oil prices this morning getting some pressure after donald trump tweeted about opec right now wti at 67.86 and the ten-year note we've been watching closely is yielding 2.99 drum roll, please. >> i think it's worth noting >> yeah. mike, thank you for everything. >> thank you that does it for us. make sure you join us on monday. right now time for "squawk on the street." welcome to "squawk on the street." stocks are shooting for the second positive week in a row. haven't done that since february, as earnings takes center stage from ge along with a presidential tweet about a new asset class now. oil. we'll get to that and more europe is mixed. keeping an eye on the yield curve after yesterday's

steepening we begin with ge giving shareholders reason for hope standing by the 2018 outlook has the blue chip industrial finally turned a corner? shares up 6% premarket. >> plus, the president blasting opec with crude oil prices hitting a three-year high this week president trump calling them artificially very high and saying it will not be accepted and regulators set to slap wells fargo with a $1 billion penalty. marks the toughest action the trump administration has taken against a major bank we'll talk about that in a bit first, ge rising in the premarket. better than expected first quarter results. john flannery said aviation, health care, power and oil and gas continue to be challenging since ge is on track to exceed the cost reduction goal of $2 billion this year. double digit profit growth at transportation and aviation and health care but profit power down 38. >> aviation is so powerful, david. it'slifting all.

ge did not have the organic growth that honeywell had in aviation they had good growth what i would point out most important is their guys steve. and steve's number

zblild say if you look at the conference call. their verbiage with ge oil and gas will turn. if oil and gas will turn it's just power if you can isolate power as a problem and guide things down, john flannery's old business health care doing very well. then you say bottom. now do you say rally that's different that's different a bottom it just gets caused by john is no longer out there. john inch he would love to hear what he says he's obviously still not with

deutsche i think this is is a sound thrashing of what he has to say. i think it's time for him to go to holt. >> i like when you get in front of the -- >> yeah. you're telling what he should be doing. >> yeah. wear a tie and go out and go sell >> it's important to see the language used about future moves. remember it was the last earnings call where flannery made it clear, i think, that everything is i believe we'll hear more within the next month about plans in that area particularly, jim, as it relates to aerospace and what, you know, not necessarily that they're going to announce anything

any deal i don't mean to imply that but simply the value of what may could conceivably do in separating some of these. >> great. >> it's the golden goose. >> yeah. >> what if you did, you know, if you did a reverse trust deal for aerospace? >> huge. >> huge. >> how much is aerospace worth on its own >> oh, my. >> break it apart. take the numbers and put them up honey well what do we get to >> i don't know. it's the fastest growing it's a major secular growth industrial they're using american accounting we have to google what is it adjusted three cash done

no it looks like other companies check out the currency on wells fargo announcing the settlement. billion dollar penalty against the bank they'll credit $500 billion collected by the occ toward the satisfaction of the fine this goes back to related to auto insurance and mortgage lending abuses we've said before it's the toughest action taken by the white house of this administration to date and probably the largest fine in occ history. >> i know that the president doesn't like piñata fargo i think that's a bad number but there is pf -- i'm sorry

that's pinnacle foods. people get confused. this is a little outside but wells fargo makes a money every day they turn the lights on. i agree with jim stewart this one is overdone at this point. >> really? >> yeah. you have been among the harshest critics of the bank. >> when everybody else is hitting a piñata i go the other way. >> yeah. i do i feel like is there any other organization, i mean, the teachers are coming out against them when the boy scots come out against them i'm going to go bye. >> why >> beyond the fact you like it for yourself and the candy why else why do you feel like that? >> rate hikes, man. >> oh, jeez. you can't necessarily be necessary. even though you've been negative. >> going for a long time. >> yeah. they've done a house cleaning. they've been beaten up

they had the kitchen sink thrown at them. there's only so many things you can throw at a company i mean, who else is left what government regulation you know, what >> all right and this, in no way, you think it's a shift in the deg relation toward banks no. >> look, this isoutside. if you're out there as a wells fargo employee selling something, isn't life a little more difficult for you >> i think it's a little like chipotle and it goes away over time because america is a short memory i mean, look i deal with wells it's like i got to find a way to get away from wells

more broadly on the bank trade you said earlier, i think it was last friday we started to get earnings that if the banks couldn't hold on some of these prints that the trade would be finished for awhile. so somewhat the verdict on that? >> yesterday they had such a good move in the face of dramatic selling everywhere. because of the move to 3 perhaps on the ten year. this is now their timing now they're in a situation where i've got to tell you, the banks are would be amazing and jpmorgan is finally being rewarded goldman sachs sell window closing. i think it's going to take off i felt the action yesterday was incredibly constructive. the group is back. it has to diajest and they don't

have any exposure to zte and china. they're not allowed to merge anyway. >> no. zte and china. that's a big story we've sort of let slip by this week. >> not me. >> no. >> we haven't spent a lot of time talking about it. >> yeah. all the companies caught in the trade cross fire in tech i made a list. zte, call com, alphabet. >> and nxp, of course. >> yeah. >> with call com as we talked about. the journal had an important story today detailing all the way zte as a result of follow not being allowed to buy the android software or chips from qualcomm they're one of the fourth largest hand sets here in the u.s. >> yeah. the regulatory -- the way that the president -- the way that the government did this regulatory action is brutal. the zte executives who buy got

rewarded our government is a saying we're done with this. >> yeah. it ups the ante on both sides when it comes to the fight over not just trade but particularly technology/intellectual property and nxp wroled into that which we talked about. the next move the chinese makes, there's a boycott of one of our companies that will target one of our companies. >> yeah. >> that would be bad, jim. >> yes, it would be. i'm telling you. this is the biggest risk to the market. >> there is a piece out this morning from the times that boycotting u.s. goods would not be paying for china. but not inconceivable >>well, you think boycott zte was not pain free for some of our companies. so this is where you have to pain in both countries there are dictatorships. they don't have to did, you

know, the chairman over there. he's chairman now. not president. >> see, i thought you meant chairman wu. >> no. >> a lifetime leader now i have to leave. >> i think it's the chairman when we come back, the president focussing not on china today but opec in a tweet. oil prices did fall on his tweet this morning we'll talk about that and we'll hear what formertreasury secretary summers has to say about the economy, tariffs, and trade. we'll have the exclusive interview. again, trying for a second positive week in a row futures mixed now. "squawk on the street" continues in a moment. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry

