most people are tempering their enthusiasm for this report just 2 1/2 hours away from that number predictions minutes away on this friday, april 6, 2018, "squawk box" begins now. good morning welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. as joe mentioned, the dow futures plunging overnight after president trump proposed an additional 1$100 billion in tariffs on chinese products. we'll get a report from washington in a employment first you can see the dow futures are down by almost 200 points, last night down by

almost 400 points. s&p futures are down by 17 points the nasdaq down by 46 points overnight in asia, shanghai was closed for a public holiday. if you see what happened with the nikkei, down by a third of a percentage point the hang seng closed up by just over 1.1%. in europe, you will see they're not nearly as affected by this talk this is a china/u.s. situation that's really percolating. you still see red arrows with the dax and cac off by a half percentage point and more moderate declines in london. let's look at the treasury yields the ten-year picking up above 2 2.8% right now at 2.82% part of the retaliation that could come from the chinese might be to stop buying u.s. treasuries at a time when we're

issuing a lot of it. >> let's get to the top story of the morning. president trump proposing an additional 1$100 billion in tariffs on chinese goods eamon javers is here to help break it down. axios says this could be a bluff. what is this >> the president has a history of bluffing on a lot of big subjec subjects that's the why the market is digesting this we got announcement a little before 7:00 p.m. last night. the wording here is significant. the president said in light of china's unfair retaliation, i've instructed the u.s. trade representative to consider whether 100 billion of additional tariffs could be appropriate under section 301 of the trade act and if so to identify the products upon which to impose such tariffs

i asked a white house official for an explanation of what the president's thinking is here the official said that the president is simply sending a message to china about consequences all of this is unpopular with agricultural state senators, whose constituents will bear the brunt of this. look at this comment from ben sasse last night, hopefully the president is blowing off steam again, but if he's even half serious, this is nuts. the chinese dug in as well here is a statement from the chinese commerce ministry saying china will fight back to the end at all costs china will fight firmly against it with new comprehensive action the chinese threatening retaliation for the retaliation for the retaliation. that certainly seems like a trade war. none of these tariffs, though, have gone into effect yet. we have this rhetorical trade war, a trade war of words. whether we will get an actual

trade war here is still too be determined but you saw larry kudlow come out this week and try to soothe markets by suggesting all of this is a negotiation. none of these tariffs might come into play. wall street could be scratching its head looking at those statements from larry kudlow earlier this week and then looking at the statement from the president last night >> the question is to the extent that this is some kind of grand game of chicken or let's came it a negotiation if that's what it is, what is the happy place looking like is there a way for china to negotiate with us so we get something we want and they get something they want given the rhetoric >> that's a good question. it's not clear the white house has an end state in mind it's not clear they went into this with an ideal outcome other than changing the balance of trade here ultimately.

the president talks about a 5$50 billion trade deficit, which aides say is not nearly 5$500 billion. nonetheless the president uses that number. >> it's intellectual property. every time china acts like we've initiated harming them, like we took the first step, it's disingenuo disingenuous they know exactly what they're doing. the end game is they stop doing what they're doing stealing intellectual property for too long it's gone on. >> we saw an announcement this week from the department of justice where they announced a sentencing of a chinese scientist who was stealing agricultural secrets from the u.s. >> if this is under negotiation, when will they actually start negotiating? who is responsible for that? is it mnuchin? >> the negotiations are clearly starting this war of words is part of it. >> is mnuchin talking to the

chinese? >> you would have to imagine it would be lighthizer, and also steve mnuchin. would peter navarro be in those conversations? would larry kudlow be in those conversations? >> all the harsh rhetoric on nafta, wait, trudeau is like, yeah, we're getting close. they're making sense i don't think we need to go to axios. i follow four people that i follow on twitter. cramer is one of them. i know he'll be up >> that's true just to see him up, i get a kick out of it. i'm just getting up, he's tweeting two hours ago he said the futures are saying this most recent 1$100 billion tariff figure is bombast. two hours ago we went from 400 to 170 >> here's the question, joe, if it's bombast, and the market can

see it's bombast, how is it effective with the chinese the chinese would also see this as bombast >> everybody is shocked there's gambling going on here everybody knows what they're doing. when they act like they're oh, wait a second, you can't do this you know -- we know -- they know that we know what they do. >> right >> but the more chaotic it becomes for the market, the more effective it is as a negotiation tool nobody knows if it's a negotiation tool or for real that's the catch 22. >> that's the thing. >> everyone knows it's a bluff, it's not effective >> that's where the craziness comes in if you're trying to figure out how to place bets, it's really hard >> that craziness, i think that may be bearing some fruit in north korea. that guy doesn't know what to think of trump >> i said this on the air yesterday. i think it bears repeating the president values this trade

agenda more than he is worried about short-term pain in the stock market >> definitely. >> but hearing from the farmers who voted for him saying this is not what we voted for you to do -- >> he has padding in the market. he has 30% he's working with >> i talked to people in the white house yesterday about the farmers that becky brings up they say they're concerned their hearts go out to those farm state republicans who support them or allies feeling the pain, they say they have to do this the president campaigned on it he wants to deliver on it. they're moving forward whether or not there's short-term pain in the market today, this week, next week, et cetera they think ultimately -- >> stocks are not the biggest issue that are going to concern the president. but what happens to those farmers will concern him >> what is so different from what we saw in 2017. that's what's amazing about the pivot here in 2017, the president was all

about the stock market you know, the tweets, tax effort the president very in tune to the stock market this year a different president trump. not focused as much on the stock market more focused on his agenda willing to take that short-term pain >> might be -- we'll see might be able to fall back last two jobs numbers were unbelievable might be able to fall back on that >> we have one today and the president likely would have been able to know what today's job number is at about 6:45 last night when the statement came out >> eamon, that's interesting the implication there is that going into this -- you think he put out the other statement knowing that he was also going to have a bit of a wind at his back this morning? >> it is definitely possible the white house gets the job number the night before it's released it's highly classified, highly

secretive. very few people have access to it, one of them is the president of the united states, if he wants o. >> so he would get that at what time >> usually in the evening. >> what time did he -- just to -- >> this announcement came out at 6:46 last night. >> okay. >> so us likely the president would have been able to know that jobs number at the time that he put this statement out we don't know that he did. >> i like the drama. >> we don't know that he did but it's a possibility >> supposedly. >> depends on whether he's playing five dimensional chess, three dimensional chess or checkers >> thank you, eamon. a quick programming note, today at 1:00 p.m., steve mnuchin will join the gang on "power lunch. he'll talk about that number, taxes, tariffs, trade and the economy. news on our other favorite topic. facebook's coo sheryl sandberg

speaking to several media outlets yesterday when asked by nbc news if facebook could develop a tool for restricting targeted ads, sandberg saying that would be a paid product sandberg detailed changes coming to the platform. >> starting monday we'll begin rolling out to everyone in the world on facebook at the top of their news feed a clear way to see what apps they shared data with and an easy way to delete those. we'll let people know if their data might have been accessed by cambridge analytica. >> sandberg will be on the "today" show later this morning. we'll bring you highlights from that later on on "squawk box." >> somuch more i want to talk about. >> with facebook >> yeah. >> there was another twitter thing from our buddy, james woods.

i do follow him. about a deal with hospitals and private health information -- >> they were trying to link up information so they could more directly target ads. >> sick people it was a weird -- >> there are all questions about privacy and whether people care and whether people would pay to keep that privacy. i don't understand the terms of how that would be. would your information neveren mine e -- never be mined or they would not send targeted ads to you >> i think the idea is you could physically turn off -- >> opt out >> if you wanted to opt out of data election or data targeting for advertising -- >> all they said was data targeting for advertising. >> i assume she's saying, look -- there was an interesting study last week that said they collect the equivalent of about $40 per person annually from advertisers based on you being a

part of the system >> i would pay $40 a year. my question would be the reason facebook shares have grown so much is because they're getting a larger and larger and larger share of the advertising dollars all the time if you are going to say i'm at $40, that's it, and you're not going to get 50, 60, 70 unless you plan on raising my subscription price all the time -- >> the math was $40 globally i happen to believe that you, becky quick, are worth more than certain other people elsewhere i imagine the price might be double or triple the question is what's your price -- >> there's a price i would pay and a price i would say no more. like if you're looking at hbo over the op, a cable bill, a

phone bill, you pay a certain amount >> but in the free model, some people will take the free model and accept advertising >> i still have questions of what that buys me. is that no data collection period >> let's make it interesting let's say all it buys you -- >> yes, please >> what? >> let's make it interesting >> let's say all you're doing -- >> let's get back to joe >> yeah. >> hold on the day-to-day service is no different except for the fact that your data will not be available to anybody else. would you pay for that privilege? >> i would >> i respect that. i think it's a small sliver of the world. >> i'm starting to identify with you because i bought something on amazon this morning >> finally you actually have an account >> does the credit card fit into the computer >> you have the app? >> i knew someone's password

i went into her account an i bought speedo, swimming ear plugs for my son stupid dick's, the whole swimming section, there's little things where they're supposed to be empty. empty. you know dick's. >> i bought you something on amazon yesterday while we were on the show. >> a mouth plug. >> no, a serenity stone. >> it's arriving today, but i won't see you for a week >> if you have questions on how to do it, i can order for you. comes in three days. >> we're quite capable mine is arriving today >> now they're yelling at me about getting to the jobs number >> let's get to something interesting. >> just hours away from the latest report. i talk about michelle girard, she's in a bad mood with your number today >> she's never in a bad mood >> and jim o'sullivan, you're at 185 -- >> no, 150 >> is 18 5 c5 consensus?

>> yes >> you're at 130 >> i am. this is coming off of -- >> >> 314 and 239 >> two months of strength, even with a 130, the first quarter average gain will be over 225,000. that's better than it was in the fourth quarter better than we saw all year. you know these numbers >> also the snowstorm that hit the northeast. >> we had gains in february that are probably not sustainable, on top of that weather, some of which hit during the survey week the numbers are noise. you have to take it with a grain of salt, look at the trend >> your three-month average is 20,000 above what it was >> but that's close -- that's almost 3 million jobs. >> in a full employment -- >> that's impressive >> last year the average was 182. it would be a lot higher than

that even 180,000 is way above the underlying trend in the labor force. unemployment keeps going down. even though we get a below trend payrolls number today, other parts of the report -- just pay back for exaggerated strength. >> were stothere were storms. >> but that was late >> in retail, sol of tme of the categories, we can't maintain that degree of strength. >> nationally it was 2 degrees cooler in february >> in february, but march the temperature changes may be worth 20,000, 30,000 just as we were saying that's not the main part of the story. it's a bit more of giveback from really above-trend gains in the last couple of months.

