" and got laughed off the field. don't do first edition or harry styles or something. >> one of the bikes is now the avengers. >> actually, there is a street in "the avengers" but the highlight is the new high wire. the projectproto prototype electric motorcycles. >> we don't have an electric here? >> not here. >> how many -- >> this is 103 cubic engine. this is the all-new road glide. >> translate that so i would understand that. is it like 1,400? i'll tell you. i had a honda 350 in college. when i get on a 1,000 acc one

time i turned it like this and it started. i couldn't get it back you know, i'm stronger now. but i mean that would be you have to keep that upright. don't you? can you get it up? >> absolutely. you could just put it on the stand. roll on the throttle and off it goes. you have to start it. i just want to see if i can even sit. >> how heavy is? >> i can't even push the thing. this is a hog. >> honest. hold on. >> that one is fine. that one is the one i want in fact. how much does that cost? >> 750. so about 7,900 in the u.s. >> 7,900. >> hard to keep it. that's what i mean. the bigger ones are even -- >> can i ask about the electrics, though? >> when is that going to be road ready? >> live wire in the second year. >> an electric harley. >> this is an actual question. >> you don't know about project live wire. >> i don't want to know about

it. second year of taking it out on the road and we have a fleet of bikes. we've done 6,800 demo rides. the feedback is unbelievable. we'll take that feedback and -- >> it sounds awesome. it sounds awesome just as it is. >> it's got this awesome turbine kind of line to it. >> last time we had someone on you asked about a hybrid. i couldn't remember who that was either. >> he's got him. >> all electric. >> not hidrid. >> no helmets for me? >> no one looks better. >> and i'm going to make you look cool. >> how many states where you don't need a helmet? >> i don't know actually the number. more states in the united states that do not require helmets than do require helmets. >> what do you think of that? >> i, personally i wear a helmet and we advocate for everybody to wear a helmet. >> there's nothing between you --

>> the newfangled helmets that have all the information. >> there are some opportunities in the technology coming with the heads up displays. >> what is the one thing you'll change once you're ceo? what is your overriding strategy you can tell us about? >> we have outstanding strategy diversifying advertising base and made tremendous progress but a lot more to go. built a lot more capabilities and product development and increasingly retail. >> i could turn this on can't i? >> you can. okay. where is the -- is this it here? >> okay. >> got the clutch en. >> not on. >> you have to turn it on. >> do you ride a bike? >> no. >> four up in this case. >> thank you very very much. >> when we come back we have a

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nasdaq and s&p starting a new week at all-time highs. and a fed decision as well. will this fuel the rally or will it take the bulls by the horns? we'll debate straight ahead. getting to the core of apple's business. the tech giant reporting after the bell how much money will the company give back to its shareholders? how many phones did apple sell in the last three months and what next for the stock? a trip inside the numbers, coming up. the latest developments from this weekend's tragic earthquake in nepal. >> the ground is shaking. the death toll rising and the rescue efforts ongoing. all this as the aftershocks from the devastating quake keep coming. the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york, this is "squawk box." welcome back to "squawk box"

here on cnbc first in business worldwide. i'm joe kernen along with andrew ross sorkin. becky is out today. the futures right now are indicated to have a nice positive open. you're a bull up 71 points. s&p called up nearly 6. and the nasdaq continuing now to outperform another 14 points this morning. check out the markets in europe. which are now green. following along with some of the positive sentiment that we're having here in this country with the dax up the most. before though we turn our attention specifically to the markets, let's, once again, talk about this big developing story over the weekend. and that is the disaster in nepal. the earthquake death toll now tops 3,700 people. nbc richard engel immediately took off for nepal. he reports there from the ground. >> reporter: the entire city of katmandu seems to have moved

