business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen our best host for the hour is tim freeman. thanks for being here. >> thank you very much for having me. >> joe has a lot of tough questions. get ready on this. let's look at the u.s. futures this morning equity futures we are seeing at this point relative -- a flat line after some big gains that we had seen earlier this morning have been given back this comes after a rough day for the market the dow was down 1.3% yesterday. the s&p down about the same. the nasdaq 1.8% down facebook had its worst day since march of 2014. that stock alone made up 15% of the nasdaq 100's declines. >> god help us if the overall

market are dependant on facebook i'll debuting a new segment now. it harkins back to david faber and the -- back in the '90s. you know which segment >> not penguins. >> annoying market capitalization comparisons >> annoying aol comparisons. you remember the operative word there. he would pick four u.s. companies that had a combined aol? that market cap went to hundreds of millions instead of hundreds of billions. i'm not on facebook. i understand the eyeballs, 2 billion, 2 billion people, is that 4 billion eyeballs, except for pirates. it's close to 4 billion. maybe a little under 4 billion i understand that you advertise there. but you customize the advertising to the people you try to reach that's stealing private

information which is now coming out. the whole business model i don't know about >> i agree >> isn't the advertising just to sell stuff that other people make so here's my -- here's the theory, on twitter i want you, my friends, here are some troubling facebook comparisons you can buy netflix, disney and comcast for less than facebook after the drop yesterday >> wow >> all those assets that disney has, everything that comcast does netflix, which has gone up and will take over the world, you can buy those three for less than the market cap -- >> i can't believe you can throw netflix in there it's f.a.n.g. stocks >> it's f.a.n.g. i want more. you can pick ten 50 billion -- you can buy walmart and boeing for less than this stupid thing you look at on a screen and show your vacation pictures >> vacation pictures, but then you have trolls who have no idea

what they're doing with the information and neither does facebook know what they're doing with the information >> the advertising model itself, i understand, but even the model itself if you're selling everybody's information and you don't own it -- >> they'll say everybody knew we were selling information that's right but we didn't know you didn't know who you were selling it to. you could be selling it to hackers, because anybody who says they're doing it for academic research and are willing to pay money for it -- >> the last one is my favorite you can buy these three for the same price coke, pepsi and mcdonald's you can own coca-cola, the global company, pepsi, with all the tos, fritos, tostitos, cheetos and mcdonald's i don't know i don't know >> i can't believe that's after yesterday's decline.

>> after yesterday's decline it's a half trillion dollars how much is left, do you know? is it real your kids use it, right? you use it >> kids are not using it >> they go to snap >> do you use it >> i'm on facebook i loved it and the fact i can stay connected to people i don't see. >> what you're doing on it is monetized by anybody -- >> i bought stuff from facebook. >> stuff that -- no, not coke and mcdonald's >> i hope advertising -- >> like here's a cute bathing suite. >> the advertising gets aggravating, because you start to see the exact same ads constantly >> do you think it's worth a half trillion dollars? >> i don't know about half a trillion, but i don't know about going to zero. >> i don't know about going to zero anybody who needs to advertise something can find the exact segment of people they're

looking for. >> legally >> i don't know. >> just the whole idea of whether eyeballs -- i know eyeballs are important, i get it but the idea that you can -- walmart has a super store in every town in the united states, i don't know what they do in sales. so the growth is not the same. if you're owning a piece of a company and you have walmart and boeing for the same -- >> the biggest issue is the business model is not in the user's best interest interests are not aligned. i think that needs to be looked at >> they've been getting a free network for years. you don't pay for it, you don't do anything. if you're willing to pay for it, maybe you don't get your information handed over like this >> correct >> i don't know why i'm tfding defending, it because i think there will be massive changes

made the reason we want go in and look at every user who -- and figure out when they're watching what on television, the reason we don't do that is for privacy reasons. what is the "f" in f.a.n.g. for? >> facebook. >> this is important, if the f.a.n.g. stocks led us to 25,000 >> yesterday all the f.a.n.g. stocks were down going the was down 3.5% on the idea that regulation is coming >> the market is high. if facebook matters -- i understand amazon better i understand apple better. i understand google betterment but i don't understand -- i'm not on it. >> you're not on it. >> i'm a dinosaur. >> it's a data mining machine. people will pay for that not not necessarily -- >> would you consider pulling off of facebook just based on the idea that we now know what's happening with that information? >> i'm conscious of what i put out there and post and what i see.

but you have to be a very active participant and consumer and you have to understand what's going on i'm not necessarily sure everybody is i think there's a huge education that has to happen and people need to understand what they're giving up, what they're signing away, and then ultimately what they're being -- having pushed to them. >> starbucks is like 80 billion. home depot -- that's 200 billion. i want more. as i said, i have to give credit to faber, he did these as it turns out you're trading ten overvalue cats for one -- i want to add up brand name 50 billion companies, you can buy ten of them for one. i want more people to do this. i don't want to do the math wrong. i don't want to get something wrong. then i want to talk about this, too. this is uber getting new detail obsers on a

crash involving an uber self-driving car police say uber is likely not responsible pore tsponresponsib. this is chief silvia moore reportedly saying it's very clear it would have been difficult to avoid this collision in any kind of mode, adding the woman came from the shadows right into the road. uber did suspend all self-driving car tests after the incident the company is issuing a statement saying that our hearts go out to the victim's family. we are fully cooperating with police and local authorities in their investigation of this incident now this is the first known pedestrian fatality caused by a self-driving car the other accident, the guy was in the car -- >> it was a tesla. >> it didn't even slow down. >> because the train -- a truck turned in front of it. >> the notion of sitting there and not slowing down is scary. the idea that a human at the last minute probably would have hit the brakes this is bearing down on this person with no idea. that's scary but how many errors would a

self-driving car probably correct before it happened there's going to be these isolated incidents, but humans make a lot of errors, too. you see the car commercials, they have a car automatically stopping and preventing a human from backing up -- >> we have some expectations that humans will make errors we expect machines to be perfect. >> as they said there, maybe a person wouldn't have seen this either >> do you know that the tesla situation, i looked that up last night. the tesla situation, investigators eventually cleared the company and said it had performed address it wa eed as o perform, because you can't expect self-driving to be self-driving, there's always a driver there's to pay attention. that's the other problem, when humans hear self-driving, we assume you can turn around, put

your makeup on, flipping through your phone, doing other things you can't. self-driving as it exists today, somebody is supposed to be always there to take over the wheel immediately. that lulls you into a false sense of thinking that you can kickback while on the road >> we've seen enough movies where machines get out of control and do things. they're big, metal, heavy. we're just flesh like terminator. seeing a car bearing down on someone. >> that's our age. >> out of control car bearing down on someone. there's plenty of people that don't cross on crosswalks. a human will see that. okay, fine cars are not -- it's not just crosswalks where they let people cross, the self-driving cars they have to pick up -- >> i hope they don't have self-driving cars out there that assume people only cross at crosswal crosswalks >> it will slow things down. uber can't afford the pr bad news right now they can't afford another issue

like this. >> right >> let's tell you about another ipo. the world's largest oil company is walking back plans for that massive international ipo. saudi aramco is expected to list public shares on the saudi domestic stock market as soon as the second half of this year sources tell cnbc a potential international listing is expected to come later if at all. the saudi crown prince is visiting the white house today eamon javers joins us with more on how that is expected to go. >> good morning. the visit begins at noon today between the saudi crown prince, mohammad bin salman and president trump at the white house. the visit comes at an unsettled time in both countries here in the united states president trump has been shaking up his cabinet, firing his secretary of state last week of course in saudi arabia, mohammed bin salman has been engaged in a crackdown of hundreds of businessmen and

allegations of abuse we are expecting the two leaders to talk about a number of topics that the u.s. side briefed reporters on yesterday here's what we know in terms of both business and international diplomacy will be on the agenda. the u.s. is advocating for pra billion in commercial deals for american companies the u.s. will engage the saudis on plans for its civil nuclear program and supply of u.s. equipment, expertise and materials for that program on the diplomatic front, the united states is leaning on the saudis to counter iranian influence in the region and cutting off funding for terrorists for mohammad bin salman, this will not be a one-stop tour this will be a nationwide tour it comes on the heels of his visit to britain look at some of the cities where he will be visiting in the united states. he will be in boston, new york city, seattle, san francisco, los angeles, and houston where

you can maj jint o you can imagine the oil industry may be the topic of conversation >> thank you very much >> you bet >> a lot of stuff going on we'll talk keep your ears open. it's quiet, too quiet. could be a tweet coming any minute let's get to the market roundtable joining us for that is bob michael from jpmorgan asset management mike thompson is president and chairman of s&p investment advisory service and our guest host is tim freeman from elevation securities. i want to talk quickly, bob, about your view on ratesment you think 3.5 for the ten-year >> i think so. you have the fed raising rates -- >> four times you think.

>> four times, they probably won't indicate it tomorrow they're running down the balance sheet. a lot of supply coming, and the foreign buyers are not there the way they used to be. >> with all the debt service that the government has, what does 3.5%, move the whole yield curve up, i guess, to whatever it deserves to be. how much does our debt service go up at 3.5%? isn't that a serious number? >> will go up a lot. it's not only the outstanding debt that the service goes up a lot on, it's the supply. we estimate you'll get over 1 trillion in additional supply to fund tax reform and some fiscal spend. it will act as a headwind, but you do have a lot of stimulus coming from tax reform and from a fiscal spend the global economy looks good right now. >> why do you think -- you still like the bond market you like corporate bonds still you're a picked income guy

why be in anything >> it's more fundamental than that corporate america looks great. they have a lot of financial flexiblilit flexibility. they have spent the last few years taking out costs they will see the top line grow with consumer spending coming from tax reform. they have this windfall of tax reform, it's not a one-time event, it's an annual event ever after. >> you can always buy dividend stocks with 3% yields like facebook wait a minute, no, it's zero how about you, mike? as far as the market goes, i would worry about 3.5% it doesn't seem on an absolute level to be a high rate but higher than we are now stocks won't take that in a negative way >> no. historically, you know, equity markets, these kind of levels don't bother them that often what we focus on is the ten-year

obviously, you know, last year the fed raised rates then when the fed raises rates, you expect the curve to streepen and then you buy the curve last year they raised rates and the curve flattened. yesterday the curve flattened in anticipation of what we expect to be another raise. the phenomenon we're watching is how does the market respond and how does the yield curve go. we agree, i'm not sure we would be excited about anything out past intermediate or long end of the yield curve, but equities look good for all the backline economic activity going on earnings look strong we have double digit earnings growth coming for the next four quarters this quarter alone we expect 16.7%. the consumer will come back this quarter. over 8% growth is expected from wall street. there's opportunities. we just did a tilt we are looking to go more

international, developed equities, better valuations in the u.s. emerging markets should benefit from improving economic scenario we got rid of reits. there's a lot of interesting things to do this whole question of growth versus value will come back. >> freeman, morgan stanley says the stock melt up is officially over we hit 25,000, went a bit above it so the correction, sometimes in terms of points, other times it's duration. we're in the middle of this thing. is it churning around and consolidating and events will go higher or have we seen the best gains for the year >> i think we could test the lows again into that 25 area, 45 area >> the vix was up yesterday. >> the vix was up yesterday, but what was interesting with the vix, when we hit the lows of 2700 on the s&p, the vix went lower.

