it's the bitcoin guy we're happy he's here. it's friday the 13th love friday the 13th "squawk box" begins now. ♪ live from the most powerful city in the world, new york, this is "squawk box. >> is this your doing again? good morning welcome to "squawk box" on this friday the 13th. i'm melissa lee along with joe kernen let's check in on the s&p and the nasdaq poised for their best week in five weeks looking for a positive open across the board s&p opening up by 6 points. in asia, a mixed bag of economic data export s plunged in china, but

imports grew more than expected. it's the first trade deficit since february of last year. the hang seng and shanghai were down slightly. the knee dnikkei rose by a half percent. the dax is higher by almost 0. 8%. the only lose tler r there is ts 100. the ten-year yield at 2.827% the 2s at 2.344% president trump tweeting last night that he would be willing to rejoin the tpp deal if the terms were right he said would only join tpp if the deal were substantially better than the deal offered to president obama. we already have bilateral deals with 6 of the 11 nations in that tpp, and we are working to make

a deal with the biggest of those nations, japan who has hit us hard on trade for years. president trump told me the basical basically same thing in davos. >> are you opening the door tpp? >> we would only do tpp if it was a substantially better deal. the way it was structured was terrible if we did a substantially better deal i would do tpp. >> we conjectured at the time, because the specter of getting tougher on china was already broached we said this would be a way, you know, theoretically to stick it to china or to start i don't know if it happened in january, does the "journal" -- did that one out? >> do they still have to credit you, joe

>> yeah. >> rupert murdoch would never -- >> scoops have a shelf life. >> do they rupert with fox, if it's on fox -- look in the post. the post -- the "new york post" will talk about interviews we do and not mention cnbc >> it's a breach of protocol >> like the "new york post" cares about that what's even more frustrating jerry baker, awesome guy, he was in davos he knows full well that that was said he didn't exert any oversight. doesn't he do the front page of the "journal"? >> he does >> it's not about me it's about tpp >> the story today is that the president has actually directed some officials to check this out. it's not just a response to a grilling he received in january. >> that's more specific, i guess. but we knew this was in the works. >> thanks to you, yes. >> the great thing is, trump

said it himself, it came out of his mouth. with the "journal," if it's cnbc, eh, i don't know trump said it himself. they couldn't figure that out that maybe this was -- any way the president asked larry kudlow and robert lighthizer to look at whether or not a better deal could be negotiated. >> what's interesting is the response from the japanese finance minister saying we'll see if they really mean it because the president has said things before, and then he could change his mind. so there's skepticism about this whole process. >> or you can look at the provisions of tpp and say which of these would be deal breakers. and there's probably several of them >> people criticize trump for

getting out of the tpp, when they know full well obama couldn't do it either with a democratic congress. maybe with republicans on board it could happen. what about bernie sanders and others running against it. we have a better chance of it happening this time. that's the other thing the comey book is out. he didn't prosecute hillary. as a result, we got a flawed president in his words he's a flawed president. how about hillary? she would have been an unflawed president, i guess, in comey's -- right i think of hillary, i think of unflawed sorry. don't you? >> no comment. let's get more -- >> you needed a none of the above. >> eamon javers will bail us out here he's in washington >> he can't bail us out.

>> you're looking to me for that i'm no help. >> you don't want a flawed candidate in there >> joe gave you all the headlines and all the news, let me recap it for you. >> the republican senator from nebraska was in the meeting with the president yesterday, and he came out -- this was a meeting with agriculture state lawmakers, and ben sass came out and told everybody that the president ordered robert lighthizer and larry kudlow to go back and look at tpp. that was a surprise and it was met with reception from those ag state lawmakers in the room this was really well received ben sass went out of his way to go out and tell us all about what the president had done. as you mentioned, joe, here's a clip you might to the have seen before the president was warming to tpp as early as january.

here's what he said back then. >> are you opening up the door to reopening tpp >> we would only do tpp if it was a substantially better deal. the way it was structured was terrible if we did a substantially better deal, i would be open to tpp >> there are some people inside the white house who don't believe this is real he was only blowing smoke to an audience that was more receptive to this. and ultimately the types of changes that would need to be made for the president to sign on a revamped deal would be nearly impossible to renegoti e renegotiate. so a lot of people are skeptical that this is actually real we'll see where we go. lighthizer and kudlow have been

ordered to do this that's what the president is thinking about in terms of policy in terms of politics, it's the comey book. the fired former fbi director's book released yesterday coming off embargo. a lot of news organizations popping headlines on it. this first excerpt gives you the tone of what comey is saying about the president of the united states. here's comey on the president saying the president is unethical and untethered to the truth and institutional value. the president is untethered to the truth, unethical, ego driven and john kelly called comey the day he was fired to commiserate with him kelly said he did not want to work for dishonorable people who would treat me in such a manner.

i urged kelly not to quit because the country needed principled people around this president. so comey saying kelly was saying that there are dishonorable people in the white house, presumably saying the president is dishonorable. watch that sound bite. john kelly has been on thin ice now that he's the president's chief of staff we'll see whether this tips the balance and seals his fate as perhaps the outgoing chief of staff. we'll see how that shakes out. they're saying comey is a liar, so maybe they'll say at the white house he's lying about this >> they used lying ted already lying comey. moron you can't call him that was the demise of -- >> it's been used recently >> that was the demise of tillerson. forrest gump has been used by an anonymous -- >> yes >> i will say this, though, hell

hath no fury comey, he's 6'8", i don't know, system of his tweets look small. are they saving the best -- is he saving the best -- do we have everything stephanopoulos got out of him or is the book -- >> the embargo is lifted on the book >> i'm not blown over by this yet. i thought he had really spicy notes that we were going to see and that would show russia -- this is not that much. >> a lot of this and what's been reported so far are comey's feelings about the president, and his feelings are not -- >> trump is not as tall as i thought. his ha his hands are average. >> a lot of this stuff, it seems like comey -- the line about hands being small and the hair

not his, it seems like comey trolling the president and trying to provoke a reaction you wonder if comey was talking to john kelly last year when he was fired and said i need you to stay there, general kelly, you're an honorable man, we need honorable men in the white house, if that's the case, why is he putting an anecdote in the book this year that says people around the president were dishonorable >> he wasn't chief of staff when he said it either. he was homeland security secretary. >> comey knows the president will respond negatively to an anecdote like that why did he put it in the book if he thought it was important for kelly to stay close to the president. >> loretta lynch and comey are at each other.

>> apparently she came in, according to comey, came in the room, gave him a hug, embraced him, and then told him on the way out i want you to look sad, because i told everybody i would chew you out he said what a world >> i'm back to the flawed individual thing it's been pointed out, we didn't elect a pope i'm just going back and think being previous presidents. i won't mention names. i don't know nobody's perfect i'm not perfect. you're not perfect you know that. i pointed that out -- so ben sass should have known about davos, too i know they have cable in nebraska >> i don't think he watched your interview. >> they have buffett there, they watch him with becky they have cable. >> sophisticated state >> annoying. covered a lot of ground there. >> that's what we do

>> are you going to stay around? >> i'll stick around i'll do the weather, whatever you need >> weather is going to be nice i'm shocked. >> 80 in d.c. today. >> it does seem unseasonably warm today let's not get him mad. you thank him, too >> thank you, eamon javers stocks to watch this morning, paul jacobs is assembling a group of buyers to take qualcomm private. one potential investor is chipmaker a.r.m. shares of qualcomm are higher on that news. shares of broadcom are also higher they plan to buy back up to $12 billion of stock the london stock exchange naming david sha rchwimmer its w ceo. he will take the helm august 1st. >> wait. wait what >> david schwimmer will be the

head of the lse. that's david schwimmer, but not the one taking over the london stock exchange >> doesn't look anything like that folicly challenge ed senior management at goldman. something in the water >> hiring bias >> must be when you sit down for an interview no santoli, forget it >> you two, no way >> try morgan stanley, mike. you're not welcomed here yahoo! japan announcing it will buy a minority stake in bitarg the stake is reportedly worth 18 to $28 million. it comes a week after monax, a japanese brokerage firm -- are they japanese? >> yeah. >> have they always been >> yeah. >> that's an old company

>> i think you're thinking of the gold company it's like -- >> all these confusing names this morning >> announcing plans to buy coincheck for $34 million. bitcoin is rallying again this morning building on yesterday's gains. rising 22% in the last week. if it's rising 22% to get back to 8,000, went down to 6,000 at one point. >> it did. 5,900 in february. >> joining us now on crude, matt smith, director of commodities research at clipper data and brian kelly, ceo of bkcm and a "fast money" contributor let's talk bitcoin >> let's do it >> you have guys saying 100,000, guys saying zero it makes for a market. >> we're early stage tech.

after the last couplemonths talking to folks, i think it's early, game changing, but there's massive volatility >> is that right of this is because of a short squeeze, part of it is people trying to cover for the tax liabilities they have >> yes this is for real, you think. >> i think this is for real. >> if we cannot hold those gains, those two premises may be proven wrong >> we'll know after april 17 th if we can hold these gains we'll know how much of that tax selling impacted if you use tom lee's work, we probably have about 500 to 6$600 million come off the market for tax purposes we have had that since december. so we should be there. looks like we bottomed here. there's a change in sentiment around it. i think this is the real thing

>> what does it say you can have an asset that goes down 60% on what just happened, maybe it's taxes, maybe something else if it's the internet in the '80s, what's the stuff of the internet in the '80s that you would have owned equivalent of what you own in bitcoin >> it's cisco. >> but they had cash flows >> you're talking about routers, internet protocols this is an open-sourced software you can't think of it as a company. people quote market cap and say all that this is not a stock or a company. it's open source -- it's similar in the tech cycle. >> it should respond to sentiment. >> a sentiment for the markets >> when it was 11,000, 12,000.

