wow, i'm getting excited from you. no, it's monday, april 4th. and "squawk box" begins right now. thank you. thank you. ♪ >> announcer: live from new york where business never sleeps, this is "squawk box." aww. good morning, everybody. happy monday, welcome to "squawk box" here on cnbc. >> how much did you pay for those hugs? >> that was sweet. i'm becky quick along with joe kernin and andrew ross sorkin. let's take a look at equity futures. we've got green arrows. s&p up by 4. nasdaq up by 16 this comes after a week of gains for the marketing. the dow 1.6%. nasdaq up by 3%. overnight in asia, markets in china and hong kong were closed pour a public holiday. not much movement in other markets.

japan, marginally lower, korea marginally higher. overall trading, you'll see right now looks like things are looking up across the board. dax and cac up by 1%. take a look at the price of crude oil. last week, crude oil was down by 2.50. this morning, around 36.76. andrew. we've got a cub ouple of bi news stories. alaska air officially going to buy virgin and they beat out jetblue. we'll talk more about this transaction throughout the rest of the show. it's a big price war. it's a loss for jetblue. questions about the brand which we'll get to. whether alaska air whether it works if you will with virgin. also, questions about alaska air, people thought alaska air

was a takeover target by delta. does this make them more likely to get bought out or less. nonetheless, we'll talk about those issues. it's a $57 a share deal. in the meantime, things keep getting worse for bill ackman. the billionaire investor, pershing square lost 7% last month. and continuing to tumble after cutting its financial forecast. that firm also said it could face a default if it fails to file its annual report by the end of this month. that leaves pershing square with a 25% loss for the year according to reports. listen up, business travelers, a fire overnight at newark's liberty airport forced an evacuation of terminal "b." it rekindled a short time later and forced a second evacuation. it's unclear whether it will be ventilated in time for the morning rush this a.m. >> that's close to home.

>> it is close to home. >> so is the amtrak in philly running into -- >> somehow, on the tracks -- >> people in the back -- >> well, amtrak has a 20-point plan, any time something goes wrong with the tracks. those 20 points weren't followed. some stocks to watch, today, tesla says that orders for that newer lower priced model, the model 3shgs, electric sedan top 270,000. for each car delivered that would mean $10 billion for tesla. the model s is expected to come out. that's a lot of cars by end of 2017. so there's a little bit of skepticism that they can ramp up to that. >> and the consumer demand is kind of amazing. that that many people would actually put money down. >> it's a really cool looking car. and it's -- you know, it's

$43,000 probably what you'd have so-t to spend. that totally puts it in an affordable range. a lot of people think it's green to have an electric car. i think people like it because it's safe. >> 70% of electricity comes from the car, so you got to charge it. >> and putting money down for one, too. >> yeah. well, it's a cool looking car. suddenly it's affordable. an update on the proposed merger between staples and office depot that everybody has been waiting for. i have trouble going to sleep last night wondering would this be the day. according to rt althoughs staples has offered to freeze prices for three years to win regulatory approval for the $6.34 billion takeover of its rival. and time inc. is said to be considering teaming up with a private equity firm on a bid for yahoo!'s core internet assets. the potential move comes as time

looks to survive. and maybe boost its digital business. you know, don't speak too early, you know both of them -- >> they're not here anymore. they moved downtown to save money. >> they did? >> they're all downtown. >> but time life is in this building. >> it's the time life building. >> they're not there anymore. the security group is even dark inside. they're downtown. >> we have another big story to talk about. this one's a fascinating one. anonymous leak nowsch more than 11 million documents from a panama-based law firm has a lot of people talking. eamon javers has the story. >> this is massive just breaking around the world. it's already being compared to the edward snowden case and the 2010 wikileaks case.

they're calling it the panama papers incident. more than 11 million documents have been leaked to a german newspaper that then cooperated with an international consortium of investigative data. it creates offshore companies for clients around the world. the law firm also operates in different jurisdictions around the world. reports show that 12 current or former world leaders maintained offshore shell companies in that data that was released. vladimir putin's name does not appear in the data but the data does detail holdings of his close friends and also 12 other world leaders around the world. here's a statement from the law firm reacting to the news that broke yesterday saying we have not once in nearly 40 years of operation be charged with criminal wrongdoing. we're proud of the work that we do, notwithstanding recent and willful attempts by some to

mischaracterize it. guys there's an awful lot to chew over in this case. we're going to hear details about this law firm and who the clients were. one of the big questions is, will american maims surface. and another big question is the international who done it. who was it that leaked this. no information if it was a disgruntled insider or hacker or some person who had access to this data. they've been komg over it for months now and starting to see the story around the world, guys. >> i was go to thank him but ask eamon a question. >> i have some questions. >> i thought of you immediately. >> you didn't see my name on the list. >> it said all one percenters -- >> i was listed -- i was listed -- >> just before, you know, before you got your story all together here, have you heard of that law firm before? >> i have not heard of that law

firm. no. >> you have no offshore dealings whatsoever? >> i can't speak to it. >> have you given money to people that might be involved with this for your own -- do you got an arm's length transaction. i'm serious, you're connected, you're in new york, you're a one percenter. >> no, no. >> i believe you. i believe you. >> i believe him, too. one of the fascinating things about this story, you're learning, you're getting an inside glimpse into how this thing actually operates. and what this firm would allegedly would do is allegedly set up boards of directors, nominees, people listed as the beneficiary owners of these shell companies. they'd actually go out and hire these people and then put them to work according to the reports i've seen. the elaborate rituals that go into setting up these offshore entities and making them look

real, or realish. it's not necessarily against the law. a shell company is not necessarily an illegal thing. >> depending on where the money came from. but talking about political names. are there other wall street fames involved we haven't seen yet? >> i have not seen any. we're scouring this last night to see which americans. i've only seen one bbc report which mentions a person in the united states. so we're going to look very carefully to figure this out. >> it's not me. >> yeah, i heard that. once again, so, definitely not. can you tell us who the person is? >> i don't want to use that name because we haven't had a chance to run down that report yet. >> is it in a bread basket -- >> no, not necessarily you necessarily heard of. not a household name at all. one of the things that's interesting to me is why aren't we seeing americans in the first wave of disclosures here?

and is there more to come. a lot of folks i talked to said they expect there will be american names to come out of this. >> do you talk to a lot of people in the money laundering world? >> i do. i spent a lot of time investigating the swiss bankers. >> putin, $2 billion, that might be an account to pay for the fees for some of his others. >> whoever it was who leaked this, to leak that kind of detail about vladimir putin's close circle takes a certain amount of physical courage, right? in this day and age, we know all sort of untoward things happen around the world. to put that information out there on the world stage say brave thing. and i thing a lot of people are going to want to know who this person was and what their motive was for doing it. >> poked in the rear with a

poison umbrella if you don't watch out. >> yeah. >> serious stuff. >> thank you, eamon. >> you are welcome. >> if you were here, i'd hug you since it's hug a newsperson day apparently. i don't know if you knew that. we just had the story last week -- it's like every day is like 20 national something or other -- >> i was going to say some days are better than others. >> fun get something hugs. i don't really like it from sandy. >> hey, we'll take it where we can get it. let's check on the markets this morning. the futures, which i was kind of surprised that the futures were higher, because oil, when i first saw it, it was down. and we had a pretty good week last week. but continuing, friday was down all morning long in the premarket. and then closed up triple digits

all said and done after that jobs report. there's now, you know, the lead story in the journal, people are suddenly betting on the depreciating dollar. that's whiy the market -- they'e probably right. we now know that janet yellen -- the ten-year still not just below 2 but 1.8 again. the dollar is at 1 .14. 1. 1.135. one of the stories in "the wall street journal" ten points. investors betting on the depreciating dollar suddenly. >> and we watched it already depreciate. >> we did. right. exactly. after saying it was going to be strong, watching it decline 10%. gold up. factors in that story as well. that's kind of rolled over, too.

since the belgium terrorist attack. for more on the markets, david kelley joins us from jpmorgan funds. and richard steinberg at steinberg global asset manager. gentlemen, welcome to both of you. >> good morning. >> let's start talking first what we heard from donald trump over the weekend. he's worried that a recession is coming. a major recession. didn't give a time frame on but he did say stocks are a lousy place to be right now. richard, what do you think about that? >> i'm concerned but i'm not worried. i'm always the valuation guy. right now, we've been the last five or six weeks you've got earnings estimates coming down, prices coming up. usually that gap is not good. i'm not worried about a major recession. dave and i were talking if the green room if the dollar does

kind of even level here on the weaker side, even though earnings have come down so much in the first quarter, you may not be getting as much negative earnings or excuses of revenues and earnings from the dollar. i think with a $2100 target on the s&p, we need a break and a rest before we move back up. >> what about you, david, recent sto the reason stocks have come -- >> first of all, this is an interview in which that presidential candidate also said he's going to pay you have the national debt in years. let's focus, the reality is we're not even close to a recession in the first quarter. this american economy, it's like a tortoise -- >> when you look at the industrials -- >> but you shouldn't. you look at aggregate amounts. that will tell you where the economy is. whenever there's a weak gdp in

the first quarter, consumption looks fine, and the economy thing about earnings, there's a lot of weakness particularly because of oil late last year and early this year. bit second half of this year if oil doesn't go down and the dollar doesn't go up you're going to get a big bounce in earnings. the earnings for in 2016, the second half of this year looking good. >> when you hear something like that, does what make you think that strength for the market is coming in the second half of the year? >> well the comps will start to get much better, but the second half, the problem is, there's a lot of space between the next, you know, three or four months, through the tough may period, june period, until that happens. usually what happens by june, people start to focus on 2017. that's, for the last couple years, because the economy has drifted along and we were getting along kind of the ghost of 2008, it didn't happen. this year is the year in which i think that people may start to

focus on 2017 earnings. right now, we're $121 for this year. but estimates are low 130s. if you assume that the fed stays low like we're talking about, you could start to see people get some -- >> but you sound cautious to me. you're telling people to not necessarily get in here? >> we have higher than normal cash levels. and with new cash coming in, we'd rather missed the 1% or 2% that we think it is in the short run. we'll likely to see a 5 or 6% healthy pullback. >> what's supposed to happen that's going to pull it back? >> well, we're going to have a lost earnings. >> in the next three or four weeks? >> the next three or four weeks, a big ideal of whether or not their actually growth coming back. >> i think the problem with sitting on the sidelines or being cautious here is that you

are paying so much for it. we've got this sort of reality rift between the actual data and the central banks who are extraordinarily dovish. because of that you've got a fund rate, 2.3. they're paying 2% real just to sit on the sidelines. that is where you just destroy the entire market outlook. because it's very expensive to do nothing when you're paying for the privilege in real terms. >> you would be saying go ahead and jump in there? >> yeah, i'd say, be fully invested. i think because the central banks have got this extraordinary policy around the world, i think the danger in fixed income is not what it should be, given the state of the economy. i think there will be investment in a balanced way. but i just wouldn't be long cash, actually paying so much in terms for the privilege. >> gentlemen, thank you both for being here today. >> thank you. coming up, hug a newsman or newswoman.

also gop front-runner donald trump getting backlash for saying the u.s. is on the verge of a recession. we just talked about it. bernie sanders and hillary clinton fighting for votes in wisconsin, sparring over dates for their debate. ben white is here to break down the political headlines. we're back if a moment. the first stock index ♪ (musiwas createdoughout) over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks.

