"squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we're live at the nasdaq market site in times square i'm andrew ross sorkin along with joe kernen. kayla tausche is hanging out with us today. >> what a treat to be here >> zuck nation the last two days we will talk about mr. zuckerberg in a bit. u.s. equity futures, the dow looking like it would open up higher after a couple mornings where things were a roller coaster. dow up about 28 points nasdaq 12 points higher. s&p looking to open about 3 points higher.

let's flip the board around. >> you love saying that. >> i was sort of waiting >> i know. >> remember when mr. wolf used to say on cbs, let's go to the videotape. he didn't have to say let's go to the videotape, it was implied. >> was a good segue. got you a little time. >> it does buy you time. >> it benefits from the sorkin fair value >> thank you >> they don't have that other places by the end of the day, the futures mean so much those early ones, you make sure you get that fair value in there. >> we have a bit of a mixed picture in europe.

treasury yields now. ten-year note, looking at 2.784. >> we're watching prices of crude oil, wti hitting the highest level since 2014 yesterday. trading as high as 67.45 per barrel at this hour, 44.77. up about 9% over the past month. big oil companies reaping the benefits of higher oil prices over the last month. marathon, con no crock phillips, hess and oxy up more than 10%. marathon up close to 17% a lot of traders citing the new mideast tensions, the president's more hawkish talk about syria and russia. china promising to fight back if the u.s. steps up trade tariffs. the xchinese commerce minister making those comments overnight. yesterday we got word about the

spat from larry kudlow >> we are been talking about par rifs, maybe n tariffs, maybe no, maybe yes president has been very tough on this he also wants to negotiate, but i can't come up here and say no tariffs. maybe this thing will turn out very well. you know, look it's not this willy-nilly stuff. we've been having meetings before i got here. you've got to look at this as a long-term process. i'm an optimist. you know that. i think what's going to happen is we are going to have negotiations at some point there may be tariffs before, maybe not. we shouldn't panic so far no tariffs implemented. >> kudlow said the president is a free trader. he said china is the one creating barriers in the market. we heard, joe, peter navarro said over the weekend there will be tariffs, investment restrictions, these will happen. so you're seeing the division over what the strategy is and what the outcome should be >> larry is making up for lost time he's been on a lot of tv

has it ban week yit been a weekt >> i'm surprised he owns that many power collars he owns a lot. >> i think that's why the president wants him on tv. he can sell whatever -- >> that's what he's good at. is that called a power collar? >> yeah. the two-tone collar. >> that's the bob kraft -- won him like eight super bowls >> i did not know that i know the reason why they have a white collar on a blue shirt is because people used to have custom made shirts, if you wanted to replace the collar -- they would just take it off and replace it with a white one. that's why it didn't matter what color the shirt was. >> that's all we need, you barely get that tie on if you had to put the collar on first, we would never see you.

and you are in such a good mood. this is it today and tomorrow -- >> i'm going on vacation >> it's at an undisclosed secret -- it's not cancun, hopefully. did you see what's going on in cancun >> what? >> 14 dead in 48 hours >> i did see that. >> i'm not going to cancun >> good. >> you don't have to say where you're going >> it's very far >> far >> all right good you will be in a good mood all day long plus larry fink is here. great interview. >> one plus one equals through i know >> leading on a lot of big issues >> i know. >> maybe you're more excited about larry fink than and drrew. >> just to watch the bromance. to watch them finish each other's sentences. philosophically they're in tune. >> we'll have a very objective interview. >> okay. >> i want you to know that >> i will conduct one of those

some day maybe. time for the squawk planner. on the data front, weekly jobless claims and march import prices at 8:30 a.m. eastern. minneapolis fed president neel kashkari will speak. we'll hear from blackrock at 6:30 larry fink will be joining us. they have a lot of money under management then delta air lines reports around the top of the hour we'll have an exclusive interview with ceo ed bastian at 7:00 it's quiet too quiet. not up or down 400 points. i think because this guy brings stability. j jack ablin is here we will have byron on later

today. he is worried that things are still too complacent >> he was my dad's classmate at college. >> now that's -- that -- >> how about that? >> did your dad have you at a very early age or is byron just old? >> he looks good for his age >> he looks great. great to have him. he's been on the street for so long he's been well respected for so long in terms of his calls are we too complacent? >> no. we were going into 2018. we had investor sentiment at the 98th percentile of its historical range expectations going into this year were exceedingly high >> were the highs already seen in january >> it's possible though i really want to see this earnings season. this is the first earnings

season in over a decade where analyst expectations are rising going into the final days before the earnings season. every other earnings season, everything comes back to earth as they talk to management and people -- insiders start trying to talk them down. this down as is he lnrecently a december, they expect earnings up to 11%. as of last night 20% >> this is supposed to be the earnings season where tax reform was talked about over and over and over again virtues of broet creagrowth crea reform i'm wondering if what we see on the trade front will cancel that out or if it's too soon to see the effects of that. >> we won't see the numbers. we will hear it in the comments. that's where perhaps the risk of q1 could lie

if investors just focus on numbers themselves, happy days are here again we'll see a lot of companies coming up with numbers beating these higher expectations. once the conference calls come through and they talk about woe is me, if these tariffs go through, it's the end of our business as we know it, that could be a different matter as investors digest that information. we'll see. some of this is political posturing. joe, you were talking about ge earlier. here is a company that predicated its businesson how the trends over the last 30 years, where we would have outsourcing. innovation everything was kind of pushing overseas as recently as immelt coming in saying i want half of my earnings to come in from emerging markets

now we have this 180 degree reversal >> we had someone yesterday talking about what happens in syria, trade war in china. russian collusion. he said no, it's the fed every time interest rates go up in the short-term, more benefits from the tax cut get taken away from higher interest costs we may talk about this other stuff, but it's that long period of accommodation or staying where it is. that's over. >> that's it if you believe bernanke's tenure was defined by crisis and yellen defined bay combination, powell likely will be defined by normalization. rates are too low. right now nominal gdp is 4.2, not 2.8.

at some point that has to move back, but i don't think the fed controls the treasury. they don't want to push an inverted yield curve and send that message >> trump just tweeted. >> he's up >> up four hours after cramer. >> talking about the russian investigation and the special counsel, governor jerry brown. >> yeah. all right. you could be in your 20s, and your dad could be in his 50s, byron could be -- so it doesn't necessarily -- just to make byron feel good, because he is a young man, the national treasure, doris day, did you know she's still around? she was in movies. >> i have not thought about doris day recently now i will >> she's 96.

>> you know what her name was? doris marianne capelhoff what was the segway? >> byron weems coming on and he should feel young. >> my brain was in the trump tweet. when you started with that, i -- >> you have to get your brain out of the trump tweet >> him and my dad were in college together >> and he's no spring chicken. yesterday your whole day was thrown off by that smart bomb thing. kelly. >> it was complicated. complicated day for me >> you're here to talk him off the ledge. >> it's a tall order i'll do what i can coming up on "squawk box,"

facebook's ceo mark zuckerberg was grilled in the house yesterday on data privacy, bias, and diversecy in t cydiversity we will talk about the future of the company next tomorrow, it's a day filled with promise and new beginnings, challenges and opportunities. at ameriprise financial, we can't predict what tomorrow will bring. but our comprehensive approach to financial planning can help make sure you're prepared for what's expected and even what's not. and that kind of financial confidence can help you sleep better at night.

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now you can get it, too. welcome to the party. exploring an offer for one unit. that's according to the "wall street journal." the report quoting people familiar with the process of the strategic ongoing review ge's transportation unit could be the next to undergo the transformation with the company considering a public offering or combining it with another firm the question is given where the stock is now, do you say they'll throw everything but the kitchen sink all over again? what do you do do you expect the worse? you can't even think about it.

>> i know you empathize with me on this. >> i do. >> your new yo"new york times" k >> maybe near-term where is back to >> 22. >> i have 800 shares of ge that i can't find >> you have breaking news? >> the president just tweeted about syria. he said i never said when an attack on syria would take place. it could be very soon or not so soon at all. in any event, the united states under my administration has done a great job of riding the region of isis, where is our thank you america. very interesting after the national security council yesterday convened, and the purpose of that was to provide the president options on syria he said previously that he would make a decision within 24 to 48 hours. yesterday said missiles would be coming now said it could be soon or not so soon at all

this is something the markets have been watching futures ticking up a couple points we'll watch that that's certainly an interesting comment in light of what he said yesterday. >> and theresa may's comments which now supposedly she feels more confident that blame can be ascribed to assad. yesterday mattis was not necessarily -- or the defense secretary was not on the same page he said we're trying to figure out for sure who did this. i don't think you send the missiles in before you are sure. >> and the russians overnight said that town was overtaken by the syrian government. that's why it's so hard to verify it was a chemical attack because you didn't have journalists, ngos, independent parties allowed to be in the vicinity to verify that. the russian government said the syrian government had taken back

that town where that attack took place. let's move on to facebook. with two days testifying in front of congress this week, it may have left mark zuckerberg feeling a little like this it's the fake beating he took on the cover of a recent issue of "wired" magazine despite surviving the bruising testimony, facebook is left with larger questions about its power and the data it collected. >> i would like you to answer if or no if you could you will make the commitment to changing all the user default settings to minimize the collection and use of users data i don't think that's hard for you to say yes to, unless i'm missing something. >> congressman, this is more than a one-word answer >> that's disappointing to me.

