pledging new details on tax reform. and repealing obamacare, i don't know. monday, may 24th, 2017. "squawk box" begins right now. >> announcer: welcome back, you're watching "squawk box," live from the nasdaq market site in times square. ♪ good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernin and andrew ross sorkin. we have the prince national anthem playing. let's take a look at equity futures. things have been markedly higher after the results of the french election came in. it was not a deviation from what was anticipated, but we have some elections that have surprised people with the uk brexit vote and other things. the worst case scenario, according to what market participants have been watching. do not have a far right and far

left candidate the only two options. two candidates who wanted to take france out of the european union. we do have marine le pen. and centrist french-elected macron. because of those results, you can see the market is picking up a little bit of ground. again, this is not unanticipated. this is what most people expected would happen here. there is one candidate that would keep france in the eu. dow futures indicated up by 219 points. s&p futures indicated up by about 29. and the nasdaq up by 58. friday was a down day for the market. but it was still the best week the dow had seen since the beginning of the march. the s&p 500 and nasdaq best in two months. overnight in asia, take a look, japan up 1.3%. hang seng higher, 0.4%. shanghai composite was down by 1.3%. in europe, early trading, again, based on what we're seeing in the election, we do see stocks

across the continent. in france, markets are up by 4.3%. the dax is up higher. ftse up in europe and spain also higher. taking a look at the euro. euro versus the dollar at 1.0871 right now. if you take a look at the ten-year note in the united states, treasury back by 2.3%. >> and nate silver, his point was, okay, with clinton -- yeah, with hillary clinton and donald trump, she was supposed to be up by 2 or 3. with brexit, le pen was supposed to be up by 2 or 3, macron is up by 30 points. a surprise in this regard. especially since he actually won

a mru plurality. >> she is an investment banker? >> yeah, but he's a former socialist. isn't that redundant? >> marine le pen may not be. >> yeah, but she's -- her economic policies are way to the left. the only thing -- she's only right in all of the crazy things that, you know -- >> taking them out of the euro. taking them out of the eu. >> yeah. right, but the most conservative person in france, nelson rockefeller, remember he was a republican, that's about as conservative. >> what's interesting both of these candidates have no representation. there's 500 people in the french assembly. two of them are in marine le n pen's and zero in macron. it just started in august. >> it's like new. they've got something off the wall. >> i know a guy who knows the answer. we're going across the pond.

wilfred frost is in paris, he's standing in front of the arch de triaee jaap -- >> wild celebration at the headquarters a devastating result for the two main parties here in france. coming third and fifth respectively. the first time in 60 years that neither party will contest the second round rundoff of a presidential election. of course, due on the 7th of may. but this is a wake-up call for political elites across europe regardless of what happens on the 7th of may. and last night was close three, fillon and jean-luc melenchon coming in at 20%. by the way, markets are

rallying. here are the main reasons why the polls got round one right. and round two, they're predicting a very strong victory for macron. and the third is that marine le pen did not win the first round, she only came second. but could these expectations are wrong? it's worth noting that jean-luc melenchon, far left candidate who won 20% of the vote has not endorsed emmanuel macron. and this is how le pen is trying to position herself overnight. she's calling on, quote, all patriots to free france from the arrogant political elite. she is labeling mr. macron as heir to the current up popular francois hollande. and she is framing this coming vote as a referendum on globalization, which she says is threatening french civilization. those comments late last night. but her job, as user already said, is incredibly tough,

highlighted by the pretty severe and immediate protests that broke out over france against her. so quickly last night. here's some video. those protests here all it be in metropolitan paris which is of course another region that supported her. but it highlights how tough her job will be to build a coalition from here. and the markets are focusing on that rallying significantly, the euro, of course, up about 1.3%. french banks up significantly. up nearly 10%, guys. >> appreciate it. thank you for helping us with that. joining us for more on the french election, the u.s. managing editor at the financial times. in the meantime, one the things that wilfred was just commenting on was whether or not this is a referendum, if you will, on globalization? and given all of the columns you've written about globalization, i'm curious about your answer. >> in part, it's a referendum

against globalization, on globalization. it's also also that the establishment in the system -- >> isn't that the whole idea for globalization? >> well, not entirely. but the key point is this, right now, markets are celebrating the fact that macron is in the lead. they also note the fact that two-thirds of candidates -- two-thirds of the vote of candidates were outside of the mainstream. were outside of the establishment. this is a howl of rage against the establishment right now. i was in paris recently, and people being frustrated with the status quo is very significant. >> but it represents much more of a stabilized version of -- no? >> absolutely. and the reason why the establishment is trying to get voters to rally around him right now -- >> i thought you said he's anti-establishment? he's not establishment and is

establishment? >> well, he's trying to be anti-establishment in a catful way. he's trying to rally around that and does appear to be the acceptable version of anti-establishment. he's anti-establishment like if you like. because he doesn't come from a private system. as joe says he has his own system, enmarch. >> does that mean march on? >> it means march on. for the brexit campaign, take that control. it's not about movement or the sense of verve, motion, activity, it's not about the status quo. so macron, is, if you like, anti-establishment vote. but that anger hasn't gone away and it won't go away. and the question of whether he's going to satisfy the frustration is going to be interesting. >> it includes lower corporate

taxes and markets rally around the world. does that work in europe, too? is there any language if we do -- isn't that -- that's not what's happening? >> it is isn't a way. in some ways, these no different from macron to donald trump. donald trump came in on the anti-establishment vote and he's not that actually anti-establishment. but with lower taxes and the supply side, reforms and almost are keynesian structure. >> last week, we talked a little bit about how this message is being heard at the eu. and the former ambassador to the eu, are they doing anything as a result? because the policies in brussels are what led to what we've seen around europe. and in britain, just the frustration. are they doing anything to loosen things up so that people maybe would look at them not as the evil empire? >> if you want to be in this,

they're not rolling them out fast enough. if you want to be optimistic, look at the rest of europe, it's all what i call cliff dancing. europe goes to the edge of the cliff, looks over the edge and then pulls back. and what's happening right now, especially you have a sense of political crisis that's fullest for europe to recognize there's a problem. and maybe just maybe that will galvanize them into some kind of action reform. >> it seems a little late at this point and still not be -- >> time and again, with a bleak crisis, every single crisis that europe has faced, they've gone to the edge of the cliff, they've once panicked. there's been headlines saying crisis, crisis, crisis. and the last minute, the sense of crisis actually forces them to work to consensus. >> we'll have the italian prime minister on later on this morning. what does it say? >> it says if you'd like to be optimistic, but right now, the

sense is just about holding. remember, we had the vote in netherlands. again, the centrist candidate, he defied the people worried about it coming through. but you can actually argue that maybe just maybe what we saw with donald trump was actually the high water mark of populism. and we're seeing that reaction right now. i think it's a very unnerving year in europe right now. >> 61-39 is the latest for macron. >> you've got your own accent that you're good at. >> i also live in new york now. >> i just heard -- do the macron for me. >> she did it earlier. >> macron. >> macron. >> can i just say one tiny thing, though. a french friend of ours telling me these days, the french

schools are out every other day because of what they wall le peace. teen age kids especially campaigning against le pen against all kinds of things. that's the kind of political atmosphere that is not going away anytime soon. >> the march. like an anti-trump march. people galvanized. i remember it, though. >> you know, in the '60s. >> look, everybody goes through college where you get rowdy. >> right. >> rebels without a clue -- cause -- >> rebels without a clue -- cause. anyway, we bring in market guests here managing director of fx. and also allison deans, founder of a.a. deane's advisory. a friend of bill.

a.a. advisory. >> so strosberg -- >> huh? when i hear that song, doesn't everyone think of casablanca. >> i know you love france just like i do. >> what's that? >> i know you love france just like i do. >> i do, we stayed -- buddha bar, right? >> hotels are a lot cheaper in paris. >> you liked that, too? >> yeah. >> so this gets you more excited about global markets now? i don't see how this is different than what are the consensus is. i'm surprised with your response to that. >> well, there's consensus and i think people are worried. i keep reading just don't be in europe. don't inrest in europe right now because there's so much political uncertainty. the consensus for le pen would win, what i was seeing was, i was reading the market pundits

saying the insight was keep away from that. i think that's why you're seeing a bit of a rally. people were choosing to stand on the side shrine. a sideline. now we're going towards centralism. >> and i just wonder dealing with mentioning, maybe the bureaucrats are seeing it's a wake-up call? i mean, it would be nice to get a fiscal authority, nice to do things that united entities do, right? they don't do that now. >> it's still a long way away. >> yeah. why does this make it any closer? >> it makes it closer, especially what you have, macron and le pen, a clear fork in the road. macron is for a lot more europe. he wants to work closely with germany. he's the kind of person that may -- >> does that fit the structure of the eu? why is that good? i think it's almost a negative. >> it takes time. you got to give them time.

i think one interesting sign out of all of this, this makes brexebrex brexet harder. i think an interesting side note for all of this britain suffers. >> and macron could coordinate negotiating position, it's going to be very hard for the uk to actually get what it wants out of europe. >> there you go. >> i don't know -- >> nonech these things will -- i mean, we knew all of this on friday. >> well, i think the key thing is she didn't beat her polls. that was the big take-away. if she doesn't beat her polls that means she's not able to compete in the second round or a 20% lead. that's the market bet right now. >> i'd like to say one thing, maybe you should be 100% complacent for a win. there are two things that could

happen. one is scandals in france, exactly. and another thing is the paris attack. i was actually near the champs-elysees when the attack took place. >> were you? >> yes, i've been impressed with the paris attacks, there's been so many over the last year, and yet if it was devastating it would affect the vote. and in germany, there's an important german election coming up. the thing that merkel and advisers are concerned about is a big german attack which could galvanize to be anti-merkel. so the question to provide these unexpected surprises cannot be ignored by investors. >> a government shutdown on friday? >> hope not. my sense is just along the lines what you're saying, the eu will get right to the brink and it won't happen. but i think there will be a lot of gamesmanship up until then. >> all right. i've been seeing people using

bri brinksmanship. >> people have been using it properly without the "s." >> alison, thank you. >> i thought you would be like with the 90% tax rate -- >> how much money do you think we need? >> 15% of the vote -- >> it's actually 100% of the tax vote. >> i thought it was 90. >> 90. >> my hero. come on. . how many yachts can you really ride behind? you can only water ski behind one yacht at the time. right. they don't need -- that's a wealth tax. not an income tax. you don't get the people that already have it. you got to get them with ail

wealth tax. 30 -- >> 30 on the wealth? >> 40. >> that's amazing. >> all that. >> bernie was watching from his lakefront vacation home up in vermont. he has two houses. coming up, guys, we have a busy week in washington. president trump promise something details on tax reform. we will see what that looks like later this week. and urging action on health care. plus, congress has some friday to strike a deal or risk a shutdown. we'll tell you what to expect whether it's brinkmanship or brinksmanship. take a look at this. ♪ for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities that traditional assets can't.