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comcast business. built for business. welcome ba back to "squawk box." alaska air has announced a deal to buy rival virgin america. $2.6 billion. alaska air beating out jetblue which was also interested in buying virgin air. we should tell you the two ceos of those airlines, david cush and brad tilden will be joining us 7:00 eastern time. we should tell you, by the way, talking about the brands, they're going to keep both brand it' s. >> it says maybe over time, they'll leave it open to see what's going to happen. we should also tell you in

global markets, bats has announced ipo. 11 million shares $17 to $19 per share. the prior attempt in 2012 unsuccessful due to technology problems. joe. time for a round of today's top political news. donald trump predicting a ginormous u.s. assessment, banning -- trump and cruz campaigns working to keep kasich off the ballot, after the republican convention democrats sparring over dates. a day ahead of wisconsin. ben white, chief political correspondent as well as -- >> what -- >> chief economic correspondent. >> when did you become a contributor? >> 2 1/2 years. >> i can't tell you how lucky you are. >> how lucky we are. >> wisconsin right now, is there a way for him for make up, ten

points -- >> making up -- >> he was with maureen dowd, and another one, chris wallace, too. didn't he, and it didn't go that badly either. and kind of walked back somewhat from stuff in the last two years. >> right. it's not a position to be in the day before the primary where you're walking back, particularly on the heels of hurting himself with women voters. the short answer to your question is, can trump make up the ten-point gap to cruz in wisconsin. i don't think he can. i was just in wisconsin i spent some time tlorreporting there o the last few days. a lot of business folks and the establishment obviously getting behind cruz. and this weekend, on "the wall street journal" predicting this ginormous as you call it recession. i think cruz wins it and resets the race.

>> and you watch david stockman or any commercials on cable about the coming -- >> coming crisis. >> yeah, blah, blah, blah. $19 trillion is a lot. >> it is. >> but what's unclear the unfunded liabilities of medicare and social security of ten times -- i don't know if it's ten times -- five or six times as big as that. and he says he's not going to do anything with it. >> this is the problem with the entire interview that he did. he said he wants to pay off the entire $19 trillion debt in eight years by also cutting taxes by $10 trillion over ten years. i don't know how you do that without completely eliminating social security, medicare. you can't do it. things are not going particularly well for trump. a lot of his comments on the economy didn't make sense. these are voters thinking sthigs the guy we want to entrust with the economy. >> do you think that's who read that article that didn't come

with the preconceived notion -- >> i think it filters through ultimately to the electric trort. my question is how often do you see a major candidate for president predicting a major recession for the united states and saying is that the tommy is about to crash? that's an a pretty unusual thing to do. >> it's also like predicting a terrorist attack but sort of being -- >> think of the black swan. >> it comes down to what's going to happen tomorrow in wisconsin. i think cruz is going to win it and then we'll move on. >> greta, i guess did the town hall last night. and he's also going to with obamacare, get rid of it but take care of everyone. no one is going to die in the streets. >> not clear what he's going to replace it with. he wants to, at the same time eliminate the national debt while not conduct any programs and offering people more stuff. none of it adds up. >> i've seen two things, one is

if cruz wins withes with there's no way that he passes trump -- >> yeah. >> and if trump does lose, it makes it -- it makes it much harder to get 1237 or it doesn't end. >> i'll break down the numbers if he does lose wisconsin he needs 60% of the remaining delegates after that which is is not impossible but difficult. particularly difficult if momentum is moving the wrong way. he's going to win new york. >> is hillary going to win new york? >> is hillary going to win? big question, i think she will. >> but trump and cruz want kasich out of the game. trump's point is it might keep him from getting 1237. but there are other people who said this would help cruz much more to have kasich out of the race. >> it it could.

it's hard to say exactly where kasich voters would go throughout the race. it's hard to see them with trump, kasich is modder centrist. cruz doesn't have the profile. >> what are the chances that you get the conventions up in the air and then -- in what green world is kasich really that he thinks as paul ryan or somebody, you wouldn't want somebody that got 5% of the vote. >> well, that's 5% more than paul ryan has got. >> can he win eight states? >> that's the question. they can change that rule. i agree with you that kasich is probably living in a dream world that he's never going to be the republican nominee. >> i heard he's helping cruz and hurting cruz. >> nobody knows the answer to that. >> you're a cnbc contributor.

you can't give me an answer? did you wear that white suit? >> when i'm not reporting, i'm wearing a collared shirt and jeans. with kasich, you wouldn't see who he help or hurts until he gets out and the numbers change. but he's not making giant support that would make a difference. >> it may make the difference for trump at 1237? >> it may help stop him there. joe, to your point about the roars in wisconsin. is if cruz wins it's much harder for trump to get to 1237. >> plurality or majority, winner take all? >> for the delegates? >> in wisconsin. >> i believe it's winner take most. >> winner take most. but for plurality, takes most? is. >> precisely. >> i think he might pick up 37 out of 40 something. >> no, he'll split delegates there. then winner take all states coming up. and we could be coming up all the way to california, one of the last primaries to decide

whether trump gets t s to 1237. what you should be watching the obscured elections over the weekend. they say 18 of the 25 is going to be cruz supporters. ultimately, if it goes more than one ballot, if cruz has managed to pick up ballots even on states won not bound to him on the second vote, you could see them move away on the second ballot. >> this is crazy. >> it is crazy but super interesting. this step is crazy. nobody fully understands, it's wonky. it matters hugely who the delegates are. >> and the rules from between and now are going to tell you -- >> it tells you how the voting process works in cleveland. >> get yourself in my e-mail. i did stop -- i stopped following politico and -- i thought that would get rid of all of the stuff that hits my

twitter account but then a politico magazine that's just as liberal? >> the magazine is a great -- >> i got rid of it. i'm not following it either. i'm done, i'm finished. >> i'm much happier. >> oh, my, look at that. look at that. >> you don't follow me personally? >> no, i follow you. politico out. >> maybe we can win you back. >> no, never will. >> okay. >> here's the thing to know, he was never a paying customer to begin with. >> there you go. we don't charge people. >> he's not a politico subscriber. >> ben, thank you. when we come back, a shake-up in the ranks in the world's biggest investment banks we'll tell you which banks are falling and growing revenue. plus, a pga win for a former trump employee. and as we head to the masters.

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at ally bank, no branches equals great rates. it's a fact. kind of like social media equals anti-social. hey guys, i want you to meet my fiancée, denise. hey. good to meet you dennis. welcome back to "squawk box." it is time for "executive edge." deutsche bank falling from fifth to third to the top banks by the coalition.

citi bank and bank of america ahead of them. jpmorgan and goldman sachs keeping their first and second positions. on the brink of a brexit, some firms are delays it ahead of a survey. the survey also reporting that the june 23rd referendum represents the biggest single concern for businesses. and you never know on any given week, whether something just incredible is going to happen on the pga tour. in this case it was a cinderella story at the shell houston open. i didn't know i was going to watch the shell houston open. i did. and a guy named jim herman, a journeyman, clinching the win. because he won, he gets to go to this week's masters. and he also gets two years'

exemption on the tour. >> that's cool. >> herman went to my high school, from cincinnati. went to st. xavier. played golf for st. xavier. then played for university of 98. low-key guy who was an assistant pro at trump's force. and mickey gallagher, who i know. i'm telling, this guy had over 100 starts on the pga tour, never won. two top-ten finishes. he won one time on the nationwide tour after 100 starts. never been to augusta until this year when he played with friends at augusta. >> now, playing the masters. >> this week. he's 38 years old. when he got done, he had to put his -- number one, on 18, he had to wait for a couple groups to finish. there's all this water on the left. they were saying he looked like a cat on a hot tin roof. everybody else was bailing out on the bunkers.

right down the middle. 316 yards. 316 yards, right down the middle. when he got done, he had to put his glasses on. that dam hicks is a softy, so is johnny miller. neither one would end the broadcast because the guys were so emotion. >> crying? >> i was crying. and i was tweeting jack welsh said he was crying like a baby. 38 years old. >> good for him. >> i wasn't watching golf but did you watch bubba watson? >> yeah. >> what do you think of the fact that he's scared of people? >> he's scared of heights which i am, i was nodding. but at one point where he said a 10-year-old came up and asked him for an autograph and he was scared. >> scared of heights, scared of crowds, scared of the dark. scared of like his shadow. and never has taken a lesson.

>> his talent is amazing. the masters this week. he's won two out of the last four. he said i don't care if i get better at golf, i want to get better as a person. he's a guy if they ask all the tour players in a fight, who is the one guy you wouldn't help. they said bubba. bubba said he thought they meant that he could take care of himself. his caddie said, no, that's not what they meant. put us all out of our misery. our stupid brackets. villanova, biggest win ever. >> you had xavier? >> i had xavier to win. they beat villanova the last time they played. i don't know what happened. and north carolina then beat syracuse. you know biden, joe biden was at the game. he had syracuse/villanova in the final. >> wow. >> if he had gotten that, that

would have been unbelievable. last time villanova won, remember, it was against that unbelievable georgetown team from 30 years ago. this is a great game but means nothing to us. >> what time does it start? 9:00 or 10:00? >> probably too late for us tonight. north carolina they can play good part of the season, but then had weird losses but always seem to be good. >> i had villanova last year going all the way. in my picks. at&t last year, won the at&t this year. if you just did last yearyear's how would it go? >> i don't know. coming up, senator chris coons sponsoring a bipartisan bill. pretty interestingin interestin. a race to the white house. a look at european markets right now.