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xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. as opec officials meet in saudi arabia, oil prices are erasing earlier gains as the president criticizes the cartel in a tweet looks like opec is at it again record amounts of oil all over the place including the fully loaded ships at sea. oil prices are artificially high no good and will not be accepted a lot of talk this week about whether the saudis want 80

a big story yesterday in the journal. congestion and high flying disruption. >> this release i'm going to read it rather than -- >> they say the worldwide production base has started to slow those are year over year production declines norway, mexico, china, indonesia, libya in full capacity venezuela production free fall u.s. shale has fraction. they're saying saudi is basically and russia have any capacity left. so you can argue that is just them saying listen everybody has to drill more. you could say that the president is up against countries that aren't spending. or else oil will go higher it's a supply issue. >> i don't know what that means. will not be accepted

i'm not sure how he can. >> when i interviewed him i started "mad money" he said it wouldn't be accepted but the schluberger guys know more than anyone the countries haven't been drilled and have to drill. if venezuela free falls. >> where are we now, jim, in terms of the production. they say there are problems. it's starting to slow. i don't see it at all. they say there's production challenges in u.s. shale that are emerging that well to well interest potential grower production. infrastructure constraints they're not as bullish on the u.s. as i would have liked i they didn't want to hear that. but slumberche needs to see it

up they're not getting it are you tweeting something >> no. i'm texting. >> what? >> one of my oil experts >> one of your many oil experts. >> i only have a couple. unlike you. >> are you getting your oil checked for your car >> i'm wondering about the ships full of oil and asking where are they are there ships full of oil? >> you could have a giant one. >> north american tankers? at one point, they suggested i get married on a tanker. >> that would have been -- >> yeah. like mad max. >> yeah. >> wasn't that a tanker? >> yeah. you're right i just thought it did have -- remember there were 508 people at my wedding. >> i remember. >> you needed a swiss super max. >> i liked the first and the

second i'm talking about, you know -- forget it. >> the first one >> that's a good call. tariffs and sanctions and things into a big basket here is what happened on mad last night. >> the president needs to fulfill his commitment we must not let the date of may 1st slip any further frankly, his credibility and the credibility of americans on the line here. we expect him to do what he's promised to do we expect him to honor the data may 1st and install either tariffs or quotas to those countries that haven't been able to negotiate a separate agreement on that date. >> and the president said there's going to be a little pain that's why you have it at a three-year high. >> i thought that john was almost there could be wayward. and, you know, you got to stick by it. one of the reasons is the more

than 25% of our steel in the first quarter was imported or dumped. and it is china. it is china. china is over producing still radically. so nothing really -- this quarter did not have the tariffs. they need the tariffs. they're expanding like mad and the production in china is zero. >> i'm told they're all empty. the tankers. they're empty. we'll take a look but that's what i'm told. >> this is significant. >> no, it is actually trusted. >> yes it's significant this is a battle we've got a battle going on here china is not going to stop there are problems to shortages. what i'm saying is prices will go up. oil, steel but steel not as much as people think. you pay the tariffs and you get to come in. >> you've seen cocoa and

soybeans. >> cocoa is up 48% for the year. >> yeah. that's a problem >>well, i like chocolate milk. >> somebody took hershey to sell this week. >> that's why i like quinoa. >> we'll get cramer's mad dash and count down to the opening bell in a few minutes. take a look at the premarket on this friday.

six and a half minutes before we get trading. last trading session of the week, if you like to keep track. it's friday! >> crushed like a bug on a windshield that's how i feel after the revision downward for apple. she's saying there is going to be a true estimate cut buy it after what is basically the shortfall. so, you know, this is going to be an acknowledged shortfall by $150 billion coming back at you. but this is the one that really scared me. >> yeah. >> q 3 consensus will be meaningfully lower david, the biggest bull basically says bad quarter. >> all right now the reason is -- >> china. >> china. >> but remember, also, the biggest fear is boycott. >> right.

>> it's weak already and the chinese, from what i can tell, they can try to figure out what can hurt us the most. when you take the biggest cap. you take $800 billion -- $850 billion. and alphabet clustered with microsoft and amazon they're all at $750 billion. the race to a trillion david, this was a two-to-one shot and now i'll make it ten-to-one shot. >> what's your favorite? i bet it starts with an "a." >> yes. >> we'll let people figure it at home we have an opening bell less than five minutes away stay with us i'm not a bigwig.

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open beat by a penny but the guide, as weak as they say, some of the shipments shifted in the second half. >> that was shocking, frankly. a lot overseas they don't have the right supply chain. some is a high quality problem but everything have been all systems go for sketchers i understand that the quarter would be good. i think the guide is shocking. and this is a stock that, once again, went from being investable to not. [ cheers and applause >> honey well 5% organ growth. projected to be one to three that stock will be up nicely. >> wow. >> that sketchers not quite as bat as philip international. >> were you in that conference call?

>> no. [ cheers and applause [ opening bell cloud data platform. software development is good i think it'll be a big hit it will matter on a day when apple is just -- >> wow it's not chinese either. >> no. >> no. >> yeah. a u.s. company going public. >> yeah. that's good.

yesterday was a big ipo. the latin america business of at&t couldn't see the light of day was supposed to come yesterday. >> another ipo it didn't make it. >> is it true that randall stephenson used the term "fang" in front of the judge? >> yes. >> yeah. >> ge will lead the dow. the spoke has an amazing stat today. since 2002, only one time has ge closed higher than it opened on q1 results, believe it or not. that's 16 years. we'll see if it can close higher. >> that's great. >> yeah. >> wow look at apple. apple is devastating. >> apple is the big drag. >> i like the company so much but this is not going to be a great quarter. remember, the stock was in the 160 during the critical break down last month, and it's not -- >> i thought this quarter was

supposed to be about capital return. >> $150 billion. >> right. >> that's i think that's why katie will be right from morgan stanley after this decline but, you have to suffer through the decline. and this is america's stock. it's america's stock, david. it's like america's team, the cowboys. >> they haven't had a good year in awhile. that's not true. they made the playoffs a couple of times but somewhat disappointing. you seem to believe this is an important call that should be watched more closely >> she's been right every quarter. katie has been right every quarter. she's phenomenal when i read her what is clearly a cautious note. i said all the people who have been saying the negative things will be right. so let it come in and, remember, don't trade. >> so own it don't trade is in intact. >> you have to take pain you have got to take pain. have you opened the ten? taken the ten out of the box >> i haven't used the ten.

my son is complaining because installment plan is over i'm not paying the $30 anymore he has a six he's complaining. >> that's a high quality problem. >> i know. >> said his home button doesn't work anymore. >> my daughter is on the five. i said what do you need the ten for? >> yeah. >> they don't have cable, either. >> i want to ask you about consumer brands at large because you got uni labor saying we've gone from all price and no volume to all volume and no price. >> yeah. >> harley has had a miserable year so far. now we got mattell, fourth ceo in four years. >> yeah. that was devastating the previous ceo, i thought, had gained obviously they need to sell to has b hasbro if they want to make any none i think that's now off the table. that was devastating.

