♪ live from new york where 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 and mike santoli. andrew is off today. we've been watching the u.s. equity futures as the markets started to give back at the end of the day, you'll see that that trend continues this morning with lots of red arrows. dow futures down by 124 points s&p futures off by 16. the nasdaq down by 68. again, this is all on concerns that the fed sounded more hawkish yesterday. i'm not sure why that came as a surprise to the street looking at the economic forecast, it looks like they'll

raise rates at least one more time in 2019 two times in 2019? >> two more in 2019. maybe a third. >> not for 2018. i don't understand wall street's reaction when we had so many economists saying we're looking for four hikes this year >> we are where we were. there is not great resolution. three leaning towards four and more hawkish down the road >> that doesn't surprise me at all. >> this is a market that's difficult to please and easy to rattle in this range the trade stuff, i think it could have been logical for the market to hold that rally yesterday on jay powell. >> nothing came as a surprise to me from anything he said >> the fed's growth outlook is -- >> strong. 2.7% >> but pointed out back when things were bad, i can remember now, they remained me, for four,

five years every year the growth outlook was too high >> started at 3, didn't get there. >> then they see that they get sold the new normal by whom ever and stagflation, listening to larry summers, and now they undershot it theoretically they're undershooting it and finally catching up. i'm glad all they do is react. they finally raise rates when they need to be raised i think i could be -- i don't think you need to be a great economist or a prognosticator to be a fed guy you are finally doing what the market is selling you to do. the growth forecasts are totally wrong. >> that's why the market people like jay powell, he's not an economist. >> maybe he will follow along. now that it says he's more hawkish, and that we'll have an additional rate hike, maybe they'll try bullard and evans to talk us down again

that's what they do. they say something, prepare us, talk us down to lessen the market impact. >> you could really see a bullish story in projections we have more room for the unemployment rate to go down, even more than we thought without having an inflation problem. you could have had a take away that said okay, that's goldilocks for longer. >> that would have made more sense for me given what everybody was anticipating before we got here >> i think powell tried to de-emphasize the projections he was not trying to sell this false precision that this is an intricately designed forecast. he said it's our best long, we'll follow along with what we've been doing >> overnight in asia, look and you will see that the nikkei closed up by about 1%. the hang seng was off by 1 % stocks in china, the shanghai down by a half percentage point. then this morning in the early trading in europe, you'll see that european equities are in

the red across the board dax is off by 1% so is the cac in france. the ftse in london is off by a half percentage point. treasury yields yesterday picked up steam, pushing past 2.9% after everything we heard from the fed. this morning that yield is become below 2.8%. >> among the top stories we'll be hitting on all day is the comments from facebook's ceo mark zuckerberg apologizing for the privacy scandal involving cambridge analytica. this was a major breach of trust. and i'm really sorry that this happened we have a basic responsibility to protect peoples data. if we can't do that, we don't deserve to have the opportunity to serve people. so our responsibility now is to make sure this doesn't happen again. going forward, when we identify apps that are similarly doing sketchy things, we'll make sure

we tell people then, too that's something that looking back on this, i regret we didn't do it at the time. i think we got that wrong. we're committed to getting that right going forward. >> great told us what he's going to do going forward twice, just to make sure we understand he's not talking about going backwards. >> i still don't understand in all of this who can get access to what information. they haven't explained that or described that in detail we know we sign away your right to privacy -- >> do you? >> yeah, basically >> i'm so safe if they get my information, they're doing something wrong. >> are there apps or researchers or commercial interests who have access to all of our photos? is there facial identity program there's a can run through these things i don't understand any of that >> apple may be stealing some things from me, but facebook isn't. >> apple i would like to hear from, too. >> they have been focused on this narrow situation, they say

based on former policies in their minds they're a bit beyond this. it was beyond an ad hoc, oh, this developer is getting stuff. we don't want them to. let's call them to stop. there wasn't a protocol across the board to protect >> i still don't understand who they are selling my information to, who they're allowing on this y yes, you are right, you were wrong not it tell us 2 1/2 years ago that peoples information was taken with outknowledge or consent. >> zuckerberg said he is open to testifying in front of congress, but not sure he's the right one inside the company to provide information about what happened. we'll have much more from the facebook fallout today on "half time report. divya narendra will be on.

he teamed with the winklevosses before facebook exploded yesterday was interesting. there was a ten-point range it closed at 169. it was as low as 163 and as high as 173 before zuckerberg said anything, it rallied from down four to up four then is closed at 169. but today it's down another almost 2%. looking for somewhere to stay. yesterday it got to 163. police in tempe, arizona released a short video late yesterday of the uber self-driving suf that struv than killed that pedestrian this past weekend. a warning that this video may be shocking to some video the dash cam video first shows the exterior view from the vehicle which was in autonomous

mode as it was driving along a dark road. an image of a woman caulking a bicycle appears suddenly in the headlights the video is edited to stop before the actual collision. video also shows the interior of the car with the safety driver behind the wheel who appears to be looking down right before the crash. >> eh. >> the pedestrian ilater died from her injuries. police released few details about the accident other companies are still pushing ahead with autonomous vehicles >> it clears up the question about whether she kale out came nowhere. she was clearly walking across the street if you were fully engaged as a driver, i think you might have swerved or hit the brakes. we had the discussion, human error probably results in a lot

of things that the self-driving would avoid. but there's going to be these cases where you -- he didn't even tap the brakes. it was full speed through the pedestrian >> the idea is you're supposed to have a safety drive their is always paying attention. if you think you're in a self-driving vehicle, people barely pay attention when they're driving cars >> they're on facebook too muany people -- drives me nuts, i look at people -- >> not paying attention when they're driving. >> i look down and take a photo of them, but i'm looking -- no put the phone away when you're -- >> i have come around to the idea that autonomous driving is -- self-driving cars are a good thing >> probably. >> smart cars. driver assist. whatever >> especially as my kids get closer to the age of driving >> in a perfect world your kid is somewhere, at a party at

midnight, it pulls up. they get in, drops them off. a perfect world, that would be fantastic. hopefully that's where we're headed to. we should be ability to given technology >> it may take a while >> the white house says that president trump will announce new tariffs on chinese imports today. this is a move aimed at cushing theft of u.s. technology u.s. trade representative robert lighthizer says the tariffs will be targeting china's high-technology sector and could include restrictions on chinese investments in the united states other sectors like apparel could be singled out lighthizer says the administration aims to minimize the impact of tariffs on u.s. consumers. china threatened to retaliate by hitting u.s. agricultural exports. the countdown to the shut join is on congressional leaders unveiled a

$1.3 trillion spending bill to keep the government funded through september. they only have until midnight tomorrow to avoid that shutdown. m ylan mui has more. >> reporter: republicans and democrats have reached a deal to keep the lights on in washington this 1$1.3 trillion spending bil came out last night and leadership from both parties sounded optimistic about chances of it passing. senator chuck schumer says every bill takes compromise and there was plenty here, but democrats are feeling good touting more money for the epa and subsidies for child care for the poor. house speaker paul ryan framed the agreement as a victory for national security, saying it creates a 21st century fighting force and gives raises to the military and boosts defense spending to the highest level in 15 years however there is dissension within the ranks

the freedom caucus coming out against this bill calling the deal an insult to america's taxpayers as well as the rank and file lawmakers who had no say in the negotiations. still gop leadership appears to have won over president trump. he highlighted the increase in defense spending in this tweet last night he said he had to waste money on democratic giveaways in order to get military pay raises and new equipment. that was the tradeoff. guys, the house has begun the process of bringing the deal to the floor as soon as today, but they'll have to move fast to beat tomorrow's deadline >> thank you very much >> back to the markets joining us is jay jacobs from global x funds welcome what do clients need -- clients. my old job what do viewers need to know about global x you're head of research there. what does that entail? >> we're an etf issuer we have 52 etf with about 10

billion in assets under management we have a suite of five etfs focused on robotics, arrested ficial intelligence, the internet of things and looking at what will be driving economic growth >> you have etfs that someone puts a wide -- a basket of stocks in any of these what does your job as researcher entail do you need to think about markets, whether we go up, down, and what interest rates do >> we do the etf world is different than the mutual fund world. in the etf world, research is focused on what funds do we launch, which areas are there opportunities for growth, where can we help clients achieve investment goals, and then going forward what's happening in the funds what is driving robotics and the artificial intelligence industry or what's driving infrastructure what do you think of the fed and

powell yesterday and is the market expensive is it cheap in light of what he said >> what he says is pretty much expected they'll look at the data whether the market looks expensive or cheap is what you expect going forward we have not seen inflation enter the market yet wage growth at 2.6%, cpi at 1.8 is low if you see inflation ticking up you might say this market looks expensive. at current pe it's not as bad as it was last year we're seeing strong earnings growth that's weighing down valuations. >> if you look at the social media etfs, they're getting killed this week because of facebook facebook makes up a massive weighting, 5%, 6%, 7%. >> you have one of those >> yes >> if investors are hoping to make good on this what would you tell them on a week like this? >> i think investors think of the social media industry too

narrowly the social media industry is global >> but facebook makes up 8% in many of the etfs you may think it's a broad index but you'll get hit hard if facebook is 8% of the social media et if you bought into. >> it's a big holding, but we think a diversified approach makes sense. it's important for the social media companies to think about data protection. that's stating the obvious banks protect money. social media, their currency is data they're not protecting it. they need to think about this as their most valuable asset. and they're easy at letting it in they love to take in data. but they're not protecting it on the way out. >> so the -- i see one thing in your comments that might make a difference long-term the population growth globally and the declining productivity in your view, the current economic strength we're

seeing might not continue indefinitely because of long-term factors? what does that mean? should we have one step out the door five years from now? ten years from now >> what we're seeing now is a strong global economic environment. the reality is that if you look 10, 20 years down the road most economists and most asset managers are worried about long-term returns. equity returns are extremely low, much lower from world war ii to 2008 if you look at trying to build a portfolio for long-term growth holding a market evaluated basket of stocks will give you a lower return than people expected that's bad for pensions and people looking to grow a nest egg, they need to look at high growth potential parts of the any going forward. >> the beard, did you do anything is that just wear it was when you got up does that take -- do you have to maintain that to be perfect like that >> no.