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welcome back to "squawk box," everyone. take a look at the u.s. futures this morning. riding high after the results of the french election came in as expected. with the results we've seen lately in the election, that itself is a surprise. dow futures indicated up by 244 points. s&p indicated up by 32. nasdaq futures indicated up by 63. if we open at those levels, this will be a new record for the nasdaq. in washington news, vice president mike pence is cutting his asia trip short. he originally planned on spend

two nights in honolulu after the trip to australia and japan but he'll return to washington tuesday morning where the trump administration faces a critical week on tax reform and funding plan to try to avoid a government shutdown on friday. we are approaching the end of president trump's first 100 days in office. let's get to eamon javers in washington. he'll have more. >> all week, we'll be taking a look at the president's first 100 days as we head into that deadline. on saturday, symbolic time to assess the presidency. how it's going so far. it's clear so far, that the big winner in the trump administration has been the stock market. take a look at the stock market performance just as the president was sworn in the dow up 4.3%. s&p 500 up 3.9%. nasdaq, you guys can explain miss bett this better than i can, 6.7 first, not clear to me why it's outperforming the others so

many. that's dramatic performance. the other thing that we're seeing about this administration their willingness to be overcheerleaders. donald trump has been cheering the stock market all the way. take a look at comments from the president at different stages throughout the rally. first one january 25th. the president said the first time in history that the dow crossed 20,000 for the first time ever. i've very proud of that. now we have to go up, up, up. the next one on february 16th, mr. president said the stock market hits new high with the longest winning streak in decades. great level of confidence and optimism. even before the tax plan rollout, that was as the dow was six days into a 12-day winning streak. and march 2nd. that was one day after the dow crossed 21,000 for for the first time ever. president said since november 8, the stock market has posted 3.2 trillion in gains and

confidence, 15-year high in jobs. that's different from other presidents who. >> reporter: who are reluctant to comment on the stock market. not so from donald trump and his team. they're very enthused about the rally. they ink it's a barometer. that's one big difference. and this week, we got a whole lot of stuff on the plate before we hit that 100-day agenda so we'll be looking at that throughout the week. >> do you think the january 20th date is better than the february 8th date, eamon? >> yeah. >> it's very muted gains to me. the markets are forward-looking. i mean, unless you wanted us to look like it wasn't very much, i would use november 8th. >> yeah, there's no question there's a huge rally after the election. you said to pick a start date, if you take november 8, that's runoff. if you take when the president was sworn in that's traditional. >> 12% to 4%.

>> sure. >> look, it's a big rally either way. no question about it. >> eamon, thank you. >> thank you. when we come back, the final round of the french election in mayological serve as a referendum on the future of the eu. italy's finance minister will join us next on the set. as we head to a break let's take a look at wall street's s&p 500 winners and losers. most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation.

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welcome back. you're watching "worldwide exchange" live from the nasdaq market site in times square. good morning. u.s. equity futures surging this hour. up a couple hundred points on the 0 dodow. 235, up 31. s&p up on the nasdaq. great things around the globe. because the consensus outcome is achieved in the french election. and i guess -- i guess if le pen -- all day long she was ahead until paris came in, and then she went ahead -- >> the urban areas were later. >> the results out today on polls for the two-way election. up by over 20 points at this

point. some deals to tell you about medical supply manufacturer becton dickinson announcing it will acquire c.c. bard for $24 billion in a cash and stock deal. acquisition valued bard at $317 a share. that's more than a 25% premium to bard's closing price on friday. becton says the deal will help to improve its market position in infection prevent and medication. bek becton expects the action to increase earnings. and result in cost savings of 300 million a year by 2020. both shares of becton and bard a little change in trading on the day. the transaction expected to close in the fall of -- you got to watch every small device out there, if you miss abbott lab is buying, st. jude, this whole space of m and a -- >> talking about m & a, jimmy

choo putting it up for sale. to maximize share sholder value. the company has discussed the process with j.a.b. luxury. they cone krispy kreme i was putting up a list the other day. bali. peet's coffee, the europe people company that just bought up all sorts of entities. >> we just talked about it, the panera. and shares of jimmy choo up sharply. stock up 40% over the last year. the french presidential election is now down to two candidates, marine le pen and emmanuel macron. joining us now for what this means from the european union, is italian finance minister pier

padoan. what do you think of the results? >> first, it's great for europe and number two, let's wait for the second round. >> exactly. anyone betting on this, the reason the markets are higher is because ma ren rine le pen did take more of the votes. >> it's good news that macron has gained the first round also because he has a very strong pro-european and pro-market program so this is really good news for everybody. >> have we been pinning too much on it a while, we're been saying this will decide the fate of the european union. if the vote didn't go this way, what would happen to the european union? >> well, the european union would be facing the option of disintergration. because this would appeal not just to france but other countrying saying enough with the european union. macron's victory means that people can appreciate and can endorse europe with a

pro-european program which needs to be implemented, by the way. it's not just stay still and do nothing. >> i guess we've been trying to figure out if this is a high water mark or soon to be anti-establishment votes that are out there? or if this is something -- look, he may win the centrist. but it's going to be something that's continually decided at every election to come. what do you think of that? >> well, i think we need to look strongly at why the populist idea, such a strong appeal, irrespective of the peak. the fact that these people are worried about their jobs, about the future opportunities, about their kids. so it is the duty of the european politics to give a concrete answer to those challenges. this is what we need to do, irrespective of what kind of vote the parties get. >> from the outside it looks like it's also very much a vote about whether or not countries can maintain their own borders. there's been a lot of talk about immigration policies being decided from brussels. and that certainly seems like it

is in britain as well. is that an issue? >> well, certainly, it an issue in italy where i would say it's the other way around. italy is taking care of european borders because we are receiving a very large and growing amount of refugees with our own resources. and we still don't have a true european strategy to face the emergency and the people. >> what would you like to see? >> i'd like brussels to be more active in strongly support not just in terms of emergency management but opportunities to offer these people in the north and african and middle east so they have an option to stay home rather than flee to europe. >> what are the politics in your own country, we heard about italy and that vote as well? what are the politics at home for you? >> well, if you add up the percentages of parties that have said in some extent that they would like to, for instance,

launch a referendum in membership, that say worrying sign. however, we have yet to see if that happens. i'm still confident that the program that the government has been implementing will gain some so the risk is avoided. >> whether or not the numbers that is used are mainstream, but they dwarf the ability to cover a lot of the -- you know, but what's available to help the italian banks doesn't cover the amount of help that they need? >> from what you say -- i haven't seen those numbers. from what you're saying, to me, those numbers are a bit overblown. there is a number of specific case which is is being dealt with appropriately. including with new instruments put forward by the government in agreement with the european commission which is the key point. and then there is a number of banks which have above average

npls, their balance sheets which are basically being taken care of. i would agree with anybody saying the problem is there and we need to accelerate the adjustment. this is what the government has been doing. >> do you think italian banks can afford to have higher capital requirements and do you think they should? >> i think they should. i think they're doing it. let's not former get that we have introduced over the past three years a number of structural adjustment programs which are strongly guiding banks, the popular banks, the corporate banks to merge. so that they eventually get their capital on the markets to strengthen themselves. of course, this is happening in the aftermath of a very deep recession which has left balance sheets very damaged. but this is getting more capital is exactly what they're doing. and they're succeeding at it. >> there mutt be somst be some t in all parts of southern europe about germany and france. they benefitted from the euro,

obviously. i mean, you've got nice weather, obviously. but is there any, you know, lingering sort of resentment that you've seen and have had to sacrifice much more than northern europe to make this thing work? >> nice weather is not -- not yet controlled by the european commission. >> yeah. >> there is resentment about rules that sometimes fail as being overimposed on the population. but as i said, the real issue is that people want jobs, opportunities, want to be more reassured about the future for their kids. and they blame europe for that. >> right. the promise of that isn't guaranteed in the guarantee of the structure of the eu. >> this is exactly why macron's victory is good news. but it's also a challenge. because the follow-up to that is that europe needs to accelerate job and growth creating measures. this is what the italian government has been advocating

in europe for over the past three years. >> italy's gdp in the rest of europe, why is that and how do you change that? >> that goes back to a couple decades ago. this was a problem already standing in the early 2000. because of structural impediments. >> and growth? >> the big recession, the big financial crisis, consequences builds negatively on that. now, the program of the government is on the one hand to deal with the legacy of the crisis to the banking sector adjust. also to inject structure measures that boost growth. if i may, i'd like to underline that this is very much part of the program macron has adopted for his campaign. and this bodes well for europe. >> can you start a business if you're an entrepreneur in italy? >> of course, you can start a business? >> how hard is it? >> the problem is it takes much too long yet. and where we've been introducing measures to accelerate that. let me tell you something else in that vein, it's not so much starting a business that bothers

entrepreneurs. it's also that if there's a problem in terms of bankruptcy or civil justice, they have, in the past, taken huge too much time too deal with those problems. now, civil justice reform is under way. and we're cutting down dramatically the time needed to do it out of court, by the way. as an out-of-court settlement to deal with settlements which of course, benefits npl managers as well. >> it's a great place. you can't screw up the tourism. there's just no way. who doesn't want to go to italy every year, right? >> we don't screw up the measured yards but we need to invest in these sectors as well. >> i've seen some of the infrastructure. the colosseum, i mean, that thing is falling apart. only half of it is there at this point. >> but that dates back to the romans, though. >> it's been neglected for a

long time. actually, they did fix it up again. the millions -- how much did that cost, a lot of the holes? >> that's split between the municipality and the central government. but i think the roman forum which is the greater structure where the colosseum is, it's the largest in the world, so it needs a lot of money just to maintain it. but that has been happening. we are also -- we are also investing a lot in local townshi townships which are beautiful jewels. and i think that maybe, you seem to know it quite well. i believe there are still places you haven't seen. >> there are. there are. and i want to. well, you can go back -- >> he's taking your colosseum question seriously. thank you. >> people carve their name -- idiots -- you know -- >> they've been screwing up very much of those. >> good. nice to see you. appreciate it.

>> thank you. coming up, congress is back in session, they have until friday night to negotiate -- and greece, how about the infrastructure there. pillars standing up -- the risk of a government shutdown. congressman patrick meehan will tell us what it takes to get a deal by the end of the week. plus, you've seen the video dozens of time by now. we're going to talk to the attorney for dr. david dao. the passenger who was violently dragged you have a united flight. stay with us. you're watching "squawk box" on cnbc. ♪ we're bound to get together let's go, she's a dog.