>> worse than philip morris? >> no. philip morris was like a benchmark. before we get started, we want to give you -- know how they give you a disclosure. sell our stock and securities. that was hard. but the proctor was like, okay, we're going to get to why grooming is so bad we'll get to why that division is so bad. that division was so bad it was a tough call to listen to we have two calls yesterday that were png and pnm. >> some people wondering about allergen yesterday bloomberg reporting the possibility that japan's decatur will come back for shire it's an irish company. trades in the uk they may come to them and say you have to make another statement. but allergan came out, as a

result, of being contacted saying you have to make a statement now after reuters said there was interested in buying shire. they did it and then we reported not long after they were not going to follow through with an offer. and they said we're off. we're done we're not doing anything. >> that was insanity. >> the board saying we're not doing this stock tipping down it's gaining back a bit today. you can see where shire is, too. it backed off, of course it's very difficult. >> i thought allergan was done revance is the botox only twice a year. by the way, can i mention that ge, you talked about what ge has to do. you know, sometimes it's like the ge comes out of the box. steve will be with us in a few minutes. >> nice.

>> yeah. ten minutes from now steve toosa. the biggest bear will come on our show, david. >> why we're citing sources on allergan when the company said sorry, guys. >> they're great sources. >> yeah. speaking of bids pinnacle, you mentioned it a couple of times. it's up this morning taking a significant position in the company. 9.4% stake and they wanted to have to discussions. they want to have discussions with the board of directors and managers to create values, so to speak. what does it mean? for the longest time it's been out there as a potential suitor. they came after them they couldn't agree on price pinnacle had an asset far too high is there something else going on i don't know we know jana is there. you have analyst guys weighing in on who could do a deal.

conagra is first heinz is anotherve birds eye ana is a huge believer in the frozen food aisle millennial's like frozen foods that's an attractive asset there. bob created that company it did a fabulous job. it was mars and now at k eurig. >> yeah. >> did you see that? >> yeah. art is going to retire as chairman and ceo of 25 years of course, the founder of the company, as well will retire at the end of the year unclear who will become, at this point, the ceo earlier this week i looked at jeff smith because i know they havebeen mounting up they're having conversations smith would not comment specifically on his efforts.

here is what he had to say. >> the company we have a position at. we have not disclosed publicly if we have nominated directors and we have been having conversations with a company and we're hoping like many other situations that we'll be able to work things out without having to do anything. >> would you like to see the ceo gone >> i think there's some questions around the ceo but i'm not going to talk about those now. >> unclear whether he's done, though, with those efforts we'll see in the coming days by the way, this morning wells fargo comes out a report that said when macerich announced on february 1st that ontario teachers would not seek re-election at the 2018 meeting with their board seat. we saw an insider to explore alternatives to maximize value we learned ontario has engaged an advisor to review

alternatives they misinterpreted the action they thought they're giving up but it's not it's possible you get a recomposition of the board a ceo search underway. there are those that hope, perhaps there is interest from a third party and making a purchase we'll see. >> i saw that. i thought we'll see what david says about this. very interesting very positive. should be up more. interesting. finally, twitter gets a second upgrade for the week. this time at mkm earlier it was morgan stanley. jim, i think the price target goes to 40, which is a big jump. >> yes. >> and talk about sustainability of networks competitive position i thought that one of the most compelling things about the upgrade is twitter is here to stay was it going away? not that i know of remember when andrew had a comment about twitter. it's going down because it should go down i would like to know is it going

up because it should go up because i regard that as the reason that is effective. >> we'll watch twitter dow down 35. ge the s&p leader. you don't get it all the time >>well, we opened mixed. i think the important thing is the earnings picture looks good today. not a lot of sell on the news. we've seen it a lot. we'll take a look at the sectors here industrials leading the way. honey well is hoping the airlines are moving to the upside banks up a little bit. consumer discretionary on the flat side. materials also flat. tech is a little weak and a lot, of course, because of apple. a lot of concerns about the iphone 10. take a look at apple and some of the apple suppliers out there like samsung, lg display, some of the other ones. sunny optical which trades over in taiwan. they're down overseas notedly. china, by the way, closed near the lows for the year. i should note that oil service mixed today.

schlumberger trading to the upside opened positive. the other ones are slightly to the downside i think the key story and jim referenced the story there was interesting. i think they had the most important sense. he said it's becoming increase bli likely you put it up that the industry will face growing supply challenges over the coming years and a significant increase in global e & p investment will be required to minimize the impending deficit. folks, this is oil speak it means they think prices are going higher that's the key here. of course, i think it's real vantd in light of what president trump was tweeting this morning. a lot of questions about these commodity moves up that we've seen recently. there's a whole universe of ways you can invest in commodity exchange traded funds out there. if you look at them, the moves have been fairly modest. one exception is in the exploration of production space. those are oil and stocks, as you can see, for the month of april up 10% silver had a small move to the upside

there are other atf out there like the natural resource. oil and gas producers in etf that's up 4% timber companies is up 4%. the s&p up about 2% this month outside of oil and gas stocks we have been emphasizing the big move up in some of the commodity-type investments has been fairly modest right now elsewhere i've been noting how strong the e brokers have been they had a fantastic quarter the price simply because the numbers have been spectacular for them take a look at the daily average for the revenue trades they're up 45% we had a lot of interest in trading around the volatility in february a lot of interest in bitcoin-related stocks lower volumes, though.

april so far volumes notedly lower in february and march. s&p companies reporting so far we got almost out of them. the numbers are terrific overall. 20% growth i think it will go down to 20 eventually 20% across the board they're not dropping any of the estimates for the full year. essential essentially 20% for the year. >> bob, thank you. >> i want to get back xerox. a lot going on this week we haven't covered. but new news to share with you of course, for those tuning in here xerox announcing the deal at the end of january under which it would essentially sell control of the company by dissolving their joint venture in asia. it has allowed a great deal of consternation and antipathy from the largest shareholders

yesterday in new york state quarter in what was essentially an open counter. apparently not many people listening. the lawyers for fuji said the following. that xerox and fuji are in active talks to renegotiate that transaction. remember, again the transaction i'm talking about, which involves control going to fuji the payment of a special dividends to xerox shareholders which is not well received at all. that is the case the triplanscript may be comingt from the court itself. people want to look at it closely. again, the fuji lawyer quoted as saying we're in talks an negotiations to renegotiate that transaction. that said, it's not clear, again, according to people familiar with the situation they're going to be able to

reach a new deal would it result in an outright take over? possibly possibly an increase in the dividends portion. very significantly again it's a possibility but in court yesterday those lawyers for fuji saying that there's a lot of things that came out this week a lot of things in terms of supporting the contention that xerox handled the deal to fuji to keep his job. their words and not mine and coming out and saying they say in texas xerox and fuji are swinging a short stick hard in this case. i'm not sure what that means they're concerned with

admissions why are he and mr. jensonredacting. we'll keep an eye on xerox they're up a bit. >> yeah. >> i want to introduce steve tusa let's bring him on steve tusa you have a sell jpmorgan a sell on general electric does it make sense to sell the stock after this quarter >> caller: hey, jim. thank you for the kind words i appreciateit there's absolutely no change to this year. this deal, look, it's back to