well, it's getting gray already. >> the length. santoli, have you done this? >> i go a week >> then it gets shaggy do you have an instrument that you use yourself to keep it perfectly trimmed like that? >> you have to maintain it >> where did you get it? >> amazon, right >> amazon. so you got it and you trim it. it stays exactly that length you still look neat. you don't look like -- right >> thank you it takes time. like anything. >> all right it gives you -- you have some gray, what are you 30? >> yeah. >> are you 30? >> yeah. already gray in the beard that shows -- >> you're head of research some people would say he's 30, but he has some gray in his beard. >> he's a gray beard >> jay, thank you. will you come back or now you don't know >> i would love to come back thank you. >> santoli, you can do this. i can't. i would look like i forgot to shave. >> i'm getting there, too. trying too hard.

all right. when we come back, purpose-driven profits, that's the subject of a new book by holly branson and craig kielburger on how to find meaning, make a living and change the world they'll join us next

. twitter's chief security officer says he is planning on leaving the company just a couple of days after facebook's chief security officer announced his departure. in a tweet michael coates says he is quitting to start his own company. the decision was announced internally a few weeks ago publisher meredith says that it has cut 200 jobs and plans to lay off another 1,000 workers as it streamlines operations following its purchase of time inc

what was bloomberg thinking about buying fortune? >> they bought business week >> do you change it to bloomberg fortune if you buy it? >> probably. >> consol dade idate operations shares of guess are higher after the clothing retailer reported better than expected results after growth in europe and asia if i was bloomberg, i think i would start a tv channel -- >> is that a good yt >> oh wait >> good idea >> i have never seen it. is that really sorry. socially and ethically conscious consumers are driving a shift in business models across all sectors a new book out explains how corporations and individuals can boost bottom lines while still making a positive impact it's called "we economy. joining us right now on set to

tell us more about purpose driven profits and their new book are two of the book's authors, craig kielburger and holly branson, the daughter of frequent guest here on "squawk box," richard branson. welcome to both of you >> good morning. >> thank you >> how did this idea come about? what was the thought process that got you to the book and focusing on this mission >> so we each come from different sectors. the other author is craig's brother mark, who is from the social enterprise sector each of us have been embedding purpose into our different entities we've been learning a lot from each other, we wanted to share our learnings with the world what "we economy" is about is about a way of business, making sure profit and purpose balance each other as opposed to the more traditional way of doing business, solely about making a profit and maximizing shareholder returns.

by profit we think that businesses should be doing all that they can instead of the least they can get away with in all areas from giving customers good consumer choices, giving back to the local community, making sure they have ethical supply chains, and also doing their bit for the planet this is not just about big business this is about all businesses all businesses do their bit, the world would be a better place. >> craig, part of this is because of the latest generation of people who are out there. employees and consumers, they're more concerned about this. how did this become a big issue on the radar screens >> 75% of millennials say they will take a pay cut to work in a more socially conscious company. people roll their eyes when people self-report that data, but even if you discount that by a ten-fold x you want that huge swath of consumers and that engaged work force >> it's good business to get

along with these sorts of ideas and issues that you're doing this because you're concerned about the bottom line. >> that's why we wrote the book. we share stories in the first part but in the second part we get in the meat of it and say there's very little in your company that's not benefited by infusing purpose the entire spectrum. we read about how to do purpose well we quote oprah, she has a line saying it's easy to do good, it's hard to do it well. >> in terms of philanthropy, how much does the corporate sector usually account for in any given year they're very fillphilanthropic, right? >> they are. >> let's say a pane company is good at what it does instead of using a supply chain that's less profitable, sometimes it helps to go somewhere else to get something. you would like to do it here, have your garden in your backyard, that pc purpose-driven

investing, but let's say it makes you less globally competitive, so that at the end of the day you have less to donate to philanthropy some of your employees make less because you're less profitable and you don't have the -- why isn't generating jobs, satisfying customers and shareholder value, why isn't that enough? >> we talk about you can do both purpose and profit what if you can't? what if it hurts your competitive position globally. >> pac sun added a social purpose on to their clothing line, it now represents 20% of their cloething sign sales >> employees are starting to do this if companies don't follow they won't survive and thrive because people are voting with paychecks, shoutding o inshouti

twitter accounts >> the thing we're facing is a divided society. we've seen it play out on places like twitter and facebook. two sides of an argument kind of play out very -- in a polarizing manner some ceos worry by getting involved with some of these issues, deciding what's good and what's the idea you need to get behind, that could alienate another part of your customers >> these issues are not just about giving money away to charity. this is sorting out your internal policies. what if you have a crazy right wing ceo whose purpose-driven company is anathetical to yours, is that okay >> making sure he's right to his employees, giving employees good benefits in the uk we make sure employees have fully flexible working conditions, unlimited leave. people are not walking out the door but feel trusted. all companies should be doing

that and then making sure you do the right thing for your customers in the uk people are shouting that they want less plastic -- >> we always try to satisfy customers, because you want to be better than the people competing with you i would never run a company based on what people are tweeting you would change your corporate -- change your model based on a tweet >> there's a great model where there was a program called blue planet there was a whale completely surrounded by plastic, eaten up by plastic it died. the customers out there shouted we do not want plastics in our product. one of the supermarkets chains at home, iceland, they have listened to that and taken plastic off of their shelves, they're getting a massive foot follow of people going through their supermarkets it's from listening to what customers want it's not listening to some of the mad people writing and tweeting a few things, it's when

you have mass, mass demand for something, then you have to do that >> public opinion that is en vogue at the moment may not always be that way >> if you think about what you're doing with plastic, that's good in the long-term. >> maybe plastic but -- >> is there an implied critique of those who make tens of billions of dollars, and then say my next phase is to do good. >> no, we hope businesses are successful we want them to be that's why we write the book about purpose an profit. we so often have an antiquated idea that a company's role is handing over a check, but it's infusing it throughout every single way that's how we can build companies not only with purpose but through purpose. >> it seems like it may be a changing target for companies. sheryl sandberg wrote the forward, but now facebook is

dealing with this issue, and zuckerberg is saying we have to do a better job with privacy >> absolutely. the public trust and putting a value on that. this is how we look at how companies can recruit, develop products, stay ahead of markets, opportunities that exist but fundamentally it's the question of how -- i think so many ceos wake up in the morning. they generally want to do good in the world, but how do you ensure you deliver stakeholder returns, get a strong roi and how to do it that's why we wrote the book we sat down, interviewed the ceos and say how do you identify your purpose, infuse it in the hr marketing supply chain and live it to see a positive value. >> thank you guys both for being here the book is called "we economy." appreciate your time >> thank you >> you have to sign one of these for andrew, both of you. andrew will love this.

thank you. to andrew -- great minds whatever so yesterday biden was -- he again said he wanted to kick trump's tuchus, i guess, and said if i had been in high school with trump, i would have kicked his tuchus. i don't know now trump, you know, would he let that just lie? no president trump just tweeting, love him or hate him crazy joe biden is trying to act like a tough guy actually he's weak mentally and physically yet he threatens me for the second time with physical assault. not a good idea to do that to a sitting president. he doesn't know me, but he would go down fast and hard crying all the way. don't threaten people joe. all right. coming up, jay powell kicked off his tenure as fed chair with a rate hike. we'll talk to mark grant about the reaction in interest rates

as we head to break, here's a look at yesterday's s&p 500 winners and losers

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♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square.

welcome back time for the squawk planner. the bank of england will announce its latest rate decision at 8:00 a.m. eastern time we have weekly jobless claims hitting in the united states at 8:30 a.m. eastern time also this morning, at&t and time warner will be in court to defend their proposed merger on the earnings front, darden restaurants reports before the opening bell that comes along with carnival and conagra. after the close, we'll hear from nike, micron and kb home check out u.s. equity futures. the gains that were built up in the market were given away by the closing bell, this morning that pressure continues. s&p futures are off by 14. the nasdaq down by 60. the fed hiked interest rates for the sixth time since december of 2015 first increase under the

leadership of jay powell as chairman joining us to discuss the decision is mark grant, managing director of b. riley fbr the move and post-move xhecommes mark anything you weren't expecting anything of note to talk about that might give us some insight into the future? >> well, we'll elevate the show this morning we'll quote shakespeare. much ado about nothing you might as well have had janet yellen in a different outfit yesterday. the exact same course that was proposed by mr. powell as we had under ms. yellen there's no change at all they're going on with their rate increases. the problem there and the why the equity market is reacting negatively is the rate increases mean higher borrowing costs,

higher mortgage costs. that's beginning to -- people are beginning to get worried that will take a toll on the economy. basically have the government going in one direction, and the fed going in another direction entirel entirely >> is there a method to the madness? >> the message is we'll have higher interest rates, chairman powell says it will be gradual, but no question we'll have higher interest rates and that will slow down the economy this is going full face. if you think about it, it's interesting. you have the government of the united states doing all these tax cuts, the proposing of another tax cut bill, trying to grow the economy the fed is raising interest rates on some kind of theoretical return to normalcy that we haven't had in a decade

since the 2009 debacle so you have the central bank going one way, the government going another way. i can tell you, because i had a number of conversations with some of the largest money managers in the world yesterday, people are starting to get concerned about that >> so we had a 40% move in the market when we got a business friendly administration, less regulation, lower taxes, lower corporate taxes. the market moves 40% now we're in an environment where even though interest rates on a historical level are still low, it's going to cost more the cost of money is going up. have we front-end loaded our market gains for the next couple of years is 25,000 about where we should be on the dow or will this continue >> you have three strong forces in the world one is what the u.s. government is doing, cutting spending,