it went 21.5, and then came in then you saw buyers come into the market at that 2700 level. so there's still a buy on the dip mentality. we may have another two months of reverbrations, testing the down side. then it depends on the rate move and where we are then and where we will be in equitiesment i certainly could see us going higher if those things moderate. fed hike, three hikes baked into the market >> you have three. the vix, it will sit there for six months, and then not do m anything, then it can triple, go down a third a perfect proxy for volatility in and of itself on any given day -- like yesterday, what was it >> it's volatile >> it closed at 15.5 >> went to where >> 21.5 on the down trade, then leaked lower >> if the fed comes out and is

really hawkish, would that change your perspective? >> equities are 100% a function of rates the economy is in fine shape it depends on what the fed will do with rates. >> what's berkshire hathaway's market cap >> a lot >> how much? can you buy facebook or berkshire hathaway >> you can buy berkshire hathaway for, i don't know -- don't ask me this. i don't know. >> will you find out for me? >> yes >> which would you rather have >> berkshire hathaway. >> is it less than facebook? >> 504 >> tied with facebook. >> yeah. >> warren buffett, facebook. thank you, mike. i just looked at that. it's not how i feel about millennials or any of that stuff. >> i agree with you. >> how did it get to 5$500

billion. >> as an advertiser, there's a reason for it. >> when we come back, law americas on both sides of the atlantic are demanding some answers from facebook about the data firm that harvested information from more than 50 million users, the fallout for the social media giant is next let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left.

let's do some card twirling twirling cards e*trade. the original place to invest online.

>> clip >>. cambridge analytica denying claims that it gave away information about users. mark lasry is raising regulatory questions yesterday on "half time." >> facebook has not been able to regulate themselves, so if you have the government comes in and now it's a utility, as a utility there's a limit address to what you can make it's a utility stock i think that's the biggest problem facebook has are they utility or a publisher.

when you look at it now, i would argue what they are is a utility. they should be regulated because they haven't been able to regulate themselves. >> joining us is jesse himmpel from "wired magazine" and a stock analyst also joins us. welcome to both of you let's get your thoughts on this. what do you think about what mark lasry just said >> i think what's happening now, is that there's a public reckoning of what facebook's business model actually is what the quid pro quo is the kquid pro quo is they monetize the data. the issue the company is facing now and the public debate is the same thing that the company has been utilized for time and time again by companies up until now. >> the company would argue, you're right, we do do many of those things, but we told you

that all along, you agreed to that when you signed up for this does this draw regulators in >> yes i think what's happening is facebook will end up being the scapegoat for the bigger scrutiny over the large cap tech industry you have the fears over amazon, fears over google, fears over facebook you need a villain that you can actually target from a regulatory standpoint. i think facebook is in a catch 22 situation from a pr standpoint they managed to draw the ire from both sides of the political spectrum as well as both sides of the atlantic. right now no matter what they do or say, it's a losing proposition. >> jesse, are they a scapegoat or is this a question of wait a second what have we been giving them and what have they been doing with it? >> this is that question this is a crisis for facebook.

consumers always understood we are the product, we give you the information and you give us the product. we expect you to be a good steward of that information. i think facebook was not only a good steward of our personal information but now there's a fuzziness i've never seen from the top of the company i've never seen the company react through complete silence it suggests inside facebook nobody knows what to do. that's more alarming and it will be troublesome for the company >> my guess is they don't know exactly what happened or if there are other instances. to me it sounds like anybody who was willing to come along with money could have whatever information they wanted on users. >> let's not underestimate how big a deal it is this service that serves billions of people doesn't know quite what happened crisis pr 101 says you stand up as the leader and say we have a situation, we're working on it we have not seen that. we've seen executives tweeting,

talking through public forms >> it's not a data breach, blah, blah, blah what does that say about what the company actually knows what to do. >> james, what would you like to see? you said there's not much they can do, but what do you think eventually happens joe pointed out crazy comparisons of other companies >> what is your price target >> 210, marginally higher from here >> 40 points higher. >> up until yesterday it was 25 points higher. >> you think it's a 6$600 billin company and deserves that market cap? >> the way i look at it is from a valuation standpoint, it's not as expensive as an amazon, but the growth platform of the company far outpaces any of the other tech groups growing at over 40% facebook's challenge now, and part of the reason for their lack of more explicit transparency from the get go is because no matter what they do

or say, they're in a losing situation. it's impossible. you can have crisis pr, but when you can't appease anybody, no matter what you do, that is what they're trying to get their head around much does this turn their business model on its head, and if that's the case how do you reassess the valuation what facebook has going for it, it will be choppy for a while. you are in a situation where the multiple has peaked it will rely completely on earnings the safety net for facebook is that there's no other company that can replicate their scale with the exception of google the privacy laws that are being passed in europe are in their benefit because it threatens new entrants, which makes the establishment much more -- makes the incumbents much more of the establishment. if you take a long-term view, they're somewhat safe. but in the meantime the multiple has reached the absolute peak. >> jesse what do you think when

you look at the regulatory >> what facebook has going for it is also what their biggest challenge is it's a utility so people need it to work. they're not going to flee from it they might use it less, but no one is going away. the challenge in the short term to appease consumers so we trust them enough. the challenge long-term is to ultimately evolve its business model so that it can seek new opportunities. what do you think leadership should do at this point? is this a mark issue is this a sheryl issue >> this is a mark and sheryl issue, no doubt, and not a one-time speak opportunity facebook has to talk to people inside the company, from what i hear they're concerned we need to hear from mark and h right away his m.o. is he does long, let me tell you how it is kind of posts on facebook, he pairs it with a

fix. my assumption is mark is looking for the fix, he doesn't want to speak until he has the fix he has to separate those two things, he has to speak perhaps before he has a fix to realize -- this problem, i think about it like climate change we all know climate change is a problem, but it's so large and intrak intractab intractable, we don't know how to grasp it. >> we all don't know that. >> okay. >> don't speak for me. >> okay. >> let me speak for me >> okay. >> group thing i'm not big on. >> in the same way climate change is a large, nebulous, fuzzy topic, big data and what it means for consumers is a large, fuzzy topic how do you wrap your mind as to what that topic means? you do it through stories, and tech whistle blowers this particular thing is not news on friday it's something that actually

reporters have been teasing away at for 2 1/2 years yet it wasn't until friday that everybody got angry. that's because one person stood up and he -- chris wiley, this young canadian stood up and said here is how i took part in this program. and i think that going forward it will be like a game of whack a mole you will see people like chris wiley, young engineers in the industry and in the businesses ancillary to the industry, they'll look around and say i regret how i behaved they'll speak out about what they did and every time they do that that company will be vulnerable >> jesse, thank you very much. james, thank you >> you would say shy get o-- i should get off myspace myspace satisfies all my -- i'm kidding, i don't have either. coming up, the saudi crown

prince is visiting today michael rubin will be here to talk about saudi reforms a tndhe relationship with the trump administration energy is changing fast and we're changing with it. building a smarter grid, investing in new technologies, that's aep's road to the future. and the international brotherhood of electrical workers helped make that happen. the ibew's outstanding union professionals have the skills and training to get the job done right. that's good for our customers and for our bottom line. ibew members are our power professionals.

they should be yours as well. - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate!

you wanna play again? - anncr: prevagen. healthier brain. better life. we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

♪ saudi arabia's crown prince will be meeting with president trump at the white house today it will be a test of u.s. and saudi relations. joining us now is middle east expert michael rubin the way we characterize this, michael, this could be setting the tone for saudi relations

going into the future but also a bigger -- we can talk about the entire middle east with th juxtaposition of iran versus saudi arabia, and it all plays into a long-term strategy for us that i don't think is positive for iran, especially with pompeo >> you're absolutely right, joe. mohammad bin salman represents a new generation of saudis this is why he's such a consequential figure the reforms he's implemented have been a dream for many, both in the united states and in saudi arabia the question is whether all the eggs are in one basket and whether that's a good thing given the saudi propensity to drop the basket. >> what do you think -- is this a meet and greet more than a strategy there will be a lot of show, pomp and circumstance or is anything substantive going to be discussed? >> no. i do think that there's going to be a lot of substance. you know, initially in the trump

administration the honeymoon was with saudi arabia, that donald trump was not president obama because the saudis did not like president obama, if he fethey f thrown under the bus because of the iran deal. but there's the future of the oil industry, there's any number of issues we could be discussing >> have you seen all scuttlebutt about jared kushner and mbs at this point? if you like trump and kushner, it's a good thing to have a personal relationship. if i don't, it's going against all the normal paths of diplomacy and you're doing it wrong. how do you feel about it

>> this is nothing new every u.s. president or his team since franklin delano roosevelt developed a close relationship with the saudi royals. the exception to that was president obama who seemed to pivot in a different direction therefore jared kushner is back to the future rather than anything different >> so, at this point, let's talk about these -- tillerson is gone pompeo is in what will happen with the iran deal when are the next key dates? what do you expect the outcome to be? >> i'm a historian, so i get paid to predict the past, admittedly i only get that right 50% of the time. what we do know is the iran deal was sold on the idea that it would bring peace and stability to the region. now we have mohammad bin salman,

the crown prince of saudi arabia, he is talking openly about saudi's need to get nuclear weapons should iran develop them the key thing about the joint conference plan of action is unlike when south africa gave up its military nuclear program in 1991 or libya in 2003, the military nuclear infrastructure remains in iran. that's why people are so worried about this that's why this is such a big issue for saudi arabia my guess from what i'm reading in the press and hearing is that the iran deal is toast, especially if the europeans don't make concessions with regard to renegotiation of issues like the ballistic missile program. >> what happens -- if the deal is toast, what happens at that point? part of the reason we were told this deal has to happen is because we lost the support of the rest of the international community. what pressure can we bring to bear if this deal goes away?