>> all right participation rate, wages what will we see in that? >> participation rate jumped 0.3% last month, participation rate has been for four years more or less flat. >> can it go up? >> i think flat is strong given the demographics >> do you think that >> yeah. >> this month the unemployment rate held, even though we had a strong payroll number. chances are this month with a weak payroll number the numbers go down again. so it's a mixed report from that perspective. >> we are seeing similar changes in employment and the labor force every month. as new workers are coming in, they're getting quickly absorbed the ebb and flow of data, the months when labor doesn't expand employment in the household survey weakens

i think it's that similar movement between employment and the labor force that are keeping the unemployment rate steady i agree with jim i think the hourly earnings number would be almost more important for people than the payroll numbers. >> that's what we expect the fed to be watching to see if they will raise three more times this year or two more times all of these concerns around the potential for trade, trade wars or something might keep the fed at bay any way, right? >> that's a source of risk as powell pointed out two weeks ago. he will talk this afternoon as well that will be important to see. i think they're viewing that as a risk if trade war mongering causes the equity market to tumble, no question that feeds back into the fed decision as long as it's a risk out there, not part of the base case, in the meantime numbers are strong and tightening. >> the last time there was fear of inflation any fears of that?

>> we both have firmer hourly earnings numbers than we had seen last month. year over year jumps back to 2.8, where it was in january markets are highly sensitive to the wage picture even with the softer payroll print, if there is upside surprise on the earnings figure, that could carry the day in terms of market reaction >> we shall see. i'm hoping for a big upside. >> march tends to surprise i think it's -- out of the last ten years, 8 0% of the time it' printed weaker underlying numbers, again, there's some giveback from strong fourth quarter numbers. >> when you go in and log in, does it make you prime if you're prime? did i not get the deal i could have gotten? >> you're probably prime

inch assume you're prime >> if you get a lot of boxes showing up at your house, you're prime. >> i do need to go to the post office to give them money to cover what it costs them to bring it >> no. they're making up for it on volume >> you should give a donation the way we all do april 17th >> you can't wait. >> my annual party >> i know. >> thank you thank you. coming up, it's jobs friday. we celebrate jobs friday we should have a party on jobs friday before we get the report at 8:30, we have the next installment of our series "where are the jobs." kate rogers, where are you this month? >> we are at georgetown university because the cia is looking for talent we'll tell you what it might take to gehid t reat one of the country's most secretive employers coming up after the break on "squawk box." [fbi agent] you're a brave man, mr. stevens.

your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances.

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occupati occupations that runs from spies, cyberanalysts, and so much more. i went to cia headquarters to find out what they're looking for. zachary wyatt is a retired cia operations officer he spent 25 years at the agency and helps it recruit new talent. >> when you look at the national security challenges we have, you combine that with renal nall gil instability, finding individuals that can address any of them is not easy wyatt says the cia most proactive recruitment efforts are in director of operations, dealing with the clandestine work of the organization >> they are charged with recruiting for win sources around the world that have access to information. >> reporter: working for the cia is not what you see in hollywood

movies and not for everyone. >> when you combine what we're looking for, interest in public service, not needing public recognition for successes, not being able to share often some of your successes with the people you most love and respect, that's the sacrifice. it's a lifestyle >> reporter: what does the agency value in applicants >> we look for characteristics and qualities that many employees do, excellent communication skills, integrity, decisiveness in, common sense and patriotism >> entry level salaries range from $55,000 to $88,000 a year to apply to become a part of the cia, you need to be 18 and a u.s. citizen born or naturalized. many positions within the agency do require a four-year degree. they're looking for a diverse demographic, and it could take a year or more to get security

cleans back over clearance. back to you. >> i get confused between cia and homeland there's tv cia and homeland cia. >> i said that you would talk about homeland >> is it different than -- >> when we spoke with zachary, who was with the agency for 25 years, he drove home the point these are your friends and neighbors. this is a lifestyle, but not what you see in the movies >> okay. very good. you know what? you always complain you never know what i'm going to say, i throw you for a loop, you knew exactly what i would say >> i knew it. coming up, president trump proposing an additional 1$100 billion in tariffs on chinese goods. right now, 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. big event today is the march employment report that's due at

8:30 a.m forecasters expect an increase of 178,000 jobs, following last month's blockbuster 313,000. the unemployment rate expected to tick higher from 4% to 4.1% u.s. equity futures are dealing with a variety of things mostly that 1$100 billion numbe for additional tariffs instead of being down 400, we're down 156 that's about 0.6%. thinking if we were at 10,000, 15,000 -- >> then that's a big deal. >> right we have to remember our 24,000 triple digits is not even a percentage >> still something that makes you sit up and take notice >> i understand. i don't think it should anymore. >> it will take us a while

before we get used to these numbers. >> our top story, president trump proposing 1$100 billion i tariffs on china in addition to the 50 billion already announced. it's a response to china's retaliatory tariffs announced on wednesday. eunice yoon joins us from beijing. the response from china to this latest round of potential tariffs has been swift >> that's right. the chinese are saying that they are watching and waiting to see whether or not president trump's threat turns into action, and if it does, they say they're ready to slug it out until the bitter end. the commerce ministry earlier today said china will fight back until the end at all costs china will fight firmly against it with new comprehensive actions. what action would that be? we're seeing signals in the chinese state press. the global times, a communist party paper said how will china

react? any global voice and most chinese would agree that china will take action with equal force and scale to fight back. a lot of people here read that to mean that china could come up with an expanded tariff list of their own, that could match at 1$150 billion worth of goods. if they were to do that, given the fact that china's customs data shows that china imports 1$154 billion of goods that meas china would put tariffs pretty much on everything they import from the united states that, of course, has not happened yet but there are analysts such as folks at capital economics who say the expanded tariff list could be an option they also believe the chinese could curtail services exports to the u.s. or increase regulations on u.s. companies in china. capital economics says if this were to happen and get to the

worst case scenario, they think it could take a half percentage point off of the gdp the chinese are saying that they have the stomach to fight a trade war more than the united states a lot of that is because they have public opinion behind them. they're marketing this like crazy that china is the hurt party. china is the victim. china's not the one who is the aggressor here already just today the trade war has been a top trending topic. people have been saying we'll stand up for our country we're ready for a fight. what's interesting is in the past hour another topic popped up which says china is not afraid that is the actual hashtag people have been making comments saying those who comment using an iphone, it's time to support domestic brands now. boycotting american products, starting from today, no iphones and no american cars these are just comments on social media

what we see often in china is sometimes these boycotts turn into government-sponsored events and campaigns. you see anti-japanese campaigns, for example, where people start to react so that's the next step, i think, anddanger you would want to watch, how consumers react to some of these government-sponsored boycotts. >> very interesting take, eunice, thank you. back to tech now president trump speaking out about amazon on air force one yesterday. the president said amazon has an unfair business advantage. he said he would take a serious look at the policies to address that issue he accused amazon of not operating on a level playing field and not paying enough in sales taxes. facebook shares are lower this morning as the fallout grows in the massive data scan

scandal. here's what sheryl sandberg told sav van annah guthrie. >> what is the reason it took so long you could have done all of this 2 1/2 years ago. >> you are right >> so why didn't you >> because as i explained, we thought the data will been deleted. we should have checked they gave us assurances. it wasn't until other people told us that it wasn't true -- >> why go to somebody who has already violated you in spirit if not to the letter why trust that they'll delete it >> we didn't trust we had legal assurances from them that they deleted what we didn't do was the next step, an audit we're trying to do that now. >> sandberg was also asked if facebook users could opt out of target based advertising, she said a function like that would have to be a paid product. joining us to talk tech is the

editor-in-chief of the verge let's do paid product first. we were debating this. do you think that there is a paid product that they'll end up offering because of this situation? >> no. at this point it seems facebook is saying things people want to hear without a plan behind them. mark zuckerberg talked to my colleague, he said advertising-based businesses are important because they make facebook accessible to the 2 billion user audience and you don't have to be rich to use facebook you add a paid product, you have to add more value than not just showing ads. >> so what's happening here? >> facebook is in a reactive zone there's never been a product like facebook in the world he's talking about it like a government he says millennials believe they're citizens of the world,

and we have to take facebook and build values that's great to say -- >> what happens before he goes before congress next week? how does he meld what he's saying now with what he'll say before regulators? >> i think he's on this press tour now as warm up for congress he gave interviews to "the times" and to recode, and "wired." he did a panel for an hour and a half with reporters the other day. took a bunch of questions. he said he was a power user of the internet and said everybody turn on two-step authentication. it's a warm up for congress' questions. the questions that people are interested in are divergent. congress is interested in the cambridge analytica scandal. can we regulate facebook the way gdr is regulating facebook in

europe people are saying i don't know what you're doing with my data, why you make so much money using my data. and i think you're listening to me on the microphone of my phone all the time that's the most common thing, conspiracy theory people have about facebook i would be surprised if congress asks mark zuckerberg about listening on a microphone all day long >> six months, a year from now, will the product b fundamentally different? will the business model be fundamentally different? will we be talking about this? >> facebook's biggest problem is they have to recapture user trust. that sheryl sandberg quote, the question is why didn't she do this before? you have all these moves in your back pocket. you will rewrite the data policy in one day if you had all of that in your back pocket, why didn't you do

it before? why are you just thinking about this now they have a long way to go to rebuild user trust >> you think without that trust what happens that's the -- we've been debating just how much people care about this. i think people deeply care about it becky cares about it. i care about it, too, but i think there's a whole generation that if you put the controls in front of me, i don't know if they'll toggle off all of the data issues if they know that the flip side is they're not getting something else on the other side >> one thing that's interesting, we did a survey where we took a national poll and asked about companies, and people don't trust facebook, it's when that starts to hit other products, and growth is stalled by what's going on with the trust issue. >> is your thought that people

will delete facebook, use facebook less, and/or that advertisers say we don't want to do business with this company. are any of those things on the table in a meaningful way? >> we're in a moment where people are reconsidering social media usage. this is a prompt for them to say maybe i don't want to use facebook more. that dovetails with zuckerberg saying i'm less focused on engagement and more focused on time well spent. they said the delete facebook campaign has not taken off majority of facebook's advertising is not blue chip, fortune 500, it's direct sales in targeted ad buys. you can't boycott one guy selling t-shirts you can't boycott a startup that has a kickstarter. they'll probably fail any way. that's a huge bulk of advertising. i don't think that's going

anywhere for facebook. >> while we have you what do you think will happen to amazon? >> nothing >> nothing >> trump can do stuff, but if he wants to attack amazon, he would go after aws do you think trump knows aws exists >> no, he's an idiot that's what you're saying? >> the post office knows the delivery business is doing just fine >> thank you appreciate it. when we come back, our guest host at the top of the hour, robert johnson, the founder of b.e.t. and chairman of the rlj companies. and then ann winblad will talk about technology. and we're counting down to the march jobs report. predictions and independenstant analysis you're wchg atincnbc, this is "squawk box. day. been preparing fors

