i'm seema mody, it's 5:00 a.m., here's your five at 5:00 president trump expected to lay out a new plan to bring down drug prices today. at&t reportedly paid $600,000 to michael cohen for help on its time warner merger. shares of semantic are deep in the red the annual report could be delayed due to an internal investigation. spacex scrubbing the launch of its falcon 9 rocket due to technical issues the company will try again. and hawaii on high alert

following new volcanic eruptions on the big island. it's friday, may 1 1, 2018 "worldwide exchange" begins right now. good morning, welcome to "worldwide exchange. let's get you up to speed on the market action. futures are indicating what could be a slightly positive open the dow slate ed d to open up at 25 points. the s&p 500 by 1 the nasdaq just about flat on the premarket session. as for the bond side of things, a lot of attention being paid to the ten-year note yield. let's look at those trades ten-year treasury note yield, 2.95%. still five basis points below that 3% mark we saw that hit as the bond option -- or just ahead of the bond option this week. we backed off since. a bit of demand coming back for that ten-year treasury note.

two years, 2.53% the last trade there. as for oil, a big deal now because of what's happening with wti and brent crude prices however we are seeing so far this morning wti prices just about flat on the session. $7.42. ice brent crude futures at $77.37 we'll have more on the markets later on in the show in political news, president trump is expected to lay out his plan to bring down drug prices senior white house officials say the proposal will require medicare part d plans to begin passing along the drug discounts they received to patients. but breaking from a campaign promise, the president will not call for medicare to negotiate lower drug prices with big pharma the president will lay out his drug plan this afternoon the "washington post" says it has obtained documents from an anonymous source that shows

at&t paid president trump's lawyer, michael cohen, $600,000 for advice on its merger with time warner. it's unclear what insights if any cohen provided at&t declined to comment on the documents but it did not challenge the authenticity at&t shares unchanged now. it speaks more broadly to the idea that there's so many moving part parts to this whole story. the companies involved, the big paychecks cohen made from some of these relationships >> a lot of layers to this story. arcelormittal, the world's largest steelmaker reporting better than expected first quarter earnings it is giving an upbeat outlook for the year demand appears strong in the u.s., europe and brazil.

shares are up 2.6%. shares of symantec plunging today. the company says it is looking into unspecified financial issues raised by a former employee and warned the filing of its annual report may be delayed. shares of yelp lower today revenue beat forecasts as the restaurant and business review site added more paying eiad accounts dropbox reporting better than expected earnings and revenues the storage provider added more new paying subscribers than analysts expected. appearing on "closing bell" the ceo said working with competitors has helped dropbox grow >> a lot of competitors have become partners because their customers have their information

in dropbox and dropbox wants that to be a good experience, tying the different cloud ecosystems together is a job we do better than anyone else >> so you're saying this is not a winner takes all field >> that's right. >> shares of dropbox are up % since their debut, but down 4% in extended trading. nvidia's forecast is up, but sales from cloud services fell short of expectations. those results led to a 2% decline in nvidia. news corp.'s third quarter earnings were in line with forecasts. revenue beat estimates results were driven by strong numbers from the digital real estate and book publishing units. those shares are off by 2% in the premarket trade. let's turn to the big retail

story this week. walmart's big investment in flipkart on cnbc.com we're running a story about how alphabet is looking to get in on the action. courtney reagan has more on this story. a lot of this seems like maybe alphabet wants to put a little bit of a counterweight to amazon, that's why this relationship is happening? >> potentially walmart said on the cal with analysts when the deal was announced, they said right now our stake is worth $16 billion and 77%. however there may be new investors that come on that will further dilute our stake we will remain the majority shareholder. google had been a name that had been floated not a surprise this speculation is coming about, and could be something that we see. i think there's a number of things that are attractive to alphabet here. they also have a stake in the game when it comes to selling android phones india is a big market to try to