>> one thing to remember is when it comes to sanctions and pressure, the europeans and others will complain about american unilateralism, but across administrations it's the unilateral solutions which have been most effective. the president, which was actually toughest on iran was bill clinton when we looked back at the executive orders that sanctioned oil, when we looked back at the iran/libya safsnctin act which sanctioned european companies doing business in iran this is the main issue when we look at president bush and president obama, the key issues were the financial sanctions in effect what they do is they tell international businesses you either deal in iranian money or in dollars, but you can't do both >> there will be a charm offensive. i'm sure it can be very charming, but when you look at some recent actions in saudi arabia, it looks like there's more western sort of approach to things, but then you look at

some of the actions taken against -- you know, take, for example, our frequent guest that was in the ritz kafcarlton for while tchl while. it was brutal, a throwback to the old days is this guy going to be a western reformer or just more of the same is that business as usual in parts of the middle east still >> what worries me is the american infatuation with reform in the guise of one person the issue is, you brought up the ritz carlton where mohammad bin salman imprisoned hundreds of opponents to extract concessions and cash, the flooif knifes aro him. what happens if he fails or if the pendulum swings back the other direction? that's what i worry about. we can cheer and lead a single person, but when that person is gone, is there a systematic

reform that will back him up and make these reforms perfect you add into this the yemen conflict that's been the graveyard for saudi ambitions and the ambitions of various politicians for generations. if mohammad bin salman who is associated with this conflict is not able to succeed what will happen in saudi arabia that's what should be worrying analysts >> okay. michael rubin, thanks. can you tell us where oil prices are going after its all said and done i guess that's not you >> the answer is chinese fracking on that that keeps saudis up at night. >> great thanks >> where is arthur going you see that >> i know. i saw, he's leaving. >> getting more spiritual, i think. when we come back, stot strate stock strategy ahead of the big fed announcement

we'll talk with jim paulsen at the top of the next hour. and then frank oz will be joining us you may know him better as miss piggie, yoda, cookie monster he will talk to us about his new project. grover also talking trade with commerce secretary wilbur ross. he will join us live at 8:15 eastern time this is "squawk box" on cnbc and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances.

authorities are investigating the deadly accident involving an uber self-driving car we have more details from the tempe, arizona police department which held a press conference last night. an uber autonomous vehicle was driving about 40 miles per hour when it struck a pedestrian. 49-year-old woman on sunday night. safety driver was behind the wheel, but the vehicle, a volvo suv was traveling in autonomous mode at the time the police department said it showed no signs of stopping. the national transportation safety board is conducting an investigation into the accident.

uber has halted all of its self-driving pilots across the united states. there have been a number of less serious accidents involving autonomous vehicles, but this is the first known pedestrian fatality by one. so this is another crisis for uber, but also could have wide ranging implications for this emerging industry, one that's still growing, one expected to be worth $7 trillion one day. and one in which every major car company and major tech company and a number of startups are making big bets on it comes at a time when regulators are trying to find a balance between public safety and letting this technology develop. the promise of this technology is that it's supposed to eliminate human error, make roads safer and save lives as well as reduce costs that may be a more difficult proposition by this industry given the latest accident. back to you.

>> some things we heard was that this woman came out of nowhere she was right in the middle but came from nowhere, it was dark when you hear somebody say things like that and it's a human driving, you assume maybe they were not paying attention maybe there was texting taking place. how does the technology work can you understand anything behind what may have gone wrong? >> that's a good point i heard you guys talking about this earlier the police department said the woman was not walking at a crosswalk, and a human driver may have caught something like this, but the only way this technology gets better is by testing it out on public roads you have companies like weymo, who has 4 million miles as of the end of last year and uber with 2 million miles you have one fatality. in california there's been about 60 accidents, many caused by a human error, either a human in

another car bumping into a stopped or slowing autonomous vehicle or when a human that safety drive hear to take the reins. these are big, philosophical questions to answer. >> with the situation with tesla, fatality down in florida, where the guy was in an autonomous vehicle driving, a semi drove across, it was something about the glare from the sun that didn't let the monitoring systems pick it up. i don't understand how the technology works i've had situations where i was driving, somebody stepped out into the road wearing all black at night you can't see them i don't understand how uber's technology works is it trying to sense things and the woman stepped in at the last sense? i guess that's what they have to figure out >> it's a good point we are going to get more information. because remember there are sensors all over there's sensors all over this particular vehicle this volvo suv

one thing we can do from this accident or uber and the authorities can do is analyze what happened, who was at fault here you bring up the tesla case, which is the technology was not found to be at fault >> that is wit an asterisk. i went back and reread everything from tesla yesterday. the technology was not found to be at fault because you're always supposed to have an attentive human driver who's supposed to catch any of these things that lulls us into the sense when you have an automatic driver mode doesn't mean you can't be paying attention. >> becky, i think the big question here that could have real implications from this case in particular are the regulations surrounding this the reason so many companies are testing autonomous vehicles in arizona because there are so few regulations. they don't have to submit the information. whereas, in a place like california which uber left to do testing in arizona, they're now in california as well, they require accident reports and a lot more information and also next month they're expected to

allow cars on the roads, self-driving cars, without that safety driver. so who knows if that's going to happen at this point. >> this is the message rippling across silicon valley this week is regulators are coming in one form or another. deidre, thank you. >> definitely look both ways. >> it will mess up a lot over in london. >> you look the wrong way first, right? >> yeah, i do. anyway, you learn quickly though black cabs bearing down on you. coming up, looking for a safe place to put your money in times of volatility? we have you covered. dom ch tu,he march madness genius has a look at some safe havens next. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker.

the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. today, the new new york is sparking innovation. you see it in the southern tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. which helps improve every aspect

of advanced rail technology. all with support from a highly-educated workforce and vocational job training. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. like you do sometimes, grandpa? with usand puffed...state, well, when you have copd, it can be hard to breathe. it can be hard to get air out, which can make it hard to get air in. so i talked to my doctor. she said... symbicort could help you breathe better, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. symbicort helps provide significant improvement of your lung function. symbicort is for copd, including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol increase the risk of death from asthma problems. symbicort may increase your risk of lung infections, osteoporosis, and some eye problems.

you should tell your doctor if you have a heart condition or high blood pressure before taking it. symbicort could mean a day with better breathing. watch out, piggies! get symbicort free for up to one year. visit saveonsymbicort.com today to learn more. if you can't afford your medication, astrazeneca may be able to help.

recent market swings have investors searching for safe havens the march madness genius dom chu joins us now from cnbc headquarters we have no time to talk about it i will say, i went with my heart and both my teams -- you know, a musketeer, xavier was bengalized did the bengals go into the locker room before the game and tell them how to do it >> better than being retrieverized. >> no, did you have clemson? >> no, i did not

i still had -- i had uva in one of my brackets but my final was uva and villanova. >> as we take a look at these safe sectors, take a look at utilities and consumer staples both under performing so far this year. the real issue becomes whether or not these safe haven trades in a down market can perform in an environment when interest rates, we'll show you this, are heading higher if that trajectory goes, the federal reserve is going to be key because investors may not look towards some of these safe sectors if they know that interest rates are gradually going to rise. these sectors become relatively, becky, less attractive. >> dom, thank you very much. also, our thanks this morning to tim freeman, thank you for joining us. >> thank you for having me. >> we'll be right back but they're not what people really invest in. what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus.

because when you invest their money without distraction, hidden agenda or competing interests, something wonderful can happen. they might just get what they want out of life, and maybe even more. i thyou never got the brakes looked at?l... oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think

and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly.

you know what's not awesome? gig-speed internet. crowne plaza. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party.

wait and see markets will be monitoring the fed. meanwhile, wall street is looking to recover from yesterday's tech fueled selloff. the fallout grows. facebook shares under pressure again this morning following that damaging privacy scandal. the latest developments are coming up. and you may know him as fozzie bear. >> wacca, wacca. >> grover. >> it is true. >> or the voice of the greatest jedi that ever lived. >> do or do not, at least try. >> puppeteer, actor frank oz is our next guest >> as the second hour of "squawk box" begins right now. ♪ ♪ ♪ it's time to play the music

live from the beating heart of business, new york. this is "squawk box. how can it not be a good morning when you hear this welcome back to "squawk box," everybody. we are live from the nasdaq market site in times square. i'm here with andrew ross sorkin, joe kernen is off today. dow futures up by 51 points. the s&p and the nasdaq both saw their biggest declines in about six weeks yesterday. this morning it looks like the s&p has indicated up by about 8 points, nasdaq up by 19 although we are still continuing to follow a developing story on the stock that brought everyone down yesterday. that's facebook. facebook shares are down once again this morning on news the data firm cambridge analyitca. >> the verge is reporting that

facebook will be holding an emergency meeting with employees later today to talk about the fallout and allow employees to ask questions. facebook has hired a digital forensics firm to audit cambridge analytica and it deleted the data on some 51 million users. they want to know why they had that information in the first place. want to know why facebook didn't know what it was being used for. we have our first on camera comments from facebook carolyn everson says the company is working to get to the bottom of the issue >> we are unbelievably outraged and beyond disturbed at the allegations that data was misused or our policies have been violated, and i can assure you from mark all the way through the entire condition we're going to pursue this rigorously we are going to do a broad, sweeping investigation and forensic audit to understand what happened, how do we prevent that from going forward, but

also we are going to pursue this to the fullest extent of the law. cambridge analytica issuing a statement saying that it strongly denies claims that it misused data on users. this isn't the only potential scandal for them brittain's channel 4 aired an expose where undercover reporters filmed ceo alexander knicks discussing potentially shady business practices. >> we set up a fake i.d. and websites, have students with i.d.s. there are so many options. we have lots of experience doing this >> after the report aired cambridge analytica denied any wrongdoing saying, quote, it does not use any untrue material

for any purposes in separate news facebook's security officer is reportedly leaving the company. this follows reports that he had had disagreements over how the social media site should be handling the spread of so-called fake news. he was on the side of making sure that facebook fessed up to anything that it had been involved in and make sure it was much more open and transparent. >> so there's a lot of issues surrounding facebook many, many positive issues 2 billion eyeballs 2 billion people, 4 billion eye balls. as you said, if you take out pirates so it's 3 point -- 2 billion people, 4 billion eye balls with 2 billion people unless you take out pirates. >> monoocular. >> but yoga people have a third eye. >> maybe they balance out the pirates. >> anyway, and your dvertising it's global. i understand all of that and then you've got the negatives though where i worry about.

you're not stealing data but you've got data. about everyone. >> it's a business model >> it's a business model i'm not going to talk about any of those things. it's growing quickly just in valuation we pulled up -- we got a little thing going called troubling facebook comparisons. >> i don't know if you saw this. >> i'm watching. >> similar to david saber's annoying aol comparisons i don't say this will be another aol. that was scary >> what was the top of aol i don't remember. >> it was a merger when it bought time warner 100 billion. it was 100. >> right. >> but here's some of it i mean, they're all interesting. i finally said you can either have warren buffet or you can have mark -- there he is a new one. you can buy jpmorgan and goldman sachs and still have money left over before you're able to buy facebo facebook you can buy the entire defense group. lockheed martin, raytheon. you can buy johnson & johnson and merck.