the future a little bit. the reported headline profits were good. the eps number, you know, looks very good. when you dig into the details and you look at what they're saying about the feature of the business is i don't -- i kind of scratch my head as to how the fanatic today is maintaining guidance on the business, power is definitely worse than expected they cut about $500 million or, you know, five cents out of that business aviation which is the core of the debate benefitted they had lower shipments of wheat that will reverse in the second half that's almost up $500 million flip plus in profit it requires about, you know, 10% more profit growth per, you know, per quarter. this is almost as good as it gets for aviation. and lastly when we look at pension and what they're adjusting out on pension, you know, last year was around 17 cents. they're looking for more of a 24

cent run rate on pension adjustments. so, you know, you look at the underlying quality of this headline number, it looks like they should have really cut guidance we continue to believe there's downside to the numbers. we look out for the rest of the year and what is em blamatic of the low quality number is free cash flow $1.7 billion of negative free cash flow is the second worse free cash flow performance that we have over the last five years. the worst was last year. and it does suggest a low end of the 6 to $7 billion free cash flow number. so if you take that number, the $6 billion in free cash flow, and they disclose today that portfolio asset failed are good. they're going to lose about a billion of free cash you are now down to a cash flow number per share that's roughly in kind of the 55

to 60 cent range which is right around 4% free cash flow yield or comfortably north of 20 times. higher quality companies like honeywell and 3m, upx, for example, are trading at 6% free cash flow yields if you apply that to the lower free cash flow number you get $10 to $11 per share which is our price target it's simple math now coming into view this is back to the optics and i want to go back to the adjustment i know you said earlier today i do listen to you, as well. you said the numbers here are more in line with what other companies report i would beg to differ. 2017, for example, had a gap loss of about 99 cents okay gap loss of 99 to $1.00 exactly. >> steve, let me -- let me just

interrupt you for a second if you think these are in line with other companies that have reported look at honeywell, for example -- >> no, i would never say a honeywell. but let me ask you, it sounds -- would you think that in the second half, need a capital race would they need to be able to cut the dividend can they have any optionality. david was talking about doing a reverse mortgage trust is this so bad in the second half that this is an opportunity to sell it again >> the cash they need above and beyond the dividend to transform this company is not there, especially if they sell down assets to ameliorate the ratings agency they made it clear last week the $20 billion in asset sale value has to go forward shoring up the pension or the balance sheet and so to the extent you spin something off or you do something like that, you're going to have to get significant value in return.

ultimately, that is dilutive to what you see today so once again, just like the $2 was, the dollar earnings is not embl emblematic of value here >> i'm not going to -- i want to thank you for coming on. steve tusa of jpmorgan he has an underweight. obviously, not changing his view >> thanks to him dow down 25 points or so when we come back, tariffs, trade and the economy. sara eisen with an exclusive with former treasury secretary larry summers. taking a look at the move in treasuries today ten-year getting up to 2.94, awfully close. back in a minute

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and that will make it so it won't be a shock to anybody when it reports that's got to happen that's looking like what is going to happen and then the capital return you buy it after what will not be a shortfall by the end because everybody will know about it >> jim, what's on "mad" tonight? >> waste management. they recycle their paper in china. china not taking a lot of recycling. bryan jordan, first horizon. let's see how lending is going i want everyone to have a big weekend. next week is a big week. >> a lot of big names. >> i'll take some medicine so it will make it so i don't sleep. >> i thought you generated that naturally. >> i don't have time for 2 1/2 powers that's a waste of time >> jim, we'll see you tonight. on "mad money" 6:00 p. mcht eastern time when we come back, sara eisen's exclusive with larry summers with the dow down nearly 40

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♪ good friday morning. welcome back to "squawk on the street." i'm carl quintanilla with david faber. sara eisen is at the imf spring meeting in washington. we'll check in with sara in a minute with a special guest. ge continues to lead the s&p as they post their q1 results our road map begins there. shares of ge jumping as earnings beat on the top and bottom line. we'll dig through the report >> plus oil is taking a hit as the president goes after opec in a tweet accusing it of keeping oil prices artificially high we'll take you to the opec and non-opec leaders meeting in saudi arabia nike confirming three more departures at the top. details of what it means if anything, for the shares first up, though, straight to general electric reporting earnings that did beat the street on the top and bottom line john flannery says ge is seeing

signs of progress in aviation, health care and transportation all growing. however, conditions in the power industry are still challenging mike santoli it with us at post 9 to talk about the degree to which power stood out. not in a good way. >> definitely not. still the overhang psychologically along with all the kind of balance sheet and cash management issues that they've had. so i think the main takeaway has been not as bad as feared. people were kind of clenching up because there was going to be yet another revelation of something they hadn't anticipated. not there. if you can affirm 2018 numbers, i think that you can say, you know, fine maybe we've built in enough of the bad news for now but you've had a bunch of these sharp reversals high in this stock all the way down you can't say 5% or 6% move. people are sounding an all clear. the street is -- does not like the stock right now. it's in a way in a good reserve of skepticism that has to be worn away. >> steve tusa from jpmorgan who

has been accurate in terms of forecasting gloom and doom not changing his opinion he joined jim a few minutes ago in an interview. >> and i think what i got from that is ge didn't really lower the bar for itself for the remainder of this year it is still a show-me. there's still, you know, pulling a lot of levers to try to make the numbers and make things look as well as they can. doesn't give you a tail wind into not just better operating performance but dealing with the cash flow issues >> margins were up 60 basis points in terms of cost reduction, $800 million industrial nearly $400 million in power they say they're on track for $2 billion-plus in '18. >> controlling what they can control. probably doing well on that front. that's maybe the easiest part to extrapolate and say that's probably going to be the story for a little while again, i go back to the field position on this stock and how

decimated it's become. it's felt washed out it's really only the index funds that own this anymore. only five analysts on the street recommending it. at some point you know the stock is going to turn before the results really look good and the question is always, do they look as bad as they're going to get >> i haven't monitored the call. was there any insight from there? it can become certainly important. we'll get more on the conference call as well >> shares are up 7% at the open. we're well off that. you mentioned the index funds. if it's removed from at least one key index, how material is that >> if it's removed from the dow, not an issue at all. not a lot of indexed money in the dow. that's to me much more symbolic of its status which i think already is reflected in how, you know, institutional investors view it. it's still a big company still well over $100 billion market cap right now >> yes >> if you wanted to replace it in the dow with something of

comparable economic importance and $125 billion -- it's not as if there's a list of 20 companies that you would swap out. so i don't think that's about causing people to hit a sell trigger because it was knocked out but it would reflect the fact that -- and, of course, if the company kind of shrinks through divestitures or spinoff breakup. that could be another way it could exit the dow down the road >> a lot more to talk about from wells fargo to honeywell oil is trading lower president trump slamming opec this morning in a tweet saying it looks like opec is at it again. record amounts of oil all over the play, including the fully loaded ships at sea. oil prices are artificially high no good and will not be accepted our steve sedgwick is live at the opec and non-opec members meeting and joins us with more morning, steve >> yeah, good morning.