penetrate or really continue to win for one of these mobile phonemakers. then also cloud. that's a separate business amazon has a big web services business that's going to be important for google to try to get in and get a piece of that. >> it adds to the number of u.s. companies already invested in flipkart, from microsoft, ebay, tiger global to add a name like alphabet, i wonder if that helps flipkart's profile, especially if flipkart is trying to expand out of india >> that's a good point, too. ebay has been an investor in flipka flipkart they said they will now get out of it. they'll sell their stake but make some money on that stake, reopen ebay india. i'm sure they learned a lot being there with the dominant player in flipkart i think all of these names definitely add weight behind this we know how powerful amazon is if you can grab a share here and there, whether it's helping to sell android phones or your

cloud, do it >> we've spoken about the blurred lines between technology and media. they seem to be the same thing these days is it safe to say technology and retail is moving that way? has amazon put everybody front and center with retail becoming much more technology oriented? >> i spent a lot of time talking about the way artificial intelligence is used in retail and for a long time amazon web services were involved in retailers businesses i don't know that they're totally separated these days, because they are a dominant player and you will need a cloud service if you're a retailer that arm of the business is competitive to you there's a lot of blurred lines with technology and retail and the leaders in retail, everyone wants them to have technology experience i think that's changing a profile of who could be leading

these retail companies in the future >> it gives amazon an edge in india, not only do they have the retail presence but they've been recruiting a lot of bollywood talent in india and unveiling content that is customized for the indian audience. so that brang recognition is stronger for amazon because they had that content arm >> definitely. that's a good point about the branding even if google or alphabet becomes an investor, it's still called flipkart, they're on the back end it's not front and center for brand equity as you see what amazon is doing on its own platform in india. >> such a fascinating story. >> so many pieces and trying to figure out how it fits together. a big interview yesterday on "closing bell" generating a lot of buzz. tim draper offering a staunch defense of theranos founder

elizabeth holmes >> i feel that we have taken down another great icon. this woman came to me when she was 19 years old, she said i'm going to transform healthcare as we know it she got bullied into submission. this was a startup it was a great vision. it was a great technology. she's going up against some very powerful people in the drug companies, the ama, the fda, she's transforming healthcare. somebody goes in and tries to transform healthcare, they'll get attacked in a lot of different directions and she was. this is one of the cases where the entrepreneur was defeated. >> draper was an early investor in theranos. he said the company could have been a big winner and he still feels great about backing holmes i'm surprised, despite all the

evidence out there, he sticks by this company he won't admit to wrongdoing at this point >> i'm not sure how much more of that kind of a comment he can make it gets headlines, but whether this company does anything else besides what's been talked about already or what's been kind of at least shunned by certain other investors out there remains to be seen i'm not sure anybody can recover from this. she has sanctions on her, she cannot be an officer or director of a public company for a while. everyone has their own view on this >> draper sticks by his call also on bitcoin saying it's headed higher despite the volatility he sees the status being elevated we're just getting started here on "worldwide exchange. on deck in the show here, the big ceo shift. you will never believe how many of 2017s top paid executives are

not running their companies anymore. the startling stat is later on in the show. and hawaii is still on high alert. more stunning pictures of new volcanic eruptions on the island we have the latest on isth developing story when "worldwide exchange" returns.cash car everything. what's in your wallet? need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. this is no ordinary coffee. it's single-origin kenyan coffee from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific? that you can trust they're 100% authentic?

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futures higher by 25 points for the dow. nasdaq higher by 2 let's get back to asia shanghai closing down by 0.4%. we saw a nearly 1% gain in hang seng and the japanese nikkei higher by 1% as well in europe, an interesting story playing out there. on track for its longest winning streak in three years. really being helped by dovish commentary from bank of england governor mark carney as well as better-than-expected earnings. plus some m&a in the healthcare space. the dax leading the declines down, just about 0.30% similar picture in france. still ahead, it's a big day at the white house president trump meeting with auto ceos and speaking out on drug prices a live report from washington straight ahead. and putin on cold ice. the russian president putting on his skates for an exhibition hockey game.

that footage is after this break. as we head out, here is the national weather forecast from bill karins. good friday morning to you going to be an active next three days as we go throughout the mother's day weekend seeing heavy rainfall in nebraska and thunderstorms we will track this during the day today, possibly through areas of the great lakes including chicago. by 6:00 p.m., rain moving from chicago into the detroit and toledo area. then watching saturday morning, rainfall into areas of central new york, all the way through new england. it looks like a gloomy weekend for many areas of the northeast. by the time we get to saturday evening, thunderstorms around new york city, pittsburgh, through ohio, cleveland. more additional rain for chicago. on mother's day, areas of rain in ohio and additional showers and storms during the afternoon. the same areas will get hit with wet weather and rainy weather over the next three days including areas around chicago and new york city.