aga gendynn, united technologies and raytheon for 520 you can buy all of them. throw this boeing. >> throw in boeing it's 520. you need an extra 20 they're barely worth facebook. >> your point is what, that facebook is correctly valued >> i'm not -- >> you're not -- >> no, but you can buy mcdonald's, coke and pepsi coke and pepsi remember "saturday night live" >> pepsi-co. >> and walmart and boeing i think. 500 billion. after the selloff yesterday. after the selloff. here's why i'm saying all of this because the market was down 500 points at one point yesterday and all you could really see was facebook so the fang stocks have taken, you know, a lot of the meltup up to 25,000 in the market. they were very important components of it i can understand amazon, they deliver stuff, they've got the

web stuff. this one i've always been not really a believer necessarily because i'm not on facebook. i'm just not sure looking at a computer screen can be worth as much as making seven -- >> it's worth a lot. people are living their lives on facebook >> i don't like that either. >> of course, the stella blues band. >> you've done advertisement. >> we've done advertise am it works it works we do a little bit of instagram. >> i was thinking advertising is dependent on selling products that are actually made by someone that is valued at far less. >> no, but they're also spooky that way, joe. if you go online someplace and look for something in google and then you go on facebook, that product magically appears in your feed. >> that's scary. i feel violated. >> welcome to the world we live in, joe. it's one of constant violation. >> this is a wake-up call. facebook didn't even know. >> it's outrage gus. outrageous. >> facebook didn't even know what was being done with the information. >> if you read the article this morning in "the new york times,"

this is part of their sop. >> yes, standard operating procedures. >> they make this stuff available. and it was violated. >> the rest of us didn't realize that. >> what did you think was going to happen is the question i had for facebook. >> we had a journalist this morning who said we thought they would be good stewards. >> oh, we thought they would be good stewards. >> what does this mean for regulators >> i think it means it's a monopoly and it's multi-fas city setted. >> you're a renaissance man. >> when i was in russia, we had to bring all the technology -- i was the beta guy i built an isdn network in russia it was part of what i had to do to run the bureau of the wall street journal >> so you're allowed to talk >> you are here. you are here. >> thank you very much >> because the fed -- >> kicking off a two-day meeting. >> we had our -- did you want to make fun of this survey? >> oh, no. athletes survey? >> no, this is the cnbc fed

survey. >> cnbc fed survey. >> you're not going to -- >> liesman joins us now. >> letting you know you had the opportunity to do so. >> a guy earlier said 3.5 before the end of the year. >> i'm going to show you that. everybody is sure what's going to happen this meeting it's beyond this meeting what the debate is going to happen. it's a big risk to the up side survey of 40 economists and strategists. 100% see a rate hike to be announced tomorrow 83% expect the next rate hike in june and the median forecast, not the average, median, it's 3 for this year and 2 for 2019 that's where the agreement ends. take a look. what we're going to do here, guys, a distribution chart i thought this was the best way to show the debate this next chart shows how many people have each answer for the number of hikes. there's 21 people that say three hikes and then what's the next answer 18 people say four hikes so the median is three but all the risk, when you look at this chart, what's nice about this

chart is all the risk is to the up side. there's nobody -- nobody is betting it's going to be 2, 1, zero all the additional bets are three and four and there's even one at five there. rob morgan, chief investment officer says the fed will raise rates at the march meeting and begin to signal in the pronouncement and future commentary that four hikes in 2018 is the new expectation of the committee. most of the risk is to the up side the median is 2, more people at 3, fewer at 4 and 5. if you want to take a look at the overall funds look, guys, men and women, in fact, think that the funds rate is going 2.86, 2.85 by 2020 long run of 3.21 that's the outlook right now and the risk is to the up side that's the story. >> for more on the market -- thanks, steve. >> my pleasure. >> for more information we're

joined by jim paulsen, chief investment strategist at leuthold group and from chicago, scott nations of nations shares. how convenient works for -- that's very weird is that just you went to a company with your same last name that's very serendipitous. >> same joke you used last time. >> yeah. yeah yeah really okay so you've been on before >> once or twice >> okay. he is -- oh, yeah. cnbc contributor all right. i should have known that anyway, jim paulson -- >> good morning, joe. >> how are you feeling overall you were looking right there for a while with inflation and now the latest couple of data points didn't look as hot as we thought. are you still -- is that still your main sort of concern about where everything -- equities, bonds, everything that is really sort of keying off of that

is that still sort of the trouble spot >> well, i think that's one of them, joe. i haven't really -- i think wage numbers come and go month in and month out but i think, you know, commodity prices have not backed off much inflation expectations embedded in tif bonds haven't backed off much the ten-year yield is hovering at 289, 290. ism price surveys among manufacturers in service sectors are still very high. i think we're going to come back around to it maybe in a couple of weeks again with the next payroll report it will still be an issue. for the market, it's still a number of vulnerabilities from high valuations to high expectations for the economy and for earnings that probably can't be surpassed but could be disappointed to a lot of financial liquidity growth which is now contracting for the last three quarters rather than expanding. the loss of the wall of worry.

we now have more bullish investors getting out over their skis, for example. you've got rising yields that are already up and biting and likely to probably move higher as steve just suggested with the fed survey i think you could have multiple or margin erosion coming up. cost pressures emerge here in the second half of this year, and we might even have a little dose of stagflation. >> you said stagflation. >> they keep pressure on the market. >> i don't know that i was thinking about scott nations and thinking about paulsen. did i say don. >> you said dome. >> my no, ma'am thanks you when you see it, we have dom chu we talk to very complicated anyway, that's all i wanted to say. let me get back to -- no, i do want to -- so you think -- >> it was great being here.

>> senior economist. >> he's a real economist. >> real economist. >> you have hung out in jackson hole. >> we did i just remembered that or he remembered that. >> i want to hear you play one day. >> all right so you heard what jim just said. >> kwa. >> -- yeah. >> and what does that mean for powell >> in terms of stagflation, the dow looks really good. we have a lot of fiscal stimulus coming fiscal stimulus will add a percentage point this year and next year so the chance of having stagflation is really quite low because we're opening up the spigots on spending and taxes. that's going to put a lot of pressure on short rates going to steve's survey we're in the more hawkish camp we think they're going to go four times this year we think they will signal that tomorrow and we think there's a lot of pressure on the long end.

not only do you have pressure on the long end from the short end but you also have the fed balance sheet online they're going to be getting rid of about $250 billion. we have the ecb tapering and you have this very strong outlook. just one other point i want to get to, technical here, when we're thinking about inflation, one thing that's going to happen, you're going to see the numbers. the really weak numbers we had last year were the first half. when you're looking at year over year changes, those are going to roll off by summer you could have unemployment under 4 you're going to have inflation over 2 and markets really haven't reacted. >> that's interesting. >> scott, while i have you there, just talking about the market in general. facebook is an important part of the market you saw what happened yesterday. it sort of did cast a paul on the overall averages is facebook important? if something happens -- if this becomes more than just a one-day story, is that bad for the -- do we think that the s&p is going

to go back down? >> i think it gives sellers or people who might want to sell an excuse, you're absolutely right. it was tough for the whole market every sector was down yesterday during the middle of the day, even at what you might call the haven sector, the utilities. in fact, the only haven asset that rallied, that caught a bid was volatility two other big ones, treasuries and gold were up only slightly and treasuries when i sat down treasuries overnight had given back everything that they had gained yesterday what's that tell us? i think it says that the world is coming around to mark's point of view that rates are going higher and they're going higher more than we had expected and we're probably going to get four interest rate increases so that's why gold and treasuries didn't do particularly well. the s&p is still showing higher highs and higher lows from the february 5th low so that's okay pretty good shape and that is sustained as long as the s&p

stays above 2677 so above there i think we're okay and facebook remains a unique story. >> mark, one thing you learn when you think about economics, there's no free lunch. >> right. >> when you see what you just laid out there, there's no free lun. , spend more, increase the deficit and we'll get it back. is there a free policy lunch to be had is it because of the structure of this policy lunch in the sense of incentivizing and a corporate tax cut and there's a free policy lunch with no down side >> no. when you think of the spending, there's no free lunch. that will manifest as higher rates. when you are looking at the federal deficit, that will be 5% of gdp in 2019 and 2020. that's unprecedented for where we are at this stage and cycle when you look at 2020 then, once we get off of this fiscal high,

you'll hit this sharp deceleration then you're talking about very low growth and the risk of recession goes up. >> unless the corporate tax cuts kick in and we have a productivity boost from the new machinery and boosts that are out there for people. >> in our forecast we're pretty bullish. we think that the tax cuts will have big effects but they're really front loaded. over time the benefits of the tax code to investment actually diminish so the interest deductibility gets more strict the expensing goes away after five years this is really kind of a short term phenomenon. >> we've got to go, paulsen. by the end of the year we're higher or lower on the s&p from here >> i think we're going to be about where we are, joe, but we might be lower and higher between now and then, flattish. >> i'm going to let you go and get back on facebook and -- doing what, i don't know, but anyway -- mark, thank you.

nations, see you later scott. >> thank you. when we come back, it is national agriculture day, and guess what we are joined by astronaut dr. mae jemeson and the ceo of 4-h dr. jennifer serangelo you are watching "squawk box" right here on cnbc

guess what folks, today is national agriculture day, that's why i'm wearing green. while it might not capture the regular press attention of social media or augmented reality, agriculture has been a traditional big disrupter. we are joined by two leading voices sounding the importance of ag science and s.t.e.m. education. dr. mae jemison is the leader of the nonprofit starship and jennifer cerangelo is the president of the national 4-h council. great to see you here today. >> thank you. >> people think national ag day.

maybe they don't realize how involved agricultural sciences have been in a lot of the development we've seen i know there are things like diabetes, the insulin that's developed comes from some farm animals and that's how we get things what else should we know >> agriculture science affects all of us every day. if you like to eat, if you like to be healthy and to have nutrition, you're going to be engaging with agriculture. so today we're so happy to be here for national ag day. >> i was looking through some of the developments and it's kind of stunning. even band aids the reason they stick to are because of proteins. >> proteins. >> what are some of the leading edge things that are happening >> right now the major developments in agriculture are many of them in electronic technology. >> really? >> from drones to precision agriculture, robotics, ai. all the data we gather every day around our soil, our plants, our air, our water has to be analyzed so these are some of the emerging jobs and opportunities in agriculture that we're here to talk about

today. >> i think sometimes when people think about agriculture they miss the fact that from clothing you wear, as you were talking about, different kinds of products that you use and the fact that we all eat in the agricultural industry and its related industries is like 5% of the u.s. economy it's close to a trillion dollar kind of industry this has impact. and fundamentally we have to eat no matter what you say by 2050 there will be about 10 billion people in the world. we have to produce 60% more food and we have to do it in a way that's sustainable and so how do we do that we have to get a whole bunch of folks much better involved with agriculture and the industry and being smart of it. >> if we made the same gains in the u.s. -- >> except for some of those gains we made in the last 100 years aren't sustainable over the long term so we have to do this even smarter. we have to do it in such a way that we preserve the resources

that we have on this planet. that's the reason why we're so excited about the idea of getting more students involved with science literacy, agricultural sciences. >> do you think that we need to work on the stigma of using modern technology, like genetics to do improved yields and things like -- i mean, at whole foods, if it has anything to do with gmo -- >> gmoes, you can't have it they better not need any medicine that was developed through genetically altered -- >> there's a range of things that are available what happens when you get people who are well versed in this, you get a range of information that's available from the production to the distribution to the how you prepare foods all the way through. so it's that whole range of things whether you use some, you know, genetic manipulation or whether or not you look at how do you grow things in the soil, all of that is important.