>> joining me is jesse himpert and ed lee good morning to both of you. jesse, mark zuckerberg got a bit of a to-do list, some homework handed to him by washington. you heard that comment about defaulting the privacy settings back to the most simplest setting. in the senate on tuesday he was asked to rewrite the entire user agreement. i'm curious what you think the company has to do now, now that this testimony and these high-profile hearings are in the rearview >> it's a great question we made a list of 43 things that mark zuckerberg said i'll get back to you on he has to follow up on those but mostly now he needs to restore the trust of his user base and advertisers also regulation is coming. this is his small opportunity to get ahead of that. he was asked by lindsey

graham -- >> are you a monopoly. his point was if i don't like being on here, where else can i go if i don't like a ford truck, i buy chevy. the point is how can you self regulate if there's not enough pressure for you to do the right thing by customers if there's nowhere else for them to flee -- >> then he asked zuckerberg to submit his own suggestions on how to do it >> i don't know if there's enough bipartisan consensus for there to be real legislation in place or rules in place. the ftc might crack down on them harder the gpdr plan that kicks in next month that will be the de facto standard >> we talked about the idea -- and i'm not sure the congressmen and senators understood -- and i think mark did a good job of

steering them away from the real issue, he would often say you have controls, everyone is in line you can turn it on your data is not the data at issue here, because there's a secondary set of data, which is sold to the advertisers, which you are not exposed to you have no idea what your social graph looks like i don't know if mark zuckerberg purposely did it that way. there's the data you're sharing with your friends and more behind door three. >> i think there was a lack of sophistication in a lot of the questions that would lead to more comprehensive reform. >> that's the issue with facebook and it's the issue everywhere that's not just the issue with facebook, it's the issue on the entire internet.

it's on recode, cnbc, wired. >> facebook game a stand-in for a bigger question, which is what do i know about what the internet collected about me and what power i do have to do anything about it. just watching the hearings, it felt like mark was an elaborate help desk support for people who didn't really understand it. >> it was like the ultimate thanksgiving weekend, where people come home, how do you do this again kayla asked what happens next at facebook what do you think happens -- maybe i should ask you >> ask these two >> you're d.c. do we think there's an appetite for meaningful regulation? >> i think there is appetite for meaningful self regulation i don't think mark wants to go through that ever again. he will go back saying there are clear problems around. people don't know what facebook is in a lot of ways.

we need to do more story telling. they haven't been great talking to the press that may help them if they're more open with the press and there's got to be actual better transparency in terms of the user, here's what's happening with your information. how far they go, we don't know but there's incentive to make that more clear. >> before this week, we all collectively decided it was okay to scroll down that quick user box you got on any website and click okay now we decided that not only is that not okay, but to some degree it's the responsibility of the company to help us through that i think we'll see some progress. >> fair or unfair for the photographer to take the picture of his notes and for the notes to go viral? >> it's totally fair it's out in the open >> yeah. you couldn't miss it >> those are the terms

if you're in a public setting, fair game. it's his fault for not covering it up. >> they have a green room their team goes to >> i think tim cook will have a beef with him. you saw that line about apple. >> that was the most interesting part of the notes. we should convene the two of them together. >> to be continued >> thanks to both of you appreciate it. >> what's going on >> my notes. people can take picture of those? >> yeah. >> i got my phone here >> i just took a picture >> you did earnings just out from asset management giant blackrock the company earned $6.70 a share for the first quarter. consensus was 6.39 up about a half percent. revenue was above wall street forecasts, up 27% from a year ago. we'll talk to larry fink at 6:po

a.m. easter -- 6:30 a.m the margin is up everybody said asset management business, long-term the margins have to come down. that's the whole story the margin goes up >> you know why. >> they're robots. >> i don't pay robots anything >> in the short-term maybe, but in the long-term, you would think the margin would come down for everybody. >> right coming up, we'll talk to the man himself, larry fink. and john flannery is speaking last night at cnbc's net-net event in boston. we'll bring you e ghghthhilits of that conversation we'll do that next when "squawk" returns. don't make a first impression... or a lasting impression without it. ♪ ♪

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♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. good morning u.s. equity futures at this hour -- tim speiss will not be here he canceled, now all these people are waiting for him you didn't want to change that any way. let's look at the futures now. up 101 points. why do you think that is because of trump's tweet >> not sure what it is what markets like is certainty >> doesn't take much to move >> that was not adding certainty by saying it could be soon or not so soon. >> he's in a bind.

is it possible he did nothing? no, he would hear all the criticism. the red line that was never crossed by the obama administration when he does something, it will be a tail waging the dog moment. trying to take the attention away from michael cohen. it's tough what does it accomplish? what is the end game for that? are we going to go in and support the anti-assad forces? >> later in the show we have two diplomats who will be here >> same time >> separate times. we will head to boston this morning. john flannery speaking last night at cnbc's net-net event there.

morgan flannery has more on tha that >> ge's ceo talking about the struggling franchise >> we have great franchises. we know we can run them better cash, capital. there's a nucleus of strength and improvement that we see in front of us. i also came in and said we're in -- it's too many things at once there's too many businesses. the world is too complicated to keep them all open throttle at the same time. management bandwidth financial bandwidth. let's nar wrorow the scope. that was the next step and the last thing, my core responsibility is to make sure those businesses flourish in the future for the employees, customers, for investors. and in that context i'm open in any way i can make that happen >> so not exactly offering more details about his long-term version for those core industrial businesses, but not ruling out the possibility of a broader

breakup. this interview comes as investors await for new earning earnings given all the uncertainty around the company and the future of these businesses, the stock is down 25% this year, and down 50% over the last year ge, given all the uncertainty around the company, the businesses are struggling now, >> coming up, larry fink is here he will talk earnings, the markets, trade with china and a lot more he will join us. there he is. >> looking very relaxed. >> relaxed that's the way we like it we'll

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welcome back to "squawk box. big news, blackrock reporting earnings this morning. larry fink, blackrock's chairman and ceo joins us beating on the top and bottom lines. eps of $6.70 a share revenue 3$3.6 billion 16% year over year we were talking the margin has expanded rather than contracted. that's something that the industry over the long-term, at least analysts and investors have worried in your business the margin will compress then we had all this volatility, which i thought last night when i was thinking about this might be difficult for you none of which seems to be true >> well, volatility did change the dimension of the markets big paradigm shift

we went into january ebullient over the tax reform. we all went to davos with incredible enthusiasm. in davos there was a lot of enthusiasm -- >> that was the high sign. >> that was the high sign. so we did see a slowdown in business in february and march from the huge volumes of flows that we saw in january i think there's a myth about people worried about rising interest rates we managed $2 trillion of fixed income over 60% of those assets are liability matched. you don't see that type of big change we also saw big rebalancing out of equities. into fixed income because equities rallied so much people were rebalancing into the model. probably the bigger surprise is we saw huge inflows and huge outflows we had one client who sold a big

pool of money for an m&a transaction. other clients were selling assets for more capex. some clients were selling assets for rising stock repurchases it was a combination of everything, but nevertheless we did see consistent interest. we're seeing more and more interest in global investing >> what was the retail picture like >> 17 million. >> then $35 billion going into i-shares >> 35 i-shares, 17 retail, 3 net positive in institutional. but that masked quite a bit. >> what did that retail number look like a year ago >> same range. i-shares was larger. >> i would have thought the volatility would have -- >> no. we actually had a billion and a

half of net new flows, all tu alternati alternatives, 2 billion in new commitments. across the board >> there's always a fear that the retail money comes into the market right before the bear market begins. with 17 billion in retail inflows, where do you think we are in the cycle and where do you think the risk is? so many americans missed out in the last decade. >> i have been consistent on this show saying 00% in equities always be invested in the marketplace. my chairman letter talks about the long-termism of investing in equities i'm not sure what inning we're in we're late in an economic cycle. it's been extended by the tax reform we may have been in the seventh

or eightth inning, now we're in extra innings, we spend too much time talking about market timing our thrust is focusing on being in the market all the time most of us are not good enough with market timing for chowho stayed in the market after the 2008, 2009 crash, they benefited. those who ran away were harmed by that action at the time you had the greatest fears, that was the time to buy the most the key for investors is staying that the market. that's the big difference between institutional and retail they stay in the market. they're invested all the time. >> you spend a lot of time talking to foreign trade ministers, finance ministers when people talk about a trade war with china, not just on the tariff side, but what do you

hear from the chinese on the other possibilities of what this could mean >> i was in china two weeks ago. i would say the chinese are patient. i think they're willing to have a conversation with the u.s. at the same time they're liberalizing their markets now the governor of the central bank spoke this morning or last night our time on the expansion of the chinese market for financial institutions expanding the limits of how much foreign participation will be. starting in june asset manager also have an opportunity to have 51%. they're making changes maybe not as fast as our administration >> this is something they've been promising for quite a long time >> it's now happening. >> ceos are skeptical of that. you think it will really happen this year? >> it will definitely happen >> how do they read the tweets

>> i wouldn't know >> do they say we're very patient, we understand the way -- >> we're the ones who have been patient. let me ask you this. they know with a wink and a nod among themselves, they know some of their practices could not last forever do they justify that by them -- they're coming from a difference place than we are. they have to do things for their people i understand it's tough to do that but they must know certain things don't fly if you're talking about a completely fair playing ground i understand they're patient, but they know they have to come into the real world some day >> i had dinners in china with mo of the top u.s. ceos. just us alone while we were there. i would tell you the practice of

china were far worse according to them 5, 10 years ago. many of them said the practices of the last two, three years, the practices have totally changed. it's much more open. these are some tech companies, two ceos from the tech side told me that the manner in which they're operating, the manner in which they're supposed to be interacting with the domestic companies have changed they have more opportunity to grow i would tell you they're seeing on the ground level -- i'm not there yet. these tech companies that are there, they say they've seen changes. directly to your question, i think they know they have to negotiate. >> i want to start a quick conversation, and then we'll slip in a break. one question which is this, you have been proactive and public on blackrock's stance on how you're approaching guns, social issues, ovther things.