>> when we had a decent market -- >> i mean for bitcoin itself when taxi drivers want to buy bitcoin -- >> you don't want to buy it. >> no offense to taxi or uber drivers. >> or lyft any of those drivers >> when it gets that mainstreamed -- >> we have articles from barclays calling it a virus, saying it will never hit a high again. that's when i want to buy any asset. at 20,000 when people are saying this thing could hit 100,000, take some off the table. >> theranos, they say it will never go up again. don't buy that >> that appeared to be a fraud >> that was fraud. >> that's different. >> you said when no one wants it and says it will be zero forever, that's when to buy it in this case don't >> i said that because you're a smart guy. i figured you had some -- >> i just happened to see they're trying to hang on.

i would figure oil will always be valuable. it's gotten more valuable in the last month how much more valuable do you think it will get is the news about syria and the middle east, is that in the price now >> it's getting baked in what we're seeing now, we're at a three-year high here pushing on in wti 67 the challenge is we've been in the range of 60 to 66 for the last few months. now we're stepping up into the new range, pushing through resistance that's being driven by geopolitical tension not necessarily just with syria, but other pockets from venezuela to colombia, to libya, nigeria, other areas in the middle east as well. so that's working in the mix as well as the fundamentals, too, in terms of that opec production cut deal >> anyone notice that the u.s. automakers switched to full-on suvs that's all they want to make i can't imagine demand ever goes

down >> we'll have the fuel economy continuing to improve. >> scott pruitt is getting rid of some of those standards plus we'll sell to china because of the tariffs going down. >> in terms of the u.s., suvs accounted 234for 40% of shares,w that gas prices are lower, it's about 60% of those sales the u.s. demand is likely to just tick higher by one or two percent, growth elsewhere in the world, emerging markets is strong >> is everybody back in the game now? everybody is turning things back on at 67, aren't they? >> they were before. the interesting thing is we're in a backward dated market in terms of the forward curve so the near-end price is much higher than the back end so calendar year for 2019 is

at $60 so those shale producers can hedge at $60 they'll keep ramping up that production i saw melissa perk up when you said backwardation >> i love all markets. >> all of them >> yes >> so let's say that nothing happens in the middle east, is there enough supply and demand that keeps us at 65? >> there's a premium, right? there's a syria premium in oil >> it's impossible to say how much it is >> we have global growth, china, everything is percolating. aren't just the core fundamen l fundamentals bullish >> i would say so. china could crimp demand the iea put out a monthly report today that highlighted that as a

risk to downward growth. >> sorry we did bitcoin and oil >> i can do both >> hell of a coach, too. >> thank you very much coming up, subprime loans are back with a new name and soaring demand that story after this break. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

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that's more speed than at&t's comparable bundle, for less. call today. ♪ subprime mortgages are making a comeback with a new name and a soaring demand. subprime has been branded non-prime and is being marketed to borrowers with less than perfect credit demand has exceeded expectations and so has demand from big investo investors. for more go to cnbc.com. >> well, have you ever bought a pre-owned car? does that work for you >> pre-owned >> used. >> euphemism

>> you're a print guy. >> yeah. >> pre-owned i hear that all the time also the body shop and the service center that autonation has. it's called something. it's a great name. it's not a body shop >> not just knocking out the dents. >> i can't remember. performance center or something. google drafting ethical principles for government work to calm worried employees. this is in response to internal objections to google's partnership with the pentagon. google is working to develop ai that will analyze and interpret drone videos more than 3,000 employees signed a letter telling google's ceo that the company should not be in the business of war at the time the project was announced, google said it was intended for nonoffensive purposes, but employees are concerned that the technology could be used to enhance the

targeting of military drone strikes. i wonder if they -- we don't need a defense department or pentagon we're beyond that in the world can't we all just get along? >> just want to be a part of it. if we talk to china and russia, maybe we can all just -- >> talk or tweet >> that's why when zuckerberg was saying i hire people who live around here it will be tough not to hire people who will not ged rt rid f diamond and silk where will they find people who don't suppress conservative thought in that area a previously unpublished novel by jrr dolk lshtolkien wi

released it's a prequel of sorts to the lord of the rings. it charts the story of a mythical city attacked by the dark lord morgoth. >> not my thing. >> me neither. >> no? >> tough to be worse than soron or soromon >> you're like speaking in tongues to me now. i have no idea >> the weird thing is there was so much success with lord of the rings, then they took the hobbit, which was only about this thick, they made six movies lord of the rings, if you have not -- you have not seen lord of

the rings? >> i've seen one of them >> no? >> mortensen, he's awesome orlando bloom. it's great froto. >> i know him. >> i feel like i have to learn all the rules of the sorcery, who can do what. who can't. what were you reading when you were a kid coming up, the struggles of general electric is something happening here? the company due to state earnings maybe there is something amiss we'll tell you what to expect when this company reports results. also reports from jpmorgan in the next half hour as we head to break, here's a look at yesterday's s&p 500 winners and losers

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day before not quite as much volatility not volatility, but big point move not big percentage moves, but we've had some triple digit moves since really the end of january. since the davos top. today we get general electric. >> yep >> ge is getting ready to restate earnings later today morgan brennan has more on the story. ahead of first quarter results next friday, ge will restate earnings for 2016 and to 17 today why? a new accounting standard takes effect revealing how companies get money from long-term contracts. according to a february filing, ge expects to cut 16 cents off of 2017 earnings, 13 cents off of 2016s this takes into effect a 4$4.2 billion accounting change. the results are not expected to

impact 2018 guidance or cash flow adoption of the new rules comes as the s.e.c. investigates the country over its long-term service contract accounting. that probe was revealed earlier this year. after a number of surprising disclosures, a filing in line with guidance could help strengthen management's credibility. lastly, if some keymetrics do look worse, especially depending on q1 results next week, that could push up ge's borrowing costs. yields on the outstanding issuances have already jumped in recent weeks back over to you >> thank you very much, morgan with us is jack degan. are you expecting to have any surprises from the restatement >> no. i think it will be in line with expectations i think john flannery learned from painful experience that he's better to set expectations low and exceed them rather than

the opposite >> so what are you expecting from earnings next week if you expect this kitchen sink moment from flannery? >> he's had two opportunities to kitchen sink the earnings already. if he has not done so, and if he left himself room to meet or exceed this quarter, i would be surprised. >> jack, the outlook that the company had given before flannery, when that went from $2 to $1, that started the move from 30 down to where it is. i'm trying to remember all the roaches, all the shoes that dropped. then there was the insurance reserve that had not been set aside. then isn't there also worry about long-term pension obligations? now you have the service contracts. where they were -- you look at those. it was aggressive the way they were booking revenues for some

services that would come they never did come. so there's been three or four shoes that have dropped. this is a new one, isn't it? this one that we're seeing today. this doesn't take care of the insurance reserve or the pension obligation that's why it's at $12 or $13. >> i think you're right. it's scary that's what gave us concern. you know, the insurance reserves, they left the business 12 years ago others in the industry took reserves years ago it was no secret that long-term care insurance was a huge loser. to have swept that under the rug for so long is scary that makes me concerned that there were other shoes revenue recognition on service contracts -- service contracts are half of industrial segment revenue. this is a big deal >> you mentioned that's why you backed away from the stock that was in the range of $20 a

share. here you are now, the stock down to 13. that's a tremendous discount from where you sold it is it at a point where you say when is it getting washed out? you have a small amount of analysts even recommending it. the price of stock implies little confidence. >> i think you're right. and probably investors who enter here that have a three-year time horizon can meet or exceed the s&p. we're not going to do that yet, we kind of have a policy of staying away from stocks under s.e.c. accounting review especially with the history. we really started to question the voracity of management's accounting at the end of the immelt reign, i'm sure john flannery is going to clean house, but we would

wait until that review is complete >> at this moment in time, jack, are you worried about free cash flow i'm sure investors are concerned about the dividend >> you bet i wouldn't be surprised to so he a further 50% cut. reducing their outflow from 4 billion to 2 billion, that would give them breathing room in the restructuring. i think that would be prudent. >> santoli or jack, american express is less than 100 billion. utx less than 100 billion. caterpillar less than 100 billion. ge getting close the oldest dow component will it always be a dow component, jack? >> i really think the committee would have a hard time removing ge it's just such a storied company. >> i know. that's part of the tragedy >> what is ge going to be? that's the fundamental

existential question that investors are asking if they're only $4 billion in the $20 billion sale of assets that they forecasted, we don't know what will be left of ge and whether that reflects the economy as we want it to be reflected in the dow jones industrial average >> you're right, melissa 31% of revenues are coming from the power business that is not going to be a quick turnaround you know, secular decline in the industry, they doubled down on it with alston it's just scary how poor the decisionmaking was in m&a. >> you would look at the alternatives at 1$115 billion in market cap honeywell just below it does that change the complexion of the dow if you swap one for the other? it's not giving you a bigger footprint in the global economy. down the road it could be a

lockheed >> i can't remember. i saw cisco and i said yeah, cisco. at&t is out. >> verizon is in at&t out >> they're pretty arbitrary. i figured ge stays because it's ge >> it's legacy >> i'm not sure it should be jack, at least oil and gas business might be coming back. they went into that full on on the way down to 30 >> good thing they didn't sell it yet >> exactly i don't know >> let's hope they don't sell it before it does >> right >> thanks, jack. >> thanks, jack. coming up, jpmorgan set to report we'll bring you numbers and reaction stay tuned, you're watching "squawk box" on cnbc

