"squawk box." good morning welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's look at u.s. equity futures. yesterday the markets closed flat after bouncing around after the president's decision to pull out of the iranian deal. we're talking about a point or less dow futures have morning are up by 150 points. s&p up by 14 the nasdaq up by 31 points overnight in asia, the nikkei was down hang seng was up and the shanghai was essentially flat in europe, some of the lirl trad early trade, no major moves.

treasury market. looking at the yield pushing higher yesterday up at 2.968% this morning the ten-year is back to 3.01%. a couple headlines to bring you. softbank ceo masa son saying the walmart deal to acquire flipkart is done officially made the comments on a conference call. there has not yet been an official announcement from walmart or flipkart and no word on the value of the deal lots of speculation had been whether walmart was winning the bid over amazon. it appears that has now happened. other deal news. vodafone buying parts of john malone's liberty global for roughly $23 billion. that deal includes liberty operations in germany, russia,

hungary and the czech republic disney reported stronger than expected second quarter results beating on the top and bottom lines earnings of $1.84 a share. 14 cents ahead of estimates. revenues surged 14$14.5 billion thanks to the blockbuster success of "black panther. bob iger sat down with julia boorstin to share his confidence in disney's ability to move forward with its $52 billion deal for fox assets. >> i'm not going to speculate at all about either what they're doing or why they're doing it. i can only say and reiterate that we made a deal in december that received unanimous approval, which is important by the 21st century fox board we're in the process of filing what we need to file to gain both regulatory approval and

shareholder approval we're excited about that acquisition and remain confident that it will go forward. joining us now for more on disney's bid for fox and media trends, michael wolf is here good morning >> great to be here. >> we've been trying to parse through some of the comments that he made on that interview trying to understand what he really meant at one point he said he may not do anything if comcast were to make a bid. >> he made several suggestions around the idea that murdoch likes disney stock so i was curious, what you thought he was trying to telegraph. >> part of it is -- and this is well known, rupert murdoch likes stock deals. he doesn't like to pay tax he likes to roll over into other assets the cash deal poses other problems >> so the prospect that's hanging out there is that comcast may make this bid for

fox if, in fact, the at&t time warner deal is allowed to continue on. >> these are valuable assets nobody should be surprised that comcast, which has already created something that at&t is trying to emulate, nobody should be surprised that comcast will try to go out and buy the disney -- or fox assets, especially because we're in a moment where movie studios, some other networks are valuable. >> is the decision entirely the murdochs >> the decision is the murdochs. >> they own voting control, that would happen in a situation like this >> we see this with any of these companies that are controlled stock stocks >> from a legal liability perspective, isn't it difficult for them to turn down a meaningfully higher offer in cash >> it is

that doesn't mean that disney's deal won't get restructured. it's not what iger is saying iger is saying we got a deal, it's going forward we have to see how this plays out. >> would they have to come back with an equal deal i have seen things like they have to come back with more cash in the deal and stock. do they have to raise the prospects? >> i think clearly for a lot of shareholders, an all cash deal is better. they may end up splitting the baby >> how does it get carved up that would require bob iger to say let's stop this mess let's -- i'll give you hulu, you give me this, you give me that we'll go on our merry way. >> all these companies while they compete against each other, they are all friends

a lot of this does not necessarily make sense disney doesn't know how to manage an asset like sky this is what comcast knows how to do. some of this may be nothing more than getting leverage for a company that comcast wants to own. what did i make of disney's earnings themselves and what you saw happening on the video side. i think what you should expect is there will be continued declines in cable distribution the way that analysts look at this is totally flawed they keep saying espn quocosts e than fox sports 1, but a viewer doesn't get to choose. your cable system gets to choose this reflects an overall down draft in the cable market. there is a lot of cord cutting going on >> are you a fan of espn plus? >> it's getting developed.

it's not clear that it's going to be -- it's not really intended to be a substitute for espn more than likely getting people to test the waters on whether or not they will pay for sports >> you really think disney and comcast and steve burke and brian are friends with iger? i think comcast likes getting in here, and disney has to pay more >> no matter what happens. so they would have 40% of the movies that are made, disney is deciding what i'll see for 40% -- i don't see why comcast's regulatory problems are worse than disney's. i don't want 40% of my movies coming from disney, it will be all cartoons

>> already the top three hits each year are coming out of disney so disney is already deciding what you and other people in the country think, partly because they bought up some valuable movie assets between pixar, lucas, marvel. at a time when everybody is looking at the film business saying it's slowing down, disney keeps delivers incredible results. >> we talk about a vertical challenge coming from regulators if comcast gets involved is there such a thing as a horizontal challenge >> the at&t deal for time warner looks more like a horizontal deal a deal with disney would be more vertical >> the fox disney deal >> is there any reason that regulators would get involved with that? i don't know why is just struck me today we never raise that issue ever is it something that regulators

care about >> it's not clear why regulators care about this except for political reasons. >> given the concentration issues that we just talked about and articulated on the film side, of a disney/fox combination, is the view -- is the view that there is -- is there a barrier to entry or is the few if you throw enough money at it you could land in one of the top three spots in the film business. they're already in the top spots. the real battle is not for the film business. the real battle is for what are the netflix, hulu. the company that gets control of hulu as well as the company that gets control of a large slate of motion pictures and tv shows is going to be in the lead. that's why comcast is coming in to spoil this deal ownership of that studio film library. >> where do you land on sprint

t-mobile do you think regulators will approve that deal? >> regulators say there should be only three wireless companies in the united states that's hard to imagine you hahave sprint and t-mobile which find it difficult to compete against verizon and at&t it makes sense from a business perspective. >> the chess board, ftd at&t/time warner deal goes forward, assuming that comcast goes after fox, verizon goes after who -- >> it's not clear. >> i assume the board just opens up in a different way. all of a sudden, viacom and cbs, do they go over here does the sprint deal, not happen what happens dish? there's a whole -- >> we can play this game also.

what it time warner/at&t doesn't go through is time warner more valuable to cbs than viacom? all these pieces will get moved around because there are some outside enemies in this, which is netflix, which is taking more and more of peoples time facebook and google are increasingly dominant in video >> for the investor out there watching this, five years from now, the most valuable of these companies will be whom >> two most valuable will likely be disney and comcast. >> fair enough thank you. let's tell you about other stocks to watch. facebook is reshuffling management and creating three new devices. chris cox will be in charge of apps including facebook, instagram, what's app and

messenger. the second covers new technology and infrastructure, and the third unit will oversee ads and security shares of ab inbev are higher in europe, the company reporting better-than-expected first quarter numbers. it is ramping up spending on marketing ahead of the world cup. then tripadvisor's first quarter earnings beating forecasts despite a drop in hotel revenue. that was offset by a surge in revenue from tours, activities and restaurants. at&t confirming to cnbc that it paid president trump's lawyer, michael cohen, for insights into the trump administration at&t did not say how much money it paid cohen. >> i thought it was 200,000? >> after a lawyer -- look at

this we're calling her toporn actress stormy daniels claimed a company owned by cohen received payments from at&t, novartis and a russian oligarch cohen's company made payments to stormy daniels to stay quiet about an affair with president trump. it was before he became quite so famous or infamous or whatever if you were at&t, you're trying to do this deal wondering this is a simple vertical merger, what the hell is going on? you want to think what's going on here. >> on twitter last night, people were saying the swamp is alive and well i actually agree

i think if there was a payoff involved, it didn't work and i think at&t thought, geez, this guy may be coming after me. i have to talk to some people. >> who know him well >> what is the value of the merger with time warner? >> a lot more than 200,000 >> 200,000 to figure out is it really cnn you know this guy really well. >> that's the question >> business is -- it's not always -- you want it transparent, but you shouldn't be surprised by some things you do >> it's not like it mattered in the end. >> you have to pay more than $200,000 >> to find out the truth or -- >> no. >> i don't know.

>> they made casablanca, i'm shocked. >> gambling? >> yeah. >> you can't fane shock all the time that this is the way things go not surprising. coming up -- tell me your joke >> i said -- >> no, don't move on. >> el fait's not about elephant horses, ducks? 100 ducks are the viz of -- >> 100 duck sized horses or one horse sized duck >> i would prefer to battle one horse-sized duck >> i think ducks are nice. >> little duck sized horses running at you >> what's horses as ducks? >> horses that are ducks it's why raptors can take down a

t rex. >> it's a logic train question >> i would like to see a big duck i like ducks coming up, president trump announcing that he will withdraw the u.s. from the iran fuguelar deal notice how we say deal we say deal, not treaty. it wasn't a treaty you do itthe way it's supposed to be done or this happens we'll talk to ambassador dennis ross next.

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impact on tinder and believes there's a large untapped market of singles who do not use online dating >> so there's a premium version of tinder? >> you get more swipes there's a limit on the number of swipes if you don't pay. there's a limited number of swipes. it may be based on gender. >> how would you explain it? i want to understand you got the tinder selection or the match selection. this is -- i can't -- this is not normal is it? >> you pay for the other one, e-harmony. >> all of them >> how can one be premium? >> they give you access to more people >> so you pay a fee for tinder and you only get so many people to choose from >> you only so many swipes >> is that true? you used up all your swipes? >> you can put more people in your potential bin or basket

>> you know what i understand? this next story. i know it so well. i'm there so much. i'm out of my league -- i made the argument -- were you here when i was saying when you get married, how did you meet? you would rather say i met at at bar. >> i think it's more respectable to say we met online rather than at a bar >> i was so socially inept -- >> no. now it's cool. >> yeah. >> yeah. this is like people on a blind date >> right >> it's better than saying i was hanging out -- closing the bar >> people go to bars >> people go to bars to get loaded >> nice to meet people in church >> the other place you might people someone is wendy's.