i'm curious if that has an impact on the positive or negative side and earnings for the last quarter and what it means for your business. >> i think we have more engagement with clients than we have had before. because of the specific gun issue, we did canvas our clients throughout the world about do they want a portfolio composition that filter out firearms we concluded some do most investors do not. we have to remember this is not blackrock's money. we're an adviser our job is to try to help them navigate these complex issues. they're the money owners what we have done after canvassing, we created these other etfs that create these filters, these small cap products unquestionably we were seeing more esg demand world wide

probably the biggest net changes demand in the u.s. has that helped us i would say unquestionably being part of a dialogue, trying to help them navigate these -- >> but the positive to negative calls, e-mails, customers -- how many customers have said i'm not doing business with you guys i don't want you involved in this i'm taking my money and going elsewhere. how many have come to you and said i'm glad you're doing this. i want to do more business with you as a function of it. >> i would say 90/10 in favor of what we are doing. maybe 95/5 >> we have to slip in a quick break. we'll continue this conversation >> we'll talk about something else >> apparently we'll talk about something else we will be back with him in a bit. at the top of the hour, delta air lines set to report and ed bastian will join us in an

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and customize coverage so business owners can focus on business. announcer: to find an agent, visit trustedchoice.com you got facebook, amazon, netflix and google and that is one-third of the weight of the nasdaq these are great companies, but they're not great stocks right now. >> why is it reacting to things like syria and things in capitol hill the most of any sectors. >> any single day you request see them sell off if you see that treasury note fallen. >> the reality is congress doesn't understand how internet advertising works. they can't regulate either >> we are back with the head of the world's largest money manager, larry fink, ceo of black rock 55 billion of influence during a

quarter. so we were just talking off camera so 2 trillion is fixed income. 4.3 trillion equity. just talk, in the past we've had lots of discussions, like everybody has, about how long we stayed easy and globally, i guess, really, since 28 or 29. and you know we thought the ten year would be again a 3% it's still not we don't know if it will get there again. so a couple years ago, this is a sort of episodic these aren't just all of the appearances, they don't stay on their own. then the tension about how low interest rates have been and i got the impression that you thought that maybe central bankers were keeping things too low for too long and that it was going to cause some dislocations, but here we are and market forces did not cause

things, did not cause rates to go up yet. and i don't understand why, i don't know if it's any easier to help savor, even today >> rates are up a little bit obviously in the two year area, they're up close to 2% from the lows of 30, 40 basis points. obviously the ten year has barely budged. savers are being some people calm it financial repression the central banks are still focusing on obviously the quality of these economies and they are very mindful of inflation, inflation up until now has been very, very muted. now it's starting to pick up i do believe we will continue to see the federal reserve on this path >> has it been that interest rates as simple as they're pegged to inflation and inflation has to this day still fought really come back to the

extent people thought it would years ago, is that why rates have stayed so low for so long >> they've stayed low, as we've moved to more other thwnershipo more demand for financial assets this is one of the reasons they have been able grow, but the demand for long dated credit is unbelievable >> certain companies are still short their liable they say most investors are a liability matchch yet many of them, their liabilities are longer than their assets they jump in there were people that thought the feds missed an opportunity two or three years ago to raise rates. in hindsight, do the feds hold off? >> they're fought reallyg they

couple move years, it maketrade the strength of the auction has been inconsistent. >> i'm very worried about where our deficits are going the cbo came out with a $33 billion deficits in ten years. that's up from $25 trillion the last time i saw that so an expansion of our deficit by $8 trillion him i think, joe, you are right. the problem we're going to have is with the pressure of the constant auctions you know i would clearly say to you we may have rates moving faster than the federal reserve wants in the future, if we start saying less participation by foreigners. that's something i worry about when we talk about trade wars, i worry about that other side of it are they going to continue to buy our u.s. treasury?

most people say no way it will never happench there are other ways to affect if you do tit for tat. these should be a part of a narrative and a dialogue we are the largest debtor nation who is dependent on foreign ownership of our debt. japan we have the worse debt of gdp to finance only 60% deficits are financed domestically i don't know what the forecast is, if the cbo is right about how large our deficits will be in the future, we will have more dependency on foreign ownership. >> you are not seeing them a step away, yet in. >> no, you are not it's all noise right now but not -- the arbitrage for 400 to own our debt versus their debt as joe is describing is

better to own their debt than our debt. >> thank you coming up, earnings alert, we will hear from delta's ceo. and edward bastian will be here. see you soon and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites

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a cnbc exclusive, black rock ceo larry fink live on "squawk box" >> volatility changed the dimension i would say of the markets. >> the news makers keep coming taxiing to the "squawk" runway right now, delta ceo ed bastian, another cnbc ahead >> the gold olympian michael phelps jumps into the deep end

with us as the second hour of "squawk box" begins right now. [ music playing [ music playing >> live from the beating heart of business, new york city, this is "squawk box." >> good morning, welcome to "squawk box" right here on cnbc, live at the nasdaq markets in time's square. becky is off take a look at u.s. equities futures at this hour you are looking at some green arrows dow is opening up triple digits higher nasdaq opened about 40 points higher s&p 500 looking to open higher as well about 14 points higher some of us a little on the back, black rock just posting better than expected earnings and revenue. profits were up from a year ago. its ceo larry fink joined us in

the last half hour >> volatility did change the whole dimension i would say of the markets. a big paradigm shift we went into january over the tax reform it was a combination of everything, but nevertheless we did see consistent interests we're seeing more and more interests if global investing. >> and some other corporate news, general electric said to be offering a corporate offer of one unit and hybrid deals of one asset for people familiar with the process of ge's ongoing review the transportation unit could be the next with unto undergo such a transformation. the company considering an ipo or combining it with another firm ge set to unveil a restatement of past earnings >> that will happen tomorrow in the first quarter earnings on april 20th meantime, we have results from delta airlines hitting the tape. phil lebeau joins us in atlanta

with those numbers also the company ceo, phil >> reporter: we'll bring in ed bastian in a second to talk about those numbers. let me give you those number, the first quarter of delta be beating the street 74 cents per share revenue lower than many expecting. two other metrics that will get some attention, pre tax markets coming in as the company guided wall street to expect 6.9% and costs per available seat mile up 3.9% in the first quarter. let's bring in ed bastian, ceo of delta >> tanks >> record revenues >> first of all, thank you for coming down to atlanta. >> reporter: we are happy to be here >> record revenues for dell the up 8% driven interestingly not just on the domestic system but for the first time in several years internationally. our international revenues outpaced our domestic revenues

in terms of growth and our transatlantic most encouraging is up 15% per quarter. it gives us good momentum going into second quarter. >> reporter: second quarter, going into the summer, if not close to record demand will you see as in the past >> we expect the 8% run rate and top line growth to continue into the quarter and the bookings so far look promising >> let's look at the costs per seat, a good part is what's going on with jet fuel it's up 20% in the first quarter for you guys is that head wind starting to worry you at this point? >> it doesn't worry us it's been volatile it's been 25% up on a year over year basis we have to be able to price it in our revenue base thus far, we have been able to do that. i think that will be the wild card for the year. it was bouncing all around in the quarter. it was down at one point

it's been up so we'll see what will happen. >> does it give the industry perhaps more discipline? does it make everybody think maybe twice before they start adding a little too much capacity >> it forces discipline. when you think about fuel at $70 a barrel, you got to think of the long-term implications of the supply you will put into the market historically in our industry, it's been anywhere from 6 to 9 months lag between when the market price for fuel goes up. to the extent we've had a 10% or 15% run up over the last month, people will maybe be a little more cautious with the supply they put out in the summit >> this is the first time in three years you've noticed growth in business >> yes. >> reporter: you have an economy some people say we see things will plateau or start to slow down a bit do you think you continued to gre those business fares >> we do our economic outlook for the year is strong it been strong domestically as

internationally. i know there is concern about china and tariffs and geopolitical head winds, we're not seeing it in our marketplace. last night i had dinner with some of our chinese partners they weren't seeing it there is a resiliency we have created and haven't seen over time, now we need to price for it. >> reporter: i know andrew and the gang have some questions for you, i will send it back to you guys >> ed, thanks for being here in the quarter, you've cut ties with the nra >> good morning. >> good morning, which costs you the jet fuel tax exemption in the state of georgia you said at the time your values are not for sale and that the company was reviewing other politically sensitive relationships. i'm wondering, have you cut ties with other politically sensitive groups what would you say to other companies considering setting up business in georgia like amazon, is it still a good place to do business >> first of all, it was a

company decision we have great confidence in our state and governor diehl we felt it was pressing us to a place we weren't going and we pulled back and you know as i said in my note, we're not for sale and i think georgia is a great place to center business we affirmed in my note we will stay head quartered in georgia this is home and will always be home for delta as far as i'm concerned. >> has it had any impact on your business and when you talked to other leaders, what do you had advise them in taking these positions both in the impact it may have had on the political tax information and also on customers broadly. >> well, you know, it's interesting, in my years in this industry, i've never seen a topic that's delivered as much as this one. i've received tense of thousands of e-mails on both sides of the issue. on the last month on this, i'd

say 75% or more have been positive, a stance that people respect. we make our decision and aren't selling out relative to political interests. i think we've gained a lot of fans >> are there other issues you might take on? i know you were supportive of bringing people, flying them for free or at discount to the march for our lives march in d.c where will we see delta and by the way, where do you see the other airlines or competitors playing in this? >> you'll have to ask the other guys as to what they're doing. we did provide several charters so the kids from parkland could attend the rally we confirmed in my note, we are big believes in the first amendment and having a voice in this process. >> it seems like that's not where i was seeing you are taking a side to some