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it european markets seem so calm given everything that's happened now with an anti-establishment group looking to take over the reins of government in that country. >> yeah. this is the question i've been asking our team the last 24 hours. italy has long been the sick man of europe. if you look at their fundamentals, the debt to gdp ratio is 132%. that's where greece was at the outset of the eurozone crisis. the banking system has a huge set of nonperforming loans the two things that produced the euro crisis is sovereign debt and dirty banks. you add to that the first major populist anti european party this weekend will come into power, that's vowed to ignore the fiscal rules that the eurozone put in place after the crisis and qe is coming to an end. draghi is slowly ratcheting back there's nothing -- qe has basically been the wall that

protected some of these countries. there's a perfect storm of factors coming in here i've been surprised that there hasn't been more reaction. i've gone to the markets guys. for whatever reason the markets decided the fire power of the ecb is sufficient. i'm not sure people are thinking 6, 12 months down the road when you have a destabilizing government with the other fundamentals we discussed. >> seems like markets are willing to overlook populists as a risk big story this week is president trump pulling the us out .s. ouf the iranian nuclear deal will europe follow the u.s. out or continue to buy iranian oil >> they're going to try to keep in the market. the problem is the secondary

sanctions. and they could punish companies for doing business with iran even if they're european the dollar system is a powerful tool it was done before, you work with iran, you will get shut out. the dollar itself is a powerful weapon in the last 24, 48 hours, we saw a huge run up in oil prices, approaching $80 a barrel and it started to come off again as people questioned whether the chinese in particular are the ones we need to watch, do they continue to buy iranian oil? they're the ones who are a bit more immune to the punishment of the dollar system. that's the open question right now. the europeans are weighing this. there's huge political pressure.

the wildcard is china. does china continue buying iranian oil. if that market steps back in, i think you will see the price of oil fluctuate again. >> peter, five star knitly, the iran nuclear deal and we have not even talked about kim jong-un an president trump next month. peter spiegel, thanks for joining us on "worldwide exchange". in political news, president trump expected to lay out his plan to bring down drug prices today at the white house tracie potts is live in washington with more good morning >> good morning. the president expected to talk about that today while democrats say the real change needs to happen here on capitol hill. what we're expecting to hear today is what president trump wants to do on his own >> reporter: the white house says this afternoon president trump will announce drug rebates, free generics for low-income seniors, limits on out of pocket costs and other

reforms to lower drug prices democrats can't congress to authorize buyer cheaper drugs from canada. >> mr. president, if you are serious about lowering drug prices, tell mitch mcconnell and paul ryan to schedule a vote >> reporter: the focus on medicine comes after president trump announce he'll meet with north korean leader kim jong-un on june 12th >> i think it will be a big success. >> reporter: the administration is hailing the release of three detainees as a good sign that north korea is ready to give up nuclear weapons. >> the regime in north korea has been dealing as far as we can see in good faith. >> i'm very excited about the possibilities here >> reporter: critics fear the u.s. is being played >> taking hostages and basically using them to get a meeting with the american president is not a good precedent to set. >> american citizens are not diplomatic bargaining chips. >> reporter: but they are home

setting the stage for unprecedented diplomacy. president trump's decision on iran, that's already having an impact iran and israel are trading missile strikes, and the price of oil is starting to go up. >> certainly a big story we also know that auto ceos potentially meeting with president trump. any clarity on that? >> i did see it on the schedule. they will meet with him sometime this morning >> all right talking healthcare at the white house and autos. he has a busy schedule, not to mention this epic meeting with the north korean leader. preparations for that would take some time. >> tracie potts, thank you very much let's check on the other morning's top headlines. we have phillip mena in new york with the latest. good morning iran and israel are edging closer to all-out war. israel's military says iranian forces fired about 20 project e projectiles at its army in the

golan heights prompting israel to retaliate with strikes targeting tehran's forces across syria. at least 23 people were killed mostly syrian soldiers flood warnings are expanding near montana where the clark river has reached flood stage. as many as 1300 homes could be threatened floodwaters have overtaken about half the land at a bison ranch. the national weather service expects the river to keep rising into the weekend and will remain at flood levels for a week. vladimir putin took to the ice to celebrate his inauguration, scoring 5 goals during an exhibition hockey game the russian leader played in sochi before a packed crowd with a team of russian hockey legends on putin's side, even some who competed on behalf of russia during the 2014 sochi olympic games. back to you. >> i'm surprised he didn't score