this meeting had virtually wrapped up by the time we all saw the president trump tweet. not a lot of people want to speak on the record but they did say and i had spoken to the russian oil minister earlier about u.s. shares saying as a byproduct of what we'd done, getting prices higher, we have saved the u.s. shale industry, that's their view, not mine. say were saying shale is in a lot more competitive position now. it's fighting against opec on international markets, exporting more oil from the u.s. than it's done for a long time and creating a form of u.s. energy independence that's the view from opec who see the rise of shale as a necessary evil for what they're doing to prop up prices for their own benefit as well. i also spoke to the russian oil minister about the sanctions regime at the moment concern about what the eu and u.s. is doing. he had a very interesting take on what he thinks is a form of economic competition via sanctions. let's listen in to alexander novak, the russian oil minister. >> translator: we can see here

the example of noneconomic competition methods being used to compete in the markets. unfortunately, this mechanism is being used with increased frequency, and it poses significant risks. big risks for the world economy as a whole and for the energy sector in particular >> poses significant risk for the world economy and indeed for the industry in particular this is an opec meeting. the joint ministerial monitoring committee that they were designed to pat themselves on the back because they have better compliance than they possibly expected. we all talked about years of opec cheating way before this current agreement. they have higher prices which they think means there will be more investment in the u.s. and in the global oil infrastructure as well. and they feel more comfortable about the state of global adventurism. they thought they were way too high above the five-year average at the start of this agreement in 2017. now they are saying they are at a more acceptable level but the

saudis really want to continue some former deal to keep them at the level they are to do that they may need to change the parameters because they've come right back to the five-year average. it's going to be about systemulatie inine ining at cur. back to you guys >> in this country they sometimes call it moving the goal posts we'll see how much success they have with it, steve. great story. steve sedgwick today in jeddah at the opec meeting. we'll have a lot more on the big moves in oil coming up first to sara at the imf spring meetings in washington. good morning, sara >> good morning, david well, we are lucky to be here today to get some of the top minds in economics and global finance to react to some of the day's news the ten-year yield hitting the highest level since february we'll talk to larry summers, the former treasury secretary, about what message the bond market is

sending. he's also been one of the most vocal and outspoken critics of this administration's economic policies we've also got the news today of the $1 billion settlement with wells fargo and the right guest there as well. tim adams who is in charge of the institute for international finance. it's the group that represents all of gloenl banks, insurance companies, pension funds we'll talk about the era of bacbank deregulation and this new fine and what's ahead on interest rates and fed policy later, big interview in the day, we'll talk to fed governor lael braynard she's the last governor appointed by president obama we'll talk about the changing shape of the fed and what her outlook is it's a cnbc exclusive, guys. couldn't be more excited to be here today of course, we've got it all covered for you from the global economy, rising inflation expectations to trade wars, david. >> not to mention footwear

because that's what we also come to you on frequently yesterday we talked and you were reporting on those departures at nike overnight i guess there's been even more. what do you have for us in terms of what you can tell us with this exodus apparently of executives at the top in this very important company >> more top talent is leaving nike we can talk about more high-level departures here a note from analyst sam pozer of susquehanna yesterday. three more executives we hadn't reported on have also left the company recently we confirmed the moves with a nike spokesman it brings the number of top level departures if you are keeping track to nine over the last 35 days latest exit includes the chief marketing director at converse, and the director of global consumer knowledge the sources are telling us that one of the executives left for a competit competitor unclear whether it's related to some of the misconduct and culture issues that we have been

reporting over, but the bottom line is this high-level exodus continues and is surprising a lot of people at just how deep-rooted it got obviously, the biggest departure was trevor edwards, the nike president, who departed about a month ago. it started as just a leaked internal hr complaint about a month ago and it's now spiralled into a much more widespread issue at the company affecting many of the key areas of nike's business like footwear. what's interesting is that wall street doesn't seem to care, yet. the stock has barely moved on all of this and the key there is that the ceo mark parker is still firmly in charge he came out a few weeks ago and is committed to lead his company through 2020 and, david, this is not like under armour which interestingly has also seen an executive exodus over the last year the difference there is that coincided with a major business issue, a slowdown in revenues and questions about whether

under armour can continue to grow what i can report is that the buy side and mutual funds are making a lot of calls on this, even though the analyst community as a whole hasn't started to question the stock. as this grows you have to wonder about the leadership at the top. there are clearly some oversight issues either nike has to come out and start explaining or they have to -- or investors will have to figure out what it means in terms of business continuity for a company just really starting to turn around >> i asked you this yesterday. you're obviously answering it again today. we haven't heard from anybody on the board about this, right? you would think that given this kind of executive departure, they would owe some sort of explanation, conversation with their large shareholders >> i think my sense is from what's going on inside nike is that they did not realize just how widespread and how deep this problem went all we know about what's going on is there were questions about the culture, the bro culture at

nike, competitive, diversity issues nike came out with a memo a few weeks ago saying that it doesn't have enough diversity in its upper ranks. it's going to work on that and be more transparent. beyond that, we don't know what's been alleged in terms of misconduct or why these people are living that's one question. and the other question is, who was managing this? where is the oversight on this and can nike really continue to engineer a turn around in north america which it promised investors in the last earnings when there are so many holes in the top talent and top management that's where analysts are going to start to question and we'll see what happens with the stock and whether nike is pressured to come out ahead of earnings in june to explain what's going on. >> we are going to hear from at least one analyst. one of the best well-known, sam poser of susquehanna will be on the half later on today. sara eisen at the imf meeting in washington when we come back, wells fargo settling with the consumer financial protection board and

the occ over loan abuses we'll get details on how much they paid and what it means for the future of regulation in banks. and then jim stewart of "the new york times" is with us why he says the bank has been beaten up enough close to session lows for the dow now down 77 points on this friday don't go away. did you understand all the fees you were paying? was your broker a fiduciary? were you satisfied with the attention you were getting? then i explain that being independent gives our firm more freedom to act in their best interests. independence lets us do that. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com adults are just kids with much, much better toys.

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you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back keeping a close eye on big moves in oil today the president going after opec this morning in a tweet.