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on the highway and take pictures. >> you can go from above and take pictures from there. welcome back to "squawk box." that's a look at our new billboard on the west side highway. time for "executive edge." we'll start with a look at this week's agenda on wall street. this is the busiest week with a dozen dow components and over 100 s&ps. 3m, boeing, coke, pepsico, mcdonald's, ford, proctor & gamble, exxonmobil. alphabet, amazon and microsoft. on the economic front tomorrow case-shiller home price index. new home sales and consumer confidence. thursday, jobless claims, goods, and pending home sales. friday, first quarter gpdz. not the second report on second quarter. it will be the fourth report on

first quarter. before the second, the gdp on first quarter which comes before the first quarter and then the second quarter. and the second quarter of the same quarter. and then chicago pm movemei and consumer centesentiment. this morning, 207 points on it's dow. finally a poll that was right. it's been a while. that said that macron would probably win. and in the second round it shows the more mainstream -- is he mainstream or -- >> of course, he's mainstream. >> much more establishment -- >> he's not establishment. >> well, on a relative basis -- >> anti-establishment. >> his party is a year olde. >> he's 39 years old. he's an investment banker wants to lower taxes. >> and he was a former socialist. you remember austin golding was

here saying who is this trump guy putting a 32-year-old in charge of something, jarod cuk b curbecurb -- jarod curb demurreku jared . look what you accomplished at 39? >> right, i do. >> crazy. coming up byron scott former head coach of the l.a. lakers and the new jersey nets, he wrote a book on leadership. not the martial arts legend -- both joining us after the break. a quick check on what's happening on the european markets -- oh, it is charles. ♪

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start trading today at etrade.com the treasury secretary sending markets higher with the promise of sweeping tax reform, being implemented before the end of the year. >> there's a lot of good things about the tax reform bill. however shall the way that they're trying to fund it with this border adjustment tax is just wrong. >> we can have good regulations but don't want overbearing regulations. >> taking actions which remove the changes that were made to strengthen the structure of the financial system is very dangerous. welcome back to "squawk box" this morning. an nba coach and a ceo become

fast friends teaming up to write a guide book for winning in sports and business called "slam dunk success." we want to bring in byron scott and charlie norris. he's also chamber of the board of fresh pet. good morning to both of you. >> good morning. >> good morning. >> we want to do the equinox thing first. you guys are hanging out at the gym together? >> we kind of met through a mutual friend who introduced us and we fast became really good friends, started working out together. one day we were laying on the mat and charlie said we should write a book, how to work out when you're 50 years and older. that has turned into what you see today. it was one of those relationships that just continued to evolve. we became not just great workout partners but great friends. >> the crazy thing was every time we were together, literally ten or 15 people would say what

do you have in common. byron, you're going to kill that old man, how are you going to work out together. >> and i almost did. >> and finally one day i said nobody asks the second question, which is what do you really have in common. they just make a joke of it and go off. and i said to b., there's a book here. >> and are you spotting him or are you spotting him at this point. >> absolutely. >> what are you guys talking about? >> everything but basketball. we're talking about life, we're talking about friendship, we're talking about problems that i might have in business. we actually spend very little -- oh, the other thing, i'm a bostonian so we're talking about the relationship between l.a. and boston and all its vestiges. >> you're not helping us. what do you have in common? >> we have a few things that we don't have in common. obviously he was a bostonian so

it took me a little while to allow him to really get in, because after i got to know him and he told me he was a bostonian i was already entrenched into knowing him so i kind of let that slide. but just our competitive nature is what we have in common. >> so what lessons did he teach you and did you teach him that are in this book now? >> i taught him how to shoot a jump shot a little bit better than when i first met him, that's for sure. >> that's why i'm holding the basketball, by the way. i'm shooting better than him right now. >> but he taught me a lot about business. he would take me on business trips with him. as i would do in basketball, i would bring him in the locker room, i would bring him in film sessions, so that's how we really started to find out that we had a lot in common. there was a lot of similarities running a basketball team as there is running a business. >> and that competitive nature is what serves you both well? >> absolutely. >> and what are your biggest lessons from him that are applicable in the board room or

the corner office? >> well, one of the things that most impressed me with byron is that he's a people person. and to be successful as a leader, you have to get to the head and heart of people. it didn't matter who it was, if it was the person picking up the towels in the gym or the person handing out the smoothie, he knew their names, he knew if they were taking night courses. he was really about the person. >> can i ask you a question about that real quick. is that a natural thing for you? there are certain people who predispose towards knowing people's names and then there are people that have to try. do you know what i'm saying? >> i know exactly what you're saying. no, it's natural for me. i used to have my basketball camps every year, every summer. i would have 200 kids. by the end of the camp, i would probably know 170 of them by name. it's something that comes natural to me and something i take a lot of pride in because i do want to know what you're all about, i do want to know what makes you tick. when charlie and i got together

and he was talking about that second and third question of really getting to know people, that's something that really resonated with me. >> we had at mckesson water what we called an upside down organizational chart. and the front line people were at the top, i was at the very bottom of the chart. the point was that the front line people were the most important people in the organization because they're dealing with the end customer every day. byron had exactly the same sense the people in the laker organization. and at the end of the day, if you can get those people to tell you what they're really thinking, you're going to have a better company. >> charlie and byron, thank you guys for coming in this morning. appreciate it. >> thank you for having us. >> the book is called "slam-bduk success." much more from the french

election. markets here are up sharply. stick around, "squawk box" will be right back. bp uses flir cameras -

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good morning, everybody. breaking news. it is official, macron and le pen will face off in a race that will determine the future of the european union. we have an update from paris straight ahead. stocks soar higher. the latest on that. plus facebook's sheryl sandberg has a new book. the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york city, this is "squawk box."

♪ good morning, welcome back to "squawk box" right here on cnbc. we're live at the nasdaq market site in times square. take a look at the futures this morning. they are surging following the french election results. you're seeing the dow looks like it would open up about 230 points higher, s&p 500 up over 30 points and the nasdaq up to 60 points higher. we'll have a lot more on all of this in just a moment. take a quick look at europe adds well. germany's dax up over 3%. the italian ftse up over 4%, spain over 3%, so all in the green in a big way. french voters have shut out the mainstream for the first time in the country's history and on may 7th there will be a runoff between the populist marine le pen and centrist

emmanuel macron. will has more. >> reporter: yes, indeed. so the market is rallying based on the belief voters will unite against marine le pen in the second round. for that to happen there's a key question mark over what the voters for the far left and the center right will do in the second round but not everyone is convinced that they will both break to the center. >> i don't see anybody of the extreme left voting for an international banker, a globalist, so these guys will not vote for le pen. the programs between them were not that different. when it comes to fillon, it's an interesting question. but once again, i don't see the christian right voting for macron. the idea is that people will vote mr. macron because they

hate mrs. le pen. they may hate mr. macron much more than they hate mrs. le pen. >> reporter: worth noting mr. fillon was out loud and clear to back mr. macron but mr. mell mellenchon has not. so far he has not backed mr. macron this time. >> wow. he won't do that badly but that's not totally irrelevant when there was a senior le pen against a more conventional candidate, right? >> reporter: we can look at that quickly, joe. that was 2002. this is a reason why markets are so confident right now. in 2002 the father of current le

pen, jean marie le pen lost 82-18% so clearly people are confident that something of that ilk will happen again. but there are differences. in the first round the difference then was turnout was lower and jean marie le pen only got 16%. this mime marine le pen has over 20% and a higher turnout so a more conventiincing first round performance. jack chirac was a fellow right-leaning politician and easier for him to get the center ground and a member of the republican party with a big base of support. mr. macron doesn't really have that. clearly there's confidence off the back of these historic uniting against the national front, but there are differences too. clearly the markets focusing on the former rather than the latter this morning. >> who framed your shot? i mean you're right in the

thing. i mean there's -- it's like -- it's unbelievable. you love that, don't you? you are feeling so cosmo right now. look at that. have you been up to the top? there's a big line to get to the top of that thing. have you done that? >> reporter: i'm feeling so lucky, joe. it's a great job. very lucky to be here. >> and you're on "squawk box." you should be feeling lucky. where are we putting you up in paris just out of curiosity? no, you know what, the place will get mobbed with young ladies if we do that. don't tell me. >> reporter: i won't tell you, but i will also be on the plane back later today. there's a big wells fargo story to cover tomorrow. >> he's always working. bob michael, director of jpmorgan asset management, felipe truche, thanks for being

here. is convention a.m. wal wisdom g prevail, unlike some of the other surprises in the last year? >> you know, they have been consistently right during the polling before the first round so it's fair to assume that the 20 percentage points lead by macron even if a little bit wrong, it's a good assumption that he will be the next president. >> is that the way you see it, it would have to be some external, god forbid, event that could maybe swing it at this point? >> i was in france last week and there was the event. there was the shooting and it didn't do enough. i think as a market investor we'd be a bit more concerned if le pen had taken 30%, 35% of the

vote but i agree for once it's a relief that the outcome actually was in line in the polls. i think that's now yesterday's news and the market can look to other things to price in. >> we've talked about this is the first time that it's not one of your sarkozy or someone from the political establishment. is there a reason to think looking at the market reaction that this sort of outsider could actually do some pro business or pro private sector things that would help france? >> absolutely. let me first say that le pen is not an outsider. she's been around forever. macron is the outsider. he is new, he has never been elected. but he has a pro-eu business friendly platform. when the parliamentary elections take place in june, mid-june, to get a majority to support his

plan. he's not from a political party. he has no political party. his movement is a year old, and therefore he's going to have to rely on the traditional right and center right parties to help him carry out his agenda. >> i wonder how closely he's watching and observing president trump. >> right. >> because they're in the same kind of position. they don't have a party. they're independents. and i know trump has won the republican, but certainly it would be hard to say that he had the establishment support. and macron was to get in there and he has to start building a coalition, forming alliances and be ready to compromise to push policy through. >> right. >> we've seen the economic sort of legacy of the eu already. europe is coming around, finally, we hope. but i sometimes wonder if the

status quo is maintained and that's what this election proves. is that great? is there reason to be optimistic that the eu can get its act together and be a vibrant economy and get rid of the structural problems that all the individual countries have? >> it's easier to move forward when the economic environment is improving. >> and it is? >> definitely. he's definitely pro eu. i think maybe the old momentum driven by france and germany will drive the eu construct again. because the eu right now is like a building without a roof. >> right. there are some people that think that the eu was sort of a failed experiment to start with and that now you're just trying to keep it together at all costs. i mean the strongest economy in europe has been britain since they decided to brexit. >> well, yes, but the strongest economy absolute in europe is germany. >> good reason.