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welcome back to "squawk box." a bipartisan bill expected to pass on the senate floor today to defend our nation's trade secrets. trade theft cost american companies as much as $480 billion annually. according to the bill it's having a chilling effect on business, growthnd innovation. joining us on the bill is senator chris coons, a democrat from delaware. he's one of the co-sponsors for the bill. thank you for being here. for those uninformed about this, explain what the deal does. >> well, a trade secret is something that's critical to business but you defend by

defending secrets. think of the recipe for kentucky fried chicken or coca-cola. or key secrets to how you manufacture something like kevlar. when if gets in the hands of a competitor disadvantages you in terms of an investor and competitor. this is something where good old espionage has been costing companies hundreds of billions of dollars a year where there isn't a uniform faction to defend it. you have to go to state court and work through 50 different state laws. >> address this, this is "the washington post." this bill, they say, fails do to do anything substantial about the problems of cyberhacking and cyberespionage. and seriously mucks up trade secret laws giving trade secret new lessons. they compare it to sopa which is not a popular effort back in

2003. >> i strongly days agree. it's got 65 co-sponsors in the senate. we expect it to pass today. we amended the bill in the judiciary hearing process in order to address concerns raised by other senators one of them specifically if used to harass departing employees. i hope the post will reconsider but i expect it to pass. >> senator, let me ask you, if you have a federal law, that's great about making sure the nation is in one mind of thinking about all of these things. but a lot of this is coming from places like korea, but especially china. what does good a federal law do when deing with thefts from other nations? >> well, federal deal giveses you not just nationwide but international. if you're drafting a nondisclosure agreement for the folks who work for your company, you don't have to figure out a slightly different fda for states. it doesn't face all of the challenges that we face in terms

of cyberespionage and hacking. >> the biggest question is what are we doing about china? we'd have to take a much harder line? >> that's right. it needs to be a higher priority in our diplomatic relations with china. it needs to be more aggressive about our funding. every time i sat with china and the united states about the vulnerability of hacking and the loss of keeping of key secrets, it never makes it to the top of the list. there's always more pressing concerns. >> put this in context. we have the sony hacking attack almost two years ago, how would this have prevented that? or how would that have changed the dynamic in terms of our ability to stop it from happening or go after the perpetrators? >> it wouldn't have changed our dynamics in terms of going after perpetrators but not stopping it. there are things that we can and should do and are doing federally. to strengthen the cyberworkforce

federally. strengthen first responders in terms of dealing with hacking. and to share information with the private sector and public sector, the federal government principally, to make sure we have realtime speed sharing of information. this is not solving every problem. just solving one problem. to me, the biggest piece of news, you've got a democrat or republican, orrin hatch, utah, wonderful to work on this, diligently working together to craft a responsible step forward for america. >> while you're here, weigh in on your side of the election. i assume you're with hillary, right? >> i'm endorsed hillary clinton. i'm a big fan of joe biden. i'm a delawarean, i was hoping he'd be in the race. i think secretary clinton brings the skills that we need for a difficult world and challenging economy. and like forward to her winning in the fall. >> who would you like to see as

the republican candidate? >> we've got to leave that for the republican voters. >> who would be better for your candidate? >> frankly, donald trump. i think he continues to say things that are truly alarming and concerning. as i've had a chance to travel in other parts of the world in the last few months, some of his statements really put foreign leaders in a place of great concern about our path forward. because of my concerns about the iran deal, i went and visited the i aea in vienna, i went to israel and turkey. obviously, the first sentence of a foreign leader for a country is honestly, does that man speak for your country? >> a cycle of appeasement for the last eight years. and the foreign leaders loved president obama. i wonder why. >> it would put us on a new track. >> senator, thank you for joining us.

when we come back, this morning, the cdc helping hundreds of state and local officials prepare for the zika virus as mosquito season is approaching. over time, your money could multiply. hello, all of you. get organized at voya.com.

welcome back, everybody. the cdc hosted hundreds of state and local officials and experts at a zika action plan summit on

friday. meg is here with more about it. >> one of the main things they focused on on friday was the funding to respond to zika here in the united states. president obama asked for $1.9 billion from congress in emergency zika funds. congress has not allocated it. some folks saying while they should shift the unused funds from ebola to zika. the argument from the cdc is ebola is not over either. we need new funding. this was a simmering topic of conversation on friday. also, we're preparing as the months get warmer in the united states. where is the mosquito here in the u.s. there are two kinds they think can carry zika. you can see the yellow is where the albeau pictus comes. the red is where both of them are. so we talked to dr. frieden, the cdc director, on friday and

asked him your question about why are we not testing everybody when it can be asymptomatic in so many people. >> shouldn't we test everyone? >> the cdc laboratories have done a fantastic job developing tests. we have now provided nearly half a million materials for tests around the u.s. and around the world to test for acute zika infection and to test tore infection in the past. but it's not simple. zika is a newry recognized threat. we hope more commercial manufacturers will get into the test business and more private labs be able to do testing. we're rolling out testing. testing is not simple because the zika virus antibodies cross-react with other antibodies, so the cdc-developed tests are highly accurate. we'd like to see more tests on the market as well. >> he is saying a problem is when you're testing for antibodies of the virus when can look similar to something like dengue fever. >> you might think you have one

disease when it's another? >> that can cause problems in determining the results of the tests. other tests use rna. the virus rna. >> they should be able to -- they're different. every antibody is absolutely -- it's different, even more different than fingerprints. >> it's a matter of getting to the sensitivity and doing it quickly enough, as people are increasingly wanting to take these tests. >> are do they want the funding for? i keep hearing the taurg abolk funding. >> the diagnostics and vaccine development. the other thing is controlling the mosquito. there are some areas like key west, florida, which have been dealing with this as a disease vector for a while. it's about helping local governments from people to garbage men and others to help control the mosquito. >> you're going to put spray material in their hands? >> here in new york city --

>> okay. >> this is part of the local government. for example, i understand the florida keys a little better. they have a mosquito control district. there are folks employed by the government. a whole unit there. they go out and spray by helicopter. but they also climb through people's back yards and make sure they're not leaving cat saucers of water out. this is where mosquitos breed. it's being vigilant, and it's not easy. it's both pesticides and also just being really careful. >> all right. meg, thank you. coming up, guest host david reubenstein from carlisle joins us for the next two hours to talk about the economy and the race for the white house and alaska air said to be close to a deal to buy virgin america for close to $2 billion. >> it's done. >> already done. >> they're coming on. >> said to be close. depends what you mean by close. >> so close -- ny people still build portfolios

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ala . takeover monday on wall street. alaska air announcing its buying rival virgin america beating out jetblue who was also interested in scooping up the carrier. david cush of virgin america and brad tilden of alaska air minutes away. from private equity to philanthropy. david rubenstein is here to talk about his latest donation to help overhaul the lincoln memorial. tesla tops $10 billion in model 3 orders in 36 hours. the stock surging this morning. could the company be facing a major production headache? we're revved up to break it down as the second hour of "squawk box" begins right now.

live from the beating heart of business, new york city, this is "squawk box." welcome back to "squawk box," everyone. here on msnbc. first in business worldwide. i'm rebecca quick along with joe kernen and andrew ross sorkin. the futures indicated higher. dow futures up 42 points. s&p up by 6. nasdaq up by 16 after a strong week last week. oil prices which last week were down over $2.5. another to $36.76 this morning. this morning the panama papers making headlines. they're about 40 years' worth of leaked documents from a panama law firm said to detail companies located in tax havens for money laundering, tax evasion and drug deals. connection to putin and other leaders around the globe. alaska air buying virgin

america for $57 per share or $2.6 billion. the deal creating the fifth largest airline. the two ceos will be joining us in a couple of minutes to talk about it. bats global markets trying for an ipo offering. the exchange operator planning to sell 11.2 million shares. this coming across the tape earlier this morning. it's their -- if you remember, this is their second attempt. the first attempt at an ipo four years ago failed after a technology glitch disrupted the system on the first day of the offering. the economic surveys are in. one of the key areas we're tracking is how folks are feeling about the economy. how much they're getting paid and the price of their home. steve leishman is about to tell us about it. >> good morning, becky. the first of three polls that cnbc will do where we look at the economy and how it relates to politics and people's choices

on candidates. what we're going to do now is consider this to be part one of two. we'll look at their views on the economy and in the 8:00 hour we'll be back with interesting results for what they think about the candidates and their economic views. first let's look here. we've looked at the current results relative to the eight-year average of the poll. what you see is better than average views on the current state of the economy. those saying excellent, good, above the eight-year average. those saying fair and poor below. it's the outlook on the economy where we are below average. those saying the economy will get better and worse. both down with many saying it will stay the same. the idea that we're stuck in a rut here. you can see it when you look at the views on housing and wages. these are the views here of whether or not you think your wages or home price will increase in the next 12 months. let's go back here to 2008. before the recession. people were very optimistic

about their wages. went way down and have struggled to come back up to about a third of the public believes their wages will be higher and another third of the public or so believes their home prices will increase. you can see they both flattened out in terms of the increase here. seems like we are where we're going to be in terms of optimistic views. we went to step further and asked people what about your income. is it higher, lower or the same as in the past. you have a standoff emblematic of the entire poll. 28% higher with a small fraction saying much higher. 30% saying their income now is lower with a larger percentage saying it's much lower. again, 39% saying my income is the same. we want to focus on this 30% because we think there are political implications here. why is your income lower. we've never seen anybody really do this. take a look at these answers here. 10% or so of that 30% say it's because they have lost a job and they're looking. another say 12% say it's because they went from a full-time to a

part-time job. another say 14% or 15% of the 30%, again, it's a fraction of the public, remember, say they have a new job but it's at lower pay. the biggest chunk of those, this 32% here, say it's because they are retired. so this really gets at this issue of why are people dropped out of the work force, why are some people unhappy or incomes lower. well, about half of this percentage here is because they're retired. another half have trouble finding economic opportunity out there in the economy. joe, as i said, huge implications for this on the political side. we're back at 8:00 with people's views on whether or not they think trump or clinton is best for the economy. >> well, steve, we're still -- we'll talk to david about this right now. david rubenstein is here. is it the 5% or is it the sub 1% gdp? 5% unemployment that

characteriz characterizes the number? >> you have both in the economy. people have had different experiences. 28% say their income is higher. 30% say it's lower. 39% say it's the same. one other thing we chronicle, joe, is there is a lot of anger. the anger is directed in the first order at the political system and then in the economic system. after that people tend, when we ask them what about your personal financial situation? are you happy, satisfied, dissatisfied or angry. personal financial situations vary. political system, very high up. >> our guest host this morning. co-founder of one of the world's largest private equity group. joining us the ceo. >> pleasure to be here. >> when we have welch on, he knows 40,000 companies because of clayton. how many have you got? >> we own about 210 companies. >> 200.

you have a very good idea how business is. do you characterize this economy as a 5% unemployment economy or a sub 1% gdp economy? is it half full or half empty? >> i thought, up until a month ago, that we were going to head into a slowdown at the end of this year, early next year. we've had recessions on average and the last one ended june of 2009. so probably something would slow down. in the last month i've seen a real pickup. because the fed is not likely to increase interest rates as much as thought oil prices seem to be stabilizing and coming up, i think the global and u.s. economy is in reasonable shape. that doesn't mean 5% growth. it means 1.5% growth which is probably what we can expect for the next five years. population is aging and other issues. it's not as bad as i thought it would be. i'm pretty optimistic.