jackie deangelis joins us for more on the etf spotlight. >> energy shares are taking a little hit this morning on the president's tweet. he says in part that what opec is doing will not be accepted. but the question is, what will be done about it we don't have the answer to that having said that, crude prices have been on a tear recently supported by opec but more because of geopolitical instability. crude is up 6.5% in the last month and holding well over $65 a barrel, even making a run for $70 at one point yesterday take a look at shares of the xle, the overall energy etf. and the xop, the oil and gas exploration fund they're both trading lower more than 3% and 4% respectively, however, in the last week. now energy was projected to be a bright spot for investors this year this time last year, crude prices were more than 30% lower. so market dynamics have definitely shifted here. industry experts say there's even more room to run higher,

that demand forecasts are robust and summer driving will push the commodity prices highe erer relations with russia will be key and production in venezuela. certain changes to the iran deal could push prices up, too. here in the united states, production has risen dover 10.5 million barrels a day but that number isn't rising as fast as they thought it would. and it's believed that the demand is going to be there to meet it, guys. back to you. >> jackie, thanks a lot for that that's an important story today. for more on it, let's bring in john kildof and helena croft at rbc capital. good morning to you both john, let's start here so many cross currents the production that jackie mentioned. there's demand you have these sanctions and now these rules that opec appears to want to break. what's the most important thing? >> well, i don't think the president's tweet this morning is going to necessarily short circuit this rally there are a lot of bullish

factors in this market most notably is the decline in venezuela. their state-run oil company is on the brink the production keeps falling that's been the differencemaker in opec's success in lowering global - >> venezuela >> venezuela has been the key all along. without them it's been a different story. the president is right to call these guys out they are conspiring to raise oil prices on the global market and it hurts u.s. consumers. a punch in the nose on opec doesn't bother me that much. >> this contention the president makes about tankers at sea full of oil, inventories apparently high doesn't seem to be supported by the facts. in my understanding, you have had a drawdown in inventories. there are no tankers actually full of oil. is, as john just mentioned, lack of production from venezuela or even mexico, angola, china, surging demand is that what you think as well >> it's a very strong fundamental backdrop for oil

chinese demand is very supportive of the market right now. venezuela's dropping like a lead balloon. yes, the opec policy has worked to drain inventories but the question is going forward when trump comes out there and says we're not going to stand for this is there going to be a u.s. spr release some of this is in his power i mean, he will have to make a decision in coming weeks on whether to pull the u.s. out of the iranian nuclear deal if he is very concerned about the up side for prices, he can keep the u.s. in the nuclear deal the whole question on venezuela. are we going to put additional sanctions on venezuela, escalate the declines if he's really concerned about price he's could forgo additional sanctions on venezuela. beyond that, the problem is for president trump, the market is now tight. >> so where are we headed, john? 80 feasible this year? >> no, i've been -- i've been listening to some of the commentary from steve sedgwick at the owek meeting. it's interesting the russians are finally squawking about the

deal their producers have been held back the deal could be starting to unravel. and the one thing about this trump tweet to keep in mind, he does seem to have a lot of sway with the saudis at the moment. they have been cozying up to us. if he can just pressure them to loosen the spigot a little bit, we go lower. save for that, the path for least resistance is still higher >> the rhetoric, though, has been net bullish when the energy minister says there's the capacity for higher prices we have been much higher than we are now. >> i'm sure their arms are in pain from patting themselves on the back over the past year. they speculated about letting the price go as high as $80 to $100 a barrel, which would be harmful to demand growth, which i don't think they necessarily realize. >> where are we on u.s. shale? can it be enough to carry the global supply curve? >> this is the whole issue a lot of people thought u.s. shale was superman if you have venezuelan production down a million barrels year on year, what we

could be looking at, shale, we need every last barrel of shale to keep prices from going higher venezuela is a critical difference in the market this year >> we're going to be seeing you more often, helena and john. >> thank president trump for that >> here we go again. thanks >> thank you when we come back, a look at the state of financials, bank regulation, a lot more the ceo of the institute of international finance tim adams is going to join sara at the imf spring meetings. plus former treasury secretary larry summers will weigh in on e tef s, trade and the sta o thu.s. economy "squawk on the street" will be right back play "do it like this".

[music plays] when everything's connected, it's simple. easy. awesome. ge is a big story. we're getting news out of the carl >> i just got off the phone with ge's cfo jamie miller. i asked her if looking at the results we got today and the reaction in the stock price whether this would be the quarter where investors ultimately longer term would

look back and say this is the turning point that maybe this is the bottom, given the broader turn around this new management team is trying to put in place she said in response they've made a number of investments in the company. you're starting to see some of that come through in these results. they're glad andoptimistic about the results but still a lot of work to do. for them it's about staying focused and delivering for the coming months and years ahead. stick with that $6 billion to $7 billion adjusted industrial cash flow outlook for 2018. i asked if this is going to be the year of the bottom in terms of the power business. it's been so hard hit in recent quarters and the company did say this morning that the industry is appearing softer than they had originally forecast. not giving a guide on that but it's lumpy they're starting to see some shifts in underlying operations, improvements in gas power and that she expects to see a services shift in the second half of this year. right now, they are expecting 30 gigawatt market, maybe less for

2018 in terms of divestitures, expecting to shed $20 billion in twe divestitures next year there is a strong line of sight that they expect to have some updates on how they are exiting some of these assets in the second quarter and second half of the year. also focused on running the company better and focused on cash focused on returns in terms of the dividend because there's been a lot of talk on whether this dividend could get cut again. we have no current plan to cut the dividend again in terms of different investigations under way, the company did take a reserve charge of $1.5 billion in its report this morning tied to those mortgages with wmc from precrisis. the subprime mortgages in terms of the s.e.c. investigations which are also under way, she said no update on that, that they're still ongoing. i also asked her about rising interest rates, whether this is

a tailwind or headwind for this company given the debt she said that it's a pure expense. it also creates more margin for the insurance liabilities so that ultimately they want to see these rates rising also asked her about tariffs and the impact of rising trade tensions with china. china is the biggest foreign market they're watching it very closely and at a macro level that they have a very globally diverse supply chain this is a very big deal. lastly, digital. doing a lot of cost-cutting. a lot of that coming out of digital. they're still focused on that but they're turning more to their expertise and streamlining what those operations look like. the shares of ge are at 4% >> big piece in "the times" about how much the company underestimated what it would take to truly become a digital industrial conglomerate. thanks, morgan a lot of information we'll watch the shares this morning and this afternoon for now back to sara eisen at the imf spring meeting in washington with a special guest.

hey, sara. >> hi again, carl. we have tim adams here the ceo of the iif, the institute for international finance. it represents all the global banks. also former treasury official. and a regular face here at the imf. >> thanks for having me back >> we have some news out of the banking world that wells fargo was fined for forcing the auto insurance and some unfair mortgage fees. what message is the administration sending here? >> i don't want to get into specifics about a particular firm but tim sloan is a great ceo, and i think he's going to take wells where they need to go the administration is trying to send a signal of accountability, and that's an appropriate signal to send. >> will they have an uphill battle when it comes to restoring their reputation >> i have tremendous confidence in tim sloan >> wells is a great member of the imf. >> we're coming off what was a very solid quarter nearly across the board.

and yet, didn't get quite embraced by wall street. >> maybe that was prepriced in and anticipation over the previous quarters we'd have good results, and we are. macro economy is good. tax cuts helped. the future is pretty bright. you certainly hear that here today. >> what about the underlying business the state of loan growth and credit cards and mortgage lending? >> having diversified firms is important. gives you diversification across and more balance we'll see loan growth pick up. the economy is expanding the outlook is positive. >> you mentioned the tax cuts and certainly we've started to see that what are the banks going to do with all the extra cash? is it going to go back into shareholder return >> some will be returned to shareholderers and should be we've been making that promise and they are the owners of the institution. a lot will be put to work for capital formation, building businesses, making loans which only helps expand economic growth >> you also like the imf put out a global growth forecast

look at debt levels like the imf. what are you finding as it relates to some of your biggest bank members >> globally we've been making noises for a long time a lot of debt. a big rise in global debt. we're at 320% of global gdp. debt is okay, but if it's for white elephant projects or for consumption, it's a problem. >> what about rising interest rates? what happens then? >> it does we'll see some servicing, highly leveraged debt face some struggles. a lot of emerging market debt out there. frontier markets have to roll their debt this year but we'll see rising rates >> we are seeing rising treasury yields as we speak big move up this week. what does that tell you? >> they're starting to pay attention to the fiscal tra jectry in the united states. it's abysmal we'll add $12 trillion to our debt debt to gdp in ten years will be close to where it was at the end of world war ii.