if i were germany, i'd want to stay in the eu. but germany seems like they didn't need to have another arm conflict, they conquered europe with the eu. >> but if macron wins the next round, then core europe remains in place. >> and you think that's a good thing for southern europe? >> i think that's a good thing for the eu. i think macron has some progressive policies that he wants to push through, particularly on tax. i think those things are good for -- >> wait a minute. you said progressive policies on tax. he wants to cut taxes. you're using progressive in a different way than it's used here. >> there's going to be a trade-off, right? he may cut taxes and then there may be widespread taxes elsewhere within, so i think it's positive. i think it's healthy that core europe is kept together. we can deal with brexit separately and deal with -- you had the italian finance minister on. deal the italian banking system

next. >> all right. we'll see. there's a -- i just have some sympathy for the other viewpoint that the -- that when you try to put together all these countries with different languages, different culture, without a fiscal authority, it's difficult. and does it finally pay off? it's paid off for the germans, but has it paid for up everybody else? >> it has, it has. there's often the misperception -- people are missing the political angle of the eu construct. europe has not had a wall for over 60 years. europe has never known a period of prosperity and peace as we have since the eu started in 1957. since the roman times. and people are aware of that in europe. >> yeah, but i don't know if there's a cause and effect here. we're in a different -- in the modern era.

i'm not necessarily -- if there was no eu, you think there would have been a war? i don't know if you can make that -- >> it's difficult to say, but if you look at the past history, yeah, probably. >> okay. all right. gentlemen, thank you. let's get you caught up on some of the other big headlines. a sizeable takeover deal in the medical supplies industry. becton dickinson is buying c.r. barred. about 25% above its friday close. we're seeing a lot in this space. we were talking about abbott and st. jude and medtronics. also a takeover battle with two paint makers. ppg raising its offer for akzo nobel. that's higher than the march 2nd proposal. akzo has rejected two offers.

gas prices up three cents over the past two weeks which puts the average price of unleaded regular gasoline at $2.46. it's about 28 cents higher than a year ago. when we return, congressman patrick meehan on the issues that matter most to your country. a lot of things coming up and a possible government shutdown. and adam grant on the book he co-authored with sheryl sandberg. and dr. david dao's lawyer will speak to "squawk box" about his client's case against united. stay tuned, you are watching "squawk box" on cnbc. ♪ for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities that traditional assets can't. and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models

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welcome back to "squawk box." take a look at the futures right now. they are ripping in a good way earlier this morning. you're looking at the dow looking like it would open higher at 222 points higher, s&p 500, 30 points higher and the nasdaq 60 points higher. congress back on the hill with a full agenda. president trump promising more to come on his tax reform plan. plus talks about another health care bill and all of this is happening with the threat of a government shutdown looming on friday. joining us right now is congressman patrick meehan. he serves on the ways and means

committee which oversees health care and tax reform. congressman, thanks for being here today. >> great to be back with you. thanks for having me. >> before we get to health care and tax reform, what's going on with the government shutdown. will that happen? >> you said shutdown and that's going to relate to whether or not the president will insist on funding for his border wall. so the question ties back to whether the democrats are going to participate on health care. most specifically whether there will be a deal border wall for payments to supplement obamacare so it's going to be an interesting dialogue. >> does not have to get figured out before we continue deciding funding the government on friday? >> it's like any deal, who's going to insist on what and is there a down payment on the wall that could get people on board. i think that's where you're going to find the sweet spot. >> your best guess as to whether this actually happens, and if it does what it reflects on your party, the republicans. >> well, it would all depend on how it would be spun, but i think people want to get this

done because there's other heavy lifts that we're involved in, most looking forward to what the president is going to say on tax reform, which is a big and important issue. they may take another whack at health care. so you don't want to mess that kind of an opportunity by tying up something that we should be able to get through. >> you heard durbin. i mean durbin talking about that it's just -- it's outlandish to even think about securing the southern border. and if he tries to pull this stuff, of course the democrats are not going to -- they'll have to be -- their conscience will require them to shut down the government to stop the idea of building this wall, because it's -- i think mainstream media can sell that. i think they would blame the republicans for him following through on what he got elected. that was a big part of how he got elected, talking about securing the southern border. but they can turn it into this almost immoral, horrific, you

know, development to build the wall. they'll do it. it doesn't seem that outlandish to me. barack obama talked about securing the southern border at one point. >> i think it's a political calculation. i think they could win more on that kind of a thing if they can make it a battle. >> the democrats. >> yeah, yeah, sure. >> everybody should get in and walk across. >> do you think the wall is a rationale, good idea? >> there's aspects of it. we call it the virtual piece. you know what the biggest issue is? >> the virtual piece of the wall? >> there's elements of. >> it securing the border. >> i don't think anybody disagrees with securing the border. the question is whether we're con flagt it with physically building a wall. is physically building a wall a rationale act to you? >> there's things that you can do that don't require a physical wall. >> i'm asking you whether building a physical wall, which is what the president has campaigned and pledged to do

makes sense to you? >> i don't think it makes sense in its entirety. there's ways to secure the border and that's what we should really be talking about. as i said, the biggest threat is not the individuals, it's the heroin and fentanyl, which are changing way we're confronting problems right now in society. this is a huge problem, as they would say, and that could be something that could be impacted. that's where the real danger is on the border. >> let's talk about the tax reform bill because that is certainly something that the market is kind of rising and falling every time it looks like it's going to go through or not. where do we stand on that and what do you need to hear at this point in terms of details. >> i think the most important thing is we're going to have the administration speak for the first time about what they want to see in that. that's going to allow the ways and means committee to have some direction and probably some direct negotiations. there's going to be important questions about whether there's something we do at the border with adjustability, we're going to see what the president wants to do with interest, which is going to be a big aspect of it. where he wants to go with rates

and those factors may all play into where we think we can get in terms of a bottom line and of course the question of health care is related as well because they're looking at the baseline. what do you have that you can begin with whether or not we get health care. >> the border adjustment tax, we've had kevin brady tell us he thinks that's going to get done. we've had other people say it's dead on arrival, it's not going to happen. if the white house comes back with a plan that does not include border adjustment, how will the ways and means committee handle that? >> well, two out of three isn't good. when you have the senate and white house not behind it, if the white house is firmly not behind it, i think it will send some kind of a signal. but there's also going to be a question about what kind of a tax bill do we have. if you're looking for some form of neutrality in revenue, you have to have something to generate it. is there some other mechanism at the border the president will stock about. >> the stock market moved about the pledge and our treasury secretary that we were going to

hear about a tax plan. over the weekend it seemed to me that mick mulvaney said not that he was walking it back but suggesting there's going to be an idea of principles. we'll give you some tax rates and ideas but this isn't going to be "the plan." how do you see it? >> i'm not troubled by that. we have a pretty thorough plan put out on the house and done a lot of work. what you're looking for is the president to come back and tweak that. say here's where i see -- what i want to see different or where i think we're in common form. it's like negotiating any document. anybody starts from the first draft. i think we have that first draft, we're just looking for the president to fill out what he wants. >> if the boardarder adjustment not something the president stands behind, we've spoken with steven mnuchin and he suggested that you might get there by dynamic scoring. would you go along with a plan that did not include a trillion dollars in savings but instead said we think we'll get there

because we'll boost gdp with this plan? >> i think you can use dynamic scoring to get part of the way there. where you may start to get affected is permanence on it. >> you may see something like middle class tax relief that will be done in that way. i think what we're going to see is probably not as expansive tax relief for the wealthy, at least in terms of direct income. they'll probably work capital gains and things of that nature for investment that a lot of people would shift into, but i think the president wants to -- wants to get a bill and he wants to send middle class tax relief. >> very quickly, what comes first, health care or tax reform as the committee that has to deal with both. >> budget and tax reform. health care will be whether the votes are there or not. >> thank you, sir. >> okay. still to come, is it time to rethink the value trade?

plus more on the macron/le pen runoff and what it could mean for the global markets. the futures at this hour continue to trade sharply higher. "squawk box" will be right back. ♪ ♪ i'm dr. kelsey mcneely and some day you might be calling me an energy farmer. ♪ energy lives here.

still to come this morning, is it time to rethink the value trade? mike san tolly has a special report after the break. and later sheryl sandberg's new book inspired by the sudden death of her husband hits bookstores today. we will hear from the co-author, adam grant. right now as we head to a break, take a look at u.s. equity futures. they have been sharply higher after the french election went as the polls predicted. the dow futures is up by 222 points, s&p up by 28, the nasdaq up by 58. finding time to get things done isn't easy.

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so you won't even have to call us. change your wifi password to something you can actually remember, instantly. add that premium channel, and watch the show everyone's talking about, tonight. and the bill you need to pay? do it in seconds. because we should fit into your life, not the other way around. go to xfinity.com/myaccount good morning, everyone. welcome back to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. among the stories that are front and center today, here's a sign that self-driving car technology is advancing. it is winding up at the center of legal battles, google's wamo

unit has accused uber of hiding a project from a federal court. it says examination of that project will show uber copied its design for a laser sensor used in self-driving cars. american airlines has issued an apology to a passenger after a individual joe showvideo showt over a baby stroller. all of this of course comes on the heels of that controversy over united's forcible removal of a passenger on an overbooked flight. we'll have more on this when we interview the lawyer for dr. david dao. >> does kaylee have a stroller? >> yeah, but you check it at the gate. >> this is a smaller stroller, and she claims, the passenger claims that another flight attendant on the runway said go on inside and see if you can fit it inside. if you can, you can leave it there. >> i've figured out ways to get

strollers on before. >> there are some that fold up very small. >> such a hypocrite. so you don't want any infants in first class. >> no. >> but you found a way to get a stroller onboard. when you have a baby it's okay. >> no, no, no. you can get it down to the size of a bag. they have these strollers, they make them. they do. >> you have a real double standard. >> no double standard, no double standard. when i'm sitting in the middle seat -- >> how old is your baby now? >> we're about three and a half months in. >> are you going to bring her on first class? >> when? >> if you ever go. >> when she's 21 years old, she will sit in first class. >> i'm watching you. it's to see -- >> if she's an entrepreneur at 15 and can figure it out, by all means she should buy the ticket herself. >> if you take her to europe when she's 2. >> yes. >> she's not flying in first class? >> coach with a nanny. kidding, kidding.