extent are you fought for sale maybe from the nra side of things. groups supporting the other side the 25% of the e-mails that you are getting that were unfavorable would say you've made a corporate decision that affects them and they don't agree with there are global frups that you are not saying you are not for sale, are you for sale to the liberal groups blocking the anti-the pro gun measures, right? >> i wouldn't read it that way. >> how would you read it >> we were trying to step out and provide a discount >> but if the nra were to say, we're fine with gun control, we're fine with background checks, are you anti-nra at this point because of their policies or could they do things where they became pure pro 2nd amendment but then you'd be more amenable to having a

relationship with the nra tant what specifically about the nra now do you have a problem with >> we've said all we are going to say on the topic. we're not anti-nra, anti-guns. we want to move our corporation from the middle of the debate. >> you got right in the middle of it bay by making it - >> i will ask you a different question, it's about one of your competitors. i know you don't want to take a show i want your view there united obviously has struggled over the past quarter, but there has been a reputation issue and the situation with this dog in the overhead bin dying, obviously, was a problem for them do you think there is a culture problem at united? >> i can't say that. this industry is a tough industry we focus on our business, on our customers. this is an industry where we

will fly 200 million our business is doing great. we've had the best record in terms of operational performance and satisfaction and we will continue to focus our business we will let the competitors do whatever they will do. >> i read ones you had to run the new york marathon because you promised your team once the new york operations became profitable, you would do it when it did, you had to make good on that i'm curious, what promises are you making with your team and what financial metrics are you making internally? >> i made a metrarathon. i swore it off but i will run it a second time. >> key company or just for fun >> this is for charity, i'm raising money for a childhood cancer research fund but our goal this year is to continue to improve our revenue performance. continue to drive better

customer satisfaction and great operations and our brand is in the best place it's been in our history. we will continue to improve upon it >> ed, one last question, coming up on the ten-year anniversary of the merger between delta and northwest. i think the people would have said you will see a level of profitability and success not only for delta but the airlines ten years from now if people would have said that in 2008, it would have been howls of yeah, these people can't see straight what do you see for delta ten years from now, if somebody said look into your crystal ball in terms of what people will see with profitability >> i think what we did in the merger we focused on the improvementes in technology and fleets and ground capital. you know we have now the scale and the efficiency to operate at a level that never could before. you commented earlier this week on the airline quality rating.

delta came in a hair under guidelines, very close second. 2008, we were number 12. we moved from 12 to 2 we will focus on being number one. >> wed bastian, thank you for joining us exclusive ly ly on a when they beat the street. >> stocks will open nicely this morning higher thanks, phil >> coming up, our futures have been adding gains int last hour. we will talk about the day's big drivers. next, stay tuned you are watching "squawk box" on you are watching "squawk box" on cnbctrends, driving specific sectors of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era draws yout.ul populations to mobile banking and e-commerce.

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next guest helping to inspire others to turn off the faucet is u.s. 23 time who's counting gold medalist and the save of the water program, michael phelps. i wonder why i was doing that. i do i do now i get a little cold water and then i turn around and i feel guilty now >> it's crazy, honestly, if you think about if you do brush your teeth, you waste up to 64 gallons, think of it that way. how much water are you supposed to drink if are you wasting 64 glasses, it's too much. i mean it's just u such a precious resource we can all lump together. for me especially with the two kids, being able to use a little stick that tell you when it's time to turn off the water and

off the faucet so it's great for kids >> do you only give your kids a bath once a week >> boomer and i actually will get if together him i'll hop off the bike after a workout he jumps in with me. so it's perfect. it's easy. >> this is a two person question >> yes >> do you put the water on the brush first? then put the toothpaste and then brush then more water or do you -- some people now do a dry. >> i tend to dry i got to get it west and start and obviously turn it off. it's just something that we can do together as a family i think for us that's fun and easy and there are so many small tricks we can work on >> boomers, 2, what strokes can he do now? >> he loves the kicking. he loves the splash.

he doesn't do too many strokes we asked him what you do before you get in the water he started doing the arm slaps >> are you training at all anymore at this point? >> no. >> we were talking ab kids and how it's like. >> you got to be around. >> like for me, honestly, could i? yes, like i truly believe if i wanted to i'm in better shape than i was when i came back and i have no goals for me it's fun being a dad i have been back the last, eight, ten weeks with boomer, it's been awesome. i missed so much of the part >> you are doing stuff with mental health. where does that interest >> it's interesting i've experienced, after going through five olympics and probably

four-to-five different impression spells, you know, for me, it has been a part of my story and my journey and something i have been able overcome i know it's something i have in me and stuff i have to deal with almost every day you can get depressed, anybody can get depressed. >> people think have you so many goals. >> it's huge >> i think coming out of the olympics, i would say 75%, 90% of athletes go through a depression coming out of the games. you are at this ultimate high, you come off of it >> it's almost a learned manic depressive thing you get so many. who wouldn't get manic from performing, sell, that publicity, adulation then it's over >> like what's next? >> i follow you on instagram no,

i was curious how you think about social media and your own personal brand these days? >> i mean for, nicole and i have been through so much publicly and privately and what we put on social media is stuff we want to share. that is our life sure, there are probably comments i skip over or laugh at because they're inappropriate to different them attention what we show is who we are i think that's something that we both very have been excited about. i love them, it's important that i have been able to have throughout my career to be able to give some back to the fans is amazing for me. >> there are concerns about the effect of social media on mental health especially for children >> i think it's going to be an interesting conversation to see

where social media goes, to see what happens it's crazy to see what it's done today. you think snapchat and instagram and kids seeing these, having these is mental health issue, it's not what it's about it shouldn't be that way it's just not necessary. like life is already hard enough and people are trying to make it harder for yourself we keep it very simple. that's how we plan to keep it. >> how many you do have now? the last couple weeks have been nice >> you don't have to set an alarm, do you? >> i'm up every day between 6:00 and 7:00 >> watching "squawk box" >> i have to get my morning

started. boomer and i are up early getting some tips, seeing what you guys are talking about >> you are such a young guy. is there anything. what is in the future? honestly being able to talk about things i'm passionate about. obviously, water has been a huge part of my life. if i can help people understand the importance of contev serving it, speaking out about my mental health struggles understanding. having people understand it's okay to not be okay. hopefully, we can save some lives, save some water and this to me is way bigger than ever winning an olympic medal >> do you know matt damon? >> i don't know if i've met him. he's unbelievably important. >> we can make that happen >> do you you still follow the u.s. team and the olympic movement >> i do. i have a bunch of friends that

are getting ready for the games in tokyo so for me it will be fun being on the other side where i get to watch and cheer them on. >> will you go >> i'd like to i have never been to tokyo, so he'd like to head over there and support them we have a meet actually, well the kids have a meet in arizona this weekly go to. >> can you do the butterfly? >> not well. >> i think it's my core. >> i think it's your hips, you got to keep your putt up >> he's so good at that. how about that >> we can get you a new seat >> me in a speedo? >> thank you, thank you, thank >> thank you, thank you, thank you. a

♪ today is a good day to make a plan for your financial goals and your everyday ones too. pnc can help. we'll be with you every step of the way. let's start today.

good morning, welcome to "squawk box" right here on cnbc, we are

live at the mnasdaq market site just about an hour away, we will look at the weekly jobless plans and jobless import and export prices also they have revised barnes and noble over a 2012 data breach judge reversing a lower court ruling saying the victims have no reason to start with tampering. wal-mart reportedly close to its biggest ever online business acquisition, reports that wal-mart could reach a deal to buy a majority state in a e-commerce flip card it could be up to $12 billion. >> back to the morning we started 50 points on the dow, we have slowly been climbing. the turning point happened when

the president began tweeting about syria. he said a strike on syria could happen soon or not so soon at all. the s&p would open up 13 and the nasdaq would open up 41. so we'll keep an eye on that bitcoin, we seen up about ten percent the trades rather us through today's trades, the chief investor joins us here good to have you set us up for today you have futures that are in the green. there is this complacency that people feel because they think maybe the volatility over the last couple weeks is behind us they don't want to settle just yet. >> i think the setup is actually quite nice the u.s. economy in the second

half is probably going to accelerate, valuations are significantly better than what they were the beginning of the year or at least the end of january and i think that the sentiment that the pining for volatility is kind of satiated by that. so the setup for the equity marks over the next few quarters in our mind is actually fantastic. >> what do you think earnings season will reveal about corporate strengths and risks? >> i this i the earnings season will be good we will see the tax-related benefit coming through the economic growth picture is quit good i think the guidance will be very good as well. >> is that going to be the main driver of the markets? whether it's interest rates, the headline risk coming out of washington or earning strength, that will be the driver of the markets the next several months. >> the strength of the economy are the two pillars on things

will go forward the rest is noise in my mind we will get through the noise, this week or next week >> if the noise is the market. you have to react to it. >> you have to take advantage of that market opportunity. you will not get many the rest of the year. >> we have to leave it there great to see you meanwhile, president trump as we mentioned tweeting this morning. he never said when an attack on syria could take place could be very soon or not so soon at all. in any event, the united states under my administration has done a great job of ridding the region of isis where is our thank you, america? joining us, the former ambassador to syria, an adjunct scholar, richard, ambassador, it's good to have you here good morning what is your read on the syria situation as it stands right now? >> it's a miss it's nothing new in syria.

it's become a playground for major powers, russia, united states, turkey, iran, everybody's got a stake on what's going on in syria >> there are a lot of reporters who would have loved to have been a fly on the wall yesterday that vice president pence led, the purpose was to gather some option, if you had to guess what those options would be, what would you think? >> well, it's going in a range of military options. i hope there will be a presentation about possibility of non-military as well in terms of preps, more intense sanctions on syria, on russia, which we have been having a face down with over the last few days. it's a risky situation no doubt about that.

the area is complex and we've got to move carefully. >> the idea that the syrian government has now overtaken what we're seeing as an isolated pocket held by rebels. is that a significant interview? >> it is, its been an embarrassment to damascus that needed a major obsession over the capital into the last few years and that evacuation started on sunday, i believe within 24 hours after the reports were coming in of chemical attacks and that's an achievement for the regime but this force is being moved out to another site in syria, up in north. it's an achievement to russians who were mediating for the last

several months to get some movement out of that area. >> do you think it is a meaningful change in stance that the president has been willing to call out russia by involvement in syria if so, what does that do >> well, it raises the temperature. it can lead to misjudgments. it's already a very tense seen as i was saying. and to be citing putin personally, blaming russia, welsh russia's made clear it's going to see this regime in the mass cuss through the crisis it's not there it is said to preserve the assad leadership but it's going to keep the company towing it's always had a bad word for the united states based on some previous actions we have been engaged in, in libya and elsewhere.