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a russian billionaire has sold his 49% stake in the brooklyn nets basketball team to joe tsai, alibaba co-founder and executive vice chairman. the sale is not expected to affect day-to-day management of basketball operations. that's according to a statement from the team. so russian collusion with the nba will continue, apparently. >> and the silicon valley takeover of the nba. you're nobody in the valley if you don't have a stake in an nba team >> it's the thing to do. >> they figured out three points is more than two points. they only shoot three-pointers >> genius. the value of spacex keeps growing, climbing to $25 billio with the authorization of a new 5$507 million fund-raising roun. that makes spacex the third most valuable venture start up in the u.s. after uber and airbnb

musk's personal fortune growing to 21$21.3 billion. >> uber is continuing to update its app in an effort to keep riders safe. the newest features allow riders to notify five trusted contracts about your rides there is also a 911 button that will notify police with your realtime location when pressed don't miss uber's safety board advisory chairman and former u.s. homeland security secretary, jeh johnson is this a story about you, joe? most admired people? >> i just realized i'm living in the past angelina jolie was not i was thinking r-- reagan dead neil armstrong

>> bill gates and angelina jolie are topping the list of the most admired people they each finished first each year since the list was split between men and women in 2015. the market researcher interviewed more than 37,000 people from 35 countries asking participants whether they admired each public personality and which one most barack obama and michelle obama were ranked second xi jinping finished fourth behind jackie chan vladimir putin was sixth warren buffett 12th. elon musk, 15, and donald trump 17th among women, oprah winfrey was third ahead of queen elizabeth and hillary clinton. interesting list >> it's just -- santoli is not ready to say anything either we'll just leave it there. >> you're speechless >> putin was sixth where is kim jong-un >> it's a name recognition

thing. >> stalin in there what these cultural things. they don't bother i? things like this >> they do bother me i ignore them. >> you just read it. >> i have to it's my job. >> you gave it your all. >> i give everything my all, joe. >> you do. coming up, jpmorgan set to report plus a major pharmaceutical event this weekend could have ang impact in the stocks of cancer drugmake sglee drugmakeers. first a check of what's happening in europe. the ftse, cac and dax trading higher etail business. so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online

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jpmorgan is reporting results this morning as usual, it's always fun to try to on the fly figure out exactly all of the different metrics that analysts are waiting for. they don't -- in fact, they won't even agree to come on until they've had at least an hour to look at a lot of this stuff. anyway, revenue was $27.9 billion. i got to figure out how that compares to -- >> $27.7 billion was the

estimate >> okay. and then we've got to find the clean bottom line number which is never a routine task either number of $2.37, where does that fall in -- $8.8 billion in net you know, i think -- >> consensus was $2.28 billion >> i think we use the revenue on a balanced measure so it's $28.52 billion that's above the best thing to do is just continue to follow where the stock is trading let me just see. we got it right there. it's up 63 cents so at first blush, not too bad in terms of the reaction to the stock. let's see some of the other metrics here >> looks like equity markets came in above consensus as well. that in part could have been helped by the volatility that we've seen in the markets. >> i think there was also a

slight upside to fixed income and currency trading it all looks like a mild beat, but i think people are leaning towards the idea >> the expectations for the banks in particular were super high going in. >> return on tangible equity 19%. pretty good at the upper end of the industry for banks of this size >> i don't think you'd call it knocking the cover off the ball, per se >> they don't necessarily do it as frequently as goldman sachs or others used to do it in terms of having huge out-performance >> goldman's numbers should be interesting this quarter they report next week. in terms of the trading if you read through on the trading beat, goldman should be well positioned at least to post better results for this quarter. >> jamie dimon says he remains optimistic about the positive impact of u.s. tax reform. all right. so we will have much more on the earnings report from jpmorgan.

still to come, results from two other big banks. cet that going for us which is sicitigroup and wells fargo "squawk box" will be right back.

earnings alert the big banks a big deal this morning as they roll out quarterly results. "squawk box" news maker investor mark mobius joins us live plus cryptocraze how there could be another surge in bitcoin this morning as the second hour of "squawk box" begins right now ♪ live from the beating heart

of business, new york city, this is "squawk box." >> good morning and welcome back to "squawk box" here on cnbc we're live at the nasdaq market site in times square i'm melissa lee along with joe kernen and mike santoli. u.s. equity futures out this hour holding there all morning. nasdaq looking to be up by about 17 points. the top corporate story that crossed moments ago, jpmorgan earnings beating the street on both the eps as well as revenue. let's get to wilfred frost with more on these numbers. >> actually a pretty good set of numbers. the share price performance as you guys were discussing, a little lackluster in terms of how good these numbers were. up 2.5% yesterday coming into these numbers. so the headline, $28.5 billion in revenue versus $27.7 billion expectation. a little ahead

eps nicely ahead $2.37 a share versus $2.48 forecast. the return on equity, 15%. the expectation was 14.1%. return on tangible equity 19%. the expectation was about 18.5%. let's go into trading. going to be key in likes of investment banks coming through. on the headline looked strong. it was up 15%. most of them had been guiding to single digit i'm not sure what that one off was. upwards from what we all had the market down. i'm not sure yet we will ask on the call. but a $500 million one off gain. despite that, to the high single digits of course equities is where we've seen the volatility pick up investment banking down 7% so that was a little bit of a

miss there which we were expecting slight declined in investment banking year on year. now, net interest income, decent performance there. $13.5 billion. so up 9% year on year. we did see rates, of course, rise during the start to the end of the quarter even if rates have slipped recently. there's also a one off in terms of private equity loss not sure exactly what that is yet, but we will dig into that sort of offsets the one off gain we saw in trading. these are decent numbers ahead of expectations, but of course we'd expected strong numbers. yesterday's gain kind of summarizes the positivity of these numbers. >> thank you wilfred frost running through the numbers on jpm we are joined now to go through these numbers as well. what's your overall taic >> well, what we're seeing is

revenue growth coming in both on the fee side from capital market and trading. so the volatility was positive what we're also seeing is income continuing to grow we are going to start to see deposit rates start to move higher as the fed funds race moves. but asset yields are moving higher which is offsetting that. >> the bull case for banks like jpmorgan is pretty set at this point. the big question, i think, is where we are in this cycle losses going to tick up or not are they going to have to stretch to make -- to get loan growth anything in these numbers that will tell you this is something to be concerned about yet? >> no. on the credit side what we're seeing, we have a proprietary model that does credit cycle monitor it's actually predicting right now that we're still bullish which means that credit costs remain relatively low in this historical level >> and then they go down

>> yeah. we're sitting here watching that this year could be as good as last year which is as good as we've seen in the cycle. >> why do you think bank shares, though, are sort of tethered to the 10-year yield and what they do on a day-to-day basis got a fundamental story that's intact it doesn't seem to be overriding the yields >> it isn't. that's the interesting thing we keep watching. because there's been this trade since really 2010 that when the 10-year goes up, bank stocks go up when it comes down, bank stocks go down. that's really relating to trading. when you look at the fundamentals, the 10-year has little impact. if we look at the actual 5-year, 3-year that's where you see a lot of the loan pricing and securities pricing that's working in favor of the banking right now. >> just looking how the stock trades on a valuation basis. book value for jpmorgan up to

67.59. so it's about under 1.7 times book value higher than some is that fair at this point do you feel like that's capped around 1.7 >> it's not. profitability is going up. we're hitting highs on our returns each quarter as we go through the rest of this year we think returns will continue to go higher. which pushes that higher as well >> jpmorgan said you would be a buyer of the stock would you agree or would you think the sweet spot exists below that >> no. if you look at, you know, the traction that you get, we look at the capital we're going to see in june which we think will be the next big event that will push these stocks back up again. we will have free cash flow, share reduction as well as dividend yield so you're still getting the benefit from repurchasing those is shares at this level. we think the price on average now is about $2.11 with all

these -- >> that's right where jpmorgan is >> that's right. it's going to head to about $ 5 $2.50. >> anything you would read through from jpmorgan's numbers from the rest of the group right now on the trading side or anywhere else? >> well, we wanted to validate that we were going to see the volatility turn into capital market revenues. i think that's positive for the money center banks what we're also seeing a asset yields and margin continuing to expand so that net spread which helps regional banks will also be favorable. >> on a trading side, the volatility has mainly been in equities which is not the bulk of the capital market business so i guess you have managed still to see volume gos up >> we did see fixed income go up a little bit this year relative to last year we're watching right now because investors are still on the sidelines. we haven't got really that

direction where rates kind of purge through those highs and they can start restructuring their portfolios there's not a lot of cash flow, so they're sitting on the sidelines waiting for that new kind of high yield where they can go out and start really restructuring portfolios and getting to the higher yields >> which bank a has the most upside for 2018 from here? >> we like sun trust we think it has several different elements of this capital deployment has no real interest in expanding through acquisitions they want to get the capital back to shareholders as quickly as possible. we think that has traction in this particular year >> marty, thanks marty mosby. in other headlines at this hour, tesla ceo elon musk hitting back against the story in the economist which says that the automaker will need to raise up to $3 billion in capital this year in a tweet this morning musk says that tesla will be profitable and cash flow positive in the third and fourth quarters so obviously there's no need to raise money.