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♪ welcome back you're watching "squawk box" live from the nasdaq market site in times square. u.s. equity futures at this hour up triple digits. 126 on the dow s&p indicated up 12. the nasdaq up about 24 oil and the ten-year also worth watching today. president trump has spoken and not really a big surprise if you listened during the campaign the president announced the u.s. would pull out of the nuclear agreement with iran. >> it is clear to me that we cannot prevent an iranian nuclear bomb under the decaying and rotten structure of the current agreement.

if we do nothing, we know what will happen. >> president trump also said he'll be reimposing economic sanctions. joining us now is ambassador dennis ross. he served as national security council senior director under president obama. he is currently at the washington institute for middle east policy. you go all the way back to h.w you have been in both republican and democratic administrations we should make that point from the start. do you know what the end game here is? is it possible that those four things -- and there are four things that trump wants to try to accomplish in terms of a new deal that's done with iran one of them is that they stop using money that they get from the deal to spread terrorism and

to build their missile capabilities without making it nuclear. but to stop those activities is that totally unlistenable to try unreasonable to try to extract that deal or is that a reasonable thing to do >> the four issues that the president raised, sunset provision within the iran nuclear deal, meaning the main limitations on iranian enrichment activities, centrifuges, the key to creating core of nuclear bombs through nuclear fuel, those restrictions lapse in 2030. he wanted that sunset provision to be extended in perpetuity he wanted sanctions put on iran for development of ballistic missiles and ballistic missile testing. he wanted inspections. he wanted to be sure you had access to all the military sites within iran and he wanted to raise the cost to the iranians of destabilizing activities in the region

all four of those objectives are reasonable the question to understand or at least to raise is did his action yesterday make that more likely or less likely the reason i pose it that way, on three of four issues, the europeans made an effort with the administration to try to address those concerns of the four, the only one that they couldn't come to an agreement on was the sunset provision because of the terms of the jcpoa and the european belief that they could not walk away from that provision, and the administration insisting there needed to be enough of an understanding on what was going to happen after 2030 for them to have confidence. they broke down on that issue. the problem is if the europeans go their own way now, we are staking out a position where we're largely alone. pressure on iran always worked when it's been collective pressure, not just american

pressure >> it's so nuanced so many -- even on the democratic side, chuck schumer, so many people that oppose this now are just sort of resigned to it we're in it. we already gave the money back we might as well stay. i don't know whether that -- i don't know whether that is a good way to conduct foreign policy "wall street journal" says, look, if you wanted this deal, if you wanted a treaty, sell it to the american people, get it through congress, the next guy that comes in as president can't unravel it it wasn't done that way. just having it already in effect saying, well, we already did it, it's better that we just keep it i don't know that doesn't make anyone feel great about staying in the deal. >> i think your point is well taken. the challenge is if you have limitations on iranians until

2030, how could you take advantage of that time rather than simply walking away and not being sure what the next step is going to be. if others don't join us in the pressure and iran makes themselves a victim and the british, the germans, the french as they announced last night, they're staying in the deal. if the iranians are able to create a breach between us and everyone else, the question is do they gain out of that the challenge for us is with we convince others to go along with sanctions. we will impose secondary sanctions in 180 days. will others respect that, challenge us if the administration is going to succeed in what it wants to do, it has to come up with an approach that others are

prepared to go along with. the british, french and germans have been prepared to meet three of the four issues >> just the effectiveness of what happens with the americans, regardless if others go along with this. some in london are looking to start doing business with iran, but the problem becomes if you want to do business with the united states, you can't do business with iran to this point that stopped a lot of people regardless of where things stand that might continue to be the case, no >> absolutely. what the administration has done for sure will create a chilling effect on businesses, on banks as to whether or not they should think about doing business, investing within iran. for sure it will have that effect the mere threat of this was having that effect that's one reason the iranians were complaining they were not

getting the economic benefits from the deal. the problem is if we see the europeans repeat what they did in the 1990s -- we passed a law in the 1990 which said that no company doing more than $20 million worth of business in the iranian energy sector could do that without being sanctioned. the europeans adopted blocking legislation to permit companies to go ahead and do that. will they do that this time? will we see that kind of an effort made? in the statement that the british and german leaders made last night, they not only said they were sticking with the deal they called on the united states not to obstruct those who are trying to carry out their responsibilities in the deal that goes directly to this issue of the oil sanctions so i think we're in for what's going to be a bumpy ride i don't think anybody knows for sure what the outcome will be. >> i hate to cast aspersions on

other european allies, a couple allies in the midwest will probably be more affected by destabilization in the middle east, that's saudi arabia and israel they're totally with us on this. the europeans, they're more interested -- to be frank, they want to do business with iran. it's about money if we had european allies here, israel and saudi arabia here saying that they want to do that, i might not listen -- i might write off the european concerns based on doing business with iran. >> you're right about that bear in mind this, the sanctions did not affect the iranians. the iranians said they would never negotiate on their nuclear program as long as they were under sanctions. yet they negotiated when the sanctions became tough they did not become tough until the europeans stopped buying their oil. if the europeans still buy their

oil, they have money the saudis and the israelis for sure are the ones most affected by iran's threats in the region. that's a fact. but it's not clear what the administration is doing to counter those threats. the threat of sanctions is still likely to be only american ones. the real challenge is can you get the europeans not to be buying iran's oil. if that's the case, then iran will be hurt then the leverage you have on the iranians begins to change again. if you don't have that, you're in an ambiguous situation. i think it will be difficult for banks to be willing to invest in iran, they will not get the benefits of what they wanted also if they're no longer bound by this deal, they can go back to enriching, back to creating a lot of very active nuclear programs the time you bought until 2030 which you might try to take advantage of, you may not have >> all right thank you.

appreciate it. you are coming to us from israel so hence the four, five seconds that we had to wait for responses. it all worked well, appreciate it joining us now is richard weiss, chief investment officer at american century investments. also sean darby, global head of equity strategy at jeffries. welcome. sean, one of the comments you have, you said the cycle we're looking at now reminds you of the late 1990s strong technology, but some emerging market issues go into that deeper. late 1999 led us to some bad things in the beginning of the 2000s. >> it was a paradoxical period, a mub number of market ths had o the imf, the american companies

went through a digitalization process, invested heavily. after the y2k in 2000, central banks globally went back to tightening and overly tightened as inflation pressure ss build up you have some countries now at the moment who are facing significant capital outflows, but you have a big investment boom going on in the united states which is helping the u.s. economy. >> rich, you sound like you agree with this with some of your comments. wondering if the emerging markets or global markets are the canary in the coal mine when it comes to these issues >> we would be in agreement with that we know this economic cycle is a t

typical. this bull market has one nine years going on ten we see it long in the tooth. not necessarily drastically overvalued as we saw broet stocstoc growth stocks in the 90s rising interest rates, specter of inflation, stimulative fiscal policy with full employment. these are all harbingers of the ending of an economic cycle. >> what would you be telling people to do now if this is what you think is happening >> for the retirees, near retirees who can't suffer the down side or tolerate the down side, we've been moving away from them from stocks, more into tips, short-term bonds for younger investors, market neutral funds. long/short funds get the alpha despite the market downdraft. >> sean, you agree with that prescription >> i think we're getting feedbook loops now looking at the united states,

even though the numbers are not impressing, the backlog of orders, companies talking about delivery problems, raising prices, that's inflationary and start to hurt margins. woe have come from a period of abyss of deflation we are more cautious that they don't want to turn the tap off too quickly. so as a number of countries within europe and asia which have low inflation rates, i think this cycle might get extended further >> so stocks might be the right place to be. >> i'm not ready to go back into bonds. some of the best valuation moves or returns in equities are behind us. it's not that easy to look at bonds at this moment in time and think we're buying into the peak of the yields. there's pressure on yields to move up far more than stocks to come down. >> thank you both.

>> we still have a huge lineup ahead this morning we have our guest host at the top of the hour, chamath palihapitiya, venture capital investor, co-owner of the golden state warriors, and a guy who makes some boldcalls. at 8:00, northern ireland chairman glenn hutchins, also board member of at&t, he will join us to talk stock valuations he's part owner of the boston celtics. later, rapper meek mill will join us to talk about the criminal justice system in america. he has been joined by michael rubin, co-owner of the phill 76ers. you won't want to miss any of this

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three major pieces of the rockefeller art collection got big bucks last night

robert frank has the big numbers. was one of them -- was one of them -- >> one of them was there was a huge moment last night with that piece. we will show that to you >> he painted a lot of those lily pad things. >> he did. there was one of the best. the reason it went for so much money is all the big names featured in the auction, we had matisse, monet, picasso, the name that dominated them all was rockefeller. last night christie's sold 44 pieces for a total of 646 million for those 44 pieces. the rockefeller name added huge mre premiums, and seven set new records for the artist the most expensive sale was picas picasso's girl with a flower basket that sold for 1$115 million jus over its 1$100 million estimate.

it's the second most expensive picasso ever sold. as joe mentioned, the big moment of the night, this was amazing monet's water lilies came on the block, it was estimated at $50 million. here's what happened >> 75 million. you're out francis gives the signal thank you for that bid here it is you have it. sold to you. well done. >> estimated at 50 million, with fees the sale price worked out to 84$84.7 million. that hung under the stairs of the rockefeller home in west chester county matisse's odalisque couch aux magnolias went for 81 million. there are still more than 1400 lots from the rockefellers all the proceeds go to charity just these 44 pieces alone was the single largest single sale auction ever you still have over 1400 pieces

to go the rest of this week being sold online and day tail s today, thursday and friday a lot of the bids came from asia and china. the rockefeller name is huge in asia >> to walk into someone's house, there it is. >> under the stairs. >> need like an adt system or something. >> i don't think under the stairs, like harry potter. >> no. you could see it >> you walk in yeah, that's nice. >> most people, as soon as you walk in the home, that's what you see on the wall. amazing that the rockefeller name still has that meaning. >> in the old days, i had a lot of -- ethan allen, you heard of him? i had them everywhere. >> not a lot of price appreciation >> patriot >> the kind that you walk in a lot of places, i have that one