i'm not known as an optimist. >> the oil prices were correlated directly with stock prices for a while. they've stabilized as you head, in the high 30s. but oil was going down as the dollar was going up. that makes sense too. the more -- stronger the dollar. maybe it was always about the dollar. maybe once the dollar bottomed -- or peaked and then started going the other way -- maybe it wasn't correlated to oil. maybe it was correlated to the dollar all along and now that it's depreciated it's positive for multinationals. >> fed indicated it was likely to increase interest rates four times this year and has now said it's not going to do this. so maybe one time this year. that's put the dollar down a bit and therefore other currencies are strengthened. it's probably good for the global economy. i think people feel the oil situation has stabilized and we'll see a steady rise in oil

prices. >> do we care, then, that europe can't deflate its way -- or inflate its way into a recovery -- europe won't be as strong as we hoped it would be? >> the ecb has done a terrific job. they've made it possible for europe to grow at a greater rate than otherwise. he is the most important person in global finance. >> really? >> i think so. >> how much of it is a tenuous situation if the fed decides to raise rates again? >> we can only go with what the fed indicates. janet yellen indicated a more cautionary approach. other signals out of the fed indicate it's unlikely we'll see three or four increases. >> right now you have the market that's done quite well or better than expected and yet the ipo market and your able to exit some of your investments is basically impossible right now. what's that about? >> the ipo market takes a long time to get ready to do an ipo. six months ago it was hard.

people weren't preparing for it. there are other opportunities to get out of investments you want to get out of. you can sell a company. an ipo has appeal if you want to hold on to something for a long time. in many cases in our situation we want to exit the investment completely and not hold on to it for three or four more years into the ipo. i don't think ipo is the only means of exiting. but you are correct the ipo market is stalled a bit. it will pick up. >> the piece in silicon valley it stalled. >> prices were high. the market is reflecting that. there are down rounds. that doesn't mean the company is not good, just that it won't be as attractive as people thought it would be. at least for a short period of time. >> are you skewing between buying and selling? >> yes. >> which way? >> for the last four years the private equity has returned more money than invested.

this year has been the same. this year i think the industry will invest more than it will return. >> you think prices will come down? >> yes and also financing is stabilized. at the end of last year financing was difficult and even the first month of this year. now i think financing markets are opening up a bit. you can finance transactions in a way you couldn't at the end of last year. >> what was i going to ask you? i was going to continue along that vent. okay. what looks best if you are going to invest in this country? give me geographic favorites and industry or sector favorites. >> united states is still the best place to invest. i think europe has been beaten down and prices are still attractive in europe. we've done more deals in europe over the last 12 months than the united states. china has been beaten down a bit. there are attractive buys in china. brazil has been a disaster for almost everybody in the last year or so, but as you know for the first three months of the year the stock market is up more

than any other in the world. the currency has come back to brazil, it's probably a good time to invest there as well. i expect changes there soon to make it more attractive? >> you mean political changes? >> i suspect so. i don't know but i suspect something will happen there and i think the market is reflecting that view. >> buying oil piping manufacturers or drillers or anything there? >> well, i think around the world i do think that you'll see more energy investment than it was last year or so. i think, because the prices were so low, the entire energy industry in our country stalled. now i think people will see that probably prices will come back and you'll see more investment coming in in probably the next four or five months right now. >> you're looking at a lot of things, carlisle. >> we're looking all over the world. we think it's a good time to invest. prices will be low and stable. >> how is the washington monument? looking good? >> the elevator broke the other

day. >> i saw that. >> it's about a hundred years old. >> are they calling you for money? >> not yet. >> how long were people in the elevator? >> they didn't have that problem. it's a hundred-year-old elevator. it has some problems. recently i've been working on something else down there, the lincoln memorial. >> we'll talk more about that too. >> good. >> fix the elevator. >> i am working on it. >> how much is a new elevator? >> they'll send him the bill. >> can we say it right now? just do it. >> i told them if they need help i'll be there. >> i was stuck in an elevator once. it was erterrible. next an airline deal ceos of both the airlines will join us here on cnbc first after the break. who are you? i'm vern, the orange money retirement rabbit from voya. vern from voya? yep, vern from voya. why are you orange? that's a little weird.

really? that's the weird part in this scenario? look, orange money represents the money you put away for retirement. save a little here and there, and over time, your money could multiply. see? ah, ok. so, why are you orange? funny. see how voya can help you get organized at voya.com. they are. do i look smarter? yeah, a little. you're making money now, are you investing? well, i've been doing some research. let me introduce you to our broker. how much does he charge? i don't know. okay. uh, do you get your fees back if you're not happy? (dad laughs) wow, you're laughing. that's not the way the world works. well, the world's changing. are you asking enough questions about the way your wealth is managed? wealth management, at charles schwab.

great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important.

comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. welcome back to "squawk box." to the deal news. alaska air buying virgin america for $57 per share in cash or $2.6 billion. the combined carrier would be america's fifth largest airline. joining us first on cnbc is david cush. virgin america's ceo and brad tilden ceo of alaska air. to you brad first and explain why you pursued this transaction and what it does to change

alaska air. >> thank you and good morning. we're just very excited. the first thing i would note is the industry structure has changed. the industry -- airlines are performing much better today than they have in the decades that have passed. alaska is performing well. we thought it was a good time to grow. in terms of virgin specifically, david and his team have built an incredible company. they have a great focus on operations, a great focus on customers. built great loyalty with their customers. their network perfectly complements alaska. we're strong in seattle, portland, anchorage. they are extraordinarily strong in california. a solid base in san francisco and l.a. we think together we'll -- we will be the airline on the west coast with the largest market share. so we think the deal just makes all the sense in the world. david, walk through your thinking in terms of why picking alaska, beyond the price. i know jetblue was in there.

issue with some of the overlap. i thought that transaction given how similar you guys were made a great deal of sense as well. then what happens to the virgin brand? >> well, you know, i will say price was the primary thing here, you know. we understand what our fiduciary duty is. we're both qualified buyers. ultimately it came down to price. the alaska plan was about establishing a powerhouse on the west coast with strong presences and seattle, san francisco and l.a. so we liked that. very simply they came in with a very strong offer. as far as where the brand goes, i think brad can talk more to that. there is a lot they need to learn coming inside. >> david, your role in the future of this combined airline? >> well, i will work with brad through the integration. the day after the close i will exit gracefully, let's say. >> going to disneyland. >> brad, can you speak to the brand issue? >> david has done a tremendous

job of building the brand loyalty and an image around the brand that's so different from alaska, how do you integrate those things? >> it's true. the virgin brand is powerful. david and his team have done a great job. the brand, the company does a great job attracting new customers and hanging onto them. alaska does as well. we have been around for 84 years. we have a loyal following. i think you know about the jd power awards and so forth. i think what we'll do going forward is the alaska brand will definitely stay, and we'll work with the company and begin to understand the power of the virgin america brand and look at ways to use it well into the future. we can't say more than that now, but i do know from looking at virgin's numbers that that brand brings a lot of revenue, a lot of profit to the company. so we will be looking at what we might do with it down the road. >> you know, brad, years ago, or even within the past year or two there had been speculation that alaska itself might be a

takeover target for somebody like a delta or somebody else. how do you think about consolidation from here? >> what i would say is people talk about consolidation in our industry all the time. it's basically been good for the industry and investors. at alaska we're proud of what we have done and confident in our future. if you look at us in terms of operational performance, what we do for customers or financially the way the company has performed, it's been solid. what we want to do is go into the future on an independent basis, do everything we can for investors. we've always got to do the best thing for investors but our strategy is to run the company in a way such that the best thing for our owners is for us to move forward as a strong and independent company based in seattle. >> brad, you mentioned it earlier, it's a better time to be in this business now. would you say at this point it's -- there are those that

will argue vehemently, endlessly, just repeatedly just to the -- all the way to where it's actually monotonous. those will argue it's a zero sum game and that anything that is to the airline's benefit is to the consumer's detriment. is the competition in the industry right now not enough? is it too much? or is it like goldilocks? just right. >> i think it's a fair question. most of my background i have been on the finance side of the business and the industry has had lots of cycles of good years and bad years and all of that. it's a fair question. but what we believe at alaska and i think investors and other airline management teams are increasingly believing is that the industry has gone through a fundamental restructuring. in the old days airlines wanted to fly to every city in the country. people are more focused on shareholders and returns today.

the industry structure is healthier than it was in the past. in terms of competition, i think it's in a good place. i think the industry is more concentrated and more consolidated. but there is good competition. >> what do you expect a ceo to say, right? >> i'm curious, what -- when you look at this transaction, what oil prices did you presume would be around the next couple of years? you assumed oil would stay let's say below 40? or do you think it will go above 50 or so? >> we modeled this at a dollar and a half. current oil prices. modeled it at $2, $3. i think this transaction makes sense at any oil price. we are an airline and it's a good airline for us to be with. we just -- what we have to do is deal with the oil price environment that we are in. >> david, before you go, first of all, congratulations on selling the company. but why sell? why did richard branson also want to sell? and could you start another

airline like this today given the competitive environment? >> well, you know, i'll say as far as why sell now, it came down to first of all price, certainly, that we have a fiduciary duty and we take that seriously. secondly, this isn't about today. it's about down the road when maybe the industry is not as strong or oil prices go up and what happens when you have a $2 billion airline like virgin america trying to compete with $40 billion airline. it's a good time to do it when carriers are strong. which dictated the last cycle. as far as a start-up goes, i think it would be very difficult to do. it's impossible to get gates and slots. the competitive environment probably would not allow it. i think it will be a long time before you see a national start-up again in the airline business. >> well, congratulations to you. that's -- it's exciting -- >> thank you. >> -- for the two of the companies. i think it's exciting to have a

start-up emerge. >> the start-up was helped by private equity investors as well. >> i want to go to universal studios instead. can we change that. >> i'm going to go to harry potter. >> brad, david, congratulations, thank you for joining us first on cnbc. when we come back, presidential candidate john kasich getting an unlikely endorsement. why baron says he is the right man for the job and not hillary clinton, the candidate they originally endorsed. later, orders for tesla 3 climbing and topping $10 billion. we'll find out whether david rubenstein is one of those buyers and if the company needs more cash to deliver on the orders.