>> the president said a couple weeks ago, he wanted to get out of syria do you think that was a challenge to assad >> i don't know what it was to assad. it may have made the rebels more nervous that we were going to disappear. we got those 2,000 troops up in the northeast area isis isn't dead. the islamic state efforts are there. they could be revitalized by the departure of the americans we got a job to do on the ground in that part of the country with the courage and stabilizing of the economy. >> well, it's been nice to have a perspective of someone who knows the country so well. we appreciate your time this morning. ambassador richard mur faye. >> coming up, investing in the facebook fiasco.

we will talk to venture capitalists about the challenges that the tech sector things and for investors to be looking at the next surge stay tuned you are watching "squawk box" on cnbc can i get some help. watch his head. ♪ i'm so happy.. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you. something we all think about as we head into retirement. it's why brighthouse financial is committed to help protect what you've earned and ensure it lasts. introducing shield annuities,

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welcome back to "squawk box" futures are up triple digits this morning down yet, up the day before. indicated up 132 on the dow. 11 and change on the s&p and almost 38 on the nasdaq. oil prices, because of you know the potential tumult are up, gasoline prices are up, too. >> what am i going to do. >> >> you should have bought a little smart car you didn't even do a hybrid, did you? >> no, i didn't. i thought about it >> you didn't buy american, either >> that's not true made in america. >> okay. >> if it makes you feel better >> wall street and silicon

valley, mark zuckerberg testifying before congress we will share highlights from yesterday's hearing. >> yes or not, will you commit to changing false settings >> congressman, this is a complex issue that i think deserves more than a one-word answer >> well, again, that's disappointing to me. >> are you willing to change your business model in the interest of protecting individual privacy >> congress woman, we have made and continue to make changes >> are you willing to change your business model in the interest of protecting individual privacy >> congress woman, i'm not sure what that means. >> who do you think owns an individual's presence online who owns their virtual you is it you or is it them? >> congress woman, i believe everyone owns their own content online zplu entered into a consent agreement with the ftc which carries no penalty for

facebook, is that correct? >> congress woman, i don't remember if we have a financial penalty. >> are you the ceo, you entered into a consent decree and you don't remember. >> people share data. >> the primary way, but the other way that facebook gathers data is you buy data from data brokers outside of the platform, correct? >> congress woman, we just announced two weeks ago that we were going to stop in directing with data brokers him people flack those ads for us, we will take them down now. >> now, by the end of the day? >> if people flack them for us, we will look at them as quickly as we can. >> you have knowledge now, obviously. you have knowledge >> in the aftermath of mark zuckerberg's hearing on the hymn, tech investors looking for the biggest opportunities and challenges, joining us on set to try to physical out what to do about all this the managing director for venture partners, the portfolio of previous investments include twitter, tumbler and others.

what do you think? what's the comment here out of all this, what's going to happen in terms of the regulation then we will get into what the implication is >> the odds are there won't be a lot of incremental regulation, not with the montage, i think overall zuckerberg did really well he did the most important thing, he took responsibility which so many don't do i think the challenge here, if i can guess where it will go, particularly around content platforms will be better disclosure around things you will do. at the end of the day, we all opt into things. we generally don't read into disclosure >> it was hinted at throughout the two hearings over the past two days what the eu is doing around data privacy. how much of a head wind do you think those rules are going to be in the business models of these companies? >> it's a significant head wind. we have probably 30 to 35

companies in our portfolio who have significant operations in europe as it relates to data localization it's not only it's a significant investment the rules are not worded in a way that's totally clear how to comply the financial penalties. >> when you map out the growth or lack of growth you think will be a function of this, or how do you think advertising dollars are going to flow as a function of the eu rules. i'm taking i don't know if it's a worse case scenario, i'm trying to think if the eu rules were applied to the u.s., what would happen to these businesses >> i think that what would happen to these businesses is they would have a much harder time dealing with it right now in the u.s., if i don't like something on who people google about me, i don't really have the ability to do anything about it. in europe, that's not the case google is running just fine in europe, it doesn't work like that it's a significant investment.

>> it's a significant additional cost >> a significant additional cost, what it will cost long term is hard to say. i can tell you, though, it's a topic of almost every board meeting i go to with businesses in europe. >> the topic most want to talk is about this concept decree from the federal trade commission and facebook's supposed breach of this do you think there will be a financial penalty? is that the last we will hear about nit. >> it's not the last they chose to focus on something and they focused on. that they had 41 billion revenue, my guess is any consent ftc decrees tend not to be very large. the financial implications if there was one i don't think will be significant in contrast, violations of gdpr are much, much more expensive. >> is there a winner in all of this one of the question they ask is about the monopoly question, who

does facebook compete with is there somebody you think can emerge in a much better way as a function on facebook >> a lot of startups are thinking about trying to challenge facebook or other social platforms in a way that don't really collect personally datafiable in anyway or monetize it differently my only view the value of facebook, the odds that somebody is going to join a different network and nobody else is honest, there is not a lot of response to which you are posting. it's challenging it's much more likely facebook will evolve this model and potentially do what other people have done and says, look, we'll go to a premium modem. >> you think will you see that from facebook? >> if you listen to all of zuckerberg's testimony, not just the montage that we saw, he hinted at it he didn't say it, he hinted at it cheryl sandberg said it might be a way. >> what do you think of a fair price point? >> it's a fair question.

i think there is math that says -- >> each person is worth $40 apparently >> exactly >> by the way, that would be if every single one of the, what, 2 billion users. right. the u.s. user has to be worth $200 and the user, you know. >> their second large mark was india. my guess is it's worth one-tenth to one-20th of a use user will be my guess is they're not going to be able to charge $200 for it if they went down this path there is lots of other things they can do, if you think of messenger and other products they're offering you think of how gaming companies upon advertise with individual units within an application. so you want to send somebody a birthday, you want to do something, those are all ways you can potentially mark it. those are way, by the way, nothing suggests i know they are going to do that but it will be a way to deal with the regulatory challenges >> thank you good to see you. coming up on "squawk box," we are talking trade. the pork industry is in a panic

right now. seema mody joins us from a locker. >> reporter: thank you we are one of the largest meat packing facilities in new york, where over 100,000 pounds of meat is processed and packaged every day. it's a business that could be devastated by a u.s.-china trade war. coming up a look obunen siss and your wallet when "squawk box" returns. anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest.

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welcome back the pork industry is in a panic. whether you are a farmer, meat slaughterer, producer or packer. the u.s. floor product is a big day for the industry one of the largest meat packing facilities in new york has the park side of the story good morning seema. >> reporter: good morning, kayla, yes, farmers and american pork producers are growing concerned on pork, which doesn't export directly to coin say they will likely feel the pain as well, after all china is the largest and therefore a huge mark for u.s. producers. moser says if a tariff is imposed, we would see an over supply in the market which would bring prices down for u.s.

consumers. but it would be at the expense of the exporters who would likely eat the added costs. >> one way or another if you are in the ad economy, when tariffs come down, whether you sell scenery or beef or whether you are the bank responsible for holding the note on a farmer's mortgage, everyone is affected >> it would also increase the need for wire houses to store the extra inventory of pork. but one of the real advantages of selling to china is it would create a big diamanned of the pork, pick and skin, which are seeing a delicacy for chinese consumers that don't have similar appeal in the u.s. this is called the pig byproduct market it's worth over a billion dollars. it's been seen as a growth market for u.s. producers. guys, if you take this mark away, it could further pressure

the business of u.s. pork producers, back to you >> you are not talking about the omnibus bill, did you get a tick to d.c. to talk about pork i was totally confused you are talking, there isn't any pork in it you had to go there since swaug pork-free now kayla tells me, did you get confused at all or did you know what they were talking about? >> reporter: no, i knew what they were talking about. listen the meat packing industry has been a big supplier of pork for a long period of time especially in lamb, beef, chicken and therefore u.s.-china trade relations, the bicker story of a consumer china is >> actually it is because it play noose the whole soy bean tariffs, farmers, everything else, it's all about pork. >> i hope it's not a vegetarian.

>> thankfully i'm not. it's not ap advertising being in a pork storage you know where it takes you? >> it comes from china anyway, thank you, let's take a look at stocks to watch this morning. the semi conductor is one thing. >> that's when they get. you see what stock i will talk about? my favorite. >> our favorite. >> yeah. bed bath & beyond. look at this, what's tumbling? the home goods did beat on the top and quarter lines. they gave a full-year forecast it was below wall street estimates. shares of drug maker shire >> you got to buy some more stuff there.