>> it was in my hotel last night. >> exactly. when we walk back, trade turmoil. nafta negotiations are under way. officials from the united states, canada and mexico strike an optimistic tone yesterday we'll get an update next. as we head to break, a quick check of what's happening in the european markets france is flat, so is the dax. the ftse up by a half percentage point. we'll be right back. at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business. & so this won't happen. because you've made sure this sensor and this machine are integrated. & she can talk to him, & yes... atta, boy. some people assign genders to machines. and you can be sure you won't have any problems. except for the daily theft of your danish. not cool! at&t provides edge to edge intelligence. it can do so much for your business,

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welcome back to "squawk box" this morning let's talk nafta negotiations are underway launched a counterproposal to u.s. demands to tough autoindustry content rules want to bring in monarch president and ceo michael has served as assistant commerce secretary in the obama administration good morning to you. let's talk autos but let's talk about what you think is going to happen on monday because there is talk that we might actually -- i don't know if we're going to get a deal, but we're getting close. >> good morning, andrew. thanks for having me the three trade ministers are in town in washington they've been having some intense discussions to get to a final deal

the clock is ticking the requirements of the trade promotion authority, the so-called fast track legislation really have created a sense of urgency if this deal is to get before this congress before the lame duck ends so autos is certainly a key sticking point, but it's not the only one by far. >> so what else is on the list >> well -- >> go ahead. >> there are several issues, actually, in addition to the rules of origin issue there's the whole subject of the investor dispute settlement. the mechanism by which gives investors confidence over the long-term. in any of the nafta countries. if there's a problem, they can have recourse to international arbitration. ambassador lighthizer, the u.s. trade representative is opposed to that despite the fact that it is part of his mandate under the congress' trade negotiating objectives they put forth in tpa. in addition to that, you've got

this whole subject of the so-called sunset clause which ambassador lighthizer a nd the trump team want to make sure even if an agreement is reached and ratified, in five years it will sunset and lapse unless the countries affirmatively act to keep it in place and then there's a bunch of other issues that different sectors have concerns about with intellectual property. >> handicap it, though, for us because it sounds like you think lighthizer is going to make this very difficult >> well, you know, i probably -- i hope i'm wrong on this, but i just don't see how they get to yes. i think they're still quite far apart on some core issues. even if they get to yes, it's not clear to me that there's any deal that president trump will accept and he's the ultimate decision maker. although administration insiders have assured me that they've gotten that commitment from the white house. but of course we know the president can change his mind on

a whim and then there's the issue of whether any agreement that they reach is going to be able to satisfy the necessary votes in congress to get it passed. so i think we're a long way from a deal >> on the auto front, if you're barra or any of the auto guys right now, how critical is it that this get done literally this month in terms of just the timeline. >> well, you know, i think that from the automotive industry's perspective, i think their top priority is do no harm i think their concern is -- i think they'd be delighted if this fell apart of course the risk is that the president won't accept that and will initiate withdrawal proceedings but let's not forget that nafta is a major reason why among other things that we have a world class competitive auto industry here in the united

states and in canada and mexico. so it's a bit mystifying that the administration is trying to fix a problem that doesn't exist. >> okay. michael, we're going to leave it there. thank you for your perspective and insight this morning >> pleasure to be with you thank you. coming up, our guest host for the next hour, the founder and ceo of social capital. he's also an owner of the golden state warriors going to fill us in on steph curry who had 28 points last night. more than he's played recently as it closed out the pelicans. i'm learning new things every day. the new orleans pelicans but i'm following it more this year here's -- and he's here to talk tesla, bitcoin, and the future of capitalism. i know they play houston first game is monday night "squawk box" will be right back. the governor has declared a winter weather emergency... extreme risk of burst pipes and water damage... soon, insurance companies won't pay for damages. that is, not if they can help prevent damages

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regulating the valley. venture capitalists and co-owner of the golden state warriors joins us for the hour. we'll talk tech and the markets and maybe the playoffs straight ahead. the president's decision to pull out of the iranian nuclear deal a live update from washington is just minutes away. bob iger is confidence the deal with fox will get done despite reports comcast is preparing an all-cash bid. a look at the company's latest quarter straight ahead as the second hour of "squawk box" begins right now. ♪ live from the beating heart

of business, new york, this is "squawk box. >> good morning, everybody welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin and joe kernen we started off the morning with the dow futures indicated up 150 points right now up by 122. s&p futures up by 11 and the nasdaq up by 22. in our headlines at this hour, crude oil prices are surging this morning after the united states pulled out of the iranian nuclear deal and on elevated mid-east tension too both wti crude and brent have hit three and a half year highs in the trading session which comes as a surprise given the pull back we saw yesterday oil dropped $1.67 after we got the news of course leading into this, there was speculation the president would do just this we have seen the oil market react accordingly.

investors will be keeping a close watch on new inflation figures. economists think that the producer price index rose by 0.2% in april and then dow component walt disney recording quarterly profit of $1.84 a share. the consensus was the for $1.70 a share. ceo bob iger also expressing confidence that disney would prevail in its effort to buy assets from 21st century fox it is competing with universal parent comcast for those assets. >> but you see that price and i'm trying to -- >> why is it down? >> no, no, no. i remember when it was 120 in the very beginning of the espn issues came out. >> that was years ago. >> it was three years ago. i wish we had a five-year chart or something because i guess that was the canary in the coal mine. the number of subscribers that

espn was losing and the entire group with the cord cutting, the worries started. "black panther," nothing is moving that stock at this point except sideways. someone at that time and i hate to give him credit, i guess i will, greenfield said netflix, netflix, netflix not disney, not disney netflix probably tripled in the same -- >> looking at a five-year of netflix versus disney. >> it doesn't thrill me to say it working for comcast and everything, but those are some issues are they not at least in terms of growth. they're still free cash flow generation is amazing. >> they have no relationships. they have no relationships with their customers. i think that's the longest term problem in that business >> what do you mean? >> other than disney theme parks where you come in and come out, the reality is you're living in a world now where these people

have no understanding of who the customer is. not their first name, not their last name. they can't figure out what their real intentions are. i think that's really the biggest problem. when you compare that to netflix or any other subscription business online, it's a different media consumption model now. >> social capital founder and ceo. he was an original member of facebook's management team also owns a piece of the warriors let me ask you one question about this then i want to talk about other stuff. but on the issue of disney and fox, there's been questions about concentration in these markets. but one of the arguments has been actually that we've been measuring them wrong because what we really should do is compare them to google and facebook direct relationship with the customer whereas most of the -- whereas disney might not whereas an at&t and time warner would not. how do you think about the whole

market >> i really think the traditional broadcast media businesses, again, with all due respect, are the least relevant they've ever been, quite honestly i think it was a month ago that google released some data that said youtube had 1.7 billion monthly visitors the person that runs their core apps now runs over 5 billion users. or touches 5 billion unique users. there's an entire order of magnitude. or two orders of magnitude increase in distribution that's occurred those are the folks that really control the pipes and really shape our ideas and thoughts >> so are the regulators wrong are they looking in the wrong direction when they start -- >> yeah. but i think part of it is that the regulators are of a generation where those systems used to be the things that were relied upon. unless they get enough data and

taught that something new has happened, they're going to reflexively go back to where they were literally only three channels >> we got to pause we have a big tech deal. you'll care about this >> you're not here to talk about nba. you're here -- that's why you're here >> i appreciate basketball and lebron as much as any other girl from ohio. >> i wondered. this is why she's here walmart, it's official buying a stake in an indian company. >> yeah. so this is called flipkart this is walmart's biggest deal ever the retailer buying a 77% stake in indian e-commerce space flipkart for $16 billion this is going to be a combination of cash and new debt declining to provide the breakout of how that's going to happen the remaining 23% of flipkart that will still be held. the makers currently running

flip flipkart, they're still going to do that. amazon reportedly also made an offer possibly pushing up the price that walmart ultimately paid but cfo brett biggs said the retailer paid what we thought was fair for this deal if the deal is approved and closes by the end of the second quarter, it will have a negative 25 to 30 cent earnings impact. 60 cents for the full year for walmart. so walmart's new chief international officer tells me we've been very clear that india is a growth market for us and we're going to be very thoughtful with our business there. currently, though, walmart only has 21 locations selling only to other businesses because of various indian government regulations that restrict foreign direct investment in the country. but the rules don't apply in the same way to an e-commerce like flipkart they have about 54 million active users

ships more than 8 million packages a month india has 1.3 billion people, the second most populated country in the world there is a lot of potential here for walmart. they have been saying china and india are growth markets for some time. but india has been a very difficult one for them to break into because of the regulations. >> is flipkart like an amazon? >> it is very much like an amazon it's a market place. so it sort of brings -- it's a platform -- yeah it brings its sellers selling to individual buyers opposed to being a retailer one basically says 30% of what you sell has to actually come from local commerce. and that's very difficult. it's to protect the mom and pop. >> on this particular deal

because you've been an amazon fan for a very long time, are you happy, sad that they missed out on this? do you think they have a shot in india? what happens here? >> we invested on one of the largest payment processors in india. flipkart is actually a customer. we've seen this battle unfold now on the ground for seven years. what i'll tell you is from a starting stand still, amazon and flipkart were head to head for domination of an incredibly rich market. so that's great. the other thing is it's great for amazon that it's in the hands of walmart right now walmart management has to figure out how to keep these engineers. the one thing i'll tell you about investing in india is the labor market there is even more cut throat than the neighborhood in silicon valley in that there is a lot of job hopping, tremendous amounts these talented engineers leave

companies at faster rates than they do the valley i suspect what happens is post and acquisition when a talented engineer has a decision to work for walmart or go work for facebook, google, amazon, it's going to be difficult for walmart to retain those people i suspect what happens the reality is it probably makes it complete that amazon wins in my opinion. >> how do you think about walmart at large given the jet acquisition, given this acquisition, what they've done on the digital side, the transformation that they're trying to undertake here >> i think it's these legacy companies are fundamentally on their heels now. what we have to figure out is