outside. families live on curbs, trying to keep their children fed, clean and, most of all, away from buildings. the historic center of katmandu is the city's most popular attraction by far with ancient temples and palaces and it bore the brunt of this earthquake. >> reporter: where a nine-story tower had been over 150 years old, now just a stump. a temple compound even older reduced to a pile. volunteers today were digging with their hands. they don't expect to find survivors, just bodies. police have already found around 150 of them in this area. she used to come to this exact spot. why are you helping out today? >> it's my place. i've been here like every day. used to come here and used to sit around here with friends and it's my place, my country, my people. >> reporter: this is also the height of tourist season. an american visitor captured this video of guests huddled in front of their hotel during

saturday's earthquake and aftershocks. >> there was a huge crowd and we had a couple of big aftershocks afterward which everybody was saying to get down, get down, get down. >> extraordinary video. now the avalanche caused by saturday's massive earthquake hitting a base camp on mt. everest. the climbers get low to the ground as the avalanche falls on to them. the photographer never stops rolling after the avalanche passes over them the climbers talk to each other to make sure that they're all there and they survived and a documentary filmmaker from new york tells of the terror when he and his colleagues realize that they were going to be hit with this avalanche. >> everything was gone. all our tents were gone and then people were pushed. the guy who stood in front of me was now 30 feet over there. and we were missing one person that we don't know if she's alive or dead. >> and we will continue to follow the story and bring you updates throughout the morning. >> okay. we'll switch gears for a moment.

back to business news for a moment. some stories that we're watching. investors watching as well. the big one apple reports warterly reports. 30% year-over-year on revenues of, get this more than $56 billion. pretty remarkable. the markets in wait and see mode for the fed. begin their two-day meeting tomorrow with a policy decision set for wednesday afternoon. we'll see what they have to say about the economy. also gasoline prices rising about 5% in the past two weeks. lundberg industry survey now putting the average for a gallon of regular unleaded at $2.58. that's up about 13 cents per gallon to the highest point so far this year. you felt that at the gas station, joe? it's cheaper probably in jersey right? >> i don't drive much any more right? >> that's true. >> i'm you now with jeevs. few stocks on the move. this morning applied materials and tokyo electron they have

given up plans to merge. company cite problems from u.s. anti-trust regulators. disney was upgraded to buy from neutral at guggenheim securities. the price target there, 127. american express, meanwhile, is downgraded to neutral from buy. the analyst cites nearterm catalyst. outperform to market perform and the target was increased from 119 from 107. procter and gamble downgraded all the way to underperform from outperform at clsa and the price target was cut to 81 from 90. plenty of market movie action this week. foreign investors, including a handful of tech earnings in the fed's two-day meeting which kicks off tomorrow. joining us now, paul ebner, senior portfolio manager at black rock and jeff rock chief investment strategist at raymond james. paul, i'll start with you.

we had some people in this morning. they worry, number one about the negative sentiment of the upcoming rate increase and also stretch valuations. do either of those concern you? >> certainly for the u.s. both of those concern us quite a bit. we are net short the u.s. and have been increasing that short for most of this year. you mentioned the fed increase. whether or not that gets pushed back obviously, that had a very large impact on the u.s. dollar. that's a big head wind for earnings. we've also seen relative to other parts of the world, the fact that the u.s. consumer has been pretty sluggish in terms of their actual consumption. we find better value in parts of places like scandinavia and canada relative to the united states. >> so would you, if you were selling, if you are just the average investor paul and you sold some u.s. stocks. if you didn't want to go into

equities anywhere what would you do with the proceeds? >> there's a couple opportunities. you know first, i think a market neutral fund like the one that i manage is attractive place to generate returns. actually there's probably some opportunity in rates in the short term at least. if you think the fed is going to be pushed back. but that would be more of a tactical call. and and i think looking for uncorrelated assets in the alternative space always a good option for people that don't want to put money to work in equities. >> what that now? what is uncorrelated at this point in the u.s.? what would you use? >> you know again, so the global long short equity fund is designed to generate returns that have a low correlation to the equity markets. >> you have to be good at picking longs and shorts, then. >> that's right. that is the challenge. >> so jeff you kind of -- i saw your expression when i asked, what would you do?