>> yeah. >> we feed 20% off coupons coming in the mail >> mainly we browse. >> there is a new thing called a gravity blanket. >> we talked about this before >> is it possible to just browse a pet store? >> it gets you >> we are both walking out like this, into the islander. >> shire >> yes >> shares are higher this morning, japan's takeda pharmaceutical is shopping for a loan for bids. coming up, making sense of the rks,maet we will talk to him when "squawk" returns in just a minute - learning from him is gr. when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers.

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exclusive, black rock ceo larry fink on putting money to work. >> i have been consistent on this show saying you should be 100% in equities in the market place. >> blackstone byron wien's call, he's our special guest this hour new this morning, president trump tweets about the timing of a potential syria attack

what he said and the reaction in the oil mark coming up. plus, congressman marsha blackburn among the lawmakers that grilled the facebook ceo. >> so you subjectively set your algorithms to prioritize or sensor speech? >> congress woman, we don't think of what we're doing as sensoring speech >> what does she still want to know the final hour of "squawk box" begins right now. [ music playing >> announcer: live from the most powerful city in world, new york this is "squawk box. [ music playing >> good morning, welcome back to "squawk box" here on cnbc live from the nasdaq market site in time's square. i'm joe kernon becky is off this week the futures are indicated to show a strong opening this morning at least 100 points, 136

points right now the s&p indicated 12 nasdaq up 38 points. we're looking at crude prices, which has been in an upswing for geopolitical reasons, you have to think then the ten year, which has once again caused a little bit of confusion we thought we'd by above where we are people are talking 263 versus 2%, or 295, which comes first. earnings season gets you caught up on this morning arc big report black rock among them earning $6.07 per share the estimate was $6.39. well abovech revenue came in above wall street fasts up almost 27% from a year ago we spoke to black rock ceo larry fink a year earlier. >> volatility did change the whole dimension of i would say of the markets

a big paradigm shift we went into january very ebulent over the fax reform. so we did see a slowdown in business in february, in march from the huge volumes of flows in january. >> shares of black rock up about 1.5% this morning at $533. delta bet estimates by a penny with adjusted quarterly profits of 74 cents per share. the airlines costs per available seat model rose 3.9% impacted by a 20% jump in fuel expenses. here's what delta ceo ed bastian told us in the last hour >> it's been volatile. certainly over time, it's been up about 25% up on a year over year basis we have to be able to price it in our revenue base. thus far, we have been able to do that. but i think that will be the wild card for the year, in terms of where fuel prices go. it was bouncing all around in

the quarter. actually it was down one point it's been up, so we will see what will happen. >> the shares of delta are up, nonetheless, despite that shortfall of 2.5% or $1.30 this morning. >>ly tell you what else is happening this hour. iced tea long blockchain is being delisted from the nasdaq because it has not been able to keep it's market value above the $35 million requirement the company once known as long island iced tea changed its name to long blockchain after they announced they would pivot would they continue to sell tea. blockchain is, of course the technology that under bid bitcoin. by the way, check out the price of bitcoin right now you could have bought it in the 60s there. >> i don't know, you think it's going back up 20,000 tom wein will tell you, he's on his way.

>> she a frequent guest on the show >> are you bitcoin box >> we haven't talked to kayla. >> the you know the bitcoin surge happened after i moved to walk it's not beyond the regulatory, it hasn't been on my radar i do look at it every once in a while, kind of you now out of curiosity. >> we have another little tit for tat little battle. it's almost like it's own trade war. netflix pulling all of its movies from the cannes film festival after a rule change that banned net from competition, because it refuses to release them in cinemas netflix chief officer told "variety" magazine that it's pointless to show the films at chance if it won't be considered for awards there he said there would be netflix execties at the festival, though looking to acquire films so there will still be a net present.

meanwhile, facebook's mark zuckerberg racking up ten hours of testimony over the last two days yesterday taking questions from 55 members of the house's energy and commerce committee our julia boorstin was there she joins us now it was a marathon couple days for you and mark zuckerberg. >> reporter: it definitely was the house was more contentious yesterday with a number of members holding his feet to the fire demanding a yes or no answer sometimes, which he wasn't willing to give here's pages that captured the attention over facebook's data policies, in particular. >> yes or no, will you commit to changing all the user default settings >> congressman, this is a complex issue that i think deserves more than a one-word answer. >> again, that's disappointing to me. >> a are you willing to change your business model in the interest of protecting individual privacy >> congress coming i'm not sure what that means. >> what do you think owns an

individual's presence online in who owns their virtual you, is it you or sit he em? >> congress woman, i believe that everyone owns their own content online. >> you entered into a consent decree with the ftc which kaers no financial penalty for facebook is that correct? >> congress woman, i don't remember if we had a financial penalty. >> are you the ceo of the company. you entered into a consent decree and you don't remember? >> people flack those ads for us with le take them down now. >> now, by the end of the day? >> if people flack them for us, we will look at them as quickly as we can. >> despite all that back and forth, investors responded favorably to his testimony him shares locking in about 5.5% over the gains of the past two days and we see stocks moving higher pre market. one question now, it's truly looming over facebook and the internet giants, what kind of regulation we might see down the

line zuckerberg says he expects regulation if it's done right he is in the against it. >> he says he is in the against all regulation now it's up ocongress. let's see what they came up with you heard her on that montage, congress woman maar sha blackburn. >> good morning. >> did you feel he expressed a certain level of culpability in your view? >> i think mark zuckerberg came to us a bit unprepared for the questions he received yesterday. as you saw, there were very poignant questions from each side and we would have liked and appreciated a more complete answer he has ten days to respond in writing to some of those questions submitted for further comment. >> how many questions and what were those questions that you have for the company to follow up on? >> one of the things that we would like more clarity on is who he thinks owns you and your virtual presence online?

and he's wanted to dodge that question this should be the property and the ownership of the individual and that's why i have the browser act, which is the privacy bill, which was much discussed yesterday. it's bipartisan in the house and we will probably move forward with that bill very quickly. people want to see some privacy statutes in place. one regulator for the entire internet ecosystem and what we would rather do is put the statutes in place. we know zuckerberg hinted towards regulation, but bear in mind, sometimes federal regulation can be a barrier to injury to new interests and new services and we are going to be mind of that. >> realistically, congressman, what is the appetite for broad regulation of data privacy in a mid-term election year, you know, republican majority congress that has not been favoring heavy regulations you have been moving towards a

deregulatory agenda, what really is the appetite here >> the appetite is giving consumers protection on the internet one of my constituents summed it up very well in a meeting last week they said health care, banking, securities, brokers, credit unions, all have privacy requirements that they have to meet every single day to protect consumers in both the physical and the virtual space. the only people that have a zero privacy requirement, zero, are the edge providers the social media and, therefore, they are not providing those protections to consumers for their data this is a right to privacy and as you heard from either side, people expect that within they go online that they are going to have some protections and the browser act would give them the opportunity to opt in as opposed to having to just expose their

data, because they're using a service. >> congressman, there was a lot of talk in the house hearing yesterday about the ftc's consent decree and facebook's possible breach of that i know ftc is still waiting on some confirmations. but would you loo tobacco see the ftc take action? they are investigating it right now. what should the penalty for facebook be? did it break the law in your view >> we will let the ftc render their decision on this the ftc comes under our jurisdiction what we do know is that the penalty that could be imposed is $40,000 per day per violation. so we'll see what the penalty is going to be. what we do know is there are complaints against the privacy policies already also complaints against the way facebook has manipulated their algorithms and other social media also. facebook is not the only offender, when it comes to privacy an censorship. >> that is why you will see this

hearing as just the tip of the iceberg. people have an expectation of privacy. and they want that right to be recognized, whether they're in the physical or the virtual space. >> you called at this time tip of the iceberg what other companies are on your radar? >> oh my goodness. when it comes to block and censorship you've got youtube, twitter. you have search prioritization that has been done by google we're looking at these algorithms as a subcommittee, i've already done one hearing only a go rhythms. i have a hearing on organization next week. i will do a second hearing only a go rhythms because when you look at how they have been manipulating these algorithms, we are concerned about what that is doing to conservative speech i brought up the example of diamond and silk yesterday they're another group that have

contacted us, giving us information about how traffic has been blocked or people couldn't liketary page or they had videos that were blocked and park zuckerbemark zuckerberg me they have 15,000 content managers or viewers. he mentioned that of course the silicon valley is a liberal place. now those individuals are bringing their point of view to work and -- >> congress woman, i'm sorry, before we got to let you go. before that, kayla is going back to her day job in d.c. is it scalise, mccarthy, i know there is no race yet, you know there is no race yet, but what do you think who would you back >> i think that people are backing to keep the majority in the house and then they're going to turn absolutely it's going to happen >> it is going to happen in. >> i think it's going to happen.

i will tell you why. the tax cuts are working well the rolling off of regulation is working well people are very pleased with the economic policies of president donald trump >> okay. all right. so we don't know anything. >> very diplomatic congress woman. we appreciate your time. >> absolutely, thank you >> congress woman marsha blackburn. coming up when we return, food prices touching the highest levels since december 2014, after president trump's warning to russia on syria on twitter. the president is up this morning and tweeted about the timing of a potential attack on syria. what it all means on the oil market and the economy byron wien will join us on the set and get his call on the marks. >> that will happen at 8:30 eastn tierme stay tuned you are watching "squawk" right here on c this bc. roundup for lawns has arrived to put unwelcome lawn weeds to rest.