that has the stock up about 2% another snapshot of the labor market is out this morning. out with the february jolts report the report will be released at 10:00 a.m. eastern time. also president trump has ordered a full review of how the postal service operates. he's created a task force to study its finances his order does not mention amazon, but as you know, the president's been critical of that company saying it pays below market rates to the postal service to deliver packages. not different than other people. is that -- >> what? >> amazon, the discount they get -- >> oh, i mean, it's a bulk discount why wouldn't you get a discount? anyway it'll be interesting to see what they find. it's going to give the president more fodder for his fight. >> we've had some pretty good

managers trying to figure out the post office. it's been tough. coming up, it's friday the 13th so should investors be afraid market research show stocks perform worse on fridays that end in 13 than on other any friday stay tuned you're watching "squawk box" on cnbc this scientist doesn't believe in luck. she believes in research. it can take more than 10 years to develop a single medication. and only 1 in 10,000 ever make it to market. but what if ai could find connections faster. to help this researcher discover new treatments. that's why she's working with watson. it's a smart way to find new hope, which really can't wait. ♪ ♪

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welcome back to "squawk box. futures this morning indicating a higher open pretty much across the board. jpmorgan earnings crossed just moments ago. it was a beat on most metrics but the stock is only higher by a fraction of 7% nasdaq looking to be up by about 8. check out bitcoin. this after 12% surge in yesterday's session. we've got bitcoin trading across exchanges higher today up almost 3% on the coinbase exchange we are joined now by chief investment analysts. we all have the same, i guess, questions at this point. is there new lows to be had on the recent pullback that started in february? or are we just -- will a certain amount of time be necessary

before we set some new highs or do we set new highs >> i think setting new highs will be a bit of a challenge >> this year >> i think it could be. >> so we've seen the highs for the year >> i think we'll have a volatile chop that could be a reasonable expectation. from our perspective there's probably more downside >> people say earnings are expected to go up. why would that be valuation stretched? >> i think in the near term you can hold your position our position would be a slight underweight to u.s but getting into global equities, valuations in europe, bigger cycle i just think on a valuation

basis, for a global multi-faceted strategy there's more options >> what do you think, john >> hey good morning thank you for having me on i think the february low may hold considering what happened in april we had significant less volume, not a severe blow off. the bottoming process takes awhile and we could be experiencing that currently we got off to a great start to earnings season today. i think the whole idea that we can focus on earnings with discounting record earnings near still historic lows and interest rates, i think that's positive for the equities we're more optimistic on the market than steven >> i'd like to know whether multiple contraction occurs based on the percentage move in interest rates in the lows or based on historical relative valuations because based on historical interest rates, this could command a really high multiple

unless if you double from two to four, that's a doubling in interest rates and you have to drop to, like, 12 times earnings i don't know the cost of money is cheaper this time around than it has been historically or at least in the '70s and '80s. maybe we were thrown for a loop then >> i think you make a great point. we like to look at multiples not in a vacuum but we always look at the analysis, if you will, relative to interest rates and inflation. would be offsited 16.7 or 17 multiple on the market too often is analyzed myopically i think if you look at inflation, averaging 3.4% to 4% from 1950. 10-year treasury since 1950. yeah, those all bode well for multiple expansion we're anticipating market growth to be commensurate with profit growth in the coming year. >> people always -- they're

always talking europe. why not -- we got -- over the years gdp in europe over the last 40 years has grown, like, 40% slower >> correct >> yet they got all these structure -- what are they earlier in the cycle all you care about are central bankers being accommodated we've got a tax cut here we've got american ingenuity and exceptionalism and you want to invest in france >> all those boxes checked but if you look at the aging economic cycle where nine years in -- >> they don't die of old age, do they >> but at these valuations and this is a global rebalancing strategy if the federal reserve is going to raise four times in the next 12 months which i think they will we're not discounting that but when you start looking at the 12, 18 month, that's when -- >> what do you think, santoli? you know what i mean >> i get it. >> i think it's more envogue >> i think the models point you

that that direction. >> i don't want to invest in t nestle >> you probably get this pushback i don't know if europe is your interest opposed to other parts of the world >> make steve great again. thanks >> it's a bank and oil heavy type of exposure so, you know, all else equal, it's not necessarily all that much cheaper >> i agree but at these valuations, fundamentals are good in the u.s. but are they good enough -- >> are the valuations comparable if you did u.s. ex-technology. by the look we have technology >> it's more expensive but not by as much of a margin >> i don't see apple in europe, google in europe i don't see the leading edge -- the biotech, drug development. you're over in europe. what are you like over there

john, help me out over here. do you want to make america great again? >> we're fond of the u.s. in em. we're concerned about europe we think they're too dependent on monetary policy there's a degree of political instability there as well. >> yes i think it's just fashionable. like you're at a cocktail party. i like europe. what are you buying? etf? >> diversified portfolios. >> you see what i'm saying santoli, you didn't help >> why >> because he said he's right. >> the first half of the 2000s, the united states was last -- >> not on what currency, not in local currencies >> economic data out of europe is sketchy of late >> it is sketch y i. >> but the entitlement state they're going to run out of money. kra cradle to grave entitlements >> wait a second you said lower interest rates

are higher multiple. what are rates in europe right now? >> yeah. because the economy doesn't grow over there 2% is surging. >> take it from 50 years to 50 months that's an opportunity and active strategy to take advantage of valuation opportunities. the u.s. has had a great run >> all right thanks, john thanks, steve. >> thank you very much >> does comcast own? no that's what the market is worried about. given the comcast trade yesterday. >> i'm not alienating all of our european -- i do love europe i do i love it everywhere >> the food. >> yeah. we live like dogs over here. compared to italy. are you kidding? but they just -- they don't care about their economy that much. anyway thank you, i guess coming up, a major pharmaceutical event this weekend could have an impact on the stocks of cancer maker the names you need to know coming up next

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♪ merck and bristol meyers are duking it out for dominance in the $15 billion market for lung cancer drugs this weekend kicks off the american association for cancer research that's asco? >> no. it's aacr. it's a precursor >> it's in chicago meg tirrell joins us with a preview of this. the years are going by quickly though >> they are. and they're marked by the medical conferences we attend. that's how everybody marks time.

asco is in chicago that's usually the big cancer conference but aacr is getting bigger and bigg bigger lung cancer causes the most cancer deaths in the u.s we're going to get new data monday morning from merck and bristol meyers on their drugs that unleash the cancer cells. which drugs work best for which patients and because of this, these updates in treating lung cancer can have massive implication look at the performance of bristol meyers and merck that was when bristol had erased $20 billion in its market value in a single afternoon. and more recently just this week, merck dropped on positive

data for keytruda. investors appear most bullish on merck's prospects and more bearish on bristol-myers we both know these hit their goals. and what we're going to see at the conference is the details of how well these drugs performed it's going to be a big day on monday. >> so what type of lung cancer do -- are they -- >> it's nonsmall cell lung cancer >> is there any genetic component to it? there's not, like, a erca gene or anything like that? >> not for these specific trials but they're separating patients based on what's characterizing their tumors either by markers called pdl-1 or tumor mutation. which is the number of mutations in the tumor >> and that's where -- and still the most deaths. it's not breast cancer or colon

cancer >> no. lung cancer causes the most deaths breast cancer is more common in women, but lung cancer is more deadly >> okay. still smokers, no doubt, right >> yeah. although that's getting better and of course the fda has made major pushes in tobacco to try to lower nicotine levels in cigarettes >> i'm in shock. you know, again, with europe but i'm in shock whenever i see someone lighting up. it's like what's wrong with you. >> people standing outside asco smoking a get. it's phenomenal. >> have you watched the ads? i can't get them out of my mind when i watch them. the latest one is a guy who's sitting there talking about i'm grateful for this, grateful for that i go d.o. this, i got my family. and they say he died right after filming the commercial at 57 years old. those are powerful and what about vaping? that doesn't --

>> there are studies going on to see about the long-term safety. >> there's none of the carcinogens in the pure nicotine. >> well, the fda commissioner is looking for a way to have access to e-cigarettes to wean themselves off >> i don't see any reason to, you know, conjure up an addiction that does nothing. if you're not addicted to it and then you start and then you are, it's like why start in the first -- you know? >> you could say that about all addictions probably. >> you have some beer, you feel a little bit -- you know i could understand that. i don't understand just an addiction for the sake of an addicti addiction. >> well, you're not a smoker >> maybe i'll try it >> so you can be more empathetic with smokers >> no. >> never >> in the airport, a guy printing out your boarding pass in europe, there's ashes falling. >> thank you, meg tirrell. coming up, his name is

synonymous with emerging markets. mark mobius joins us live next and first as we head to break, look at u.s. equity futures. we are looking across the board capping off the best for the s&p wes.nasdaq in ek you're watching "squawk box" on cnbc obvious. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers.