10 or 15 goals during that match. >> good point. thank you very much. still to come what elon musk posted on instagram overnight that's anything but boring those details straight ahead. out for a jog, boston dynamics newest robot has the internet buzzing this morning. that and the rest of the trending stories when "worldwide exchange" comes back for your heart... your joints... or your digestion... so why wouldn't you take something

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wall street pointing to a

higher open as the dow eyes its seventh straight day of gains. >> we're live in beijing with the latest on tariffs. and anything but boring. what elon musk posted on instagram overnight that's getting a lot of buzz. it's friday, may 11, 2018. you're watching "worldwide exchange" on cnbc. welcome to "worldwide exchange." i'm seema mody >> i'm dominic chu we have a futures picture pointing to a stable open for right now. the dow slated to open up by just around 15 or 20 points if things hold steady the way they are now. the s&p would open about flat. so would the nasdaq. we are still seeing a bit of a drop in yields across the board. focusing on the ten-year treasury note yield which is

2.95%. so we backed off that 3% area. for the currency side of things, we are seeing a bit of dollar weakness pretty much across the major trading pairs. you can see euro at 1.1920 dollar/yen, 109.28 pound sterling, 1.3526 >> let's discuss the market further. joining us now is diana moa from jpmorgan asset management and art hogan from b. riley fbr. great to have you both on the show diana, how are stocks capable of continuing to rise in the face of rising rates? >> i think stocks now are first reacting to the strong earning season we have come from in the u.s. investors are seeing that as signs that the growth momentum in the u.s. remains anchored you expect to see fiscal policy providing a boost to growth as the year progresses. equity earnings look strong. so it makes sense that you have

risk assets such as equities doing well at a time where rates are pricing in this strong growth outlook >> there are some concerns on the inflation side cpi came in soft this week plus some foreign policy uncertainty after the united states pulls out of this iran nuclear deal >> i think we're much more concerned about policy than interest rates we've seen a rise in the ten-year this trip to 3% is gradual inflation has moderated. that february report or the january jobs number was startling. we had a startling move in the ten year now things have calmed down. we get 3% every once in a while. cpi is relatively tame we still have growth, but without that really rapid inflation scare. the number one concern in the market is trade, trade policy, tariffs. and, you know, obviously geopolitical concerns

surrounding the iran decision. right now we're in that period of time where there's no news really on trade. we're talking to china we don't know the outcome. we're renegotiating nafta. the markets are able to shift back on the focus to fundamentals, which are strong >> diana, let's talk about the rate picture art says the policy side of things is driving things if we talk about the rate picture we're coalescing now right around this 3% mark. a little above a little below. we have a ten-year treasury note yield auction this past week that steeemed strong with regard to demand. does that mean there could be an appetite for u.s. government debt at this 3% level given what we've seen >> yes absolutely when you look at what we're seeing in the rest of the world, because a lot of demand is coming from foreigners, we had the ecb again sounding very balanced somewhat cautious on the inflation outlook.