trying to cut spending, cutting taxes which makes a difference to the price earnings multiples of corporations. you have the fed raising interest rates, which i think is not the right move but that's what they're doing. and the other central banks in the world which are talking about tapering, but they're still buying at the ecb, at the bank of japan, bank of china, buying significantly in their markets. you still have $5 trillion of negative interest rate yielding bonds. that's what i call the big short. the big short for the year is going to be negative yielding bonds. the question, though, in the united states is who will win? is it going to be the fed and raising rates and raising borrowing costs,causing everything to cost more or will be the government cutting tacks, trying to cut spending and you

have these dynamic forces pressing against each other. >> and then all the trade stuff with china and elsewhere that we have to think about too. >> the trade stuff is interesting. on march 2nd i came out in my commentary and i said that he was playing the art of the deal. president trump was playing his playbook we'll put tariffs across the board on steel and aluminum, i said they'll carve out certain countries, certain regions that's what they're in the process of doing president trump starts with a tough position that's the way he does business, which is now the business of the united states. then he gets backed off as real oichl a realism and people make counter arguments about it >> mark grant, thanks. we'll check back with you as we do to see if anything changes in a month or so from now good to see you. >> good to see you a busy morning still to

come at 7:30 a.m., actor matt damon will join us to truck about wor -- talk about world water day he's bringing some help, too then author and professor niall ferguson will join us. plus house ways and means committee chairman kevin brady will be weighing in on tax cuts round two. president trump's tariffs planned for today, all of this ay teding up stun, you're watching "squawk box" on cnbc 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

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united airlines ceo oscar munoz tells phil lebeau that the company is reviewing options for pet transport. i wish i had talked to you, phil he joins us now from chicago maybe they could review options for golf club transport. i did finally get my clubs played 54 holes, that was it

they finally arrived and four holes left the simplest thing, move them from newark to d.c take me, i'll pay you money. you take me and my clubs down to reagan airport no no your clubs are in -- no, they stayed in newark why? go ahead, phil i won't air my own personal grievances i won't even machine shun my miles are useless anymore. take it away >> we'll investigate that another time let's talk about what's going on with united airlines and its policy when it comes to transporting pets, specifically in the cargo of planes they have suspended taking new reservations and are considering future options yesterday oscar munoz talked about this for the first time since this crisis erupted over a week ago we talked to him about whether or not united might drop transporting pets altogether here's what he had to say. >> i think that's what we're undergoing that's why we paused it.

we'll use third party. we are about to name somebody who is an expert in that space we'll assess the different options. we're getting a lot of feedback. a lot of these animals that we move, we move for military families, commercial breeders use this we have to be mindful of customers but do it in a safe and reliable way >> people are saying why even transport animals, given there can be complications and problems is there any thought of let's not do this anymore? >> we'll always review different options. there are certain animals that are more high-risk than others but doing away with something would be the simplest thing to do that's not what united is about. we fly almost three times as many as other people because other airlines have chosen not to do some of these. it's our customers that we want to make sure we take care of as well that's the balance >> do you feel snake bit in a

way? since you took over you said we need to be committed to performance and how we do day in and day out. yet you have these high-profile crisis moments where the company gets a black eye and people say here we go with united again >> yeah. listen, that's why we work so hard every day to make sure those things don't happen. i feel blessed to be a part of this we're taking all the right steps. we're training the people in the right way. and at the end of the day, events like this occur when you're the size that we are. so we want to minimize and stop those things more importantly learn from them and adapt and respond quickly. >> you look at shares of united, we'll show you shares over the last year. some people will sit there and say they've had a terrible year. shouldn't they be down further for the most part united will trade in tandem with the rest of the airline stocks while these high-profile incidents give a terrible reputation or give the company a terrible reputation, it's a

short-term blip, when you look at this as an investor, generally speaking united is trading in line with the other airline stocks albeit their performance does lag american, delta and their main competitors oscar munoz says that's the benchmark, they have to do better relative to american, delta, southwest they need to perform better. that's the primary goal now. >> phil, you're an airline genius what's the scuttlebutt -- don't they still have separate flight attendants they have continental, united, still not together >> no. they're together >> is it done? >> for a long time, joe, you would hear flight crews when you would get on a flight saying from your continental base crew -- >> that's gone. >> >> -- thank you for flying united >> the pay and seniority was all combined somebody told us otherwise last

week >> they had a few things they were working on in terms of integration. that's not at the heart of what's going on here this is a culture of putting these two together, that's what they needed to >> they have successfully done that there's not rumblings -- >> you could >> you could argue that the culture could be better. so in terms of success, you could say, they've got a ways to go >> a lot of times i don't have my luggage, i don't. i don't know whether that's newark or the port authority i don't know thanks >> you bet >> when we come back facebook shareholders feeling the pain the stock is down arshply this week some ept owners may be more exposed to facebook than they realize. realize. we have that story next. ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions,

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welcome back, everybody, the data harvesting scandal put pressure the on facebook scares and the etfs are also feeling a lot of pane, too, joining us is the senior director of mutual fund research at cra research. todd, when people buy into an etf, they think they are finding ways to make sure they don't get overly exposed with any company. with facebook, it finds it is a lot of waiting >> it's the third largest

technology company, so some etfs constructed on a market basis like xlt or vgt from vanguard have a healthy steak but they have off yet by exposure to cisco, other companies, you get diverse indication instead of owning a single security being up and down with that market. >> what is interesting, you won't, necessarily own amazon, which is categorized as discretionary, i'm wondering what is happening in months. it will be a communication services sector with media and some tech stocks it used to be no big deal, what's the impact going to be? >> for example, they're moving to at&t and verizon. so you tend to think of at&t and verizon as a slower, new york stock exchangy -- stotgy

company. you will see a little more growth orientation behind that so netflix is also going to be joining that same sector so some technology and it highlights the importance of looking inside these portfolios. not just looking at the past performance, because any sector etf that did well in the last three years that will be adding netflix will be quite different. that's why we think you have to look under the hood. >> thank you >> thank you. coming up, it's been a rough week for facebook. not all tech stocks are working in the pain. that's straight ahead. u.s. equity futures are worsening, down to 155 on the dow. we'll be right back to talk more about all this.

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>> facebook ceo mark zuckerberg in the silence of that data scandal. >> this was a major breach i'm at the top end >> we'll have more on his comments straight ahead. grading j. powell. >> our current framework for implementing monetary policy is working well >> the fed chairman facing tough questions in his first news conference a look at how wall street is happening this morning it's coming up. >> it's world water day. >> with your support, we can be the generation remembered for te fornding the water crisis once and for all. >> actor, producer, matt damon joins us with water.com, water.org, co-founder gary wieth to discuss the global water crisis the second box of "squawk box" begins right now

>> announcer: live from the beating heart of business, new york this is "squawk box. [ music playing >> good morning, everybody welcome back to "squawk box" here on cnbc we are live from the nasdaq markets set in time's square i'm becky quick. andrew is out this morning joining us is cnbc's commentator mark santoli the markets are continuing the trend we saw at the end of the trading session before we heard from the fed now it looks like the dow futures are down by 145 points is the fed going to be more aggressive than anticipated? what is going to happen with these tariffs expected to be unrolled against the president by china s&p is down. nasdaq is off by 69. facebook ceo mark zuckerberg,

apologizing for the scandal involving cambridge, analytica >> this was a major breach of trust. i'm sorry this happened. we have a basic responsibility to protect people's data if we can't do that, then we don't deserve to have the opportunity to serve people. so our responsibility now is to make sure this doesn't happen again him going forward, when we identify apps that are similarly doing sketchy things we will make sure we tell people, that's definitely something looking back on this, you know, i regret we didn't do it at the time i think we got that wrong. we're committed to getting that right going forward. >> zuckerberg said he is opened to talking to congress involving cambridge analytica, if he's the right one inside the company to provide information about what happened we will have much more facebook fallout in the halftime report you will be hearing from the

original founders of facebook before it became facebook. divya narendra will team up, obviously, os sides of the table. we'll get his reaction from the network that comes today at noon. we want to hear from you are you satisfied with facebook ceo mark zuckerberg's response to the data scandal is this will it change the way you use social media and facebook we'll be airing some of your responses later in the show. police in tempe, arizona, released a short video yesterday of the late uber suv that struck and killed a pedestrian the past weekend. now a warning, this video may be shocking to some viewers the dash-cam video first shows the exterior view in awe on the mus mode and then an image of a woman walking a bisecond him appears suddenly in the

headlights and in the video is ed at this timed to stop before the actual collision how they got that. there is the guy driving it's weird that he's -- anne way, was that a guy? the individual driving and the video also shows the interior, yeah the headrest the interior of the car with the safety driver behind the wheel, appears to be looking down you can see right there. right before the crash the pedestrian was identified as elaine hertzberg and unfortunately she died later from her injuries and police have released few details about the accident uber suspended the testing temporarily as has toyota. but other countries ford and alphabet's waymo is still testing and pushing ahead. >> they're all in arizona because arizona has a hands-off regulatory approach to this they left california. because california would make you write up lots of reports on

everything that happened >> is that why a lot of open road in arizona. >> there is a lot of open road you may see some state legislatures reconsider with something leak this who wants to be the guinea pig where this is getting tested >> tariffs, the white house says president trump will announce chinese imports to aim curbing the theft of u.s. technology, u.s. trade representative robert lighthauser says they would target the high-technology sector and could restrict chinese investments in the united states. other sectors could be singled out. he said they would aim to minimize the impact of tariffs on u.s. consumers. china, meanwhile, is threatening to retaliate by hitting u.s. agricultural exports and most likely they think that will mean soybean at this point. the fed is front and center after yesterday's rate hike. steve leishman joins us with more on. that what they said what j.