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great time for a shiny floor wax, no? not if you just put the finishing touches

on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. welcome back. among the stories front and center at this hour. fans of virtual reality may have to wait for the latest technology fix. facebook's oculus unit says it's experiencing a component shortage that will delay deliveries of the new $599 head sets. it's not known how long the delay may be. having tried it, it's so cool. >> i am ready. >> it is really -- >> ready for the future. >> i want to save the cat and

run out on the plank. if i keep falling, fine. i'm going to cure my fear of heights by doing that over and over. i want to do the friday the 13th one where you are going through a house and you don't know where he is. you turn around and there he is. >> sounds awful. then you get stabbed. >> yeah. but it's cool. >> you think of -- >> you feel it. >> and then, you know -- >> i don't know. this is a morning show. a family show. >> you know. >> we have other news to bring you. >> there are caveats. >> i know how his brain thinks. sun edison to file for bankruptcy protection. it's talking about a loan to fund orpings during the process. taiwan's foxconn signed a deal to buy sharp for $3.5 billion. we've been expecting that transaction. foxx coconn known as a supplier

apple. news on the political front. calling him the best hope for investors who want a republican in the white house barron's announced support for ohio governor john kasich for preside president. barron's previously endorsed hillary clinton over the current choice for the republican party's presidential nomination donald trump. in its editorial the newspaper said kasich outshines them both. the editor said unlike clinton has a sensible, across the board tax cutting agenda and as a republican president working with a presumably gop controlled congress would be more effective as a leader. tesla's low priced model 3 topping $10 billion in presale orders over the weekend. but -- this is the obvious point -- can they make that many, and by when? will there be a backlog?

everything is about supply and demand, phil. they're equally important. what's is your view? they have a big factory, biggest in the world? >> the capacity at the factory, 500,000 vehicles. that's the capacity eventually where it could get to. they're nowhere close at this point. if you order a model 3 right now you won't get it into well into 2018 and more likely into 2019. let's look at where the reservation totals are. 276,000 reservations through saturday night. i did the math. basically in the 48 hours from the time elon musk announced the vehicle and unveiled it thursday through saturday you had 3300 orders per hour coming out to $276 million in deposits. these are reservations, not firm orders at this point. one question that's come up over the last three or four days, will model 3 buyers, the people who actually follow through and buy it, will they get the $7,500

federal tax credit. that's phased out when the auto manufacturer builds 200,000 vehicles. they're not close to that. elong musk did a lot of tweeting this weekend. he tweeted our production ramp should allow large numbers of nonx/s customers. those ordering the model 3 to receive the credit. on friday barclays out with a note saying this is really interesting because tesla faces the question of whether or not it will raise capital. barclays believes that it will. tesla for its part on the most recent conference call last quarter said we are not planning to raise capital anytime soon. will they raise capital because they need to expand production at another plant perhaps in china or europe? again, at this point tesla saying we have enough capital. we do not need a capital raise. shares of tesla. big pop on friday. pulled back a bit in the

afternoon. guys, i've never seen this much enthusiasm about a new model. i was on vacation last weekend and got stopped by people asking me about the model 3. this really is one of those vehicles that has really captured the attention of people. >> it depends on where the angle you take, the shot of the car. sometimes it looks good. the white one pulling into the parking place. >> it looked like a prius. >> was that a tesla? >> i think it was. >> i thought it looked like a prius too. >> resembles a porsche from the front, phil. but yeah. depends on the angle. sometimes they look -- snoo this video is strange. it almost looks virtual reality, the background and so forth. i think once people get a chance to drive this vehicle over an extended period of time. the short ride on a ramp there in california. >> i don't want that!

>> that's not the model 3 there. what you're looking at there is the model x. that's the suv. >> that's the expensive one. >> good. i don't need that one. okay, all right. >> the thing at the end that was going into the parking lot just there, that was not it? >> that is not the 3. that was the x. >> i don't know who edited that video but that was the model x. >> all right. i like the other one. yeah i thought -- that's what i was saying, the angles, depending on the color and the angle it looks totally different. he is smart. the model s is cool looking. >> i like the model 3. >> good design. on top of everything else. >> joe, did you place your order? >> no. i placed my order for something else, phil. it's hard for me to change. i can't change. but it's going to be cool in august. takes a while to build one of those things. i'll give you a ride if you can fit into this thing. definitely can't get into the back seat. >> phil, thank you. >> yes, you could.

thanks, guys. oil prices falling this morning as two major suppliers, saudi arabia and iran, continue their fight over freezing output levels. at the same time output in the united states remaining high. check out wti crude at this hour, up about 12 cents below $37 at $36.91. crude oil fell more than 7% last week. joining us right now with more on this, ihs vice chairman dan jurgen. great to see you this morning. >> good morning. >> what's driving oil prices here? is it the talk of a potential freeze in production from opec or more of the story of what's been happening in the united states? >> i think the number one thing is this discussion of a freeze which was greeted with great skepticism a month ago and gained more krbcredibility withe 16 countries meeting in dohar in qatar in two weeks. with the saudi crown prince saying we don't freeze if iran doesn't freeze, it took the heat

out of that discussion. >> iran has been trying to pump more and more in the meantime to get levels up before agreeing to some sort of freeze. even if the countries agree to a freeze, i have heard from other people that it wouldn't matter because they're basically producing flat out. >> it is not a cut. keep that in mind. it would just be a message of stabilization, kind of a bridge to get to the fall when oil markets should be more in balance. but the other point you made, too, the other thing that affected the market was the sense that u.s. production was going to go down and the january number showed it hardly went down at all. still, despite the resilience, our expectation is that, given the dire economic situation for many of the companies in the united states and the shutting down of investment we'll see u.s. production come down over the next six months. >> dan, we talked about earlier the weakness of the dollar and how that in turn has probably

played into some of this. >> there is always a correlation between strong or weak dollar and commodity prices. it's not only oil that's down but other commodity prices have also responded to what has been, at least up till -- kind of a strengthening dollar. >> the deputy crown prince, his statements, why are they so significant? is he really running the country? >> the deputy crown prince is defense minister and he is also head of the supreme economic council which oversees the oil industry. he is the one who is really driving this transformation that they're trying to effect in saudi arabia which would try -- he said it. they want to make it an economy that's not dependent upon oil but is dependent upon investment and to turn saudi arabia into a much bigger player in the global economy, not just in terms of oil but in terms of finance. >> dan, also i want to ask you about saudi iramco.

the press speculated the value at $2 trillion. does it own the oil reserves that the country owns or just the refineries. >> the reserves are part of it. they ultimately belong to the country but there is discussion of whether an ipo would just be the refineries, the downstream,er o the whole company. the deputy crown prince seemed to say it would be the whole country. one other thing he said in the interview that was interesting that ties into your tesla piece that was just on the air, which he said they do want to keep oil prices lower than they have been, lower than the hundred dollars, so that oil stays competitive for a longer time. i think that is an important message. >> at what price do you think the oil fracking fraternity comes back into the market and starts drilling again? $60, $70 a barrel? >> if you're in a good spot in the permian, $40 to $45 would

get some going. i think the view is that it's probably in the $50 to $60 range. this industry has become a lot more efficient. in that range, with some confidence, and with the confidence not only on management but also the board of directors of these companies, that's when you would see activity turn up. >> final question i would ask you, given what you know about the energy industry around the world, if somebody gave you a billion dollars tomorrow and told you to invest it to maximize the profit returns, where would you put the money? >> i think there will be increasingly large number of opportunities. i think what's particularly interesting is the permian base in the united states which is where people decided, that was an area in west texas and new mexico that people decided it was -- it was all over for them, but now it's really bounded back. also, i think with the dramatic cuts, $2 trillion in cuts in upstream spending between 20 sa and 2019, i think one thing you

can be sure is this oil market will look quite different two or three years from now. >> dan, thank you for joining us today. our guest host today is david rubenstein. >> thank you, dan. we have to wait a few years, andrew, i think, though. the thing you had, it was not that clear. we need high-def. >> it was cool. >> it's cool but you need high -- it will get better and better as the years go by. >> it will. notice david asked what would you do with a billion dollars. usually i ask $10,000. >> i did give you a hard time. he was going to buy amazon. he can buy 16 shares of amazon. you have to act like a player. he acts like a player. you become a player. obviously you're not a player. i am thinking oculus, the eyes wide shut edition. >> wow. >> the vision. yes. >> do you remember -- ♪ >> yes. coming up, that's what you you were thinking, right?

>> i was not thinking that. now that you have my head there -- how sony is teaming up with a technology company -- oh, it's not for virtual reality but to use new school interactive videos and old-school vinyl to try to breathe new life into the record business. later we'll meet a millennial who is ready to shatter the myth that this generation is filled with slackers. jane wells will be along with that. msnbc "make it" report.

newly released cover version of bob dylan's "just like a woman" has been made into an interactive video allowing fans to not only choose an animated story line but to play around with the orchestrations behind the new technology putting music fans in the driver's seat. the founder and ceo of interlude and a musician himself is with us this morning. >> in this video what happens is you see an animated love story

of a couple, in the day. if you don't touch it, everything is going to be fine. i think it's just the story of the guy. but as you touch every frame inside the story you can change if they're together and in love, together and hate each other, only him or only her. so you can create one of trillions of different stories depending on how you play it. >> depending on your mood. >> exactly. >> can you make bad music, though? >> you can't. >> how do you do the transitions? >> i am originally a musician. singer in israel. because of that, it was really important to see that the creative integrity never -- cannot be ruined in any of the videos made with this technology. so when you make those choices, depending on how you make them, suddenly an orchestra can come in and join. then depending on if you are only with the guy, a mellow piano comes in. it's completely seamless. it never -- >> so in terms of making this,

you're sitting in a room with an orchestra. how many different versions or things are you playing with at one time? >> so you think about -- you think about it completely differently. you don't think about it as a regular song. you think about it as an interactive song. you do record the orchestra but you think about how could we make them to different layers that also are part of the story. so like this represents that and you -- being alone represented by the obo. >> in terms of how many versions can you ultimately make? i accept that each sound is separate -- separated. >> there are more than billions of different versions. >> billions of different versions. >> it's like one and 80 zeroes after it. >> how do you make sure the music isn't bad? >> i can sit with you and show it to you. you build with building blocks that you know each one works well. >> how long does it take to do this? >> you need to plan before a little differently but it takes

just like any regular video. >> can i do it with anything, any song? or are there a certain number of songs? >> more than that. not just songs. from bob dylan, led zeppelin but also in other stuff. you know, you remember the movie "war games"? we're creating an interactive series based on that with mgm which will have billions of different way toss watch it. >> you have to get the permission of the copyright owner. >> yes. >> is it hard to get? >> no. >> long term what do you do with the technology. on spotify if you're jogging -- a lot of people are doing this with exercise music. if you want to speed up, you can speed up the music or put on a song that's faster. this does a lot more. >> the biggest idea is stories have always been a personal thing. and because of media like television and movies they came a linear thing and the distance has grown farther and farther. this makes it very close again.

depending on how you watch it and what's your mood and how you feel it responds differently and changes. one of the nice things someone said about the jeff buckley video is it lets you adjust your sadness level. it looked at it as a sad story but you can make it a happy story and make it your own. >> how did you do this? from venture capital? >> we got investment from sa coya, nea. >> do you sell the company? >> no. we change the world. i am israeli. >> do you pay the copyright holders or do they pay you for getting people more interested in the song or video? >> right now they pay us to make this happen because the engagement levels are crazy. jeff buckley came out a week ago, more than a million and a half engagements which is real people engaging with a video in a world that everything

online -- not everything but at least half is fraud. >> thank you for coming? >> thank you. when we come back, much more from our guest host, david rubenstein. former white house chief of staff will be joining us. "squawk box" will be right back,

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in the past you've talked about how you were so concerned about the washington monument. now you have a new monument in your sightsme, the lincoln memorial. >> it opened in 1922. it was segregated. if you were an african-american you couldn't sit in the audience when it was open. you had to stand in the fields. one african-american speaker was allowed to speak. he had to stand in the fields, come make his speech and then go back to the fields. even though it was honoring the great emancipator we didn't have a way to honor him at the opening. it was built over six or seven years. it was built over a swamp. there is ground underneath to build an underground education center. when you go there, you can learn something about lincoln. >> the memorial is in pretty good shape. >> yes. but under it there is a lot of ground which we'll use for underground education facilities.

also, the lincoln memorial itself has a lot of roof repair and other damage that needs to be done. i was helping them to do that. >> why the monuments, when you look around washington? >> i live in washington. i think the government doesn't have enough money to do some of the things. the national parks service has an $11 billion back -- you know, back need of money for all these kinds of things. >> $11 billion? >> $11 billion. so i think i was trying to help in a modest way. it gets about 7 billion visitors our ears. a year. he was probably our greatest president. >> did it work in terms of the washington monument? >> i think it has. at the giving pledge we now have various people who i think are interested in some of these same areas. i will be holding a seminar about patriotic philanthropy to get them involved in some of the things i've been involved with. >> hope it works out. those are amazing treasures.