how do they adapt. so you have to use your balance sheet. you have to use your stock and you have to acquire aggressively to try to be in these next generation wave businesses >> that's an argument for what walmart's just done though >> that's why i think it stons the bleeding in my opinion are these catalysts to see 20%, 30%, you know, increases on a predictable basis? i don't think so but it is a catalyst to say maybe stock's going down >> if you're doug mcmillon, are there other things out there in the u.s. or elsewhere? >> absolutely. >> would you want to nst in the u.s. or international? >> i think going international has two advantages to large companies. the first is you can have a business model all together. going into an asset light business owning a payments business those are our better businesses with better margins that walmart can frankly integrate much easier secondarily, these are much

cheaper abroad than the united states you get a lot of advantages by actually trying to implement this strategy outside the u.s. >> what do you think about the idea that walmart went into someone already established rather than build everything from scratch on their own. is this the way to do it internationally? >> it's the only way to do it, frankly, anywhere. again, we go back to the same problem which is if you're going to try to innovate, you need this unit of human capital which is the engineer. and those are still quite rare they're hard to get. they're hard to find they're hard to keep so it's easier for start-ups to do that. they can pay them with equity. it's much better for walmart to sit on the sidelines, wait for something to get to scale. user balance sheet, buy it i think they've done that masterful masterfully. the question now is not just for walmart. so now back to disney. what do you do if you're disney? buying assets from fox may have some value, but maybe what we should be thinking about is how do we use this to buy an

internet business? >> i want to switch topics for a moment because you have been a big bull on bitcoin >> yeah. >> we had some folks some people know on our show earlier this week becky was out in omaha i want to show you what they had to say if we can roll the tape on bitcoin from mr. munger and mr. buffett. >> the asset is creating nothing. >> i think it's a scum ball activity >> i would short it if there was an easy way to do it >> so there you have it. you have bill gates, warren buffett, charlie munger one of whom was calling it a scum ball activity the other saying, bill gates saying he would short this thing if he could. and you're saying they're all wrong? >> yeah. >> explain >> well, look. not everybody is right all the time and i think we have to acknowledge that we all have biases i'm a disciple of buffett and munger one of the things they have said for years which i believe is you define a circle of competence and you stay within it i think it's been clear in his

entire investing career that it's not in a circle of competence the only technology name that he's owned is apple. you could claim that ibm was a technology company that's borderline. >> that didn't work anyway >> right >> and apple, i was thinking that if he got in bitcoin -- if he eventually got in bitcoin when he got into apple, it would already be at a million dollars. >> probably. >> but chamath, just going back to this, i don't think he looks at it as an technology he looks at it as a nonproductive asset. it's only wovrt more if more people agree to pay more for it. >> i agree with that it is exactly that it is a replacement to gold. but -- >> but you like gold you're saying you like non-productive assets? >> i like in a portfolio -- again, my portfolio is 99% risk-on. 1% risk-off. in that 1% risk-off bucket, i think that something like

bitcoin is really important. why? because it is not correlated to the rest of the market and the biggest thing that's changed -- >> you do not believe that the success of bitcoin over the past several years has been correlated to the market i would say not directly correlated, but clearly the idea that there's as much liquidity and cash sloshing around in the world has allowed people to buy into bitcoin in a way they wouldn't have if the market -- >> that's different than being correlated to a strong economy or earnings. that's a liquidity argument. >> i've been in the bitcoin market since 2012. and i feel like i'm in two different universes. i need a passport to go between the bitcoin world and my regular world. these are not the same people. what i would tell you is the people who own in 2012 all the way up to now, the majority of those people view it as a hedge to the traditional infrastructure whether that's true or not is unclear. but that's how we've all viewed it separately, what joe says is right. there's a big difference between

correlation and liquidity. and the reality is all of these financial assets in the traditional markets are fundamentally correlated we saw that in 2007. everything broke down. things that we thought were hedges went away and so i think it's really important to not forget what happened there so in 2018 or '19 heaven forbid we go through another cataclysmic financial event, we're going to see the same correlation. why would it not make sense to have a non-correlated hedge? for a small amount of -- this is about buying insurance it was the same reason why in 2007 and '08 >> buy gold. at least gold has a 10,000 year record of being a store of value. i think that's the other thing buffett's saying there's no reason to think this is a -- >> that's a fair point but these are not exclusive decisions. you know, for this younger class of entrants into the market, they probably don't want to buy gold

they don't and they want something that's digital and reflective of their values >> how do you feel about the idea that charlie sort of suggested? there's something sort of scummy about -- there's a lot of scum in the crypto-world right now. and that there's a lot of people who have been sort of sucked into this world that have bought into this world by some folks who may not be as -- >> i think it's really unfair to not understand something and then to disparage it again, i think he's exceptional. i think warren buffett is exceptional. i think bill gates is exceptional at what they do. and i think it's fair to say that in 30 or 40 years if i'm, you know, a vibrant successful investor and back on this show, the idea that i know what's happening 30 or 40 years from now as well as some other new 30-year-old entrant into the market is just not true. the reality is things change tastes change. behaviors change >> chamath, i think you're mistaking their underlying concern with it. they don't like gold either.

charlie munger has said some dead on things about what he thinks about gold and putting it in your portfolio. this is the way they invest. >> his is productive and non-productive is a valid argument >> he started not talking about cryptocurrency >> do you think he's right on apple? you've liked apple >> yeah. you know, apple is -- >> you've gone back and forth on apple. >> i think apple is a productive cash machine is it a font of information? probably not >> i think they would agree with you on that too. >> go back to the world that these guys are experts in. you know, they're the same people that say i want to buy sort of that cigarette butt on the ground with two puffs left right? >> he said that's when charlie cured him of his habit of wanting to do that

>> there are famous buyers of value. there is enormous value in apple. >> what i'm taking away from this is if all 500 s&p 500 companies are on there heel because they're going to disrupted by engineers, should anyone not be stem at this point? would you tell your kids -- >> i gra e wiagree with you >> i mean, should anyone take french renaissance poetry? >> they should but here's -- look let's take one step back for a second your first comment is right on when you look at the half-life of an s&p 500 company meaning the number of years you're in the s&p 500 before you get booted out, it used to be 50 years. now it's barely 20 right? by 2035 i think our projections are it'll be less than a decade. what that means is this disruption that's happening is happening faster and faster and faster today's stalwart companies are tomorrow's -- >> you mean none of that is

going to be relevant at all. >> then you go back to how do you remake human capital in a world where these jobs and companies are turning over in my opinion i think you need to be a little bit more balanced right now we force kids to make decisions. i was a person interested in a lot of things in college i was in electrical engineering. you know how many electives i had in college >> you were fortunate to be in that means you have a horrible college life you're not going out every night. >> but my point is there's a different way to think about education. >> we're going to continue this conversation with chamath. thank you. when we come back, the president using the diplomatic room of the white house yesterday to announce the united states pulling out of the iran nuclear deal the president criticizing the agreement saying president obama gave up too much for too little in return. we'll hear more on this turn of events right after the break

also see what it's been meaning in the oil markets too right now take a look at the futures markets for the equities dow futures indicated up 121 points s&p up by 11.5 the nasdaq by 24. "squawbo wl rhtac k x"ilbeig bk. there's nothing small about your business. with dell small business technology advisors you get the one-on-one partnership you need to grow your business. the dell vostro 15 laptop. contact a dell advisor today.

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president trump pulling the united states out of the iran nuclear deal eamon javers joins us now with more damon we were talking about this with our guest host during the break. and it's interesting and there's no shortage of opinions on how it finally plays out, i'll tell you. >> that's right. we don't know all of the ramifications here for american companies or european companies for that matter. here's what we do know about what this reimp sigs osition wil mean this means no new contracts with iran entities. there's a 90 to 180-day wind down period for previous transactions and activities that have been undergone during the sort of obama rule era those you can wind down as a corporation over a period of time and treasury will be laying out the specifics on that. the sanctions will go into full

effect after those winddown periods end. now, steven mnuchin briefed reporters on this yesterday and indicated there might be some waivers and exemptions to come for particular companies and particular countries we don't know exactly what the circumstances for those will be. so we're going to have to find out more information from the administration on how all this will play out. suggesting the iranians might come back for negotiations on a new deal with the united states. here's what he said. >> when they do, i am ready, willing, and able. great things can happen for iran and great things can happen for the peace and stability that we all want in the middle east. there has been enough suffering, death, and destruction let it end now >> the president also had a comment that a lot of observers read as a message directly to

north korea with which this president hopes to negotiate a new nuclear deal here's what he said there. >> today's action sends a critical message the united states no longer makes empty threats. when i make promises, i keep them >> so joe, the idea there is the president is telegraphing to the north korean side that if he makes a promise and negotiates a deal with them, he will keep that promise even as he's tearing up a deal that the united states engaged in with iran under the previous administration so the idea is that his word is his bond at least when it comes to any potential deals going forward here, joe. >> eamon, before we let you go here, you're in the swamp. we learned the swamp is deep at&t, michael cohen, the whole thing? >> yeah, fascinating, right at&t saying they hired michael cohen for $500,000, i believe it was, to provide insights i think the big question is what

work product did michael cohen produce for at&t and do they have any evidence that he provided them those insights i think we need to know a lot more about that. >> we're going to have an at&t board member on the show in just a little bit >> curious to hear the answers >> thank you see you in a bit coming up, more of your corporate headlines including the walmart deal with flipkart time now for aflac's trivia question what was the name of the first phone to synchronize with apple itun unites the answer when cnbc "squawk box" continues thanks, dad! break a leg! aflac?! not that kind of break. oooh! that had to hurt. aflac?! not that kind of hurt. yeah, aflac paid us cash in just one day to help with our car payments and mortgage. aflac! perfect timing! see how aflac helps cover everyday expenses at aflac.com.