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

doesn't mix with water >> it's still a dark color actually the report has a couple bright spots and after we saw crude oil spiking and hitting a three-year high, prices are taking a little of a pause today. it's still focusing on geopolitical tension this latest report, though, really supportive. so opec reported a slight drop in production month on month, now pumping under 32 million barrels a day. this is important. it comes on the heels of comment from the saudi energy minister saying they are happy with the market and the goal is not to let a glut hit again with respect to dual countries on the watch list, saudi companies dropped, and venezuela pumping under 1.5 million barrels a day. iran slightly higher not alarming what do investors need to watch? the headlines out of washington, president trump's comments about syria certainly going to be on the radar and also will tensions

between the saudis and the rebels in yemen flare up as well that was in focus yesterday. when events occur, they involve the middle east. markets get nervous, prices move quickly as we saw yesterday. today we are trading over $66 a barrel and pulling back a little bit, guys. >> thank you for that. president trump considering his options in syria, tweeting that missiles fired, syria will be coming nice and new and smart and then this morning, tweeting never said when an attack on syria would take place could be very soon or not soon at all, in any event, the united nations and the administration has done a great job of ridding the region of isis, where is our thank you, america joining us now, making ours professor of international affairs at harbor university and former security adviser in iraq, on iraq and afghanistan under president george w. bush does he deserve a thank you? by the way, also author.

got to get this windsfall, how it up ends global politics and strengthens american power there is the intro for you does the president deserve a thank you? >> reporter: well, certainly it's true that isis, the presence of isis and it strength in the region has greatly diminished i would say if there are going to be thank yous, there will be thank yous to multiple people and presidents, including president obama and president trump, but i think history suggests that it might, we might want to wait to ask for thank yous before the job is done and i would point out that the job of exterminating, quelling extremism in this part of the world requires a lot more than military action and president bush's, sorry, president trump's decision to put a hold on reconstruction in syria just a couple weeks ago actually suggests we're moving in the wrong direction. >> so what would you be doing right now? >> when it comes to syria, in

particular >> yes >> i would be supportive i'd be supportive of a punitive strike if all the intelligence plays out and determines that chemical weapons attack on sunday is attributable to the regime, which i think there is a lot of suggestion that's the case i think we see the unraveling of the norm against chemical weapons used we see the poisoning of a former spy in britain, which was a nerve agent. the multiple uses of chemical weapons in syria i think this is a real international concern. more broadly, i would keep our presence there and i would keep a commitment to reconstruction aid because, fact, that itself the only way that we can keep extremism from flaring up again is to help build a different kind of future now, that doesn't mean nation building but it certainly means finding partners in the region and helping them create a new future >> megan, a year ago when the u.s. struck syria, ted it was

sending a message to the assad regime that such chemical attacks would fought be tolerated. with the benefit ofsight, what effect did that strike have? >> well, i this i that strike was broadly welcome for sending that message but in the year that's passed, it didn't -- it wasn't a precursor to a more aggressive vaj in image in syria assad doesn't seem to be deterred from further actions, but to do so in a way that doesn't invite further escalation, particularly with russia >> that i think is one of the big concerns and the reasons for the bump up in the oil price that your previous presenter mentioned. >> do we have a clear idea as a, you know, as a western country here, on what 23 to leaders like assad? i don't know, we had an experience with this type of thing, inserting ourselves into

this situation i don't know if you've noticed, megan, a lot on the right are really hesitant to get involved here and i understand that countries can't stand by when capital weapons are used but there is all kind of atrocities, whether you die from a chemical weapon or die from a bomb or i don't know a bullet or whatever it is, is this the time the united states and other countries absolutely need to do something in even if they're not going to change the regime, even if assad stays on it it's hard for me to understand exactly what dictates our action here >> sure. well, that's a reasonable concern and certainly i think there is a strong argument that there are many places around the world, where you can make the case for u.s. action let me make the case here, just in the sense of saying, imagine what the implications would be if no action is taken, particularly after president trump has been an forward leaning as he has been on his

tweets i would simply say that particularly in the wake of the use of nerve agents in britain, that there would be a sense that this kind of weaponry can be used with impunity it would i would say erase any questions around that. and that poses a level of risk i think higher than the use of conventional force, although, of course, as you say, a death is a death. this is a different kind and keep in mind, although the media tended to report about the potential or the attempted assassination of these spies in britain, as a murder attack, it really was a nerve agent's attack and that's exposed dozens of britains >> very good we appreciate it thank you. >> thank you >> sure. >> thank you we'll be right back on the other side of the break.

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>> you have fax, google, these are great companies, they aren't great stocks right now. >> why is it reacting right now? the most of any sectors. >> any given day you can see them sell off. if you see that treasury falling. >> there is this notion facebook can't regulate itself. the reality is congress doesn't understand u understand how intimate advertising works they can't regulate either >> coming up, breaking economic news a live report from the cme trading pit. you got to stay tuned for this we'll be right back.

welcome back to "squawk box. yes, breaking news time, 8:30 eastern. initial claims 233 thousand down 9,000 from an unrevised 242, continuedings claims, in arears one week 1.781 million. look at the import price on month over month, we're looking for a number to grow just over

zero we ended up unchanged. last month we lost the tenth to .3. we take off petroleum. it's x petroleum that's half we are expecting also one-tenth up .4 let's take a bigger view, year over year, year over year 3.6. ier over year, now that's the export price, excuse me, import price year over year, the export price is 3.4 month over month up .3 so nothing too hot here, especially the year over year, year over year on import prices is a little less than we are looking for. sequentially both these numbers are higher than our last look. that's probably the most important thing. oh my god the dollar index is up a percent. we're ten-ier note yields, any guesses? yes, a whisker under 2.8

joe, back to you. >> okay. rick, thank you. rick, steve leishman is here that's what the prompter says. >> that's good >> i'm going to talk about the economy. first of all, jobless claims good they have been low, they speak to a job market nearly anything under 250 is terrific, under 300 is still pretty doorn good import prices are interesting. not much in the month-to-month change the year over year at 3.6. the question is, joe, you have a zen of what will happen with trade. some of the trade tariffs threaten to bleed over into inflation into the u.s. cpi. right now, 3.6% year over year, so a little bit of juice in the inflation numbers from that. folks the federal reserve said yesterday in its minutes, it's ignoring the slow down in gdp

growth morgan stanley saying you should, too. here's their commentary, morgan stanley saying downward seasonal bias still existed expectations have locked in for a q2 rebound the fed is looking through first quarter weakness we suggest clients do as well the problem with first quarter growth being lower, despite the government adjusting for seasonality is a problem we first brought to you three years ago, almost three years to the date right now we found it's been the case for 30 years the government's embarked on a program to fix it. it looks like it's still hanging around here's the cnbc wrap it up date. it's an aggregate of the median attracting forecasts on the street we were running at 2% after having done 2.9% in the fourth quarter. you see the rebound the street is looking for a strong 3.6% tax cuts may have poached some

spending forwarded to the fourth quarter. hurricane spending, also, morgan and others think those factors go away and lead to a health yesry bound, joe, in growth. >> it seems like lot of good things, byron is worried >> he's worried. he's now byron wien, vice chairman of wealth solutions at blackstone he's been watching marks and sentiment for a long time. you were pretty bullish for the last i'd say 18 months >> i'm still bullish >> you are >> complacency >> too much complacency. i think we will test the february lows. i think the year will be good. i believe with steve we will have 3% growth pretty much for the year earnings will be good. interest rates are going up, not too much inflation is going to stay the same and earnings will be terrific >> you don't - >> you don't hate the tax cuts

>> no. >> i think maybe, or do you think there is a day of reckoning, if we played things forward a little bit in terms of deficits or it's all good in. >> the deficit is a problem. and it's a problem in two ways one, it's probably going to go up 200 to 300 billion this year. nobody knows, there is a lot of hope the additional growth will result in higher taxes so we will be issuing more bonds. we will be doing that at a time when the big buyers of bonds, the federal reserve, japan and china, are going to finally be buying fewer bonds, so there will be fewer buyers out there for more bonds, you would think, at least where i went to school the price will go up >> you are worried that every gift is being bought as usual, which shows a complacency. you said you will be higher year after year so you need to tell me i am

buying the dips. >> if i am right, we test the lows >> how much, it won't get to 20%, to a bear market? >> no. >> so we got to 12 so it can get to 15 or 16 and that would finally shake the police exhibitcy out of the market >> right you got to have people calling their brokers saying, get me out, i don't want to lose all my money. >> byron, do you think the geopolitical risk is appropriate in the market? you have a potential summit between trump and kim jong-un a potential strike on syria and a withdraw from the iran deal? >> kayla, i think that the mark s assumes that everything that could go bad won't >> that the iran deal will be negotiated, modified, and nafta will be done, modified, that kim jong-un and donald trump will get along famously >> isn't a part of it such, all these things have a binary sense to them, that it's almost impossible to price them n