>> is your goal to get other big money involved or do you want to get smaller money involved too? >> all money. the giving pledge is designed for people of a certain net worth. fl philanthropy means loving. the government can't do everything it used to be able to do. >> david, thank you. david will be with us for the rest of the hour. the rest of the program. a lot more to talk to him about. in the next hour, bill daley discusses the presidential election, politics and money. ceo of coal fire here to talk cyber security. the company part of carlisle group's portfolio. david is our guest host. he is sticking around. "squawk" returns in a moment.

your money, your vote. donald trump predicting a massive recession and warning it's a terrible time to invest for stocks. former obama chief of staff turned hedge fund honcho weighing in. this is the so-called panama

papers reveal cash stashes of global leaders, politicians, celebrities and sports stars. out of this world. >> liftoff. >> the company owned by jeff bezos successfully lands a rocket, bringing the legendary businessman one step closer to his goal of commercial space flight. the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york, this is "squawk box." oh! holy smoke. welcome back to "squawk box." first in business worldwide. i'm joe kernen along with rebecca quick and andrew ross sorkin. our guest host this morning. i think that's why the music. we need important, grandiose music for you. wouldn't you like to redo -- >> a list of everything -- >> wouldn't you like to be --

>> it's because of my great athletic skills. >> david rubenstein. carlisle co-founder. do you have everything to take back about all of these fat cats that you're constantly vilifying when you have one who does well. look what he does by doing well. he pays taxes too. >> we can debate -- >> see. >> i knew it was going to take only an hour to get there. >> we haven't touched -- >> i wasn't going to say anything. >> you went there. >> you went there. >> i did not go there. >> somebody -- somebody -- >> wealthy people -- >> he was trying to go down the middle. you have to talk about the different sides of the debate. >> you bring me to porn and i bring you to -- >> i didn't say the phase. 90 minutes away from the opening bell on wall street. i was trying to be complimentary. the futures up about 30 points. check out the markets in europe.

asia looked ache today. >> closed! >> i know! i found that out. that looks good. 1% gains in germany and france. almost .75 points on the ftse. among the top stories, alaska air buying virgin america for $57 a share in cash. beating out jetblue. the airline's top executives joining us in the last hour. >> we thought the alaska plan was a very good plan. it was about establishing a powerhouse on the west coast that would have strong presences in seattle, san francisco and l.a. so we liked that. very simply they came in with a very strong offer. >> i think what we'll do going forward is the alaska brand will stay. we'll work with the company and begin to understand the power of the virgin america brand and look at way that we might use it well into the future. >> you saw what happened with those two shares. alaska air shares down about 5% today. virgin america up 40%.

many names in the airline space are trading higher this morning. also, orders for tesla's upcoming model 3 surging. last count reservations topping 276,000 for the $35,000 car. the panama papers, 40 years worth of leaked documents from a panama law firm said to detail companies located in tax havens and used for money laundering, tax evasion and other deals. i was wondering why it wasn't down. every time we showed it it said un. >> down for two reasons. one is the technical arbitrage and the execution risk of whether they can make it happen. >> $2.6 billion. >> we've seen transactions where the execution risk was high. >> it is down about 5 bucks. also, other stocks to watch

this morning. time inc. considering a partnership with a private equity firm to bid for the internet assets. general electric down graded. the analysts citing evaluation. national polls showing hillary clinton would beat donald trump as of today in a head-to-head contest. new results from the cnbc/all america economic survey show that the two candidates are roughly even when it comes to economic issues. cnbc senior economic reporter steve leishman is on the tv to explain. you're not really here to explain. you're back at somewhere very fancy. >> reporter: the old digs, joe. when was the last time you were here? >> yeah. it's been a while, hasn't it? though i pay jersey taxes. i do a lot of work at home, a lot of prep work. >> reporter: they'll let you across the bridge. that's great.

to the results here. surprising results when it comes to trump versus clinton on the economy. but first we want to show you the overall situation here. what the most important issue is here. the economy. the economy and unemployment, 25%. up two points from when we asked the question two years ago. second place, foreign policy, combatting terrorism, world leadership, up three points at 19%. taxes, government spending down a point within the 3.5% margin of error. 9% on health care. down eight points. the health care issue appears to be, for the moment at least, off the boil when it comes to politics. political grid lock. immigration reform, really not registering a whole lot. environment, climate change, not registering a whole lot. despite the talk about trade, again, not registering. it's the first time we have asked this.

2% public identify it as the number one issue. how do the candidates break down when it comes to who is the best candidate for. number one, u.s. economy. 24% pick clinton. 24% pick trump. the issue in the middle, 21% say none or all of the above. so the -- the really issue here being second to none. you'll see in a couple other places here -- who is best for your wages? 21, 21. 25% of the public says no candidate is best. finally, small business. another clean -- pretty even break there. even immigration. an issue you would think trump would do better on. let's go deeper and look at other detailed issues here. trump versus clinton. these are all the ones where hillary clinton beats out trump here. on trade, on health care. big margin. you saw that's off the boil. middle class and lower income. turning over my left shoulder.

trump is best on combatting the deficit and stock performance. the trump towers. large corporations and wealthy. trump beating clinton by a lot. we asked those who support trump, what are the things you're attracted to? successful businessmen was the number one issue mentioned by 30% of those who support trump. for hillary clinton it was cares about people, the middle class, lower income people and americans. for trump the issue of being best for large corporations and the wealthy may not be as much of a negative as you might think. certainly not for our viewers. becky, all the details and results from the poll online at cnbc.com. steve, thank you very much. check it out online. in other political headlines this morning, donald trump says economic conditions are so perilous that the united states is headed for a very massive recession, in his words. in an interview with the "wall street journal" he says it's a terrible time right now to invest in the stock market.

trump also says, if elected, he plans to eliminate the nation's $19 trillion national debt in eight years. we're less than 24 hours away from the next primary for the democrats and the republicans. latest polling data shows cruz winning by six and sanders winning by two in wisconsin tomorrow. bill daley joins us, the head of u.s. operations and former white house chief of staff under president obama and former commerce secretary under president bill clinton. thank yous f it sounds like we're back to it's the economy, stupid. >> it always is. that's the number one issue, obviously. some incident might happen before the election to bring up the foreign policy or terrorism issues up. it's always the economy. of the top three that steve went through, if taxes and spending, that's really -- you can lump it into the first. overwhelmingly the economy and

will always be. >> there are all kinds of conflicting signals, economists are wary. but david rubenstein has a good feel for what's happening in businesses. he has over 200 businesses around the world. david, you say in the last month you feel a lot better that there has been a significant upturn. >> because interest rates are not likely to go up and oil prices are firming up, i think the economy is in better shape than before. >> bill? >> u.s. economy is doing quite well, not only looking at labor numbers, overall. a lot of the concerns around the world, whether geopolitical, brexit or brazil or china, a lot of the issues that were there at the end of last year are still there, even though there is a certain optimism. obviously the fed's statements, yellen statements last week gave everyone a boost that there probably won't be a rate hike soon. and now the fed basically is trying to be the banker for the world and make sure that the problems in the rest of the

world don't get out of hand. i think obviously over the next couple of weeks we'll see the earnings and those companies that do business around the world, i think they will be somewhat challenged by what's going on in the rest of the world. >> there is a lot of anger in the american electorate right now. where does it come from? >> a lot of people haven't done well over the last 30 years, to be frank. wage stagnation, the spread that's occurred. for a host of reasons. the anger is real. obviously trump, sanders, they're tapping into that. and people in the business community feel that anger often by the public. and so it's real and we have to respond to it. whoever wins this election in the fall has got to respond to that through actual policies and not just rhetoric. i am talking about a campaign to try to stoke that for votes. we see that quite often lately. where are the policies to either address those problems or begin to address the issue of anger and try to get people to join

together as opposed to sort of the politics we have had recently. >> bill, you're supporting hillary clinton? >> yes. >> assuming she is the nominee, as i believe she will be, what would she do with respect to bernie sanders? how will she get him into the fold? >> i think it's very similar to 1980. you have sanders is very popular amongst a large part of the democratic base and obviously moving with an energy towards the end. so i think this will continue into june. i think there is no question hillary will get the numbers needed to be nominated, and that's the number one goal of the whole process at a convention. you'll see a continuing push. my guess is there will be a fight over how many superdelegates you have. >> you think she wins without the superdelegates? >> i do. >> superdelegates are just as good as elected delegates. >> if you look at it from somebody who is not in the political establishment, this is

the same thing as the republicans having to worry about the rules that they're going to set up. >> becky, remember, this is the process to pick a nominee of a party. it's not a national primary process. if we go to -- >> i have asked gop delegates the same thing. >> they're under the rules of the party that the person who is nominated represents. it's not an open sort of primary that you have a non-partisan primary system and everybody can run. >> that's why there is so much anger within the republican party too, the idea that your vote doesn't matter. you vote in a primary but your vote may not be represented accurately in the final decision. >> again, this is for members of a party. and you participate in the party. >> people get mad enough with the two-party system the result will be a third-party candidate. >> it may happen. we haven't seen it yet and we have had plenty of disruptive. >> he got 19% of the vote. >> he may have swayed the vote so bill won over bush.