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♪ welcome back to "squawk box" here on cnbc we're live from the nasdaq market site in times square. jpmorgan chase the first of the big banks to report quarter innings. came in 9 cents above estimates with revenue also topping forecasts. jamie dimon saying the bank's businesses are performing well across the board citi and wells fargo reporting at the top of the hour shares of jpm up by 0.8% qualcomm shares higher on the trade. talking to investors about a bid to take the chip maker private

crude oil prices are pulling back slightly this morning this is tension surrounding syria. starting to ease, but crude oil is still on track for its biggest weekly gain since last july it hit a 3.5 year high earlier this week. trade tensions are among the biggest drivers for the global markets right now. the latest chapter of the white house saying president trump told advisers to look at potentially rejoining the transpacific partnership joining us now is mark mobius, partner at mobius capital partners that's our intro to mark but i don't know whether that would suck a lot of the oxygen out of how you think about investing at this point. for what it's worth, i just saw one of our colleagues carl retweeted that may not go over big for the people already entered into it. would it be a net positive if we were to enter that

>> i think so. i think, you know, a negotiation is always better than one off statements that shut down any chance of compromise so definitely it'll be a good idea >> i don't know if i believe either of them when the united states -- see, here's what -- members of an 11 nation asian trade pact said they oppose any renegotiation to accommodate the u.s. you know, i don't know i would think that you would -- you know, i guess i as a xenophobe -- not xenophobe, but a nationalistic, they would want us in. it would make the tpp better, wouldn't it? >> no question let's face it the u.s. is the biggest trading partner. has the biggest influence. without the u.s., the whole thing doesn't work it doesn't make sense. >> right so i don't know.

maybe we'll negotiate in different ways overall, we had someone on yesterday, larry fink who -- he manages a lot of money, mark $6 trillion. >> this is true. >> he said certain things here like tax reform have given us some extra innings at least in the recovery or this business cycle in the united states is the entire business cycle -- you know, you're a global investor do we have a few innings left globally in the growth story >> there's no question about that i mean, of course there are tremendous differences what's happening to russia is not happening in china what's happening in china is not happening in brazil or india generally speaking in the space we're in, emerging markets, growth is still holding up good. china and india growing at 7% growth now brazil, they're still going through the scandal but their reform taking place is really

very earth shaking same thing in argentina. i just came back from chile and they look great with the new administration so i would say we've still got a few innings left >> so with -- you mentioned china. and, you know, we're right in the middle of trying to figure out how all this plays out the president seems to think that we hold the upper hand and that they could actually run out of bullets eventually and they need us more than we need them how do you see that? >> i think the u.s. is in a stronger position because just look at the trade balance. it's way off so the u.s. has a lot of negotiating bullets to go. the good news is the chinese know how to negotiate. it's one voice in china. in america, it's like 200 voices as many states there are plus plus so i think this negotiations are very good. the chinese will give a lot.

you know, there are a lot of little buttons they can push that would make things right at the end of the day let's face it. it's good that the u.s. is making these negotiations. because a stronger trade balance will be good for everybody, i think, china included. >> it's funny because not necessarily the left but we hear a lot of people just argue that -- and i was surprised to hear you say a lot of people argue we shouldn't be looking at trade deficits in a strong economy in a consuming nation, that that's a sign that things are good. but i think it would help if we exported more and got more in line in terms of being balanced out. that would be a positive for us? >> that's right. a lot of people say it's the software that don't count in the

regular trade balance figures. but let's face it. at the end of the day, the u.s. is very strong on software and they don't have access, full access to the chinese market and the u.s. is a commodity producer so they can do a lot more in terms of getting into the chinese market >> mark, it seems like ab important overlay in terms of where you're finding opportunities across regions the booming of technology, et cetera s seeing that, are you a believer of bitcoin seems to have maybe the most valid use cases in markets where currencies are getting devalued and they actually need an alternate form

at the end of the day a bitcoin is an alternative payment system which is badly needed. let's look at the situation now with russia. the russian companies can't use u.s. dollars everybody's afraid of having their currency go through new york so they want an alternative. the euro may be an alternative so i -- in many ways, these sanctions are going to hurt the u.s. dollar as a medium of currency and of course people are turning to bitcoin or have up to now turned to bitcoin in the hopes of having a currency they can use without the surveillance of the u.s. of course for illicit purposes, there's definitely a desire for an alternative to the u.s. dollar >> mark, you're all over the place. all the time there was -- i remember we had an expert on that said in china

they don't have the same necessarily negative impression about president trump that even domestically a lot of people might hold they respect strength or straight talk or something what do you hear in all these different places where you are probably got -- probably is less well thought of by a certain contingent in this country than in other countries or correct me if i'm wrong, is it that people in other countryings say those tweets are insane what do you think? >> well, you know, it's certainly interesting. again, talking about my recent trip to chile, i was at a lunch table. i asked the guys on both sides of me, of course these were business people. and i asked them what do you think about trump. they said i think he's great both of them were very positive on trump so it is surprising how trump is seen in other parts of the world. i think in china they like trump's straight talking and it's interesting i met someone in new york, had a

lunch in london. trump came up. as a new yorker, he was negative on trump but he was surprised at the positive comments coming out of people here in london. so i think you really hit something that's very critical the view overseas is different from what it may be in the u.s. >> mark, as you survey the world, is there one country that you're most excited about at the moment here? >> well, china the things that are happening in china are just tremendous. you were recently talking about cancer research. china's way ahead in many, many areas in cancer treatment and so forth. but is the one that's coming down the pike, of course, is going to be india. india by 2050 is going to have more people than china it's a huge market and growing at a fast pace i'd say india would be next.

>> yeah. good times and capitalism create a class of elites that don't even remember how they got to be so comfortable. i don't know they start questioning capitalism and everything else it's very strange watching it happen i think that's in part what you're talking about anyway, mark, thank you. go ahead >> thank you one of the things that's amazing in emerging markets, remember when we started in 1987, there were only six markets where we could invest all the countries were either communist, socialist, against capitalism, against free enterprise now we've got 70-plus countries that are really directed towards a market economy, free enterprise, that sort of thing so things have really changed. >> we've got half the millennials thinking we need to try socialism again. i don't know who we have to thank for that i have some ideas.

thanks, mark mobius. coming up, youtuber rolling out new safety measures in a new leader in charge of them jeh johnson getting that job he'll join us next he corps, so i'm not happy he corps, unless my hands are dirty. between running a business and four kids, we're busy. auto insurance, homeowner's insurance, life insurance policies. knowing that usaa will always have my back... that's just one less thing you have to worry about. i couldn't imagine going anywhere else. they're like a friend of the family. we are the cochran family, and we'll be usaa members for life. save by bundling usaa home and auto insurance. get a quote today.

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uber unveiling safety features to regain the public's trust. along with those features, they're adding someone to head up their safety board to improve passenger safety jeh johnson is now chairman of the uber safety advisory oard. secretary johnson joins us now welcome to the show. >> nice to be here thanks for having me >> how big of a challenge was it when you first came on >> well, i've been chair of the safety advisory board less than 24 hours now i'm very impressed with the new leadership of uber they seem very dedicated to the issue of safety, public safety, passenger safety, and the safety of their drivers i attended a summit yesterday. it was a lively discussion

and they came to me and asked me if i would chair this group of outsiders which includes the former director of the secret service, the former commissioner of the boston police department ed davis i said yes this appears to be a new leadership for uber. it's certainly something i relied on when i was secretary of homeland security >> you've got quite the company along with you for this. are there hot spots around the world? different where it's more of a challenge for uber >> uber is in 177 countries. it is a global company ranging from central america, north america, europe, the far east, the middle east. so there are issues in every region that they are they are truly a company of global reach so our advisory board role will have a global reach to it as well

>> with what specific mandate is it to come up with some kind of, you know, protocols that go across the globe in terms of how drivers interact? >> i suppose that will be part of it. provide advice on how to improve upon, build protocols, background checks. one of the announcements yesterday by the ceo was that they'd be engaging in a more robust background check process for the drivers as well as -- >> what does that mean what was the background check before and what does more robust mean >> well, in my experience, it's good to have a rolling background check process continuing process that occurs on a periodic basis. not just when the person is brought on the job at the outset and so my understanding is that uber will be doing this on a more continuous basis. >> we want to know about your passengers too for the drivers, obviously

you can't do a background check on every passenger >> part of the -- actually, part of the uber process is drivers evaluate passengers. >> right that's good. >> and obviously there's a concern for the safety of the drivers as well as the passengers >> i didn't realize -- i mean, if you could guarantee me all the things you're talking about, it's such a powerful company like my kids are -- even if they are of driving age, at night if it's 40 minutes away, if -- you know, i know kids they may not be of age and have a caulk take tail or something. it's so much easier to take an uber home. but then sometimes the uber guys cancel they can't find where -- so i get a lot of angst from that got to make sure they don't cancel >> there are 15 million uber rides a day. it is a company that truly interacts with the public on a

global basis we all want to know a company like uber or any other transportation or travel company is focused on the safety of its passengers, the safety of its employees, and the public generally. >> i would resign with the first driverless car that would be the next thing to be concerned with. and we're rushing headlong towards that will you stay on when you got to worry about self-driving cars in addition to everything else? >> well, i took this advisory position knowing that there'd be many interesting issues to focus on >> that doubles all the concerns triples. it's almost hyperbolic right? it would be ten times harder to keep everything -- >> that future is not necessarily limited to uber. the automobile industry generally seems to be headed in this direction >> and then we'll throw in some

drones, flying's automated uber transportation you've got to be gone by then. do not stay around for the flying stuff. >> in terms of improving safety, i mean, that begs the question what is the track record of uber right now. you've got to have metrics on which to measure your progress how do you measure how safe uber is right now if there had been crimes or what the nonot. >> one of the things we heard yesterday from this summit is by raising the awareness of people who use a process or use a system simply raising the awareness about ways in which you can lodge a complaint or that there are avenues to register concerns about safety, that in and of itself enhances safety that is a useful way to track metrics. but the main here is that the

new leadership team seems to be very focused on this they realize it is simply good for business to be focused on safety and to be seen as focused on safety. >> yeah. how many countries >> 77 countries, 600 cities. >> you can't -- >> several billion rides so far. >> is it as easy to do background checks on drivers in other countries? >> everything must be different in every country >> clearly everything is different in every country when you are a global company, you have to deal with different processes, different law enforcement, different legal regime, different culture, different norms. and so one of the things that i know uber is focused on is building a safety protocol for each region of the world where they're in >> great >> mr. secretary, thank you. jeh johnson. >> you walk by every day wave, stop in. >> tap on the glass. >> thank you coming up, a bitcoin high of

a whole different kind a cnbc investigation into the elrk world of cryptocurrencies fuing the opioid drug epidem epidemic stay tuned goin' up the country. later, gary' i have a motorcycle! wonderful. ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪ geico motorcycle, great rates for great rides.