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now the answer to today's aflac trivia question. what was the name of the first phone to synchronize with apple itun itunes the answer, the motorola rok rokr e1. good morning welcome back to "squawk box" this morning right here on cnbc. we're at the nasdaq market site in times quare among stories front and center at this hour, walmart taking a 77% stake in india's e-commerce company flip cart. it's the largest deal they've ever done.

the deal announced just earlier this hour. also mortgage applications fell 0.4% last wreak it's according to new figures from the mortgage association. the average 30-year mortgage rate did tick lower to 4.78% anheuser-busch beating estimates. the brewer of brands like michelob did see sales volumes in north america fall by 4.1%. that compares to a year earlier. disney's quarterly results beating expectations on both the bottom and top line. our julia boorstin sat down with bob iger and pressed him on his reaction to comcast potentially topping disney's bid for fox julia, good morning. >> good morning to you, becky. well, bob iger wouldn't comment on the bid we hear comcast is preparing for fox. just saying that the deal that disney made for fox already received shareholder approval.

he's confident it will receive regulatory approval. with comcast also topping the bid for sky, i asked what he and rupert murdoch are talking about and planning about making a counteroffer >> i talked to rupert on a regular basis about a number of things including about sky i don't have any -- there are no headlines there. >> you want to tell us what you and rupert have decided to do about countering comcast for sky? >> i don't want to even speculate that anything will be done >> as for disney's earnings, they beat on the tom top and bottom line at the studio and the theme parks. most surprising is the fact that media networks like espn performed better than analysts expected >> declines this quarter were less than declines we have seen in the last two quarters you're seeing continued growth in the digital distributors. and that's great for a number of

reasons. because they carry all of our channels and we think it's a very consumer-friendly proposition. so the growth of those is offsetting to some extent the losses on the more traditional platforms. >> iger also said that disney's new digital platform is off to a strong start though he wouldn't say how many people are subscriber. back over to you >> all right thank you very much. when we come back, chamath palihapitiya talks facebook and regulation as we head to a break, take a look at equity futures w indicated up 126 stick around mr. elliot, what's your wifi password?

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it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. let's get back to our guest host chamath palihapitiya. he's also partner of the golden state warriors how many game dos you attend >> seven years ago it was 45 >> and now >> this year, one. i've missed all the playoffs because i've been working. it's been really bad >> so you close it out and steph curry's played more than he played knee's fine at this point.

>> yeah. knee's fine. >> so you start monday in houston. >> exactly >> do you foresee a problem with houston? >> no. >> when do you foresee a problem? cleveland? you don't foresee problems ever? >> yeah. they're amazing. >> so to bring it back to what we were talking about, the entire s&p 500 being disrupted, do you ever see live sports being disrupted? i don't see how you disrupt live sports >> when i -- when there's five of us that came together, the principal ownership team to buy the warriors, my friends and my family office were completely against it and they said this makes no sense. it's a vanity investment i said actually, i think about it completely the opposite way which is so much of our time is in front of a phone. we are no longer actually looking at people and we don't have any connection to the people around us and i thought if things like facebook and google and snapchat

get there, the thing we're all going to want is the opposite of that as well and i thought sports was going to be the best thing so i looked at doing other things as well i mean, i tried. i dabbled in restaurants >> i liked you more because i thought it was a vanity investment that you could do because you can do it. and now you're telling me it was about money deep down just -- about being in the right place at the right time. >> i also wanted to be a 34-year-old minority investor in a basketball team. >> didn't you want to be in those chairs that aren't eight rows up? you didn't want to be watching right there. >> that wasn't that motivating like -- >> okay. i'll take your tickets then. >> if you're in the west coast, you can. i really wanted to do it because i thought it made a lot of financial sense. >> content is not disruptable. so it'll never be disruptable? >> not live content. not basketball but football will for

concussions. >> oh. if you go and survey parents today across america and compare that to 20 years ago, i bet you it's probably at least 50% less, the number of parents willing to strap them into a helmet and say go ahead, hit that other kid in the head. >> sport by sport, it's different. baseball's got its own problems. >> you have a different view on the nfl. >> do i? what's my view tell me my view. why don't you -- i i don't need to talk. you just tell what my view is. then tell me how i feel about guns and everything. go ahead >> that you can play football forever. we're not worried -- >> i'm not worried about the nfl, no. i think there will be people that see themselves as gladiators which they have all along. you do everything you can technologically to protect these guys with helmets and everything else but it's not going away. >> it's not going away but you think where is global growth it's not football. it's not baseball. >> baseball's local. >> by the way, here's the other problem with baseball. it's five hours or six

who has that amount of time? the beautiful number of basketball is it has a small number of players. >> no helmets. >> you're up close to them the game is two and a half hours. it's high pace, lots of scoring. in many ways it has the best boundary conditions for entertainment, fun, affinity, brand. >> i watched 24 hours of the masters though, chamath. >> and there are the handful of events like the masters which can be exciting in moments >> i like it the entire time. >> did you see on instagram phil mickelson challenged tiger woods to a high stakes golf match? >> no. >> i think they're -- i think they're playing it at the players in a group i think that they're together and they haven't played much >> i mean, i would pay per view that >> so we're not disrupting that. and i guess there's other live events that -- >> music >> so then you're talking about the delivery -- the pipes get

commoditi commoditized everything else changing, content is still king. >> i think content has tremendous value things like sports which are also unique and highly valuable have value it's universal and global. at the other end of the spectrum, shows that are produced differently for specific affinities have value but not nearly as much there's not going to be the cultural gashtalt moving things. it's not as if it was "friends" is decade ago where the last episode you'd have 70 million people or what have you watch it we are past that now >> so you make a really interesting point about how all of these companies in silicon valley have actual access and information directly with their consumers. for a netflix, does that business model make sense where you've got to spend $7 billion to $8 billion potentially on more content every time around >> you're going down what i think is the most important question happening in silicon

valley which is what is the right business model for the future i think companies like netflix and spotify are showing us that having a direct relationship with your customer, where your customer and your consumer are the same, is probably the best long-term business model. >> because they can be smarter about the content they do develop based on what you watch? >> yeah because i think you have a relationship with those kinds of companies where you understand the data that's being collected. it's then purposefully coming back -- >> i asked you a question about that amazon -- not amazon but netflix has been $8 billion a year if we all looked under the hood and really could see what shows are working and what shows aren't working and all of that, do you think -- and with the same type of transparency that most networks have, you think you'd say they're spending the money efficiently? >> yeah. >> you do? >> absolutely. >> you don't think it's masking -- the cost is masking anything else? >> no. in fact, i think what you'd see

is a couple things there are probably three buckets of content that they're creating one is to keep people around one is to acquire new people in existing markets and then the other one is to help them seed and launch completely new markets entirely. and i think when you segregate that out, they all have different values to netflix. and that's why you end up with numbers that may not seem obvious on the surface but underneath i bet you there's a strong discipline and science around how they do that capital allocation >> this is thinking about a world where i wake up on sunday and there's six soccer games on that i'm going to have to sit through. that's -- don't -- you're not dooming me to that, chamath. there will be nfl. can you imagine? >> no. >> six three-hour soccer games >> be honest do you watch the same amount of football you did five years a

egg? >> i have different reasons why i don't. >> i think the answer is there >> i'm still excited also world series and playoffs, where every pitch, foul ball you almost have a -- that can be great too. every sport can have moments final four how great is that? i don't know what to do with the shot clock on the nba. sometimes i think it's too short because there's no plays anymore. they just run around remember college there was actual playing >> imagine if there was a four point. >> andrew is very bored now. we digress when we come back, we have much more from chamath palihapitiya who's with us for the hour and then coming up michael rubin. also rapper meek mill. we will ask him about his drive to free mill from potentially years behind bars. stick around "squawk box" will be right back.

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adt reporting quarterly profit of 34 cents a share. topping by ten cents of estimates. less people switching around and electronic arts topped estimates by 14 cents. although the video game maker did give a weaker than expected current quarter outlook. electronic arts also announced $2.4 billion stock buyback program. when we come back, chamath palihapitiya on the facebook fallout and potential regulation and coming up at the top of the hour, glenn hutchins will join us we will talk the fed's impact on equities stick around "squawk box" will be right back. mom you called?

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look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. let's get back to our guest host this morning. social capital founder and ceo chamath hal. a -- chamath palihapitiya. here's what he said about facebook the last time he was on this set you talked a little bit about some of the potential dangers of the internet at large and just talked about how your own kids, you wouldn't have them spend much time on any screen. >> i think the two things that are probably true irrespective of whatever company is successful at any point in time, it's easier than ever to confuse

truth and popularity just us as a population of people trying to be informed is harder than ever and the second thing is that we really have to understand what relationships we have with these companies particularly when the things that we get from them are free right? for example, if someone gave you a car and the seat belts and air bags didn't work, what would you do well, you couldn't do much because the car manufacturer would say what did you expect, it was free. >> i guess you're using that as a description of what we should be thinking from facebook and these companies. >> we have gotten incredible value for 20 years on the internet for free. and we're finally at a point now where we have to start asking ourselves, okay, should we be paying for some of these things so we have some established expectations now, that doesn't take away the ethical responsibility of every company to treat us fairly but there's probably going to be a basic set of expectations that everybody lives by and then frankly by having more of a paid relationship -- >> would you pay for facebook, a

version of it? >> a version of it, sure >> with no sponsors? >> for me specifically what would i be paying for? i wour paying for assurances around my data and privacy on how it's targeted and tracked. facebook, google, et cetera, that would be a relationship that i personally as a consumer would want >> i think the bigger issue comes when there were things that are now being revealed about facebook not knowing what was happening with some of that data let alone the users knowing what was happening with their data and you're right you should have an expectation that something's for sale if you're getting these services for free but all of these things have led to the point where regulators are potentially going to be getting involved in fact, european regulators are getting involved this month. the question is what will the u.s. do? will it follow suit? and what will it mean for business models? >> i think business models are going to change.

i think that valuations are going to change. i think these companies will get rerated. why? because two things are going to happen in my opinion we have european regulations around data privacy. other countries will copy it then we will realize that they are insufficient or they were not complete or well thought out. that's 100% guaranteed and then those will slowly change and what that will do is restrict many companies from gathering data, period that's one thing that will probably happen over three or four years then the other big thing that will happen because this is not a direct relationship between these companies and customers because the real customers are the advertisers that pay, there's going to be a system in my opinion that's equivalent to kyc or know your customer. so today i can go to any internet site i want, use a credit card and spend millions of dollars to amplify anything i want that's probably a world that has limited days and in that world, i suspect

what governments will say is if you intend to run advertising in my country, you have to start small, identify who you are, be legitimatized, and then you can slowly grow. what that does is slow the funnel of how revenue accrues to these businesses >> jeffrey gunnlack, he had a tweet i wanted you to clarify. he said guy on stage after me which i think was you at sohn told me he's short facebook since january. then on tv he said he disagrees with the short call. both can't be true >> what i said was you cannot short facebook based on mark's testimony and a correlation to oil. that to me does not make sense what i said on television was if you're going to short that business, you have to take a step back and ask these other more fundamental questions about business models. >> were you short facebook >> i was not short facebook.