powell said and what we heard is what wall street had been anticipating yet you still see the sell-off >> there is a little more it he raised rates by a quarter point as expected to the new range of one-and-a-half to one and three-quarters he signaled more rate hikes as expected and he says he is seeking a balance. >> i think we're trying to be, to take the middle ground there. so, you know, on the one hand, the risk would be that we wait too long then we have to raise rates quickly and that foreshortens the expansion. we don't want to do. that on the other side, if we raise rates too quickly, inflation then really doesn't get sustainably up to 2% >> that will hurt us going forward. >> now, between the decline from before the meeting and this morning, the market could be signaling they didn't quite strike that balance perfectly.

there were some confusion reviews yesterday from wall street take a look. goldman saying the market took the meeting outcome as slightly dovish hsbc said there was a hawkish tilt and barclays said it strikes a middle ground. all three views represented there. he's a hawk, no, he's a dove the meeting forecast from fed officials rising to a strong 2.7% for gtp this you're unemployment declining, unflation unchanged around 2%. but the most significant part that could be spooking equities. the fed raising the outlook for the funds rate not this year. but up to 2.9 next year. a strong 3.4% in 2020. that's above the long rate they think policy two years from now will need to be restrictive as is slowing the economy. powell downplayed the significance of that,

emphasizing the uncertainty, saying the only fed decision wednesday was to raise rates the rest were just forecast. guys >> one day at a time that's all any of us can live, steve. >> i like the way you said that, actually, it was certainly bernaiche and yellen implied that he shut down all these forecasts. we made one decision today, that was to raise rates >> steve, i was reminded earlier how wrong the fed used to be in overshooting economic growth, five, six, seven years ago remember, they were always wrong. >> to go back that far, last year or two years ago. >> because they were too high. recent -- now, you know, so when they were hoping it would be high, they were missing it now, they're forecasting it will be low have they like flipped and now they're going to always be underestimateing -- if you look at an organization that's always behind on sort of the consensus or just the knee-jerk you know

rational or thinking, it seems like it's the fed. are they going to be wrong -- now they're going to overshoot -- if they consistently overshoot on the high side, why aren't they doing it anymore when it actually is getting better >> well, this 6.7 forecast -- >> it's lower than yours, lower than your forecast >> lower than mine it's the highest they've had since 2014 i tell you what went through my brain this morning looking at the forecast, i wondered if a note went out from the chairman. i have no evidence of this in which powell said, hey, exactly what you were saying, we have been getting this wrong for a long time. let's sharpen our pencils and be more realisting with these forecasts. i don't know that happened look at the changes a .3 in the change in the outlook for next year which by the way is much more realistic there's the funds rate, let's sharpen our pencil and not be so embarrassing anymore are you right, as the little

embarrassing i will say this, the numbers you see there are the median forecast of 15 people or 17 people and they don't get together to end up at an end point. that's just what happens when you put all that in. powell is also right saying, hay, it's a forecast it's not policy. >> all right just it's you know when we're in a slow economy where we're going to disappoint, they're too high. when we might be in a faster economy where you know, it's just they miss it in the most obviously ways >> but let me ask you this do you i know what you think about this i disagree, i think with you on this the thing that matters is the policy rate. the other stuff is kind of how you get to the policy rate i don't think they've had the pales rate terribly wrong even though they're forecast wrong. >> everyone e everybody loves a party, steve the hard part is taking the punch bowl away

not that it's not hard to stay easy no, i know >> look all around the world, look at the other central banks out there. >> thank the internet for that, not the fed. >> whatever the reason, relative to the economy, it strikes me the policy right now you can have all these comments, people say they've created the bubbles and the stock market levels i don't think relative to what the porkt would otherwise create or the under lying growth rate if the policy rate is terribly wrong here. >> thanks, steve joining us is kathy jones key income strategist at the schwab financial research and from riemd e raymond james, i'll get to you in a weekend is reading the notes. jeff, it's like, things are good stocks are going up.

what could go wrong? nothing. that's sort of in a nut shell what i saw in notes. have i got that right? >> yeah, you got that right. i think we're still in a second ju lar mark. i did talk to your producer yesterday afternoon after the fed announced it with the dow up 250 points said typically oust an announcement like that, the first prove is a wrong-way move. >> that's true you think --py question earlier was so we fought a 40% move once we got an administration that was more business friendly in terms of regulations and tax policy and everything else the market like moved quickly, quicker than any 81 thought up to 25,000, is that it or are they going to keep going or do we get everything that we already deserve for being in a better environment >> well, the mark had a heart

attack in february we were actually on your show during month of january saying the first point of downsize vulnerability is coming up in february it's like a pullback a heart attack patient doesn't get up off the gurney and run the 100 yard dash. you have to convalesce i think it's going substantially higher over the next seven or nine years. >> i look at what you are worried about. like everyone that does this for a living, trade tariffs. you also the three and a quarter on a ten year this year. both of those things i think it will be hard to go up? >> yeah. i think the markets got to focus on this withdrawal of the fed. nobody talks about the balance sheet yesterday. but the easy money is going. we're sort of experiencing withdraw symptoms here from the central banks pulling back we will probably have europe being less accommodative later this year. so i think the marks are struggling with.

that it's likely, particularly if we get tariffs, import prices can be the move up >> that fuels more cpi inflation. >> that gives the fed more scope to raise rates. >> we haven't talked about that, how much is it over the balance sheet getting dried up that question its to a rate increase >> i look at it the term premium the risk premium from being a longer-term bond has been suppressed by qe as that qe goes away, that risk premium should come back that's probably worth another 25 to 50 basis points give or take. >> jeff. the market, the stockmarket seems it's trying to come to terms in with world. you got to relatively expensive led by a very good growth in technology, now in search of leadership in a world where perhaps rates will be higher you have tradeoffs, right? it's not always about low inflation and decent growth? >> that's right.

i would also note when the leading growth stocks finally give up, which is what's happened with the bank stocks, you usually are closer to the tail end of the pullback or correction than the beginning of a whole new leg to the down side so i think after a few more session, i think the market will find its legs and we will trade up to new all time highs >> you think the plots are exactly right where they are right now? >> you know i think it is what it is. you got some dots that are way up there i don't know who that is but you've got such a wide dispersion even though we focus on the median, a huge dispersion. but i do think the market may have been underestimateing where the fed was going in this cycle. now the important thing is the market is coming up to where the fed has been rather than the fed coming down to where the market has been they should do like olympic sikorsky, you throw out the highest and the lowest

>> we had a fed looking knfor excuses, now it's taking it to go higher. >> i took it as hawkish. normalization is what they want to get back to we know it's higher than where we are today. >> i think the, i like the one day at a time. don't ask me about -- because you know anybody especially as you get a little bit older you start doing the math for how long people live and where you are,s a a posed to when you were 30 right. >> but people that are 80 or 85, they can only live one day at a time there is no guarantees people that are 30. >> will live longer. >> not necessarily you can only live one day at a time can you only raise rates one at a time i've learned from this kathy. thank you. do you realize all this? >> no, i didn't. thank you so much. >> jeff, did i help you today?

because we're both, you know, now we're realizing we have our more tale, aren't we, jeff when we move forward >> you help me every day that's what i'd leak to hear when can you come back >> the producer will call you. thanks, jeff. when we come back, facebook woes dragging much of the tech sector down just over the last few days but that doesn't mean there is not opportunity to buy some names in the sector. we will hear what's working in technology after the brake right here on "squawk box," it is world water day actor matt damon, gary white, both of water.org, bank of america vice chairman anne finucane and miguel pa patricio will be talking about the global economy and much more. still i stick around, "squawk box" will be right back.

patricio fin can ucan canean ne

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joining us now is dan morgan, he is vice president and senior portfolio manager at cenovus trust. i heard one people saying there are great fames in technology, they're all the ones not related to consumers him you found consumer-related techs you think amazon is the top pick out there? >> i like amazon not just on the consumer side, in amazon web service. as you know, that's their infrastructures of service, you know, cloud play it's a very successful company in terms of a bigger company they generate about 82% of profit for amazon as a hole. the overall markets are growing a at rate of 45% so they're kind of head and shoulders right now over microsoft with azure and some of the other players out there, google, gcp, cloud platforms so overall, even though we

amazon as a retail player. we think of entertainm, the reason we like the stock is because there is a dominant player in the cloud space. >> that has tremendous growth potential. >> would it be fair to say that it holds >> i tend to gore a little more towards the enterprise, you know, some of the other stocks that i wanted to talk about were applied materials at microsoft those are also companies that are very enterprise focused. probably gore more towards that than let's say drop box which i believe is going public today. snap, some of these other companies are driven more by the consumers. more focussed a little bit if terms of the corporate i.t. side. >> dan, i do see, still have a holding in facebook. i wonder how you think about the stock right now. obviously, it was kind of over loved and over owned maybe at some point, it's been pulling

back sharply it's pretty close to i guess some recent lows from last year. i do wonder though on a forward pe basis it's as cheap as it's ever been right now. i wonder if you think those holdings will hold up or downgrading what the company will own to rectify things >> that's a million dollar question, consensus is 7.25 a share. as you mentioned that's about an 18 multiple on ford earnings very low from a historic am perspective. for me, we can get into all the debate in terms of did they violate and this and that, but it will come down to two things in terms of are we going to see a slowdown in terms of user growth, which has been very strong, 2 billion plus and are we going to sew a change-up in engagements. then you look at well, are these advertisers who have been committing money mostly to'ing gol and facebook, where they may be start moving funds over to

amazon and we just don't know what that reaction is going to be at this point we know they're going to be in the limelight as you guys have been talking about, congressionally speaking, everything else. is that 7.25 going to hold we will have to see. at this point there has been no changes. we have to see if those things change and then how to advertisers react and the whole pre face changes in terms of facebook it's a million dollar question we hold shares we own a very low cost basis we will continue to hold and let it play out. >> you are not buying. you are hold something. >> we will hold on that becky, as you know, every day on cnbc and on everywhere you go, it's everywhere, negative articles, negative articles, you have congressmen who want to haul them in front of committees. it will be really hard for facebook to sweat that off initially. but we'll hold it and see what happens. >> dan, thank you very much. it's great to see you. >> thank you, becky.

coming up a special half hour on "squawk box," actor matt damon, water.org, co-founder gary white. bank of america, vice chair and anheuser-busch imbev, miguel patricio will join us on world water day. we will talk about the world global supply the economy, president trump and much, much more stay tuned starting at 7:30 a.m. eastern too many you're gonna do great! thanks, dad! break a leg! aflac?! not that kind of break. oooh! that had to hurt. aflac?! not that kind of hurt. yeah, aflac paid us cash in just one day to help with our car payments and mortgage. aflac! perfect timing!