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new this morning, a south korea court has sentenced its former president park to 24

years in prison. she was found guilty of bribery, abuse of power and coercion in a scandal. park has been in jail for the past year. researchers at stanford say facebook has a tobacco problem the team found that widespread tobacco promotion and sales happen a spokesman for facebook says the enforcement of the policy is not perfect but they are fining ways to strengthen their review an enforcement another issue for facebook coming up, the 50th anniversary of 2001, a space odyssey. and the cautionary tale of hal, the ai computer who decided the crew's mission was more important than the lives of the

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he ♪ >> i'm sorry, dave, i'm afraid i can't do that. ♪ the ground breaking science fiction film 2001 turned 50 years old this week, believe it or not among the most enduring images is that red eye of the computer the,000. when the film came out in 1968, true artificial intelligence was still a long way off but today, of course, ai is already in use and how could be much closer to reality than we ever imagined. joining us right now is michael vince enlt he is author of the book called "space odyssey." michael, thank you for coming in >> my pleasure >> we were talking off camera,

i'm shocked when you look back at that film and realize it was 50 years ago there are movies that are 25, 30 years old that seem to dated to me but "2001" does not why does it endure >> they were plugged into the companies producing the space age. they consulted with boeing, a lot of -- you know, a lot of major companies that were actually working with nasa and they consulted with marvin minsky who co-founded the mit artificial intelligence lab. and so how the computer that you just mentioned, the red eye, evolved from a robot that wasn't very bright to, you know, to ai called athena after the goddess. and then became howl based on a suggestion from marvin minsky. >> the idea that it was so on with so many things, not just artificial intelligence, the

commercialization of space we're seeing this all play out they knew what they were talking about. >> pan am is no longer with us >> it's now united they would have lost all the luggage. >> you're probably right no, i mean, that film -- the look of that film continues to astonish man astonish me and not just professionally there are all the big flat screen displays everywhere that is on sfris various advisors to them if you look at a fail am like "alien" and you have crt monitors and clufrnky switches the spacecraft. >> great film nonetheless. >> yes >> there could be life that didn't become more intelligent than us, it just became more effective at occupying the niche. asset for blood and everything else all right. the thing that i think that the lasting thing from "2001" is

warnings from ai we need rules. because unless we're okay with machines sur planting us and maybe that's okay, because machines could travel the universe and cultivate the universe we may not and maybe we're an intermediate step in what happens on earth. we won't be here anyway, but should we worry about humanity being the bridge to ai >> the film references the idea of the uber mench, the nonhuman entity and the human race is just like a tight rope between man apes or apes or ape ancestors and the uber mench the film thus the music and the that refers to him as well and arthur clark, by the way, he was always a tech know utopian, unlike clark was more of a realist, clark wrote, you know, why should we expect our species

to loast forever and he's like bring it on. he was asked in ain't view in san francisco infer april '68, do you think technology is dehumanizing us? and his response without missing a beat was, no, i think it is super humanizing us. >> i hope we're a part of it but we're a lot of work, flesh, blood, waste, intake, all those things >> we're not very sturdy either. >> no. >> and we talked about fire upon the deep and it's one big machine taking humanity forward but we're just not part of that. >> what worries me is the weaponization of ai. and, you know, another message of "2001," you see it with the man ape sequence he learns how to use a weapon. you know, we tend to weaponize things >> yep >> that worrisome. >> michael come ckba >> or we'll just bring in a machine. dwoenlt need you ♪ ♪

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new no morning, president trump proposing tariffs on chinese goods. jobs in america. the latest read on the employment picture is just about 09 minut 90 minutes away. what you need to watch and where you should be putting your money. in business of body slams, the co-president of the wwe joins us ahead of this week's 34th wrestlemania, the second hour of "squawk box" begins right now. >> no way! >> wrestlemania! ♪

>> live from the beating heart of business, new york. this is "squawk box. >> good morning. welcome back to "squawk box" right here on cnbc we're at the nasdaq market site. take a look at u.s. equity futures this hour. after some comments by mr. trump about some tariffs in china last night. we'll see where things wind up we also have the jobs number this morning so all of this may very well change in the next hour and a half dow looks like it would open off about 186 points that's a lot better than where we were just several hours ago nasdaq off about 51 points s&p 500 looking to open down about 19 points. president trump doubling down on the trade war with china, becky. and proposing an additional $100 billion in tariffs >> that's right. let's get to cnbc's amon javers.

they're covering the angles. let's start with kayla good morning >> good morning. the president wanting china to know that the recent threats will not go unmatched. proposing an additional $100 billion of tariffs, although not providing any details. under what investigation this would be under or where exactly this would be coming from. ustr published a report where it found $50 billion in damage to the u.s. economy from the intellectual property violation they already studied and by law it is limited to that amount for the actual tariffs that it could levy perhaps that's why after the president's statement we got a softer tone from the u.s. trade representative himself, robert lighthighser whose statement yesterday said when the proposing is an appropriate response to the threat of new tariffs but any additional tariffs proposed will be subject to a similar public comment process as the proposed tariffs

announced on april 3rd and that no tariffs will go into effect until that respective process is complete the $100 billion that the president suggested, a very large round number, $150 billion in total exports targeted would be roughly 30% of the products that china exports to the u.s. on an annual basis but one of the biggest concerns here is that as the administration has sought to point to negotiation this is week where they hope to save the trade issues behind the screens r. scen -- scenes, they're not ready to say where, when, or who will be participating in the talks despite being asked about what is going on behind the scenes wloshgs , who is leading the talks and when there could be any momentum between the two sides and what, frankly, the u.s. is looking for. the market had been focused on nafta with u.s. officials meeting with canada and mexico this week because the real deadline in the china situation

don't approach until next month. the ustr has until may 22nd to actually decide or publish what it's going to do and what its final tariff list will be. if it chooses to act and so that was why the market had taken a pause and thought, okay, we have time to digest this but certainly the president's statement last night and the fact that china's commerce ministry said they would fight the response from the u.s. at any cost, certainly has introduced new tension to this situation >> okay. thank you for that, kayla. we're going to try to make heads or tails of this throughout the morning. we have other headlines to tell you about this morning we're less than 90 minutes away from the march jobs report the unemployment rate is ticking lower to an even 4%. average hourly earnings are expected to see a .2% increase for the month. some other news for you as well,

dow component general electric asked to drop their long time auditor. there are accounting issues at ge and another procxy advisory firm had made a similar recommendation earlier this week we'll see if they stick with kpmg or not. then there is the drama around the sale of toshiba's chip unit. they are slated to sell the group for $18 billion. but they say the unit is worth twice as much. toshiba does have the option to cancel the sale since the deal did not close by previous deadline of march 31st we'll see if they try to avail themselves of that option. >> all right are we pleased to bring in our guest host this morning? rlj company's founder and chairman, bet founder, bob johnson, media visionary, private equity god you're iconic. i don't know what you want to talk about but there is the economic backdrop

>> right >> i want to get your view point. you have so many businesses and how things are going but i want to get your comments on the political environment as well and how it relates to the economic environment how is business? >> business is very good i believe that if you take into account the trump tax cut, you take into account the drop in unemployment and particularly unemployment for african-americans, it's the lowest it's ever been in history. and you take into account the fact that interest rates are fairly stable. they will probably drift up. but so far, i think the business community is committed to reinvest capital that they get from the tax advantages. and that as a result of that, i think the economy is going to grow it's not going to do five as i think larry kudlow suggested it could do five. and larry and i went to princeton woodrow wilson school together i was smarter than he was.

but i'm glad he -- >> he's a tv guy >> i'm glad he's at cnbc i'm going to call and tell him welcome to d.c but you put all of that together, i believe that the economy is on a strong growth pass and in our business, you know, car business is growing. we're about the 21st largest car dealership group in the country. people are still buying cars as interest rates are favorable hotels seem to be coming back business travellers are going back on airplanes and traveling and staying in hotels. that works for us. and still capital out there to raise the private equity field so when you put all that together and particularly from our vantage point of the focus on urban markets and african-american community, when you got about african-americans are down around 4,5, something like that, you know, that's a pretty good testament to the fact that there are a lot of jobs out there looking for people who are traditionally

underemployed. and that only comes when the economy is growing >> so there is pointed out that the old mondmantra, it's the ec stupid, things are going well. usually people are happy and feeling good and the president's approval rating is up in the mid 50s or 60s because the economy is good. there is a disconnect right now. >> right not only is it is a disconnect, 40%, 50% of the people in the country when i read at which time eastern stuff, they're not sure they're going to survive the year they feel so threatened and so bad and feel so -- it's like they don't know if democracy and society are even going to make it through 2018. and that's all about personality with trump i think are they -- i mean when do they just look around and say, wow! african-american unemployment is the lowest it's ever been. the jobs are 4%. gdp might be -- whether do you smell the coffee and say --