>> i'm sitting in coach. >> to europe? >> yes. >> i haven't taken the kids to europe yet. >> until they get older. they have to graduate to these things. i didn't get to do these things when i was a kid. >> i hear what you say, but just know that i don't believe you. i'll be watching you. >> you don't believe me. okay. value stocks have mounted a huge comeback against growth stocks starting a year ago but have faltered in recent weeks. mega cap tech stocks have carried the nasdaq to a new high sparking a fresh debate over what style is the best fit for the rest of the year. the cheaper industrial and financial stocks? mike santoli joins us now with more. >> thank you very much. that whole dynamic where growth stocks have been outperform, by 6.5 percentage points if you look at the russell value versus growth, comes as a surprise. the consensus was that value would continue its resurgence mainly because it's more cyclical. there's cheaper stocks, perhaps you'll get some policy help too

on the growth front. well, as we know, we've had a lot of resizing of economic expectations in the first quarter. treasury yield is down. that has also had value stocks suffering as it's come off the boil. now the question is are we now given the opportunity to reload because fang stocks have been the only thing performing really well recently. i think the conditions are there. you basically have growing gdp supposed to be accelerating, also earnings growth. those things tend to be good for value stocks. also, the overall market is obviously above average valuations. value stocks will do better. you have treasury yields up today, banks follow through, they are 31% of the value index so it seems as if the banks can work, this trade can basically have another shot at it, guys. >> mike, will you stay with us? stick around? joining us now, paul hickey, co-founder of the spoke investment group. the underpinnings of what we're

seeing. another upswing today. i guess the s&p didn't quite test 2316, didn't really -- didn't really test that bottom. are we onward and upward with europe? this does put the worst case scenario on the back burner. >> the polls were finally right, that's a big sigh of relief here. i think this is just a continuation of this stairstep pattern we've been in where we get a rally and then some consolidation here. but so much of the narrative is that investors are maybe looking for excuses to sell, but you look at the results today, an expected result granted there was uncertainty around it but i think you have to frame the question are investors looking for excuses to buy here and coming in. the narrative was it was a trump rally but here we have the european election driving the market up 1%. >> well, the tax reform, if that actually -- we'll know soon

whether that's got a chance. that could set up another leg. >> last week there was a merrill lynch fund manager survey. only 5% of fund managers expect there to be tax reform in place by the end of summer. so for all of this talk everything is priced in already, i think that's a metric that things aren't necessarily priced in. we don't know what's going to be in this tax legislation that they're going to bring out but taxes aren't going up, so i think that's a positive. if we get anything good in this tax reform and there's signs that it could get passed sooner, that's just gravy. >> i think that's probably the best thing you can say is that expectations for whatever the story line had to be to get stocks up in terms of policy progress, i think that's kind of been set aside. you wouldn't have the fang group, those four stocks, equal weighted up more than 17% year to date. you want to add adobe in there, visa in there, these are defensive growth stocks so they have been holding the market together while the policy and economic stuff has kind of

slipped back a little bit. >> what's really unique to mike's point earlier about value stocks is during this rally that we've seen since the end of last year, we've seen a lot more dispersion where it's not a tide lifting all boats. we track something called all or nothing days where the ad line is 400 or more issues going up or down on a given day. on a day like today, normally in the past eight years this would be an all or nothing day. but many of these 1% days we've had since the election, haven't had that quite so we're seeing certain parts of the market rallying but it's not everything going up at once. >> so what if there's a total disappointment this week? tax reform gets bogged down by -- like obamacare repeal. i don't know, we argue about keeping the government open. >> so if we have bad news on the tax front, i think you could see a short-term disappointment. it's two steps forward, one step

back here. so the market got excited about the tax reform last week, but i mean the futures are up more today on the european election than they were rallying -- or they're rallying as much as they were on the tax news last week. so it's not -- i think it's not the end of the world by any stretch if we have disappointment on the tax this week. >> santoli, you look young but you've got the crow's feet and have watched this for a long time. doesn't it just seem like things are half full now instead of half empty? i'm not going to say anything about the last administration, but even if you don't do anything, even if tax reform does get bogged down, there's certain regulations that have been eased. there's interest rates are still low, corporate profits are still coming. it just seems like you better be long or -- >> yes. i do think that's the case. you're at a pretty good spot in the cycle to start with and then, yes, i do think if you look at the range of what's going to happen on the policy

front, i think literally your worst case scenario is status quo with deregulation and your best case is maybe you do get some help. i think that's true but the most bullish thing that could possibly happen to make you really stand up and say wow, is no tax reform at all, the market goes up another 10% and people say why did that happen? well, why did it go up 30% in 2013? it wasn't policy. >> you're like dick clark, you just look the same. >> let's hope i'm not going where he is any time soon. >> he looked like he was 30 when he was, you know -- >> america's favorite teenager you're saying i am? >> kinda saying that. >> i'll take it. >> thanks, guys. what happened to joanie? >> i'm the spokesperson for all squandered youth now, is that what it is? >> squandered youth. that's horrible. 56 years old and a trailer park. she was a huge cultural icon.

what happened? >> you watch what was tweeted out by some of her co-workers, ron howard -- >> it's sad. >> yes. it's not good when you start out sometimes very young. she started out as a 10-year-old actor. up next, psychologist and wharton school professor adam grant co-authored a new book with sheryl sandberg inspired by the sudden death of her husband. we'll hear from him after the break. the power of the nasdaq market. the power of 100 of the world's top companies. the power of an etf. the power of qqq. the thinking we put in, clients get out. power your client's portfolio at powershares.com/qqq. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc.

containing this information. read it carefully. let's[ whimpers ] dog. find ping-pong. find your awesome with the xfinity x1 voice remote. that's amazing! welcome back. when facebook coo sheryl sandberg lost her husband unexpectedly two years ago, her specio experience of grief was something even the most forward-looking business leaders weren't ready for. adam grant is the co-author of "option b" written with sandberg on facing adversity and building resil resilience. we kel hum -- welcome him. >> thanks, andrew. good morning. >> you wrote this book together coming out of the death of dave goldberg. let's go back, how did this even happen? >> it started actually when dave

read the first book that i wrote on generosity and introduced me to sheryl and said the two of you should get to know each other. she started grilling me on gender differences in my data so i freaked out, reanalyzed my data, found these differences between women and men and she said we should write about this. when dave died, we were all devastated. after the funeral there were family and friends staying at her house and she said what can i do to get my kids through this? with my psychologist hat on i made a list of things that helped kids build resilience and we had a book to write so here we are. >> let's talk about kids and resilience first because that is a fascinating chapter in the book. what do you put at the top of the list? >> i think the most important thing for kids is they have to know that they matter. this is something that's true whether kids are facing small challenges or major adversity. mattering is just the answer to the question do i have significance in the world. and when kids feel that they matter, they believe that other

people notice them, care about them and rely on them. and when kids are going through crisis, it's really hard to reinforce those feelings. but it's important to consult them, ask for their advice and go out of your way to show that you're really looking out for their best interests. >> one of the other things that's fascinating to me is what other people are supposed to say to people who are grieving, which is always a struggle for everybody. >> yeah. i've screwed this up for years. my instinct was always to say let me know if there's anything that i can do. and this is just a terrible offer it turns out because it shifts the burden to the person who's suffering to know what they need and to ask, which most people are not comfortable doing. it's much more effective instead of offering anything to just do something. to go and bring like dinner over to the person, to show up with toys for their kids, just take some action. >> just to do it. >> totally. >> but don't ask. >> don't ask, just act. >> and are you supposed to say -- because you guys go over this. you say i'm sorry, i know what you're going through.

don't do that. >> well, i think that too often we try to offer reassurance. we're like, andrew, i know you'll be okay. really? how do i know you'll be okay. it's much more meaningful to say, look, i acknowledge that you're in pain. not only am i here for you, i'm here with you, we're in this together. >> and then the other piece of this, and what i thought was so interesting about what happened at facebook, is how the policies that they had changed and how a company should deal with this kind of thing. >> yeah, it's staggering that after an employee loses a child on average, they get three days of leave after that. >> what? >> yeah, can you imagine? >> no. >> so i think facebook had already taken pretty unusual strides. now their policies are even more generous, giving people 20 days off. i think that's a starting point for how you support people when they're grieving. we need support programs for all kinds of hardships. >> this book to me is as much about grieving over a death as

it is about all sorts of hardships and stresses in life. and how we need to change or not. >> yeah. if you look at what companies do, there are a bunch of fortune 500 organizations that say we're going to run a support program so if you face an illness or there's a natural disaster that destroys your house, we'll have finances and resources available for you. i've found that when these programs exist, people are more loyal to their companies. they're proud to work for a place with a heart. it's not just the right thing to do, it's the smart thing to do. >> does it translate down to the bottom line? so many businesses look at this as great support and loyalty. what does that mean beyond? >> yeah. just if you look at grief alone, the productivity losses from employees who are grieving are in the billions of dollars a year. when you look at people's attachment to the company, if they feel a stronger sense of commitment, they end up working harder, longer, smarter and more productively. >> this is not just a book and story about dave goldberg, we

should say, because you have other stories of people who have grieved or had other loss. >> yeah. i think we didn't want to write a book about grief, we wanted to write a book about all the adversity we face in life and how do we build resilience in ourselves, in each other, in our work places and in our communities. >> and what's the long-term goal? lean in became not just a book but a project both in the online and real world. same with this? >> sheryl has launched optionb.org, which is a website that has support groups and lots of educational an inspirational content, for people whoever hardship they might be facing in life to gain the insight and community that they need. it's amazing how isolating tragedy and adversity can be. a lot of times what we need is to connect with other people who have shared experiences, so that's the goal. >> adam grant, "option b" is the book. it's out today. thank you, appreciate it. when we come back, we've got stocks to watch ahead of the opening bell. at the top of the hour, dr.

david dao's lawyer will join us to talk about his case against united. by the way, he's also representing the passenger who had a confrontation over a stroller on an american flight just over the last few days. he'll be joining us shortly. "squawk box" will be right back. if you want to stay on top of your health,

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getscreenednow.org it only takes a minute to take care of yourself, and nothing rhymes with "org"... but we've got the get tdigital tools to help. now with xfinity's my account, you can figure things out easily, so you won't even have to call us. change your wifi password to something you can actually remember, instantly. add that premium channel, and watch the show everyone's talking about, tonight. and the bill you need to pay? do it in seconds. because we should fit into your life, not the other way around. go to xfinity.com/myaccount take a look at some stocks to watch this morning. halliburton reported a profit of 4 cents a share.