>> it's impossible to price them in but if you take them on on the panoply, you have to worry, it's unlikely everything is going to go right and the mark is pricing them as if they're all going to go right >> some of those things if they go wrong, it's the ends of the world and that's a rare occurrence. >> only one. >> that hasn't happened yet. >> it can only happen once, right? >> you have to time it very carefully. >> you have to time it very carefully. >> kim jong-un has too much to lose >> he does, right? >> he has too much to lose he would be wiped off the face of the map we would be hurt, if he struck us or japan. >> now i'm worried about putin huh? >> i'm worried about putin he has a shirt off, running around with horses he has to respond if we do something, his macho we have two somewhat macho types that can get into it

unless putin has something on trump, which many hope from certain sectors. you don't worry about that >> look, i worry about all these things what i'm saying is the market isn't worried about any of these things the market is going up unto itself. >> what about inflation? i was looking at the ten year hovering around 280. everybody thought it was about to take off. here it was the 3% everyone expected almost everyone has been wrong i will got notes that people said we called it. anyway the difference between the two year and ten year continues to collapse. it seems there is some police exhibit complacency, would you say >> the average hourly earnings going from 2.5 to 2.9. everyone got concerned about rising interest rates. it's bad for the market. right. so rates went up for a little bit. they went to 2.90. now they're back at 2.80

it looks like nobody is worried about inflation. part of it is related to what larry fink said earlier today on this program, there are a lot of people out there who want to buy bonds and that's what's keeping rates low. >> people want to buy our bonds. wouldn't it make sense to sell it to them >> well, i this i rates are going up >> where are they going to in. >> they're going over 3. i definitely think the ten year is going over 3. >> one of the things that larry touched on, though, is also this idea that -- and he sort of dismissed it towards the ends, said, you i donknow, could the chinese stop buying our treasury is that a mix you throw into your mix >> i mentioned that before the chinese and the japanese are two of the biggest buyers and holders of u.s. bonds. i don't think they'll stop buying bonds you know, that's not going to happen, if they just reduced their purchase of bonds at the same time we're issuing more,

that will have an impact on rates. >> yeah. were you watching, you probably weren't watching smr just on the radio. >> there have been times in the past. >> we work best that way >> thanks. so you got euro and the eu and everybody was keyed off the german economy >> right >> you had these other commission overheating >> they should have had higher rates. they were tethered to these rates in germany they had all kind of problems. right now our rates seem to be low, not reflecting our own good septntimen sentimentals we are still tethered. >> you know the difference between u.s. and the bunda, we are much higher. >> if they come over here, i don't want to boy a ten-year bond for 270 or 280. i don't want that. >> why don't you want that

>> it's not enough i'll make more anywhere else i would never buy that. >> where would you make more >> from the stockmarket. >> in a rich-freeway >> joe, what if i had money? for a while people were giving people a thousand and getting 900 back it's crazy >> because it was the risk-free rate >> i'm still young, i can take risc >> the unwarm front things you haven't introduced in the conversation is the dollar maybe you get to 280 that's a lot more you get on the german bond. if you lose money in the currency, i don't know >> suddenly we're global and if you tell me our rates are based on our economic sentimentals, i'm okay they're not. >> the economy is based on the world's fundamentals sorry, joe, there is no wall around the country >> no countries is more global than it used to be >> it's a good thing >> are you on facebook, byron?

>> no. >> me neither. we're together the world is changing and i don't like it >> get off my lawn >> get off my lawn >> are you putting leaded gasoline in your car, joe? bought that's been outlawed? >> i don't have a flip phone although, i like those things. >> we bought the to go >> thank you, byron, when we come back, you probably had your calendar market. i bet you do, tax day, it's not the 15th it's the 17th, tracking how people are already trying to gain the new system for next year rob. what kind of tips do you have? >> andrew, it's being called the mass conversion. this is when tax timeers turn themselves into llcs to get a lower tax rate we will see which states are seeing the fastest growth and the federal government is trying to stop it all coming right up you know what they say about the early bird...

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>> these are great companies, they're not great stocks right now. >> why is it reacting to syria the most out of any sectors? >> any given day you can see them fall off if you see that treasury note fallen >> there is this notion facebook can't regulate itself. the reality is congress doesn't understand how internet advertising works. they can't regulate either. making headlines in executive suite transition at home builder lennar. ceo stewart miller is moving to the role of executive chairman rick beckwith takes the ceo job. it is slightly green up about a third of 1%. andrew >> okay the new tax law creating incentives for taxpayers to shift their incomes to llcs and partnerships to get lower tax rates. ing is manuchin says they won't be able to gain, but states from

new jersey may say otherwise tell us more about the tax turmoil. >> yes or let the games begin this was a bill that was supposed to make sings i thing simpler. it's made thing more complicated. some are calling at this time mass conversion. this is individuals looking to become llcs and partnerships transforming into corporations to pay the much lower tax rates. i went and got data where taxpayers had the most to gain, new york, new jersey, california, connecticut. and get data on llcs and c-corpss the gains are dramatic in march last year a 15% jump, much bigger tan previous years or growth rates. connecticut c corps were up 15% in january california saw 12% increase in c corps and 10% in llcs. we don't know if it's because of a stronger economy or things are

good or because of taxes state officials tell me a large numbers of llcs and partnerships are converting to c corporation. >> that is a big tax move the counsel is saying they've seen many clients convert before march 15th that was the deadline to get the tax treatment for the full year the tax law has lots of guard rails and caps on pass through income the details are unclear since the treasury and the office of management and bucket are engaged in a turf battle over who gets to write the new rules. accountants are asking the irs for clarification on dozens of issues, but they haven't gotten any yet. >> i want to put you on the spot and go for it. have you done this >> no. >> he's already a conglomerate why would he convert to an llc >> you know, he's into it. >> are you in the early stages are you? does this make sense >> there is nothing for me to do because it's done. >> because i already had one of

these before so there is nothing -- >> you already could you consult with me on whether -- exactly is it something i should be doing? >> with my agencies or anything else >> i can't >> what do you have to have to himing through the llc. >> >> it's capped at 15,000 for a couple doctors, lawyers, accountants are not allowed according to rules to the this. what they are doing is if are you a doctor, you can split off part of your practice let's say to real estate or the medical arm from whatever products you might sell and that secondary product, some people have parking, real estate, that can become the llc, so can you actually split yourself into multiple functions and have one function of that >> look you were a reit. >> exactly i wish i was a reit. >> not a reit. you split in the different

>> not really. >> in 1986, we had this huge shift unexpected from people filing on the corporate side suddenly filing as individuals >> that drove up the inequality. because suddenly we had all these people that had been companies shifting now we're seeing for the first time since '86 the reverse of. that i just think a bill written so quickly, as kayla well covered, that we just don't know the unintended consequences yet and we're starting to see that >> i have a kayla question, mrs. d.c. i know there has been lots of lobbying going on still around parts of the tax policies, do we think there will be significant changes over the next let's say 12 months? >> i think it depends on what happens in the mid-terms i mean democrats have now walked back this initial desire where they said that one of their main policy priorities, if there was a blue wave would be to repeal the tax bill, they're not hiding the fact that they like parts of it you are talking corporations lobbying >> there is corporations, individuals, all sorts of little

pieces >> there is a 2.0, which a lot of people, particularly accountants expected they would pass, because there is so much lack of clarity and giant loopholes and questions, there will be a part 2 of this in april of march that will clear it up. they have talked about only insofar as extending the individual side, which are now temporary to make that permanent. but the larger issues, i haven't heard much about 2.0 have you heard, i mean it seems like midterms coming out >> next week whether it's just simple messaging or actual meat on the bone. it remains to be seen. >> all right >> thank you, sir. >> nice to see you >> appreciate it >> we'll return. jim cramer, he may be taking a nap. he was up at, like, 2:00 he will join us live from the new york stock exchange. someone roast him as we have the countdown of the opening bell on lltrt. the futures are solidly in the black. we'll be right back.

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let's get down to the new york stock exchange. jim cramer joins us now. basically you thought zuckerberg did great. you've been a big facebook bull for a wrong time, but you think right now you think maybe there

is some possibility, a spector of more regulation to just keep that in mind in the future >> yeah. i just think if there's any more cambridge analyticas out there you will have a lot of people say, okay, look, i don't know what they're really doing, but they are a tool for somebody else and this whole notion of what they do, whether they're a media company or whether they're a pipe, people struggle with that on the hill that's want positive for zuckerberg people say you did great, and i say that, too, when you're on capitol hill they want to do something. they tend to not do one and done i think it's important that facebook find anything else that's wrong not just try, but find. >> the other night on "mad money," you made an illusion to the touring test, didn't you that was so funny. >> that wasn't -- that wasn't mean, was it >> you're the only one who got that i mean, i put that in that --

>> cute! >> that many people would recognize. >> that zuckerberg could not -- you're not sure he could pass the test in other words, he's so computerlike that he may not be able to show that he's not artificial intelligence. >> exactly right when i put it in i thought people will remember this or they'll google it or think it's a giant insult >> imitation -- >> a tree falling in the woods except now thank you. >> god bless him, but he is a little bit computerlike, and i saw some pictures next to data from "star trek". >> that was last night that's who he is >> you're very positive and thought he did great. >> yeah. there's nothing they can do right now. i sure wish that the board would have got enactive and appointed some outside guy to take a look to make it so that they had a little more immunity, but right now it's okay. >> all right, jim.

we'll see you in a couple of minutes for more inscrutable comments and they're worth it if you put your time in later on cnbc, don't miss the owner of the las vegas golden knights, bill foley. he will talk business, the business of the ice as the playoffs are coming up that's on "power lunch" at 2:40 mstern time itay be ending, maybe not. i don't follow it that closely one second. barely enough time for this man to take a bite of turkey. but for cyber criminals it's plenty of time to launch thousands of attacks. luckily security analysts and watson are on his side. spotting threats faster and protecting his data with the most securely encrypted main frame in the world.

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they're in the playoffs and the first year that they started i sort of knew -- >> very quick deal to tell you about before we end the show we work buying chinese rival naked hub. i knew you would appreciate that they rented it out to individuals and small companies. they do wear clothing, though. we have 10,000 customers they're behind the firm 1 million customers by the end of 2021 >> you don't want your employers -- >> a very special thank you to kayla for hanging out with us. >> good luck have fun >> make sure you join us tomorrow "squawk on the street" begins right now. ♪ ♪ ♪ good thursday morning. welcome to "squawk on the street." i'm carl quintanilla and david

faber. >> the president dials back on syria, and europe is green despite some disappointing industrial production nuer