>> you're in a little bit of that world of no good deed goes unpunished that's what's happening politically. everything is so toxic that even if you do something good, the opposition party, the opposition interests, we're so devisive that no matter what the president would do and no matter what the democrats would do, it's all negative. and a lot of it is fueled by just this constant need to go back and be a part of a small community, forget the idea we're all part of one country. we're all in this together that's gone out the door and so it's -- i've never seen the country more in a zero sum game. >> do you watch cable tv there are people that if mueller doesn't succeed in finding collusion and getting this guy out of office, the country is going to implode >> the feeling now is there's this deep state. i keep hearing this term deep state. basically what people are saying, this country is

controlled by the dark forces somewhere beneath the government and in elite think tanks and the intelligence and everybody is prepared to throw all the means to be an american out the window on behalf of their particular group, as you said, tribe. >> probably. >> if you stay like that, then you'll have fear even though, you know, you got good numbers economically and people are -- >> you were going to -- you have -- on record saying that trump offered you a cabinet position it wasn't that long ago either, was it >> no, i met him >> how long ago? >> he was president-elect. is that about a year and a half ago? >> he was talking about a certain cabinet position and you didn't say no because it was trump. you said no because you're not going into government. >> i said no because i didn't want to work for government. i mean guys -- somebody has to deliver the mail and somebody has to work for government but i -- >> you would otherwise work with trump? you would otherwise do business with trump

would do you business with trum snp. >> i would do business with trump if -- if it's focused on improving the economic climate and opportunity for african-americans. and that means putting more money into the pockets of african-americans. and i proposed -- when i met with him, i proposed several agenda items that would go to the question of how do you improve the economic life of african-americans? and one of -- >> such as >> one of them i really focused on which i strongly believe in, there's a huge retirement crisis in this country. >> yeah. >> and particularly for low income wage workers. and one of the causes of that retirement crisis is the leakage in 401(k) accounts people that have small dollar 401(k) accounts tend to cash out when they change jobs. >> right. >> whether they cash out, of course, you know, they pay taxes on the cashout and lose the appreciation on the 401(k) account. we have a proposal, and it's something the trump

administration has been supporting from the time i met with him to have the labor department improve a regulation. >> andrew is -- you need to -- he is incredulous you would normalize this president >> i'm not working for trump i'm working -- >> working with him. >> i'm trying to understand. as a businessman, i understand -- the question i was asking you is would you do business with -- would he be your business partner with the context that virtually every u.s. bank in this country decided many years ago that they wanted to have nothing to do with him >> would i do business with trump on a deal -- >> as a business person. would you have to trust the other side and he's going to actually fulfill the other side and that you actually have money tied to each other i'm asking you straight up, would you do a business transaction with this gentleman? >> depends on the deal it depends on the deal if i had control of the deal,

yeah, i'd do business with him >> okay. most of the business deals i do i have control over it so if i told him i wanted him to build me a hotel -- >> right >> and i had the controlling interest in the hotel, they're great hotel builders you know, you take somebody who can do good hotels i'd do business with him but like everything else, i'd be in control >> you can see how people are so worried that this guy is president. >> look, i'm surprised by some of the things that bob is saying >> i know. >> because i think there are two things >> we're in dire straits considering his business and the way he conducts -- >>, no because you -- it's been set up here and very binary situation that you're looking at the economy on one end and saying there are other people in this country who feel or having these what you describe as snowflake feelings and, yet, what you're not commenting on and you haven't commented on is the fact that there are hot emotions given many of the comments, the rhetoric of the president. he is smiling.

you want to comment? how did you feel about charlottesville? the reason why people feel the way they feel -- >> i understand. >> let me answer that. let me answer that when i met with the president-elect at the time and i said, mr. president, do not say to african-americans what do you have to lose under a trump administration i said, mr. president, if you want to speak to african-americans in a way that they will understand you and perhaps even support you, talk about what african-americans have to gain from a trump administration and in that meeting he asked me to come up with some proposals that would address economic concerns of african-americans. and since that time, i've continued to do that and i've had access to anyone in the trump administration i wanted to meet when i want to meet with steve, i met with him when i met with the dtop deputis at the labor department, i'm able to meet with them when i go to republicans, good friend of mine senator tim scott

from south carolina has taken the lead with me on this proposal to put more than $600 million back into the pockets for african-americans by reducing the likelihood of cashout retirement >> what is the solution on the pension -- on the 401(k) issue >> the solution is an electronic record keeping technology that allows you when you move from job a to job b -- >> like an instant rollover. >> you can instant rollover and you're encouraged to the benefits of rolling over your account to your next job >> do you have to opt out of rolling over because to me it's like what so many people do, including what i did when i first started is, you just take whatever is given to you. if you're opted into the 401(k) plan, you end up doing that. it's a lot tougher choice if you have to physically make that decision >> yeah, see, the way they do it, companies don't wasn't to deal with small dollar accounts. you're in a company, you have $2,500 in your 401(k), they

don't want to manage it. you say, look, when you go to your next job, we'll roll it over but if you want to take the, you can just take it and take the big hit. you know what most people? they take the $2500. >> or the $2,000 after the fees. >> and the taxes >> right. >> and so the end result is, listen, hundreds of millions, billions of dollars of leakage for the whole country is going out. a simple regulation, no congressional action required, a simple regulation and labor puts that money back in people's pockets. now, if you -- if president trump and i've been, in fact, i saw him last week down in florida. i saw him at trump golf course talked to him about it and today i'm having conversations with people at the highest level of the trump administration about another thing which i think will help is saving black banks black banks are going out of business, unable to serve the community. >> let's revisit this. but you're on record saying you don't think, even though trump,

you don't think he's a racist. >> no. >> you don't think he's racist. >> i don't think he's racist >> and he wants to help african-americans. does that answer the charlottesville question for you? >> yeah. >> now we're back to the dishonest business person. >> yeah. he wants to help me. he would help you. if a guy tells me, president, corporate head, i dealt with a lot of corporate heads and, you know, they may not have many black friends or whatever. but if i go to them and say look, i got an idea that will help the black community and they say, gee, i'd like to be a part of it. you know, the perfect example for me was john malone i went to john malone with an idea that was strictly aimed at african-americans, had nothing to do with the majority population, black entertainment television january mon john malone put half a million dollars into bet and out of that grew to $4 billion bet company. >> money is not --

it's green, right? money is green >> right it impacted a lot of african-american talent. >> and did you well and built an empire and continue to -- american success story and, you know -- >> yeah. to me, if you can make it work with the idea, you keep emotions out of it, i'm not a social activist or a religious leader i'm a entrepreneur as a entrepreneur, i look for opportunities with people who have a belief -- >> and you're a man that obviously doesn't care if you're going to take a lot of flack i know you get a lot of flack. i don't know it is easier just to go with the flow. >> i've never done that. i've never done that >> i know. >> that's why i come on your show >> that's why you're worth $10 billion. >> bob is here for the rest of the show and we're thankful. >> when we come back, the big business of body slams, wrestlemania 34 will take place this weekend wwe's co-president will join us

to talk about what is driving business and by the way, we're less than 90 minutes away from the number of the month the march jobs report could set today's tone for the markets we have the numbers and the instant reaction coming up right here on squawk stay tuned you're watching cnbc - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you!

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there are the futures now worse innocent last half hour or so now down 256 we were down 400, down 150 and now 255. we have a jobs number coming and a little over an hour from now. and, you know, we'll see what happens as the story on tariffs and are we really going to do $100 billion what is china talking about? any moment we could see a tweet or a comment from someone and throw it all out anyway, let's talk wrestling, right? because we can't figure this out. >> what we do every day. >> yes, wrestling's biggest event of the year, wrestlemania takes place this sunday in new orleans. major wind fall is expected to hit the host city. $100 million of economic impact

generated from this event. wwe stocks has been on a terror. also soaring almost 07% ov70% oe past year. the co-president of the wwe joining us not everyone knows george cena is the most followed active u.s. athlete in social media, 45 million followers. so anyone that doesn't understand, that's a fact right there that shows you the influence of wrestlemania. >> yeah. look, it's john with almost 50 million followers on facebook. we have 850 million across all the social platforms with number one sports network on youtube we have about 20 billion video y views across our digital property it's a global brand. this is the greatest week of the year for us. we will sell out the mercedes benz stadium on sunday night we'll sell out the smoothie king

arena for three nights when we do "raw" and "smackdown. it's a great week to be in new orleans. >> like everything else, you've had to look at the media landscape and the way things are being disrupted and where the money is going to be five years from now, not just a year from now. you transformed wwe to some extent much more digital and you're using everything that all media is dealing with. >> i can't hear him. >> four years ago, you know, we made a big bet on a move to direct to consumer, a big bet on tearing our content to social and digital. so we're on all three platforms. the key for us is to tier the content so you don't see the same wwe video content on all the platforms. we tier it it is different than what you'll see on usa here in the united states and sky in the uk or sony in india so the tiering for us is

absolutely critical to kind of raise, you know, all boats and we have a rising tide. we have four years of record revenues last year we hit $800 million. we said we're going to hit record revenues again. another year of record profitability. so we feel good about our strategy we feel good about the execution and i think the market is taking notice >> george, it's a related topic. espn now out with its own ott product. what is the lesson that you learned in this ott endeavor and to the extent you can speak about it, the customer acquisition cost in terms of capturing that customer and keeping them >> yeah. look, i'll take the last one first. it's a little bit different for us because we tier the content, our cac is fairly minimal. so we're using organic assets to bring people along so if you're a fan of "raw" and