is there money? could you make money in the bond market now because we didn't think so for the past five years and in some years the bond market just did phenomenally well if you wanted to step aside. is that still possible? >> i'm in bill gross' camp. i think one of the best shorts out there is the german ten-year bond with negative yields on it. i don't have much interest in fixed income here joe. >> i mean i think about that. how could you go long when the only way you'd make money is if it got more and more negative yields? you know, that sounds like the true no brainer, jeff. >> yeah. you know we think that interest rates are going to go up. it looks to us like it is going it be in the fall of this year when janet yellin gradually increases rates and i think that's the key here. it's not going tabe a rate ratchet like we saw between 2004 and 2007 where they took fed funds from 1% to 5.25%. we think she raises by 25 and then steps back for three or

four months and sees how the markets react. >> so, you would stay long in the u.s. or at least agree with paul that you should go and diversify into europe? >> i think the biggest surprise here is going to be a move straight up on the s&p. you saw them notch new highs last week. i think people are still way under invested in u.s. equities. i don't see it that way. i don't think valuations are all that stretched unless you're looking at the cyclically adjusted pe. which has kept you out of the market for the past six years. we think the markets are going up here. we think the break out last week was for real. we'd like to see a slight pull back to 2900 but i don't think there's much downside here. >> go into the nasdaq jeff since that's been the strongest. will that continue to lead? >> well i like tech all year. i said that a bunch of times on your show. i do find it interesting that the only one of the s&p

macrosectors that notched a new high last week was the consumer discretionary sector. so, somebody besides me think that the consumer is going to bounce back come may and june. >> all right. so, you guys definitely obviously, disagree. how would an investor paul let's say they wanted to invest in scandinavia. so you manage a long short fund. but how would they invest in you know in specific european markets if they wanted to? are there etfs? >> plenty of etfs and investing in a currency. a number of single countries. i would add, though that we are also short the euro zone. so, the euro trading block. we find better opportunities in scandinavia, as you mentioned the european economies have recovered. but those stocks have recovered even more. if you look at a basket of european exporters they moved up

twice as much as a basket of u.s. exporters has fallen. that tells us that those sort of the, the benefits of the weak euro and the european quantitative easing are fully priced there. we see places like scandinavia, particularly sweden where ceo and cfo sentiment has recovered quite a bit and we see, you know a weak currency also in norway. you know, we see a lot of opportunity there. >> all right. all right, jeff so we've got to go jeff. you wouldn't be opposed. you stay long here with what you said, but you wouldn't be opposed to buying equities over there, would you? >> no. i'm not opposed to that at all. i think you have to take a rifle out and not a shotgun. i think you need to be stock-specific in europe. >> really. now you're getting harder and harder. i can't even pronounce most of those companies. anyway, thanks guys. appreciate it. we'll see you later. >> you bet. >> bye. when we return it's likely that you use their products in some way, shape or form every

single day. we're talking about johnson control making from car seats to thermostats. the company's ceo will join us after the break. apple will report results after the bell today. we'll talk watches, laptops and cell phones. we'll tell you what to watch when those numbers hit. "squawk box" returns in just a moment. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.

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welcome back to "squawk box." making headlines. "furious 7" continues to keep pace at the top thoef box office. the universal mega grossing sequel taking in another $18 million to become the first film to hold the top spots for four consecutive weekends since "the hunger games." i guess the first one did it three years ago. domestically, "furious 7" has now earned more than $320 million making it a bigger earner than "frozen." >> isn't that amazing? >> yay for universal. and ron mier. good. we like this. and shockingly they're doing another. the story is not finished. the plot's not done. there's more of the story to tell. >> you think? >> it's not the money. it's not the money. there's loose ends. >> sit around thinking story's