>> so he was wrong in his tweet that the guy said he was short facebook were you short in february >> we should not talk about the past, but i am not short facebook we believe in the company. >> but there's a time you might have been short facebook >> no. it's not good to sort of bring up the past, but no. >> talking about that, though, the case you just laid out is that you do think a lot of these companies valuations will come down if they can no long aggregate if advertising dollars another way. >> look at apple right? look at the multiple on apple. even though it's approaching a trillion dollar market cap, that today trades at seven or eight times or whatever it is. so you've had multiple compression. and i suspect these bigger companies will have that same kind of re-rating. but the drivers of it won't necessarily be scale >> chamath, thank you so much for being with us today. >> always awesome to see you coming up when we return,

north ireland chairman glenn hutchins is going to talk deal making, regulation, taxes, and much more. he's our guest host for the next hour and then later michael rubin is a big reason why meek mill was released from jail as he appeals drug and gun convictions they're going to discuss the time behind bars and the campaign to set mill free on bail and why the justice system needs to be revamped stay tuned you're watching "squawk box" on cnbc do to their retirement savings. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they can focus on new things like exotic snacks. talk with your advisor about shield annuities from brighthouse financial- established by metlife. pah! thano, no, no, nah.k. a bulb of light?!? aha ha ha!

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new this morning walmart's biggest deal ever is official the retail giant buys a majority stake in flipkart for $16 billion. oil hits a three and a half year high after trump says the u.s. will pull out of the iran deal investor and at&t board member glenn hutchins is our guest host we will talk deals and regulatory hurdles the final hour of "squawk box" begins right now ♪ live from the most powerful city in the world, new york, this is "squawk box.

>> good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen along with becky quick and andrew ross sorkin he's got a great big fancy nba championship ring on it's weird it happened, but we will have eventually three part owners of three of the playoff teams. >> and a big game tonight. exactly. between the "squawk box" and our next guest a quick check on the markets this morning up triple digits we can see now at 103. it's been weakening a little bit. it was 150 at one point. up ten on the s&p. nasdaq up 22 oil is up sharply. oil was above 70 i think we're going to take a

quick look there's the 10-year which is right at 3.00% all right. a little bit of deal news to tell you about this morning. the big one walmart buying a majority stake in india's flipkart $16 billion. the retail giant will own 77% of the e-commerce company the remaining will be owned by tencent, microsoft also want to get you caught up on earnings reports this morning. coty reporting 13 cents a share. revenue topped expectations. they cited strong prices of luxury products. also anheuser-busch beat estimates. but the brand did see sales volumes in north america fall by 4.1% that compares to a year earlier. >> then there is disney beating

estimates on both the top and bottom line. revenue of the company surging at $14.5 billion thanks in part to the success of the "black panther." bob iger sitting down with julia boorst boorstin -- regardless of the pressure that may come from rival comcast. >> i'm not going to speculate at all about either what they're doing or, you know, why they're doing it i can only say we made a deal in december that received unanimous approval which is important by the 21st century fox board we're in the process of filing what we need to file do gain both regulatory approval and shareholder approval we're certainly excited about that acquisition and remain confident that it's going to go forward. >> take a quick look at disney shares the stock is down by about 75

cents this morning let's get to our guest host g n glenn hutchins >> it's a pleasure to be here. at least with you. >> there are so many directions we could go with this opening conversation but i want to start with the media conversations disney, fox, comcast, at&t, time warner i realize as an at&t board member you can't talk specifically about what's happening with that court case, but you spent a lot of time thinking in this arena of how things are shaping host. our guest host for the last hour chamath palihapitiya talked about how he thinks regulators are looki ining in the wrong direction. that they should be looking towards silicon valley because those are the ones he thinks runs the future. how do you weigh in? >> i think the regulators are looking in the wrong direction for two reasons. the first is the first one you articulated. they're clear that they host companies that evolve into natural monopolies

google, facebook, amazon, and maybe put netflix in that group. they now are coming into the entertainment space in ways that create enormous consumer benefits a lot of consumer risks associated with the privacy issues for sure. that have to be shorted out. they also bring massi ivive -- generated content. to look at the space, the traditional space and say that's where understanding the market is just wrong. it's not instructive so your prior guess was right about that point one. point two is that you mentioned regulati regulation one that joe and vi a lively

debate going on over public policy matters one thing i'm quite sure we agree on is this administration has done and can do deregulate the agenda talking about they've got the repeal net neutrality rule which i think was a good one going over the futures of dodd/frank want to make it an area without making the system less safe but making it easier to manage in there. one of the key features of regulation is the predictability of its enforcement we understand how they're being forced right now you don't know how with a horizontal vertical mergers being challenged there's been a huge amount of

uncertainty injected into the transaction where there previously has been a playing field of what the rules were >> are we going to understand once the supreme court rules on at&t/time warner >> it's not the supreme court. it's the zrodistrict court >> will we understand that >> we'll understand it for that case but we don't know how -- what i'm talking about is the enforcement of the rules because most people don't have the resources or time to get there. >> how do you think of sprint/t-moblie. the argument of going from four to three or are we -- or if you were to listen to the coo of sprint marcelo or the ceo of t-moblie they'll said it's

eight. >> not an anti-trust argument. it gives you a sense of how uncertain they are needing the resources to build out 5g right? but i don't have many from providing because of the market from four to three this is a classic market because the technical term were measures of concentration in the market >> and it's already over the limit. >> it's a market very clearly where they would suggest that this thing shouldn't happen. but again, it is completely unpredictable to people in the market place you don't know, i don't know they get something done they didn't think they could get done 18 months ago. if you're going to change the way in which a very large set of rules like that are enforced, you typically go through a long

process of having discussions, producing white papers, having conferences about it, getting comments on the guidelines and then enforcing them. not just shooting from the hip if you look at it, you can see there are deals out there with almost no breakup fees they don't know what's going to happen that's not good for the market >> the purchasers don't know what's going to happen >> right they don't know how they're going to react so this is directly contrary to the notice of deregulation injecting uncertainty into areas that are regulatory certainty. >> and potentially freezing up capital moves along the way. how do you think this plays out in relation to comcast potentially jumping in for the fox assets >> i think all this goes back to the last -- to the first part of the discussion which is there's a huge -- it's actually a really great thing in some ways

because everybody's trying to figure out how they can both compete, which is what we want compete with a fang group which is really good and they're also using thinking hard about and spending money on adopting technologies to deliver content in different kind of forms in different ways to consumers. so it's a really great time to be part of all this. and so if we just had -- if we knew what the rules of the road were, wekt get it done >> i think we'd be remiss if we didn't ask the questions at&t did pay money to michael cohen to try to understand the way donald trump and the trump administration think about the rules. meanwhile, michael khocohen, of course, was paying off people on behalf of the president. did you know that at&t paid -- >> i learned about all this this morning as i was sort of walking down here to the studio.

so i don't know. i don't have any insights into it by the way, it's not something i would expect to know it's a relatively small part of what the management team in a company that big does. i would say "a," i can't add anything "b," i'm not surprised that a whole host of companies not just at&t hired a whole host of people who -- from whom they thought they could get insight in the immediate wake of the trump election because it was unexpected. and rules were changing. people wanted to understand things i'm confident whatever at&t did was legitimate and for business insight. >> unfortunately they couldn't get any of the money back from the clinton foundation which they had already spent to try to suck up -- >> joe, you've been unusually quiet this morning there are signs of life over there. >> let me ask you this. >> no refunds. no refunds, no returns what this can't happen. >> no retreat, no surrender. >> given the optic -- >> little bruce springsteen

quote here >> given the optics of all this, does it upset you at&t would try to hire somebody like him? >> i need to understand it before i have a reaction i just don't understand it >> that's so unusual >> yes >> no, for our guests at large that's amazing >> the optics of russia changed after everything there were russian oligarchs working over the past five years. michael cohen was trump's lawyer before he was raided and paraded off in cuffs and everything. >> no, but the issue of course is michael cohen paying off people on behalf of the president. that is now clear. >> didn't know that either back then it was just here's someone close to trump you're trying to -- >> you don't know whether michael cohen was effectively marketing himself to corporations and suggesting that he has a close relationship with the president and can get things done in that way >> of course that's the whole way everything -- >> okay. but that goes back to -- >> you saw the mick mulvaney stuff.