so rates in europe are not going anywhere any time soon we had the bank of england as well stepping back from hiking this week. which had been in the price on the markets expectation not long ago. to actually saying they're watching growth closely to see what the monetary outlook looks like going forward so yields are anchored, and a similar story in japan inasmuch as the rest of the world, we're not seeing this yield repricing, u.s. treasuries do look attractive >> all right art, diana brings up an interesting point. if we see yields anchored at this level, does that mean we're not afraid about a hyper amount of growth or inflation down the line what should we be worried about in the market? >> when you think about the ten-year and the u.s. ten-year being anchored to lower sovereign rates, when she talks about european rates staying where they are pretty much or at about where they are, i get nervous about the fact that the

yield on the two-year will move up faster than the yield on the ten-year that spret will flad will flatte so if -- just because of competitive pressures, when you look around the globe at sovereigns, the u.s. ten-year is yielding about 3%, obviously that's going to attract more money that otherwise would be going into germany or other bunds. i get concerned about the flattening yield curve much more than creeping inflation and what that could mean not just about the economy but what that could cause the economy to do. >> it's not stopping corporations from continuing to fund these massive buybacks. two big announcements this week, and the hope was this tax break would help bring about jobs, but it seems like they're going

towards boring buybacks. >> we knew some combination of capex, hiring, wage increases, buybacks and probably some bit of dividends would be a part of this bonus that you got with the lower corporate tax rate right now we're seeing a heavier weighting towards buybacks that's the nature of the business model you can't spend capital if you don't have a need. the best thing you can do with capital is buy shares back, that benefits the shareholder, and in the long run that puts money back into the economy. i think we'll see an ongoing combination of all of those things it's not necessarily a bad thing. >> diana, as we look at credit markets and fixed income markets, what do you think is the most important thing that will drive income action in the coming weeks >> i'd say for now watch how policy evolves in the rest of

the world but the earlier point on trade is important. i expect people will watch closely to see how negotiations are on trade and are evolving, that has implications for global growth >> diana, thank you very much. art hogan, thanks so much for joining us on "worldwide exchange." time for the top trending stories. we kick things off with elon musk he posted this time lapse video on his instagram account it shows the first leg of the boring company's underground tunnel in l.a. >> this is amazing >> musk posting the caption that the tunnel is almost done. and the boring company will be offering free rides to the public in a few months what >> you have to say elon musk is the ultimate marketer. he knows how to spetease the puc and put these things out there and get people excited

doesn't matter if it's rockets, tunnels under ground or tesla cars he knows how to tap that sense of imagination the use of social media to get us all excited. rather than sticking to a galaxy far, far away, the newest "star wars" film stopped traffic on earth hollywood boulevard was blocked by a massive replica of the millennium falcon. what's the occasion? the world premiere of "solo: a "star wars" story" which opens nationwide on may 25th it's all about han solo as a younger fellow back in the day >> it will be an exciting film will you camp outside? >> i'm never the first mover on these things, unless it's a marvel movie. if you skipped the gym this week, this story will make you feel guiltier.

boston dynamics releasing new video of its humanoid robot atlas going for a jog. this is its latest function. it can also open doors and do flips. what's next? >> i don't know. they had the dog before or the mule, whatever they wanted to call it. so many different variations it freaks me out a bit it's so moviesque. >> the threat to the human race what can't they do now have you ever wanted to upgrade your video game setup? maybe with a bigger tv doesn't get bigger than a jumbotron. that's what the milwaukee brewers players were doing this week to play fortnight that massive video game. check this out they were using the jumbotron playing fortnight. i have never played it >> i have. it is very difficult >> is it addicting >> i have to get good at it in

order for it to be addicting i'm very impressed by those who do play it or can master it. this story is interesting to me. the fact there's such a diverse mix of fans for fortnight. it's not just gamers or tech savvy developers -- >> not just 13-year-old kids >> there's baseball players during the breaks playing fortnight. spotify getting a lot of buzz this morning under the company's new hateful conduct policy the streaming service will remove r. kelly's music from its play list. kelly has been accused by multiple women of sexual conduct and assault. his music will still be available on spotify coming up on "worldwide exchange," fighting back what farmers in china are doing that could deal a big blow to the u.s. we're live in beijing with the latest. and out of office. a staggering stat about ceos

that is giving a new meaning to the term paid leave. we'll explain when "worldwide exchange" returns. it happen. but we won't get there without you. visit alz.org to join the fight. and it's time to get outside. pack in even more adventure with audible. with the largest selection of audiobooks. audible lets you follow plot twists off the beaten track. or discover magic when you hit the open road. with the free audible app, your stories go wherever you do. and for just $14.95 a month you get a credit, good for any audiobook. if you don't like it exchange it any time. no questions asked. you can also roll your credits to the next month if you don't use them. so take audible with you this summer... on the road... on the trail... or to the beach.