not -- >> it needs to be done. a story that has to be told. >> at least eight-parter. >> i wouldn't finish at eight. you can't get a decent synopsis of the whole story in eight. that's like seven-minute abs. you need eight minutes. >> it gets worse every time you add a new one. >> does it look like it? >> i imagine at some point the actors and directors start asking for more and more and more because they look at this and say, okay we can do it. >> aren't those wage gains that you just long for every day. >> i am loving the wage gains. margin compression. we're going to talk about johnson controls right now. the largest u.s. auto parts supplier. double-digit profitability in the second quarter and expects better growth from its building efficiency business and the stock now up 8.5% this year. joining us now is alex the chairman and president and ceo of johnson controls. good morning to you, sir. >> good morning, how are you doing, andrew? >> good. thank you for being with us this

morning. when we teased this segment we said a lot of people don't necessarily know the name but they know the products. when you think about your business right now and you think about the sort of broader economy. are you worried more about the economy or worried more about the currency issues? that seems to have been the thing that hit you the most recently. >> i'm not worried. i'd say the currency issues short term are real. not much i can do about that. but i am mostly worried about things that are in our control. and we manage that. our company has been through a lot in the last two years. mostly as we try to transform our company from being primarily an automotive company to multi-industrial. a lot of strategic actions goingen but we increased profitability by 30%. >> transforming the company and really focusing on the building efficiency aspect. explain what you mean. >> i'm sorry. >> explain what you mean by going into you talk about the efficiency business the

building efficiency buildsiness. >> the building efficiency. what we've done in the last quarter is we've finalized some of the streenlategic actions that we put in place to de-emphasize some of our automotive business and if you look at our business and what cycle we're in our building efficiency business is incredibly strong. a franchise business and we're in commercial buildings and particularly strong in china. our business both in china and north america are franchise businesses and as those markets begin to improve, we're in a great position to take advantage of that. >> should we no longer think of johnson controls -- >> we'll always be a great automotive supplier. one of things that makes us better than the average automotive supplier is we're able to deal with the cycles but not rely solely on the

automotive business. i would rather you talk about us as a great automotive franchise. >> where in the cycle are we? >> you know we're in different places. europe continues to bounce along and it's changed somewhat and moving more to western europe but it continues to be strong driven by the luxury automotive makers. in china, people talk about 6% growth. meaning less than what people expected in the past. our growth has been almost 20%, quarter over quarter. so we're seeing strong passenger growth vehicle growth in china. and in north america it continues to improve. so, i don't think we're not at the end of the cycle. i think it's moving towards china. >> alex i know you said there is very little to do about the currency head winds. how long do you think it will last? how much focus do you put on that and what do you think about it and what to do with it? >> i think strategically you have to think about it because it changes some of your capital allocation strategies, but it

doesn't change how you operate the business. the fundamentals of the business, most of the business that we provide, all the services we provide are usually in the cont nents that we serve or in the countries that we serve. currency for us is a translation issue. we don't move around our manufacturing in order to compensate for currency because our products are used where they're manufactured. >> okay. fair enough. alex, thank you for joining us this morning. >> it's great to be here. >> appreciate it very much. when we return, kim kardashian reacting to the big bruce jenner interview. hear what she has to say about her stepdad. we'll do that next, when we return.

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welcome back to "squawk box." earlier this morning we talked about the bruce jenner interview this weekend, now, we're hearing from his step daughter kim kardashian. here's what she told nbc's matt laurer. >> i don't know what life would be like if you always felt you weren't yourself. i know it's not something that you or i could really fully understand, but i don't even think we have to. i think as long as he is happy and he wants to live his life however he wants to live it that just makes me happy.

and i support him 100%. >> well andrew you know that she's channeling kanye there because bruce told the story that what turned kim around was when kanye said we have all this, we have money, married the most beautiful woman in the world, but if i wasn't myself i wouldn't have anything. she just kind of said the same thing that kanye said. >> i think she said bruce was the most -- >> it wasn't kim. >> was it not kim? >> one of his daughters. >> he gave credit to one daughter. >> one daughter had a hard time. you need to see the entire two hours. >> it was amazing. >> it was amazing and it's an issue that a lot of us you know weren't that familiar with. everything that people go through and it was, i thought it was really useful and what he said about that maybe this is