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welcome back, everybody, it is world water day we have some very special guests joining us on set for the next 30 minutes water.org co-founders, gary white and actor matt damon are here in the house with us. also, bank of america's advice with partnership of water.org and the current global marshall. we have the imbev chief marks officer, how they are trying to make a difference. a special half hour of "squawk box" with matt damon, many more

right now. >> live from new york, this is "squawk box. >> good morning, welcome back to "squawk box," here on cnbc. we have a couple stories before we get to ourb global water owe o'guess we have have to the this restaurant shares are falling in pre market trading this is the parent of olive garden it's 7 cents above estimates revenue were below expectations. the labor department will release its weekly report on initial jobless claims at 8:30 eastern time they expect 225,000 new claims for the week ending that saturday >> that will be down by thousands from the prior weekend. it's close to what is it like a 50-year low on jobless claims?

something leak that? >> yes >> the economy is 70%. >> if andrew comes back, you move over, can you still be here >> if i'm invited. >> you see how often i come to you? darren's cred from working there. dow component nike is set to release earnings this afternoon. the retail and dow component i can't believe that >> it's your way of dock it fast >> it has revenue 9 billion. nikkei shares are up today is world water day we are taking a look at the crisis and the lack of access with our special guests this morning. matt damon and gary white are the co-founders and finucane is the vice chair we have to start from scratch.

people don't know the problems they don't know. you think about other things, five, ten years from now you can have an effect you can have an effect tomorrow. so we saw there was a country that was running out of water. these are people that spend all day long, mostly women spend all day long trying to get water because they don't have it wherever they live there is a way of helping these people that's what you do >> it is world water day, it's an opportunity to recognize what's happening, it's a crisis around the world, more than 800 million lack access to water and more than 2 billion lack access to transportation. what this means, every day, women and girls spend millions, in fact, today, 200 million hours will be spent by women and girls walking to check water zplu know how heavy water is they may have to walk four hours

or not way down sheer water without water, you can't live. you got to drink it. clean things with it instead of going to school or instead of reading or instead of playing with their kids, instead of all that they're walking four hours to lug back a bunch of water. >> not to mention the health issues with that so you have a million people dying a year, completely needlessly, they lack access to clean water. so the outcomes you can expect for somebody's life, in terms of their health also the potential it robs people of. right? if you are a little girl that now can't go to school, you are spending your entire day scavengeing for water, what outcome are you running your your life? >> then you come in. it's fascinating, $200 bucks they can borrow and pay it off over time.

>> exactly right >> the other side of this the you are ban side is maybe you are not walking so many hours. you are standing in lean people are paying up to 25% of their income just to get dubious quality water they can bring back to their home you have all these copious costs people are paying because of this failed system it's hundreds of billions a year that go into health costs associated with this and purchasing water in the slums. so what we're doing is creating an opportunity to invest in this so we can turn that into small loans for people so that they can then reduce the costs they spend on water >> they pay it back. you give water to someone else >> exactly he had this insight from years ago from spending his adult life in communities realizing people were paying for water day to day, they didn't have money to front the municipalities is piping water underneath their feet they're just fought connected to it

so the middle class is paying 15 times levels for water than the poorest of the poor are. so if you can front them the money for the connection to the system that exists you are buying their time back they can work at a job they will get all those hours back, all that income back that they're wasting, that the middle class wouldn't have to pay, it comes back into that household so it was this kind of idea that he had to apply the concepts of microfinance to the water space. it was a brilliant idea. these loans pay back >> whatever it is they're going to make a living they can afford this over time to pay it off. take a year or two >> a couple years. >> how does the bank of america fall into this >> we have been working a long time, you have to be able to scale this it reers innovative financing. so we came together with him to develop a water equity fund with

the dwlad if we could raise $50 million and you are making good progress on that we could stail scale this so that you could get to people in a much bigger mass. i think you are seeing more of this anyway, more in terms of trying to deal two raising capital, enno saitive financing, on a bigger scale for much more social impact kind of opportunities. beyond water with global warming and with well and ed categories. kind of on the general u.n. sustainability bills but this has been a real first attempt at trying to create a fund that will have a nice return 30r 3.5%. it's better than municipal, treasuries >> so the $50 million. how is that going to be deployed is it in conjunction with other organizations out there? how do you get to the household level in >> what we do, we take those

funds and invest in enterprises that serve the poor in terms of water and sanitation needs, sometimes microfinance institutions turn it into small loans or businesses that are providing affordable toilets that are appropriate for those funds. so we take that and employ that to those types of enterprises. then that allows us to then get a return to then go back to investors leak i think bank of america, the school foundation the hilton foundation, they're all investors in this fund and we'll help about 3.6 million people get help to the millions that comes into the fund 100,000 people get access to water or sanitation. as they had mentioned, each year they get a distribution. at the end of that they get their principle back it's a truly sustainable and scalable way to impact investors all way down to four women at

the household level so they can solve this problem >> and individual investors? >> yes, they can our first fund. we have already done this we have funds 11 million already out there working. we have several high foundations involved in that this is kind of like a dream, in fact, our first conversation, we will go do this fund we did it. 11 million is out there. we've paid distributions a lot of people have gotten water. >> we're trying to bring in different financing. so you are going from development banks, non-profits ngos, eventually private equity asset managers so you are stacking something and it will derisk it and also broaden the opportunity. >> yeah, that's key to it. getting that germany tee in there. >> that 10% germany tee we put in that backs all the investors and the return. >> >> is it tough to get investors

as we look at interest rates starting to rise the feds moving up >> not so far. we have to see we have a couple bumps happening later this year. no, we are finding that if we can bring in this away ray of financing, not just commercial banks or fill anthropic people can you do what gary and matt are doing. it's unique. this water equity fund is as good as it gets, it's single purpose. they have a program that already works and they have a return that's established >> so just trying to understand. there is villages that haven't even been touched by you guys yet? >> oh, billions and billions you go in. you individually start hooking people up. where is the line? is there a line somewhere nearby

this is the last half mile, it satisfies their need for clean water and sanitation water or what are you doing both toilets and drinking water >> yeah. so it's basically allowing people to get the solution they want >> it might be different >> it is different depending on their living situation >> it's not just attaching something to the main line >> we will later about a trip to uganda, where people are pecking water for storage thanks >> what about screens? >> they need screens for the insects. >> it's a great solution >> the types of the ones they want to use and development agencies want to give them that's what we are talking about. >> that's a key difference the whole concept is bottom up instead of top down.

now the classic paternalism. here's the system you want it's actually them getting the ask him that they want >> we've reached 10 million people. >> we got 800 million. >> listen. >> i know 10 welis 10 million. >> you have 790 left >> in 2012, we hit our first million, now we're hitting a million and a quarter. when we were in india and came up with this idea of water equity, it was because every single mfi we were meeting with, identified single capital? what is in that? >> microfinance. all our partners we were saying, what itself the big head winds for you they all said, the demand is there we need more money, it was in partnering with people like anne where they were helpful and talking about tronches and different ways to oorganize and

scale i scale it so you can get more capital and get it out there working. we proved the idea it worked. >> you are leaving thank you and these guys will be around and bank of america, brian, everything else. >> we effect appreciate it >> you are my bank, too, you must know that >> yes, i know >> assets under management >> formidable. >> coming up, beer maker stella artois the ceo of anheuser-busch imbev which owns stella, i'm not an actor, i can't do it have you ever been in? >> cat cat on a hot ten roof?" >> i believe it if you do it >> streaker name is up >> my oldest daughter i named stella there were many times in my life

i said, hey, stella! >> like brando >> see i felt it when you did it i believed it. >> nobody did it like brando >> here are the futureat ts his hour we'll be right back.