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>> police say a former eagle scout made up to $10 million running a crypto-drug ring he was alleged to be behind one of the biggest fentanyl pill mills in the country he made a fortune doing it in utah, authorities say bitcoin funded the enterprise. a supply chain prosecutors suspect caused 28 deaths after users overdosed on his pills when police readed the home and stash house, they seized bags of cash and at least 500 bitcoin. they were worth about $750 each when he was arrested >> they alleged they were going to forfeit it. you would expect that to be when they are adjudicated in this case the value of bitcoins was going into the thousands of dollars so the government came to us saying

this is a valuable asset we don't want to lose that value. >> his client agreed to the unusual request to build good will with the government shamo's assets went up for auction this year. 62 bidders signed up to cash in on 4,000 bitcoin by then the price had skyrocketed to $11,000 for each one. shamo would have been a billionaire. advocates for bitcoin tell cnbc only 1% of bitcoin is linked to any illegal activity >> cryptocurrencies do not kill people opiates are killing tens of thousands of people a year blaming bitcoin for this crisis would make as much sense for blaming the internet or cars that drug traffickers have to use. >> shamo declined to interview and he is pleading not guilty. even when he goes to trial, his attorney says it's unlikely he

will ever see any of that money. we've got the full story up on cnbc.com you can find out more about aaron shamo and about the fentanyl supply chain. >> it's funny how people want to use bitcoin to link illicit activity when cash is the number one but nobody says anything about that >> right cash is obviously the most anonymous form of payment of all. however, the important thing here is that fentanyl has really come into this country online. it's being bought on the dark web, being shipped to the country. you have to use some form of electronic payment bitcoin is what the bad guys appear to be turning to. >> thank you coming up, we heard from jpmorgan here's how we're setting up on this friday session. gains across the board the dow implied open is up 88 points nasdaq implied open up 17.

stay tuned you're watching "squawk box" on cnbc play "do it like this".

[music plays] when everything's connected, it's simple. easy. awesome. earnings season kicking into high gear. two big banks set to report at this hour.

wells fargo and citigroup. luke ellis is the chief executive of the world's largest publicly traded hedge fund he joins us on set to talk market volatility and bitcoin coming up. and new this morning, tesla shares coasting higher after a tweet from elon musk we'll tell you what has investors feeling optimistic as the final hour of "squawk box" begins right now ♪ live from the most powerful city in the world, new york, this is "squawk box. >> all right good morning welcome back to "squawk box" here on cnbc from times square i'm joe kernen along with melissa lee and mike santoli becky and andrew are off we'll let you start out, wilf, with citi. then i've got wells ready to go

here you start things off for us. >> i will, indeed, joe we just had the numbers hit for citi revenue very slight beat $18.9 billion. expectation was $18.7 billion. eps a slight beat. $1.68 a share versus $1.61 expectation. return on tangible equity, an improvement they were looking to have they're just above their estimate room for citi to play catch up efficiency ratio, 57.9 not really ahead of expectations but continue to see it fall from the 58%. let's have a look at the trading performance as well because that's come in overall at 3% higher so that feels a little soft given that jp with the one off out was 7%

it came in with a decrease of 7% for fixed income whilst an increase of 38% for equity so again, that theme of fixed income across all the banks struggling equity delivering there. so that is encouraging for morgan stanley next week who have a bigger portion of their trading portion in equities. so again, like jpmorgan, soft of investment banking if we go back to the headline revenue numbers in term of the split, bigger beat came in the consumer bank here for citi in line on the consumer bank if a little behind. but institutional clients group is where they delivered their beat overall a solid number eps $1.68. >> all right, wilf wells fargo is indicated higher on numbers as well $1.12.

looks like it compares to $1.06 in terms of where wall street was. i don't see a managed net revenue number, but the revenue number that i see, $21.93 billion is still above the $21.733 billion the street was expecting. >> a little better than what was expected nim, net interest margin 2.8%. that's better than expected by the street but we are seeing wells up here on the back of these results >> preliminary results may need to be revised to reflect the additional accruals for the fcc matter so they're still dealing, i guess, right all right. >> jpmorgan also reported in the last hour. quarterly profit in at $2.37 a

share. 9 cents above tiestimates. dimon said they're performing well across the board. back on site to talk with us marty moe sby. your first takes on citi and wells? >> revenues a little bit better which is what we're looking for this part of the cycle so we are seeing some catalyst on the revenue side. >> would you say overall living up to expectations i think that's what the market -- going in, the expectations had been so high for this group it's one of the biggest sectors in the s&p 500 so in terms of market leadership, it's important for them to really show that they're strong >> it is we are expecting a positive in net interest income. we are seeing provisioning being lower. credit costs are continuing to be lower those things are netting into these kind of rounding up of estimates. first quarter we are going to

see some headlines talked about. loan growth isn't as strong as we would expect. >> but we expected that going in >> we did. i think we're going to see pipelines that are origination pipelines beginning to build which will foreshadow stronger growth in the back half of this year we're also thinking of the costs going up that will be a big question on most of these calls. what we need to focus on are -- we have market hiets going at a higher field. >> we're going to naturally see go from 20 frost 70% so we're going to pass this along to the customer. but market rates are going to push those yields higher >> what are some of the other things in the way of likely catalysts in terms of, you know, dividend and buyback

announcements? is that all baked in at this point? i know this at citi, from innocently highlights at payout ratio. >> what you get with citi is their actual returns now at 11% surpassed their cost of equity. >> 11% return on -- >> right all of is sudden you're starting to see returns get here. capital is, we think, the largest catalyst we're going to e s see this year. and furthering improvement on capital. as we get through june, that will be a significant we think positive surprise. not so much in the answers for this year, but we'll see that there'll be follow through in 2019 because earnings growth is so strong this year. you're seeing 35, 40% growth over last year that will fund the increase in capital deployment this year payout ratios don't have to go up too much. we get the payout ratio increased next year. >> citi actually says on track to meet commitment to return at least $60 billion to holders

over 2018, 2019 cycle. how do you expect these banks to trade given what you've seen >> i think we'll start to stabilize. we've given up a little bit as we come into the year. that's not unusual seeing these growths is not the strongest operating core for banks. we get that as we get into the second and third quarters. we think we will stabilize here. as returns through june capital announcements and back half of the year will push us up like we saw the last two years in total return for the year once we finish >> all right marty, thanks for your analysis on the spot. >> thank you pressure on a struggling general electric is mounting investors are now waiting for the company's 2016 and 2017 earnings restate which is expected today joining us now on the "squawk" news line, nick heymann from william blair. nick, it's good to have you on

we've been kicking news back and forth, how much is in the stock already, how many kitchen sink statements they've made. do you think we're near a low at where we are right now $13 a share. >> let's put it this way we don't think there's any more negative news. we don't think there's another lurking issue down at the financial subsidiary similar to the long-term health care reassurance issue. that was a surprise with the estimates for $15 billion of additional reserve injections through 2024 so we think at this point, it's really more about lifting the uncertainty. right now it's pretty pea soup in terms of visibility and so the regulatory investigations have got to get sorted out i think the doj won't be done until '19 but a lot of the rest of them will be. it's about clarifying what's in the portfolio and what isn't and how it will be monetized or otherwise reconfigured. and, you know, just like you

mentioned, getting just the restated numbers will allow us to have proper visibility on a quarterly basis for the rest of this year. >> you know what watching this stock far long, long, long, long time. i have and i thought 27 or 28 was sharply undervalued. remember he'd be buying -- keep buying stock for himself >> always buying >> buying stock for himself and for the company just to make you think that, you know, compared to 60, 28 did look cheap so to go to 12 where it went, i mean, that's a lot of bad things in this last year with the market up 35% for a dow stock to go from 30 to 12, there's a lot of bad stock i can't imagine. you don't need any more bad stuff there. it's all there already sort of laid out for you >> yeah i think what's happened is post that long-term health

care reinsurance announcement in mid-january that you started to disconnect between fear and fundamental analysis so we got speculation that they would sell aviation to boeing. we got certainly speculation they would have an early exit of baker hughes we got idea they'd cut the dividend again or issue equity there's no liquidity constraints here we've been after the company very aggressively to make sure that they go through on the call next week what the situation is on liquidity >> oil prices are higher than they have been that'll help because of the stake in baker hughes. you mentioned the rel tour stuff. and then we've always heard that ge is always best of times, worst of times whenever things go well in one part of the business, they always seem to have something else power is the problem now but two-thirds of the company is not power, right and that's doing much better

so that should help, right >> net net you're at or above plan with the exception this year you have no contribution now from the finance hub that was 3 cents when they talk about being a dollar to $1.07 and now at the lower end, 3 cents in that range is not there because those earnings are clear for the moment dedicated to being able to help fulfill the additional requirements for the long-term health care. >> and i hadn't thought of this. the largest underfunded pension plan with interest rates going up that takes some of the pressure off trying to generate returns there too. i mean, that will actually help, right? >> you got $28 billion and of that 18 is contractual. the other is with management and it's voluntary you're going to put six in so that will be 12. then every 25 basis points increase is worth $2.2 billion reduction in that liability. so you're at $3.5 billion right

now with 40 basis points. >> you don't expect anything too punitive from the regulators or anything. >> we'll see i'll tell you something right now. they've reserved $1.9 billion for less than $10 billion in claims but there is no specific reserve as it relates to the doj it's all about the subprime in a mortgage market. and that's the industry, not just ge and wmc. but, you know, they've reserved $400 million for wmc i think that's probably where that sorts out you know, we'll have to see what the assessment is as it relates to ge which bought that subprime mortgage business in '04 and then the buyer was out of business by the end of '07 >> nick heymann, thank you >> have a great day and a good weekend. >> you too the futures are going up i was hoping they'd at least get to the temperature i want for today which is, like -- >> which is what >> 77. 78 something like that. but it's above that and it's friday the 13th.