"smackdown" and watching on usa in the united states, we'll sell it we'll show you the value of wwe network and we'll bring awe long so we're a little different than a general entertainment whether it's a netflix or hulu or espn plus that's coming specifically about that, yeah, we're really excited i know i'm a big sports fan. and it looks like espn plus is really targeted to the super fan. not dissimilar to how wwe network is targeted to the super fan of wwe so i'm excited i'll be first day subscriber to espn plus. >> not everyone i don't think really realized. so forbes over the past four years wrestlemania is mentioned with super bowl, olympics and -- is it fifa >> fifa world cup, that's right. >> yeah. >> look, it's -- it's always great when you're in good

company. my mom taught me that when i was a little kid a life lesson. and so every year for the last four years, forbes has put us as one of the ten most value creating sports events in the world. and you mentioned $100 million, we did $180 million last year in orlando and $140 million the last time we were in new orleans. so the $100 million is a bar we hope to get far over this year >> unbelievable. >> it is because i -- i mean, all right we have to go. thank you. we appreciate it. >> have fun. >> we look forward to it

welcome back to "squawk box. you're looking at a live shot of the white house this morning president trump proposing an additional $100 billion in tariffs against china. and the market is watching this morning. with the market futures looking like it will be open in the red, we have details as we try to understand what exactly is on the table and how this negotiation dance, if that's what it is, may result >> the dance began about quarter to 7:00 last night with the latest round from the white house. the president saying he's considering another $100 billion in tariffs on china in

retaliation for their retaliation to his initial proposal for chinese tariffs here's what the president said in the statement "in light of china's unfair retaliation, i have instructed the u.s. trade representative to consider whether $100 billion of additional tariffs would be appropriate under section 301 of thetrade act and if so to identify the products upon which to impose such tariffs." i asked a white house official last night about this and what's the president thinking here and the white house official gave me this statement saying that the president of the united states is sending a message to china about consequences of course, there are consequences as well on the u.s. side and the agriculture states that are going to be impacted by proposed chinese retaliatory tariffs. that's got nebraska republican senator ben sass very frustrated with the president here's what he said last night, "hopefully the president is just blowing off steam again but if he's even half serious, this is nuts." the chinese themselves offering

a reaction the chinese commerce ministry putting out this statement saying "china will fight back until the end at all cost. china will fight firmly against it with new comprehensive actions. so china there clearly threatening additional retaliation if the president imposes new tariffs. so we'll wait and see where all this shakes out during the course of the day to day but you had this development during the course of the week where we saw larry kudlow come out and try to sort of sweet talk the markets explaining that these tariffs haven't gone into effect yet, might not ever go into effect. this is all a negotiation. and then the president playing the role of bad cop here in terms of the market dynamic and launching this new round of proposed tariffs last night, unclear that any of this will go into effect. clearly, the market seems to think that a lot of it is -- a lot of this at this point is just bluster the dow futures down over 200 points in the wake of this news. clearly, a muted reception up on wall street. >> yep all right.

thank you. going to snow down there on saturday too or just here? >> it is going to snow on saturday we're waiting to see if the kids' soccer games get canceled on saturday. >> the cherry blossoms, man. >> today is the peak today is the peak of the cherry blossoms >> i thought it was last week. >> they might freeze >> the festival was last week, right? >> if they freeze, maybe they last longer. it's like a frozen dinner kind of a thing >> april showers, man. it's not snow showers. >> right >> we're getting gypped again with, you know, when open goes by and there is no nice weather, it's almost like september you know >> the one benefit of all this is i have a lot of yard projects i have to do this weekend. if it snows, zroinlt i don't hao them >> you, as in that staff you employ >> that's right. >> who are you kidding >> no man, it's me rake and shovel. >> all right among other stories front and center, some news on trade that does not involve china

canadian prime minister justin trudeau says talks to revise nafta are moving forward in a significant way. trudeau describes the talks between the u.s., mexico and canada as very productive. and then yesterday trump, did you see how great mexico was for disbanning the caravan, complimenting them on -- weird it's like -- i don't know. goodyear tires denying allegation that's earn certain tires used on recreational vehicles are defective the national highway traffic safety administration is looking into whether the tires are prone to failure causing possible loss of vehicle control. goodyear says that continues to believe that there is no safety defect although it adds it is fu fully cooperating. >> and at&t could raise $635 million through the planned ipo of the latin american entertainment unit they expect to price the ipo in the unit known as verio at 19 to

$20 a share. it's a holding company for directv latin america and sky brazil and big news on at&t most recently, jordan spieth -- >> yes >> leading the masters >> it's that bag of his. that at&t logo he had five straight birdies on the back nine. five straight birdies. >> seven under >> tiger is one over is spieth six or seven under >> six he bogeyed 18, the greatest bogey in the history of the tournament tiger is back so big but he needs to do better on 13 and 15 on the par 5s and on eight >> 15 he took 13 shots >> i know that hole. i've been on that hole it's the green is about that deep, yeah, on 15. and sergio -- >> he won last year. >> he didn't have a bad swing. the way he hits it, it's a spin. >> when jordan spieth got there,

his third shot on 15, did you see -- i can't do it but they're called dead hands at the bottom and he didn't put the same spin on it and ended up -- >> tiger has to be two or three under to have any shot today >> yeah. >> you know, he's third fastest clubhead speed at 42 years old with that back with that back >> amazing >> if he can just stay on the fairway. >> he didn't drive it well yesterday. >> they go this way and that way. yeah, problem. >> his putting is good again but spieth, i mean, when he plays like this, remember what happened to him on 12 though a couple years ago anyway, we digress >> we're going to talk technology is a couple of minutes. and in the meantime, take a look at the futures this morning. as we've been showing you, in the red. dow futures down by 233 points below fair value on all of these concerns about what happens between the united states and china with trade s&p 500 futures down by 22 nasdaq off by 73 believe it or not, things were much worse last night. we saw the dow futures down by 400 points we'll beig bk. rhtac nah. not gonna happen.

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save up to 15% when you book early if you'd have told me three years ago... that we'd be downloading in seconds, what used to take... minutes. that guests would compliment our wifi. that we could video conference... and do it like that. (snaps) if you'd have told me that i could afford... a gig-speed. a gig-speed network. it's like 20 times faster than what most people have. i'd of said... i'd of said you're dreaming. dreaming! definitely dreaming. then again, dreaming is how i got this far. now more businesses in more places can afford to dream gig. comcast, building america's largest gig-speed network. welcome back, everybody. facebook's chief operating officer speaking out about facebook's data privacy issues at a today show interview that aired a few minutes ago.

>> here's how our business works. we don't sell data, ever we do not give personal data to advertisers. >> you don't have to pass it because you collect all the information and then you target the ads for the advertisers. >> that's right. >> that's a very good service. that's a privacy protected service. >> you have an opt out button. please don't use my profile data for advertising. >> we have different forms of opt out. we don't have an opt out at the highest level. that would be a paid product >> joining us right now with a look at how vcs are considering privacy concerns in silicon valley is venture partners founding partner and ann, it's great to see you as always thank you nor joining for joiniy >> thank you. >> what do you think about everything that is happening you know the valley inside out you know how the concerns are affecting so many companies. let he is know what you see.

>> certainly facebook is one company here of many that leverages data for the business model. for the most part as we learned over the last few years, customers have not been thinking about what is really happening with their data. or even looking closely at their privacy settings some of the european standards will will have a great impact this coming may which is like tomorrow effectively and those will affect all of the companies around the world i don't think that companies are going to be able to sustain all of their business models based on charging customers not to use data so we'll have a major compromise on the part of the corporations on how much data they use, how much transparency there is in how that data is used and how easy it is for the consumer to see what data is actually being

used >> let's talk about how -- what you just said. the key point for me, i think, is that you don't think these companies will be able to sustain their business models if there's an opt out button. what do you mean they won't be able to continue to grow and see revenue come in as quickly if they don't have access to all of their customers' data? >> i think new businesses will spring up that will have free use but more transparency on the use of the data. more control of the data more transparency in the business model and as cheryl explained who access that's data, how is the data combined with other vendors i pay a premium subscription on linked linkeded in, for example, not to see advertising but to get other services i think if you're paying a premium on the business models, there's an expectation of not just seeing ads but you'll get other services in return >> ann, you know, we've been talking this morning about is there a possibility of a paid

product where you could opt out of any kind of data collection how big a product do you think that is? linked in to me is not necessarily the corollary in that that is a business product for the most part. and this is considered more of a consumer product >> probably a good example is pandora. the music streaming service. and, you know, they started the service with everybody seeing ads. again, i'm a premium user on pandora. i pay not to hear or see ads it will be interesting, i'm starting to hear a few ads on my alexa from amazon whether i'll be charged more not to hear those. so certainly it works. the question is do you end up with $2 billion consumers with that business model? >> and as an investor, how are you kind of looking at these things what did you think about facebook shares before any of this happened and what do you think post the situation

>> facebook is really technically astute company so they can adjust their offerings any way they want. they have the technical chops to build dminld of product. it's a very, very skilled company. you know, i think the scale that they achieved was beyond anything that any of the leadership of any company would have experienced so they have a major recovery that they got to undertake here. i do think all social immediate yashgs you kn -- media, we're in a social world where they're going to use the digital world as well as the good actors. so paying attention to the bad actors has become really important to the companies of scale. >> ann, it's bob johnson here's a question. if i were a congressman sitting in washington and i was concerned about impact of loss of privacy on the behalf of my constituents and consumers, would you suggest there should

be some sort of penalty, mond monetary, loss of company if companies failed to protect some definition of privacy because the argument goes that if whatever a company creates to protect privacy, somebody is going to try to create a code to break it therefore, how do you ever come up with a balance where you can deter a company from having lax privacy rules and at the same time have realistic regulations that go to the issue of what's the damage done and how you calibrate the amount of damage a company should suffer if somebody breaks into their system and takes advantage of privacy? >> well, there are a couple issues you pointed out number one is this is a contiguous problem it's not a one off so once fixed you'll keep fixing it this is true for data breaches

as well. in many regards, this is the same as a data breach that might happen for retailer where my credit card information is stolen and there are penalties and increasing penalties there that's been a conundrum as well. the question is, does regulation -- do regulations and penalties cause companies to invest more in security measures, in operational measures or do all companies have an obligation no matter what so it appears youneed a carrot or a stick are you going to lose your customers? are you going to get beat up by the government this is a real problem in a digital world. we really went in the last ten years from a combination of some digital and bricks and mortar an log to a pure digital world. large enterprises are still undergoing major digital transformations. that means they're going to offer better services and more

interesting things to their consumers. built but it also means they're extremely vulnerable to professional bad actors. >> ann, it's always great to see you. thank you for your time today. >> thank you coming up, more on the trump tariff threat straight ahead plus, jobs in america, we're counting down to the unemployment -- or to the employment report. more and more employment report than an unemployment report. and we have a great lineup for predictions and reactions to the numbers starting at 8:00 a.m. eastern. futures are right now though down 250 points on the dow on the open each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs.