why he's here and he can help a lot of people with that because it's there's still horrible stigmas and things happen. what was it 45% of people that are dealing, that are conflicted with that attempt -- i mean it's something that society needs to come to grips with and understand. i think that he went a long way towards. >> i thought it was amazing. i think it probably helped a lot of people. >> i got into an argument with a big-time fox commentator who said, i would have no interest in knowing anything about that. and it's like, really? you're that smug. you know everything about everything. but that's neither -- >> who is that? you named his first name but not his last. but in the meantime another story, a prank hidden in google maps. a small area in pakistan were surprised to finddroid mascot

urinating. a prank by someone using the company's map editing software. the image has since been removed. joe, it says anchor here coming up right now. do you want to handle that? because i know you are -- >> i don't see. was that r2d2. >> it looks a liltttle r2d2. that would be like an oil leak. coming up a preview of apple's earnings. we hope they're not all wet. talk products, the future of tech and leadership at the company. two industry leaders. and then the nfl draft is this weekend. millions of dollars for new stars. phil buchanan will join us with a look at a growing problem in professional sports.

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welcome back to "squawk box." making headlines this morning. boeing holding its annual meeting in charleston south carolina. the q1 results handily beating the results last week. key machinists from getting a foothand at its plant. bristol mierrorss squib. shares there creating higher on that news. deutsche bank was hit by big legal charges and also the european banking giant is unveiling details of a new strategic plan today, this includes the sales of its post-bank retail chain and additional reductions and our own cnbc european colleagues sitting down with deutsche bacnk ceo earlier this morning asking

if he was disappointed in the market's reaction. >> the first day's reaction in the share price, as you well know, not what we were looking for. this is a long-term strategy. very positively for the next five years. the price had run up very strongly coming into this announcement and high expecpectations, but we are not going to judge our strategy based on a one-day reaction. >> in an interview yesterday as part of a russian-state documentary, president vladimir putin said he had no regrets over last year's annexation of cri crimia. putin said the move -- >> of course he did. . that's news. >> the move was a writerighting of a historic wrong after soviet leader transferred the peninsula from russia to ukraine. he said when we defend our interests, we go to the end.

after he did it he had a 90% approval rating too. it is not a shock that he doesn't regret that. we'll see whether some day he regrets it because we'll see how it all plays out. we don't know how far it goes right? matt ziglan is here. this is mr. sony hacking right here. >> awesome. >> going low rent this morning. not really. shares of -- >> how much time? we'll go right to 9:00 if it will help. >> shares of apple on a big run over the past three months. the stock is up close to 20%. closing in on a 52-week high. all of this ahead of today's after the bell release of those earnings. matt is a business reporter at buzz feed. you did do this did you break the sony hack? >> part of it. the obama e-mails. >> back and forth. >> that's one i found. >> wow, there you have it. let's talk apple this morning. >> of course. >> what are you looking for this

afternoon? what should we expect? >> not going to be the best quarter in corporate history like it was at the end of last year. they'll sell a ton of iphones. people are expecting around 58 million, i would expect maybe a little bit higher. >> should we get disclosures on the watch or do we care about the watch? >> it's interesting if apple can create a new product that a lot of people want. they're not going to break out watch sales. >> the story is always the phones and should we look at computers? i was just up at cornell this weekend. every single kid, joe, had an apple computer. it was shocking. either using an ipad with a keyboard attached to the keypad or an apple. i didn't see windows machines anywhere. >> i still have the mac book that i used in college and everyone else had one, too. a much smaller part of the business. apple is basically an iphone company. and they released a new one that a few people will buy, but i would just look at the iphones. >> beyond the iphones, do you think we'll get hints of any new products coming? what are you expecting later