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welcome back, everybody, buy a lady a drink is the campaign for water crisis awareness from water.org and stella artois, it's one of the beer brands from the world's largest brewer matt damon and gary white are the co-founders, they are still with us. miguel patricio, the chief intellimarker. thanks for being with us this morning. >> my pleasure >> a lot of people probably saw the ads in the super bowl. what are your goals? >> well, sustainability is acquiring our business beer is a very natural product barley hops and water. water for us is essential and so we were looking for a partnership with a group that

have problem with water around the world and we found these guys that have big deals are we are a company of big dreams as well and towing we have been towing already for four years. already have impacted 1.5 million consumers or people with access to water. we have goals. 2020 to achieve 3.5 million people. >> think about it. wee have more people have access to a cell phone than to a toil it's probably easier for people to getting access to a bought hf beer-to-than to clean water. is is that what you are doing, teaming up >> that's absolutely, too. we have operations in 50 countries, i was with gary in uganda so we have beer in a lot of places we have accessed a lot of places that's the beauty of partnering with them. because we can make a big

impact. >> what happened in uganda you mentioned you all went gary mentioned that, too >> in uganda, the numbers are abstracting. what we have been talking about. when you get down to a personal level. how does this impact one household. what we found there was an incredible story we know what happens when people don't have water how it robs their futures. but we met a woman there, miguel knows the story very well. he got it out to all his staff she took out a water credit loan and has a pump to store water in now. she took that opportunity and started selling water to her neighbors. right. she wanted to send her grandkids to school. that was the impetus behind all this she went from doing that to leak growing vegetables him she would hook it up to some picks she purchased to raise then she used the water to start making bricks and selling those and then she built some small rooms where people can come and

so she used water as a way to really develop her own lives and get her grandkids into school. mikel you experienced that >> i went to uganda thinking we were needing those women that had to walk three hours a day or ride a bicycle four hours a day to have access to water. i came back learning that actually water is a currency for this kind of countries, you know, water becomes a currency we transformed the lives of these people like mama florence. >> you got over 4 million beer brands, why has stella become the right brand for a campaign leak this? >> well, stella is a brand that stands for sophistication. it's a very premium brand. we wanted to have a brand that not only stands for

sophistication but has many deaths that was the beginning of the journey, it is beautiful >> how do you immediate your goal by 2020 of reaching all these people what has to happen >> we sell the chalices. the more that we sell the more people we can impact so we have a target to sell beer we have a target to sell chalices >> meg el, i want to thank you for joining us we appreciate it >> thank you my pleasure. >> when we come back we will wrap up our last hour. congressman kevin brady in the next hour will be joining us to talk about phase 2 of fax reform atnd tth ahe tariffs expected from the president today and the budget "squawk box" will be right back. stick around.

>> >> is it too late for me probably let's get some final thoughts from our special guests this morning. i'm matt gary and damon white, water doerg and co-founders. tell me, what is it? gary the ramp? >> i think trying to get people aware of the issue is half the problem. matt and i talk about this a lot. how do you get people engaged? the stella artois, it gives an onramp we had a flood of people to our website right after that because there is an easy thing to do. they can buy a chalice

so we want to raise awareness and drive action we will be driving people to come on and make a loan. million dollar investors, we'll have the opportunity for them to get water. >> do i get to peck the person you pair me up >> it will all be cool because of the transaction costs to communicate the one to one we will pull it together and report back on the impact. >> i was going to say, that's one of the exciting things for us it is personal you have these stories, you immediate these people actually the less personal it becomes. gary and i have talked about this, the better we are doing. the numbers as we start to scale and things speed up and suddenly it's a million people a quarter. you know it's a million stories, you know the impact that you have >> you don't have diddly to do

until august >> you think it's too late tore me >> probably. >> i know people you will not be mailing in in from australia >> i knew i was moving to australia for political reasons. >> are you tough i seen you you are. >> i have great stunt guys >> is that the bar >> on the i'den scale. thank you. >> we'll be right back. and the wolf huffed and puffed...

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>> zuckerberg apologizes so this was a major breach of trust and i'm really unhappy this happened. >> shares of the social media company taking another hit this morning. two big stories we are following out of washington. a tough talk on china and a looming government shutdown. we will talk about congressmen ways and means chair kevin brady, that is straight ahead. plus the futures under pressure following the fed hike on j. powell's watch a rundown coming up as the final hour of "squawk box" begins right now.

[ music playing [ music playing >> live from the most powerful city in the world, new york. this is "squawk box. [ music playing >> good morning, welcome back to "squawk box" here at cnbc live from the max market site in time's square. i'm joe kernon along with becky quick and mike santoli andrew is off for the day. let's get a check. >> our top story today, facebook ceo and co-founder, mark zuckerberg, breaking his silence

about the data breach scandal. >> i actually am not sure we shouldn't be regulated you know, i think in general, technology is an increasingly important trend in the world and i actually think the question is more what is the right regulation rather than yes or no should it be regulated >> why should it be regulated? >> there are some big intlektual debates. on the bake side, you know, there were things like ads transparency regulation i would love to see. when you look at advertising on tv and print, it's not clear why there should be less on the internet. >> check out shares of facebook down 1.5% after days of pretty steep pain above $182 to $166 this morning neil ferguson is with the hoover institution. he's a senior fellow and also

the author of the book the square and the tower, networks in tower thanks for being here. >> it's good to be with you. >> you came out when the book came out this is the perfect time for you to have a book digging through all of these issues. what did you think, first of all, of zuckerberg's reaction to what's happened and the commends he's made where he's apologized? >> well, i think it's fairly standards for facebook to say, we've made a mistake in the past we have already fixed it actually the clip you just showed is the most interesting thing he's said, this acknowledgement there may need to be regulation and they're scarcely regulated at all at the moment that's a huge deal one of the arguments i made we're in a completely strange new world, where our public sphere is dominated by two companies effectively. 80% of news is now consumed by people because they have been

directed to it by facebook or google these are amazing companies. they're scarcely regulated at all. >> i think i'm a little skeptical he believes. that i think you have to say, yes, if i'm the person i will go testify. by the way, if you think there should be more trance parent circumstance then do it. why haven't you done it? i have no idea what you do with my data or continue to do at this point i don't know if you take my photos different them away to different places i have no idea what you are doing with that. facebook could be the one that sets the standards >> number one, users need to be skeptical. i detect among the growing generation we are slightly foolish, we gave away far too much about ourselves and our friends, they basically sold it to the highest bidder. if that was the russian

government meddling in the election i don't think it's sufficient. i think the key issue here is what kind of regulation are we talking about? because there are three different models you can brake these up many on the left favor i don't personally buy that. these are actual monopolies. number two, are these utilities or media companies that should be regulated the way media companies are. >> that was zuckerberg's plan. but a fair one >> the ftc is coming to siliconsale. a third one will increase their liability for legal action they have enormous exemptions going back to the 1990s, under article 230 of the telecommunicationsing a, which basically said they were not liable for any content is there this goes back to compuserve they said, we are a bulletin

board, not a publisher >> there is an argument, regular companies leak the show we're on are liable for the content it appears what we say later, but if it appears on facebook or that matter youtube, it's not a problem author those companies that's an anomaly that doesn't make much sense. the question is, which kind of regulation, what itself the model? remember the rest of the world has kind of solved this problem. in china, it's clear, they are intort nant subordinate porte. in europe, it's clear, they will tax, fine, make it difficult for tech companies we are strange where silicon valley is completely unambiguous with the government. notice another thing zuckerberg said which is interesting, the mid-terms are approaching, it's

november pretty soon we have see how much has really changed. how far are candidates going to be able to use facebook advertising the way steve bannon was able to use on behalf of donald trump in 2016 >> the other question i have the answer to. >> i wouldn't ask you buy, sell, hold, on a stock obviously obviously you have written on money, an amazing as a historian that knows about that so i made the point earlier this week if you were to add up what comcast is worth. add up what disney is worth and then throw in net flicks, the disrupter. those three companies have a lower value in the stockmarket now than facebook. now, that always going to be, does that make sense is it always going to be that way? they're so protected in what they do in terms of garnering advertising dollars that's not at risk? does that make sense >> i think the lesson of

economici his tier, companies ae vulnerable, one a shift is this sent imt, users say we don't trust you army and number three a change in the regulatory environment. a lot of people say buying opportunity, facebook just got cheaper. i know very sophisticated investors who have been buying if you take a slightly longer-term view and say where is facebook going to be over a year from now arc five-year time it's hard to see it's business model is going to survive intact the core of the business modem is essentially selling the user's data endirectly, making it indirectly to advertisers, any advertisers. zuckerberg has some great rhetoric about what he's doing, she building a global commune to the make the world a better place, you know what, his top priority is not protecting the security. >> in the wild west, the out laws were great for a long time before all of a sudden sherrives started coming in.

>> as a corporate strategy his approach has been to buy the possible disruptor instagram and what's app i wonder if that will be some kind of a line is drawn, you say, this is a threat. we want to buy the next up and coming >> these a very vel informed early investor in facebook says there should be no more acquisitions for a new framework, in other words, we have to stop facebook by anything that looks like might be a competitor or coping it by snap so there is a bunch of ways in which the business model will be challenged i certainly don't see a future where they can sell friends content without restriction to the highest bidder >> that must change, not just because it's a violation of privacy. it has major political - >> zuckerberg's claims, not facebook we've already changed our

policies and this doesn't happen anymore. >> that to you isn't enough? >> in the en, the central question that seems to me worth discussing here, is it going to be used again this year the way it was in 2016 not only here, but in the uk and if it is, what does that imply for our democracy? those are the questions the ftc needs to address advertising which is political will be flagged up i think we need to look much more deeply into the role face boong and google let's not forget, youtube is important into this. >> i wonder if apple plays into this >> i think this is a big shift not only in public sentiment i think we will see shift in washington i was in washington the other day and last week. can you see it's slowly sinking in with legislators. we have a problem.

that's why going back to your question about the future of facebook, it is not going to be the golden age of social media anymore. i think those days are coming to an end >> we had matt damon on. he's a big star, now you are here >> i'm not quite in the statement as matt damon. >> someone you are close to is, does your wife ever travel with you? you are in here all time could you ever see - >> i think it's much more interesting than me. >> that's what i said. you never bring her. >> that's because we look out for our two maul boys. >> it will never happen. >> liyour life is more interestn than he is >> i'll make sure. >> if it ever happens, i'd love to have her on, too. >> i will pass that on. >> thank you >> excellent >> by the way, folks, we'd like to hear from you as well are you staffed with ceo mark zucker burg's data scandal will it change the way youuse

facebook tweet us we will air some of your responses later in the show. when we return, happy tax anniversary. today marks three months since the passage of the trump tax plan what will possible phase 2 look leak house ways an means chairman kevin brady about that and the president's plan to crack down on china, central government shutdown, all thatigft rht aer the brake. stay tuned you are watching "squawk box" on cnbc is the monolithic view of emerging markets obsolete? at pgim, we see alpa in the trends, driving specific sectors of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era draws youthful populations to mobile banking and e-commerce. trade and travel surge between emerging markets. everyday our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management