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we have stocks to watch ahead of the opening bell. and treasury secretary stephen mnuchin is joining ut group at 1:00 p.m. eechm he'll be talkint the jobs number. he'll talks tariffs, trade, and the economy. stay tuned for that. it's an exclusive interview. take a look at futures right now. we are in the red. dow off about 267 points over concerns about what president's tariff plan may mean or not.

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>> oh, okay. because we had that ai discussion things are moving so fast. >> we haven't got that far yet. >> did you see the movie, falls in love with a operating system. >> what's her face >> yeah. >> so you think -- you think he knew it was scarlet? >> yeah. >> easy to do. no, but they somehow pull it off. did you see that they pull it off he's in love with a operating system i hate siri. i think she's awful. >> yaanyway, competes with paypal's service and david mcwright is leaving as ceo. the company's anthropology unit, ceo of that unit, two executives from that unit will share ceo responsibilities from here on and then wynn resort shares are higher in premarket trade. and "the new york post" reports that rival casino operator mgm resorts has made a back channel

approach to wynn about a possible deal. >> wow >> between the two >> wow that is some fast moving news when it comes to wynn between steve wynn's departure, how quick that was and now this. >> okay. let's take a -- >> second time they're getting wynn's assets. they bailed him out in the first one. >> yeah. >> beladies and gentlemen yoe a -- blelagio and the one in mississippi. so back to the future. >> there we go >> we have been under pressure today. we flow that a lot of the issues are coming from that tough talk on trade last night. you can see the dow futures right now down by 268 points the weakest levels, they were down by 400. we'll see how they shape up. s&p 500 futures down by 25 the nasdaq down by 82. we have one big piece of news we've been waiting on and that could make an impact on all of this when we come back, jobs in america. we're counting down to the number of the month. our panel is standing by and ready to give us their predictions and reactions to the

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president trump hits back at china, proposing $100 billion in additional tariffs and stocks are in the red another test for the markets. the march jobs report. the big payrolls released minutes away the numbers, the instant market reaction and lightning fast analysis coming up. a special hour of "squawk box" begins right now ♪ i feel it. >> the pressure? >> no, the anticipation. 8:30 and pressure -- i think that eludes to the 270 that we're seeing in the dow down good morning welcome back to "squawk box. there is a good -- an interesting number we're going to get at 8:30 after the last

two that we saw. most people think it's not going to be nearly as good, the employment report as the last two. i think what's the consensus 180? >> 178 >> okay. we are live from the nasdaq market site in times square. no, mark fuhrman is not here this is not cnn. i'm joe kernan along with becky quick and andrew ross sorkin our guest host to morning, robert johnson, founder of b.e.t. and founder of rlj companies. it is jobs friday. we're counting down to the big release at 8:30 a.m. eastern the u.s. economy expected to have added 178,000 nonfarm jobs last month the unemployment rate is lower to 4%. and then we're going to look at wage growth. we'll look at the participation rate and how all that factors in to, you know, what jerome powell, jay powell ends up throwing.

so it's -- you add into that over $100 billion of new tariffs potentially as it bombast? are we really looking into it? the futures are down 275 points which is about 1%. a little over 1% at this point keep that in mind. and treasury yields backed up yesterday and we're over 280 again this morning 281. much more on the jobs report first, the big news of the morning, it is what is moving markets. president trump hitting back at china now proposing additional $100 billion in tariffs and goods. this is in response to reactions earlier this week. we want to get over to kayla, president trump is speaking out about the growing possibility of that trade war in an interview with 77 wabc radio this morning. what is going on >> on the show, the president made the first public comments

sin since his statement yesterday when he said hewants to study an additional $100 billion in tariffs, sort of continuing this tit for tat with kline thchina s been going on since january. he said "i'm not saying there won't be a little pain, but the market has gone up 40% 42%. so we might lose a little bit of it but we're going to have a much stronger country when we're finished." the president in the statement yesterday referenced some of the pain that the agricultural community might feel if retaliation actually came to pass but for context, it's worth noting that his economic adviser larry kudlow on wednesday said he wants to solve this with the least amount of pain but the president seems to acknowledge that if this continues, there could be some sectors of the economy and perhaps even the market that gets hurt a little bit from the actions that would get taken in that situation another headline from this interview, he said it's unlikely he'll attend the white house correspondent's dinner that

happens in a few weeks perhaps that's not unexpected. the headlines on trade will be important for the market to digest where the president is acknowledging that it might not all be picchi keen but that his economic visitor two days ago said he waennts the least amount of pain in this situation. guys >> how should we kind of read into all of this if you're sitting here watching the markets this morning and you're seeing things under pressure there is a lot of swinging back and forth. granted, 400 points is not what it used to be. it is bate of frenetic activity as we head into a weekend. you're looking at down 265 for the dow futures. >> the general mantra in interpreting this white house, becky, has been to act on what the president does and not what he says. because oftentimes those two can be quite divergent but in this situation, what he says and what he is doing seem to echo each other so until may, we could be waiting on some real answers for how this relationship actually plays out. whether it results in some of the retaliatory measures

actually coming into effect or whether it all gets solved behind the scenes. it does seem that the president wants to put on a very tough public face and commit to these tariffs and commit to the public action that he said he will take even as those talks appear to be on going >> before you go, just so we know, joseph over here was thinking about going to the correspondent's dinner >> i was >> but flou thnow that trump is going -- >> i'm out. >> he is officially out? >> he said it's unlikely he'll attend he attended the gridiron dinner which is off camera in early march. that was said to be sort of a dry run. and perhaps he felt like he checked that box and doesn't need to do the dinner. >> i managed joseph's social diary. i want to make sure i could get the calendar >> joe, you don't want to see all your d.c. co-workers in person >> i needed to rsvp in case that he was going to go >> i flow you've been working on

your amtrak select status. this could be a good way to keep that up. >> i can't imagine going if -- i mean it's like throwing a party -- i don't know. it's weird it just becomes weird. >> it supports a lot of scholarships for journalism students and for those who are pursuing -- >> i understand. but normally the president is there. otherwise, it's a bash fest and the guy is not there to defend himself. i don't know i don't think you'll be seeing me there anyway, thanks >> thanks, kayla come to new york visit here >> yeah. >> all right we're counting down to the march jobs report. let's get right to our panel this morning rlj company's found eastern chairman bob johnson is here blackrock chief equity strategist kate moore and jason fuhrman and from washington, we're joined by aei's alex bolland. what you heard from kayla, this trade talk as people are waking up this morning and saying what do i do with there

what would you advise? >> there is a bit of fatigue when it comes to the trade talk. and i will say, you know, we're just about toenlt enter into fi quarter earnings season. you have the interesting cross currents do we have to worry about longer term growth? are we going to see companies engaging in spend if they don't have a lot of clarity and confused about whether or not this is a negotiation or a meaningful shift in policy and, you know, it's fair to say that we've also seen this reflected in fund flows. the earnings story looks good but the policy and tariff uncertainty is really weighing on sentiment >> you bring up a good point we're about to head into earnings season. if you see strong numbers coming from each one of the companies, does that -- is it tough to fight the tape at that point >> it should be. you know, we've never been in a time like this before where we were engaging in this kind of conflict with massive trade partners

so it's difficult to say how much companies will be rewarded for the strong numbers we flow that in the previous quarters that the -- there's been an asymetric response, if you didn't make your sales and earnings numbers, you were really punished. and if you met or slightly exceeded, you were only slightly rewarded so we may see more of that kind of behavior as we go into the season >> jason, just 23 minutes until we get to this big number of the morning. it will be the next thing the markets are keying off what are you expecting for the numbers? >> you know, we've seen job growth of nearly 200,000 jobs a month last month was unusually high some of that was temporary factors like the construction sector i expect those to unwind i think we can see a number like 150,000 this month i think if we see a number like that as long as there is decent wage growth at the same time, we should be perfectly happy with the direction this economy is going. >> bob >> becky, one thing that i think you have to taken into account

is the job market. when luke at african-american unemployment and over 50 years since the bureau of labor statistics has been keeping the numbers, you never had -- two things, african-american unemployment this low, and the spread between unemployment among whites and african-americans narrow that absolutely means that the job market is soliciting employees who have been out of the labor force, some of it just based on, you know, discrimination, some of it based on, you know, changes in education, access and technology changing seen when you look at that, you got to say something is going right. and even if you take into account the trade problem which is the thing i ready was talking to andrew about this is fareed saturday kara had a great article about negotiating a trade deal with china because china is so large. he used the word massive you have 1.3 billion consumers,

that's a hell of a market to try to turn around unless you demand they give you something to balance it and we're in a situation with china where it's like, you are at a football game, you know, i got four downs and you have four downs to make favorite down. china has five there's an imbalance in that how do you right that balance is what we're dealing with. i don't know if it's a trade war fully blown or is it trade negotiations and how it will end? >> the operative term is $1.3 billion it strikes fear in your heart to think you're going to do something wrong and mess up selling all those consumers. so they got us they got us because they can always, you know, sort of threaten something and they've got a lot of heft there that makes us worry, oh, my god, we can't -- and that puts us in a bad position >> yeah. we chose that bad position by doing this unilaterally. you know, united states joined tpp and was doing this together with japan and our other

pacific -- >> you couldn't get congress to join it either >> i'm not sure how that is relevant to president trump. if we were doing this with europe and the wto, doing this with japan, the united states would be much stronger >> it hasn't worked. >> much stronger position. >> how do we put more teeth in that >> i'm not sure this is working now. this doesn't look like a spectacular success to me. >> the idea of going through the wto, we tried. that it hasn't been successful how do you put more teeth into that >> but when the headlines are the united states going up against china while the rest of world is just watching on the sidelines, that's a bad place to be going into a trade dispute like this one. a lot of other countries do have the set of complaints against china. this is an administration that wnlt work together with others to accomplish something for people in america. >> let's get your thoughts on this, alex >> obviously, the trade news is a negative at the moment going forward. i don't think this is a way to grow the economy by slapping

tariffs on the way that we've seen i think that whether this is strategic or not, i think is yet to be determined whether there will be some grand deal that will be worked out but this is clearly something that should be concerning to employers, not just those guys who are directly on the list today but really who is safe you know, so some industries might be maybe it's the hospitals some really domestic type industries that don't care so much about what's happening in our trade patterns but i think that a lot of folks are rightfully concerned about a new uncertainty in public policy net-net when we look at what's happened on the regulatory front and on the tax policy front, i think that we've seen a lot of pro growth policies. this one is not one that i'm favorable what is happening with china. when i think about the jobs market, and the report that we're going to get in a few minutes, well, that's looking backwards a few weeks in time. i'm relatively optimistic that

we're going to get a third strong number in that report when i look at the weekly jobless claims numbers over the last few weeks we're seeing a really tight labor market i think employers at that point we're still trying to add jobs the question is, what do we see going forward after this >> right what let's slip in a commercial we run commercials every time we take a break >> yeah. >> we do it's a business. >> we don't see any of that here we don't see that. all right. we're going to slip in a kplertial brekple commercial break let's lip inslip in a break. less than 20 minutes until the jobs report. check out the futures which are now down 250 almost exactly on the dow. the s&p 500 down 24. nasdaq down. we'll be right back.