everyone keeps asking me, why are we pricing in what is really an unsustainable fiscal trajectory trillion-dollar deficits -- >> -- >> maybe they're starting to show up. but they should because the fiscal trajectory is not sustainable. >> what about fed policy it feels like we're starting to see some inflation expectations pick up. we could see more aggressive fed. >> where we are in the cycle with the fiscal expansion going on, you'd hope you'd see some pick-up in wages and inflation i think we're going to find out where it is. unemployment will probably have a three handle by summer so if you have a world class federal reserve. jay powell has been announced. >> you're uniquely positioned to talk about this. >> i like them all they're all colleagues of mine i've known jay almost 30 years this is an a-team. stan fisher and janet yellen were as well >> are we going to see a more hawkish policy tilt from this team >> it's too early to tell. it's very data dependendependen.

they'll do what's in the best interest and pursuft stable economic growth and pursuing full employment and price stability. >> one thing is the president starts to interject more on fed policy he mentioned rising interest rates as it relates to what he accused china and russia of currency manipulation. we've heard peter navarro go after the fed on policy. is that a concern? >> it's not helpful. hopefully your old colleague larry kudlow can help counsel them on why that's not helpful the fed independence is paramount. they need to let jay do his job. >> biggest risk according to the imf is trade tensions rising >> we hear it from all of our members and in the hallways here >> the bankers are worried about it >> all financial intermediaries are worried about it there's a lot of noise out there. people just doepn't know what is noise and what is real no one wins from a trade war >> someone like jamie dimon came

out originally positive about this administration's economic policies they got the tax cuts. they are excited about the attitude toward business deregulation, especially as it relates to the banks and then you have that alongside these rising trade tensions and how you square all of that and whether you can still conclude that it's a pro-business friendly administration. >> i think it is you mentioned deregulation, tax cuts the posture of this administration is very pro growth and pro business. i don't think that ends. i just disagree with their views on trade i understand where they're coming from. i think there's a better way to get there. tpp, for example we should have stayed in, embraced it. it would help them achieve their objectives >> you think there's still a chance of that >> the president said maybe. we'll see. >> tim adams, always good to catch up with you. a real pulse on the conversations happening in the halls behind me. especially with how the bankers relate to them the ceo of the iif, institute for international finance.

back to you. >> thank you, sara eisen a little past half past the hour to sue herera for a news update. >> good morning. here's what's happening at this hour a school shooting in central florida has left one person injured according to authorities. the shooting happened at forest high school in ocala, florida. sheriff's deputies say one person is in custody the injured student was shot in the ankle and is being treated the shooting coming on the day that students across the country walk out in remembrance of the columbine school shooting 19 years ago. russia's foreign minister sergey lavrov says president trump indicated he could make a reciprocal trip to russia if putin were able to accept his visit to the white house trump mentioned the possibility when he called putin on march 20th to congratulate him on his re-election. two palestinians were killed by israeli troops firing from across the gaza strip's border as hundreds of palestinians flock to the area for the fourth

weekly protest the protesters burned tires along the border or flew kites with flaming rags dangling from their tails. in the hearse carrying barbara bush arriving at st. martin's episcopal church in houston this morning. she'll lie in repose at the church for a public viewing. her funeral will be held tomorrow that is the news update this hour i will send it back downtown to you, carl. see you in an hour >> sue, see you in a bit when we come back, columnist jim stewart is with us why he says wells fargo has been beaten up enghou with the dow down 54 don't go away. ♪ slap on some cologne ♪ i'm 85 and i wanna go home ♪ ♪ just got a job ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go

don't get mad. get e*trade, kiddo. you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig-

really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. ♪ good friday morning. welcome back i'm carl quintanilla with david

faber. sara eisen is at the imf spring meeting. ge continues to lead the dow but hard to get anywhere on the overall indices with apple down 3%-plus. we'll watch that dow down 72. s&p down almost 8. >> the analyst really taking it to apple a bit wells fargo agreeing to a $1 billion payment to settle allegations from multiple regulators that the bank engaged in lending abuses in its auto insurance and home loan businesses our next guest says the bank has been beaten up enough and it's hard to imagine what more it can do to make amends. we're joined at post 9 by pulitzer prize-winning journal ist tim stewart. when you say it's time, it's time >> my main thing is people do these bad things individuals do the bad things. the shareholders didn't do it and the bank in the abstract didn't do it so i'm all for punishing the

people who did it and holding them accountable and, yes, the bank should pay some fines but look at this for a second they paid $185 million to settle the fake account scandal that was blatant fraud there were 3.5 million fake accounts they fired 5,300 people and paid $185 million suddenly we have those auto loans and mortgage issues. a few hundred thousand people affected and they are paying a billion over this? i mean, this is completely out of proportion. they already set aside $4.5 billion last year to cover all these scandals they have been punished. they have been flogged, publicly humiliated their reputation has suffered. no other bank is ever going to want to repeat something like this it's enough. don't squeeze it out of the shareholders anymore >> is there a case to be made the increase in fine is a fact it's repeat behavior yet again

>> you have to look at the time frame in which this happened it was all happening at more or less the same time in this pressure cooker atmosphere that the preceding ceo and head of the community bank, i think, was really responsible for now it is upsetting to me that they got, you know, huge payouts when they left accumulated stock. you can say well, they were entitled to it they clawed back a little bit of that, but they are still looking at tens of millions of dollars they walked away with. nobody has been charged with a crime, let alone go to jail. how about a little community service or something and the stigma of being held accountable. that's what's going to deter fraud in the future. >> you think this puts a cap on the punishment absent any further shareholder lawsuits >> i think so. this is a big fat number i'm assuming that wells fargo agreed to this partly because as a bank when regulators come down on you, you don't have much choice this big payment, they've got to hope is the end of this story.