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♪ most people come to la with big dreams. ♪ we came with big appetites. with expedia, you could book a flight, hotel, car, and activity all in one place. ♪ welcome back looking at futures higher at this moment with the dow up 25 points or 20 points in the premarket. the nasdaq slightly lower. we are on track of seven days of gains for the dow jones. this in the face of rising rates. check this out, in the treasury

market yields creeping back below 3%, that psychological level for the ten-year note, 2.95 for the ten-year. turning to trade china is looking to deal a big blow to the u.s. by upping its domestic soybean production but pulling it off could be a tough challenge. let's get to eunice yoon with cnbc's latest in beijing she has a story on that. >> reporter: thank you very much well, china has launched a campaign to get chinese farmers planting soybeans. we went out to the farms to find out how the program is going these farms have gotten caught up in the trade war between the u.s. and china the chinese government is attempting to boost domestic production of soybeans the authorities here in the country's northeast have been encouraging farmers to replace their corn crops with soybeans this corn farmer is being offered a son'sedy of $162 per

ache tore ma acre to make the switch, he has not done it. corn brings in double the profit of soybeans and they don't have the right seeds and equipment to get good enough yields to compete with u.s. imports. if china increased the payout, farmers like lee said they would be keen to take up the trade fight. of course if we don't import u.s. soybeans, our beans in china can be sold at a higher price. we have fertile land here. how nice it would be if we could grow soybeans ourselves. a dream that could be seen as a nightmare for soybean farmers back in the u.s. that farmer told us he would be willing to make the switch if he could get an additional $120 per acre even so he and other farmers said there are other challenges that china faces

they say beyond the money they said there is no real distribution network and infrastructure for soy they see their corn mills, but they don't see the soybean mills. and they were also complaining a lot about how they didn't have the proper seed technology the government here is trying to address that issue and is also looking to throw more money at the problem. just in the past couple of days we heard the subsidies are starting to rise higher. at the same time there are limitations which probably would be good news to a lot of american soybean farmers to hear they're not so easily replaced >> this is a big concern that due to this trade uncertainty that china will rely less on u.s. goods how realistic is this? is this actually going to play out or just china just making threats right now? >> i think at this stage china is making a threat they are still undergoing a big program which they plan to pursue, but there's so many

problems that the chinese face especially in that particular area if you go into some detail, they said -- i was talking to other agricultural executives who said if you look at that area, there's such a bottleneck and there has not been enough soybean agriculture here in china for so long because the country has been relying on imports. they just don't have the infrastructure in place to be able to make this program much more viable. if anything, it will probably take years to pull off >> founds like a battle of who gets bigger farm subsidies in the u.s. and china as well eunice yoon, thank you very much. we're approaching the top of the hour the team at "squawk box" is getting ready. becky quick has a look at what's coming up. >> good morning. good to see both of you. we have a big show today we'll focus on a lot of what's happening in washington and how that's been impacting the markets. our guest host for one hour

today is senator pat toomey from pennsylvania he will talk about regulation coming out of washington, a lot on geopolitics so much happening with iran and north korea. president trump talking about it last night in that speech that he gave in indiana more on the iranian deal, too what this means from the midwest perspective. our special guest today is ehud barak, former prime minister of israel, he has a new book out that delves into what's been happening in the region. he will give us israel's perspective on all of these issues we heard about what the europeans think about this those in the region have a different perspective. we'll get that from alluehud bak later this morning and we'll be joined by alex azar, he will talk about new white house drug policy potentials we've been hearing from donald

trump that he would like to see drug prices come under more control. we'll hear what the administration may be able to do about that big show coming up it starts in about 11 minutes time >> jam-packed show with a lot of big newsmakers looking forward to that coming up on "squawk box. still to come on "worldwide exchange," out of office, you'll never believe how many of last year's top paid ceos are not even working for those companies anymore. those details when "worldwide exchange" returns.