the only lobbyists people he entertained were the people that paid it is the way of the world >> but that's a terrible thing to -- >> your voice is going so high on us. you're so upset. >> he spent time in the white house. >> i know. >> he knows. you can't look at that -- right? what mulvaney said about the relationship that companies have he said he would only see people who would pay him. >> that's a person who's sitting in elective office, right? opposed to a consultant. there's a little bit of a difference there i think you're right about that but there's a whole industry as we know in washington. >> no question >> it happens on wall street and stocks people ask questions and write reports. someone who does a lot of due diligence, big consumers of these things >> fair enough. >> but if you deal with elected officials in office and they're receiving the payments, that's where it goes over the line. >> okay. glenn's going to be with us. we will come back to him on so

many other issues in a bit coming up, president trump has made his decision. the u.s. is out of the iran deal >> today's action sends a critical message the united states no longer makes empty threats. when i make promises, i keep them >> we're going to talk to the former u.s. ambassador to syria, iraq, and afghanistan after the break. stay tuned you'reatin"saw rht re on cnbck"ig eadquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.

making headlines, ford could be forced to temporarily lay off thousands of workers after a fire knocked out production at a supply facility in michigan. that facility is key in building ford's best selling and most profitable vehicle, the ford f-150. they've already halted production of the f-series at the plant in michigan. could mean thousands of layoffs until ford could get the assembly lines running again all right. check out the price of oil this morning. sharply higher after a couple of

days that didn't seem to make a lot of sense because we knew it was coming. but up almost 3% today president trump withdrawing the u.s. from the iran nuclear deal and reviving full sanctions. >> today's action sends a critical message the united states no longer makes empty threats. when i make promises, i keep them >> for more on this issue and what's happening, let's bring in ryan crocker, former u.s. ambassador to syria, iraq, and afghanistan. now at princeton's woodrow wilson school. thanks for joining us. >> thanks for having me. >> just give us a quick synopsis of your thoughts on what happened yesterday >> the impact remains to be seen and measured nothing happens overnight. i think we've all seen the

treasury guidelines that firms and business dealings now dependent on the sector have between 90 and 180 days to wind down we have seen britain, france, germany and iran pledge themselves to keep the agreement going. so i think what we've done here is just opened the door to what will be a pretty tumultuous period ahead it may result in some other options or modifications that would ease all of this it may not but it's going to be playing out over a number of weeks before we can really measure what happens. >> you know, when people say we already gave them the money. hundreds of billions of dollars. since it's already gone, we might as well stay in the deal do you stay in a deal that was deeply flawed from the beginning just because it -- that's what you're stuck with at this point

i'm not sure which rationale which makes sense long-term. and whether something, you know, trump asked for four things to be part of what would be the next deal. what are the chances that he actually is able to negotiate those next -- those for things not some agreement that has no staying power. >> well, that's certainly an option how many do you have to wait before congress can do any such thing? most deals are flawed. it's a negotiated arrangement in those kind of conditions you give something, you get something. my take on the agreement is that it was a reasonably good arms control agreement. i think where the obama administration went off the rails was in trying to interpret it as some kind of treaty of peace, love, and friendship

which it most definitely was not. ballistic missiles, are they a concern? sure, they are iran's behavior in the rest of the region, sure it is but you could only load so much into the nuclear deal. the europeans have expressed readiness to work with us on ballistic missiles that's great there's nothing in the deal that precludes us from standing up to places there we just chose not to do that that would be the trump administration that chose not to do that as well as the obama administration there's a time for a few deep breaths here let's see where conversations go we're going to be intensively engaged in iea, the p5+1 there are lots of actors in this and lots of possible actions the announcement's been made let's see what it actually means. that's not going to be clear for

at least several more weeks. >> our two allies in the middle east, what's in it for them? everybody brings up we're isolating ourselves from europe. europe obviously, france, britain, they love to do business with iran and there's dollars and cents. i mean, aren't the motives more noble for israel and saudi arabia they're certainly not on the same side of things and yet both of them disdain the deal >> nobility of motive is -- >> well, that's better than just money, isn't it? we all understand why europe wants to stay in right? but what's best for the future of the world >> in complex issues there could be more than one issue sure they have interests in making money but take a look at the whole

thing. the impact of our position isn't direct so much as it is indirect we're not doing huge amounts of business in iran it's the secondary effect where european companies have to look over their shoulder to see if they're going to trigger something that's going to bring sanctions down on them so again, it's a complicated affair with israel and saudi arabia, i think the real problem there for both countries was the way the agreement was sold by the obama administration as, you know, the bright new day well, it isn't that. we just have to keep it from getting darker >> regime change doesn't work, obviously, but that would be a great end result to all of this. because it's just dealing with this regime is never going to be a walk in the cake, as they say. i don't know we're prejudice here, but this would be a better place. i think the iranian people would be better off with a different regime i think that may be in the back

of trump's mind as well. right? >> yeah. well, good luck with that. the last time we changed regime in iran was -- >> we don't need to chget. rrto say good-bye so quickly but thanks for your time today, sir. >> thank you alerts -- wouldn't you like one from the market

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news we're going to bring you the numbers plus rapper meek mill was released from prison after a closely watched case you've probably seen it. came out right before one of the playoff games. was able to make it to the game in time because of one of our other guests he will join us with michael rubin, part owner of the philadelphia 76ers among the high-profile names advocating for meek mill we'll be right back.

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welcome back to "squawk box. it's jim iuorio from chicago inflation data matters higher than expected with the ppi final demand this time lower than expected. it came out at plus 0.1. ex-food and energy is as expected ex-energy year over year is 0.23% this reverses the numbers from last time where we thoughtthe perception of inflation was there. these numbers matter a lot the markets want to believe the fed is going to tighten at its own pace and not be bullied by inflation. the stock market the s&ps were up about nine handles coming in.

they stay up about nine handles. they gain just a hair. it basically stay there is we didn't have a huge the change back to you, becky >> okay. thanks very much >> meantime let's get back to our guest host glenn hutchins. we haven't really had this discussion about the privacy stuff. did you have a take on that in terms of what you've seen in terms of how all of this is changing >> for sure. i mean, i'm not sure if i have the answer, but we clearly have a problem here the motion that for users of iphones and android phones, that facebook could take all of that data off of that device, is something the vast majority of people have no idea what's going on

you back up to there from what other parts of your privacy to what extend are you comfortable with that? i think these are two implications one is people need a better understanding of what's happening with their control over that. and second there needs to be a set of rules that these guys need to abide by because you certainly -- since they aren't in the fcc process, they only have ftc regulation. they only have that much closer regulation of what they do i think that clearly has to change we don't necessarily need to go as far as europe, but the risk is unless the industry cleans its act up, we go as far as europe the consumer services that we can get from this as a result of people knowing enough about us to enable us to search and discover tools we want to use. >> and probably on valuations for some of those companies too.

if the regulations are going to be as strict as europe across the board. probably changes what they can and can't do >> i think in the longer term you get better growth prospects. the lighter hand of regulation that sets boundaries gives consumers confidence just like the analogy used when the credit card companies were told they had to take responsibility for the fraud on the credit cards all of a sudden these credit cards were excluded because consumers had more confidence in them >> that's a good analogy give us a playing field we understand and we'll play the game >> you've weighed in before on bitcoin. yo had bill gates saying he wanted to short it charlie munger saying it's scummy and mr. buffett also taking a

critical look at it. >> they're talking about completely the wrong thing right? enable the internet to move around the world at the speed of light. the bitcoin currency is not the end point. and they're all focused on that because they're thinking about it from a trading perspective. the unknown thing about it as input to the larger solution they talk about it as gold, like copper >> could the outcome be one that's a positive one and one that takes off and bitcoin still not be anything more than a speculative? you could have somebody like an xrp or ethereum or lightcoin actually becomes the token that's used. but the token of exchange at the heart of it will be there.

>> and one will be the trusted token. >> not the only one. different tokens will be used for different ones >> let's come back to this discussion >> president trump just tweetedd they seem to be in good health also a good meeting with kim jong-un date and time -- or date and place set. let's get to our two special guests meek mill has been navigating the american justice system since he was 18 years old. the rapper and now a public figure has just celebrated his 31st birthday he is still battling the courts in what might have been just another young man caught in the u.s. legal system has become a spark for public outrage shining a light in a way that hasn't

been done. with major social influencers getting involved like jay z. many have advocated for his treatment under the law for years. now they're all part of a larger conversation about reforming the justice system joining us now meek mill and michael rubin, 76ers co-owner and outspoken supporter of meek. >> thanks for having me. >> the "dateline" piece was significant. it was an hour, lester holt anchored the entire piece and highlighted exactly what we're talking about. i was able to see that and since then i know you were on cbs for "gma." the issue itself is brought home by your case you said you don't care if this is about you it's about shining a light on what does appear to be two

different systems in america depending on whether you're a person of color or whether you're not >> yeah. it was basically giving a broader look on situations where too much light is in shining dateline" gave us platform to talk about the ins and outs i use as an example. you see the two kids in starbucks. but they was arrested for lounging in starbucks. being in contact with the police on pro bags is a violation whether you're serving time for probation, you could go to jail. >> it was now 13 years ago you're a young man that's how you got into this system in hindsight, the details are

that the arresting officer -- i don't know is he even given an interview? but he was implicated in perjury in other cases. >> another cop that arrested him came forward he did point point the gun >> i think the intention is to help take an 18-year-old kid and as he's progressing into manhood, try to get him on the straight and narrow. as it turns out, it almost looks like it turns into a vicious cycle of being institutionalized. and it almost is counterproductive to what we're trying to do here. is that fair to say? >> yeah. it's like i just came from prison, actually, it was filled with people that was abused drugs. people who have mental illness these are the people on parole and probation.