this drip by drip. every quarter there's been some horrible new surprise for shareholderers look how the stock has performed. terible to other big banks >> the market is taking it today the way you're portraying it it is over it's well above the performance of the overall sector today. >> a good thing for investors, the overhead, the management, the masses of lawyers and consultants they've had to spend on all of this, that will wind down as these things go away and should help bring their cost -- >> how about growth? if they have to rein in their behavior, so to speak over time, do they grow in the way we're used to? >> they've been capped by the fed, and that's a serious punishment the question is how long will it go i'd say for a year they can do that and they can fiddle with their assets and still show growth in earnings beyond that, it's going to really begin to hurt them but as i said, what more can they do? they just go prostrate

themselves give us a break here it will look -- reasonably, they should get out of that in a year's time. >> i'm curious do you have any senses too how dented the franchise has been at wells or how long it will take to potentially repair it >> this is really interesting. a lot of this you can say, let the marketplace evaluate this behavior their earnings were really pretty good this quarter, and it looks like their customer base is pretty much hanging in there with them. so i don't think it has hurt the consumer franchise all that much >> a discussion about whether it portends a change in deregulation when it comes to banks. it seems the administration sort of had it out for wells for a while, right >> yeah. >> doesn't say anything about a change in the protection bureau and how they go after -- how they think of regulation >> i don't think this tough fine here means we'll have this new era of zealous regulation. i think what happened to wells

fargo is, everybody was mad at the big banks. nobody had been held accountable for the financial crisis suddenly, this scandal pops up, and it was brazen, blatant wrongdoing and initially, wells fargo was acting this was no big deal it is when you make fraudulent accounts and forge people's names on things. er you had clear-cut wrong doing. >> it's out of tune with the deregulatory melody the trump administration has been playing. >> trump tweeted that i'm not for, you know, overregulating the banks but when we catch them, we're really going to stick it to them so it is kind of consistent with that but everything i hear is the pipeline of investigative things is dwindling to a trickle, if that >> fascinating story >> thank you >> thanks, jim >> sure. jim stewart. when we come back, more on the market action.

you hear pivotal going public here at post 8 that's what some of the activity has been about we're close to session lows. dow is down 76 don't go away. i'm in washington, d.c., today for the imf spring meetings talking to top economic policymakers and top economists around the world about global growth can the upswing last and the looming potential threat of a trade war coming up on the otheride sof the break, former treasury secretary larry summers. experience the 2018 lexus nx and the nx hybrid with a class leading 31mpg combined estimate.

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commodities are doing something they haven't done since 2011 find out what that is on tradingnation.cnbc.com more "squawk on the street" coming up.

welcome back to "squawk on the street." back to sara eisen at the imf spring meeting after talking to former treasury secretary larry summers. >> the trump administration certainly the elephant in the room here at the imf meeting these are the globalists that are scratching their head at the tariff threats and rising debt

loads. perhaps no one has been more critical than former treasury secretary larry summers. so i asked him, of all the policies he's against, taxes, trade, the tweets, what he thinks is the most dangerous listen >> probably their approach to the global economy viewing the global economy is all about win/lose rather than about cooperation. undermines prospects everywhere. that's there in their attitude toward trade wars. that's there in their attitude towards international institutions that's there in their rhetoric towards other countries. and what we know is that we've had an experiment when the world moved towards nationalism, moved toward zero-sum thinking in economics. it was the late 1920s and early 1930s. and it didn't end very well. >> i did ask him if summers can

give the president credit for anything, and his answer was interesting. listen >> i think they have connected and shown that they care about a large number of americans in the middle of the country who have felt disconnected from national policymakers who have seemed responsive to coastal elites i don't like the specific measures that the trump administration has taken and i think, for the most part, they will backfire against those they profess to help. but i think establishing that sense of connection is something that is important for leaders to do >> summers also attributes the rising bond yields that we're seeing just this morning to what he says is rising inflation

expectations and a potentially more aggressive fed but thinks they're benign for now i'll have more from our interview, including some recession picks coming up on "power lunch," guys. >> sara, thank you sara eisen in d.c., of course. let's send it over now to jon fortt and get a look at what's coming up on "squawk alley. >> we're going to hear from an activist investor that's trying to push facebook to take a whole different approach to managing risk but is it going to do any good when mark zuckerberg controls the entire company he's already indicated he's not 'lclined to do this. wel find out what's next for that coming up on "squawk alley. alerts -- wouldn't you like one from the market

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earlier in the show we mentioned shire. takeda to come out with an improved proposal for shire this morning. it is now comprised of 21 in british pounds, in cash, and 26 of takeda's shares, an increase overall of 7% of the original proposal, which had been made back on march 29th and most

significantly they increase the cash component by three pounds, 25 p or 18%. a significant amount as i reported previously, there had been some concern amongst shire shareholders about the significant amount of takeda currency, as we call it, or shares that they would get in response -- or i should say in response to selling their shares, in the deal. still remains completely undeal what shire's board, which previously rejected the previous takeda proposal will say as we also know at this point, allergan uninterested. unclear whether there is another potential bidder out there for shire. you can see this having -- it was having a positive impact on the stock when i looked earlier, carl i have the adrs up you can see what we're using trading in the uk is down.

that's a better perspective. one of the larger deals out there. shire bought back shalta, has a rare drug for hemophilia and other rare drugs -- rare diseases i should say. >> a big bull on the stock, cuts estimate says apple will come in with earnings at the low end of their guidance china, as activations are down for apple over there they're losing share there's this consistent fear about a would-be boycott on u.s. brands, potentially including apple. so with that, it's very hard, given its weight, to escape the downward momentum. the dow down 140 session low. >> staying in china and wireless, not to mention the ongoing dispute between apple and qualcomm over not paying

them or their suppliers no longer paying them under the patent agreements. worth mentioning nxp, another recent low 105.73, caught up in the larger tensions between china and the u.s. over trade, in particular technology, intellectual property we've referenced the move against the large handset maker in china by the u.s. carl, if you remember as we follow this had saga from its earliest days, there were a lot of shareholders who said this was th is worth 135. we're not going to sell anywhere near that. they did agree to a deal, significant from the original 110 deal but now it has reached new recent lows. so much for those who said 120 or even higher would be the fundamental price. to be fair there are a lot of potential hedge funds that may

simply be hitting the exits right now. suffering some pain even if they had sold plenty to hedge themselves. >> what was the wording out of the chinese ministry yesterday negative effects difficult to correct? >> difficult to correct. there are those who believe they needed to make some sort of raw, unclear kind of statement because, really, it's about politics at a higher level but they did want to at least somehow bring it back to the anti-trust review. they got 90 days on the qualcomm/nxp side to try to figure this out. >> see you monday? >> yes, sir. when we come back, tom lee will join us we'll talk about apple and its impact on the broader markets today as we're close to session lows "squawk alley" starts in a minute at&t provides edge-to-edge intelligence,

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good morning it's 11:00 a.m. at general electric's headquarters in boston, 11:00 a.m. on wall street and "squawk alley" is live ♪ we're gonna rock it down to electric avenue and then we'll take it higher ♪ ♪ we're gonna rock it down to electric avenue and then we'll take it higher ♪ ♪ working so hard like a soldie

can't afford a thing on tv ♪ ♪ deep in the heart i abhor you ♪ >> good morning. welcome to "squawk alley." i'm carl quintanilla with morgan brennan and jon fortt. apple warns the stock may fall iphone maker is have iing to diversify on its screen supplier