that was involve estimates beating by a penny. revenue was also above expectations, helped by increased drilling activity in north korea. european bank stocks, the trade in the u.s. are surging following the results of the french election including shares of deutsche bank, credit swiss and barclays. o'reilly was a good value and worries about amazon's growing move into the auto parts area. analysts feel o'reilly is better positioned to fend off amazon. medical supplier becton dickinson will acquire c.r.bard. they value bard -- a premium over the closing price on friday. it will help improve its market position and becton expects the transaction to increase its

earnings share and a cost saifgds of $300 million per year by 2020. both shares are unchanged in early trading this morning. the transaction is expected to close in the fall of 2017. and luxury retailer jimmy choo is putting himself up for sale. he is seeking offers for the company was part of a review of its strategic options to maximize shareholder value. they have discussed the process with their majority shareholder which holds 68% of jimmy choo. jab luxury says it is supportive of the plan. shares of jimmy choo are up sharply in early trading. that stock is up 40% over the last year, a gain of 9.5% this morning. a wisconsin woman said she sustained second-grdegree burns after her fitbit fitness tracker exploded on her wrist. mitchell said her doctor had to pick pieces of plastic out of the wound. she said that she only owned

this device that was a fitbit flex 2 for two weeks. she was reading a book when it exploded. fitbit issuing a statement saying the company is investigating the incident and isn't aware of any similar complaint. fitbit is down 60% in the last six months. >> long before this, but this is always the issue when you have batteries. batteries are chemicals and they can explode. we've had situations with batteries exploding on airplanes. the samsung phone situation. >> right. >> and more and more if we're going to be living with batteries physically on us in some way or another, right, they all have to be powered somehow. >> right. >> maybe things like this will happen. i'm not saying it's an acceptable thing to happen. >> the person charging the phone who was sleeping and had something happen. >> everyone has their phone next to their phone using it as an alarm these days. arianna huffington says keep the phone out of the bedroom.

maybe that's a good idea for lots of reasons. vice president mike pence is cutting his trip to asia short. she planned to spend two nights in honolulu at the end of the trip to south korea, japan, indonesia but he'll spend one night there and return to washington on tuesday morning. that's when the trump administration is facing a pretty critical week on tax reform and a funding plan to avoid a government shutdown on friday. now back to wall street. here's what's on tap. it is the busiest week of earnings season. 190 s&p companies reporting. among the names to watch, 3m, boeing, coke, pepsico. tomorrow we get the new home price index. thursday we get jobless games, durable goods and pending home sales. check out friday. we have the first report on q1

gdp as well as chicago pmi and consumer sentiment. "the fate of the furious" holds on steady at the top of the box office. the eighth installment in "the fast and furious" franchise earned $39 million over the weekend. "boss baby" commanded second place and "beauty and beast" was in the third spot. we've all seen the video of dr. david dao being dragged off the united flight causing a corporate pr crisis. his attorney will join us in just a couple of minutes to talk about it. later, the president's plan for infrastructure. the ceo of cgla infrastructure will join us. the company one of the nation's leading infrastructure consulting firms. "squawk" returns in just a moment. right now?w? right now?w? we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that.

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he promised he was going to bring jobs back to this country. people want to see if he's going to keep true to his promise. global market alert. stocks surge after polls predict centrist candidate macron will be the next president of france. the first 100 days, congress gets back to work with a busy week ahead from tax reform to a showdown over a government shutdown. we'll tell you what to expect on the hill. plus another bump in the road for uber. details that head to a heated

meeting with apple ceo tim cook as the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernan. if you can't beat them, join them. >> it's called times square for a reason. >> times square stands on its own. you don't have to think about the financial times every time to know that it was named after the "l.a. times," the chicago -- anyway. here with becky quick and "the new york times" and cnbc's andrew ross sorkin. fu

futures are up 230 points. that's even less than a percentage gain than we're seeing in europe. some of those are up as much as 4%. we've had five, six out of seven days that were down recently so we've been in a little bit of a hiatus of the bullish move but we're back on track today but it has nothing to do with what's happening here. it has everything to do with what happened. emmanuel macron and marine le pen will face off in the final round of the french presidential election. it's only like two weeks away, i think. wilfred frost coming home today but you're going back i'll bet in less than two weeks, aren't you? >> reporter: may the 7th exactly is the next round. you just read out the head line. let's look at some of the subheadings in this vote and the social categories, how they turned out their vote. the first one expected, macron, very strong in cities le pen

weak, very weak. paris, macron 35%, le pen just 5% of that vote. the second category, the working class, how they voted. the trend to be expected, the extent of the vote, though, a bit of a surprise. le pen the big winner, 37%. macron 16% of the working class. worth point out melenchon getting 24%. le pen is, quote, far right on immigration but not on economic issues. now, so far that breakdown sort of to be expected and sort of similar as well to how the vote broke down for brexit and for donald trump, but here's something that's different and could work in le pen's favor. the young vote. 18 to 34-year-olds, it's close, but le pen comes out on top. that will surprise some people in the u.s. and the uk, 26% of the 18 to 34-year-old vote for le pen, 22% for macron. now, clearly markets this

morning fear that le pen or think that le pen will struggle to build a coalition of voters to get her from the low 20% to the 50%. but macron's route is not simple either. despite being the independent, despite being the youngest ever presidential candidate in france, he's got a lot of work to do to shake off the image of being a former banker and a former government insider and to become the man of the people that clearly markets think he will be seen as. >> wilf, i think that's really strange about the youth vote, that's very strange. are very negatively affected by immigration? is that it? >> well, no, there's a crucial factor here and that's what youth unemployment is because overall employment in france is about 10%. it peaked three years ago at 11.5%. youth unemployment 23.5%, peaked two years ago at 25% so very

little improvement on the youth unemployment rate and that has been a big factor. but what has been fascinating here is how close that youth vote is with melenchon because he was the far left working class person that championes tho those unemployed but in fact the split between the young very close between them and raises the question of what melenchon supporters will do in the second round. >> she is seen as -- in this country i can't imagine anyone young would vote for someone that has been, you know, sort of stereotyped in a negative way as being far right. i understand the bernie sanders guy, but then i would have thought that macron would have, you know, young and -- i don't know, i think that's really strange that le pen has the youth vote. >> reporter: the point there for mr. macron is, yes, he's an independent but he works for

francois hollande for four years, two years of which as economy minister. clearly he has to do a bit more to really prove he's an independent. just on that point, francois hol land's party got only 6% of the vote. that was very similar to the dutch elections and if the polls are correct at the moment, pretty similar to how the uk election could play out with the labor party and how the democrats fared because they were beaten on various levels of governments last year. >> yeah, yep, you're right, they were. all right. thanks, wilf. now let's check on those markets we alluded to in europe. some are up 3%, 4%. big gains, big gains. you can see there germany. france up almost 5%. big move. the ftse up, and spain up 3.33%.

>> ftse is up but the point has been if you did see macron win and then you had germany and france kind of team up, it would potentially put the uk at a disadvantage. >> make it tougher to negotiate brexit. >> but still up. it's not down. all right. let's talk more about the exact of the french election. joining us right now is christopher dickey, world news editor at "the daily beast." he was the paris bureau chief for "newsweek" magazine. chris, thank you for being here today. >> my pleasure. >> what do you think is the most likely outcome in the second go-round? >> the most likely outcome is that macron will win and by a fairly substantial margin. but this is his race to lose at this point. he's really not a very good debater. in the two debates that took place in the run-up to the

elections yesterday, he really did not come across strongly. actually in the second one people didn't even talk about him. marine le pen is a very strong debater. she knows very much what she stands for. she has radical positions but they're easy for the french to understand. macron tends to get kind of wonky and kind of emotional. the debate is going to take place on the 3rd, may 3rd, four days before the election. so if he does himself a lot of damage in that debate, it's going to be hard for him to recover. >> we were just talking, trying to figure out who melenchon's voters would go for. is it more likely that they go for a centrist candidate like macron or more likely they have more in common with le pen's voters? >> both melenchon and le pen, there were a lot of elements in their platforms that were similar. one of the similarities was that the government is going to take care of you just like it used to 30 or 40 years ago.

you're going to get jobs for life. you're not going to be fired. we're going to tax the rich to fund the poor. we're going to do all these kinds of things that sound terrific, very hard to execute and very hard to stay solvent if you execute them, but it's the kind of thing that appeals to young french voters. macron is telling them, no, we're not going to do much of that. what we want to do is prepare you to live in the 21st century. we want to make it easier for entrepreneurs to work, we want to reduce social charges on employment, particularly on self-employment and small and medium enterprises. all those kinds of things that i think most of us understand are relevant to a dynamic economy. but french young people don't necessarily agree with that and every time there's been an effort to reform labor laws in this country, young french people have turned out by the thousands in the streets to fight against it. melenchon and le pen both capitalized on that sentiment. >> it sounds to me like you think this is not a done deal,

that we've been writing it off and conventional wisdom would say this is an easy one for macron to win. but it sounds like you think there are -- there's a significant possibility that it could go the other way? >> i'm saying let's not pop the champagne corks yet. i think that it's not a done deal. it's very probable macron will be elected, but it is possible that le pen will be elected. and i think then we would be -- europe and france would be in deep trouble. >> chris, thank you for your time today. >> thank you. it has been a rough few weeks for airlines were another confrontation going viral. american airlines apologizing after this video was posted on facebook capturing the moments after a flight attendant allegedly hit a woman with a stroller, just missing the baby in her arms. american has suspended the employee pending an investigation. joining us right now is thomas demetrio, the attorney representing dr. david dao in

the united case and is now representing the woman in that american airlines video. we thank you for joining us this morning. >> pleasure. >> so let's talk about dr. dao and that case first in terms of where you think all of this goes. we understand that united over the next week or two will probably come out with new policies, but is there any effort going on right now to try to settle this case? >> well, settlement hasn't really been discussed. i know april 30th i think is the day mr. munoz said the new guidelines, rules, standards are going to be put in place for sure. united has already started assuring the public that the chicago police department or agents of the chicago police department will no longer be used to take off nonviolent, nonterrorist-type people, passengers, like all of us, so that's a good start. so the whole overbooking issue

is going to have to be revamped, i believe. and how employees get from point a to point b. they no longer can really take a seated, ticketed passenger and either violently or candidly nonviolently take them off the airplane. >> do you hold united accountable for this or do you hold the chicago police accountable for this, given that they were the ones who physically dragged your client off the plane? >> yeah, united at the end of the day is totally responsible for what occurred here. maybe not totally, but they -- united is the captain of the ship. united chose to use chicago police, three officers, who mayor emanuel has said that will never happen again. so united watched how dr. dao

was dragged like a sack of potatoes from this plane and did nothing to stop it. this is a private for-profit corporation -- i mean a public for-profit corporation. and the fact of the matter is it's responsible at the end of the day, all airlines are. so yeah, united is it. >> thomas, you took on this new client given this video that we've seen on american airlines. what went into your thinking of whether to take the client on or not, given, and you've already seen some skepticism and accusations online. people saying that you have become an ambulance chaser. >> i just sit in my office. i don't go after people in argentina. you have to believe that. i don't go after anybody. the fact of the matter is she contacted us. her tale is compelling. the video is a microcosm of what's wrong with the airline industry today because you've got in that video, you capture a

haggard mother with a backpack, a stroller, two children, 16 months old, twins. you've got an out of control flight attendant. you've got a passenger who wants to protect this woman and protect presumably everybody on that plane from this guy. and then you've got a captain we can see in the video who is very concerned and he's pacing and he's dealing with the passenger, he's dealing with the flight attendant. at this point in the flight, we want a captain who's up in the cockpit doing, you know, what he's supposed to be doing to have a safe and secure flight for all the passengers. and then in the background finally you've got other passengers who are upset. and the same in dr. dao's video.