is million of them probably only really pose a threat to society. the rest of them have probably been on long-term probation and i actually has been to be one of them through my life, i was in wrong places at the wrong time i grew up in a place where police interaction was a daily basis. i ended up with a background as years went by, i followed my dreams and became a music artist and started to be able to take care of myself and my family this probation -- >> it's following you. it's following you and you pop a wheelie on a music video and that's a parole violation. >> that landed me in prison for two to five years. a traffic violation got me a four-year sentence >> and one thing that i've noticed over all this and talking about it is the arresting officer was african-american the judge is african-american. so it's not -- we're not saying that it's racism it's a systemic problem in the

system itself. >> yeah. it's systematic problem. it's not a color problem i just think i'm an inner city kid. if you on probation in the inner city where you got all types of strike forces, different police forces where they crowd these ghettos and these areas a lot and strike a lot a lot of people come in contact with police. you have a more -- you have a better chance of going to a prison than a kid in the suburbs because in the suburbs you don't really come in contact with the police and it's not really about color. it's just about circumstance, environment, and the policies that's placed in certain environments like if you make one mistake and a mistake not saying committing crime. you don't even have tocommit crime to go back to prison no matter if you made a mistake in 2005. if you're on probation 13 years, you could be on your last day of probation and make a simple mistake like miss your probation

officer and still be sentenced to three, four, five years in jail >> and they can add probationary years. you might go to new jersey from philly and forget to tell someone, that's enough to add more years of probation. >> what's the answer >> that is the question. what is the answer >> creating policies that help it be -- like, if a guy's a drug addict, if you're addicted to opioids, they have a medicine that could help. methadone. there's a few they could help to get off addiction from opioids with probation, if you get a -- you show up positive for opioids, nine times out of ten they would send you to jail than rehabilitation the jail is for the guys that was on heroin addicted to opioids and pills and these guys are not really criminals they're victims. >> how much of this is a federal issue? how much of this is state rules and issues >> everything is different state parole and federal is

different. like, federal parole, if you catch a case and you're proven to be innocent, you're free to walk on state parole, you don't have to be guilty just the fact you have police contact is enough to sentence you again. >> michael, why'd you get involved with this >> you know, for me i kind of couldn't not get involved. meek before any of this happened was a close friend of mine we live ten minutes apart from each other been together hundreds of times before this has happened he would always tell me about this crazy legal situation i remember the first time we met four or five years ago and he was with his ex-girlfriend and i was with my daughter and they were chatting. meek said you're the guy who owns part of the sixers. you know, when i started learning about meek and he was asking me a ton of business questions. i said give me some of your background he said, you know, charged as a kid for pointing a gun he said, you know, what kind of

black kid would point a gun at ten cops and still be here it's not even true i heard him but i didn't understand as time went on, he kept telling me about this judge who had a vendetta for him and about this crazy legal situation. i heard it but didn't really understand and then, you know, last year he was around all the time. kind of be like, what are you doing? go to work like, you're this incredible artist why are you at every game? why are you at my house all the time why are you always available you don't understand, i'm not allowed to travel. how are you not allowed to do your job i'm not allowed to travel. so after the wheelie happened where i think 20 cops came and arrested him a day later because they saw that on social media here in network city after he broke up a fight which he was arrested for until they looked at the surveillance that he was breaking up the fight and then dropped the charges the judge called him in for a probation violation. not the probation officer.

not the district attorney. but the judge. and soi then wrote a letter because i have a lot of roots in pennsylvania that explained how strongly i felt about him, how i felt this wasn't the right course of action he said to me the day before i'm really uneasy. i said i'm coming with you he said no i said i'm coming with you to the hearing. and that was for me a life-changing moment i'd never had anything that really bothered me with a cause that wasn't my own and so i sat in court with him and watched the judge kind of violate the probation officer and abuse the district attorney. then when they both recommended no sentence and the lawyer said nobody's ever been sentenced when you have a probation officer and district attorney recommending no sentence and she gave him four years. i said we have to fix this immediately. >> let's ask a broader question about the justice system for a long time the problem was the judges did not have enough discretion there were mandatory sentences for drug offenders, three

strikes and you're out this sounds like a problem for judge had too much discretion. >> yes this judge went against the recommendation of the da and probation officer. against the recommendation of everybody. so i think in pennsylvania which we live in a great state and we're in a great city in philadelphia, they want to change the laws now. they look and say probation should have a three year cap or four year cap. meek's been on probation i think 11 years so far. and he has another four years left i couldn't be on probation for 15 years without violating my probation. could you believe that popping a wheelie in a music video could lead you to jail for two to four years? it seems impossible, but it did. the state has to change its laws and it will. the governor is very focused on this today politicians are very focused they're looking at what happened to meek and say we can't let this happen. >> glenn funds studies of areas

in boston where, you know, trying to figure out how to, you know, this cycle that urban kids find themselves in how to fix that. >> i think it's very, very powerful and very positive that you two guys are here doing this both of you speaking out like this because for every person like you as you suggest, there are thousands and thousands that don't have this platform >> yes thank you. >> so i'm very moved by your story as well. we started something called the hutchins center for african-american at harvard. we made the largest donation ever made to african-american studies. we gathered together the leading scholars in the field looking at this subject i make two kind of points. one is the people look at this historically see a continuum from slavery to sharecropping to jim crow, brief interruption of civil rights -- and it's a continuum of the treatment of this part of our citizenship or

history. and it's something that we have to understand and stop it has very deep political economic and social roots. today african-american youth, males, have a -- they are the equivalent experience in high school and college they're in and out of the prison system more experience prison than college today. and we have to get at that secondly we have to also understand and this is not my work, it's the work of the scholars who do this it's one of five or six conditions that all come together to create this. you have work -- there's also no work in the community. the most famous book on this is when work disappears when the jobs left these communities. the african-american middle class which has quadrupled since the death of martin luther king have left these communities. these communities have very little what's called social

capital. bowling leagues, baseball teams, ymcas which create things for kids to be part of something other than themselves. they have high degrees of inequality and only one parent in the household those five or six things all come together to create a self-reinforcing coe ining cult makes this is a toxic culture and breaking that becomes a very important thing that we have to do >> i got to tell you one thing i've heard from this experience. meek used to say to me there's two americas i'd say there's not. we live in one great country he says there's two americas i'd say there's not. when i sat there on november 6th and watch what happened to him, i realized he was right. there are two americas from my perspective, we need to work to bring that together. and that's the opportunity that i think, you know, this really shed a light on. sounds like glenn you are foc focused on this as well on how to bring everybody together. >> we hear so much about education and it's true.

night shyamalan, you know, when you look at where urban kids -- the home life that they go home to, it doesn't matter if you're fixing the schools you've got to fix the home life. if your father's not there because he violated probation, now he's not around so the next kid's father isn't around. >> i always address the fact when people don't come from my world, i make sure i address the fact and let them know, like, me myself i basically was born and raised in a ruthless environment my whole life. in front of six, seven little kids, how old were they? >> 7 or 8 years old. >> i asked them, how many of y'all seen somebody get shot before they said me, and so fast. every one except one of them >> every 7 or 8-year-old said they had seen somebody get shot. couldn't understand it >> we took ten steps up the street, we looked to the left. there's bullet holes in the

walls. it's across the street from a public school. me, i was born -- my father was killed when i was 5 years old and i was raised in a single parent home with my mother my mother doing eight hours a day at work. my dad in the my mother was a single mother. i have no supervision at that point in my life and that's all i knew. as i grew up, by the time i turned 18, i was in the system i had a record and when i came home, i actually dedicated my life to making music and started progressing. never been to prison again but small mistakes put me back in prison got me prison time two, three, four times without committing crime again of being a threat to my community. >> i mean, this is fixable in terms of the laws and the probation system which caused it -- it's almost self-inflicted the schools it's going to hard to change it or it seems like something if

the word gets out, it's something that could be fixed relatively -- >> i think there are a lot of easy fixes watching you wouldn't believe for me people say all the time why did you get involved this was a good friend of mine first he was wrongfully convicted. then a judge who violated things that no one would believe is possible and a guy who happens to be a famous rapper. he's got an opportunity to shed huge light and say how do we make significant change. people are rallying around it. people call me every day and say how can we help? how can we make a big difference what happened to meek isn't fair to happen to the millions of other people i think we have a massive opportunity. >> great like meek said, it's not about you but what we're talking about now there's thousands of kids that don't have a michael. >> yeah. and i have resources and people who support me you actually have a group of people who don't have people that don't have anybody to

support them or financially ready to play for a lawyer i came from being locked up with these people men sitting in jail for 20 or 30 years for crimes they did not commit because they're not financially ready to hire a lawyer or fund themselves to get back in court. there's so many different departments. i think it can be fixed step by step. >> meek, thank you great to have you in there's a game tonight celtics versus 76ers. >> thank you. >> thanks, guys. >> thank you, man. when we come bk,ac we'll see our friend jim cramer at the new york stock exchange. back in 60

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down to the new york stock exchange and jim cramer. walmart, flip card, disney earnings what do you think? >> i like a company that goes into india, which is a great market obviously pays a lot of money. amazon is willing to pay more. walmart down this much after being down on the last quarter seems interesting to me. disney, look, it's a long-term situation. there isn't anything that makes me want to sell it obviously, things are influx with what the parent company is going to do.

comcast. but the quarter was really strong and i don't like the fact that stocks go down on investment both disney and walmart are going down because the companies are investing. they're investing for the future and, you know, we over punish every company that invests for the future. >> we'll see you in a couple of minutes, glen. glenn hutchins says hello. >> hello how are you? >> wasn't quite awake. >> inside joke. >> we'll find out what it means when we come back. your company is constantly evolving.

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glen hutchins has been our guest host this hour tell us something new and cool you've seen in the world of technology. >> i've been very interested in changing the way we interact with our technology ar/vr. i saw the future a couple of days ago with a demonstration of the new magic link product think about the technology this is early stages very crude where it can go is extraordinary. imagine interactive technology immersefully in the world around you. today a lot of us have the voice assistance imagine being able to gesture

toward your technology, to have it respond to your eyes where you're looking and have it substantiate, in other words have it physically in front of you and manipulate all of that for purposes of interacting with your technology. whether you're playing a video game, interacting with customers or colleagues, designing a product, or just simply, you know, gathering information or watching a game and getting information about the game. >> i'm intrigued you'll come back soon and talk to us more thank you for your time. >> thank you. >> that does it for us today right now it's time for "squawk on the street. good wednesday morning welcome to "squawk on the street." i'm carl quintanilla, jim cramer, david faber. futures up about a hundred or so as we watch fall out from the white house decision on a iran