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welcome back to "squawk box. the futures right now indicated down about 160 or so, 150 now on the dow. the s&p is also weaker and the nasdaq on a percentage basis probably weaker than on a relative basis down almost 60. social media again i think the white house says president trump will announce new tariffs on chinese imports today it's a move aimed at curbing the theft of u.s. technology, u.s. trade representative robert lighthouser said the tariffs

would target china's sector and could include restrictions on chinese investments in the united states. other sectors like apparel could be singled out he says it would minimize the impact on tariffs on u.s. consumers. chosen threatened to tally, exports of most likely soy bean, meanwhile, commerce secretary wilbur ross will testify in front of the house ways and means on nafta kevin brady, chairman, joining us now they didn't show the other night when president trump told you to stand and only one network carried. that we don't need names he called you out and said the same thing i always said to you, remember you are the north star of tax reform. it doesn't matter what else is going on, you will get that done and you are single mindedly focused on that that's what president trump said to you, did he get na from

me you think >> he did. he follows you religiously i often have to remind him not to say everything you say. >> you are interesting sar castic he also mentioned and i guess it really is a true thing that there could be a second part, a second part to tax reform. he's working on it with you, he mentioned. can you enlighten us on what we're talking about here because i take it seriously now. >> yeah, by the way. you did the worst impression of ed the talking horse that i've heard in years >> how did you know what it was? >> i knew what it was it's our generation >> the owner's name is wilbur. i can't help it. what would be in the second part would it help leak the first one? >> yes, so a couple things, one, we think a new and improved tax code demands a new and improved irs. so you will see in april, a billion moving forward that restructures irs, focuses it on the taxpayer focused orientation

that we deserve. secondly, we think especially in the family provisions, we did long term, because the senate budget rules, we couldn't make it permanent we think that's important. the other thing, you may remember all during this we talked about how we think we can do more to help families save more and earlier throughout their lifetime how we can do more to help start-up companies grow and innovation my point is, we should never sit on our electoralaurels and maker families and tax codes more competitive. >> so we would be gratified, satisfied, happy about the way we will fund the government again this time around >> i think satisfied is the right answer here's why look, we really do have a crisis in our military readiness. it's undeniable. i know back home i run into families who are on their seventh or eighth deployment

i have them cannibalizing one helicopter to get the blackhawk ready for just a little pilot training we got a serious problem so the main reasons to support this bill, in my view, to rebuild our military a serious way. >> can we you know tell china what's what? if for lack of a better term without retaliation or without us actually hurting our own you know fortunes by taking a tough line, in your view can we do it can we walk the line >> it's hard look the president is right to go after china on intellectual property in enforcing tech transfer it costs us thousands of u.s. jobs the challenge for the u.s. president is you do it where you don't punish america for china's behavior you have to tharth thearget the. it is a discerning lean. we are urging him to narrow these and hit the target and

make sure there isn't spillover that affects our workers, our family, our farmers. >> what do you think the way it's being proposed? $50 billion in tariffs expected to be announced by the president today at 12:30 p.m will this have repercussions soy bean farmers punished as a result >> one of the smartest this engs the administration would do, would be a 30-day comment period or something leak that before this takes place so you lay it out. you get the feedback you continue to fine tune it again, every president has had this challenge with china. every president's tried in some way to dress it. certainly the president is taking this on, you haveto be careful as you do it >> congressman, mr. chairman we are seen a few special election, things like that we've also seen the public opinion on the tax plan steadily rising to where it may be a

majority now i think that's against, you know who is on the other side of that you got the democrats talking about crumbs you got, i don't know, whatever you think of the media but it's tough, but now it's up there. in the past, the economy would dictate mid-terms. but this time, you've got a unique individual in president trump in terms of his poll numbers. i don't know what those are either those are told to me by media, too. i don't know what his poll ybs are, in every mid-term the party in power usually loses will you hold onto the house, do you have a really strong feeling one way or the other for republicans? >> yes, i believe we will. here's why the president's policies are right. he has the economy going in a major way, people are seeing more in their paycheck there is hope for people coming out of schools hope they will have better jobs and paychecks. they are seeing it now

i think the best is yet to come, while we are encouraged by the short-term impact the truth is, this tax reform is built to grow america. by jobs from overseas, long-term benefits as well i think it will be a powerful tool and that's one of the reasons, you know, building off that momentum. tariffs are taxes. so, look, lower is better. zero is the best that's why we are urging the white house to be cautious, if they take this step and help us find a way to keep building this economic momentum. >> are you worried about the federal reserve? because while you are doing all these things that are adding stimulus to the economy, the federal reserve is talking about raising rates as a more rapid race than we had anticipated what itself the impact on that on the economy >> look, they have to normalize these rates, giving clear zbiens to everyoguidance and when that

occur is key here. it's important for them to the to put on the brakes prematurely. so, look, they have a challenge. they have a to get a sense i get the feel that is what they're trying toy accomplish. >> the double digit lead between the democrats and republican, democrats were double digits, after it had been cut basically to zero. i'm trying to figure out where they, what caused it to swing back that way this time? i mean, i guess it's just people get disillusioned with the party that's governing half the time in any normal -- it's the economy's stupid environment, you would think this would be favoring republican himself. but there is something that is the volatility of the whole of walk right now >> i think the economy still matters to families and to their future i do think, look, the news of the days or the week really does affect that jenneric poll in major ways

you can see it move dramatic amy, week-to-week, month to month. so at the end of the day, it matters that week heading into november >> all right mr. chairman, congressman. i always stick with that i didn't ask anything about russia or any of that stuff. i know usually you blow me off you get back to taxes, which is probably smart of you. >> more key for our viewers to stay in that lane. anyway, thank you, congressman, appreciate it. >> thank you, take care. coming up in the next half hour, much more on the facebook fallout. earlier, we asked you to weigh in on ceo mark zucker brke zuck response lots of different opinions out there. we will be back with more on the sloppy management.

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welcome back to "squawk box," breaking news, initial and continuing claims, the most recent week, we're expecting the number 225,000 we ended up with 2 between 2 between,000. that's up 3,000 from an unrevised 226,000. continuing claims, 1.828 amount bit under 1.83 million that down from last week unrevised. light data week. we will have yet to come leading

exec indicators. always fascinating never exciting really on that number we are still, obviously, in the 70s when it comes to these claims numbers there are a index down just a little bit maybe the big news overnight outside of stocks being weak again is the notion that we ever ended up with a close in the 290s this could be day 20 as a matter of fact, i'm pretty convinced today will be day 20 as we're down four basis points from our 288 settle yesterday and the shortened like it's been doing all along is somewhat glued to the wall. yes, it's dropped from the 235, 236 area but it's hovering at 230, which is where it sort of was yesterday after all the action with the fed, which means the curb is flattening again, a lot of debate there. a lot of debate about libor, ois? listen, if rates are on the high end, it isn't so shocking to see

these other rates, granted they moved quickly, some obsolete quickly. in the end, the biggest issue should be considered growth. we need better growth. retail sales for the first part of this year have been flat-to-weak. >> joe, back to you. >> thank you, rick let's get to steve leash man in washington is there more stuff today? i guess there usually is you can come back -- decided to hang out down there? >> i wanted to give you an opportunity to make a dome joke. >> it is a beautiful dome. >> plus the capitol, which means you are saying that my head is the symbol of democracy, liberty and freedom, i appreciate that every time i walk around, i do, yeah thank you. >> they're on my side. they play along with it. >> i brought this on myself,

joe. here's the thing, joe, i thought we'd spend a minute,remember i talked in the last hour someone said the fed was dovish, was hawkish. let's put meat on those bones and say what the hawkish case is and the dovish case is becky got me to think of something else they raised the funds and upgraded the overall economic outlook. here's the dovish case, here's why you could, there is something for everyone what happened yesterday little change in the inflation still around 2%. they actually downgraded current growth from solid to moderate in the first sentence and powell doesn't see wage inflation then becky got me to thinking. she asked, why can't we look at what the upper guys do, and the lower guys do? here's what i did. take a look at this next graph i said, how many fed officials were below the median for 2019, just for -- how many were at the median that's fine. that was the 2.9% for next year.

how many were above. that's 6 okay so what you find is that these guys who are, there is more tail risk out there there is more fed officials that's above median fed funds rate for next year than see it below. and that may be why the mark overall, becky, is getting a kind of hawkish tilt from what happened yesterday it's all from the forecast that show, you know what, if we're wrong here, we're more likely to be higher than we are to be low lower. >> that's a smart way of doing that, steve. let me ask you a question. we don't have any idea which of those are voting members and which are not voting members. >> you raised the question there is a debate in the fed of putting a name to a forecast not only that, but putting other numbers to the forecast. so that you can know, that this guy thinks this woman thinks, unemployment is here the fed forecast is there. inflation is there to see about logical

consistency. as you know when we have fed presidents on, fed governors, some say or stand by their forecast and tell us what they are. others don't bullard, for example, is likely to go ahead along the bottom at 1.625. also yellen dropped out of there. shelves clearly. i think she was a little below the medium i haven't been able to check on. that i think she was at or below the medium there >> that can be humiliating if your names are put on the things >> a reason not to do it let me ask you you 'ut that chart back up what i want to show you is that the people who are at 6. those six fed officials above the median, their forecast averages out to 3.4% that's for 2019. so that's where that hawkish tilt comes from. >> that five or around the median right there at the median of 2.9 but sex of them, they average up to 3.4%. >> that would be very aggressive

for 2019 there are some serious hawks out there with some serious forecasts for the feds forecast that maybe are a little worrisome to markets today. >> steve, thank you. we sit here throwing things out into the ether you answer our questions we appreciate it >> that's nice let's tell you guys about other business news, steve wynn told some of his stakes in wynn resorts. >> that lowers his take to 7.8 from 11.8. his ex-wife elaine is now the largest shareholder. she has a 9.3% stake wynn resigned last month amid allegations that he subjected women employees to unwanted advances he has denied those accusations. when we come back this morning, mark zuckerberg says, sorry. >> this was a major breach of trust and i'm really sorry that this happened. >> after that massive data

scandal. we will talk about what's ahead for the social media company with a man who wrote a book on facebook the author of "move fast and break things." he will join us. by the way, check out shares of facebook down another twond a a quarter percent today. (daniel jacob) for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts to about 10 pounds of carbon dioxide every week. (malo hutson) growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener.