>> hillary said she'd like you to be a senior cabinet officer would you? >> been there, done that. i enjoyed my time in washington. it's a great honor to serve the country but i think there is a new generation of people that would be able to willing. >> you don't think, if donald trump is the nominee, that he'll find a way to damage hillary clinton? >> first of all, i don't think he'll be the nominee. i feel strongly about that. two, absolutely not. general election, all of this back and forth for the last number of months, this is in a small space compared to the general election electorate. it's a very different electorate. what donald trump has gotten with 35% of the vote in all these primaries or caucuses or whatever he has done fairly well at, pales in comparison to the sort of voter profile that comes out in the general election. >> you think cruz or paul ryan would be a much stronger candidate and make it much more difficult? s >> i think any of the above would be much stronger than trump. >> why do you think trump is not the nominee? >> take the last week, his

comments about we're due for a massive recession. someone who is trying to move things for his own argument. i am a businessman. i can change this. we'll have a terrible recession so i'll save you. >> if he really believes he'll be president, he should be saying it's a great time to buy stocks. >> i think he is trying to set up -- >> if he believes he will be elected president it should be a great time to buy stocks, shouldn't it? make america great again. >> >> i don't think he thinks that far ahead. >> we only have obama for six months. why say it's going to be a massive recession now. he's trying to talk about the $19 trillion in debt. it's like a david stackman argument. >> read the interview he did in the "wall street journal" where he talked about how he would get rid of the debt in eight years. >> not do anything with entitlements. >> it's crazy stuff. at some point especially in the general election, would he do three one and a half hour debates with the democratic

nominee and hold up. >> you think he loses in the primary system or at the convention? >> at the convention. i don't think he'll have the 1237, and after that it's all bets -- everything is on the table. whether it's cruz, whether it's somebody else, if they go past two ballots. it's katie bar the door. you could have speaker ryan or someone else. you would have a difficult race in the fall. >> hillary said, i would like your advice on who should be her vice presidential pick. >> tim cane. alfranken has been mentioned. he has been a serious senator since he has been there, in spite of the fact when he got elected people said, oh, this is just a comedian. he has been much more serious over the years. i think she has a couple other -- i like tim cane. a governor. supporter of virginia. somewhat moderate but a progressive on things that i think the general election will be very strong on.

>> the toughest job in washington other than being president is the chief of staff in the white house. >> right. >> you would never want to do that job again? >> no. thank you for the offer, though. >> cabinet member, though? >> i've been there. >> terrible experience as chief of staff -- >> no, i didn't. you don't believe that, joe. i didn't. it was the greatest honor. >> you were so smart to get out of there. what really happened? will you write a book. >> i don't write a book. >> we'll go to break. can you tell me what really happened before you leave? >> it's pretty obvious what happened. i wanted to leave. >> great to see you, bill. coming up next, we'll head out west to find out how one usc trojan hoopster is trying to help millennials shed the slacker label, right, jane? >> that's right, andrew. pre-med. basketball player. portfolio manager. you'll meet a 20-year-old who

will make america great again when we come back. ♪

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well, do you think millennials are slackers? think again. jane wells joins us with one story of a young man who is

breaking the mold. hey, jane. >> hey, joe. as we head into the ncaa men's basketball championship tonight i want to show you a picture from this weekend. one player from usc was among those honored at the final four. he is there, number 13. third from the left. honored by the national association of basketball coaches and all state for being stellar off the cart. junior sam dylan, probably will not be the next steph curry. at the age of 20 he is proving that millennials are, well, amazing. a biology major. he hopes to become a brain surgeon. started a non-profit, helped to coordinate a medical clinic for the homeless in l.a. when he was 18 he got his series 65 license. we have confirmed this. started his own investment firm with 43 clients. $3.5 million under management. i talked to a client. her portfolio is up 12%. dylan says he is beating the market, adding more clients included two guys headed to the

nfl draft. he talks a mile a minute because his brain is all over the place. >> at times they would be like small enough like 10,000. i growew from there. i know i'm young. i realize. >> you can't even buy a drink. >> i'm not even 21 yet. three weeks. let me tell you the long term goal. in ten years you have a huge building. one side quest investment firm. the next side my health practice. a whole hospital. >> sam does not lack confidence but he does lack sleep between school, basketball and his firm and non-profit, he only sleeps a few hours a night. his first client was a friend of an uncle who gave him 20 grand. his best investment, facebook. his worst, chipotle. >> if you say -- do you think slackers are -- millennials are slackers and then you say here is one person that breaks the

mold -- >> [ laughing ] >> i mean, if you can only find one out of -- do you know -- there must be millions, huh? >> i'll tell you. i am the mother of two millennials and they are not slackers. i think we have this whole sense of they feel entitled and don't move out of their parents' house. >> go on. >> mine are out. well, not one. she is finishing up law school. whatever. okay. that's another story. but these people, since the recession, have had to make their own -- they've had to imae their own economy. i think they're the most entrepreneurial, energetic, different-thinking group we have had, i don't know, ever maybe. >> all right. well -- >> and by the way, tens of thousands of them served in the military. i mean, they're not these sort of -- they have been overseas. they have done things. it's just -- this is -- i know i'm getting crazy. this i think could be the next great generation. okay, i said it. back to you.

>> for 10,000 years people have been saying that the next generation is not as good as the current generation. it has not been true ever. no doubt the baby boomer generation was the best generation ever. >> no way they're catching us. no way, jane. you can talk until you're blue in the face. at least you made me think about there may be some small positive somewhere. >> keep hope alive, joe. >> hope springs eternal. coming up, long-term "squawk box" fans know and love the animal orchestra. up next, we're considering some new candidates for stocks to watch. an updated animal orchestra. carl says he prefers the acoustic version. we'll hear it right after the break.

get off your [ bleep ].

♪ ♪ ♪ [ organ sounds ] >> a couple of bars for carl. i don't know if he's watching. but that was viewer generated. big fan of the old animal orchestra which had a lot of different sea animals, otters and the like, dolphins. this is absolutely new. these are otters playing the organ. really well, i think. so we're going to have a little bit of a battle of the bands. >> i like it. >> we haven't done this in a while.

>> carl is not here. >> i think he is with us in spirit hopefully. anyway. there is the old guys. they're timeless. those white dolphin -- what are those things? >> walruses. belugas. >> belugas, i think. yeah. we'll be right back and talk about staples. we could talk about staples. this is even better.

♪ and i think it's going to be a long, long time until touchdown brings me around again to find i'm not the man they think i am at all ♪ ♪ welcome back to "squawk box." here is what's making headlines on monday morning. four years after its initial public offering failed exchange operator bats is trying it again. it hopes to sell 11.2 million shares at $17 to $19 a share. publisher time inc. might partner with a private equity firm. according to reuters which says time has not actually chosen a partner but is following talks

with several firms. time's former parrot company time warner had weakened success as it's "dawn of justice" movie topped the box office. if you take the two weeks, totals at about $261 million. all right. staples. here we go. reportedly offering to freeze prices for three years to win a regulatory approval for the $6.3 billion takeover of rival office depot. shares of the stock this morning, neither one of them is doing much. andrew. all right. we're going to talk about going to space. check this out. jeff bezos' space company skw successfully landed another rocket. the landing happened less than five miles per hour. take a look at this. the firm's third successful trip in four months as it aims to start commercial passenger trips

by 2018. by the way, talking about people who like to go to space. richard branson, i should say, commenting this morning on the virgin america-alaska airlines deal saying he is sad about it. he says, i would be lying if i didn't admit sadness that our wonderful airline is merging with another. because i had to take some of my shares as non-voting shares reducing my influence over any takeover. >> so he would have voted against it. >> he is very proud of the company, obviously, and what they were able to do to create it. it's sort of an interesting thing to see hours, of course -- >> it was weird to think of him selling because he is somebody who likes to come in as an entrepreneur. david cush, the ceo, said he didn't think he could create this airline today. we'll move on to edwards, life sciences, leading innovator for structural heart disease and critical care monitoring announcing data on its

transcatheter heart valves. studies showing a minimally invasive procedure to replace the aortic valve is superior to open heart surgery for certain patients. joining us is the chairman and ceo of edwards life sciences, michael musilem. isn't it always preferable not to do the open-heart procedure, michael? it's still not safe enough to replace that completely? >> thanks. that's a great question. and good morning. you are right. patients would obviously prefer a procedure that's less invasive and allows them to recover quickly. this trial was to do a deep scientific analysis of this. it studied what would be their expected mortality and the other complications that go along with it, the stroke risk. what was so encouraging is that you had compelling data that

said, no, actually on measures like mortality and stroke actually the new procedure is performing even better. and so talk about a procedure that would be preferred, it's moved into a new category. >> eventually, i would think, that's the goal, isn't it? to do everything minimally invasive? don't you need a big saw and you go through the rib cage and stop someone's heart? it sounds like anything is preferable to that, right? >> no. of course. but you know, those kind of technologies, of course, it's seductive. but the key for somebody like us is to prove it with evidence. >> right. >> this has been a long journey for us. the valve was first approved in europe in '07 and approved in the u.s. in 2011. this trial that was just reported this weekend actually started just at the eve of approval in '11 and we're getting results now. what happens is this will open up another group of patients that become eligible for it and we're starting a trial right now, actually, to even study

another group of patients that have this severe aortic stenosis. their heart valves closing down, but they're at low risk to go through open-heart surgery. we shall have the results in a few years. by doing this thoughtfully and with a lot of evidence, it gives the people who practice medicine and pay for it a lot of confidence that this is the right thing to do. >> you don't go through the femoral artery -- it's a port system or something, right? you go around the ribs or something to do this? >> no. actually, the preferred approach is what's called the transfemoral approach. >> wow. >> hole in the upper thigh and go right m. it's done every day in cath labs. >> not in valve replacement. >> as a matter of fact, even there is physicians who are doing this without general anesthetic at this point. patients are going home in just a day or two. it's been remarkable progress. it's been one of those wonderful

stories of getting it better and better each time we evolve along. this new heart valve system is pretty special. really a game changer. >> where is the most problem with valves? it just depends on the individual? it's not always hereditary, right, but the aortic valve and bicuspid, you can replace any or all of them? >> so there's four heart valves. the disease we're particularly talking about is something called aortic stenosis. this is a constricting of the heart valve that's on top of your ventricle, one of your most important valves. this often doesn't get diagnosed. as that closes down you lose energy, it becomes harder to breathe, and it gets misdiagnosed as just old age and actually it's a heart valve disease. all the valves have disease implications and actually we're pursuing new indications to go after the mitral valve, cuspid.