this year? >> i don't think tim cook will rev an engine during the earnings call or anything. >> do you expect tv to come this year? >> no. as buzz feed reported last month, a new, another apple tv product will be refurbished and a new one and i don't think we'll see an actual. >> $56 billion in revenue, right? >> something like that. >> year-over-year revenue growth, even modest. >> 130% yeah. >> is that possible? how long can we discount that into the future? forever? >> i mean people the group of people on earth that can buy iphones only grows and more importantly the group of people that can turn their iphone 5 into 6 and 6 pluses which are the bigger screen. >> we need to view. maybe we need to view apple's market cap as not the market when it hits a billion because we never had one. >> a trillion i'm sorry. >> we never had. we had $600 billion a bunch of

time with cisco and others. when it hits a trillion i think you need to add in the market caps of all the companies that apple has disrupted and put out of business. then you're adding up like 30 companies. maybe you deserve a trillion right? we need to look at it differently. the law of large numbers must not apply to apple. >> they're riding a trend. the global adoption of smartphones. >> nokia was doing that too. not everybody rides. they fall off the wave. >> but, you know apple is basically the only company making a lot of money selling smartphones right now and no reason to expect them to stop. they have the strongest brand. >> i don't think we should call it a phone any more. right? >> what is their success say about google and android? what do you think is happening long term? >> the installed user base of android is larger than apple's. just they have a totally different strategy. they want your information, they want your data where apple wants to make a superior product.

>> do you think they'll acomecome up with a cheaper product to sell more? >> if you want a cheap phone to do what an iphone does they are easy to buy but people want to pay more for the iphone. >> we'll leave it there. matthew, thank you coming in this morning. >> thank you for coming over here. >> i want to hear more about the sony stuff. can i just ask a sony question. do you think it's fair that it's all out there on wikileaks that it happened since the "60 minutes" piece for anyone to report anything. or only specific things that should be made public? >> i think the standards that you know, buzz feed and other news organizations apply and when we had the e-mails in december shouldn't change at all. if it's newsworthy, it should be reported. people have found new stuff that i think is interesting and newsworthy like the ben affleck story. that captivated a lot of people. some of the other stuff reported i don't think would have met the

standards we were applying. >> the slope that we're on and which term you want to use, genie is out of the bottle toothpaste out of the tube. farm animals left the barn. it's not going back in. once it's out, it's out. >> has it changed what you put in your own e-mails? >> you know we always are taught, you know, that everchally your e-mails will be read by someone that wasn't intended. >> that was long ago. all right. thank you. who is cooler andrew or steve croft? >> right now iwould have to say andrew. >> that speaks volumes. up next a former nfl player who is trying to tackle bankruptcy in the nfl. it's hard to believe players making so much money could eventually lose it all. but it happens more often than you think. we'll take you inside the huddle

of a former nfl player phil buchanan right after the break. stick around. more "squawk box" when we return. ...and takes the wheel right from your very hands... ...this isn't that car. the first and only car with direct adaptive steering. ♪ the 328 horsepower q50 from infiniti.

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to be a better investor. welcome back to "squawk box." draft week for the nfl and a receipt report by the national bureau of economic research finds that one in six nfl

players will go bankrupt within 12 years of retirement. pro quarterback mark brunell in 2006 first-round draft pick vince young among the high-profile players taking hard hits after leaving the field. and the financial distress goes beyond just the nfl. "sports illustrated" reports that 60% of nba players are broke within five years of leaving the game. antoine walker lost $110 million. and 11-time all-star allen iverson lost $150 million after two years of retirement. a new book by a former nfl player tells the tales of reckless spending in his case his own mother. warning young athletes about the perils of getting rich yik. "new money" philip buchanan started his career with the raiders in 2002. and, you know we understand it

phil, and welcome to the show. i mean i could imagine that you know a lot of guys have families and friends and, you know, maybe they i don't think too many athletes necessarily come from families that have a lot of money. it's usually not a big inheritance. so, when they got some money, people, it's in the good of their heart to help their mom, buy a house for them, help their siblings, whatever. it is well intentioned to start. >> it is definitely well intentioned. for me i was very proud and obligated to buy my mother a home hp that's more of a normal thing to do. buy your mom a house and a car and all those nice things are definitely normal. >> i just, the sharks are out there, though. and athletes with as much money as they make are an easy mark. do you have some solutions to propose in the book how to