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all of that data, location, shopping, sites, where you travel, places you visit, all of

that has been accumulated, sold, marketed all around the world. okay so facebook is a piece of it they have huge buyers of other data this is thought the data you have a cute kitten up there. so i think people have the right to know, what it is, where it is, how it's controlled, why it's controlled. >> that's jp marken ceo jamie dimon weighing in yesterday. it shows facebook taking a hit since the data scandal broke it's maybe why stock is down 2%. ceo mark zuckerberg making his first comments about that scandal last night. >> we are doing a set of things to restrict the amount of access that developers can get. but the other is we need to make sure there aren't any other cambridge analyticas out there or folks who have improperlying

a sellsed data, so we're going to go now and investigate every app that has access to a large amount of information from before we locked down our platform and if we detect any suspicious activity, we're going to do a full forensic audit. >> joining us now is jonathan kaplan, director of emeritus innovation lab she the author of "move fast and break things." >> it's good to be here. >> i guess this is the downside of moving fast and breaking things >> yes, the subtitle of my book is how facebook and amazon cornered culture and undermined democracy. the book came out almost a year ago. it was first kind of lonely, now i think people are beginning to grasp that this is a real problem for our democracy and for our culture. >> jamie dimon i think had it

right where he said, look, what we deserve is probably some transparency of what is done with this data, who has access to it, how it is being meaned, how it is being sold zuckerberg apologized last night. i don't have a clear idea what it is facebook does with my information. >> what i was struck by his policy is he doesn't know what's out there. it is this franken stein monster he's built he has no idea how it's being used a few months ago cheryl sandberg said he was shocked people would use our anti-targeting tools to target anti-semitic users. did you, de-- duh, i can target women in california who use bourbon, i don't think this is a

satisfactory response. i mean the one thing i do think was good he said he would come from the congress. i think in the next two weeks, we'll see him with his hand raised in front of congress leak those tobacco executives used to have to do and answer some tough questions, because, ultimately, if they don't get to the place where they have to take some responsibility for what's on their platform, and that means changing the say farber laws, nothing is going to change >> jonathan, understandably, mark zuckerberg, the company has tried to maybe contain this issue as a usage of data issue as to what app developers might have access to obviously, in the public mind, these issues are kind of tumbling into each other, whether it's what facebook's you know, news algorithm does in sebing up certain times of information and lots of other issues that have been a matter of concern so what does the company have to

do in terms of thinking about how it can maintain some level of trust right here? whether it's talking to congress or maybe submitting to various types of oversight, as you said? >> well, look, first off the federal trade commission has opened anen query about the privacy issues facebook had previously signed a consent decree saying that they weren't going to use third party, let third party people have access to your data without your per mention they obviously violated that to 50 million people. so that could be a pretty serious fine to facebook the second thing is the european union is about to put in a privacy regulation gdpr, which will allow me to use spafacebook without data other than my age, my sex, aed what town i live in. people estimate thad might mean enif i did that if i removed and

purged all my data from facebook, i would probably be worth about 60% less to facebook in terms of their ability to sell me to advertisers and so that would be a rather substantial change in their business model >> but that would apply only to users coming in from europe. it would be up to u.s. regulators to decide -- >> not necessarily not necessarily. i think that people have been saying that companies around the world are going to prepare for gdpr because we live in a kind of boundariless virtual world and where do you cross the line? and besides, i think the u.s. is going to begin to follow the eu in terms of both monopoly, anti-trust policies and privacy policies and i think we're going to see only major changes and as i said, we just saw a major piece

of legislation pass yesterday with this sesta bill which would ban people from sending you to online sex trafficking sites and remove the safe harbor problems for that google and facebook fought that bill tooth and nail and eventually they had to give in that's perhaps just the first chink in the armor of this safe harbor, which has given them complete liability protection for anything that's on their platforms. >> when you use a number like 60%, i mean, you know, the stock is worth a half a trillion dollars. i mean, is that, is this the highest it will ever be, jonathan that's not what you do for a living, obviously, is it downhill from here >> i think so. i think that there is inevitably the few private policies that will reduce their ability to track people because if you imagine that ki

use, if i can use facebook without having them take all my data and i still am able see my grandchildren's vacation pictures, why wouldn't i do that i assume that 50 to 60% of the users would say, i don't want to give them any more data. >> i don't know. there would probably be no longer happy birthday wishes i think a lot of people will give that away. >> you can have birthday wishes. the thing you wouldn't get is you'd have ads following you around because they think you might need new pair of shoes because you were depressed >> i'm not even on it. i hear from people on it, oh my god, i search this, the next minute you know. >> it has altered what i will be willing to search forror on google or something else i want to look it up but didn't want it attached to me. >> the futures are up, i don't

know what's happened >> there has been pressure on facebook it's a broader issue >> jonathan, you know, i think it is worth mentioning, there have been pan effects about new forms of media before. i know there were congressional hearings in the early '60s about tv ratings thinking networks could reg their ratings by promoting their own shows and basically serving people up -- i don't want to ewhat it the two it seems we have to maybe go through this period and have the fever break and figure what we are left with when it comes to these platforms. >> i think this is really different. i mean, cnbc cannot broadcast something that you know to be a lie. you wouldn't have reported donald trump was endorsed by the pope and yet facebook is this open platform and twitter is just as bad and youtube is just as bad in which people who have very nefarious reasons for posting

stuff can use the platform without any censure whatsoever you think about the florida shooting, within an hour there were videos on youtube that were saying these kids are just actors this was all a fake. this didn't really happen. those were the ones because whoever it was, the alt right or the russians know how to use bots to push things to the top of the search engine those were the most searched items on youtube around the florida school shooting. they were complete lies. >> jonathan taplin, thank you for joining us we do appreciate your time >> my pleasure thank you. when we return, jim cramer joins us live from the new york stock exchange we get his take on the day's top stories. we are now between 250 and 300

down on the dow futures. almost 100 on the nasdaq we'll be right back.

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let's check out the futures. went from down, what, now down 1% or so so maybe not too much to get excited about, but let's see if jim has a reason he's at the new york stock exchange we did move down 100 to 250. nervous trading around facebook. and i don't know what you think. >> we had a price target reduced, bank of america talks about real issues. you know, my take on this is that when you're not trusted, you have to bring in outside person to come in and really look at things i think that zuckerberg lot a lot of trust and you bring in someone with a steady hand, you bring in a law firm, a ken feinberg, they look at it, they figure out who did what, whether anyone was inclusion, they get people fired and you move forward. and none of that has happened yet. so that is going to happen also the american people including the people who trade stocks will get tired of the

story. but they won't get tired of the tariff story and i think there is a major change, a lot of people made a lot of money in the stock market and in companies being global it'ses and the high tide of globalism is gone. so people are reassessing everything and i think that is far more than behind the decline than zuckerberg going to cnn and giving an interview. >> so it is at 18 times earnings if they make $7 or $8. we just had a gentleman on saying that if all you provided facebook was your name and your birthday and your address, and you couldn't collect all that data, that it could be 60% less in terms of what they are able to sell everything for i mean, is that a possibility or would the business model stay intact >> see, i don't think unless you doen a o an opt out saying you t

use any of this -- amazon, google i listened to that fellow. very important because basically it would say that it is the end of social media, the end of netflix. they find out what you like. it would be the end of artificial intelligence. and i don't think that will end. it is a great thing to say, you know what, i can say i think facebook is done and they will lose money in this quarter that is fake news, but who would come after me, journalism prosecutors? so i find that you can say whatever you want. you can just say -- you don't even know how much money they make selling it, but you can say that their earnings are down -- i find it irresponsible. i find it irresponsible to say because i'm stuck with the four walls and trying to figure it out. maybe there will be some leakage absolutely, but i don't see a lot of people starting to go right now to, i don't know, wapner.com because they trust wapner.com

totally trustworthy, but i don't see 2 bill i don't know people goi billion people going to wapner.com their earnings could be down 100%, but that is fake news. cramer fake news all the time. i'm tired of facebook. i'm not tired of talking tariffs though >> all right we'll see you in a few minutes and we're kountcounting down one wh y ninbe atoueed to watch is ahead next i'm very proud of the fact

that i served. i was a c130 mechanic in the corps,

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welcome back we are counting down on the opening bell on wall street. mike santoli is with us. an you've been watching a lot of different things >> stale watching facebook yesterday a feeble bounce in the stock. obviously reaction to whether zuckerberg's words will change the narrative. and also looking at the broader kind of nasdaq 100 fang type group. there has been some efforts to differentiating among the members. so facebook and alphabet have been much weaker than like amazon, netflix. so in-you'll want to see if it will shake out that way. you have hope for nasdaq being the leadership group again but as it is right now, it seems like things will be back on their heels. treasury yields backed down. as rick said, kind of worried

about this little soft patch in growth in combination with a fed that wants to look for an excuse >> are you predicting spring, do you know >> it is nice out there right now. >> is it over, do you know >> not snowing right now >> not right now so can we -- it's coming, right? maybe there will be growth >> mike, thanks for being here we'll join you back here tomorrow right now squawk on the street this was a major breach of trust. and i'm really sorry that this happened you know, we have a basic responsibility to protect people's data. and if we can't do that, then we don't deserve to have the opportunity to serve people. >> that is the story of the morning. zuckerberg speaks. welcome to squawk on the street live from the new york stock exchange carl and david are off today let's take a look at futures they have he taken a