>> it seems like the advances that are being made, you know, break neck pace at this point in biological we should be pretty good at the challenges you're talking about, sustainability, greater yields, healthier. i just -- i would be very bullish. i wouldn't be malthusient about running out. >> here's the thing. what we've done over the past year with 4-h, bayer and 4-h did a survey 80% of the science teachers said it's very important to teach agricultural sciences. less than 50% feel comfortable only 22% of them teach it in their classrooms no matter what kinds of incredible work is being done in the laboratories, if you don't have the people able to fill the jobs, it's not going to matter. >> jennifer, what are you doing to try to fix that >> currently usda estimates there are tens of thousands of

jobs in agriculture companies that are going unfilled. >> because you can't find qualified people >> can't find qualified people that's what bayer and national 4-h is doing to raise awareness for our health, nutrition and food supply. we take for granted our food supply. >> is it that it's not sexy? people want to go to silicon valley and create self-driving cars and learn how to code. >> it's true when you think about how a young person can apply science in a way that's going to affect everyone's life and make it better every day, food, nutrition, health, those are everyday needs and this is really -- for us, we're inspiring young people we believe they can make a difference in the world and really empower them through agriculture science. >> dr. jemeson, i've spoken to you in the past about s.t.e.m., how eager you are to get people involved in s.t.e.m. how much tougher is this, agricultural sciences?

>> agricultural sciences, there's some differences a lot of it is life sciences and biology. i was a chemical engineer as an undergraduate. coding now we have to understand -- you know, we can monitor the water and the soil you can use space technology you can remotely senseand see the crops and land management. so it's really about getting that information out to folks and exposing them to what can actually happen, right the kind of -- what do you call it, sexy jobs? take a seed, watch it grow if you grew up on a modern day farm, which i've had the pleasure of doing, you see the stewardship that our farmers put into every kind of food that we

eat, from dairies, to crops. they are really our stewards of our environment and today on national ag day we're excited to celebrate what they do and to bring even more young people into agriculture science. >> ladies, thank you. >> i was going to say it's the first day of spring. >> and it's going to snow. >> parents want to learn more about ag science thanks to bayer they can go to 4-h.org/bayer. >> nor'easter bearing down. >> think spring. >> i don't know how you -- are we getting better at s.t.e.m. and getting people to do that? are other parts of the world better than us >> there are other parts of the world that are better on that. >> the issue is exposure and experience kids love science. they love bugs and all of that kind of stuff. >> really? >> you have fun at college and your major's going to be chemical engineer? really you be a chemical -- >> a technician, right. >> it's just hard. they've got to work. they can't go out every night.

>> that's why you have to catch them young. >> i went out. >> not every night. >> a lot of nights >> and still got through -- >> she can do it. >> you must be smart. >> but i think that that's part of the fallacy is this whole idea that people can't be involved >> going to be a communications major, i'm sorry. >> the people that built the space shuttle were technicians, two year degrees the people that do a lot of the technical work, they're not four year degree engineers. what we're talking about is science literacy you need science literacy for your job. >> i know. >> he was an m.i.t. graduate. >> i know. i saw it. >> nowadays you're going to school, the best four years of your life, you're going to some great school chemical engineer, i'm going to be in the library every night. you need to bear down. >> i keep telling you it wasn't that way. >> really. >> and i went to stanford. yeah, i was out on the farm. >> dr. jemison, thank you so much for joining us. jennifer don't forget, guys, it's national ag day. we're going to celebrate that.

let's get you caught up on the stories. claire's stores has filed for bankruptcy protection. trying to get out from a heavy debt load that's been part of the problem. claire's has struck an agreement with key creditors which will let it reduce its debt load by nearly $2 billion and continue to operate. earnings out this morning for children's apparel retailer children's place the company beat expectations by 3% with earnings of $2.52 a share. revenue was short of what the street was expecting separately the company announced a 25% dividend increase. new $250 million share repurchase program, still that stock is down by over 7% boeing has dropped its objection to a deal combining two of its key suppliers. the jet maker had originally opposed the $23 billion acquisition of rockwelcome lins by united technologies on competitive grounds. now boeing says it backs the

deal and an agreement involving boeing's costs. >> definitely buy those three companies. >> and facebook. >> easily. check on the markets at this hour, up 85 on the dow s&p up by 10.5 and nasdaq up 37. we'll be right back. the force is strong on "squawk box. >> it's its energy surrounds us and binds us not this you must feel the force around you. >> puppeteer and the man behind yoda joins joe and becky to discuss his latest mission >> this is just the beginning. >> frank oz is coming up right ren quk x. 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. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices.

like you do sometimes, grandpa? and puffed... well, when you have copd, it can be hard to breathe. it can be hard to get air out, which can make it hard to get air in. so i talked to my doctor. she said... symbicort could help you breathe better, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. symbicort helps provide significant improvement of your lung function. symbicort is for copd, including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol increase the risk of death from asthma problems. symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. you should tell your doctor if you have a heart condition

or high blood pressure before taking it. symbicort could mean a day with better breathing. watch out, piggies! get symbicort free for up to one year. visit saveonsymbicort.com today to learn more. if you can't afford your medication, astrazeneca may be able to help.

later today president trump will welcome saudi crown prince to the white house joining us right now to talk about what we can expect from the visit and the future of u.s./saudi relations is lee mckroft. she's rbc's marketing manager and head of commodity strategy and cnbc contributor thanks for being here. >> thank you for having me. this is a big meeting. our relationship with saudi

arabia has changed pretty drastically. >> the u.s. relationship has been elevated. he took his first foreign visit to saudi arabia. very happy with the direction of the u.s. foreign policy. very happy with the top anti-iran stand washington is taking. >> what can we expect will happen with the talks? >> i think they're looking for the u.s. to pull out of the iranian nuclear agreement. they're very happy with the elevation of pompeo. the trump administration will push the saudis to try to find an exit, soft landing from yemen. there will be questions about qatar as well. more generally i think he's trying to sell the message that saudi arabia is fundamentally transforming and is open for business. >> that was my question, what do we want from them? we want them out of yemen, that's the exit plan >> we want some type of solution to the yemen crisis. thousands of people are there with a humanitarian catastrophe. from the saudi's perspective,

ballistic missiles are fired from yemen and into saudi. they have real security concerns on what's going on in their border. >> he gave the interview where he said if the iranians eventually develop nuclear weapons of course saudi arabia will very quickly look to develop nuclear weapons as well. >> hence the concerns about saudis plans to develop their own nuclear industry they want to build two reactors. u.s. companies want to provide that what is a saudi nuclear program going to look like. >> overnight hearing saudi aramco will go for an ipo only in saudi arabia. the international portion may come later or not at all >> that's not entirely at all. the head of the local saudi stock market was out saying earlier this year that it should be local listing many thought she would not be talking that way unless she had the consent of the crown prince to do so the key goal is to raise money from the aramco sale

the path of least resistance is local listing and asian private placement, that's what they'll do. >> thank you for joining us. >> thank you coming up, a former derivatives trader turned author takes a look at some of tech's most vulnerable systems impacting every aspect of our lives. the co-author of "meltdown" joins us next. "squawk box" will be right back. still to come, his talents are far from a joke. >> when is a door not a door when it's ajar. >> and he certainly isn't an animal he's one of the greatest puppeteers ever. frank oz joins us right here on "squawk box. stick around the man behind grover, animal, fozzie bear and more is straight ahead.

sure, these are investments. but they're not what people really invest in. what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus. because when you invest their money without distraction, hidden agenda or competing interests, something wonderful can happen. they might just get what they want out of life, and maybe even more.

our next guest we have a co-author.

it scared me. >> it's over and over at this point. it's not one huge thing. into these huge things one thing that you covered is it's wall street

>> the organization and they're all connected. it's outside of that they have it >> actually, they spray it with water. i have to talk to those people >> google. >> i think facebook is just there.

>> giving if to cambridge analytica. >> i knew you were selling that. >> yeah, no. >> we're looking for these things

>> it's an example we have a story in the book. a nurse is -- >> it's a mistake. she separates the patient. >> kind of this whole thing. >> it's all of that. flying machines. taxes will be automated. do you know about that self-driving cars. are they going to be able to cross the street >> it's the same question.