it's a fun time to be in structural heart disease because the opportunities are so significant to make progress for these patients. >> what's going to happen to all the thoracic surgeons? what will they do for a living? >> they very much have a very vital role in the future. we'll need them. they're going to do the more complex things, and we're going to need that because, you know, we're going to survive our first interventions with stents and so forth and we'll need those surgeons. so they've got a vital view. and plus we're developing new innovations that only surgeons probably could handle. >> it's a huge -- you can tell from the stock price that, you know, this is a big deal for your company. we'll have you on again. keep, you know -- you working 16 hours days, seven days a week? i hope you're taking this seriously, michael. we all want you to do really well with this. are you? >> yeah, thank you. we have an incredible, talented group that does work 16 hours a

day. >> good. we need this. he wants to make sure you don't need the procedure. >> exactly. all right. >> if you do, call us. >> no. i'm -- hopefully not. we're all getting older. most people are, i feel like. back to our guest host, david rubenstein co-founder and co-ceo of the carlisle group and also a fund raiser machine. you speak to lots of investors, in part because you're trying to -- >> raise money, yes. >> what is the sort of feeling especially internationally right now about what's going on in this country? >> well, in terms of the economy? >> in terms of the economy but also the political. >> dealing with the economy first. most people think the u.s. economy is doing extremely well, more and more people want to invest here. raising money, i won't say it's easy but it's easier than you might expect. >> easier than two years ago? >> yes, because the returns for private equity have been consistently better than anything else. so yes, money is overflowing.

every one of our funds has been over subscribed and other private equity firms have had the same phenomenon. >> how many of these people ask you about politics around the world? >> they do because i worked in the white house and people often think i know something more than i probably do. >> you also now that real estate funds, hedge funds. speak with the hedge fund world right now, which is that so many bold-faced names we talk about are suffering. they're having a hard time at it. >> it was difficult last year for many hedge funds. there are so many hedge funds. some have done extremely well. some of the visible ones haven't done well. some in the prominent stocks didn't do well. but there are good ones out there. >> you still think private equity is it? >> it's out performed every asset class. some hedge funds do better than private equity from time to time. >> people say if you leveraged the same way a private equity firm might you would get to the

same place. >> some people always say those kinds of things. why do smart people all over the world put their money? private equity. they've analyzed the data and realized they will do well there. >> the new yorker piece. it took on the issue that said he is a great philanthropist but he's also a beneficiary of the carried tax policy. should the loophole be closed and whether that money would go to the kinds of things you've ultimately given your money towards in washington. >> the presumption is that if people pay higher taxes the money will go to the thing they want the money to go to, which usually doesn't happen. in that case they indicated i had given away basically half a billion dollars and that, if i had paid higher taxes, you know, the government would have given the money to the same thing.

the government wouldn't give the money to the same things in my view. the idea that i am giving away the money to preserve my tax status is ridiculous. >> where do you stand on that particular tax policy? >> what i have said consistently is congress has the right to make the tax laws. i don't make the tax laws. i didn't make this tax law. i am not going to be involved in making the next tax law. i think congress should have comprehensive tax reform at some point in the next congress and they should look at everything and everything should be treated equally. a private equity should be treated differently. everybody who benefits should be treated the same. >> in the last five years i have not talked a member of congress about this. it's not one of my main concerns. >> we'll leave it there. stick with us for the rest of the program. we have about 20 minutes to go. >> i would be disappointed if we

didn't talk about carried interest -- >> we'll get to that issue several more times. >> we should have a special on this the show. >> i don't know why we haven't had a special, actually a series. carried interest -- >> feature film too. >> it will be part of our "american greed" series. >> part of our "make it" series. when we come back the threat of cyber thieves. $440 billion lost globally to hack attacks last year. what companies should be doing to protect their data. the ceo of coalfire joins us next. who are you? i'm vern, the orange money retirement rabbit from voya. vern from voya? yep, vern from voya. why are you orange? that's a little weird. really? that's the weird part in this scenario? look, orange money represents the money you put away for retirement. save a little here and there, and over time, your money could multiply. see? ah, ok.

so, why are you orange? funny. see how voya can help you get organized at voya.com.

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welcome back to "squawk box," everybody. among the stories we've been talking about today, anonymous leak of more than 11 million documents from a panama based law firm. ayman has more. >> reporter: they're comparing this to the ed snowden revelations and the wicki situation in 2010. it's called the panama papers incident. it broke internationally yesterday. the panama papers consists of about 11 million documents leaked by an anonymous person to a german newspaper and shared with a consortium of reporters around the world. it comes from a panama based law firm which creates off-shore shell companies and allows the people to do whatever they will with those companies.

the reports say that 12 current or former world leaders maintain the off-shore companies. vladimir putin's name does not appear in the documents themselves but the data details the holdings of his close friends and inner circle. also a statement from the law firm. this is the panama based law firm. they respond, we have not once in nearly 40 years of operation been charged with criminal wrong doing. we're proud of the work we do notwithstanding recent and willful attempts by some to mischaracterize it. i have just been in an email consultation with the department of justice. they say they're aware of this but have no comment at this time. >> thank you for that. average spending for corporate cyber security increasing more than 20% last year. data breach incidents outpacing the spending by 30% worldwide. larry jones the ceo of coalfire.

it's a carlyle portfolio company. what is it exactly that you do when you're helping amazon? >> we're a trusted security v a advisor for many of these firms. we answer the questions how safe are you? how safe is your environment, your networks and how do you close the gap in that security? we work for various institutions in the financial services space. we help large insurance companies look at their board of directors and how do you manage cyber security -- >> a consultency as -- are you going in and implementing plans? >> no. we are an independent, trusted advisor. as a board, you would not hire on the financial side a financial company to actually do your audit. you would hire an independent auditor to come in. we're very much like that. >> what do you make of the big companies like amazon or google. do you think there are not just

cyber security threats but actually people who have breached. when you think about companies that are undisclosed. companies like google or amazon. it's complicated to go public with that information given how much of the web, if you will, they own. >> i think every company is defenda difficult to think about going public with a breach. companies are breached all the time and many don't even know they've been breached. if you do know you have a fiduciary obligation to investors and the public to let people know. it really is a judgment call on the business side on your crisis management team. >> is the breach coming now from corporations going after other corporations in the united states, coming from foreign governments or foreign hackers who are not affiliated with governments? >> it's from everywhere. there are a lot of bad guys out there and they represent either nation-states which we have heard a lot about. they are independent hackers using opportunities for fraud and there are companies that hack into other companies.

traditionally in the u.s. it's not about companies attacking companies to get the ip. it is really about bad guys trying to make money at this business. >> where do you land about encryption, the role of government and its ability to access information? >> it's a sticky issue obviously. it's the tradeoff between security and privacy. and every company really has to make their own judgment call as to how much they're going to protect the privacy of their employees, the privacy of their clients' data. in europe it's actually a different story because, obviously, in europe the bar and the standard for privacy and protecting individual information is much higher than it is here. and therefore it gets even more difficult. we advise our clients to really think about the tradeoff between how secure do you want to make your environment versus how protective of the individual's identity and information. >> as a consumer i am pretty wary. so many companies are asking you for all kinds of information like your birth date, social security number.

it seems like it's not necessary and i don't necessarily trust that they'll protect it. >> i can't comment about whether it's necessary. there is a lot of information flowing in all of our enterprises. we try to help clients lock that information down. identify what is the most critical asset that you want to protect and how do you protect them. as we all know it's never 100% safe. as a consumer we should be worried. >> the final question. how many pass words do you have? >> probably about 12. >> about 12? do you have one that you use on everything and then a couple -- >> i do. >> i am always trying to figure out what the proper security protocol proper security protocol. >> i'm a typical consumer, i should be using tools -- >> i hope you're not a typical consumer. >> do you ever get e-mails from people in subsaharan africa actually asking for money and

that you'll get a reward -- >> i'm not getting any of them. >> you know this guy? >> if it sounds too good to be true. >> he's stuck over there. >> probably not likely you'll get money back. >> right. >> wow. >> thank you. >> great to see you. coming up, jim cramer joins us from the new york stock exchange. we'll get his take on the day's top stories when "squawk box" comes right back. with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks.

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get down to the new york stock exchange. jim cramer joins us now. easier to pick stocks or tonight? do you have a high degree of confidence? after that left game, they left it all there, didn't they? >> it's so interesting to say that a lot of people say you can't keep doing what they're doing. i think they're a miracle team. i think jay wright is a guy recruiting people whom he can coach, not just great players. they're still underdogs. because they're still underdogs by two, i like them. >> against the 76ers? >> geez, yeah, they probably could beat the sixers. the sixers will probably want to keep losing -- they've been

losing three year now to get these top drafts. it's a five-year plan. >> xavier is the last team to beat them. i'm still pounding xavier. i had villanova going all the way last year. i wanted villanova/syracuse, that didn't happen. >> that would have been the biden, husband and wife final. i think dr. biden went to villanova. i think joe was a syracuse guy. >> that's why he picked them. >> that's why he had those two. >> you didn't see that golf did you yesterday, jim? turned into such a great story. >> no. i was all college sports. >> yeah. what else is on your radar today? you going to miss virgin atlantic? >> i thought that was an interesting deal from the point of view that the airline stocks have been terrible of late. it looks like alaska has been opportunistic. what a balance sheet they have. i think the life science

interview was amazing. you know better than anybody, this is the classic better mousetrap. these analysts should have gotten more behind it a long time ago. this company should have been bought along time ago by someone who understood the power of not breaking the chest cavity open. >> turn the heart off, go on the other machine and stuff. i wonder if you can eventually have, like, intuitive surgical do the minimally invasive procedure. where you almost go through an assembly line. >> that's the future. >> maybe it is. where they don't screw up. >> and it's made in america. smart guys this is what progress is, if they let medical be unimpeded. >> right. our parents, jimmy, are getting at an age where they need to worry about these things. >> we had this debate. my father was going to be a test guy on this he was able to beat

it. you're right. >> this is not for us yet. >> all right. >> some day it will matter to our generation, too. >> you bet. >> coming up, final call from carl, david and more. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪

♪jake reese, "day to feel alive"♪ ♪ [engine revs] ♪ ♪ [engine revving] the all-new audi a4 is here.

trolling for a gig with can't blame you. it's a drone you control with your brain, which controls your thumbs, which control this joystick. no, i'm actually over at the ge booth. we're creating the operating system for industry. it's called predix. it's gonna change the way the world works. ok, i'm telling my brain to tell the drone to get you a copy of my resume. umm, maybe keep your hands on the controller. look out!! ohhhhhhhhhh... you know what, i'm just gonna email it to you. yeah that's probably safer. ok, cool. welcome back.

we should give our special thanks to david rubenstein. >> my pleasure. >> great time talking all things markets and politics. >> hope you come down to washington. >> we will do that. >> maybe do the show from the lincoln memorial. >> can we coordinate that? >> anything you want to see, done. >> thank you. join us tomorrow. "squawk on the street" begins right now. ♪ good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber, nice to have the band back together. dow is coming off the highest close since december 4th. something for everyone today. an airline deal, some fed speak, futures in a tight range. oil in focus after last week's 6% drop. the federal reserve kicking off a series of bank reform meetings today led by