insulate easy mark guys that may or may not be great. maybe they don't want cnbc. maybe they're not expert in finance. there should be a group of people that take these guys under their wing because it's not, you know you can do conservative things to preserve capital. and that's what a lot of these guys need. >> yeah. it's definitely very important. and i talk about the importance of having a mentor. and that's something very big that a lot of players are definitely missing. i've broken down in my book in a periodical table about a platinum of gold or silver or helium mentor. i have broken down that and i have also talked about the importance of having true friends. i have definition in my book talking about true friends and fun friends. we all know what fun friends do. we need more true friends. >> philip a lot of times there's some people that have these business proposals for

guys. and they say, this is going to work, this is going to work and some of the money gets lost there. other times they buy too many cars or too many houses or whatever. have you broken it down? more that they lose money in risky ventures or just on you know just spend thrift and being way too extravagant in their personal life or a mixture of both? >> it's a mixture of both. but i think the habits. it's a combination of having better habits and having a better supporting cast. i am going to talk about this a lot. having a mentor. someone that can say, it's okay to spend some money, but you can't spend all your money and you have to budget things out. you have to have different buckets. buckets where you have fun and buckets where you're working on investment for long term and buckets to pay your bills. allocate different buckets will help you become much more

successful. >> the nfl has all these programs for rookies and others who come into the league to talk to them about money. are players just not paying attention? what is going on with that? >> it's not that players aren't paying attention. see, a lot of people have to go back and think about the issue and how strong the issue really is. when you're young you're prepare preparing for football and doing all the educational school things. pretty much through elementary high school and college, you're just working hard and preparing to make it in the nfl or nba. and, so if we can go back and say, you know what let's try to educate these players financially and help them understand investments at a young age, too, then they'll become much more successful. so, when the financial adviseors started to talk to them, now it won't sound like chinese or spanish. that's the big problem. we're not educated about finances at a young age. >> what happened to you when you got into the league, initially? >> spending money.

having fun. i was doing what i thought was actually fun and right. but then eventually i had to wisen up and start trying to figure things out. and, so that's one of the thicksthick s where i made mistakes and i decided to reach out to people who know a little bit more than i do so i can give myself a chance to be successful off the field. >> what happened with your mother? you got drafted and your mom calls you and says she needs a million dollars or something. >> that's a normal thing. but my mom did ask me for a million dollars. and at the same time you know i always tell people that i love my mother regardless of the situation, but i do have 13 other chapters in my book that talks about the importantance of having a financial adviser and right mentor in bad business deals where i spent over $1 million in a great business deal that had a great chance but i missed the management part of

it. >> you think she got off cheap. my mother a million dollars. >> he didn't give her the money, he bought her a house. what did you do? >> that seems like a reasonable price for 18 years with most kids, for me anyway. >> what happened is i didn't give her the money, but i did buy her a nice house. i bought her a car and i paid bills for her. so, like i said it was a lot of stuff going on around that time during the draft and during my first few years. so, for me i was dealing with trying to figure out my financial adviser and trying to help family members out and i just didn't really understand what was going on. there was a lot that was said but i kept moving forward and eventually hopefully i thought i would figure it out. >> do you think, philipfillip there is a feeling it will never happen to me because this is not a new story. i would say everybody even the guys like allen iverson. i know they heard about

predecessors to them that the same thing happened to and they know it happens, again, to them. it would seem like the horror stories from the past would, you know smarten some guys up to not let it happen to them. but you never think it will happen to you, i guess. >> it's one of those things that you never really think that will happen to you, but eventually it does happen to you if you're not paying attention. like one of those things if you fail to plan you plan to fail. for me hoping for me, i start going in the right direction. but you have to. you have to be able to figure things out and if you can't, you have to find people who can actually help you. this thing has been going on for years and years. and hopefully my book "new money staying rich" can hopefully change the cycle and we probably won't be able to see the improvements probably within within five to ten years from now. >> all right. makes so much sense, too, if you