>> like that nurse they were able to say. >> if you look at a lot of these companies that are in the self-driving car space, they're not companies that we have a lot of trust with, right gm had their ignition switch problem that we deal with foryears we don't have time to go into uber's challenges, so i think that's one of the things you know, google and waymo, they tend to have a little bit more of an open culture, but i think that that's the thing, even if these cars are safer, they're going to have very strange things happen. >> right get a lot of attention anyway, thanks. >> yeah. >> thanks for being with us. >> thank you guess who's coming up? you may know him as the voice of yoda or fozzie bear or grover or

cookie monster iconic puppeteer frank oz is ting to join us after the break toalk about his new break. "squawk box" and frank oz will be right back. it's all yours. wow! record time. at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living.

honey? you almost done? nope. get ready, because we're helping leading companies see it- and see it through-with digital. at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party.

frank oz. >> welcome. >> we are very impressed to have you here frank oz is yothe voice of yoda. >> pook and -- >> i am so excited to have you here today >> thank you. >> by the way, i've been dying to hear your real voice, too. >> this is not -- i put this on. people buy it as the real voice. i'm very high pitched usually. i have to work down here. >> that's the voice of frank oz. >> yeah, that's my voice >> by the way, frank is here because he recently premiered his documentary "muppet guys talking" bringing together five of the original performers to

create their iconic characters he's not letting anybody pull his strings deciding to make the documentary available online exclusively through his website, not on a major streaming platform that's super interesting you've worked in hollywood through all of these years through the normal channels. why are you deciding to do it this way now >> the muppets always had been rebellious, that's the reason why i shot "muppet guys talking" in the manner i did, i shot it dirty. you see the camera men behind, you see the camera shaking, you see out of focus stuff you see us going to have coffee and following us we wanted that to be anarchic and mirror our sense and getting the documentary out there, we wanted to continue that so as much as i love, you know, big companies that i watch movies on, we wanted to continue that and make it anarchic and also rebellious. so that's why we created our own

site and also we can get more one to one with the people. >> how is it working with distribution on that is it $10 to come on and stream it >> yeah. it's good. it's a whole new world to me victoria, the mom, who was the producer and who thought about -- conceived this and who's my wife -- >> just like you. >> she's fortunately amazing she's leading the launch and she knows a great deal about it from many years of learning it in various groups i'm kind of a guy who gets the credit but i don't do the work, which is what i -- which is my goal. >> all of our goals, right >> yeah. yeah >> yeah. so it is -- it is great. it is very dicey because we've never done this before i'm bank rolling it. it's not a company, it's just me i'll probably lose money. >> i was going to say, is it profit annual? >> i don't care. not yet. i don't care i just want to get out there the

way that we work with jim. it's a different way to work it's a way where it's really collaborative, really this -- a lot of fundamental, how hard you work, caring about each other, no politics. that's all -- i was 19 years old when i joined and that's all i know and victoria saw us work and she said she's never seen anything like that before. i wanted to share that. >> so i'm thinking about how many people on the planet have heard your voice and your work must be hundreds of millions i would think. >> at least above 40, 45. >> million >> no, 40, 45, that's it. >> hundreds of millions, but you can walk anywhere and people don't know you so you're unlike denear row or tom hanks. >> i'm lick da nier row in other ways. >> you're totally anonymous. have you ever messed with people and you start talking like yoda or any of those characters you could do any of them and you are who you are?

>> do you ever go on the street and talk about your job? >> no. no no do your announcer voice? >> no. >> you could mess with -- >> why would i do that i'd be an idiot. i mean -- >> i think he's thinking bill murray. >> i'm asking you to do something for us. >> no. no no he doesn't do voices. >> you won't do any of your things for us? >> no. no >> you're as wise as yoda. >> i'll tell you why those characters mean a great deal to me rtfars tgoing to treat them as pay voo please other people it's like being a 4-year-old who does violin and their parent says, hey, come on, play the violin for me. cfa institute.

cfa charterholders have proven themselves by passing one of the most rigorous exams in the world. demand the best. demand a cfa charterholder. cfa institute. let's measure up.

facebook status under fire lawmakers in washington and abroad pressing the company for answers amid a user data backlash details coming up. "squawk box" newsmaker, commerce secretary wilbur ross talks tariffs ahead of his meeting with the e.u he will join us live. plus, saudi's crown prince former ambassador to saudi arabia robert jordan tells us what's at stake 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 welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen along with becky quick. futures right now are up and all over the place they're up and down now they're up 90 on the dow and the s&p indicated up 11. the naas take indicated up 34. so treasury yields are still under 2.90 on the ten year 2.868. let's get to dom chu he joins us on yesterday's market selloff and potential safe havens for investors. good morning again, dom. >> good morning, joe so we talked about some of those safe havens the last hour, but what we want to focus on this time around is taking a look at some of those other places in the market that may be sentiment indicators for a possible resumption of the rally. if we are seeing futures pointing to a slightly higher open today if you take a look at facebook stock from yesterday, no doubt

it was the driving force behind a lotof the market selloff one of the biggest weighted stocks in the s&p 500 down by 6, 7% that shaved off, like you pointed out, $40 billion in market value equivalent to the likes of a delta airlines, losing delta airlines so that's something to watch the other place to watch is because in technology we did asieh a lot of trading volume tied to the red hot as of late semiconductor industry stocks like nvidia, they have been real big gainers in terms of the overall market move nvidia up slightly a little bit here we did see a two-day move, very bad in terms of the overall chip sector one other place to watch, the smh overall. this is the semiconductor tracking exchange traded fund. that stock up a quarter of a percent. as we talk about technology and whether the driving force behind it was just facebook, semiconductor is going to be one

of the key battle grounds to watch today to see whether or not there is some sense of stability brought back to that particular industry. back over to you guys. >> dom, thank you very much. in the meantime, british political consulting firm cambridge analytica is back on news after they were caught on camera they are the same company that facebook suspended over the weekend accusing it of harvesting facebook's user data without permission michelle caruso-cabrera joins us >> we should point out that they're a company that credits itself with helping donald trump win the presidential election. channel 4 of the united kingdom unveiled several pieces of video which showed the ceo of cambridge analytica, an leks and der knicks, explain some of their methods. >> we have the developer come in, somebody posing as a developer. >> i'm a master of disguise. >> yes they will donate enough money to the candidate to finance his campaign in exchange for the

land we'll have them put it on cameras. >> so on facebook, youtube, something like this? >> it goes around to the candidate's house, lots of history. >> for example, you're saying many are the girls to introduce for the local selloff and you are using the girls for the seeduction they're not local girls. >> just an idea. i'm just saying bring ukrainians in on holiday. you know what i'm saying >> yes very beautiful >> very beautiful. >> works very well >> that's supposed sri lankan businessman is a reporter. cambridge analytica prides itself on giving detailed profiles based on social media

and makes extremely targeted ads yet the methods described in the video, use of women, bribes on tape are far more old-fashioned, traditional. they put out the following statement. assessing the legality and reputational risks associated with new proj secretaries critical for us, and we routinely undertake conversations with perspective clients to tease out any unethical or illegal intentions. the two cage brim analytica e c executives humored these and actively allowed him to disclose his intentions and they left with grave concerns and did not meet with him again. now we mentioned that they worked for the trump campaign. two other pieces of data about the company. one of the big investors is robert mercer. steve bannon, according to reports, sits on the board of the company. once again, this is the company that facebook accuses of having illegally kept or at least violated their standards by keeping lots of data that they

had skapd about hundreds of thousands if not millions of users. >> to me this is a story not so much about cambridge analytica, this is a company we'll see what happens to it, but it sparks a larger concern of what facebook is doing with the user data. what shocked me more than anything, is that facebook would turn over raw data to anyone, whether it be a researcher, political purposes, whether it be for commercial purposes i assumed they were mining my data and doing it in house and somehow maintaining that the idea they went to cambridge analytica, we know that you're not a researcher we want you to delete them, that was eye opening. >> that's why you saw the stock get hit so hard yesterday. there was something about this particular situation beyond all the other ones that we've already talked about that suggested to individuals or to investors, excuse me, that this time was worse and different and might lead to something that curtails their ability to monetize data. >> from regulators deciding to

step in. >> could be regulators, absolutely or some people have suggested also users growing in disgust and not using it nearly as often or deleting their accounts, et cetera i mean, it could come from a number of things, the most immediate would be and obvious and strict would be as you point out regulators. >> to me it was such a strange situation because i'm not even sure facebook knows what they're doing with this information. basically anybody shows up with money and you can walk out with viewer information we don't know what that information was. do we get access to pictures, anything you've ever posted? how does that come up? >> now there are former obama administration officials who have been tweeting in the last 24 hours as well, and it's clear that they had done something similar back during the obama campaign. >> right. >> this was still allowed. >> by the way, they used to brag about that at the time and none of us paid enough attention nkts right. carol davidson who worked with the obama campaign and said facebook was surprised we were automobile to suck out the whole social graph but they didn't

stop us once they realized that's what we were doing. >> that's shocking that's shocking. >> yeah. >> the idea that all of our information is up for grabs to anyone who shows up with a dollar. >> that's the statement that's now become the cliche. if the product is free, then actually you're the product. >> right >> is what this comes down to. >> what are you thinking there >> i just -- you know, i -- i recuse myself in most instances with facebook because i -- you know, i have this antiquated notion of how it works i'm getting up to speed a little bit. i understand eyeballs are very valuable. >> are you on facebook >> no. i'm -- you know, i was talking about it earlier maybe i should get off of my space and go on -- no, i wasn't on it. >> i'm on facebook please follow me >> you're on facebook? >> yes >> you're on it every day? >> i'm on it every day uh-huh. >> you've bought things based on their customized advertising to you. >> bathing suits. >> no, i've never bought anything but i use it to post my

story. >> how have they made money off of you did you see my -- >> she's providing free content. >> i'm providing free content. >> did you see the troublesome comparison >> no, i did not. >> $500 billion that's facebook's market cap, you can buy mcdonald's, coke and pepsi for less than that you can buy walmart and boeing and own both of those for less than what facebook is. you can buy the entire defense group. you can buy goldman sachs and jpmorgan you can buy berkshire hathaway for the same price as facebook with what you know about how that works, is it worth -- is there something crazy about the valuation or not is it worth that much? >> growth in revenue the number of customers. >> okay. >> the incredible market their control of advertising. >> what happens when selling everything you know about me without paying me anything except me being able to use it, what happens when that becomes -- you know, people say you can't have my info anymore >> well then i think that's why the stock -- >> that's what i mean. you have to take that into --

>> i understand. >> sure. the modern social compact that we have lived with since the creation of facebook is probably quite tenuous. >> yeah. >> right now. >> then if it's worth 500 billion -- that's the question not only that, the reason we're talking about it is because the entire stock market got a little shaky based on facebook because of fang and because that's part of the meltup in stock prices to 25,000 part of that is fang >> part of the narrower and narrower breadth -- >> are you here to pose questions? not here for any answers >> no. i'm a reporter >> all right all right. >> i lay it all out and then -- >> muhammad didn't -- >> she reports, you decide. >> mbs is here what do you think? he's a dashing figure. someone last week said he put on a couple of pounds. >> i'm not going to say who. it was said off camera >> okay. >> it stays off camera >> you notice he tugged the -- in front of him as he walked through all the video shots.