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we want to get back to our guest host this morning, founder and chairman bob johnson. one thing we didn't talk to you

about is the tariff issue which is the overhang this morning how do you think about it personally >> well, just as a business person and entrepreneur, i'm basically a free trader just by nature, simply because the theory is if you can sell your goods and services to as many consumers or customers as can you, it's best for your business it's best for -- theoretically, everybody. and if it's a two-way street and everybody is doing it fairly, the whole global economy should be better. the challenge with china and i'm getting this from, you know, understanding that a lot of things that the chinese do that are negative to trade relations with the united states, technology being one -- >> i don't think there is any question that they're not playing fairly the question is how do you approach it on the other end the reason why the futures are down this morning is because of the negotiating tactic, if you will

right? >> right >> yeah. the negotiating tactic is to say i'm going to be tougher on you than anybody else has ever done. and i'm hoping that i'll get relates. so whatever had been done by the past administration hasn't worked, you got to at some point try something new. you have a state run economy and you've gotten triinto the trade organization and global trade organization the way some other countries came in and we gave them the same rules. not recognizing this is a huge massive economy that is in some ways close, you know, one quarter of the u.s. economy. >> and nobody's going to

complain if, you know, 200,000 chinese get kicked out of work who is going to complain >> are we running a risk doing this is there a point you think, let's dial it back or not? >> you know, i would say that question would go to how many american employees do you want to lose or gain? if you lose more than you gain by dealing with china, you have to make it on that -- you have to do the math that way. >> you think all jobs are equal? interestingly enough, there is a decent argument to be made that to the extent there is a loss, it is actually a huge community of the people that president trump earlier said he wanted to support. we're in a democracy you take a district in ohio or

wisconsin and a whole lot of people are getting fired that whole -- look at sharon brown. you know what he's doing he's cheering trump. >> before we let you go, one topic we talked about at this table many times and we have not talked to you about either, facebook if you were mark zuckerberg or cheryl sanldberg, whdberg, what do >> i would do everything to protect that business model. that is one of the greatest business models i've ever seen i say that because it parallels what i have with bet you have free content, free user content and you have advertisers paying for free content. it's almost impossible to lose money on that model. so i would do everything humanly possible short of giving away the store to protect that. and so when i would go up to congress, i would cow tower as much as i could to what they want me to do.

>> what they may want you to do is change the business model, right? so that the targeting is less effective. >> well, like i said, what you don't want to lose is that free content. and if you're a customer and they start fearing they're being used for privacy reason or -- >> you think it doesn't work as a paid product >> no. >> if you want to toggle off your data, that may be the only answer >> once you start making people pay, what is going to creep into their logic is you should pay for what i'm giving you. i'm giving you free content. why don't i get paid if i'm putting out a whole lot of great stuff on it and advertisers and sort of coming in, i'm going to start thinking about you pay me i would never -- i'd do everything in the world to protect that >> okay. great. when we do come back, we're counting down to the big payroll release. the numbers and the instant market reaction coming right up. polk county is one of the counties

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♪ it's the final countdown >> coming up, 178,000, that's the guess or the estimate of how many jobs economists expecting employers to have added in march. we'll get predictions from our panel right after the break. ♪ the final countdown h time fos man to take a bite of turkey.

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good morning

i love that flight welcome back to "squawk box. we're just minutes away now from the march jobs report. let's go around the horn and get predictions from our panel kate moore, let's start with you. >> yeah, i am coming in at 207 >> wow >> yeah. >> slightly higher than consensus. lower than the trend we've seen over the last two months i think we have, you know, strong business confidence we'll continue to see hiring the one question mark for me is what happens in terms of retail since we saw the challenger data suggesting there are significant increase in terms of layoffs >> you already gave yours. >> 150,000 not that i'm rooting against america, i just think of america on a moving average basis. you had 330 last month and 150 this month that is perfectly good >> alex? >> well, i'm taking the high side jason's perspective is reasonable you know, if we're above trend two months in a row maybe the next one will be below i think when i look at the specific data from last month, i see a lot of good news i think we may come in at 260.

the unemployment rate might tick down finally to 4% the only thing that i see really is a drag from last month may be the weather, the snow that, you know, has some people depressed i think. >> more snow coming. >> i think we can manage that. >> sad you heard the lame music so liesman is here is that europe or asia that song >> europe. ♪ >> you had the asia. >> we've been playing this music for 15 years to piss me off. it has no infect effect. i play a different song in my head even when you're talking. 248,000 is my number and i have no way of correcting for weather issues and there were weather issues. so if it's off, i'm blaming the weather. >> and rick santelli where are you? >> 265,000 and i still say that the biggest

issue i'm going to pay attention to is labor force participation rate i think if it moves higher that would be something that would be very good. and as amuch as we want to see lower unemployment, i want to see lower real unemployment which means higher participation rate >> all right that's really an outlier so, rick, i mean with all -- why are people at 150? they figure reversion of the mean or weather related do you think? rick >> my opinion is that most likely it's a feeling in the economy that we're starting to hit our stride after a little bit of a hiccup with regard to some of the fund ales in the first quarter. and i have to be frank with you. i think the president's bold activities over the last 12 hours lead me to think there may be underlying strength here. but that is just between us. >> we talked about that. he may know the number >> i'm sure you would.

if i have a long train ride, i didn't get to hear everything. i can't imagine that topic would go unanswered this morning >> yeah. if he got it last night. >> what was the most -- the most common text and e-mail i had all night, everybody wanted to know. does he get the number does the president get the number i figured out why. >> we're getting it from hampton pierson. the number >> 103,000 up 103,000, march nonfarm payrolls the unemployment rate 4.1% average hourly earnings up .3% up 2.7% over the last 12 months. the headline number below the forecast for 178,000 jobs. we will signet downward revisions for january and february january originally 239,000 plus, revised downward to 176,000. so that's minus 63,000 however, the february blockbuster number originally reported at 313,000 was revised upwards to 326,000

but it's a net loss of 50,000 fewer jobs than reported over the past two months. march private sector job growth up just 102,000 jobs by sectors. manufacturing gained 22,000 new workers. health care up 22,000. professional and business services gaining 33,000 new workers. job losses, retail, down 4,000 and construction down 15,000 the labor force participation rate, 62.9%. the u six, the real unemployment rate came in at 8% that's actually down .2% for the month. average job gains, even with this low headline number for march over the last three months, we're averaging about 202,000 new jobs per month the labor force gained, we had a big pop in the month of february it increased by 806,000. the labor force actual shrank

last month back to you. >> all right thank you hampton pierson. legality's get liesman, come to you for -- we're going to get to everyone kate moore, jason fuhrman and rick santelli and bob johnson is here as well but you're over there muttering. was it weather what's in here >> muttering or speaking great truths, joe? hard to know it's hard to know. bad news/good news >> if you actually heard what i said -- >> i would have if you annunciated. >> i understand. i'm seeing this as a big reversion to the mean and even perhaps with some weather numbers in there this revision up in february is very powerful. on the private sector, you went from 287 to 320. then you did 102 in march. i have no problem saying that is a difference of a couple hundred thousand i'm looking at the negative numbers, construction minus 15,000 after being up 65,000 in

the month of february. there seems to be two things in there. one, the february number was huge anyway. and, two, you could have had a weather and a reversion to the mean here. my main take away from this, i'll cut it short, i do not see a reason to walk away from this report and think there is a meaningful slowing in the jobs >> by the way, the market doesn't react either >> add one very quick thing. what is good for the market here is you do not see the wage pressure in here the 0.3 is on the high side. the idea that some the other numbers here, the work week is unchanged. >> i think the market is worried about this going in. >> worried it was going to be hot. >> on the hot side the other indicators, the reason why my model gives you a 250 number is because all the indicators i use every month were on the hot side i'll say one thing on the trade thing, this is, i think, what

the fed dowill do in this situation is wait and see. i know that's not great news but if you look at how it responded to the fiscal side, they waited and not until the fiscal side was passed did the federal reserve alter the policy in response to the fiscal side i think it will do the same when it comes to trade. >> kate, you blackrock didn't fire a bunch of people and put robots in, did they? >> let me look at the financial services sector. >> we've been busy over at blackrock. here's what i'll say about the market reaction to the jobs number is, i'm not terribly surprised we didn't see a huge amount of movement i still think the trade, the tariffs and protectionism is going to be what we're really focused on and the companies and the companies and the supply chains that could potentially be negatively impacted. i think we'll be watching very closely what happens over weekend in terms of communication from china do they give us a more explicit plan of what they would retaliate with and what kind of additional

support did he offer industries to counter act the tariffs that's what i'm focused on in terms of thinking about market reaction at this point even though the pay rolls numbers were a little less than what we expected >> we want to get to jason rick, you were at the high end of things. what do you think? then we'll get to jason. >> well, i am a little surprised that the nonfarm payroll headline number was so weak. but i do think what i would focus on is the up .3. i agree with steve this isn't lightning rod heat on the prices but the 2.7 year over year isn't bad and .3 is a little hot that keeps the treasuries hardly moving and that makes sense in terms of the equity markets, you know, i'm rather impressed with the way they're dealing with the 103,000 jobs but i do see the notion and looking at the momentum of last month's number i walk away thinking that the number and the tariff nervousness may both be exaggerated on a friday. i wouldn't be surprised to see