i love friday the 13th now we're up a hundred i don't want it to get quite that hot when we come back, remember this >> i would do tpp if we were able to make a substantially better deal. >> president trump told me that back in january. nobody really believed it then nobody really believes it now. but maybe it's no surprise that last night the president again spoke out about maybe negotiating to rejoin ttp. we'll talk to active trade representative ambassador miriam sapiro stay tuned you're watching "squawk box" on cnbc

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a gig-speed. a gig-speed network. it's like 20 times faster than what most people have. i'd of said... i'd of said you're dreaming. dreaming! definitely dreaming. then again, dreaming is how i got this far. now more businesses in more places can afford to dream gig. comcast, building america's largest gig-speed network. are you opening up the door to reopening tpp >> i would do tpp if we were able to make a substantially better deal. the way it was structured was terrible if we did a substantially better deal, i would be open to tpp >> that was back in january. president trump in davos speaking with me overnight the president tweeting, would only join tpp if the deal were substantially better than the deal offered to president obama. we already have bilateral deals with six of the nations in t rks p and are working to make a

deal with the biggest of those nations, japan, who has hit us hard on trade for years. two republican senators saying that the president has directed economic adviser larry kudlow and u.s. trade rep robert lighthizer to take a look at whether a better deal could be negotiated joining us now ambassador miriam sapiro do you realize what the real story is do we really want to do this does it just sound good? is it a sort of another bargaining chip with china what is it >> as the president says sometimes, we're going to have to see no doubt tpp is still a major deal it embraces some of the fastest growing economies in asia. when the u.s. was a party to it, it are epted about 40% of global trade. it's still significant and i think one of the key questions is does the president mean it? is he really serious does he want to get back

together with the tpp parties? or is he just flirting with them >> let's say the 11 countries really did believe that he was serious. do you think they would accommodate him? their first reaction was we're already done we're not going to renegotiate but it would be such a game changer to have us on board that they'd make room if they really thought that we were serious what do you think? >> i think they've always hoped the u.s. would come back to the fold but they have moved on last month chile stripped out many of the provisions that the u.s. had insisted on and other parties hadn't particularly wanted while i think that this idea if genuine will be tell brace embrd things have moved on

japan, for example, have offered some of the agricultural access it would have given to the u.s. to the eu. there are other examples as well >> so ambassador, you know, even prior to the u.s. abandoning the tpp, there was not congressional support across the board for this agreement what -- when you take a look at the agreement, what do you think needs to be put in what do you think the u.s. needs to have in there to make it a substantially better deal? >> well, i think the u.s. would have to try to get some of the intellectual property right protections that have been suspended back tin the deal. i think we might also have to strengthen the currency provisions which were essentially voluntary. so i think those two steps would certainly help it is a different context, though the idea of a looming trade war with china in which the u.s. would be fairly isolated does make people realize now the benefits of trying to do trade agreements that open up markets for u.s. exporters rather than close them

>> people meaning people in congress and people in the white house? >> i think people in the white house and also people in congress who had had concerns about tpp now see the value of a move that actually would hurt china more than any other country. the decision to pull out was a gift to one country, namely china. and getting back in as a way to try to isolate china at the same time try to help u.s. exporters whether farmers or manufacturers or providers >> you'reat duke now, madam ambassador >> i'm at duke for meetings. i'm managing director at sarm most of the time but i'm down here for a couple days >> i'm told the villanova team is here right now. >> to ring the opening bell here at the nasdaq. >> as much as they hurt me this entire season. i feel like a -- >> you mean from a -- >> as a xavier fan >> oh. >> but if we can get -- anyway,

but i digress. madam ambassador, thank you for your time today. >> you're welcome. great to be here >> he killed me. but i want a picture with him. >> hopefully he's listening. he'll hear you and your appeal >> just in general the kind of program they've built. >> they were fun to watch too. grayson's gone too coming up in the next half hour, the man who runs man group, luke ellis, the hedge fund ceo will join us on set 8:30 a.m. eastern time

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okay it's painful for me, but this is one of the perks of being down here this is the trophy this is as close as a xavier person is going to get i shouldn't say that to you gentlemen. we've got some of the guys from the team, the wildcats that didn't have class today some of the other guys -- >> the villanova wildcats. >> well, arizona did not -- and kentucky did not win this. anyway, it's a pleasure to have you guys what a season. who's coming back? we just had a show of hands of who's going to -- that my

musketeers have to worry about great season you guys are walking around with your chests pumped out you play too can you dunk anyway, congratulations, guys. that was awesome i've got some friends that know that you guys hurt me and they can't believe i'm doing this anyway, up next -- because of x. anyway look, put this next to -- can you see it that's not happening for us any time soon. the tweet that has tesla investors feeling good plus we'll talk to hedge fund manager luke ellis he's the ceo of man group. as we head to break, take a look at u.s. equity futures ♪ this is no ordinary coffee. it's single-origin kenyan coffee from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific?

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♪ good morning and welcome back to "squawk box" here on

cnbc we are live at the nasdaq market site in times square among the stories front and center, bank earnings prominent in the headlines this morning. jpmorgan chase, citigroup, and wells fargo beat estimates stocks were up initially with the latest quarterly numbers pnc financial also issued numbers this morning bottom line results matched street forecasts revenue, though, was slightly below kbpgss and that's the only one that you can see there that's actually in the red. themepark operator sea world i facing possible sanctions after being accused of violating security laws. received a so-called wells notice informing of possible civil action company has been under investigation by the fcc and the justice department for its public statements regarding the impact of you might recall the "blackfish" documentary which was critical of zseaworld and te

treatment of orca whales some analysts are saying that exporters may have been rushing out shipments near the end of the quart tore ger to ge of threatened trade tariffs. futures at this hour are still higher the dow implied open is up 131 points that's being hepped eped -- hey some of the bank earnings out this morning nasdaq looking to add 33 at the open elon musk hitting back against a story in the economist which says the automake lr will need to raise $3 billion musk tweeting the economist used to be boring but smart with a wicked dry wit now it's just boring sigh obviously no need to raise money. you see the stock there up by 2 p p2.7% that had been what drove the stock down in recent weeks about capital. >> i also wonder how in a sense binding that is.

in other words, if the company did come out in the next few months and raise capital, people can go back and say the ceo said we had no need to raise money. >> there's not a need to raise capital. and they also said that they are not required to raise capital recently but that doesn't mean that they won't raise capital. >> fair enough >> particularly when they're talking about already there's talk about about the model y production, their next vehicle production at the same time they're gearing up on model 3. how are you going to pay for that so required and need, you know, different. all right. let's get you caught up on a few analyst calls. netflix upgraded at deutsche bank giving it more levers to pull in order to drive revenue and cash growth that stock is up 2.4%. meantime, cowan is downgrading starbucks. craft competition is brewing and that could change the bottom

line $59.24 you know, i don't know how to get that >> they're really good they're really amazing >> it's been about four months since the cme launches its first bitcoin futures. we've seen that fall by nearly 60%. volatility still the name of the game with a big spike just yesterday in the futures this time the spike was higher for a change joining us now is luke ellis, the man group ceo. great to have you with us. >> good morning. >> you just started bitcoin. volatility should be a paradise, right? >> yeah. we don't try to have any view of what the fundamental value of bitcoin is that's a long debate whether it exists at all we trade it based on price and opportunity. there's not that much liquidity in it. so it's a tiny position. but we like anything we can trade. the more different things we can trade, the better it is for us >> are you using futures or

trading bitcoin itself >> we're only trading futures. basically the settlement risk you take on the so-called exchanges clients are looking for us to take >> is there a rapid institutional adoption are people open minded about it? how does it sit right now? >> i think you would call it a very, very slow adoption the reality is it's a futures contract we trade hundreds of futures contracts around the world you know, people will look at it and try and do things with it. but we don't get asked about it by clients our institutional clients, we have pension funds around the world as clients honestly, they never ask about bitcoin. >> you're doing it for a reason though is it on the premise -- the premise has always been for bitcoin bulls that institutions will eventually come in charters for pension funds, et cetera, will be able to then invest and there would be -- >> we're doing it because it's

diversi diversifying trade 10,000 stocks in 600 different markets. and bitcoin clearly doesn't trade in line with anything else that makes it diversifying so it's fun to trade. that's it. >> just given where you said i wondser if you have a view on a separate area that's gotten so much attention which is the sort of volatility trading. obviously we had this kind of crescendo. as a strategy is it alive and well or is it less active than it had been >> it's definitely less active than it had been the reality is because of the size of those structured products, the front contract and the second contract on the big futures have been basically a false market for a reasonably long time. they were completely wagging the dog. and so we trade the third contract out and that's been a profitable

exercise it was profitable in february. volatility trading is an interesting opportunity. but you always have to be careful to look at an instrument and make sure it's trading for sensible reasons rather than because one particular thing is driving it >> what's your take on what is behind this volatility i know there are so many different answers possibly in a combination of things, really people will say syria now and the possibility of a trade war but really if you take a look at when the volatility started, it happened about two months ago when the fed released its jobs report and there was a hotter than expected wage inflation number and that was long before the threat of tariffs or syria >> look, i think there's a lot of noise but if you look at the stuff that's actually -- the reality last year was a weird market the idea we go through with that low volatility is not normal mid-high teens is normal for stock markets late in cycle. and you can debate how late in the cycle we are but it's been a long cycle we're definitely not early in

the cycle, right late in the cycle you'd expect volatility to be on average higher sop really what we're seeing now in a sort of -- you get 19%, 20% equity that's pretty normal we all got used to seeing nothing happening. the reality is there's enough going on to 1%, 2% moves every day to just be seen as the norm. >> but is that really the norm over a stretch outside of a bear market or are we making up for the volatility last year >> there's a bit of making up for it there's a bit of as well as the people selling volatility and there was a lot of that that's getting taken out of the market. people got used to things being easy and low vol people are jumping around a bit. people are chasing the latest story.