maybe he's conscious of that too. >> but there is an air this gentleman is here first place trump went, too, right? >> right >> president trump's going to play host to saudi crown prince later today. let's bring in robert jordan, u.s. ambassador to saudi arabia during the george w. bush administration as i always say, the protagonist. i wish i was robert jordan but i'm not. thanks for joining us. it's good to see you i always say that. never gets old for me. does it get old for you? >> never gets old. whatever you want to call me is fine >> great i don't think we can overstate, you know, where saudi is now sort of in our world view in terms of middle east this is an important ally at this point, especially when you consider the pushing back on iran's intentions in the middle east so this is big >> it's a big deal remember, the saudis are our longest time ally in the middle east

since 1945 so we have to keep a relationship with them, as difficult as it is sometimes. >> yeah. and is that what this is about >> that's a lot of what it's about. >> this week will it be about that or is this a sort of a charm offensive and a meet and greet, et cetera there will be real policy issues discussed? >> i think the d.c. part of the visit is a lot about policy. it's about making sure we're on the same page with iran. obviously the iran nuclear deal is tenuous at this time. i think the saudis would like for us to cancel it. they view iran as the greatest threat to their existence and i think they also need to hear from us our concerns about this war in yemen that is creating tremendous humanitarian catastrophe. and then also the blockade of qatar. qatar is an important u.s. ally as well. we have our largest u.s. ally base in the middle east in qatar. we have to find a way for the

gulf monarchies to work together with qatar so i think that's on the table obviously also in the cancellation of the nuclear deal the saudis have already said recently that if iran has a nuclear weapon then they intend to have one as well. we have to have discussions about that >> do you think it was a total coincidence that the president made the secretary of state move last week and pompeo is much more favorable in saudi eyes and -- i mean, it was the week before he was coming here as well >> i think there may be something to the timing on that. and i also think that pompeo is going to be a cheerleader for canceling the nuclear agreement and the saudis certainly appreciate that. >> so we all know about iran, death to america and all of their adventurism and, you know, in funding things that, you know, would we don't like and

they don't help america, but you remember the hijackers from 9/11 saudi arabia, do you remember opec and the way they controlled the spigots and used it, you know, against us in the past can we just say without any condition -- it's not conditional at all to say they're a great, great ally in the middle east? >> no, i think we have to have our eyes wide open i arrived in saudi arabia as ambassador one month after 9/11. my job was to figure out whether the saudis were friend or foe they didn't have any official government relationship to the attacks of 9/11. they certainly had a toxic environment that in some ways encouraged it. so my task over the next two years was to try to encourage them to liberalize and to reject this toxic world view. i think they've come a long way and this crown prince has a vision for a more tolerant

society. if he's sincere about it, i think we need to encourage that. >> i wonder if they really do, you know, distance themselves from the more radical wahabism, whatever, and whether that's something we can count on with this more liberal, new, youthful leader that probably will be the case, don't you think? >> i think they're going to head in the correct direction it's a matter of how much resolve they have and how much push back from the older part of the society and from the more radical elements in the society. the crown prince has actually silenced a lot of them he's putting them in jail. he has required them to retool, if you will, a lot of their approach to religion and social norms. >> yeah. >> fighting fire with fire though some of the same tactics that they would probably employ so i don't know anyway, ambassador jordan, thank you. appreciate your time this morning. good to see you. >> when we come back, we'll get to our newsmaker of the morning,

commerce secretary wilbur ross joining us live. the last time we spoke to secretary ross he broke some big news about tariff carveouts for canada and mexico. stay tuned you are watching "squawk box" right here on cnbc

at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly.

welcome back, everybody. news crossing the wires. fed ex is expanding to walmart stores nationwide. fedex had 47 locations as part of the pilot program >> liesman's here. he's got results. cnbc survey. >> fed survey. >> fed survey. >> is this you >> nation's top economists i'm doing my own intro steve liesman here our panel, our group of 40 experts hates president trump's tariff ideas

they literally hate it let me just show you this. on how the president handles the economy. 60% approve his handling of the economy. 20% are neutral. 23% disapprove then we ask what about the president's trade policies are they positive or negative for growth 63% say they are negative. that tells you a lot of people who believe in the president's side of the economy do not support his trade policies 81% say a u.s. exit from nafta is negative. 75% are concerned about a trade war. 48% say steel/aluminum tariffs will reduce jobs year all. art hogan says the market has shifted from a fear of a monetary policy misstep, tightening too aggressively, to a trade policy mistake escalating into a trade war with china. the balance of risk for equities has moved from the fed to the white house. and i know you have wilbur ross coming up. look, there's two ways to explain this in my opinion one is that the people who

support the president's economic policies don't see the trade as that negative. the others simply part ways with the president when it comes to they support the tax cuts, the other domestic things. they think that the way that he's going on trade is the wrong way. >> yeah. no one should be surprised. >> no one should be urprised. >> years and years >> and the worst case scenario, that even as supporters talk about before we took office was trade, trade, trade, trade so this is it. now we see it in exactly what the action is and suddenly they exclude canada, our allies, exclude this the bite is not as worse as -- >> do we have to go through all of that, joe >> if you have -- >> what have we gained >> we grained crazy volatility in the markets. >> crazy volatility. you can't attribute it just to that we went up 40%, for god's sake we went up 40% there's going to be volatility and more people would say it had

to do with powell and interest rates and inflation data. >> on the day when the tariffs were announced, plus 2.3 billion on steel companies minus 328 billion everything else that was a pretty good day >> down 400 points in the previous week on two separate days based on what powell said not only that, i mean, if you -- if you live up to a campaign promise and the people that put you in the white house, you have to -- he lives up to those campaign promises. this was one of them >> i would suggest not living up to -- i would suggest not living up to campaign promises that weren't very good promises but i don't want to get in the way of your discussion that you have coming up. >> looks like we're going to have -- >> steve, thank you very much. >> you're welcome. our newsmaker this morning is u.s. secretary of commerce wilbur ross. he's going to be meeting with the european commission for trade today to talk about tariffs on steel and aluminum. mr. secretary, thank you for joining us today. >> thank you for having me on. >> the last time you joined us you broke some news. it was pretty important.

you said that day that you expected we might see some carve outs for some of these tariffs for steel and aluminum certainly enough later that afternoon sarah sanders announced from the white house that we would see car of outs from canada and mexico make sure you pay attention to what secretary ross has to say right now. mr. secretary, you're meeting with the eu today. they have been very adamant that they expect to see some carve outs as well do you think that it is likely that we will see carve outs for the eu when it comes to steel and aluminum as well >> well, we will be having a very extensive discussion that follows up on the discussion i had yesterday with the new german trade minister, mr. outmeier as you know, we issued a joint press release that expressed some cautious optimism that something can be worked out. >> the point of these tariffs, if i understand things correctly, really is to target bad actors like china.

is that true >> well, the point of the tariff is to rehabilitate the steel and aluminum industries because they are essential to our national security as defined in section 232. that's the enabling legislation behind the tariff. the way of getting there is naturally to try to deal with the results of the over capacity, principally in china but also elsewhere we have a total right now of 448 tariff actions, of which about half are on steel. those embrace some 35 countries, all of whom at one time or another have violated the rules. >> we have heard a lot, mr. secretary, about how the president would like to go ahead and start doing bilateral trade

agreements and that the threat will be we want reciprocitrecip. we want reciprocal agreements. that if you have massive tariffs that you're imposing on our goods, we're going to do the same to you. now we've learned that that can't be done unilaterally in the united states, that the president would need congress's support to do that, to go around the wto. how are you advising him to handle that? >> well, the objective of the president is quite clear, quite logical and i frankly think quite inevitable it's ludicrous that a car coming into the u.s. from abroad pays a 2.5% tariff when a car going from america to the eu pays a 10% tariff and a car going to china pays 25% those entities call themselves free traders i don't see how you can be a free trader when you charge a

tariff that's four to ten times what we do on the exact same product. so they have to start matching their rhetoric with their behavior >> wilbur, the critics -- the argument and the arguments that they make are pretty compelling and pretty easy to understand, and we saw evidence of what can happen take, for example, boeing. we do the thing with steel and then suddenly you hear that, you know, perhaps boeing's going to sell fewer jets and the stock price of boeing goes down billions of dollars in a day based on the effects of putting these tariffs on or take the other instance you've got 100,000 jobs in the steel industry that maybe are saved or doing better but suddenly the negative effect, there are 2 million jobs in add-on industries for finish steel are lost or, you know, are hurt by it

how do you -- i mean, it's good to make a point, but is it cutting off our nose despite our face in some instances >> well, first of all, there aren't going to be 2 million jobs lost by the steel and aluminum tariffs that's silly in general the tariffs are going to have an effect less than 1/2 of 1% on most consumer product cars, it's under 1%. soup cans -- soup itself at retail, under 1/2 of 1%. soda, under 1/2 of 1%. beer, under 1/2 of 1%. caterpillar tractors, maybe 1% if these countries are so fragile that a fraction of 1% is going to cause mass layoff, they shouldn't be in business anyway. you'll notice as i've been

putting out all those numbers, not a single one has been contradicted by any consuming industry they talk in generalities and they say, oh, woe is me, the price will go up. >> mr. secretary, it's not about the price going up, it's about the reciprocal actions that our trading partners are threatening to take on us. as you meet with the eu today. if they start specifically targeting blue jeans or kentucky bourbon or soy beans or other issues along those, there are individuals -- look, i'm not saying we have fair trade righ now. it's going to change the dynamics and parameters. there will inevitably be losers on the other side. farmers are up in arms. >> the question is the magnit e magnitude. they're blowing it totally out of proportion. the 3.5 billion of product on which the eu is discussing putting tariffs if they get wto

permission, that amounts to .2 of 1% of our gdp that's assuming that all those product sales went to zero they won't go to zero. so you are talking -- >> won't go to zero, but if you talk to soy bean farmers and this is in comparison to china, the farmers, many of whom voted for president trump, are worried. you're right, it may not be huge as part of our gdp but it will impact the farmers directly. >> i don't buy that at all and i'll tell you why. we are such a huge factor and such a low cost factor in producing agricultural products that the countries like china are not going to stop feeding their people they're going to have to get the products from somewhere else and those products are now being

sold by the other countries, therefore, if china pays a premium in order to divert them from their historical customers, that will open up that market to us so there may be a little temporary blip, but there is not gr grotesque supply of agricultural products worldwide there simply is not. the truth is, china cannot feed itself then neither can many of our other trading partners they are all lient on exports, beyond which countries like brazil has terrible transportation infrastructure problems and they have a hard time getting goods out of their farms and over seas, whereas, we have very good infrastructure for the delivery of trade. no country buys agriculture or anything else from us except that we are the best deal that they can find. >> wilbur, steve just -- you

know, economist. he talks to all of these economists they listen to you why don't 100 of them, every one of them says, no, no, no doesn't listen to any of your arguments about how small, you know, the effects are and what the positive would be. they just universally -- you know, you mentioned it's oppressive what's with the economists that almost, you know, every single one says, no, it's always a bad idea to do something like this >> and almost every single one of them said we couldn't grow at more than 1 point be point 5%, and guess what, the president has got us growing at much more than 1.5% by doubling. >> why do they think everybody else in the world -- everybody else has tariffs, don't they that's another weird thing they have tariffs on our stuff and i guess we're just supposed to just say, oh, yeah, but we're the united states, they're -- you know, i guess they -- you know, they -- we've got so much and they've got so little, it's okay i mean, that's sort of the mentality sometimes. are you going to meet with mb --