you've got other passengers who are upset. we don't need any more stress in our daily flying lives. so these airlines i think have to work on customer negotiations, they have to treat their passengers with respect, with dignity, with fairness, and not, not the conduct that we saw from this flight attendant. so that's why i got involved with this case because it's compelling and it sums up the entire problem. >> thomas, i have to say i think this is something broader than just one airline. air rage is pretty common these days. why do you think we got to that point? >> we got to the point because the airline industry is favored. the airline industry is the only one that i know of that has been allowed to overbook. i don't go to my dentist and be told that i'm sorry, but we can't fix that root canal today, we overbooked people at 4:00 or

a reservation at a restaurant. the fact is, they have been favored and they're favored in congress and they're favored wherever they go, and we're helpless. we get to that airport, we're going through lines, we're going through metal detectors, we're just doing what we're told. a lot of time it's in a very rude manner. it's a bullying that takes place. and it culminated with dr. dao's physical situation. and let's be candid. if there was not the age of cell phone video taking place right now and these two latest incidents caught on video, we wouldn't be having this discussion. >> thomas, how much would you and your clients is about legitimately changing the policies and approach that airlines take, meaning that is your ultimate goal, or it's about reaching a fair settlement on behalf of these clients in terms of the number that they

get? >> well, the fairness of the settlement or verdict is my job. but the fact of the matter is, and dr. dao has made this very, very clear, that he wants to -- unfortunately he had to live through this. but he wants to, because no one else is standing up, no one is standing up for passengers these days. the closest is senator blumenthal from connecticut, god bless him, because he's trying to come up with a passenger bill of rights. but the fact of the matter is but for these videos i wouldn't be on your show and nobody would even know about what happened to dr. dao or this beautiful young mother, schoolteacher from argentina. >> thomas, we very much appreciate you joining us this morning and we hope to keep up with you and discuss this as the cases move forward. thank you. all right. still ahead on "squawk box" rebuilding america. budget chief mick mulvaney says

president trump's plans to spend $2 billion on taxpayers for upgrades, norm anderson weighs in. he's got the 50 most important projects and google projects and he'll weigh in next when we return. hey, the future, what's her problem? apparently, i kept her up all night. she said the future freaks her out. how come no one likes me, jim? intel does! just think of everything intel's doing right now with artificial intelligence. and pretty soon ai is going to help executives like her see trends to stay ahead of her competition. no more sleepless nights. - we're going to be friends! - i'm sorry about this. don't be embarrassed of me, jim. i'm getting excited about this! we know the future. we're going to be friends! because we're building it. the power of a low volatility investing approach. the power of smart beta. power your client's portfolio

with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc.

president trump has committed to an america first agenda, planning to bolster our economy and the american workforce with a $1 trillion infrastructure plan. joining us now, norman anderson president and ceo of cg/la infrastructure. i didn't know something like cg/la existed. it's your business to know everything that needs done. >> to know everybody that knows what needs to be done about infrastructure. you can't know everything about infrastructure but you can be a good curator of expertise. >> and you're going to get to tell the administration and the president what the most important projects and the most doable projects are. there's 50 of them, right? >> there's 50 of them, yeah. we're actually releasing this

week a report with boston consulting group showing that if you pick projects focused on maximizing job creation, you either -- you take 50 projects, you can either generate investing a trillion dollars, $1.5 million up to 5 million jobs, depending on how you prioritize your projects. >> a lot of these are already funded? what do you mean already funded? >> what's interesting about this, because you get this super controversy. shovel ready. >> right. >> brain ready, permit ready. but what you really focusing on are a whole series of projects. look at the texas clean line project from oklahoma to georgia and alabama. provide two cent power. they have spent ten years getting that permitted and about $140 million. they're right there at the very edge. look at the high-speed rail project between houston and dallas. it's a land value capture project so it's not funded by the public sector and it allows

$15 billion, california is over $100 billion not going anywhere. private sector project is going someplace. so you've got to focus on the regulatory piece of this, addressing that issue. that's what we think the trump administration ought to do. i heard you talk about the omb director mulvaney who said the conversation last week in public is just in its early phases on infrastructure, which i think was a surprise to everybody. he looked at the $200 billion figure, said we're going to leverage it up to a trillion dollars but there's another way to go. we're the country in the world that allows the private sector least room to invest in infrastructure so asking congress for the trillion dollar check never made any sense. what makes sense is to clear out the regulatory problem and allow the private sector to invest. >> i didn't know that was the -- >> yeah. >> that's the bottleneck? >> we've got to talk to --

>> it's already funded and all we need to do is remove the -- >> yeah, 100%. >> and it brings the stuff in on time and under budget. >> and also makes our companies much more competitive. one of the things -- the other point i wanted to make to you guys is that we're at a break point in terms of technology. think of all the technology that you guys talk befry d yabout ev. sensors, driverless vehicles, where's the conversation about what we should invest in infrastructure. every time you hear a congressman talk about this, they talk about old roads and old bridges. who cares? no offense, but you've got to figure out where the future is going, right? these are assets that we're investing in for the next 30 to 40 years. what's the world going to look like in 30 to 40 years? how do we prioritize where we put our money? i think the private sector is way better at that than the public sector. >> so you're talking about this

this week? >> we have a big event on thursday at the reagan building in washington. it's an all-day event and we've got some pretty interesting participants from congress and from the private sector. >> where are most of the projects based? >> they're based all over the country. and if you look at the bcg report, what's really interesting because you've got to get people to support what you're doing. if you say 50 projects, you look at 50 dots on a map. but if you say indirect jobs that go into those projects, 50 projects light up more than 50% of congressional districts in terms of the inputs. and then if you look at the other piece of this, which is the long-term operationis and maintenance, that's seven times the initial capital cost of a project. if you really want to think about how you'd bring manufacturing back in the country, think about getting private investment quickly into projects. >> norman, thank you. >> thank you very much, appreciate it. when we return, a heated encounter between two tech ceos

in silicon valley. apple's tim cook and the uber chief. we'll tell you why the ride-sharing giant almost got kicked off of the app store, next.

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good morning, everyone. welcome back to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. among the stories that are front and center this morning, gasoline prices are on the rise. the latest lundberg survey shows that the average gasoline price rose three cents over the last three weeks and up 28 cents from a year ago. united airlines ceo oscar munoz will not become chairman next year as originally planned. united is also revising executive compensation policies to make them more closely related to customer satisfaction. all of this follows the incident in which passenger david dao was forcibly dragged off a united flight. and the world markets are rallying this morning, if you've been watching, just about everywhere with one exception. china stocks suffered their biggest one-day fall of the year on signs that the government there is growing increasingly tolerant of market volatility.

there had been hopes that china regulators would step in to help halt a market slide as it did back in the sell-off of 2015. while that would normally be good news to have the government out of the game, here it did cause the speculators a little concern. the market having the biggest decline of the year last week. >> they're not manipulating the market? >> oh, no! how will we make sure we make money. now to ppolitics. president trump will mark his 100th day in office on saturday. right now kayla tausche has a look at what the president's two dozen executive orders have in common. i've got to guess, they were all executive orders? >> that is one thread that they have in common, joe. but as of friday, president trump has signed 26 executive orders. that compares to 19 signed by president obama in a comparable period, but what's similar about all of the ones that president trump has signed is most of them delegate the work to agencies to conduct in-depth reviews and

then report back to the white house. for instance, on deregulation, the president has ordered all agencies to appoint a regulatory reform officer by tomorrow. a treasury report on how to right trade deficits is due. we did back of the envelope math from when the e.o.s were signed and when they set their deadlines but in all there are 46 deadlines the white house has set before year's end. the market is focused on two. first a report by the treasury department expected in the first week of june that will recommend how to change dodd-frank. that will inform the ultimate bill that congress passes. the second is an informal deadline. it wasn't set by e.o. but it is a plan with china to unwind decades of trade issues by mid-july. gary cohn said full trade reform with china would take much longer. >> the 100-day plan is a

kickstart plan for things that had been sort of in the hopper, some of them for four to six years, that have just sort of been stalling around the edges where we have to show each other that we can walk together, then we can start running. the 100-day plan is just a start. >> executive orders are typical, especially early in first terms, but the way president trump is using them, he's leaving it up to agencies to do these in-depth studies and decide whether they should produce the results that would echo the sweeping changes that he described on the campaign trail. joe, because these deadlines are set so many months in advance, it really gives them time to think about the state of the world, the state of our relationships with other countries and decide whether they should pursue what the president said on the campaign trail, but that leaves a little unpredictability for the markets so we'll see what the agencies end up coming up with. >> all right, kayla, thanks for that report. i'm glad you're down there,

kayla. i mean i liked when you were here, but it's nice to have you down there. >> you don't miss me in new york, joe? >> i do, but we're in a different place now most of the time. i don't see anyone from cnbc really much anymore unless you sit in. >> it's good to get to see you. >> are we going to hang on thursday? >> are you going to come over and see us. >> i'll roll out the red carpet for you guys. >> you'll be on set thursday with us, won't you? >> sure. >> okay. we'll see you thursday. >> you should be at the white house hanging with the pres. >> that was like a sure, like -- see you soon. >> i'd take the half full viewpoint. i think she's kpiexcited. >> we'll see kayla and a lot of other people on thursday. from tax reform to health care to a potential government shutdown, it will be a busy week in washington. joining us right now with how it could impact the markets is charles campbell, executive director at mkm partners and

james lu the founder and head of research at clearnomics. let's start out with what happened at france. the polls were right for once. >> good morning, thank you for having me. >> good morning. >> it is fascinating. le pen and macron in effect represent part of the same issue. in macron's case a neophyte who's never participated in an election before. le pen represents what had been considered an extreme political position, leave the you are yeu readopt the swiss franc. voters are discontent, unhappy with the economic situation, not unlike what we've seen in other countries, the uk, even the united states. >> so why is that cause for the markets to rally? >> there is a relief rally that the melenchon/le pen scenario

will not take place. and macron, who is market friendly and a bit of a conservative, if you will, friendly to private sector, will prevail by more than 20 percentage points in the final round. that's why european peripherals are outperforming and the french sovereigns are, european banks are outperforming. gold weaken, all consistent with risk on behavior. >> james, we go from that very quickly to a jam-packed week here in washington. a potential government shutdown looming on friday. do you think that we'll see past all of that, that there will be deals worked out? >> i do think the markets are right to be relieved today because of what happened in france but two weeks can be a long time. the u.s. election shifted completely in the last two weeks. there's still german elections coming up, you had the italian referendum and no one is talking about greece. it's not that markets can't get