but when you actually cut through it, high teens vol, 20% vol is not that unusual. i'm sure it will quiet down by the time we get into the summer. >> in terms of sectors, you mentioned people chasing trades. it seemed last year a lot of people were chasing a couple of big trades financials and technology. what's your sense of the trade now particularly with tech we've seen sort of a tone change and a reevaluation in terms of how they're valued >> so there's two things that could stop the bull market one is a significant change in the interest rate environment. which while we've had a driftup in short rates, we haven't seen much change in the long end. the other is if one of the fangs gets significant regulatory change and so some of what's causing volatility is wondering whether this facebook news is enough to

cause a significant change in the model. i don't think so if the department of justice really went after amazon and tried to go after them for monopolistic practices, that would change the equity market right? we'd have to reprice the big leaders suddenly wouldn't be there. >> you mentioned those two possibilities in the same breath do you view them as equally likely or unlikely do you put them in the same sort of plane >> both businesses which have benefitted from the natural monopolies you get in sort of the modern technology businesses we're seeing and interestingly -- i mean, i think it's very hard to work out team talk about breaking up facebook like they broke up at&t it's a natural monopoly and you break it up. one would be a winner incredibly quickly. i think you could look at amazon and see a much easier route where a regulator could go after

them do i think it's imminent or likely no but you could see that >> thanks for your time. >> it was a pleasure thank you. >> ceo of man group. >> jay wright just tweeted >> did he? >> yeah. mentioned me and our guys enjoying the morning on "squawk box. tweeting the photo of me like this rubbing it in. wow. villanova coach. basketball >> thank you, joe, for the explanation. the basketball really cleared it up when we come back -- i'm thinking andrew's still here coming up, speaking to the last u.s. ambassador that served in syria robert ford. stay tun u' wchg "squawk box" on cnbc

welcome back to "squawk box. want to check on futures we got the bank trade early strengthening. s&p looking to be up by 16 points dow up 165 jpmorgan, citi, wells fargo all beating on the top and bottom lines. all trading higher at about 1.5% right now. the trump administration

weighing a possible military response in syria. let's bring in robert ford, the last u.s. ambassador to serve in syria. he's now a senior fellow in the yale jackson institute's kissinger fellow what a difficult situation to try to navigate. i'm totally torn i have no idea what the right move is. do you >> well, syria's a horrible human tragedy. half the population is displaced out of their homes half a million dead. i think we have to be realistic. we as a country, the united states, we can't fix syria i think now we have to think more about whether or not it's useful to deter bashar al assad from using chemical weapons again since we don't want assad to set an example for other dictators of authoritarian

governments around the world i hate to think of the lesson, for example, that the leader in north korea is drawing from assad's use of chemical weapons. >> in terms of the world watching as that happens but anything short of regime change, people still die maybe they don't die from chemical weapons maybe they die -- children die some other way from this brutal regime why is anything short of regime change even worth undertaking if they're not going to finish it and it's almost impossible with the backing of russia because who knows what type of conflict you could be entering into at that point it's just -- it seems very difficult. >> well, it is very difficult. and i think you hit the nail on the head russia has forces on the ground. ground troops as well as its air force deployed inside syria.

and they're not going to allow the united states to overthrow assad. the only way we could overthrow assad is if we're willing to risk world war iii with russia and i doubt there are very many americans willing to take that risk stopping the use of chemical weapons, however, is a different issue. you don't have to remove bashar al assad from the presidential palace in order to deter him from using chemical weapons again. and i think that deterrent is important when we think about the example that is being set in syria about chemical weapons >> okay. so when -- do you think that this chain of command or at least premeditation goes all the way to putin in terms of assad using chemical weapons is russia and putin complicit in

this happening >> no, i doubt that very much. i don't think bashar al assad on an hour-by-hour basis, i don't think bashar on a day-by-day basis checks in with russian commanders much less putin on what his military units are going to do. >> if we decided to make a statement and really hurt assad but short of regime change, you think russia and putin would understand that and accept that? that it's something we need to do are they on our side in terms of chemical weapons >> i don't think they're on our side i think they have a higher threshold for tolerance on chemical weapons than we do. i notice that secretary of defense mattis yesterday said on the hill if he used chemical weapons on his own people last week, he would use them on american forces in eastern syria in the future.

we have a low threshold for tolerance on chemical weapons. but that said, i think there is a way to structure actions that inflict pain on bashar al assad so that he thinks twice, he thinks three times before he uses chemical weapons again. and we can do that in a way that doesn't trigger, doesn't provoke any harsh russian reaction >> okay. all right. now we got to, you know, if they let inspectors in we've got to wait for the inspectors to get out of harm's way before we do anything i don't know anyway, appreciate your time, mr. ambassador thank you. >> thank you when we return, about 45 minutes to go until the opening bell on wall street. we'll watch what jim cramer is watching this morning. as we head to break, check out the big banks. even the ones that haven't reported today, they're trading in the green we'll be right back.

♪ j wright weeded that out

meanwhile, we want andrew. andrew they're jumping around behind us with the signs about andrew. it has nothing to do with it. >> they're not demanding andrew. it's something about -- we're going to ignore that never mind. >> i take no offense. >> yeah, exactly let's get down to the new york stock exchange the villanova guys were in here. i had the trophy here, jeff, and i photo bombed it and jay wright tweeted -- >> look at my expression. >> it's never going to happen! maybe someday. anyway, you're used to rubbing elbows with the eagles and the wildcats and everything else, but i have a -- i got a thrill from it, jim. >> i brought jae to the opening bell when they won two years ago, and congratulations on getting in this year i hope it's not because he's meeting with the knicks after he

sees you. >> he's in italy he tweeted it, i think, because i really wanted and, you know, i asked for dontae who i have a love/hate relationship with him. what an athlete but he killed them he was horrible. anyway what about the banks, jim? you like all of them >> i like jpmorgan best. king jamie or chairman jamie, i guess. >> president jamie, because president for life he has an fdr thing going. but the numbers were unbelievable the banking part was 22. it was a fabulous quarter. what can i say he did it again. i like the citi pretty good. wells fargo. i don't really like it but wells is back to being sainted again because they didn't put in the charge they might have to pay for the government and i don't know pnc was surprised at. >> did you see nick hayman

hear what he was >> crazy nick. he thinks it's bottom. i like all the different things flannery is doing. >> i hadn't thought of the rise in interest rates helping ge manage that underfunded pension. he had some numbers that were staggering that just a quarter -- 25 basis point move makes a difference on being able to handle that >> very true they've got a lot of unfunded that could go diminish david yesterday was saying long-term care it looks like they've got it under control it's hard to get it under control. these are thesises that you feel nick is going to be right. >> you would be talking about david favor of recent jeopardy fame did you know that? two or three days ago was the roof caved in question on -- i don't know if you saw that

did anyone tell him that >> no. >> yeah i think it was monda night or something there was a david favor question on "jeopardy. >> did the person get it right >> the person did get it right the person did get it. >> and the answer was "who was david favor? >> favor wrote a book called "the roof caved in" and it was about what i stuck it to andrew because he wrote "too big to fail." >> that's an insult. that's a billion dollar insult. >> far be it from me to point that out. >> internal rivalry among various anchors. i buy into that. >> it's fun, jim. >> it might have been too easy a question. >> yeah. it was. >> david 500. >> he won when he was on, right? >> oh, he ran the -- he ran the

table, david. >> right there was nobody like him. >> wolf blitzer was doing well until they asked him to spell his last name. then he stumbled around. thank you, jim see you at the top of the hour coming up on "squawk on the street" don't miss john boehner. his new gig advising a medical marijuana. he was once opposed but he changed his mind about it because a lot of medicinal uses across the board, and it seems to be. 10:30 a.m. eastern time. when we come back -- oh, a new oandiment is causing an up rr on twitter we'll be right back. in an unc? pgim sees alpha in real assets. like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses.

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at the heart of it, we are really changing the way that students learn. and i can't wait for ten years from now when i get to talk to them again and see, like, who they are. ♪ check this out we were speaking to someone in durham meanwhile a restaurant in durham, north carolina currently serving a burger with a giant

hairy dra hairy taurangala it costs $30 but you have to win a daily lottery to try it. there are only 18 zebra trarch wills available. other burgers include alligator, python, bison, turtle, and bugs. and i remember it. you can't sit down -- you can sit down but you have to order and take it to your seat. >> i would eat that. >> you would >> yeah. why not. it's probably like a chip. pop it in your mouth and it's down. >> there arepeople that think bugs will be our diet at some point. >> could be. maybe this will help this new condiment heinz brand is causing an

uproar users can't agree if it's a dream come true or disgusting. it's a blend of mayo and ketchup. it's only available in the middle east. it's been popular for years in utah it's called fry sauce. >> all right time to go make sure you join us on monday. "squawk on the street" is next be warned. good friday morning. welcome to "squawk on the street." s&p looks to go positive for the year at the opening bell futures are up stocks up around a three-week high earning seasons kicks off with the banks. markets watching