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this is no ordinary coffee. it's single-origin kenyan coffee from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific? that you can trust they're 100% authentic? ibm blockchain. a smart way to track every step, ensuring this coffee did indeed come from 6,000 feet above sea level. and not a foot lower. ♪ ♪ let's talk ceo compensation. you're looking at some of last year's highest paid ceos you can see lots of familiar faces. do you know the one thing they all have in common none of them are actually on the job anymore. let's bring in jeffrey sonnenfeld from the yale school

of management. as we talk about ceo compensation, there's this idea they make more than the average worker do they generate returns for shareholders what can we learn based upon the ceo compensation structures we've seen and those people who are not serving as ceos anymore? >> three huge categories you're throwing at me i'll try to take them all. this is that time of year, i always try to avoid you folks, i hate getting into the ceo comp story. it is so complicated situations vary. there is always populist sentiment about almost 400 times now the average worker salary is what a large company ceo makes when i started, it was 40 times, when i was born, it was 20 times the average worker what has happened in the global

economy that justifies that? it has gotten tougher. is the job ten times harder as the numbers would indicate from when i started doing this in 1980 it is. i would talk about a typical ceos day in 1980 i knew most of the major ceos then they had a life of clubs, golf, three martini lunches. these guys barely have time now for personal friends and family. it's a very difficult job. >> because of the high level departures we've seen in 2017, arguably even in 2018, do we expect the average based salary for ceos to come down? >> you know, the averages are thrown off by some runaway numbers in there one guy on your list, who was mr. hudson, he passed away at csx, he didn't actually get the

numbers that the "wall street journal" reports, because a lot of that was options, 115 million in options that expired sadly on his death. he was brought in to succeed oscar mun ynunez who went to und you have ceos at onson cjohnson controls, way overpaid, makes no sense. the ceo of mattel making a huge salary that's troubling those people left. tom dooley, hang your head in shame, for one month stepping in as ceo at viacom after dohmann's exit

dooley, for a month on the job got $50 million. it's just crazy. there's some exceptions that make no sense. some ceos are underpaid. jeff bezos, his salary is 1.7 million. there's some people like -- strong performers like dave abney at u.p.s. who are usually at the bottom of the list for compensation there's some outliers that are troubling. snap is another one. >> i want to take the last few moments we have here in the show to tilt you towards the a it it. story. novartis, michael cohen, president trump's lawyer how prevalent is itthat corporations engage consultants to advied advise on policy and what do they pay in terms of services is it out of the realm of reason

what happened with regard to these companies paying something like michael cohen >> first, i would be shocked if randall stephenson knew anything about this as far as we know in today's "washington post" story, these are two washington public affairs officials who paid this money. that said, at&t did also mention they've done things like this in prior administrations. sadly this is not an outlier in every administration there are various forms of -- you could think of going back not to just warren hearting and that far, but both bush administrati administrations, clinton administration, obama administration, they had clubs where he would pay quarterly the stories about the lincoln bedroom are real you pay a price tag. there's ban loeen a long pattern

pay for access is a part of our history. >> we have to leave the conversation there jeff sonnenfeld, thank you dom wo dom, great working with you. this is bill's yard. and bill has a "no-weeds, not in my yard" policy. but with scotts turf builder weed & feed, bill has nothing to worry about. it kills weeds and greens grass, guaranteed. this is a scotts yard. and greens grass, guaranteed. we're experts in connecting your advertising message to welcothe right audience.ight. we can connect to your audiences wherever they are and however they watch whether on their tv, laptop or mobile device. and to make sure they don't miss your message, we give you access to advertise on over fifty networks, sharing it on the hottest shows, digital sites, and mobile destinations. work with some of the best media experts in the business.

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good morning the washington agenda. president trump focusing on pharma and autos today what wall street needs to know straight ahead a developing story we're learning more about the relationship between at&t and michael cohen. details are coming up. and say good-bye to l.a. traffic. elon musk says he has the solution it could be up and flying, underneath and boring, maybe a

hyperloop. this is actually supposedly close to reality on this friday may 11, 2018 "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. happy friday, everybody. let's look at u.s. equity futures. yesterday another strong day with the markets the dow up almost 200 points the dow in positive territory for the year to date now this morning you will see the dow is up by 22 points that's the early indication. s&p looks up, just barely. nasdaq down about 2 points a strong week. the dow has its first six-day