equities come out higher than they're currently trading at some point in the next couple of hours. >> and jason, you had, granted, years of solid jobs growth in the obama administration just to stay near that in a full employment situation, that's something. isn't it >> oh, absolutely. absolutely, joe. i mean, thanks for finally getting to the person that came closest on the number. this month yet again thank you. zblfr two basic ideas here one, you want to think about things averaged over time. things fluctuate don't get caught up on any given month. this month is low. we're average ing 200,000 this year we're heading to full employment high job growth to some degree is the symptom of a bad economy. an economy with on overly high unemployment rate and once we get to where we want to go, we'll have lower employment growth that's why i wouldn't be too preoccupied of a jobs number of 100,000 or 250,000

i go straight to the wages most people who want jobs have them quet the question is what types of pay wages did they get it was decent. if you look at the production and nonsupervisory side, throwing out the managers, we continue to have slower wage growth for that. that might be sort of a little closer to what your typical worker is than the other series. but that's where i -- you know, every month you should start with that and do the jobs number after. >> let me throw one more piece of news to thnl pa china just out with new kmenlts on president trump's threat to implement the $100 billion in additional tariffs on china. in a news conference going on in beijing, china's commerce ministry says if this happens, china will immediately have a major response and that the u.s. is only hurting itself with moves like this kate, as you mentioned, this is the thing that keeps weighing again and confusing people this is a negotiation or for real >> our leadership in blackrock

that spent a lot of time in china and talking to a number of policymakers came back with a message that china has a plan. it's detailed plan and we need to take it seriously. i don't think this is great for markets and risk assets despite the really strong fund mentals i just think this takes a little bit of the steam off of the market >> bob >> i think on the jobs report, if you take jason and steve's analysis, you come up with a steady as she go economy which is good for business and good for workers labor force participation stays steady and a little creep in wages. and that's a good sign that something is working and some is deregulation and some is taxes. the other part, from what i read of what the chinese are saying, that's the way i look at that, that's a signal we want to talk. zblfr like open the --

>> like open the table >> i remember the strategic economic dialogue. the u.s. and china have a broad relationship and not to let any single issue because there are military issues and political issues and economic issues. they eclipse the broader relationship and the other thing i remember from all of the -- covering all the summits and talks and negotiations was never embarrass the chinese publicly donald trump as he's done in many other ways, he said that was the convention i have different idea. can you tell me, i mean, and to becky's point which she made all morning and yesterday and the day before is it wasn't working so great before. why wouldn't this one work better you've been in the talks and discussions. why not con front the chinese? >> i've been through three strategic dialogues.

there are three things that worry about the strategy no one wins a negotiation where the end of that negotiation is saying, you know, they won, the other person was destroyed you need a way for everyone to win in a negotiation just the united states going alone not working with our partners and the last thing is i'm not sure what our objective is i'm all for that if our objective is the bilateral trade balance, that's economic nonsense. that's a number that doesn't mean a lot all the ideas which informed the previous negotiations didn't work >> they have come down to 2% of gtp. the chinese currency appreciated

30%. and part of that was the way the united states is doing the diplomacy. i guess i reject the idea. in account fa, we haven't seen anything in the magnitude of this administration of the trade swing we saw in chinese trade balance globally over the previous period. i predict that we won't. >> all right no one has anything else >> we never let alex talk. >> sound like jason anyway go ahead >> i'm with the one that supports markets. >> jason, did you read -- >> joe, have you read the republican kritism >> have you read the article today? >> what i'll say and this goes to your point, i mean, jason deserves credit for hitting the number closest a little meaner version in the jobs report. jason always said when he was at the white house, don't put too

much weight on any one month worth of data. i remain, you know, overall optimistic about where things are headed because of other changes like tax reform and smfr the regulatory changes the question of the hour is, you know, how harmful are these bad ideas on the trade front we're talking about tariffs on 50 or $100 billion that's the wrong direction i don't think we want to get overheated in our concerns about what that means from a macro perspective. we do need to think about what this means in terms of directional for trade more broadly and in that regard i share others' concerns >> all right very good. i want to thank everyone bob will stay with us. jason, okay.

thank you. stick around for just one second we have news just out. the u.s. treasury department announcing sanctions on russian oligarchs and entities and we have more details on that from washington >> yeah. that news just breaking about 12 minutes ago. the u.s. government announcing new sanctions now on 38 different russian individuals and entities here's the breakdown in terms of oligarchs versus companies seven russian oligarch that's have been dez ig naltsignated t morning. 17 russian government officials also have been designated this morning by the u.s. government a couple of big names here on this list to bring to your attention. one is the aluminum magnate, the russian oligarch who is well known in the united states for a number of things including the fact that he had a business

relationship with paul manafort, the trump campaign chairman at one point. the allegations are that he bribed an official and ordered a murder and has links to russian organized crime. the other name here of significance is karil shamarov who married putin's daughter and he holds a large stake in a russian oil and gas company. so some significant designations here by treasury in terms of the new sanctions. but officials briefing reporters on a conference call that just wrapped up a few minutes ago were at pains to say that this is not in response to the british spy poisoning situation. this is not in response to the meddling in the u.s. 2016 election this is a broad response, they say, to a range of russian malicious activities that includes a whole host of behavior they say the british spy poisoning has been dealt with and this is something that they've been doing extensive due diligence on for a long period

of time and this response to a broad range of russian behavior. so not in response to any one specific incident here back to you. >> okay. thank you for that we should also mention a programming note i imagine this will come up in the conversation today at 1:00 p.m. steve ma nunuchin is going to j power lunch. a quick check on the futures >> after all this news that the market digested, jobs number that was weaker than expected, 103,000 versus the 178,000 that had been anticipated after all the trade and tariff talk, after all of what we heard about the sanctions, you're now looking at the dow futures down 182 points believe it or not, that's better than where we were just 15 minutes ago before we got the jobs number. right now, s&p 500 futures down by 16. the nasdaq off by 48 take a look at the ten year. let's see where treasuries are yielding now 2.816% so still above 8% -- still above

2.8% but a little weaker than where we had that yield earlier this morning "sawbo wl rnd quk x"ilbeight back.

welcome back to "squawk box," everybody. we've been watching what's been happening with the markets today. we did get big news a few minutes ago with that jobs report u.s. economy actually added 103,000 jobs for the month of march. economists had been expecting 178,000. this is well below

if you add it up with the big numbers we had seen in february, kind of evens things out and that's what steve liesman and jason fur man and others are saying if you are looking this over a stretch, then it's not necessarily a bad number that's certainly how the market's been reacting to this take a look at what the futures have been doing. you're going to see some big red arrows but these red arrows actually moderated from what we had seen earlier last night and even earlier this morning dow futures indicated down by 205 points that's roughly where we saw things before we got these jobs numbers. you're also looking at the s&p 500 futures down by about 18 points and the nasdaq off by 55 some of the other numbers that we've been digging through, the unemployment rate remains steady at 4.1%. that is a 17-year low. wages were up not by a number that anybody was looking at as being excessively hot or something that would draw the federal reserve to raise rates faster than had been anticipated. so again, looking at numbers for the futures after the jobs report that very much reflect what we've been seeing going in.

weaker than expected headline number but nothing that market is too panicked about. when we come back, jim cramer is going to be joining us live from the new york stock exchange. we'll get his take on that march jobs report. stick around we'll be right on that jobs report stick around [whistling] hello. give me an hour in tanning room 3. cheers! that's confident. but it's not kayak confident. kayak searches hundreds of travel sites to help me plan the best trip. so i'm more than confident. forgot me goggles.

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now let's get down to the new york stocks exchange jim cramer is joining us now you got bodily needs at 3:00 a.m. or you are just up >> i am just up. i am just up i felt that it is important to note that the futures changed dramatically i think there is a lot of people saying this and it is a negotiation style. get use to it. it is a new kind of negotiation style and what confuse us is there is others people coming out playing good cop i have been listening to you, nobody thinks china plays fair this is one way i am not sure is the best way but it is emphatic.

>> jim, can i ask you, is there a catch 22 in all of this if the market and all the rest of us think never mind, it is a negotiation to act does it work for do we need to see panic to be worried? >> when we look at where these tariffs can go, it is going to be machinery and electronics machinery you go against caterpillar and electronics you go against apple my biggest worry and these are worse for boeing, my biggest worry is what they come out with >> jim, the thing that i can't figure out about this, yes, i think we need to accept this sort of different kind of negotiating style, as somebody

investing in the market, you have to take a gamble on whether you think the negotiation style is effective and is it going to work and the end game what it ultimately looks like. that's where i am a little less convinced. >> andrew, let's say it is $150 billion or $200 billion he puts out numbers. $100 billion is hard to find you really have to have a lot of lines of what they're going to do to me, it could have been 150 or 200. that's what he does and we better get used to >> jim, it is bob johnson, is the issue or negotiator? >> i am so enjoyed you this morning. you are just really on your game, man. thank you so much. just on your game. good deal. good to see you. m. thanks ji

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that you are talking about before >> you know lenders who charge you 300% or 400% apr, it takes money out of people's pocket if you can bring financial issue secure of the under writing technology to find those customers and give them access of short term borrowing at reasonable rates, it puts more money in our pockets that's one thing i started to talk about with the trump administration when i first met him. >> why did it disappear? >> on capitalize consumers don't have the financial resources. >> that's your main goal is looking at capital and making sure you put it back for

people's pockets >> to increase their savings and wealth, they are better off economically over their lifetime >> bob, it has been a pleasure having you >> good to see you >> we'll see you all a little bit. >> make sure you join us back here on monday >> i am doing "squawk alley" later. >> "squawk on the street" starts right now. ♪ good friday morning, i am carl quintanilla with jim cramer and david faber at the new york stocks exchange. futures of course are already lower on trade news and the prospect of escalation of a u.s./china trade war stocks are nearly two years. wage