past this and see past the events happening in the u.s. including the debt ceiling issue but it's a question of whether you're rewarded for that risk. european equities are at fair value. markets are expecting 15% earnings growth this year, which we don't think is going to happen. you look at the u.s. and markets look quite expensive. so we would be underweight equities in europe still. we like the u.s. but we would be neutral and we still think that the better trade-off is emerging markets at this point. >> because you don't have any of the volatility there or just because of how far they have been down? >> because the fundamentals just look better there. it's great that we got past this big event risk in europe but more is coming up. in the u.s., we're so much further along. from an asset allocation standpoint for most investor, you should still be overweight equities broadly but shifting that toward where things are cheap and that's emerging markets. >> charles, do you agree with that? >> the situation with europe, you have a relief rally today, probably continues for a couple

of days. behind that there's a major issue which remains unresolved and that is first and foremost the challenge of the generation is youth unemployment. it's in the united states, it's in europe, it's in france. france's youth unemployment is 24%, italy's is 28%. spains is 44%. that's going to be a major issue. credit markets are saying italy is something to watch. the spread on the italian ten-year versus the bund has doubled in just a year, and the referendum that resulted in renzi resigning in december, he tried to say let the government have more power to reform. >> so you're skeptical on the eu. what about the u.s.? >> we're still early in this administration. one question is did the administration learn anything from the failure of the first round of the repeal and replace of obamacare. you can only govern so much by executive order. you need to be able to reach across the aisle to the

democrats and even within your own party to get things passed. whether you think they are competent, whether you respect them, whether you like them is irrelevant. you need them. >> james, what would change your mind about u.s. stocks? >> well, the biggest thing that would happen is that clearly we see the policy on paper, especially tax reform, because a lot of what had trimmed the markets especially financials was predicated on what tax reform specifically would look like. the other thing that would change my mind -- >> if we see a passable tax strategy, you'd say there's more room to run here? >> potentially right. and that's a long-term structural trade. i don't think we'll get up to 3% or 4% real growth like the administration would like to but it does help support long-term growth. if commodity prices continue to rise, if the dollar continues to weaken here, which will boost overall earnings, then we could see an acceleration of earnings growth. but at this point the 9% to 10% earnings growth that the market expects is more or less priced in so it would have to be a

further acceleration in order to make the market more attractive. >> james, charles, thank you both. >> thank you. >> thanks. up next, ceo call. in session the chief of regional bank washington federal will join us on set. we'll talk to him about president trump's recent executive orders. i thought brad goode was ceo. oh, he's the marketing -- so it's really brent. all right. all right. either way. stay tuned, "squawk box" will be right back.

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welcome back to "squawk box." washington federal ringing the opening bell celebrating 100 years in business and the recent acquisition of anchor bank corp. let's bring in brent beardall, the ceo of washington federal. good morning. >> good morning, andrew. >> so 100 years. >> can you believe that? >> you haven't been there the whole time, though? >> i don't look a day over 90. >> let's talk about the world of banking, small banks these days. what's going on in washington, how it's relating to you, which is to say how do you think the changes in dodd-frank are going to impact the smaller and medium sized banks in the country? >> you know, everybody thinks dodds-frank, let's roll back and get rid of it. we're not in favor of that. we need regulation, we need good regulation, we need effective regulation. the problem with dodd-frank is

you have arbitrary limits so it's based on arbitrary thresholds. so we think it should be based on risk. >> what is it that you can't do what you want to do? clients that come in or potential clients you wish you could lend to or do something else for that you say, you know what, i'm really sorry, we're not in a position to do it? >> frankly, we're pretty conservative. that's what's allowed us to make it 100 years in business. there's not a lot that we can't do. but what we'd like to do is be able to take more of the resources, rededicate the stress testing for example, and put those towards our investors and our clients. >> how much does it cost to run the stress test for a bank your size? >> a couple million dollars? >> a couple million dollars a year? >> oh, yes. >> you were at $15 billion which means you're above the $10 billion threshold for stress tests --

>> in our history, we've been around for 100 years today, april 24th, 1917 was our inception in ballard, washington. we've done 20 acquisitions since going public in 1982. acquisitions can be a great thing but also a terrible thing. so you have to be very disciplined in what you do. so if it were up to us, our preference would be to grow organically and not do more acquisitions. >> how do you think about the big banks today? they have basically been out of the m & a game for a very long time, basically since the financial crisis. >> yes. >> do you think they should be able to buy up banks like yours? there was a period for several decades where a smaller bank would -- the business model was for bank of america to buy you. >> you know, i think the 10% certificate of deposit cap was put in for a reason, which was a good reason. we all looked the other way as some of the big banks went beyond that. i think too big to fail is a real thing and i think we need to do more about it. so, no, i don't think the big

banks should be able to acquire institutions at this point. >> and when you think about the other piece of this in terms of lending, you've heard president trump make the argument that there's not enough money getting out to people who need it. small businesses aren't getting the money, there's individuals who can't get the money. is that your experience or no? >> you know, our experience is that people are out there looking for the money, but there's so much regulation to get the loans. if you look at mortgage loans, for example, and we are a portfolio lender, meaning every loan we make we keep on our books. but if you get a mortgage loan, you have an inch of paperwork and people are saying, wait, what am i signing, they don't understand it. every new regulation that cfpb puts out there is trying to make the regulation better or easier for people to understand but more is not better. in this instance we think less would be better. >> so washington mutual is already taken? you washingtbigger washington fs

better? >> we have 100 years of history behind us and we have served our clients so well in the pacific northwest -- >> federal sounds like maybe you'll be okay because it's not -- >> well, the other thing too, if you think about our capital position, we are one of the strongest banks in the country. >> there you go. so you golf, right? >> i try to golf. >> someone gave me this. >> he's desperate to take you off message. >> no. do you play at aldara? >> yes. >> this says lost by brent beardall. do you have balls that say -- the weird thing is this was found before the ladies tee on number 6. is that possible? >> you know, i can neither confirm nor deny that is one of my golf balls, but in all likelihood, yes. >> so it's another brent beardall but before the ladies -- it was in the rough. did you have a mulligan? maybe it was from -- it might

have been from another hole. it might have been from another hole. you hit it so far -- >> i do have a slice, there's no doubt about that. >> breakfast ball, breakfast ball. brent, thank you. >> thank you very much. >> happy 100 years. >> you pay good for stuff like this. >> thanks for having us on this morning. when we come back, jim cramer will join us live from the new york stock exchange and we'll get his take on today's top stories, next. check out the futures, they are up sharply after the french election went as expected. dow futures up by 236 points, s&p up 30 points and the nasdaq set to open at a new record, up 65 points.

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to the new york stock exchange, and jim cramer joins us now. of all the weeks, jim, really important companies, with earnings in and then we have everything else going on in d.c. too. >> yeah, look, i mean, i think that last week we had some pretty good ones. just a couple of weak ones. they did set a good tone. i do believe that the numbers are going to be pretty good this week. i like the fact by the way that the euro is stronger. i mean, you have a decent story coming out of europe that i think may be a highlight for a lot of these companies, particularly international ones. so look it's good. i do notice that oil can't hold

and oil has been important for the market. the bonds, you know, interest rates are still too low. i know people want to pile into the banks and oil has controlled the action so the s&p may not be up as much as you think it should be off of europe. >> so as jim cramer, mr. "mad money," thinking about your shows this week, which earnings -- which companies do you think you're going to be saying, this is something that is part of a bigger story? what do you think we need to really pay attention to? mcdonald's, boeing, what? >> i think that 3m and caterpillar. 3m because of the traditional core holding. the rest of the world is doing better and caterpillar, because that stock has been stalled for a long time. if they call a bottom in mining and minerals and oil, then i think that you could be able to say you know what, a better second half. those are the two. 3m is opening at a high, but i do think that one has the best story to tell. >> yeah. mcdonald's just traded another

high, right? all time high. >> easterbrook has delivered. people don't understand that it's not just breakfast all day. it's about technology and the franchisees buying into the model has really mattered. they added additional shifts. they clean the places more. put more money behind it. that's what's driving this thing. people don't understand, this is a guy who is re-ignited the troops, who really determine whether the numbers are good. it's not just about what we see in terms of what they serve. it's about the franchises and they love this guy. they love him. >> it goes back to when they got rid of the trans fats but took them a year to get the french fries right. >> easterbrook is trying to change the food chain around the world. >> in fact, i think they still do have trans -- maybe they don't. >> they taste great. >> they do. but that wasn't supposed to happen. >> no. >> anyway -- thanks, jim. see you in a couple of minutes.

fries. this job is about hair. all gets distilled down to the very simple things. up next, tim cook's strong words for kalanick. we'll have the details. "squawk box" look right back.

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it's some more bad news for uber. "the new york times" reporting that the ride sharing giant secretly tracked iphone users even after they deleted the app from their phone. it's call fingerprinting. tim cook learned about it and he threatened to ban uber from the store. they said that the tracking is common industry practice used to prevent account fraud. indeed i should say, there was fraud going on in china. a lot of drivers were trying to use fake phones so they were trying to protect themselves against that. knowing what they were doing was not allowed it did something called geofence. apple's headquarters in cupertino, so any phone they thought that was owned by the apple employee, they weren't fingerprinting. hoping that the engineers wouldn't figure it out. of course, apple has engineers all over the world and they figured it out. it was a dicey thing for tim

cook because normally he might want to kick them off completely -- >> you didn't comply with the rules, you're out. >> but uber is a big deal. you don't want people buying android if they want to use this and do you go public and shame uber but then you're shaming yourself, giving the security flaw which allows app makers to take advantage of this. so anyway, it's a complicated situation. but -- >> pretty amazing story. so do you think that travis sat with his engineers and said, do it, and said don't it to cupertino? >> i don't know if he knew it himself but the culture at uber as we have learned over the past couple of months is dare i say so toxic that they have now done -- they have been using geofencing to avoid regulators, to avoid the police. they have put up fake apps to evade -- >> uber competitive to say it nicely.

>> being very competitive, yes. i think he's a genius for what he created in many ways but clearly how competitive he is, i get that, but there's lines. in terms of what you can cross. >> i get it. winning. >> what you can cross is a small company as a big company it's a different story. >> are you going to be a publicly traded company? >> right. >> be sure to join us tomorrow. right now, time for "squawk on the street." ♪ >> good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and macron and le pen advance to the second round of the french elections. couple that with the merger monday. congress returns to work this week. and one of the busiest weeks in years for corporate earnings. kax at a nine year high, gold is selling off. our road map begins with the french