>> before we get to that one of those economists is larry kudlow, the incoming -- >> it didn't stop him from coming on. >> no, but have you spoken with him about all of this? obviously there are two sides in the white house. >> larry is a good friend of mine and while we do disagree sometimes on issues, including we've had some disagreements on trade, let's see how things evolve when he gets there. let's see how the deferrals or exemptions come out on the steel and aluminum tariff. let's see what we get in return. and i think what the naysayers should do, judge president trump by his results don't judge president trump by your theory about what might be his results. judge him by his results and judge our trade policy by its results. >> you're going to have conversations with mbs during his visit to the u.s., wilbur.

what will your priorities be to talk about just out of curiosity? >> saudi is not a big problem for us with trade. i'm frankly much more focused on the trade point of view on my meeting later today with commissioner malstrom from the european commission. >> okay. all right. just wanted to ask maybe some tariffs on oil. they send so much oil over here, wilbur, you know >> well, yeah, but remember, too, there are natural reasons of trade deficits and unnatural ones to the degree we can't supply our own oil because in the old days especially we didn't have enough coming out, that's not a blameful cause of an import. what is a blameful cause is when somebody has rigged the market, when someone puts excise taxes to change the way that the

expo exporters -- to the degrees that someone subsidizes production, especially overproduction. those are not inherent in free trade. >> right >> they're not accessible and we're not going to let them continue. >> all right fantastic. wilbur, thanks. >> thank you. >> we'll see you again soon. coming up, a facebook executive speaks out we'll be right back. i think we should do that meeting tomorrow. well wait. what did you think about her? it's definitely a new idea, but there's no business track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers,

speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies see it- and see it through-with digital.

when we return now, facebook

fallout. that's the day on 1.50 you can see what happened yesterday. more details on the facebook controversy in the last half hour of the show take a look at u.s. equity futures which e arup 56 points or so on the dow nasdaq a little better up 24 and the s&p indicated up 8

steve liesman is back with special guest. >> joe, we're joined this morning by sergei bowa, "the new wealth of nations. we don't have a whole lot of time i want to get to your thesis which is really interesting. the idea inequality has come down dramatically in the last several years and it's not government poverty programs, it's education. >> education. >> and that we've had this collapsing of education all around the world and that by itself is responsible for the collapsing of poverty around the world. >> yeah. collapsing of education levels between countries, between individuals and between sexes. so one of the major conclusions of the book is that the women are going to take over the world. in other words, we are now equal

because they have as much education as the men. >> you can see that if you look at enrollment rates by gender in american universities. women will inherit it when it comes to all of these places, they will be the top candidates. your view on what's happening with trade in the united states. how does it look from outside, you're obviously a famed india commentator. how does it look from outside what's happening here when it comes to trade in america? >> much to do about nothing. i don't think it's going to make much difference to u.s. employment it's a political thing it's not an economic thing i'm an economist there's no economist who thinks there's going to affect things. >> will there be a trade war 75% of the panelists in our survey are concerned about a trade war. is that concern real >> no. >> you're asking me -- >> no. that's why we bring you in >> at least you have one guy that -- >> there was one other guy >> one guy that has -- >> it is a political issue and

it will keep on the boil but i don't think it will make much difference because it is so small, that's why the u.s. is concerned, as well as as far as the other countries are concerned. 20, 30 years ago if we had talked about on the program a trade war with exchange rates being manipulated by the developing countries, and politically by china, i would have said yes. >> sergei, in 30 seconds, give us one recommendation for what needs to be done in the future by governments to keep going with this improvement in poverty? >> basic recommendation that comes out of my book is that we need to rethink, reset and rethink the transformation of income to the bottom 20, 30% that is to say as sort of a basic income, negative income tax, to supplement the incomes of those who are going to lose out. >> those are hard core >> surjit, thanks for joining us please come back again

every chapter begins with a cool rock and roll quote which is something that captured me. >> that was not enough for us. >> and trade, welcome here, on india, we didn't get to talk about india and china. there's so much that surjit knows. >> there are some people that think bill gates is so much about health it should be about education because it doesn't matter if you're healthy if your country doesn't have an economy, there's no reason -- got to do education. >> number one recommendation for you to advocate this book because that's what the book is about, education through education you get health. >> right >> chicken and egg chicken and egg argument if you aren't strong enough to get to school to learn. >> if you're healthy and there's no economy. >> which is why you have to do both of them at the same time. >> will's an awesome rate showing literacy rates declining and poverty rates declining. >> also what should be relevant to readers is inflation has been dead for 20 years and will

continue to be dead. >> should we definitely switch from capitalism to socialism to bring people out of poverty? >> no. >> i just wanted you to tell him. >> no. no no he knows >> surjit knows. >> come on back. we need more >> to know you is to love you. >> thank you, surjit thank you, steve. >> take over the world. >> reality has taken over my house. let's get over to one more woman taking over the show now julia boorstin has more on the response julia, good morning. >> good morning to you, becky. facebook has been struggling with the fallout of the data security crisis. the latest, the company's chief information security officer is reportedly planning to leave the company in august. pointing to cracks in the management of the social giant according to the "new york times. this after yesterday facebook shares lost nearly 7% as analysts question the impact of potential regulation and any effect on advertisers and consumers. so here's what happened. "the new york times," the guardian, and u.k.'s channel 4 news alleging that data from 50

million facebook users harvested by an app developer and illegally sold to u.k. based data firm cambridge analytica was not deleted and has been used to target facebook users. cambridge analytica and facebook deny any wrongdoing. >> we are unbelievably outraged and beyond disturbed at the allegations that data was misused or our policies have been violated, and i can assure you from mark all the way through the entire company we're going to pursue this rigorously. >> cambridge analytica saying it bought data from an app developer, gsr, quote, in good faith saying that after they learned gsr had broken data protection information, it deleted all of the facebook information and derivatives in cooperation with facebook. despite the denials, a slew of lawmakers from the eu, u.k. to capitol hill are raising red flags and asking for

investigations facebook is holding a last-minute internal meeting this morning in response to the news to answer employee question about the scandal so, becky, the saga seems to be just beginning. back over to you. >> julia, thank you very much. when we come back, what happens when autonomous cars are confused and not sure what to do on the road. one company has the answers. we'll be right back with that. you know what they say about the early bird...

he gets the best deal on the perfect hotel by using tripadvisor! that's because tripadvisor lets you start your trip on the right foot... by comparing prices from over 200 booking sites to find the right hotel for you at the lowest price. saving you up to 30%! you'll be bathing in savings! tripadvisor. check the latest reviews and lowest prices.

welcome back, everybody. phil lebeau rode along with a company that's taking control of

self-driving cars when those vehicles don't know what to do obviously very timely given the news that we just had yesterday. but phil is with us right now. phil, good morning >> reporter: hi, becky you know, one of the challenges for the development of truly autonomous drive vehicles, a vehicle that might start somewhere, pick you up at your home and then drop you off at a business is knowing what the vehicle should be doing at all times. what happens if it gets confused so we're here at phantom auto in mountain view, california, they believe they have the answer here coming up here is phantom auto test vehicle there is no driver in this vehicle. they're going to drive up, pick me up. let me give you a sense of what this is all about. inside we have a second shot of a remote operator. this is called telepresence. ben, you're our remote operator. he takes control and tells the vehicle what to do here's how it works. we're taking off now in a phantom auto test car. this car is being remote

controlled which means there's nobody in the driver's seat. there is, however, a remote operator. >> welcome, phil my name is ben. i will be your phantom remote operator for this drive. >> reporter: when you're sitting in one of these cars, it feels likeplace, it feels like an autonomous the remote operator sees what the car sees, it is almost like if ben was sitting at a driver's way seat we are at a four-way stop and ben can see traffic here riding in a remote operated vehicle does not feel a whole lot different. what's the appeal? it is the tricky situation when you come up a lot of construction sites that's where phantom auto steps

in ben can stir the vehicle where it needs to go >> you can see ben is controlling where we are going now, phantom autobelieves this is a key to handle those situations a construction site or a driver way that's block and the vehicle does not know where to go. if there is nobody in the vehicle, phantom auto believes phantom auto is the way to be done others are looking into this situation, this may be the key when it comes to autonomous driving vehicles out in the world picking up day in and day out. >> is this a guy that's managing a fleet of 15 or 20 cars >> what does the car do during the meantime >> there are two things.

one is as a passenger, i can see ben. if i see we are coming up on construction and the vehicle starts to slow down, somebody needs to help me out, my vehicle stopped here at the construction site the vehicle is going to communicate with call centers around the world f y if you are in los angeles and you run into a construction site, there is a call center, there is an operator like ben sitting at the cockpit where he can step in within a matter of 15 or 20 seconds >> phil, thank you >> all rhtig, we'll be right back with more "squawk box". well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point.

that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

and i am a senior public safety my namspecialist for pg&e. my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely.

i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california. coming up on cnbc, an exclusive interview, ginn ginni rometty will be on "power lunch. the futures at 64. 26 on the nasdaq we'll be back.

♪ no, please, please, oh! ♪ (shrieks in terror) (heavy breathing and snorting) no, no. the running of the bulldogs? surprising. what's not surprising? how much money aleia saved by switching to geico. fifteen minutes could save you fifteen percent or more. tomorrow, it's a day filled with promise and new beginnings, challenges and opportunities. at ameriprise financial, we can't predict what tomorrow will bring. but our comprehensive approach to financial planning can help make sure you're prepared for what's expected and even what's not. and that kind of financial confidence can help you sleep better at night. with the right financial advisor, life can be brilliant.

today, smart planning is helping the new new york rise higher than ever. as the world leader in unmanned aerial systems, we're attracting the world's best talent to central new york. and turning the airport into a first-class transportation hub. all while growing urban areas into vibrant places to live and work. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov.

in the widely watched drop box is different trading begins on friday on the nasdaq the projected range is 16 to $18

per share. has it been really 18 years? drop box >> didn't you meet him recently? >> i did meet him. we were hugging and we are going to go to dinner. >> birds of a feather. >> he's going to present his side and i will present my side. >> he's got a billion dollars and i don't. >> no. maybe i should listen. >> final check this morning. futures are bounces down dow is indicated by 63 points. s&p 500 is up to 80 points and nasdaq is by 5 points. take a look at facebook share in a moment first, take out the 10-yr note, treasury yielding 2.8% you are going to see it is under pressure once again this morning

down about 1% right now. >> i was going to try to set up dinner with senator gore on wednesday night but i think we'll be snowed in again i don't think we'll be able to get there. >> that does it for us today, make sure you join us tomorrow right now it is "squawk on the street." ♪ good morning, welcome to "squawk on the street," i am wilfred frost with jim cramer. carl and david is off today. >> great to have you >> great to be onset today yesterday the nasdaq was down 1.8% and dow and s&p was down 1.5% it was the worst for six weeks for the s&p an