get to the point where your money works for you and throws off a certain amount. instead of you working for your money, it's cliched, but money will sit there and actually give you an income and the principalle stays where it is. the fed has with their dessert policy nobody can make any money on savings accounts. philip, good luck. mandatory reading for everybody across the board not just athletes. >> thank you, i appreciate it. i appreciate you having me on. >> you're welcome. when we return jim cramer will join us from our new digs on the west coast. a special west coast wake-up call with cramer. as we head to a break, take a look at the futures. dow looks like it will open higher. s&p 500 up, as well. back in a moment.

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we've got an update on the recovery efforts in nepal. the death toll is now past 3700. thousands flow fleeing the

capital due to the aftershocks which continue to hit the area. food and wart shortages threaten the survivors. the death toll is likely to climb as contact is made with remote villages an avalanche killed 17 people. survivors were airlifted down to lower elevations the victims included a google executive, a medic and filmmaker who were at base camp for mt. everest climbers. let us get out now to san francisco. jim cramer is spending the day at our new bureau there. nice digs jim? >> fabulous. got to come out here. just dynamite. that's a real shot, right? >> yeah this is -- not made up. it's not one of those green screens where it looks like -- it's actually it. timplgts that's amazing.

>> where are you actually? where is the set right now? are you up on the roof or something? >> yeah, you know because it's freezing and kind of a test of wills, and each of us has a different jacket and we are so cool. even i am cool but i'm looking at david faber and carl quintanilla, they look eye foreign correspondents. i look like someone with -- >> do you remember when the nasdaq went through. >> maybe it was 3,000, but he got really bullish and really long at 3,000. i said you're out of your mind to do that at 3,000, next time i looked we're at 5,000. we're through the 5,000. will it surprise us on how far it can go? or will it already top -- >> i think there's a lot of stocks within the nasdaq that are still inexpensive.

we're looking at some of the biotechs, but the traditional hardware tech and software tech not expectative. the laid joe bata-p understood momentum. this is quite different and therefore less dangerous. >> we have been here a long time, joe -- sheesh, joe. jim. there are a lot of people no longer with us when you think about it. >> i know. >> pretty amazing. >> you know we've been around. >> we have. we have. we've got a long way to go though let's emphasize that? >> i hope so. that's the goal. you know 60 is the new 70 -- >> exactly. let's make it 30. i heard the new 60 is 40. let's go 29. what about apple tonight? >> too much expectations when it's going higher like this. i think there's going to be someone disappointed and then

you get a chance to buy it tomorrow most likely. i still say don't trade apple, own apple. it sells at 14 times earnings best balance sheet, big dividend boost coming. i think the iphone is good. i think too many people are worried about watch sales. i think they'll be fine. >> jim, we'll see you in a couple minutes, the next two or three shows are out there at the new digs. >> definitely. it's beautiful here coming up when we return, a tesla hack and coffee glitch. we're back in a moment. boys? stop less. go more. the passat tdi clean diesel with up to 814 hwy miles per tank. just one reason volkswagen is the #1 selling diesel car brand in america.

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well i didn't know they were down but apparently computer systems at starbucks are back up and running at locations. a glitch took down a point-of-sale systems for the chains so they weren't able to process credit cards and debit cards. in some locations, get this -- actually took cash. cash only actually. others gave out free drinks. the company says the outage was caused by a failure during a daily system refresh and was not the result of a hack. tesla's twitter feed and website were targeted by

hackers, one tweet promised a free tesla to call a posted number, but the number to a voicemail greeting, and asked callers not to call back. >> an drun do it again tomorrow? >> we will. we'll move the chairs closer together "squawk on the street" is next. ♪ san francisco ♪ ♪ san francisco ♪ ♪ city by the bay ♪ ♪ san francisco ♪ we call it one market our new stewedous here in san francisco by the foot of the bay bridge, and a tame about our commitment to covering tech and innovation in this country. good monday morning, i'm carl quint nilla, along with